peak-20230727

Exhibit 99.1

Healthpeak Properties Reports Second Quarter 2023 Results and Declares Quarterly Cash Dividend on Common Stock

DENVER, July 27, 2023 - Healthpeak Properties, Inc. (NYSE: PEAK), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, today announced results for the second quarter ended June 30, 2023.

SECOND QUARTER 2023 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS

–Net income of $0.09 per share, Nareit FFO of $0.45 per share, FFO as Adjusted of $0.45 per share, AFFO of $0.40 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 4.8%

–Second quarter new and renewal lease executions totaled 745,000 square feet:

▪Outpatient Medical new and renewal lease executions totaled 595,000 square feet

▪Lab new and renewal lease executions totaled 150,000 square feet

•Signed letters of intent on an additional 196,000 square feet of lab leases

–Placed in service the 100% leased Nexus on Grand lab development in South San Francisco

–Balance Sheet:

▪In May 2023, issued $350 million of fixed rate 10-year senior unsecured notes

▪Net debt to Adjusted EBITDAre was 5.1x as of June 30, 2023

–Updated full year 2023 diluted earnings guidance to a range of $0.49 – $0.53 per share; increased the midpoint of 2023 FFO as Adjusted guidance by $0.01 per share and increased Total Portfolio Same-Store Cash (Adjusted) NOI growth guidance by 25 basis points

–Healthpeak's Board of Directors declared today a quarterly common stock cash dividend of $0.30 per share to be paid on August 18, 2023, to stockholders of record as of the close of business on August 7, 2023

–Published 12th annual ESG report covering environmental, social, and governance initiatives and performance

SECOND QUARTER COMPARISON


	Three Months Ended June 30, 2023				Three Months Ended June 30, 2022
(in thousands, except per share amounts)	Amount		Per Share		Amount		Per Share
Net income, diluted	$	51,750	$	0.09	$	68,057	$	0.13
Nareit FFO, diluted	247,754		0.45		238,506		0.44
FFO as Adjusted, diluted	251,540		0.45		238,829		0.44
AFFO, diluted	223,197		0.40		197,244		0.36

YEAR TO DATE COMPARISON


	Six Months Ended June 30, 2023				Six Months Ended June 30, 2022
(in thousands, except per share amounts)	Amount		Per Share		Amount		Per Share
Net income, diluted	$	169,449	$	0.31	$	137,693	$	0.26
Nareit FFO, diluted	478,200		0.86		484,287		0.89
FFO as Adjusted, diluted	483,421		0.87		476,014		0.87
AFFO, diluted	433,195		0.78		400,921		0.74

Nareit FFO, FFO as Adjusted, AFFO, Same-Store Cash (Adjusted) NOI, and Net Debt to Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts (see the "Funds From Operations" and "Adjusted Funds From

Page 1

Operations" sections of this release for additional information). See "June 30, 2023 Discussion and Reconciliation of Non-GAAP Financial Measures" for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP in the Investor Relations section of our website at http://ir.healthpeak.com/quarterly-results.

SAME-STORE ("SS") OPERATING SUMMARY

The table below outlines the year-over-year three-month and year-to-date SS Cash (Adjusted) NOI growth.


Year-Over-Year Total SS Portfolio Cash (Adjusted) NOI Growth
	Three Month				Year-To-Date
	SS Growth %		% of SS		SS Growth %		% of SS
Lab	3.8	%	47.9	%	4.9	%	47.6	%
Outpatient Medical	2.5	%	41.0	%	3.1	%	41.4	%
CCRC	19.3	%	11.1	%	14.3	%	11.0	%
Total Portfolio	4.8	%	100.0	%	5.1	%	100.0	%

Page 2

NEXUS ON GRAND DEVELOPMENT

During the second quarter, Healthpeak placed in service Nexus on Grand, a 100% leased lab development representing $161 million of investment.

Prominently located on East Grand Avenue in the heart of South San Francisco, Nexus on Grand features state-of-the-art lab space and includes a café, fitness center, and several indoor and outdoor meeting areas within its entry plaza. Combined with Healthpeak’s other South San Francisco properties, the campus brings our ownership in the submarket to over 4.5 million square feet with an approximate 40% share of the total investor-owned lab inventory.

LOAN REPAYMENTS

Healthpeak received $26 million of seller financing repayments during the second quarter.

SORRENTO THERAPEUTICS UPDATE

As previously disclosed, on February 13, 2023, Sorrento Therapeutics, Inc. ("Sorrento") commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code (the "Code") in the U.S. Bankruptcy Court for the Southern District of Texas (the "Court").

Sorrento has four separate leases with Healthpeak totaling approximately 211,000 square feet. Sorrento is entitled to certain rights under the Code regarding the assumption or rejection of its lease obligations with Healthpeak but has not yet filed any motion with the Court indicating whether it will assume or reject the four leases. As of July 27, 2023, Healthpeak has received all contractually-owed rent from Sorrento. Healthpeak holds either a security deposit or a letter of credit pursuant to each of the four leases, totaling $2.6 million.

CAPITAL MARKETS ACTIVITY

SENIOR UNSECURED NOTES

As previously announced, in May 2023, Healthpeak completed an add-on offering of $350 million 5.25% fixed rate senior unsecured notes due 2032, bringing year-to-date issuances to $750 million at a blended yield of approximately 5.35%. Net proceeds from the May offering were used to repay a portion of the Company's outstanding commercial paper and for general corporate purposes.

ESG

In June 2023, Healthpeak published its 12th annual ESG Report, highlighting our ESG initiatives and performance, including a 4% reduction in greenhouse gas emissions in 2022, and 43% overall reduction since 2011, on a like-for-like basis.

Healthpeak was named an Executive Member of ENERGY STAR’s Certification Nation for earning 45 new ENERGY STAR certifications in 2022, in addition to being included as a constituent in the FTSE4Good Index for the 12th consecutive year. Healthpeak also received several workplace recognitions, including Great Place to Work for the fourth consecutive year, Great Place to Work in Orange County by the Orange County Business Journal for the third time, Top Workplaces by The Tennessean for the second consecutive year, and Middle Tennessee Top Workplace for the first time.

To learn more about Healthpeak's commitment to responsible business and view our 2022 ESG Report, please visit www.healthpeak.com/ESG.

DIVIDEND

Healthpeak's Board declared today a quarterly common stock cash dividend of $0.30 per share to be paid on August 18, 2023, to stockholders of record as of the close of business on August 7, 2023.

2023 GUIDANCE

We are updating the following guidance ranges for full year 2023:

▪Diluted earnings per common share from $0.52 – $0.58 to $0.49 – $0.53

▪Diluted Nareit FFO per share from $1.71 – $1.77 to $1.72 – $1.76

▪Diluted FFO as Adjusted per share from $1.71 – $1.77 to $1.73 – $1.77

▪Total Portfolio Same-Store Cash (Adjusted) NOI growth from 3.00% – 4.50% to 3.25% – 4.75%

These estimates do not reflect the potential impact from unannounced future transactions. These estimates are based on our view of existing market conditions, transaction timing, and other assumptions for the year ending December 31, 2023. For additional details and assumptions underlying this guidance, please see page 38 in our corresponding Supplemental Report and the Discussion and Reconciliation of Non-GAAP Financial Measures, both of which are available in the Investor Relations section of our website at http://ir.healthpeak.com.

COMPANY INFORMATION

Healthpeak has scheduled a conference call and webcast for Friday, July 28, 2023, at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time) to review its financial and operating results for the quarter ended June 30, 2023. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (International). The conference ID number is 3097637. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.healthpeak.com. An archive of the webcast will be available on Healthpeak's website through July 28, 2024, and a telephonic replay can be accessed through August 4, 2023, by dialing (877) 344-7529 (U.S.) or (855) 669-9658 (Canada) and entering conference ID number 2871396. Our Supplemental Report for the current period is also available, with this earnings release, in the Investor Relations section of our website.

ABOUT HEALTHPEAK

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates and develops high-quality real estate for healthcare discovery and delivery.

FORWARD-LOOKING STATEMENTS

Statements contained in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, densifications, joint venture transactions, leasing activity and commitments, capital recycling plans, financing activities, or other transactions discussed in this release; (ii) the payment of a quarterly cash dividend; (iii) the information presented under the heading "Sorrento Therapeutics Update" that is not historical information; and (iv) the information presented under the heading "2023 Guidance." Pending acquisitions, dispositions, joint venture transactions, leasing activity, and financing activity, including those subject to binding agreements, remain subject to closing conditions and may not be completed within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: macroeconomic trends, including inflation, interest rates, labor costs, and unemployment; the ability of our existing and future tenants, operators, and borrowers to conduct their respective businesses in a manner that generates sufficient income to make rent and loan payments to us; the financial condition of our tenants, operators, and borrowers, including potential bankruptcies and downturns in their businesses, and their legal and regulatory proceedings; our concentration of real estate investments in the healthcare property sector, which makes us more vulnerable to a downturn in a specific sector than if we invested across multiple sectors; the illiquidity of real estate investments; our ability to identify and secure new or replacement tenants and operators; our property development, redevelopment, and tenant improvement activity risks, including project abandonments, project delays, and lower profits than expected; changes within the industries in which we operate; significant regulation, funding requirements, and uncertainty faced by our lab tenants; the ability of the hospitals on whose campuses our outpatient medical buildings are located and their affiliated healthcare systems to remain competitive or financially viable; our ability to develop, maintain, or expand hospital and health system client relationships; operational risks associated with third party management contracts, including the additional regulation and liabilities of our properties operated through RIDEA structures; economic conditions, natural disasters, weather, and other conditions that negatively affect geographic areas where we have concentrated investments; uninsured or underinsured losses, which could result in significant losses and/or performance declines by us or our tenants and operators; our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners’ financial condition and continued cooperation; our use of fixed rent escalators, contingent rent provisions, and/or rent escalators based on the Consumer Price Index; competition for suitable healthcare properties to grow our investment portfolio; our ability to foreclose or exercise rights on collateral securing our real estate-related loans; investment of substantial resources and time in transactions that are not consummated; our ability to successfully integrate or operate acquisitions; the potential impact on us and our tenants, operators, and borrowers from litigation matters, including rising liability and insurance costs; environmental compliance costs and liabilities associated with our real estate investments; epidemics, pandemics, or other infectious diseases, including Covid, and health and safety measures intended to reduce their spread; the loss or limited availability of our key personnel; our reliance on information technology systems and the potential impact of

system failures, disruptions, or breaches; increased borrowing costs, including due to rising interest rates; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; the availability of external capital on acceptable terms or at all, including due to rising interest rates, changes in our credit ratings and the value of our common stock, volatility or uncertainty in the capital markets, and other factors; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness; bank failures or other events affecting financial institutions; the failure of our tenants, operators, and borrowers to comply with federal, state, and local laws and regulations, including resident health and safety requirements, as well as licensure, certification, and inspection requirements; required regulatory approvals to transfer our senior housing properties; compliance with the Americans with Disabilities Act and fire, safety, and other regulations; laws or regulations prohibiting eviction of our tenants; the requirements of, or changes to, governmental reimbursement programs such as Medicare or Medicaid; legislation to address federal government operations and administrative decisions affecting the Centers for Medicare and Medicaid Services; our participation in the CARES Act Provider Relief Fund and other Covid-related stimulus and relief programs; our ability to maintain our qualification as a REIT; changes to U.S. federal income tax laws, and potential deferred and contingent tax liabilities from corporate acquisitions; calculating non-REIT tax earnings and profits distributions; ownership limits in our charter that restrict ownership in our stock; provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.

CONTACT

Andrew Johns, CFA

Senior Vice President – Investor Relations

720-428-5400

Healthpeak Properties, Inc.

Consolidated Balance Sheets

In thousands, except share and per share data


	June 30, 2023		December 31, 2022
Assets
Real estate:
Buildings and improvements	$	13,039,278	$	12,784,078
Development costs and construction in progress	775,836		760,355
Land	2,661,963		2,667,188
Accumulated depreciation and amortization	(3,379,874)		(3,188,138)
Net real estate	13,097,203		13,023,483

Loans receivable, net of reserves of $8,366 and $8,280	214,030		374,832
Investments in and advances to unconsolidated joint ventures	731,956		706,677
Accounts receivable, net of allowance of $2,387 and $2,399	53,467		53,436
Cash and cash equivalents	103,780		72,032
Restricted cash	56,745		54,802
Intangible assets, net	364,453		418,061
Assets held for sale, net	8,282		49,866
Right-of-use asset, net	234,050		237,318
Other assets, net	739,574		780,722
Total assets	$	15,603,540	$	15,771,229

Liabilities and Equity
Bank line of credit and commercial paper	$	329,000	$	995,606
Term loans	496,382		495,957
Senior unsecured notes	5,399,504		4,659,451
Mortgage debt	343,766		346,599
Intangible liabilities, net	140,060		156,193
Liabilities related to assets held for sale, net	52		4,070
Lease liability	204,489		208,515
Accounts payable, accrued liabilities, and other liabilities	682,764		772,485
Deferred revenue	881,870		844,076
Total liabilities	8,477,887		8,482,952

Commitments and contingencies


Redeemable noncontrolling interests	63,792		105,679

Common stock, $1.00 par value: 750,000,000 shares authorized; 547,052,994 and 546,641,973 shares issued and outstanding	547,053		546,642
Additional paid-in capital	10,384,982		10,349,614
Cumulative dividends in excess of earnings	(4,428,423)		(4,269,689)
Accumulated other comprehensive income (loss)	31,453		28,134
Total stockholders’ equity	6,535,065		6,654,701

Joint venture partners	316,247		327,721
Non-managing member unitholders	210,549		200,176
Total noncontrolling interests	526,796		527,897

Total equity	7,061,861		7,182,598

Total liabilities and equity	$	15,603,540	$	15,771,229

Healthpeak Properties, Inc.

Consolidated Statements of Operations

In thousands, except per share data


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

Revenues:
Rental and related revenues	$	409,967	$	387,079	$	802,398	$	757,229
Resident fees and services	130,184		125,360		257,268		246,920
Interest income	5,279		5,493		11,442		10,987
Income from direct financing leases	—		—		—		1,168
Total revenues	545,430		517,932		1,071,108		1,016,304

Costs and expenses:
Interest expense	49,074		41,867		97,037		79,453
Depreciation and amortization	197,573		180,489		376,798		358,222
Operating	221,837		215,044		444,925		422,291
General and administrative	25,936		24,781		50,483		48,612
Transaction costs	637		612		3,062		908

Impairments and loan loss reserves (recoveries), net	2,607		139		394		271
Total costs and expenses	497,664		462,932		972,699		909,757
Other income (expense):
Gain (loss) on sales of real estate, net	4,885		10,340		86,463		14,196

Other income (expense), net	1,955		2,861		2,727		21,177
Total other income (expense), net	6,840		13,201		89,190		35,373

Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	54,606		68,201		187,599		141,920
Income tax benefit (expense)	(1,136)		718		(1,438)		(59)
Equity income (loss) from unconsolidated joint ventures	2,729		382		4,545		2,466
Income (loss) from continuing operations	56,199		69,301		190,706		144,327

Income (loss) from discontinued operations	—		2,992		—		3,309

Net income (loss)	56,199		72,293		190,706		147,636
Noncontrolling interests’ share in continuing operations	(4,300)		(3,955)		(19,855)		(7,685)

Net income (loss) attributable to Healthpeak Properties, Inc.	51,899		68,338		170,851		139,951

Participating securities’ share in earnings	(149)		(281)		(1,402)		(2,258)
Net income (loss) applicable to common shares	$	51,750	$	68,057	$	169,449	$	137,693

Basic earnings (loss) per common share:
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26

Diluted earnings (loss) per common share:
Continuing operations	$	0.09	$	0.12	$	0.31	$	0.25
Discontinued operations	—		0.01		—		0.01
Net income (loss) applicable to common shares	$	0.09	$	0.13	$	0.31	$	0.26

Weighted average shares outstanding:
Basic	547,026		539,558		546,936		539,456
Diluted	547,294		539,815		547,204		539,701

Healthpeak Properties, Inc.

Funds From Operations

In thousands, except per share data


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

Net income (loss) applicable to common shares	$	51,750	$	68,057	$	169,449	$	137,693
Real estate related depreciation and amortization	197,573		180,489		376,798		358,222
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures	5,893		5,210		11,887		10,345
Noncontrolling interests’ share of real estate related depreciation and amortization	(4,685)		(4,844)		(9,470)		(9,685)

Loss (gain) on sales of depreciable real estate, net	(4,885)		(12,903)		(86,463)		(16,688)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures	—		129		—		(150)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net	—		—		11,546		12
Loss (gain) upon change of control, net	(234)		—		(234)		—
Taxes associated with real estate dispositions	—		16		—		(166)



Nareit FFO applicable to common shares	245,412		236,154		473,513		479,583
Distributions on dilutive convertible units and other	2,342		2,352		4,687		4,704
Diluted Nareit FFO applicable to common shares	$	247,754	$	238,506	$	478,200	$	484,287
Diluted Nareit FFO per common share	$	0.45	$	0.44	$	0.86	$	0.89
Weighted average shares outstanding - diluted Nareit FFO	554,584		547,132		554,494		547,018
Impact of adjustments to Nareit FFO:
Transaction-related items	$	581	$	596	$	2,944	$	893
Other impairments (recoveries) and other losses (gains), net(1)	2,432		139		1,159		(8,770)
Restructuring and severance-related charges	1,368		—		1,368		—



Casualty-related charges (recoveries), net(2)	(591)		(411)		(243)		(411)



Total adjustments	3,790		324		5,228		(8,288)
FFO as Adjusted applicable to common shares	249,202		236,478		478,741		471,295
Distributions on dilutive convertible units and other	2,338		2,351		4,680		4,719
Diluted FFO as Adjusted applicable to common shares	$	251,540	$	238,829	$	483,421	$	476,014
Diluted FFO as Adjusted per common share	$	0.45	$	0.44	$	0.87	$	0.87
Weighted average shares outstanding - diluted FFO as Adjusted	554,584		547,132		554,494		547,018

_______________________________________

(1)The six months ended June 30, 2022 includes the following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) a $23 million gain on sale of a hospital under a direct financing lease and (ii) $14 million of expenses incurred for tenant relocation and other costs associated with the demolition of an outpatient medical building. The three and six months ended June 30, 2023 and 2022 include reserves for loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.

(2)Casualty-related charges (recoveries), net are recognized in other income (expense), net and equity income (loss) from unconsolidated joint ventures in the Consolidated Statements of Operations.

Healthpeak Properties, Inc.

Adjusted Funds From Operations

In thousands


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
FFO as Adjusted applicable to common shares	$	249,202	$	236,478	$	478,741	$	471,295
Stock-based compensation amortization expense	4,245		5,300		7,532		10,021
Amortization of deferred financing costs	2,954		2,689		5,774		5,377
Straight-line rents(1)	(4,683)		(12,713)		(5,431)		(23,872)

AFFO capital expenditures	(19,444)		(27,906)		(42,233)		(50,745)


Deferred income taxes	(242)		(1,188)		(503)		(927)
Amortization of above (below) market lease intangibles, net	(8,838)		(5,885)		(14,641)		(11,653)
Other AFFO adjustments	(2,339)		(1,180)		(730)		(1,871)
AFFO applicable to common shares	220,855		195,595		428,509		397,625
Distributions on dilutive convertible units and other	2,342		1,649		4,686		3,296
Diluted AFFO applicable to common shares	$	223,197	$	197,244	$	433,195	$	400,921
Diluted AFFO per common share	$	0.40	$	0.36	$	0.78	$	0.74
Weighted average shares outstanding - diluted AFFO	554,584		545,307		554,494		545,193

_______________________________________

(1)The six months ended June 30, 2023 includes an $8.7 million write-off of straight-line rent receivable associated with Sorrento Therapeutics, Inc., which commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code. This write-off is reflected as a reduction of rental and related revenues in the Consolidated Statements of Operations.

Exhibit 99.3

Discussion and

Reconciliation of Non-

GAAP Financial Measures

June 30, 2023

(Unaudited)


Definitions

Adjusted Fixed Charge Coverage Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental measure of liquidity and our ability to meet interest payments on our outstanding debt and pay dividends to our preferred stockholders, if applicable. Our various debt agreements contain covenants that require us to maintain ratios similar to Adjusted Fixed Charge Coverage and credit rating agencies utilize similar ratios in evaluating and determining the credit rating on certain of our debt instruments. Adjusted Fixed Charge Coverage is subject to the same limitations and qualifications as Adjusted EBITDAre and Fixed Charges.

Adjusted Funds From Operations (“AFFO”) AFFO is defined as FFO as Adjusted after excluding the impact of the following: (i) stock-based compensation amortization expense, (ii) amortization of deferred financing costs, net, (iii) straight-line rents, (iv) deferred income taxes, (v) amortization of above (below) market lease intangibles, net and (vi) other AFFO adjustments, which include: (a) non-cash interest related to DFLs and lease incentive amortization (reduction of straight-line rents), (b) actuarial reserves for insurance claims that have been incurred but not reported, and (c) amortization of deferred revenues, excluding amounts amortized into rental income that are associated with tenant funded improvements owned/recognized by us and up-front cash payments made by tenants to reduce their contractual rents. Also, AFFO is computed after deducting recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements, and includes adjustments to compute our share of AFFO from our unconsolidated joint ventures. More specifically, recurring capital expenditures, including second generation leasing costs and second generation tenant and capital improvements (“AFFO capital expenditures”) excludes our share from unconsolidated joint ventures (reported in “other AFFO adjustments”). Adjustments for joint ventures are calculated to reflect our pro rata share of both our consolidated and unconsolidated joint ventures. We reflect our share of AFFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. We reflect our share for consolidated joint ventures in which we do not own 100% of the equity by adjusting our AFFO to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods (reported in “other AFFO adjustments”). See FFO for further disclosure regarding our use of pro rata share information and its limitations. We believe AFFO is an alternative run-rate earnings measure that improves the understanding of our operating results among investors and makes comparisons with: (i) expected results, (ii) results of previous periods, and (iii) results among REITs more meaningful. AFFO does not represent cash generated from operating activities determined in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as it excludes the following items which generally flow through our cash flows from operating activities: (i) adjustments for changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, (ii) transaction-related costs, (iii) litigation settlement expenses, and (iv) restructuring and severance-related charges. Furthermore, AFFO is adjusted for recurring capital expenditures, which are generally not considered when determining cash flows from operations or liquidity. Other REITs or real estate companies may use different methodologies for calculating AFFO, and accordingly, our AFFO may not be comparable to those reported by other REITs. Management believes AFFO provides a meaningful supplemental measure of our performance and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT, and by presenting AFFO, we are assisting these parties in their evaluation. AFFO is a non-GAAP supplemental financial measure and should not be considered as an alternative to net income (loss) determined in accordance with GAAP and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.

Consolidated Debt The carrying amount of bank line of credit, commercial paper, term loans, senior unsecured notes, and mortgage debt, as reported in our consolidated financial statements.

Consolidated Gross Assets The carrying amount of total assets, excluding investments in and advances to our unconsolidated JVs, after adding back accumulated depreciation and amortization, as reported in our consolidated financial statements. Consolidated Gross Assets is a supplemental measure of our financial position, which, when used in conjunction with debt-related measures, enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.

Consolidated Secured Debt Mortgage and other debt secured by real estate, as reported in our consolidated financial statements.

Continuing Care Retirement Community (“CCRC”) A senior housing facility which provides at least three levels of care (i.e., independent living, assisted living and skilled nursing).

Debt Investments Loans secured by a direct interest in real estate and mezzanine loans.

Direct Financing Lease (“DFL”) Lease for which future minimum lease payments are recorded as a receivable and the difference between the future minimum lease payments and the estimated residual values less the cost of the properties is recorded as unearned income. Unearned income is deferred and amortized to income over the lease terms to provide a constant yield.

EBITDAre and Adjusted EBITDAre EBITDAre, or EBITDA for Real Estate, is a supplemental performance measure defined by the National Association of Real Estate Investment Trusts (“Nareit”) and intended for real estate companies. It represents earnings before interest expense, income taxes, depreciation and amortization, gains or losses from sales of depreciable property (including gains or losses on change in control), and impairment charges (recoveries) related to depreciable property. Adjusted EBITDAre is defined as EBITDAre excluding other impairments (recoveries) and other losses (gains), transaction-related items, prepayment costs (benefits) associated with early retirement or payment of debt, restructuring and severance-related charges, litigation costs (recoveries), casualty-related charges (recoveries), stock compensation expense, and foreign currency remeasurement losses (gains), adjusted to reflect the impact of transactions that closed during the period as if the transactions were completed at the beginning of the period. EBITDAre and Adjusted EBITDAre include our pro rata share of our unconsolidated JVs presented on the same basis. We consider EBITDAre and Adjusted EBITDAre important supplemental measures to net income (loss) because they provide an additional manner in which to evaluate our operating performance and serve as additional indicators of our ability to service our debt obligations. Net income (loss) is the most directly comparable U.S. generally accepted accounting principles (“GAAP”) measure to EBITDAre and Adjusted EBITDAre.

Enterprise Debt Consolidated Debt plus our pro rata share of total debt from our unconsolidated JVs. Enterprise Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share of total debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Enterprise Gross Assets Consolidated Gross Assets plus our pro rata share of total gross assets from our unconsolidated JVs, after adding back accumulated depreciation and amortization. Enterprise Gross Assets is a supplemental measure of our financial position, which, when used


			2


Definitions

in conjunction with debt-related measures, enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.

Enterprise Secured Debt Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs. Enterprise Secured Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share of Enterprise Secured Debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Entrance Fees Certain of our CCRC communities have residency agreements which require the resident to pay an upfront entrance fee prior to taking occupancy at the community. For net income, NOI, Adjusted NOI, Nareit FFO, FFO as Adjusted, and AFFO, the non-refundable portion of the entrance fee is recorded as deferred entrance fee revenue and amortized over the estimated stay of the resident based on an actuarial valuation. The refundable portion of a resident’s entrance fee is generally refundable within a certain number of months or days following contract termination or upon the sale of the unit. All refundable amounts due to residents at any time in the future are classified as liabilities.

Financial Leverage Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share information is calculated by applying our actual ownership percentage for the period and excludes debt funded by us to our JVs. Our pro rata share of total debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Fixed Charges Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed Charges also includes our pro rata share of the interest expense plus capitalized interest plus preferred stock dividends (if applicable) of our unconsolidated JVs. Fixed Charges is a supplemental measure of our interest payments on outstanding debt and dividends to preferred stockholders for purposes of presenting Fixed Charge Coverage and Adjusted Fixed Charge Coverage. Fixed Charges is subject to limitations and qualifications, as, among other things, it does not include all contractual obligations.

Funds From Operations (“Nareit FFO”) and FFO as Adjusted FFO encompasses Nareit FFO and FFO as Adjusted, each of which is described in detail below. We believe FFO applicable to common shares, diluted FFO applicable to common shares, and diluted FFO per common share are important supplemental non-GAAP measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets utilizes straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen and fallen with market conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. The term FFO was designed by the REIT industry to address this issue.

Nareit FFO. FFO, as defined by the National Association of Real Estate Investment Trusts (“Nareit”), is net income (loss) applicable to common shares (computed in accordance with GAAP), excluding gains or losses from sales of depreciable property, including any current and deferred taxes directly associated with sales of depreciable property, impairments of, or related to, depreciable real estate, plus real estate and other real estate-related depreciation and amortization, and adjustments to compute our share of Nareit FFO and FFO as Adjusted (see below) from joint ventures. Adjustments for joint ventures are calculated to reflect our pro rata share of both our consolidated and unconsolidated joint ventures. We reflect our share of Nareit FFO for unconsolidated joint ventures by applying our actual ownership percentage for the period to the applicable reconciling items on an entity by entity basis. For consolidated joint ventures in which we do not own 100%, we reflect our share of the equity by adjusting our Nareit FFO to remove the third party ownership share of the applicable reconciling items based on actual ownership percentage for the applicable periods. Our pro rata share information is prepared on a basis consistent with the comparable consolidated amounts, is intended to reflect our proportionate economic interest in the operating results of properties in our portfolio and is calculated by applying our actual ownership percentage for the period. We do not control the unconsolidated joint ventures, and the pro rata presentations of reconciling items included in Nareit FFO do not represent our legal claim to such items. The joint venture members or partners are entitled to profit or loss allocations and distributions of cash flows according to the joint venture agreements, which provide for such allocations generally according to their invested capital.

The presentation of pro rata information has limitations, which include, but are not limited to, the following: (i) the amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses and (ii) other companies in our industry may calculate their pro rata interest differently, limiting the usefulness as a comparative measure. Because of these limitations, the pro rata financial information should not be considered independently or as a substitute for our financial statements as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP financial statements, using the pro rata financial information as a supplement.

Nareit FFO does not represent cash generated from operating activities in accordance with GAAP, is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income (loss). We compute Nareit FFO in accordance with the current Nareit definition; however, other REITs may report Nareit FFO differently or have a different interpretation of the current Nareit definition from ours.

FFO as Adjusted. In addition, we present Nareit FFO on an adjusted basis before the impact of non-comparable items including, but not limited to, transaction-related items, other impairments (recoveries) and other losses (gains), restructuring and severance-related charges, prepayment costs (benefits) associated with early retirement or payment of debt, litigation costs (recoveries), casualty-related charges (recoveries), deferred tax asset valuation allowances, and changes in tax legislation (“FFO as Adjusted”). These adjustments are net of tax, when applicable. Transaction-related items include transaction expenses and gains/charges incurred as a result of mergers and acquisitions and lease amendment or termination activities. Prepayment costs (benefits) associated with early retirement of debt include the write-off of unamortized deferred financing fees, or additional costs, expenses, discounts, make-whole payments, penalties or premiums incurred as a result of early retirement or payment of debt. Other impairments (recoveries) and other losses (gains) include interest income associated with early and partial repayments of loans receivable and other losses or gains associated with non-depreciable assets including goodwill, DFLs, undeveloped land parcels, and loans receivable. Management believes that FFO as Adjusted provides a meaningful supplemental measurement of our FFO run-rate and is frequently used by analysts, investors, and other interested parties in the evaluation of our performance as a REIT. At the same time


			3


Definitions

that Nareit created and defined its FFO measure for the REIT industry, it also recognized that “management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community.” We believe stockholders, potential investors, and financial analysts who review our operating performance are best served by an FFO run-rate earnings measure that includes certain other adjustments to net income (loss), in addition to adjustments made to arrive at the Nareit defined measure of FFO. FFO as Adjusted is used by management in analyzing our business and the performance of our properties and we believe it is important that stockholders, potential investors, and financial analysts understand this measure used by management. We use FFO as Adjusted to: (i) evaluate our performance in comparison with expected results and results of previous periods, relative to resource allocation decisions, (ii) evaluate the performance of our management, (iii) budget and forecast future results to assist in the allocation of resources, (iv) assess our performance as compared with similar real estate companies and the industry in general, and (v) evaluate how a specific potential investment will impact our future results. Other REITs or real estate companies may use different methodologies for calculating an adjusted FFO measure, and accordingly, our FFO as Adjusted may not be comparable to those reported by other REITs.

Investment and Portfolio Investment Represents: (i) the carrying amount of real estate assets and intangibles, after adding back accumulated depreciation and amortization and (ii) the carrying amount of DFLs and Debt Investments. Portfolio Investment also includes our pro rata share of the real estate assets and intangibles held in our unconsolidated JVs, presented on the same basis as Investment, and excludes noncontrolling interests' pro rata share of the real estate assets and intangibles held in our consolidated JVs, presented on the same basis. Investment and Portfolio Investment exclude land held for development.

Net Debt Enterprise Debt less the carrying amount of cash and cash equivalents, restricted cash, and expected net proceeds from the future settlement of shares issued through our equity forward contracts, as reported in our consolidated financial statements and our pro rata share of cash and cash equivalents and restricted cash from our unconsolidated JVs. Consolidated Debt is the most directly comparable GAAP measure to Net Debt. Net Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies.

Net Debt to Adjusted EBITDAre Net Debt divided by Adjusted EBITDAre is a supplemental measure of our ability to decrease our debt. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations.

Net Operating Income (“NOI”) and Cash (Adjusted) NOI NOI and Adjusted NOI are non-U.S. generally accepted accounting principles (“GAAP”) supplemental financial measures used to evaluate the operating performance of real estate. NOI is defined as real estate revenues (inclusive of rental and related revenues, resident fees and services, income from direct financing leases, and government grant income and exclusive of interest income), less property level operating expenses; NOI excludes all other financial statement amounts included in net income (loss). Adjusted NOI is calculated as NOI after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, termination fees, actuarial reserves for insurance claims that have been incurred but not reported, and the impact of deferred community fee income and expense. NOI and Adjusted NOI are calculated as NOI and Adjusted NOI from consolidated properties, plus our share of NOI and Adjusted NOI from unconsolidated joint ventures (calculated by applying our actual ownership percentage for the period), less noncontrolling interests’ share of NOI and Adjusted NOI from consolidated joint ventures (calculated by applying our actual ownership percentage for the period). Management utilizes its share of NOI and Adjusted NOI in assessing its performance as we have various joint ventures that contribute to its performance. We do not control our unconsolidated joint ventures, and our share of amounts from unconsolidated joint ventures do not represent our legal claim to such items. Our share of NOI and Adjusted NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, our financial information presented in accordance with GAAP.

Adjusted NOI is oftentimes referred to as “Cash NOI.” Management believes NOI and Adjusted NOI are important supplemental measures because they provide relevant and useful information by reflecting only income and operating expense items that are incurred at the property level and present them on an unlevered basis. We use NOI and Adjusted NOI to make decisions about resource allocations, to assess and compare property level performance, and to evaluate our Same-Store (“SS”) performance, as described below. We believe that net income (loss) is the most directly comparable GAAP measure to NOI and Adjusted NOI. NOI and Adjusted NOI should not be viewed as alternative measures of operating performance to net income (loss) as defined by GAAP since they do not reflect various excluded items. Further, our definitions of NOI and Adjusted NOI may not be comparable to the definitions used by other REITs or real estate companies, as they may use different methodologies for calculating NOI and Adjusted NOI.

Operating expenses generally relate to leased outpatient medical and lab buildings, as well as CCRC facilities. We generally recover all or a portion of our leased outpatient medical and lab property expenses through tenant recoveries. We present expenses as operating or general and administrative based on the underlying nature of the expense.

Portfolio Adjusted NOI Portfolio Adjusted NOI is Portfolio Cash Real Estate Revenues less Portfolio Cash Operating Expenses.

Portfolio Operating Expenses and Portfolio Cash Operating Expenses Portfolio Operating Expenses and Portfolio Cash Operating Expenses are non-GAAP supplemental measures. Portfolio Operating Expenses represent property level operating expenses (which exclude transition costs). Portfolio Operating Expenses include consolidated operating expenses plus the Company's pro rata share of operating expenses from its unconsolidated JVs less noncontrolling interests' pro rata share of operating expenses from consolidated JVs. Portfolio Cash Operating Expenses represent Portfolio Operating Expenses after eliminating the effects of straight-line rents, lease termination fees, actuarial reserves for insurance claims that have been incurred but not reported, and the impact of deferred community fee expense.

Portfolio Income Cash (Adjusted) NOI plus interest income plus our pro rata share of Cash (Adjusted) NOI from our unconsolidated JVs less noncontrolling interests' pro rata share of Cash (Adjusted) NOI from consolidated JVs. Management believes that Portfolio Income is an important supplemental measure because it provides relevant and useful information regarding our performance; specifically, it is a measure of our property level profitability of the Company inclusive of interest income. Management believes that net income (loss) is the most directly comparable GAAP measure to Portfolio Income. Portfolio Income should not be viewed as an alternative measure of operating performance to net income (loss) as defined by GAAP since it does not reflect various excluded items.

Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues are non-GAAP supplemental measures. Portfolio Real Estate Revenues include rental related revenues, resident fees and services, income from DFLs, and government grant income which is included in Other income (expense), net in our Consolidated Statement of Operations. Portfolio Real Estate Revenues include the Company's pro rata share from unconsolidated JVs presented on the same basis and exclude


			4


Definitions

noncontrolling interests' pro rata share from consolidated JVs presented on the same basis. Portfolio Cash Real Estate Revenues include Portfolio Real Estate Revenues after eliminating the effects of straight-line rents, DFL non-cash interest, amortization of market lease intangibles, lease termination fees, and the impact of deferred community fee income.

Projected Stabilized Yield Projected Cash (Adjusted) NOI at Stabilization divided by the expected total development costs. Management considers Projected Stabilized Yield a useful metric for investors as it helps provide context to the expected effects that development projects will have on the Company’s future performance once stabilized.

REVPOR The 3-month average Cash Real Estate Revenues per occupied unit for the most recent period available. REVPOR excludes newly completed assets under lease-up, assets sold, acquired or converted to a new operating structure during the relevant period, assets in redevelopment, assets that are held for sale, and assets that experienced a casualty event that significantly impacted operations. REVPOR cannot be derived from the information presented for the Other portfolio as units reflect 100% of the unit capacities for unconsolidated JVs and revenue is at the Company's pro rata share. All facility occupancy data was derived solely from information provided by operators without independent verification by us. REVPOR relates to our Other non-reportable segment. REVPOR is a metric used to evaluate the revenue-generating capacity and profit potential of our other assets independent of fluctuating occupancy rates. It is also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our other assets.

REVPOR CCRC The 3-month average Cash Real Estate Revenues per occupied unit excluding Cash NREFs for the most recent period available. REVPOR CCRC excludes newly completed assets under lease-up, assets sold, acquired or converted to a new operating structure during the relevant period, assets in redevelopment, assets that are held for sale, and assets that experienced a casualty event that significantly impacted operations. REVPOR cannot be derived from the information presented for the CCRC portfolio as units reflect 100% of the unit capacities for unconsolidated JVs and revenue is at the Company's pro rata share. All facility occupancy data was derived solely from information provided by operators without independent verification by us. REVPOR CCRC is a metric used to evaluate the revenue-generating capacity and profit potential of our CCRC assets independent of fluctuating occupancy rates. It is also used in comparison against industry and competitor statistics, if known, to evaluate the quality of our CCRC assets.

RIDEA A structure whereby a taxable REIT subsidiary is permitted to rent a healthcare facility from its parent REIT and hire an independent contractor to operate the facility.

Same-Store (“SS”) Same-Store NOI and Cash (Adjusted) NOI information allows us to evaluate the performance of our property portfolio under a consistent population by eliminating changes in the composition of our portfolio of properties, excluding properties within the other non-reportable segments. We include properties from our consolidated portfolio, as well as properties owned by our unconsolidated joint ventures in Same-Store NOI and Adjusted NOI (see NOI definition above for further discussion regarding our use of pro-rata share information and its limitations). Same-Store NOI and Adjusted NOI exclude government grant income under the CARES Act. Same-Store Adjusted NOI also excludes amortization of deferred revenue from tenant-funded improvements and certain non-property specific operating expenses that are allocated to each operating segment on a consolidated basis. Properties are included in Same-Store once they are stabilized for the full period in both comparison periods. Newly acquired operating assets are generally considered stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least 80% of the space and rental payments have commenced) or 12 months from the acquisition date. Newly completed developments and redevelopments are considered stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. Properties that experience a change in reporting structure are considered stabilized after 12 months in operations under a consistent reporting structure. A property is removed from Same-Store when it is classified as held for sale, sold, placed into redevelopment, experiences a casualty event that significantly impacts operations, a change in reporting structure or operator transition has been agreed to, or a significant tenant relocates from a Same-Store property to a non Same-Store property and that change results in a corresponding increase in revenue. We do not report Same-Store metrics for our other non-reportable segments.

Secured Debt Ratio Enterprise Secured Debt divided by Enterprise Gross Assets. Secured Debt Ratio is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Our pro rata share information is calculated by applying our actual ownership percentage for the period and excludes debt funded by us to our JVs. Our pro rata share of Total Secured Debt from our unconsolidated JVs is not intended to reflect our actual liability or ability to access assets should there be a default under any or all such loans or a liquidation of the JVs.

Segments The Company’s diverse portfolio is comprised of investments in the following reportable healthcare segments: (i) lab; (ii) outpatient medical; and (iii) continuing care retirement community (“CCRC”).

Share of Consolidated Joint Ventures ("JVs") Noncontrolling interests' pro rata share information is prepared by applying noncontrolling interests' actual ownership percentage for the period and is intended to reflect noncontrolling interests' proportionate economic interest in the financial position and operating results of properties in our portfolio.

Share of Unconsolidated Joint Ventures ("JVs") Our pro rata share information is prepared by applying our actual ownership percentage for the period and is intended to reflect our proportionate economic interest in the financial position and operating results of properties in our portfolio.

Stabilized / Stabilization Newly acquired operating assets are generally considered Stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least 80% of the space and rental payments have commenced) or 12 months from the acquisition date. Newly completed developments and redevelopments are considered Stabilized at the earlier of lease-up or 24 months from the date the property is placed in service. Properties that experience a change in reporting structure are considered Stabilized after 12 months in operations under a consistent reporting structure.


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Reconciliations

Funds From Operations

In thousands, except per share data


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income (loss) applicable to common shares	$	51,750	$	68,057	$	169,449	$	137,693
Real estate related depreciation and amortization	197,573		180,489		376,798		358,222
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures	5,893		5,210		11,887		10,345
Noncontrolling interests’ share of real estate related depreciation and amortization	(4,685)		(4,844)		(9,470)		(9,685)

Loss (gain) on sales of depreciable real estate, net	(4,885)		(12,903)		(86,463)		(16,688)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures	—		129		—		(150)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net	—		—		11,546		12
Loss (gain) upon change of control, net	(234)		—		(234)		—
Taxes associated with real estate dispositions	—		16		—		(166)



Nareit FFO applicable to common shares	245,412		236,154		473,513		479,583
Distributions on dilutive convertible units and other	2,342		2,352		4,687		4,704
Diluted Nareit FFO applicable to common shares	$	247,754	$	238,506	$	478,200	$	484,287

Weighted average shares outstanding - diluted Nareit FFO	554,584		547,132		554,494		547,018

Impact of adjustments to Nareit FFO:
Transaction-related items	$	581	$	596	$	2,944	$	893
Other impairments (recoveries) and other losses (gains), net(1)	2,432		139		1,159		(8,770)
Restructuring and severance-related charges	1,368		—		1,368		—


Casualty-related charges (recoveries), net(2)	(591)		(411)		(243)		(411)



Total adjustments	3,790		324		5,228		(8,288)

FFO as Adjusted applicable to common shares	249,202		236,478		478,741		471,295
Distributions on dilutive convertible units and other	2,338		2,351		4,680		4,719
Diluted FFO as Adjusted applicable to common shares	$	251,540	$	238,829	$	483,421	$	476,014

Weighted average shares outstanding - diluted FFO as Adjusted	554,584		547,132		554,494		547,018

FFO as Adjusted applicable to common shares	$	249,202	$	236,478	$	478,741	$	471,295
Stock-based compensation amortization expense	4,245		5,300		7,532		10,021
Amortization of deferred financing costs	2,954		2,689		5,774		5,377
Straight-line rents(3)	(4,683)		(12,713)		(5,431)		(23,872)
AFFO capital expenditures	(19,444)		(27,906)		(42,233)		(50,745)


Deferred income taxes	(242)		(1,188)		(503)		(927)
Amortization of above (below) market lease intangibles, net	(8,838)		(5,885)		(14,641)		(11,653)
Other AFFO adjustments	(2,339)		(1,180)		(730)		(1,871)
AFFO applicable to common shares	220,855		195,595		428,509		397,625
Distributions on dilutive convertible units and other	2,342		1,649		4,686		3,296
Diluted AFFO applicable to common shares	$	223,197	$	197,244	$	433,195	$	400,921

Weighted average shares outstanding - diluted AFFO	554,584		545,307		554,494		545,193


			6


Reconciliations

Funds From Operations

In thousands, except per share data


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Diluted earnings per common share	$	0.09	$	0.13	$	0.31	$	0.26
Depreciation and amortization	0.37		0.33		0.69		0.66
Loss (gain) on sales of depreciable real estate, net	(0.01)		(0.02)		(0.14)		(0.03)
Loss (gain) upon change of control, net(2)	0.00		—		0.00		—
Taxes associated with real estate dispositions	—		0.00		—		0.00

Diluted Nareit FFO per common share	$	0.45	$	0.44	$	0.86	$	0.89
Transaction-related items	0.00		0.00		0.01		0.00
Other impairments (recoveries) and other losses (gains), net(1)	0.00		0.00		0.00		(0.02)
Restructuring and severance-related charges	0.00		—		0.00		—


Casualty-related charges (recoveries), net(2)	0.00		0.00		0.00		0.00



Diluted FFO as Adjusted per common share	$	0.45	$	0.44	$	0.87	$	0.87
Stock-based compensation amortization expense	0.01		0.01		0.02		0.02
Amortization of deferred financing costs	0.01		0.00		0.01		0.01
Straight-line rents(3)	(0.01)		(0.03)		(0.01)		(0.05)
AFFO capital expenditures	(0.04)		(0.05)		(0.08)		(0.09)
Deferred income taxes	0.00		0.00		0.00		0.00
Amortization of above (below) market lease intangibles, net	(0.02)		(0.01)		(0.03)		(0.02)
Other AFFO adjustments	0.00		0.00		0.00		0.00
Diluted AFFO per common share	$	0.40	$	0.36	$	0.78	$	0.74

______________________________________

(2)Casualty-related charges (recoveries), net are recognized in other income (expense), net and equity income (loss) from unconsolidated joint ventures in the Consolidated Statements of Operations.

(3)The six months ended June 30, 2023 includes an $8.7 million write-off of straight-line rent receivable associated with Sorrento Therapeutics, Inc., which commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code. This write-off is reflected as a reduction of rental and related revenues in the Consolidated Statements of Operations.


			7


Reconciliations

Projected Future Operations(1)

Per share data


	Full Year 2023
	Low		High
Diluted earnings per common share	$	0.49	$	0.53
Real estate related depreciation and amortization	1.36		1.36
Healthpeak's share of real estate related depreciation and amortization from unconsolidated joint ventures	0.05		0.05
Noncontrolling interests' share of real estate related depreciation and amortization	(0.04)		(0.04)

Loss (gain) on sales of depreciable real estate, net	(0.16)		(0.16)

Noncontrolling interests' share of gain (loss) on sale of depreciable real estate, net	0.02		0.02

Diluted Nareit FFO per common share	$	1.72	$	1.76

Transaction-related items	0.01		0.01


Diluted FFO as Adjusted per common share	$	1.73	$	1.77

Stock-based compensation amortization expense	$	0.03	$	0.03
Amortization of deferred financing costs	0.02		0.02
Straight-line rents	(0.06)		(0.06)
AFFO capital expenditures	(0.19)		(0.19)
Amortization of above (below) market lease intangibles, net	(0.05)		(0.05)

Other AFFO adjustments	0.01		0.01
Diluted AFFO per common share	$	1.49	$	1.53

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of July 27, 2023 including assumptions with respect to rental rates, occupancy levels, development items, and the earnings impact of the events referenced in our earnings press release that was issued on July 27, 2023. However, these projections do not reflect the impact of unannounced future transactions, except as described herein. Our actual results may differ materially from the projections set forth above. Except as otherwise required by law, management assumes no, and hereby disclaims any, obligation to update any of the foregoing projections as a result of new information or new or future developments.


			8


Reconciliations

Projected NOI(1)

In millions

For the projected year 2023 (low)


	Lab		Outpatient Medical		CCRC		Other		Corporate Adjustments		Total
Net income (loss)	$	387	$	216	$	(36)	$	21	$	(295)	$	297
Other income, costs, and expenses excluded from NOI(2)	257		248		140		(5)		288		924
NOI(3)	$	644	$	464	$	105	$	15	$	(6)	$	1,221
Non-SS NOI	(160)		(39)		1		(15)		6		(207)
SS NOI	$	484	$	424	$	106	$	—	$	—	$	1,013
Non-cash adjustments to SS NOI(4)	(26)		(11)		(1)		—		—		(38)
SS Cash (Adjusted) NOI	$	458	$	413	$	105	$	—	$	—	$	975
Non-SS cash NOI	148		37		(1)		15		(4)		195
Cash (Adjusted) NOI(5)	$	606	$	449	$	104	$	15	$	(4)	$	1,171

For the projected year 2023 (high)


	Lab		Outpatient Medical		CCRC		Other		Corporate Adjustments		Total
Net income (loss)	$	396	$	221	$	(31)	$	31	$	(294)	$	323
Other income, costs, and expenses excluded from NOI(2)	257		248		140		(5)		288		928
NOI(3)	$	654	$	468	$	109	$	26	$	(5)	$	1,251
Non-SS NOI	(162)		(40)		1		(26)		5		(222)
SS NOI	$	491	$	428	$	110	$	—	$	—	$	1,028
Non-cash adjustments to SS NOI(4)	(27)		(12)		(1)		—		—		(39)
SS Cash (Adjusted) NOI	$	464	$	417	$	109	$	—	$	—	$	989
Non-SS cash NOI	151		37		(1)		26		(12)		200
Cash (Adjusted) NOI(5)	$	615	$	454	$	108	$	26	$	(12)	$	1,191

______________________________________

(2)Represents interest income, gain (loss) on sales of real estate, net, other income (expense), net, income tax benefit (expense), equity income (loss) from unconsolidated joint ventures (excluding NOI), interest expense, depreciation and amortization, general and administrative, transaction costs, and loss on debt extinguishments.

(3)The midpoint of the low and high projected year 2023 total NOI is $1.236 million.

(4)Represents straight-line rents, amortization of market lease intangibles, net, the deferral of community fees, net of amortization, management contract termination expense, actuarial reserves for insurance claims that have been incurred but not reported, and lease termination fees.

(5)The midpoint of the low and high projected year 2023 total Cash (Adjusted) NOI is $1.181 million.


			9


Reconciliations

NOI(1)

In millions

For the year ended December 31, 2022


	Lab		Outpatient Medical		CCRC		Other		Corporate Adjustments		Total
Net income (loss)	$	627	$	210	$	(37)	$	19	$	(303)	$	516
Other income, costs, and expenses excluded from NOI(2)	(12)		239		140		(3)		303		667
NOI	$	615	$	448	$	103	$	17	$	—	$	1,183
Non-SS NOI	(128)		(33)		(7)		(17)		—		(184)
SS NOI	$	487	$	416	$	96	$	—	$	—	$	999
Non-cash adjustments to SS NOI(3)	(43)		(14)		2		—		—		(54)
SS Cash (Adjusted) NOI	$	444	$	402	$	98	$	—	$	—	$	945
Non-SS cash NOI	108		31		7		17		—		163
Cash (Adjusted) NOI	$	553	$	433	$	105	$	17	$	—	$	1,108

______________________________________

(1)May not foot, cross foot, or recalculate due to rounding and adjustments made to SS high and low ranges reported by segments.

(3)Represents straight-line rents, amortization of market lease intangibles, net, the deferral of community fees, net of amortization, management contract termination expense, actuarial reserves for insurance claims that have been incurred but not reported, and lease termination fees.


			10


Reconciliations

Enterprise Gross Assets

In thousands


	June 30, 2023

Consolidated total assets(1)	$	15,603,540
Investments in and advances to unconsolidated joint ventures	(731,956)
Accumulated depreciation and amortization of real estate	3,379,874
Accumulated amortization of real estate intangibles	393,829
Accumulated depreciation and amortization of real estate assets held for sale	5,367
Consolidated Gross Assets	$	18,650,654
Healthpeak's share of unconsolidated joint venture gross assets	946,835
Enterprise Gross Assets	$	19,597,489

______________________________________

(1)Consolidated total assets represents total assets on the Consolidated Balance Sheet as of June 30, 2023 presented on page 7 within the Earnings Release and Supplemental Report for the quarter ended June 30, 2023.


Portfolio Investment

In thousands


	June 30, 2023
	Lab		Outpatient Medical		CCRC		Other		Total
Net real estate	$	7,342,873	$	4,095,060	$	1,659,270	$	—	$	13,097,203
Real estate assets held for sale, net	—		8,067		—		—		8,067
Intangible assets, net	82,914		126,988		154,551		—		364,453
Accumulated depreciation and amortization of real estate	1,353,865		1,708,040		317,969		—		3,379,874

Accumulated amortization of real estate intangibles	74,005		137,697		182,127		—		393,829
Accumulated depreciation and amortization of real estate assets held for sale	—		5,367		—		—		5,367
Healthpeak's share of unconsolidated joint venture gross real estate assets	403,080		18,819		—		467,765		889,664
Fully depreciated and amortization real estate and intangibles assets	489,428		654,559		18,714		—		1,162,701
Leasing commissions and other	86,507		66,270		—		—		152,777
Debt investments	—		—		—		187,363		187,363
Land held for development	(685,010)		(4,676)		—		—		(689,686)
Real estate intangible liabilities, gross	(195,268)		(136,853)		—		—		(332,121)
Noncontrolling interests' share of consolidated joint venture real estate and related intangibles	(5,081)		(380,974)		—		—		(386,055)
Portfolio Investment	$	8,947,313	$	6,298,364	$	2,332,631	$	655,128	$	18,233,436


			11


Reconciliations


Revenues

In thousands


	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Lab	$	207,771	$	207,795	$	207,952	$	205,464	$	223,306
Outpatient Medical	179,308		184,506		184,293		186,967		186,661
CCRC	125,360		122,142		125,873		127,084		130,184
Other	5,493		5,963		6,350		6,163		5,279


Total revenues	$	517,932	$	520,406	$	524,468	$	525,678	$	545,430
Lab	—		—		—		—		—
Outpatient Medical	—		—		—		—		—
CCRC	209		4		—		137		47
Other	—		—		—		—		—


Government grant income	$	209	$	4	$	—	$	137	$	47
Lab	—		—		—		—		—
Outpatient Medical	—		—		—		—		—
CCRC	—		—		—		—		—
Other	(5,493)		(5,963)		(6,350)		(6,163)		(5,279)


Less: Interest income	$	(5,493)	$	(5,963)	$	(6,350)	$	(6,163)	$	(5,279)
Lab	1,267		2,938		4,285		2,165		1,928
Outpatient Medical	761		756		750		745		754
CCRC	—		—		—		—		—
Other	18,215		18,656		18,969		20,346		20,261


Healthpeak's share of unconsolidated joint venture real estate revenues	$	20,243	$	22,350	$	24,004	$	23,256	$	22,943
Lab	—		—		—		—		—
Outpatient Medical	—		—		—		—		—
CCRC	—		—		47		—		—
Other	—		183		—		228		—


Healthpeak's share of unconsolidated joint venture government grant income	$	—	$	183	$	47	$	228	$	—
Lab	(62)		(55)		(94)		(143)		(151)
Outpatient Medical	(8,943)		(8,968)		(8,986)		(8,963)		(8,665)
CCRC	—		—		—		—		—
Other	—		—		—		—		—


Noncontrolling interests' share of consolidated joint venture real estate revenues	$	(9,005)	$	(9,023)	$	(9,080)	$	(9,106)	$	(8,816)







Lab	208,976		210,678		212,143		207,486		225,083
Outpatient Medical	171,126		176,294		176,057		178,749		178,749
CCRC	125,569		122,146		125,920		127,221		130,231
Other	18,215		18,839		18,969		20,574		20,261


Portfolio Real Estate Revenues	$	523,886	$	527,957	$	533,089	$	534,030	$	554,324
Lab	(21,653)		(15,231)		(11,786)		(842)		(14,950)
Outpatient Medical	(3,643)		(4,780)		(5,631)		(4,470)		(4,685)
CCRC	—		—		—		—		—
Other	86		66		55		(8)		17


Non-cash adjustments to Portfolio Real Estate Revenues	$	(25,210)	$	(19,945)	$	(17,362)	$	(5,320)	$	(19,618)

Continued


			12


Reconciliations

Revenues

In thousands


	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Lab	187,323		195,447		200,357		206,644		210,133
Outpatient Medical	167,483		171,514		170,426		174,279		174,064
CCRC	125,569		122,146		125,920		127,221		130,231
Other	18,301		18,905		19,024		20,566		20,278


Portfolio Cash Real Estate Revenues	$	498,676	$	508,012	$	515,727	$	528,710	$	534,706
Lab	21,653		15,231		11,786		842		14,950
Outpatient Medical	3,643		4,780		5,631		4,470		4,685
CCRC	—		—		—		—		—
Other	(86)		(66)		(55)		8		(17)


Non-cash adjustments to Portfolio Real Estate Revenues	$	25,210	$	19,945	$	17,362	$	5,320	$	19,618
Lab	(38,022)		(34,842)		(36,619)		(38,764)		(47,030)
Outpatient Medical	(14,450)		(15,338)		(15,566)		(16,858)		(15,866)
CCRC	(209)		(3)		(47)		(137)		(232)
Other	(18,215)		(18,839)		(18,969)		(20,574)		(20,261)


Non-SS Portfolio Real Estate Revenues	$	(70,896)	$	(69,022)	$	(71,201)	$	(76,333)	$	(83,389)
Lab	170,954		175,836		175,524		168,722		178,053
Outpatient Medical	156,676		160,956		160,491		161,891		162,883
CCRC	125,360		122,143		125,873		127,084		129,999
Other	—		—		—		—		—


Portfolio Real Estate Revenue - SS	$	452,990	$	458,935	$	461,888	$	457,697	$	470,935
Lab	(13,637)		(12,567)		(10,978)		1,053		(11,621)
Outpatient Medical	(3,512)		(4,288)		(5,115)		(4,050)		(4,141)
CCRC	—		—		—		—		—
Other	—		—		—		—		—


Non-cash adjustment to SS Portfolio Real Estate Revenues	$	(17,149)	$	(16,855)	$	(16,093)	$	(2,997)	$	(15,762)
Lab	157,317		163,269		164,546		169,775		166,432
Outpatient Medical	153,164		156,668		155,376		157,841		158,742
CCRC	125,360		122,143		125,873		127,084		129,999
Other	—		—		—		—		—


Portfolio Cash Real Estate Revenue - SS	$	435,841	$	442,080	$	445,795	$	454,700	$	455,173


			13


Reconciliations


Operating Expenses

In thousands


	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Lab	$	49,446	$	55,162	$	56,346	$	57,566	$	54,832
Outpatient Medical	63,321		64,782		64,036		64,398		65,350
CCRC	102,277		100,264		100,110		101,124		101,655
Other	—		—		—		—		—


Operating expenses	$	215,044	$	220,208	$	220,492	$	223,088	$	221,837
Lab	483		777		1,140		1,182		848
Outpatient Medical	301		313		265		305		288
CCRC	—		—		—		—		—
Other	14,150		14,599		14,828		15,006		14,618


Healthpeak's share of unconsolidated joint venture operating expenses	$	14,934	$	15,689	$	16,233	$	16,493	$	15,754
Lab	(19)		(21)		(28)		(40)		(35)
Outpatient Medical	(2,726)		(2,558)		(2,431)		(2,595)		(2,409)
CCRC	—		—		—		—		—
Other	—		—		—		—		—


Noncontrolling interests' share of consolidated joint venture operating expenses	$	(2,745)	$	(2,579)	$	(2,459)	$	(2,635)	$	(2,444)
Lab	49,910		55,918		57,458		58,708		55,645
Outpatient Medical	60,896		62,537		61,870		62,108		63,229
CCRC	102,277		100,264		100,110		101,124		101,655
Other	14,150		14,599		14,828		15,006		14,618


Portfolio Operating Expenses	$	227,233	$	233,318	$	234,266	$	236,946	$	235,147
Lab	(9)		(10)		(8)		(10)		(7)
Outpatient Medical	(694)		(701)		(692)		(649)		(677)
CCRC	—		—		(2,299)		(50)		728
Other	32		(10)		8		13		27


Non-cash adjustments to Portfolio Operating Expenses	$	(671)	$	(721)	$	(2,991)	$	(696)	$	71
Lab	49,901		55,908		57,450		58,698		55,638
Outpatient Medical	60,202		61,836		61,178		61,459		62,552
CCRC	102,277		100,264		97,811		101,074		102,383
Other	14,182		14,589		14,836		15,019		14,645


Portfolio Cash Operating Expenses	$	226,562	$	232,597	$	231,275	$	236,250	$	235,218
Lab	9		10		8		10		7
Outpatient Medical	694		701		692		649		677
CCRC	—		—		2,299		50		(728)
Other	(32)		10		(8)		(13)		(27)


Non-cash adjustments to Portfolio Operating Expenses	$	671	$	721	$	2,991	$	696	$	(71)
Lab	(8,874)		(9,635)		(10,787)		(9,772)		(9,908)
Outpatient Medical	(7,994)		(7,842)		(7,671)		(7,070)		(7,312)
CCRC	(443)		(350)		(341)		(446)		(445)
Other	(14,150)		(14,599)		(14,828)		(15,006)		(14,618)


Non-SS Portfolio Operating Expenses	$	(31,461)	$	(32,426)	$	(33,627)	$	(32,294)	$	(32,283)

Continued


			14


Reconciliations


Operating Expenses

In thousands


	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Lab	41,036		46,283		46,671		48,936		45,737
Outpatient Medical	52,902		54,695		54,199		55,038		55,917
CCRC	101,834		99,914		99,769		100,678		101,210
Other	—		—		—		—		—


Portfolio Operating Expenses - SS	$	195,772	$	200,892	$	200,639	$	204,652	$	202,864
Lab	(9)		(9)		(10)		(9)		(6)
Outpatient Medical	(657)		(652)		(648)		(607)		(638)
CCRC	—		—		(2,300)		(50)		728
Other	—		—		—		—		—


Non-cash adjustment to SS Portfolio Operating Expenses	$	(666)	$	(661)	$	(2,958)	$	(666)	$	84
Lab	41,027		46,274		46,661		48,927		45,731
Outpatient Medical	52,245		54,043		53,551		54,431		55,279
CCRC	101,834		99,914		97,469		100,628		101,938
Other	—		—		—		—		—


Portfolio Cash Operating Expenses - SS	$	195,106	$	200,231	$	197,681	$	203,986	$	202,948


			15


Reconciliations

Revenue

Operating Expenses

In thousands


Six Months Ended June 30, 2023			Six Months Ended June 30, 2023
Lab	$	428,770	Lab	$	112,397
Outpatient Medical	373,628		Outpatient Medical	129,749
CCRC	257,268		CCRC	202,779
Other	11,442		Other	—


Total revenues	$	1,071,108	Operating expenses	$	444,925
Lab	—		Lab	2,030
Outpatient Medical	—		Outpatient Medical	595
CCRC	184		CCRC	—
Other	—		Other	29,624


Government grant income	$	184	Healthpeak's share of unconsolidated joint venture operating expenses	$	32,249
Lab	—		Lab	(75)
Outpatient Medical	—		Outpatient Medical	(5,004)
CCRC	—		CCRC	—
Other	(11,442)		Other	—


Less: Interest income	$	(11,442)	Noncontrolling interests' share of consolidated joint venture operating expenses	$	(5,079)
Lab	4,093		Lab	114,353
Outpatient Medical	1,498		Outpatient Medical	125,339
CCRC	—		CCRC	202,779
Other	40,607		Other	29,624


Healthpeak's share of unconsolidated joint venture real estate revenues	$	46,198	Portfolio Operating Expenses	$	472,095
Lab	—		Lab	(17)
Outpatient Medical	—		Outpatient Medical	(1,328)
CCRC	—		CCRC	678
Other	229		Other	40


Healthpeak's share of unconsolidated joint venture government grant income	$	229	Non-cash adjustments to Portfolio Operating Expenses	$	(627)
Lab	(294)		Lab	114,336
Outpatient Medical	(17,628)		Outpatient Medical	124,011
CCRC	—		CCRC	203,457
Other	—		Other	29,664


Noncontrolling interests' share of consolidated joint venture real estate revenues	$	(17,922)	Portfolio Cash Operating Expenses	$	471,468
Lab	432,569		Lab	$	16
Outpatient Medical	357,498		Outpatient Medical	1,330
CCRC	257,452		CCRC	(678)
Other	40,836		Other	(40)


Portfolio Real Estate Revenues	$	1,088,355	Non-cash Portfolio Cash Operating Expenses	$	628
Lab	(15,792)		Lab	(21,463)
Outpatient Medical	(9,155)		Outpatient Medical	(16,138)
CCRC	—		CCRC	(891)
Other	8		Other	(29,624)


Non-cash adjustments to Portfolio Real Estate Revenues	$	(24,939)	Non-SS Portfolio Operating Expenses	$	(68,116)

Continued


			16


Reconciliations

Revenue

Operating Expenses

In thousands


Six Months Ended June 30, 2023			Six Months Ended June 30, 2023
Lab	416,777		Lab	92,889
Outpatient Medical	348,343		Outpatient Medical	109,203
CCRC	257,452		CCRC	201,888
Other	40,844		Other	—


Portfolio Cash Real Estate Revenues	$	1,063,416	Portfolio Operating Expenses - SS(1)	$	403,980
Lab	15,792		Lab	(16)
Outpatient Medical	9,155		Outpatient Medical	(1,244)
CCRC	—		CCRC	677
Other	(8)		Other	—


Non-cash adjustments to Portfolio Real Estate Revenues	$	24,939	Non-cash adjustment to SS Portfolio Operating Expenses	$	(583)
Lab	(92,828)		Lab	92,873
Outpatient Medical	(36,807)		Outpatient Medical	107,959
CCRC	(368)		CCRC	202,565
Other	(40,837)		Other	—


Non-SS Portfolio Real Estate Revenue	$	(170,840)	Portfolio Cash Operating Expenses - SS(1)	$	403,397
Lab	$	339,741
Outpatient Medical	320,691
CCRC	257,084
Other	—


Portfolio Real Estate Revenue - SS(1)	$	917,516
Lab	(11,147)
Outpatient Medical	(7,582)
CCRC	—
Other	—


Non-cash adjustment to SS Portfolio Real Estate Revenues	$	(18,729)
Lab	328,594
Outpatient Medical	313,109
CCRC	257,084
Other	—


Portfolio Cash Real Estate Revenue - SS(1)	$	898,787

______________________________________

(1)The property count used for Portfolio Real Estate Revenues - SS, Portfolio Cash Real Estate Revenues - SS, Portfolio Operating Expenses - SS, and Portfolio Cash Operating Expenses - SS differed for the three and six months ended June 30, 2023.


			17


Reconciliations


Net Income to Adjusted EBITDAre

In thousands


	Three Months Ended June 30, 2023
Net income (loss)	$	56,199
Interest expense	49,074
Income tax expense (benefit)	1,136
Depreciation and amortization	197,573
Other depreciation and amortization	1,162
Loss (gain) on sales of real estate	(4,885)
Loss (gain) upon change of control	(234)

Share of unconsolidated JV:
Interest expense	220
Income tax expense (benefit)	235
Depreciation and amortization	5,893



EBITDAre	$	306,373






Transaction-related items(1)	637

Other impairments (recoveries) and losses (gains)(1)	2,835
Restructuring and severance-related charges	1,368


Casualty-related charges (recoveries)(1)	(795)
Stock-based compensation amortization expense	4,245


Impact of transactions closed during the period(2)	(279)

Adjusted EBITDAre	$	314,384


Adjusted Fixed Charge Coverage

In thousands


	Three Months Ended June 30, 2023


Interest expense, including unconsolidated JV interest expense at share	49,294
Capitalized interest, including unconsolidated JV capitalized interest at share	14,518
Fixed Charges	$	63,812

Adjusted Fixed Charge Coverage	4.9x

______________________________________

(1)This amount includes the corresponding line on the Funds From Operations reconciliation on page 6 of this document excluding the related tax impact included in the adjustment for income tax expense (benefit) above.

(2)Adjustment reflects the impact of transactions that closed during the period as if the transactions were completed at the beginning of the period.


			18


Reconciliations


Enterprise Debt and Net Debt

In thousands


	June 30, 2023
Bank line of credit and commercial paper	$	329,000
Term loan	496,382
Senior unsecured notes	5,399,504
Mortgage debt	343,766

Consolidated Debt	$	6,568,652
Share of unconsolidated JV mortgage debt	39,898

Enterprise Debt	$	6,608,550
Cash and cash equivalents	(103,780)
Share of unconsolidated JV cash and cash equivalents	(38,270)
Restricted cash	(56,745)
Share of unconsolidated JV restricted cash	(3,105)

Net Debt	$	6,406,650


Financial Leverage

In thousands


	June 30, 2023
Enterprise Debt	$	6,608,550
Enterprise Gross Assets	19,597,489
Financial Leverage	33.7%


Secured Debt Ratio

In thousands


	June 30, 2023
Mortgage debt	$	343,766
Share of unconsolidated JV mortgage debt	39,898
Enterprise Secured Debt	$	383,664
Enterprise Gross Assets	19,597,489
Secured Debt Ratio	2.0%


Net Debt to Adjusted EBITDAre

In thousands

Three Months Ended
June 30, 2023

Net Debt

6,406,650

Annualized Adjusted EBITDAre(1)

1,257,536

Net Debt to Adjusted EBITDAre

5.1x

______________________________________

(1)For the three months ended, represents the current quarter Adjusted EBITDAre multiplied by a factor of four.


			19


Reconciliations


Segment Portfolio NOI and Cash (Adjusted) NOI, Portfolio Income, and SS

In thousands


Total Portfolio	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Net income (loss)	$	72,293	$	357,986	$	10,802	$	134,507	$	56,199
Loss (income) from discontinued operations	(2,992)		1,298		(873)		—		—
Income (loss) from continuing operations	$	69,301	$	359,284	$	9,929	$	134,507	$	56,199
Interest income	(5,493)		(5,963)		(6,350)		(6,163)		(5,279)
Interest expense	41,867		44,078		49,413		47,963		49,074
Depreciation and amortization	180,489		173,190		179,157		179,225		197,573
General and administrative	24,781		24,549		57,872		24,547		25,936
Transaction costs	612		728		3,217		2,425		637
Impairments and loan loss reserves (recoveries), net	139		3,407		3,326		(2,213)		2,607
Loss (gain) on sales of real estate, net	(10,340)		4,149		969		(81,578)		(4,885)
Other expense (income), net	(2,861)		(305,678)		587		(772)		(1,955)
Government grant income	209		4		—		137		47

Income tax expense (benefit)	(718)		(3,834)		(650)		302		1,136
Equity loss (income) from unconsolidated joint ventures	(382)		325		156		(1,816)		(2,729)
Healthpeak's share of unconsolidated joint venture NOI	5,309		6,844		7,818		6,991		7,189
Noncontrolling interests' share of consolidated joint venture NOI	(6,260)		(6,444)		(6,621)		(6,471)		(6,372)
Portfolio NOI	$	296,653	$	294,639	$	298,823	$	297,084	$	319,178
Adjustment to Portfolio NOI	(24,539)		(19,224)		(14,371)		(4,624)		(19,688)
Portfolio Cash (Adjusted) NOI	$	272,114	$	275,415	$	284,452	$	292,460	$	299,490
Interest income	5,493		5,963		6,350		6,163		5,279

Portfolio Income	$	277,607	$	281,378	$	290,802	$	298,623	$	304,769
Interest income	(5,493)		(5,963)		(6,350)		(6,163)		(5,279)

Adjustment to Portfolio NOI	24,539		19,224		14,371		4,624		19,688
Non-SS Portfolio NOI	(39,438)		(36,595)		(37,575)		(44,039)		(51,108)
SS Portfolio NOI	$	257,215	$	258,044	$	261,248	$	253,045	$	268,070
Non-cash adjustment to SS Portfolio NOI	(16,480)		(16,195)		(13,134)		(2,331)		(15,846)
SS Portfolio Cash (Adjusted) NOI	$	240,735	$	241,849	$	248,114	$	250,714	$	252,224

Continued


			20


Reconciliations


Segment Portfolio NOI and Cash (Adjusted) NOI, Portfolio Income, and SS

In thousands


Lab	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Net income (loss)	$	78,794	$	393,487	$	75,575	$	133,258	$	76,551
Loss (income) from discontinued operations	—		—		—		—		—
Income (loss) from continuing operations	$	78,794	$	393,487	$	75,575	$	133,258	$	76,551


Depreciation and amortization	79,673		70,141		74,697		75,582		93,235

Transaction costs	35		40		20		158		—

Loss (gain) on sales of real estate, net	—		—		112		(60,498)		—
Other expense (income), net	(29)		(311,912)		(7)		(4)		2


Equity loss (income) from unconsolidated joint ventures	(148)		877		1,209		(598)		(1,314)
Healthpeak's share of unconsolidated joint venture NOI	784		2,161		3,145		983		1,080
Noncontrolling interests' share of consolidated joint venture NOI	(43)		(34)		(66)		(103)		(116)
Portfolio NOI	$	159,066	$	154,760	$	154,685	$	148,778	$	169,438
Adjustment to Portfolio NOI	(21,644)		(15,221)		(11,778)		(832)		(14,943)
Portfolio Cash (Adjusted) NOI(1)	$	137,422	$	139,539	$	142,907	$	147,946	$	154,495





Adjustment to Portfolio NOI	21,644		15,221		11,778		832		14,943
Non-SS Portfolio NOI	(29,150)		(25,206)		(25,833)		(28,991)		(37,124)
SS Portfolio NOI	$	129,916	$	129,554	$	128,852	$	119,787	$	132,314
Non-cash adjustment to SS Portfolio NOI	(13,626)		(12,559)		(10,967)		1,061		(11,613)
SS Portfolio Cash (Adjusted) NOI	$	116,290	$	116,995	$	117,885	$	120,848	$	120,701


Outpatient Medical	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Net income (loss)	$	56,929	$	47,663	$	45,571	$	71,064	$	48,068
Loss (income) from discontinued operations	—		—		—		—		—
Income (loss) from continuing operations	$	56,929	$	47,663	$	45,571	$	71,064	$	48,068

Interest expense	1,930		1,964		1,970		1,920		1,924
Depreciation and amortization	68,873		70,917		71,983		71,158		71,722

Transaction costs	70		94		1,087		132		16

Loss (gain) on sales of real estate, net	(10,340)		(554)		235		(21,312)		—
Other expense (income), net	(1,264)		(154)		(354)		(204)		(235)


Equity loss (income) from unconsolidated joint ventures	(211)		(206)		(235)		(189)		(184)
Healthpeak's share of unconsolidated joint venture NOI	460		443		485		440		466
Noncontrolling interests' share of consolidated joint venture NOI	(6,217)		(6,410)		(6,555)		(6,368)		(6,256)
Portfolio NOI	$	110,230	$	113,757	$	114,187	$	116,641	$	115,521
Adjustment to Portfolio NOI	(2,949)		(4,079)		(4,939)		(3,821)		(4,008)
Portfolio Cash (Adjusted) NOI(1)	$	107,281	$	109,678	$	109,248	$	112,820	$	111,513





Adjustment to Portfolio NOI	2,949		4,079		4,939		3,821		4,008
Non-SS Portfolio NOI	(6,457)		(7,496)		(7,895)		(9,789)		(8,554)
SS Portfolio NOI	$	103,773	$	106,261	$	106,292	$	106,852	$	106,967
Non-cash adjustment to SS Portfolio NOI	(2,854)		(3,636)		(4,467)		(3,442)		(3,505)
SS Portfolio Cash (Adjusted) NOI	$	100,919	$	102,625	$	101,825	$	103,410	$	103,462

Continued


			21


Reconciliations


Segment Portfolio NOI and Cash (Adjusted) NOI, Portfolio Income, and SS

In thousands


CCRC	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Net income (loss)	$	(10,170)	$	(19,821)	$	(10,097)	$	(9,227)	$	(5,514)
Loss (income) from discontinued operations	—		—		—		—		—
Income (loss) from continuing operations	$	(10,170)	$	(19,821)	$	(10,097)	$	(9,227)	$	(5,514)

Interest expense	1,876		1,887		1,881		1,816		1,823
Depreciation and amortization	31,943		32,132		32,477		32,485		32,616

Transaction costs	64		594		67		219		278

Other expense (income), net	(630)		7,086		1,435		667		(674)

Government grant income	209		4		—		137		47

Healthpeak's share of unconsolidated joint venture NOI	—		—		47		—		—

Portfolio NOI	$	23,292	$	21,882	$	25,810	$	26,097	$	28,576
Adjustment to Portfolio NOI	—		—		2,299		50		(728)
Portfolio Cash (Adjusted) NOI(1)	$	23,292	$	21,882	$	28,109	$	26,147	$	27,848





Adjustment to Portfolio NOI	—		—		(2,299)		(50)		728
Non-SS Portfolio NOI	234		347		294		309		213
SS Portfolio NOI	$	23,526	$	22,229	$	26,104	$	26,406	$	28,789
Non-cash adjustment to SS Portfolio NOI	—		—		2,300		50		(728)
SS Portfolio Cash (Adjusted) NOI	$	23,526	$	22,229	$	28,404	$	26,456	$	28,061


Other	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Net income (loss)	$	5,395	$	(1,801)	$	3,221	$	9,173	$	8,769
Loss (income) from discontinued operations	—		—		—		—		—
Income (loss) from continuing operations	$	5,395	$	(1,801)	$	3,221	$	9,173	$	8,769
Interest income	(5,493)		(5,963)		(6,350)		(6,163)		(5,279)




Impairments and loan loss (reserves) recoveries, net	139		3,407		3,326		(2,213)		2,607
Loss (gain) on sales of real estate, net	—		4,703		622		232		(4,885)
Other expense (income), net	(18)		—		(1)		—		19


Equity loss (income) from unconsolidated joint ventures	(23)		(346)		(818)		(1,029)		(1,231)
Healthpeak's share of unconsolidated joint venture NOI	4,065		4,240		4,141		5,568		5,643

Portfolio NOI	$	4,065	$	4,240	$	4,141	$	5,568	$	5,643
Adjustment to Portfolio NOI	54		76		47		(21)		(9)
Portfolio Cash (Adjusted) NOI	$	4,119	$	4,316	$	4,188	$	5,547	$	5,634
Interest income	5,493		5,963		6,350		6,163		5,279

Portfolio Income	$	9,612	$	10,279	$	10,538	$	11,710	$	10,913
Interest income	(5,493)		(5,963)		(6,350)		(6,163)		(5,279)

Adjustment to Portfolio NOI	(54)		(76)		(47)		21		9
Non-SS Portfolio NOI	(4,065)		(4,240)		(4,141)		(5,568)		(5,643)
SS Portfolio NOI	$	—	$	—	$	—	$	—	$	—

SS Portfolio Cash (Adjusted) NOI	$	—	$	—	$	—	$	—	$	—

Continued


			22


Reconciliations


Segment Portfolio NOI and Cash (Adjusted) NOI, Portfolio Income, and SS

In thousands


Corporate Non-Segment	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Net income (loss)	$	(58,655)	$	(61,542)	$	(103,468)	$	(69,761)	$	(71,675)
Loss (income) from discontinued operations	(2,992)		1,298		(873)		—		—
Income (loss) from continuing operations	$	(61,647)	$	(60,244)	$	(104,341)	$	(69,761)	$	(71,675)
Interest expense	38,061		40,227		45,562		44,227		45,327
General and administrative	24,781		24,549		57,872		24,547		25,936
Transaction costs	443		—		2,043		1,916		343


Other expense (income), net	(920)		(698)		(486)		(1,231)		(1,067)
Income tax expense (benefit)	(718)		(3,834)		(650)		302		1,136
Portfolio NOI	$	—	$	—	$	—	$	—	$	—

______________________________________

(1)Portfolio Income and Portfolio Cash (Adjusted) NOI are the same for Lab, Outpatient Medical, and CCRC for all periods presented as there is no interest income related to such segments.


			23


Reconciliations


Segment Portfolio NOI and Cash (Adjusted) NOI, Portfolio Income, and SS

In thousands

For the six months ended June 30, 2023


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Net income (loss)	$	209,809	$	119,130	$	(14,740)	$	17,942	$	(141,435)	$	190,706
Loss (income) from discontinued operations	—		—		—		—		—		—
Income (loss) from continuing operations	$	209,809	$	119,130	$	(14,740)	$	17,942	$	(141,435)	$	190,706
Interest income	—		—		—		(11,442)		—		(11,442)
Interest expense	—		3,845		3,639		—		89,553		97,037
Depreciation and amortization	168,817		142,881		65,100		—		—		376,798
General and administrative	—		—		—		—		50,483		50,483
Transaction costs	158		148		497		—		2,259		3,062
Impairments and loan loss (reserves) recoveries, net	—		—		—		394		—		394
Loss (gain) on sales of real estate, net	(60,498)		(21,312)		—		(4,653)		—		(86,463)

Other expense (income), net	(2)		(439)		(7)		19		(2,298)		(2,727)
Income tax expense (benefit)	—		—		—		—		1,438		1,438
Government grant income	—		—		184		—		—		184
Healthpeak's share of unconsolidated joint venture NOI	2,063		903		—		11,214		—		14,180
Noncontrolling interests' share of consolidated joint venture NOI	(219)		(12,624)		—		—		—		(12,843)
Equity loss (income) from unconsolidated joint ventures	(1,911)		(374)		—		(2,260)		—		(4,545)


Portfolio NOI	$	318,217	$	232,158	$	54,673	$	11,214	$	—	$	616,262
Adjustment to NOI	(15,776)		(7,825)		(678)		(33)		—		(24,312)
Portfolio Cash (Adjusted) NOI	$	302,441	$	224,333	$	53,995	$	11,181	$	—	$	591,950
Interest Income	—		—		—		11,442		—		11,442

Portfolio Income	$	302,441	$	224,333	$	53,995	$	22,623	$	—	$	603,392
Interest income	—		—		—		(11,442)		—		(11,442)

Adjustment to NOI	15,776		7,825		678		33		—		24,312
Non-SS Portfolio NOI	(71,367)		(20,669)		523		(11,214)		—		(102,727)
SS Portfolio NOI(1)	$	246,850	$	211,489	$	55,196	$	—	$	—	$	513,535
Non-cash adjustment to SS Portfolio NOI	(11,129)		(6,338)		(678)		—		—		(18,145)
SS Portfolio Cash (Adjusted) NOI(1)	$	235,721	$	205,151	$	54,518	$	—	$	—	$	495,390

______________________________________

(1)The property count used for SS Portfolio NOI and SS Portfolio Cash (Adjusted) NOI differed for the three and six months ended June 30, 2023 and 2022.


			24


Reconciliations


Segment Portfolio NOI and Cash (Adjusted) NOI, Portfolio Income, and SS

In thousands

For the six months ended June 30, 2022


	Lab		Outpatient Medical		CCRC		Other Non-reportable		Corporate Non-segment		Total
Net income (loss)	$	151,043	$	115,346	$	(13,135)	$	11,105	$	(116,723)	$	147,636
Loss (income) from discontinued operations	—		—		—		—		3,309		3,309
Income (loss) from continuing operations	$	151,043	$	115,346	$	(13,135)	$	11,105	$	(120,032)	$	144,327
Interest income	—		—		—		(10,987)		—		(10,987)
Interest expense	—		2,966		3,741		—		72,746		79,453
Depreciation and amortization	157,811		136,646		63,765		—		—		358,222
General and administrative	—		—		—		—		48,612		48,612
Transaction costs	327		74		64		—		443		908
Impairments and loan loss (reserves) recoveries, net	—		—		—		271		—		271
Loss (gain) on sales of real estate, net	(3,856)		(10,340)		—		—		—		(14,196)

Other expense (income), net	(20)		(12,201)		(7,141)		13		(1,828)		(21,177)
Income tax expense (benefit)	—		—		—		—		59		59
Government grant income	—		—		6,762		—		—		6,762
Healthpeak's share of unconsolidated joint venture NOI	1,733		892		333		8,370		—		11,328
Noncontrolling interests' share of consolidated joint venture NOI	(81)		(12,435)		—		—		—		(12,516)
Equity loss (income) from unconsolidated joint ventures	(1,114)		(411)		(539)		(402)		—		(2,466)


Portfolio NOI	$	305,843	$	220,537	$	53,850	$	8,370	$	—	$	588,600
Adjustment to NOI	(35,756)		(6,495)		—		45		—		(42,206)
Portfolio Cash (Adjusted) NOI	$	270,087	$	214,042	$	53,850	$	8,415	$	—	$	546,394
Interest Income	—		—		—		10,987		—		10,987
Portfolio Income	$	270,087	$	214,042	$	53,850	$	19,402	$	—	$	557,381
Interest income	—		—		—		(10,987)		—		(10,987)
Adjustment to NOI	35,756		6,495		—		(45)		—		42,206
Non-SS Portfolio NOI	(56,610)		(15,223)		(6,162)		(8,370)		—		(86,365)
SS Portfolio NOI(1)	$	249,233	$	205,314	$	47,688	$	—	$	—	$	502,235
Non-cash adjustment to SS Portfolio NOI	(24,462)		(6,426)		—		—		—		(30,888)
SS Portfolio Cash (Adjusted) NOI(1)	$	224,771	$	198,888	$	47,688	$	—	$	—	$	471,347

______________________________________

(1)The property count used for SS Portfolio NOI and SS Portfolio Cash (Adjusted) NOI differed for the three and six months ended June 30, 2023 and 2022.


			25


Reconciliations


Healthpeak's Share of Unconsolidated Joint Venture NOI

In thousands


Total Portfolio	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Equity income (loss) from unconsolidated joint ventures	$	382	$	(325)	$	(156)	$	1,816	$	2,729
Depreciation and amortization	5,210		8,704		8,642		5,993		5,893
General and administrative	71		177		167		444		249
Loss (gain) on sales of real estate, net	150		239		45		—		—
Other expense (income), net	(592)		(2,069)		(861)		(1,478)		(1,917)
Income tax expense (benefit)	88		118		(19)		216		235

Healthpeak's share of unconsolidated joint venture NOI	$	5,309	$	6,844	$	7,818	$	6,991	$	7,189


Lab	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Equity income (loss) from unconsolidated joint ventures	$	148	$	(877)	$	(1,209)	$	598	$	1,314
Depreciation and amortization	776		3,709		5,037		1,521		1,415
General and administrative	—		123		160		345		209
Other expense (income), net	(140)		(794)		(843)		(1,481)		(1,858)




Healthpeak's share of unconsolidated joint venture NOI	$	784	$	2,161	$	3,145	$	983	$	1,080


Outpatient Medical	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Equity income (loss) from unconsolidated joint ventures	$	211	$	206	$	235	$	189	$	184
Depreciation and amortization	226		225		240		238		256
General and administrative	17		5		3		7		21


Income tax expense (benefit)	6		7		7		6		5

Healthpeak's share of unconsolidated joint venture NOI	$	460	$	443	$	485	$	440	$	466


CCRC	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Equity income (loss) from unconsolidated joint ventures	$	—	$	—	$	—	$	—	$	—


Loss (gain) on sales of real estate, net	150		—		45		—		—
Other expense (income), net	(150)		—		2		—		—


Healthpeak's share of unconsolidated joint venture NOI	$	—	$	—	$	47	$	—	$	—


Other	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Equity income (loss) from unconsolidated joint ventures	$	23	$	346	$	818	$	1,029	$	1,231
Depreciation and amortization	4,208		4,770		3,365		4,234		4,222
General and administrative	54		49		4		92		19

Other expense (income), net	(302)		(1,036)		(20)		3		(59)
Income tax expense (benefit)	82		111		(26)		210		230

Healthpeak's share of unconsolidated joint venture NOI	$	4,065	$	4,240	$	4,141	$	5,568	$	5,643


			26


Reconciliations


Healthpeak's Share of Unconsolidated Joint Venture NOI

In thousands

For the six months ended June 30, 2023


	Lab		Outpatient Medical		CCRC		Other		Total
Equity income (loss) from unconsolidated joint ventures	$	1,911	$	374	$	—	$	2,260	$	4,545
Depreciation and amortization	2,936		494		—		8,457		11,887
General and administrative	554		24		—		110		688

Other expense (income), net	(3,338)		—		—		(55)		(3,393)
Income tax expense (benefit)	—		11		—		440		451

Healthpeak's share of unconsolidated joint venture NOI	$	2,063	$	903	$	—	$	11,212	$	14,178

For the six months ended June 30, 2022


	Lab		Outpatient Medical		CCRC		Other		Total
Equity income (loss) from unconsolidated joint ventures	$	1,114	$	411	$	539	$	402	$	2,466
Depreciation and amortization	1,537		447		—		8,362		10,346
General and administrative	—		25		—		77		102
Loss (gain) on sales of real estate, net	—		(2)		(58)		—		(60)
Other expense (income), net	(919)		—		(148)		(593)		(1,660)
Income tax expense (benefit)	—		12		—		122		134

Healthpeak's share of unconsolidated joint venture NOI	$	1,732	$	893	$	333	$	8,370	11,328


			27


Reconciliations


Noncontrolling Interests' Share of Consolidated Joint Venture NOI

In thousands


Total Portfolio	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Income (loss) from continuing operations attributable to noncontrolling interest	$	3,955	$	4,016	$	4,274	$	15,555	$	4,300
Gain on sales of real estate, net	—		—		—		(11,546)		—
Depreciation and amortization	4,710		4,696		4,657		4,691		4,593
Other expense (income), net	(26)		82		69		113		40
Dividends attributable to noncontrolling interest	(2,379)		(2,350)		(2,379)		(2,342)		(2,561)
Noncontrolling interests' share of consolidated joint venture NOI	$	6,260	$	6,444	$	6,621	$	6,471	$	6,372


Lab	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Income (loss) from continuing operations attributable to noncontrolling interest	$	946	$	922	$	1,000	$	1,483	$	1,078
Gain on sales of real estate, net	—		—		—		(413)		—
Depreciation and amortization	25		13		31		37		52
Other expense (income), net	2		—		(35)		(103)		(84)
Dividends attributable to noncontrolling interest	(930)		(901)		(930)		(901)		(930)
Noncontrolling interests' share of consolidated joint venture NOI	$	43	$	34	$	66	$	103	$	116


Outpatient Medical	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Income (loss) from continuing operations attributable to noncontrolling interest	$	3,009	$	3,094	$	3,274	$	14,072	$	3,032
Gain on sales of real estate, net	—		—		—		(11,133)		—
Depreciation and amortization	4,685		4,683		4,626		4,654		4,541
Other expense (income), net	(28)		82		104		216		124
Dividends attributable to noncontrolling interest	(1,449)		(1,449)		(1,449)		(1,441)		(1,441)
Noncontrolling interests' share of consolidated joint venture NOI	$	6,217	$	6,410	$	6,555	$	6,368	$	6,256


Corporate Non-segment	Three Months Ended
	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023
Income (loss) from continuing operations attributable to noncontrolling interest	$	—	$	—	$	—	$	—	$	190



Dividends attributable to noncontrolling interest	—		—		—		—		(190)
Noncontrolling interests' share of consolidated joint venture NOI	$	—	$	—	$	—	$	—	$	—


			28


Reconciliations


Noncontrolling Interests' Share of Consolidated Joint Venture NOI

In thousands

For the six months ended June 30, 2023


	Lab		Outpatient Medical		Corporate Non-segment		Total
Income (loss) from continuing operations attributable to noncontrolling interest	$	2,561	$	17,104	$	190	$	19,855
Gain on sales of real estate, net	(413)		(11,133)		—		(11,546)
Depreciation and amortization	89		9,195		—		9,284
Other expense (income), net	(187)		340		—		153
Dividends attributable to noncontrolling interest	(1,831)		(2,882)		(190)		(4,903)
Noncontrolling interests' share of consolidated joint venture NOI	$	219	$	12,624	$	—	$	12,843

For the six months ended June 30, 2022


	Lab		Outpatient Medical		Corporate Non-segment		Total
Income (loss) from continuing operations attributable to noncontrolling interest	$	1,862	$	5,823	$	—	$	7,685
Gain on sales of real estate, net	—		(12)		—		(12)
Depreciation and amortization	46		9,358		—		9,404
Other expense (income), net	5		164		—		169
Dividends attributable to noncontrolling interest	(1,832)		(2,898)		—		(4,730)
Noncontrolling interests' share of consolidated joint venture NOI	$	81	$	12,435	$	—	$	12,516


			29


Reconciliations


REVPOR CCRC(1)

In thousands, except per month data



	Three Months Ended
REVPOR CCRC	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023



Portfolio Cash Real Estate Revenues(2)	$	125,569	$	122,146	$	125,920	$	127,221	$	130,231
Other adjustments to REVPOR CCRC(3)	—		—		(47)		—		(184)
REVPOR CCRC revenues	$	125,569	$	122,146	$	125,873	$	127,221	$	130,046

Average occupied units/month	5,952		5,894		5,918		5,908		5,925
REVPOR CCRC per month(4)	$	7,032	$	6,908	$	7,090	$	7,179	$	7,317


	Three Months Ended
REVPOR CCRC excluding NREF Amortization	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023



REVPOR CCRC revenues	$	125,569	$	122,146	$	125,873	$	127,221	$	130,046
NREF Amortization(5)	(19,444)		(19,706)		(21,260)		(19,887)		(20,287)

REVPOR CCRC revenues excluding NREF Amortization	$	106,125	$	102,440	$	104,612	$	107,334	$	109,759

Average occupied units/month	5,952		5,894		5,918		5,908		5,925
REVPOR CCRC excluding NREF Amortization per month(4)	$	5,943	$	5,794	$	5,892	$	6,056	$	6,175



	Three Months Ended
SS REVPOR CCRC	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023



SS REVPOR CCRC revenues(6)	$	125,360	$	122,143	$	125,873	$	127,084	$	129,999

SS average occupied units/month	5,952		5,894		5,918		5,908		5,925
SS REVPOR CCRC per month(4)	$	7,020	$	6,908	$	7,090	$	7,171	$	7,314


	Three Months Ended
SS REVPOR CCRC excluding NREF Amortization	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023



SS REVPOR CCRC revenues(6)	$	125,360	$	122,143	$	125,873	$	127,084	$	129,999
NREF Amortization	(19,444)		(19,706)		(21,260)		(19,887)		(20,287)

SS REVPOR CCRC revenues excluding NREF Amortization	$	105,916	$	102,436	$	104,612	$	107,197	$	109,712

SS Average occupied units/month	5,952		5,894		5,918		5,908		5,925
SS REVPOR CCRC excluding NREF Amortization per month(4)	$	5,931	$	5,794	$	5,892	$	6,049	$	6,173

_____________________________________

(1)May not foot due to rounding.

(2)See pages 12 and 13 of this document for a reconciliation of Portfolio Cash Real Estate Revenues.

(3)Includes revenue from facilities that are held for sale or sold, facilities in redevelopment or recently completed redevelopments that are not yet stabilized.

(4)Represents the quarter REVPOR CCRC divided by a factor of three.

(5)NREF amortization excludes a recently completed redevelopment that is not yet stabilized as it is already excluded from REVPOR CCRC revenues.

(6)See pages 12 and 13 of this document for a reconciliation of Portfolio Cash Real Estate Revenues - SS.


			30


Reconciliations


REVPOR(1)

In thousands, except per month data


	Three Months Ended
REVPOR	June 30, 2022		September 30, 2022		December 31, 2022		March 31, 2023		June 30, 2023



Portfolio Cash Real Estate Revenues(2)	$	18,301	$	18,905	$	19,024	$	20,566	$	20,278
Other adjustments to REVPOR(3)	(2,280)		(2,371)		(2,423)		(2,532)		(2,365)
REVPOR revenues	$	16,021	$	16,534	$	16,601	$	18,034	$	17,914

Average occupied units/month	1,261		1,289		1,302		1,297		1,303
REVPOR per month(4)	$	4,234	$	4,276	$	4,250	$	4,633	$	4,584

______________________________________

(1)May not foot due to rounding.

(2)See pages 12 and 13 of this document for a reconciliation of Portfolio Cash Real Estate Revenues.

(3)Includes revenue for assets in redevelopment or recently completed redevelopments that are not yet stabilized.

(4)Represents the quarter REVPOR divided by a factor of three.


			31


Reconciliations


Discontinued Operations Reconciliation

The results of discontinued operations during the three and six months ended June 30, 2023 and 2022 are presented below and are included within the Income (loss) from discontinued operations line of the Consolidated Statements of Operations in the accompanying Earnings Release and Supplemental Report. In order to facilitate reconciliation of amounts through this Discussion and Reconciliation of Non-GAAP Financial Measures and the accompanying Earnings Release and Supplemental Report, detailed financial information for discontinued operations for the three and six months ended June 30, 2023 and 2022 is presented below (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:

Resident fees and services	$	—	$	2,825	—		5,480

Total revenues	—		2,825		—		5,480
Costs and expenses:


Operating	—		2,442		—		5,116


Total costs and expenses	—		2,442		—		5,116
Other income (expense):
Gain (loss) on sales of real estate, net	—		2,563		—		2,492
Other income (expense), net	—		16		—		19
Total other income (expense), net	—		2,579		—		2,511
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures	—		2,962		—		2,875
Income tax benefit (expense)	—		30		—		370
Equity income (loss) from unconsolidated joint ventures	—		—		—		64

Income (loss) from discontinued operations	$	—	$	2,992	$	—	$	3,309


			32


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	PEAK	New York Stock Exchange


No.						Description

99.1						Press Release dated July 27, 2023.

99.2						June 30, 2023, Supplemental Report.

99.3						June 30, 2023, Discussion and Reconciliation of Non-GAAP Financial Measures.

104						Cover Page Interactive Data File (embedded within the inline XBRL document and contained in Exhibit 101).


Date: July 27, 2023
	Healthpeak Properties, Inc.



	By:	/s/ Peter A. Scott
		Peter A. Scott
		Chief Financial Officer