Published: 2023-02-07 00:00:00 ET

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Exhibit 99.3

 

  

 

 

Discussion and

Reconciliation of Non-

GAAP Financial Measures

 

December 31, 2022

 

 

 

 

 

(Unaudited)

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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) amortization of stock-based compensation, (ii) amortization of deferred financing costs, net, (iii) straight-line rents, (iv) deferred income taxes, and (v) other AFFO adjustments, which include: (a) amortization of acquired market lease intangibles, net, (b) non-cash interest related to DFLs and lease incentive amortization (reduction of straight-line rents), (c) actuarial reserves for insurance claims that have been incurred but not reported, and (d) 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 the Company’s 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.

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Definitions

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 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.

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Definitions

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), foreign currency remeasurement losses (gains), 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 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.

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Definitions

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 medical office and life science properties, as well as CCRC facilities. We generally recover all or a portion of our leased medical office and life science 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 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.

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Definitions

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 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.

REVPOR Other The 3-month average Cash Real Estate Revenues per occupied unit for the most recent period available. REVPOR Other 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 Other 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.

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 Adjusted NOI 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) life science; (ii) medical office; (iii) continuing care retirement community (“CCRC”), and (iv) other non-reportable segment.

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
In thousands, except per share data

Funds From Operations

			Three Months Ended December 31,												Year Ended December 31,
			2022						2021						2022						2021
Net income (loss) applicable to common shares			$	6,388					$	28,493					$	497,792					$	502,271
Real estate related depreciation and amortization			179,157						178,114						710,569						684,286
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures			8,642						5,041						27,691						17,085
Noncontrolling interests’ share of real estate related depreciation and amortization			(4,709)						(4,869)						(19,201)						(19,367)
Loss (gain) on sales of depreciable real estate, net(1)			986						(6,780)						(10,422)						(605,311)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures			45						197						134						(6,737)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net			—						(73)						12						5,555
Loss (gain) upon change of control, net(2)			—						—						(311,438)						(1,042)
Taxes associated with real estate dispositions			—						—						29						2,666
Impairments (recoveries) of depreciable real estate, net			—						19,625						—						25,320
Nareit FFO applicable to common shares			190,509						219,748						895,166						604,726
Distributions on dilutive convertible units and other			1,649						2,353						9,407						6,162
Diluted Nareit FFO applicable to common shares			$	192,158					$	222,101					$	904,573					$	610,888
Weighted average shares outstanding - diluted Nareit FFO			543,879						546,829						546,462						544,742
Impact of adjustments to Nareit FFO:
Transaction-related items			$	3,215					$	406					$	4,788					$	7,044
Other impairments (recoveries) and other losses (gains), net(3)			9,702						(923)						3,829						24,238
Restructuring and severance-related charges(4)			32,749						1,147						32,749						3,610
Loss (gain) on debt extinguishments			—						—						—						225,824
Casualty-related charges (recoveries), net(5)			298						—						4,401						5,203
Total adjustments			45,964						630						45,767						265,919
FFO as Adjusted applicable to common shares			236,473						220,378						940,933						870,645
Distributions on dilutive convertible units and other			2,271						2,352						9,326						8,577
Diluted FFO as Adjusted applicable to common shares			$	238,744					$	222,730					$	950,259					$	879,222
Weighted average shares outstanding - diluted FFO as Adjusted			545,704						546,829						546,462						546,567
FFO as Adjusted applicable to common shares			$	236,473					$	220,378					$	940,933					$	870,645
Stock-based compensation amortization expense			1,903						4,307						16,537						18,202
Amortization of deferred financing costs			2,812						2,539						10,881						9,216
Straight-line rents			(12,346)						(7,561)						(49,183)						(31,188)
AFFO capital expenditures			(33,407)						(39,368)						(108,510)						(111,480)
Deferred income taxes			(355)						(1,776)						(4,096)						(8,015)
Other AFFO adjustments			(2,315)						(4,228)						(22,860)						(19,510)
AFFO applicable to common shares			192,765						174,291						783,702						727,870
Distributions on dilutive convertible units and other			1,649						1,650						6,594						6,164
Diluted AFFO applicable to common shares			$	194,414					$	175,941					$	790,296					$	734,034
Weighted average shares outstanding - diluted AFFO			543,879						545,004						544,637						544,742

			7

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Reconciliations
In thousands, except per share data

Adjusted Funds From Operations

			Three Months Ended December 31,												Year Ended December 31,
			2022						2021						2022						2021
Diluted earnings per common share			$	0.01					$	0.05					$	0.92					$	0.93
Depreciation and amortization			0.34						0.33						1.33						1.25
Loss (gain) on sales of depreciable real estate, net			0.00						(0.01)						(0.02)						(1.11)
Loss (gain) upon change of control, net(2)			—						—						(0.57)						0.00
Taxes associated with real estate dispositions			—						—						0.00						0.00
Impairments (recoveries) of depreciable real estate, net			—						0.04						—						0.05
Diluted Nareit FFO per common share			$	0.35					$	0.41					$	1.66					$	1.12
Transaction-related items			0.01						0.00						0.01						0.01
Other impairments (recoveries) and other losses (gains), net(3)			0.02						0.00						0.00						0.04
Restructuring and severance-related charges(4)			0.06						0.00						0.06						0.01
Loss (gain) on debt extinguishments			—						—						—						0.42
Casualty-related charges (recoveries), net(5)			0.00						—						0.01						0.01
Diluted FFO as Adjusted per common share			$	0.44					$	0.41					$	1.74					$	1.61
Stock-based compensation amortization expense			0.00						0.01						0.03						0.03
Amortization of deferred financing costs			0.01						0.00						0.02						0.02
Straight-line rents			(0.02)						(0.02)						(0.09)						(0.06)
AFFO capital expenditures			(0.06)						(0.07)						(0.20)						(0.20)
Deferred income taxes			0.00						0.00						(0.01)						(0.01)
Other AFFO adjustments			(0.01)						(0.01)						(0.04)						(0.04)
Diluted AFFO per common share			$	0.36					$	0.32					$	1.45					$	1.35

______________________________________

(1)This amount can be reconciled by combining the balances from the corresponding line of the Consolidated Statements of Operations on page 9 of the Earnings Release and Supplemental Report and Discontinued Operations Reconciliation on page 36 of this document for the three and twelve months ended December 31, 2022.

(2)The year ended December 31, 2022 includes a gain upon change of control related to the sale of a 30% interest to a sovereign wealth fund and deconsolidation of seven previously consolidated life science assets in South San Francisco, California. The gain upon change of control is included in other income (expense), net in the Consolidated Statements of Operations.

(3)The three months and year ended December 31, 2022 includes $7 million of charges incurred in connection with the downsizing of the Company’s corporate headquarters in Denver, Colorado, which are included in general and administrative expenses in the Consolidated Statements of Operations. The year ended December 31, 2022 also includes the following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) $14 million of expenses incurred for tenant relocation and other costs associated with the demolition of an MOB and (ii) a $23 million gain on sale of a hospital under a direct financing lease. The year ended December 31, 2021 includes the following: (i) a $29 million goodwill impairment charge in connection with our senior housing triple-net and SHOP asset sales, which is reported in income (loss) from discontinued operations in the Consolidated Statements of Operations, and (ii) $6 million of accelerated recognition of a mark-to-market discount, less loan fees, resulting from prepayments on loans receivable, which is included in interest income in the Consolidated Statements of Operations. The three months and years ended December 31, 2022 and 2021 also include reserves for loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.

(4)The three months and year ended December 31, 2022 includes $32 million of severance-related charges associated with the departures of our former Chief Executive Officer and former Chief Legal Officer and General Counsel in the fourth quarter of 2022. These expenses are included in general and administrative expenses in the Consolidated Statements of Operations.

(5)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.

			8

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Reconciliations
Per share data

Projected Future Operations(1)

			Full Year 2023
			Low						High
Diluted earnings per common share			$	0.52					$	0.58
Real estate related depreciation and amortization			1.28						1.28
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 real estate, net			(0.11)						(0.11)
Diluted Nareit FFO per common share			$	1.70					$	1.76
Diluted FFO as Adjusted per common share			$	1.70					$	1.76
Stock-based compensation amortization expense			0.03						0.03
Amortization of deferred financing costs			0.02						0.02
Straight-line rents			(0.08)						(0.08)
Amortization of above/(below) market rents			(0.05)						(0.05)
AFFO capital expenditures			(0.19)						(0.19)
Other AFFO adjustments			0.02						0.02
Diluted AFFO per common share			$	1.45					$	1.51

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of February 7, 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 February 7, 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.

			9

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Reconciliations
In millions

Projected NOI(1)

For the projected year 2023 (low)

						Life Science						Medical Office						CCRC						Other						Corporate Adjustments						Total
Net income (loss)						$	411					$	197					$	(37)					$	22					$	(291)					$	301
Other income, costs, and expenses excluded from NOI(2)						235						261						137						(8)						284						909
NOI(3)						$	645					$	457					$	100					$	14					$	(7)					$	1,210
Non-SS NOI						(153)						(36)						2						(14)						7						(194)
SS NOI						$	492					$	421					$	102					$	—					$	—					$	1,015
Non-cash adjustments to SS NOI(4)						(26)						(12)						1						—						—						(37)
SS Cash (Adjusted) NOI						$	466					$	410					$	103					$	—					$	—					$	978
Non-SS cash NOI						131						33						(1)						14						(1)						176
Cash (Adjusted) NOI(5)						$	597					$	442					$	102					$	14					$	(1)					$	1,155

For the projected year 2023 (high)

						Life Science						Medical Office						CCRC						Other						Corporate Adjustments						Total
Net income (loss)						$	420					$	201					$	(32)					$	32					$	(280)					$	338
Other income, costs, and expenses excluded from NOI(2)						235						261						137						(8)						284						911
NOI(3)						$	655					$	462					$	106					$	24					$	4					$	1,250
Non-SS NOI						(155)						(36)						1						(24)						(4)						(218)
SS NOI						$	500					$	425					$	107					$	—					$	—					$	1,030
Non-cash adjustments to SS NOI(4)						(27)						(12)						1						—						—						(38)
SS Cash (Adjusted) NOI						$	473					$	414					$	108					$	—					$	—					$	993
Non-SS cash NOI						134						33						(1)						24						1						191
Cash (Adjusted) NOI(5)						$	606					$	447					$	107					$	24					$	1					$	1,185

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of February 7, 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 February 7, 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. May not foot, cross foot, or recalculate due to rounding and adjustments made to SS high and low ranges reported by segments.

(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 $1.230 billion.

(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 $1.170 billion.

			10

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Reconciliations
In millions

NOI(1)

For the year ended December 31, 2022

						Life Science						Medical Office						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						(117)						(33)						(7)						(17)						—						(174)
SS NOI						$	498					$	415					$	96					$	—					$	—					$	1,009
Non-cash adjustments to SS NOI(3)						(46)						(14)						2						—						—						(57)
SS Cash (Adjusted) NOI						$	452					$	402					$	98					$	—					$	—					$	952
Non-SS cash NOI						100						31						7						17						—						155
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.

(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. The year ended December 31, 2022 includes a $311 million gain upon change in control within the Life Science segment.

(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.

			11

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Reconciliations
In thousands

Enterprise Gross Assets

																																													December 31, 2022
Consolidated total assets(1)																																													$	15,771,229
Investments in and advances to unconsolidated JVs																																													(706,677)
Accumulated depreciation and amortization(2)																																													3,564,082
Consolidated Gross Assets																																													$	18,628,634
Healthpeak's share of unconsolidated JV gross assets																																													903,441
Enterprise Gross Assets																																													$	19,532,075

______________________________________

(1)Consolidated total assets represents total assets on the Consolidated Balance Sheet as of December 31, 2022 presented on page 8 within the Earnings Release and Supplemental Report for the quarter ended December 31, 2022.

(2)Accumulated depreciation and amortization includes accumulated depreciation for real estate and accumulated amortization for real estate related intangible assets.

Portfolio Investment

			December 31, 2022
			Life Science						Medical Office						CCRC						Other						Total
Net real estate			$	7,241,287					$	4,126,962					$	1,655,234					$	—					$	13,023,483
Intangible assets, net			95,119						141,861						181,081						—						418,061
Accumulated depreciation and amortization(1)			1,320,437						1,783,935						436,886						—						3,541,258
Assets held for sale, gross			68,799						—						—						—						68,799
Healthpeak's share of unconsolidated JV gross assets			376,732						19,709						—						464,068						860,509
Fully depreciated real estate and intangibles assets			455,318						599,402						16,620						—						1,071,340
Leasing commissions and other			83,665						65,392						—						—						149,057
Debt investments			—						—						—						371,731						371,731
Land held for development			(626,668)						(4,676)						—						—						(631,344)
Real estate intangible liabilities			(143,254)						(94,210)						—						—						(237,464)
Fully depreciated intangible liabilities			(49,841)						(42,655)						—						—						(92,496)
Noncontrolling interests' share of consolidated JVs real estate and related intangibles			(5,316)						(388,878)						—						—						(394,194)
Portfolio Investment			$	8,816,278					$	6,206,842					$	2,289,821					$	835,799					$	18,148,740

______________________________________

(1)Accumulated depreciation and amortization includes accumulated depreciation for real estate and accumulated amortization for real estate related intangible assets.

			12

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Reconciliations
In thousands

Revenues

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Life Science			$	184,170					$	194,055					$	207,771					$	207,795					$	207,952
Medical Office			174,264						177,263						179,308						184,506						184,293
CCRC			118,867						121,560						125,360						122,142						125,873
Other			5,904						5,494						5,493						5,963						6,350
Total revenues			$	483,205					$	498,372					$	517,932					$	520,406					$	524,468
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						6,552						209						4						—
Other			—						—						—						—						—
Government grant income			$	—					$	6,552					$	209					$	4					$	—
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						—						—						—						—
Other			(5,904)						(5,494)						(5,493)						(5,963)						(6,350)
Less: Interest income			$	(5,904)					$	(5,494)					$	(5,493)					$	(5,963)					$	(6,350)
Life Science			1,487						1,431						1,267						2,938						4,285
Medical Office			720						732						761						756						750
CCRC			—						—						—						—						—
Other			17,233						18,045						18,215						18,656						18,969
Healthpeak's share of unconsolidated JVs real estate revenues			$	19,440					$	20,208					$	20,243					$	22,350					$	24,004
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						333						—						—						47
Other			739						315						—						183						—
Healthpeak's share of unconsolidated JVs government grant income			$	739					$	648					$	—					$	183					$	47
Life Science			(70)						(57)						(62)						(55)						(94)
Medical Office			(8,658)						(8,820)						(8,943)						(8,968)						(8,986)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Noncontrolling interests' share of consolidated JVs real estate revenues			$	(8,728)					$	(8,877)					$	(9,005)					$	(9,023)					$	(9,080)
Life Science			185,588						195,429						208,976						210,678						212,143
Medical Office			166,325						169,175						171,126						176,294						176,057
CCRC			118,868						128,445						125,569						122,146						125,920
Other			17,972						18,360						18,215						18,839						18,969
Portfolio Real Estate Revenues			$	488,753					$	511,409					$	523,886					$	527,957					$	533,089
Life Science			(11,402)						(14,272)						(21,653)						(15,231)						(11,786)
Medical Office			(4,306)						(4,180)						(3,643)						(4,780)						(5,631)
CCRC			—						—						—						—						—
Other			(4)						23						86						66						55
Non-cash adjustments to Portfolio Real Estate Revenues			$	(15,712)					$	(18,429)					$	(25,210)					$	(19,945)					$	(17,362)

Continued

			13

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Reconciliations
In thousands

Revenues

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Life Science			174,186						181,157						187,323						195,447						200,357
Medical Office			162,019						164,995						167,483						171,514						170,426
CCRC			118,868						128,445						125,569						122,146						125,920
Other			17,968						18,383						18,301						18,905						19,024
Portfolio Cash Real Estate Revenues			$	473,041					$	492,980					$	498,676					$	508,012					$	515,727
Life Science			11,402						14,272						21,653						15,231						11,786
Medical Office			4,306						4,180						3,643						4,780						5,631
CCRC			—						—						—						—						—
Other			4						(23)						(86)						(66)						(55)
Non-cash adjustments to Portfolio Real Estate Revenues			$	15,712					$	18,429					$	25,210					$	19,945					$	17,362
Life Science			(24,968)						(29,013)						(37,979)						(34,791)						(36,501)
Medical Office			(17,794)						(17,894)						(19,135)						(20,368)						(20,468)
CCRC			—						(333)						—						—						(47)
Other			(17,972)						(18,360)						(18,215)						(18,839)						(18,969)
Non-SS Portfolio Real Estate Revenues			$	(60,734)					$	(65,600)					$	(75,329)					$	(73,998)					$	(75,985)
Life Science			160,620						166,416						170,997						175,887						175,642
Medical Office			148,531						151,281						151,991						155,926						155,589
CCRC			118,868						128,112						125,569						122,146						125,873
Other			—						—						—						—						—
Portfolio Real Estate Revenue - SS(1)			$	428,019					$	445,809					$	448,557					$	453,959					$	457,104
Life Science			(9,922)						(11,157)						(12,240)						(11,778)						(10,301)
Medical Office			(4,571)						(3,952)						(2,564)						(3,310)						(4,223)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Non-cash adjustment to SS Portfolio Real Estate Revenues			$	(14,493)					$	(15,109)					$	(14,804)					$	(15,088)					$	(14,524)
Life Science			150,698						155,259						158,757						164,109						165,341
Medical Office			143,960						147,329						149,427						152,616						151,366
CCRC			118,868						128,112						125,569						122,146						125,873
Other			—						—						—						—						—
Portfolio Cash Real Estate Revenue - SS(1)			$	413,526					$	430,700					$	433,753					$	438,871					$	442,580

			14

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Reconciliations
In thousands

Operating Expenses

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Life Science			$	43,936					$	48,189					$	49,446					$	55,162					$	56,346
Medical Office			59,184						61,170						63,321						64,782						64,036
CCRC			96,127						97,888						102,277						100,264						100,110
Other			—						—						—						—						—
Operating expenses			$	199,247					$	207,247					$	215,044					$	220,208					$	220,492
Life Science			520						483						483						777						1,140
Medical Office			258						299						301						313						265
CCRC			(346)						—						—						—						—
Other			13,370						14,055						14,150						14,599						14,828
Healthpeak's share of unconsolidated JVs operating expenses			$	13,802					$	14,837					$	14,934					$	15,689					$	16,233
Life Science			(21)						(19)						(19)						(21)						(28)
Medical Office			(2,356)						(2,602)						(2,726)						(2,558)						(2,431)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Noncontrolling interests' share of consolidated JVs operating expenses			$	(2,377)					$	(2,621)					$	(2,745)					$	(2,579)					$	(2,459)
Life Science			44,435						48,653						49,910						55,918						57,458
Medical Office			57,086						58,867						60,896						62,537						61,870
CCRC			95,781						97,888						102,277						100,264						100,110
Other			13,370						14,055						14,150						14,599						14,828
Portfolio Operating Expenses			$	210,672					$	219,463					$	227,233					$	233,318					$	234,266
Life Science			(9)						(160)						(9)						(10)						(8)
Medical Office			(740)						(633)						(694)						(701)						(692)
CCRC			(1,270)						—						—						—						(2,299)
Other			27						31						32						(10)						8
Non-cash adjustments to Portfolio Operating Expenses			$	(1,992)					$	(762)					$	(671)					$	(721)					$	(2,991)
Life Science			44,426						48,493						49,901						55,908						57,450
Medical Office			56,346						58,234						60,202						61,836						61,178
CCRC			94,511						97,888						102,277						100,264						97,811
Other			13,397						14,086						14,182						14,589						14,836
Portfolio Cash Operating Expenses			$	208,680					$	218,701					$	226,562					$	232,597					$	231,275
Life Science			9						160						9						10						8
Medical Office			740						633						694						701						692
CCRC			1,270						—						—						—						2,299
Other			(27)						(31)						(32)						10						(8)
Non-cash adjustments to Portfolio Operating Expenses			$	1,992					$	762					$	671					$	721					$	2,991
Life Science			(6,400)						(8,007)						(8,813)						(9,861)						(11,190)
Medical Office			(6,655)						(8,197)						(9,430)						(9,459)						(9,207)
CCRC			(62)						(490)						(443)						(350)						(341)
Other			(13,370)						(14,055)						(14,150)						(14,599)						(14,828)
Non-SS Portfolio Operating Expenses			$	(26,487)					$	(30,749)					$	(32,836)					$	(34,269)					$	(35,566)

Continued

			15

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Reconciliations
In thousands

Operating Expenses

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Life Science			38,035						40,646						41,097						46,057						46,268
Medical Office			50,431						50,670						51,466						53,078						52,663
CCRC			95,719						97,398						101,834						99,914						99,769
Other			—						—						—						—						—
Portfolio Operating Expenses - SS(1)			$	184,185					$	188,714					$	194,397					$	199,049					$	198,700
Life Science			(9)						(159)						(10)						(9)						(9)
Medical Office			(694)						(612)						(646)						(641)						(638)
CCRC			(1,542)						—						—						—						(2,300)
Other			—						—						—						—						—
Non-cash adjustment to SS Portfolio Operating Expenses			$	(2,245)					$	(771)					$	(656)					$	(650)					$	(2,947)
Life Science			38,026						40,487						41,087						46,048						46,259
Medical Office			49,737						50,058						50,820						52,437						52,025
CCRC			94,177						97,398						101,834						99,914						97,469
Other			—						—						—						—						—
Portfolio Cash Operating Expenses - SS(1)			$	181,940					$	187,943					$	193,741					$	198,399					$	195,753

			16

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Reconciliations
In thousands

Revenues

Operating Expenses

Year Ended December 31, 2022												Year Ended December 31, 2022
Life Science			$	817,573								Life Science			$	209,143
Medical Office			725,370									Medical Office			253,309
CCRC			494,935									CCRC			400,539
Other			23,300									Other			—
Total revenues			$	2,061,178								Operating expenses			$	862,991
Life Science			—									Life Science			2,883
Medical Office			—									Medical Office			1,178
CCRC			6,765									CCRC			—
Other			—									Other			57,632
Government grant income			$	6,765								Healthpeak's share of unconsolidated JVs operating expenses			$	61,693
Life Science			—									Life Science			(87)
Medical Office			—									Medical Office			(10,317)
CCRC			—									CCRC			—
Other			(23,300)									Other			—
Less: Interest income			$	(23,300)								Noncontrolling interests' share of consolidated JVs operating expenses			$	(10,404)
Life Science			9,921									Life Science			211,939
Medical Office			2,999									Medical Office			244,170
CCRC			—									CCRC			400,539
Other			73,885									Other			57,632
Healthpeak's share of unconsolidated JVs real estate revenues			$	86,805								Portfolio Operating Expenses			$	914,280
Life Science			—									Life Science			(187)
Medical Office			—									Medical Office			(2,720)
CCRC			380									CCRC			(2,300)
Other			498									Other			61
Healthpeak's share of unconsolidated JVs government grant income			$	878								Non-cash adjustments to Portfolio Operating Expenses			$	(5,146)
Life Science			(268)									Life Science			211,752
Medical Office			(35,717)									Medical Office			241,450
CCRC			—									CCRC			398,239
Other			—									Other			57,693
Noncontrolling interests' share of consolidated JVs real estate revenues			$	(35,985)								Portfolio Cash Operating Expenses			$	909,134
Life Science			827,226									Life Science			$	187
Medical Office			692,652									Medical Office			2,720
CCRC			502,080									CCRC			2,300
Other			74,383									Other			(61)
Portfolio Real Estate Revenues			$	2,096,341								Non-cash Portfolio Cash Operating Expenses			$	5,146
Life Science			(62,941)									Life Science			(59,530)
Medical Office			(18,233)									Medical Office			(56,716)
CCRC			—									CCRC			(1,624)
Other			230									Other			(57,632)
Non-cash adjustments to Portfolio Real Estate Revenues			$	(80,944)								Non-SS Portfolio Operating Expenses			$	(175,502)

			17

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Reconciliations
In thousands

Year Ended December 31, 2022												Year Ended December 31, 2022
Life Science			764,285									Life Science			152,409
Medical Office			674,419									Medical Office			187,454
CCRC			502,080									CCRC			398,915
Other			74,613									Other			—
Portfolio Cash Real Estate Revenues			$	2,015,397								Portfolio Operating Expenses - SS(1)			$	738,778
Life Science			62,941									Life Science			(187)
Medical Office			18,233									Medical Office			(2,245)
CCRC			—									CCRC			(2,300)
Other			(230)									Other			—
Non-cash adjustments to Portfolio Real Estate Revenues			$	80,944								Non-cash adjustment to SS Portfolio Operating Expenses			$	(4,732)
Life Science			(214,109)									Life Science			152,222
Medical Office			(136,199)									Medical Office			185,209
CCRC			(380)									CCRC			396,615
Other			(74,383)									Other			—
Non-SS Portfolio Real Estate Revenue			$	(425,071)								Portfolio Cash Operating Expenses - SS(1)			$	734,046
Life Science			$	613,117
Medical Office			556,453
CCRC			501,700
Other			—
Portfolio Real Estate Revenue - SS(1)			$	1,671,270
Life Science			(37,024)
Medical Office			(10,213)
CCRC			—
Other			—
Non-cash adjustment to SS Portfolio Real Estate Revenues			$	(47,237)
Life Science			576,093
Medical Office			546,240
CCRC			501,700
Other			—
Portfolio Cash Real Estate Revenue - SS(1)			$	1,624,033

______________________________________

(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 twelve months ended December 31, 2022.

			18

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Reconciliations
In thousands

EBITDAre and Adjusted EBITDAre

			Three Months Ended December 31, 2022						Twelve Months Ended December 31, 2022
Net income (loss)			$	10,802					$	516,424
Interest expense			49,413						172,944
Income tax expense (benefit)(1)			(661)						(4,695)
Depreciation and amortization			179,157						710,569
Other depreciation and amortization			1,286						5,255
Loss (gain) on sales of real estate(1)			986						(10,422)
Loss (gain) upon change of control			—						(311,438)
Share of unconsolidated JV:
Interest expense			241						(949)
Income tax expense (benefit)			(19)						233
Depreciation and amortization			8,642						27,691
Loss (gain) on sale of real estate from unconsolidated JVs			45						134
EBITDAre			$	249,892					$	1,105,746
Transaction-related items(2)			3,217						4,853
Other impairments (recoveries) and losses (gains)(2)			9,760						4,518
Restructuring and severance-related charges			32,749						32,749
Casualty-related charges (recoveries)(2)			684						5,583
Stock-based compensation amortization expense			1,903						16,537
Impact of transactions closed during the period(3)			449						(3,013)
Adjusted EBITDAre			$	298,654					$	1,166,973

Adjusted Fixed Charge Coverage

			Three Months Ended December 31, 2022						Twelve Months Ended December 31, 2022
Interest expense, including unconsolidated JV interest expense at share			49,654						171,995
Capitalized interest			14,413						41,972
Fixed Charges			$	64,067					$	213,967
Adjusted Fixed Charge Coverage			4.7x						5.5x

  ______________________________________

(1)This amount can be reconciled by combining the balances from the corresponding line of the Consolidated Statements of Operations on page 9 of the Earnings Release and Supplemental Report and Discontinued Operations Reconciliation on page 37 of this document for the three and twelve months ended December 31, 2022.

(2)This amount includes the corresponding line on the Funds From Operations reconciliation on page 7 of this document less the related tax impact included in the adjustment for income tax expense (benefit) above.

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

			19

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Reconciliations
In thousands

Enterprise Debt and Net Debt

			December 31, 2022
Bank line of credit and commercial paper			$	995,606
Term loan			495,957
Senior unsecured notes			4,659,451
Mortgage debt			346,599
Consolidated Debt			$	6,497,613
Share of unconsolidated JV mortgage debt			39,790
Enterprise Debt			$	6,537,403
Cash and cash equivalents			(72,032)
Share of unconsolidated JV cash and cash equivalents			(30,189)
Restricted cash			(54,802)
Share of unconsolidated JV restricted cash			(3,062)
Net Debt			$	6,377,318

Financial Leverage

			December 31, 2022
Enterprise Debt			$	6,537,403
Enterprise Gross Assets			19,532,075
Financial Leverage			33.5%

Secured Debt Ratio

			December 31, 2022
Mortgage debt			$	346,599
Share of unconsolidated JV mortgage debt			39,790
Enterprise Secured Debt			$	386,389
Enterprise Gross Assets			19,532,075
Secured Debt Ratio			2.0%

Net Debt to Adjusted EBITDAre

			Three Months Ended December 31, 2022						Twelve Months Ended December 31, 2022
Net Debt			$	6,377,318					$	6,377,318
Annualized Adjusted EBITDAre(1)			1,194,616						1,166,973
Net Debt to Adjusted EBITDAre			5.34x						5.47x

  ______________________________________

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

			20

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Reconciliations
In thousands

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

Total Portfolio

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Net income (loss)			$	32,576					$	75,343					$	72,293					$	357,986					$	10,802
Loss (income) from discontinued operations			(3,633)						(317)						(2,992)						1,298						(873)
Income (loss) from continuing operations			$	28,943					$	75,026					$	69,301					$	359,284					$	9,929
Interest income			(5,904)						(5,494)						(5,493)						(5,963)						(6,350)
Interest expense			36,551						37,586						41,867						44,078						49,413
Depreciation and amortization			178,114						177,733						180,489						173,190						179,157
General and administrative			26,043						23,831						24,781						24,549						57,872
Transaction costs			424						296						612						728						3,217
Loss (gain) on sales of real estate, net			(717)						(3,856)						(10,340)						4,149						969
Impairments and loan loss reserves (recoveries), net			18,702						132						139						3,407						3,326
Other expense (income), net			(662)						(18,316)						(2,861)						(305,678)						587
Income tax expense (benefit)			(1,857)						777						(718)						(3,834)						(650)
Government grant income			—						6,552						209						4						—
Equity loss (income) from unconsolidated JVs			(1,583)						(2,084)						(382)						325						156
Healthpeak's share of unconsolidated JVs NOI			6,378						6,019						5,309						6,844						7,818
Noncontrolling interests' share of consolidated JVs NOI			(6,351)						(6,256)						(6,260)						(6,444)						(6,621)
Portfolio NOI			$	278,081					$	291,946					$	296,653					$	294,639					$	298,823
Adjustment to Portfolio NOI			(13,719)						(17,666)						(24,539)						(19,224)						(14,371)
Portfolio Cash (Adjusted) NOI			$	264,362					$	274,280					$	272,114					$	275,415					$	284,452
Interest income			5,904						5,494						5,493						5,963						6,350
Portfolio Income			$	270,266					$	279,774					$	277,607					$	281,378					$	290,802
Interest income			(5,904)						(5,494)						(5,493)						(5,963)						(6,350)
Adjustment to Portfolio NOI			13,719						17,666						24,539						19,224						14,371
Non-SS Portfolio NOI			(34,249)						(34,851)						(42,493)						(39,729)						(40,419)
SS Portfolio NOI			$	243,832					$	257,095					$	254,160					$	254,910					$	258,404
Non-cash adjustment to SS Portfolio NOI			(12,246)						(14,338)						(14,149)						(14,438)						(11,577)
SS Portfolio Cash (Adjusted) NOI			$	231,586					$	242,757					$	240,011					$	240,472					$	246,827

			21

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Reconciliations
In thousands

Life Science

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Net income (loss)			$	62,419					$	72,249					$	78,794					$	393,487					$	75,575
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	62,419					$	72,249					$	78,794					$	393,487					$	75,575
Interest expense			36						—						—						—						—
Depreciation and amortization			78,237						78,138						79,673						70,141						74,697
Transaction costs			13						292						35						40						20
Loss (gain) on sales of real estate, net			—						(3,856)						—						—						112
Other expense (income), net			(1)						9						(29)						(311,912)						(7)
Equity loss (income) from unconsolidated JVs			(470)						(966)						(148)						877						1,209
Healthpeak's share of unconsolidated JVs NOI			967						948						784						2,161						3,145
Noncontrolling interests' share of consolidated JVs NOI			(49)						(38)						(43)						(34)						(66)
Portfolio NOI			$	141,152					$	146,776					$	159,066					$	154,760					$	154,685
Adjustment to Portfolio NOI			(11,392)						(14,112)						(21,644)						(15,221)						(11,778)
Portfolio Cash (Adjusted) NOI(1)			$	129,760					$	132,664					$	137,422					$	139,539					$	142,907
Adjustment to Portfolio NOI			11,392						14,112						21,644						15,221						11,778
Non-SS Portfolio NOI			(18,568)						(21,006)						(29,166)						(24,930)						(25,311)
SS Portfolio NOI			$	122,584					$	125,770					$	129,900					$	129,830					$	129,374
Non-cash adjustment to SS Portfolio NOI			(9,912)						(10,998)						(12,231)						(11,769)						(10,292)
SS Portfolio Cash (Adjusted) NOI			$	112,672					$	114,772					$	117,669					$	118,061					$	119,082

Medical Office

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Net income (loss)			$	27,064					$	58,417					$	56,929					$	47,663					$	45,571
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	27,064					$	58,417					$	56,929					$	47,663					$	45,571
Interest expense			852						1,036						1,930						1,964						1,970
Depreciation and amortization			68,232						67,773						68,873						70,917						71,983
Transaction costs			28						4						70						94						1,087
Impairments and loan loss (reserves) recoveries, net			19,625						—						—						—						—
Loss (gain) on sales of real estate, net			(717)						—						(10,340)						(554)						235
Other expense (income), net			241						(10,937)						(1,264)						(154)						(354)
Equity loss (income) from unconsolidated JVs			(245)						(200)						(211)						(206)						(235)
Healthpeak's share of unconsolidated JVs NOI			462						433						460						443						485
Noncontrolling interests' share of consolidated JVs NOI			(6,302)						(6,218)						(6,217)						(6,410)						(6,555)
Portfolio NOI			$	109,240					$	110,308					$	110,230					$	113,757					$	114,187
Adjustment to Portfolio NOI			(3,566)						(3,546)						(2,949)						(4,079)						(4,939)
Portfolio Cash (Adjusted) NOI(1)			$	105,674					$	106,762					$	107,281					$	109,678					$	109,248
Adjustment to Portfolio NOI			3,566						3,546						2,949						4,079						4,939
Non-SS Portfolio NOI			(11,140)						(9,697)						(9,705)						(10,909)						(11,261)
SS Portfolio NOI			$	98,100					$	100,611					$	100,525					$	102,848					$	102,926
Non-cash adjustment to SS Portfolio NOI			(3,877)						(3,340)						(1,918)						(2,669)						(3,585)
SS Portfolio Cash (Adjusted) NOI			$	94,223					$	97,271					$	98,607					$	100,179					$	99,341

			22

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Reconciliations
In thousands

CCRC

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Net income (loss)			$	(11,498)					$	(2,965)					$	(10,170)					$	(19,821)					$	(10,097)
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	(11,498)					$	(2,965)					$	(10,170)					$	(19,821)					$	(10,097)
Interest expense			1,923						1,865						1,876						1,887						1,881
Depreciation and amortization			31,645						31,822						31,943						32,132						32,477
Transaction costs			356						—						64						594						67
Other expense (income), net			314						(6,511)						(630)						7,086						1,435
Government grant income			—						6,552						209						4						—
Equity loss (income) from unconsolidated JVs			—						(539)						—						—						—
Healthpeak's share of unconsolidated JVs NOI			347						333						—						—						47
Portfolio NOI			$	23,087					$	30,557					$	23,292					$	21,882					$	25,810
Adjustment to Portfolio NOI			1,271						—						—						—						2,299
Portfolio Cash (Adjusted) NOI(1)			$	24,358					$	30,557					$	23,292					$	21,882					$	28,109
Adjustment to Portfolio NOI			(1,271)						—						—						—						(2,299)
Non-SS Portfolio NOI			61						157						443						350						294
SS Portfolio NOI			$	23,148					$	30,714					$	23,735					$	22,232					$	26,104
Non-cash adjustment to SS Portfolio NOI			1,543						—						—						—						2,300
SS Portfolio Cash (Adjusted) NOI			$	24,691					$	30,714					$	23,735					$	22,232					$	28,404

Other

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Net income (loss)			$	7,671					$	5,709					$	5,395					$	(1,801)					$	3,221
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	7,671					$	5,709					$	5,395					$	(1,801)					$	3,221
Interest income			(5,904)						(5,494)						(5,493)						(5,963)						(6,350)
Transaction costs			27						—						—						—						—
Impairments and loan loss (reserves) recoveries, net			(923)						132						139						3,407						3,326
Loss (gain) on sales of real estate, net			—						—						—						4,703						622
Other expense (income), net			(3)						32						(18)						—						(1)
Equity loss (income) from unconsolidated JVs			(868)						(379)						(23)						(346)						(818)
Healthpeak's share of unconsolidated JVs NOI			4,602						4,305						4,065						4,240						4,141
Portfolio NOI			$	4,602					$	4,305					$	4,065					$	4,240					$	4,141
Adjustment to Portfolio NOI			(32)						(8)						54						76						47
Portfolio Cash (Adjusted) NOI			$	4,570					$	4,297					$	4,119					$	4,316					$	4,188
Interest income			5,904						5,494						5,493						5,963						6,350
Portfolio Income			$	10,474					$	9,791					$	9,612					$	10,279					$	10,538
Interest income			(5,904)						(5,494)						(5,493)						(5,963)						(6,350)
Adjustment to Portfolio NOI			32						8						(54)						(76)						(47)
Non-SS Portfolio NOI			(4,602)						(4,305)						(4,065)						(4,240)						(4,141)
SS Portfolio NOI			$	—					$	—					$	—					$	—					$	—
SS Portfolio Cash (Adjusted) NOI			$	—					$	—					$	—					$	—					$	—

			23

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Reconciliations
In thousands

Corporate Non-Segment

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Net income (loss)			$	(53,080)					$	(58,067)					$	(58,655)					$	(61,542)					$	(103,468)
Loss (income) from discontinued operations			(3,633)						(317)						(2,992)						1,298						(873)
Income (loss) from continuing operations			$	(56,713)					$	(58,384)					$	(61,647)					$	(60,244)					$	(104,341)
Interest expense			33,740						34,685						38,061						40,227						45,562
General and administrative			26,043						23,831						24,781						24,549						57,872
Transaction costs			—						—						443						—						2,043
Other expense (income), net			(1,213)						(909)						(920)						(698)						(486)
Income tax expense (benefit)			(1,857)						777						(718)						(3,834)						(650)
Portfolio NOI			$	—					$	—					$	—					$	—					$	—

______________________________________

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

			24

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Reconciliations
In thousands

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

For the year ended December 31, 2022

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Net income (loss)						$	620,105					$	208,580					$	(43,053)					$	12,524					$	(281,732)					$	516,424
Loss (income) from discontinued operations						—						—						—						—						(2,884)						(2,884)
Income (loss) from continuing operations						$	620,105					$	208,580					$	(43,053)					$	12,524					$	(284,616)					$	513,540
Interest income						—						—						—						(23,300)						—						(23,300)
Interest expense						—						6,900						7,509						—						158,535						172,944
Depreciation and amortization						302,649						279,546						128,374						—						—						710,569
General and administrative						—						—						—						—						131,033						131,033
Transaction costs						387						1,255						725						—						2,486						4,853
Impairments and loan loss (reserves) recoveries, net						—						—						—						7,004						—						7,004
Loss (gain) on sales of real estate, net						(3,744)						(10,659)						—						5,325						—						(9,078)
Other expense (income), net						(311,939)						(12,709)						1,380						13						(3,013)						(326,268)
Income tax expense (benefit)						—						—						—						—						(4,425)						(4,425)
Government grant income						—						—						6,765						—						—						6,765
Healthpeak's share of unconsolidated joint venture NOI						7,038						1,821						380						16,751						—						25,990
Noncontrolling interests' share of consolidated joint venture NOI						(181)						(25,400)						—						—						—						(25,581)
Equity loss (income) from unconsolidated JVs						972						(852)						(539)						(1,566)						—						(1,985)
Portfolio NOI						$	615,287					$	448,482					$	101,541					$	16,751					$	—					$	1,182,061
Adjustment to NOI						(62,754)						(15,513)						2,300						169						—						(75,798)
Portfolio Cash (Adjusted) NOI						$	552,533					$	432,969					$	103,841					$	16,920					$	—					$	1,106,263
Interest Income						—						—						—						23,300						—						23,300
Portfolio Income						$	552,533					$	432,969					$	103,841					$	40,220					$	—					$	1,129,563
Interest income						—						—						—						(23,300)												(23,300)
Adjustment to NOI						62,754						15,513						(2,300)						(169)						—						75,798
Non-SS Portfolio NOI						(154,579)						(79,484)						1,244						(16,751)						—						(249,570)
SS Portfolio NOI(1)						$	460,708					$	368,998					$	102,785					$	—					$	—					$	932,491
Non-cash adjustment to SS Portfolio NOI						(36,837)						(7,967)						2,300						—						—						(42,504)
SS Portfolio Cash (Adjusted) NOI(1)						$	423,871					$	361,031					$	105,085					$	—					$	—					$	889,987

			25

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Reconciliations
In thousands

For the year ended December 31, 2021

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Net income (loss)						$	244,521					$	356,035					$	(40,405)					$	39,344					$	(73,565)					$	525,930
Loss (income) from discontinued operations						—						—						—						—						(388,202)						(388,202)
Income (loss) from continuing operations						$	244,521					$	356,035					$	(40,405)					$	39,344					$	(461,767)					$	137,728
Interest income						—						—						—						(37,773)						—						(37,773)
Interest expense						232						2,837						7,701						—						147,210						157,980
Depreciation and amortization						303,196						255,746						125,344						—						—						684,286
General and administrative						—						—						—						—						98,303						98,303
Transaction costs						24						323						1,445						49						—						1,841
Impairments and loan loss (reserves) recoveries, net						—						21,577						—						1,583						—						23,160
Loss (gain) on sales of real estate, net						—						(190,590)						—						—						—						(190,590)
Loss (gain) on debt extinguishments						—						—						—						—						225,824						225,824
Other expense (income), net						(55)						2,725						(2,141)						(486)						(6,309)						(6,266)
Income tax expense (benefit)						—						—						—						—						(3,261)						(3,261)
Government grant income						—						—						1,412						—						—						1,412
Healthpeak's share of unconsolidated joint venture NOI						3,921						1,708						464						17,518						—						23,611
Noncontrolling interests' share of consolidated joint venture NOI						(205)						(25,292)						—						—						—						(25,497)
Equity loss (income) from unconsolidated JVs						(1,118)						(794)						(1,484)						(2,704)						—						(6,100)
Portfolio NOI						$	550,516					$	424,275					$	92,336					$	17,531					$	—					$	1,084,658
Adjustment to NOI						(46,589)						(11,118)						3,241						(47)						—						(54,513)
Portfolio Cash (Adjusted) NOI						$	503,927					$	413,157					$	95,577					$	17,484					$	—					$	1,030,145
Interest Income						—						—						—						37,773						—						37,773
Portfolio Income						$	503,927					$	413,157					$	95,577					$	55,257					$	—					$	1,067,918
Interest income						—						—						—						(37,773)												(37,773)
Adjustment to NOI						46,589						11,118						(3,241)						47						—						54,513
Non-SS Portfolio NOI						(112,497)						(68,835)						1,482						(17,531)						—						(197,381)
SS Portfolio NOI(1)						$	438,019					$	355,440					$	93,818					$	—					$	—					$	887,277
Non-cash adjustment to SS Portfolio NOI						(34,667)						(8,455)						3,475						—						—						(39,647)
SS Portfolio Cash (Adjusted) NOI(1)						$	403,352					$	346,985					$	97,293					$	—					$	—					$	847,630

______________________________________

(1)The property count used for SS Portfolio NOI and SS Portfolio Cash (Adjusted) NOI differed for the three and twelve months ended December 31, 2022 and 2021.

			26

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Reconciliations
In thousands

Healthpeak's Share of Unconsolidated Joint Venture's NOI

Total Portfolio

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Equity income (loss) from unconsolidated JVs			$	1,583					$	2,084					$	382					$	(325)					$	(156)
Depreciation and amortization			5,041						5,135						5,210						8,704						8,642
General and administrative			6						30						71						177						167
Loss (gain) on sales of real estate, net			329						(210)						150						239						45
Other expense (income), net			(130)						(1,067)						(592)						(2,069)						(861)
Income tax expense (benefit)			(451)						47						88						118						(19)
Healthpeak's Share of unconsolidated JVs NOI			$	6,378					$	6,019					$	5,309					$	6,844					$	7,818

Life Science

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Equity income (loss) from unconsolidated JVs			$	470					$	966					$	148					$	(877)					$	(1,209)
Depreciation and amortization			754						760						776						3,709						5,037
General and administrative			—						—						—						123						160
Other expense (income), net			(257)						(778)						(140)						(794)						(843)
Healthpeak's Share of unconsolidated JVs NOI			$	967					$	948					$	784					$	2,161					$	3,145

Medical Office

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Equity income (loss) from unconsolidated JVs			$	245					$	200					$	211					$	206					$	235
Depreciation and amortization			228						221						226						225						240
General and administrative			4						7						17						5						3
Loss (gain) on sales of real estate, net			(17)						(2)						—						—						—
Other expense (income), net			(5)						—						—						—						—
Income tax expense (benefit)			7						7						6						7						7
Healthpeak's Share of unconsolidated JVs NOI			$	462					$	433					$	460					$	443					$	485

			27

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Reconciliations
In thousands

CCRC

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Equity income (loss) from unconsolidated JVs			$	—					$	539					$	—					$	—					$	—
Loss (gain) on sales of real estate, net			346						(208)						150						—						45
Other expense (income), net			1						2						(150)						—						2
Healthpeak's Share of unconsolidated JVs NOI			$	347					$	333					$	—					$	—					$	47

Other

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Equity income (loss) from unconsolidated JVs			$	868					$	379					$	23					$	346					$	818
Depreciation and amortization			4,059						4,154						4,208						4,770						3,365
General and administrative			2						23						54						49						4
Other expense (income), net			131						(291)						(302)						(1,036)						(20)
Income tax expense (benefit)			(458)						40						82						111						(26)
Healthpeak's Share of unconsolidated JVs NOI			$	4,602					$	4,305					$	4,065					$	4,240					$	4,141

			28

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Reconciliations
In thousands

Healthpeak's Share of Unconsolidated Joint Venture's NOI

For the year ended December 31, 2022

						Life Science						Medical Office						CCRC						Other												Total
Equity income (loss) from unconsolidated JVs						$	(972)					$	852					$	539					$	1,566											$	1,985
Depreciation and amortization						10,282						911						—						16,498												27,691
General and administrative						282						33						—						129												444
Loss (gain) on sales of real estate, net						—						(2)						226						—												224
Other expense (income), net						(2,554)						—						(385)						(1,649)												(4,588)
Income tax expense (benefit)						—						27						—						207												234
Healthpeak's Share of unconsolidated JVs NOI						$	7,038					$	1,821					$	380					$	16,751											$	25,990

For the year ended December 31, 2021

						Life Science						Medical Office						CCRC						Other												Total
Equity income (loss) from unconsolidated JVs						$	1,118					$	794					$	1,484					$	2,704											$	6,100
Depreciation and amortization						3,022						885						—						13,174												17,081
General and administrative						2						26						—						202												230
Loss (gain) on sales of real estate, net						—						(17)						(1,017)						—												(1,034)
Other expense (income), net						(221)						—						(3)						3,554												3,330
Income tax expense (benefit)						—						20						—						(2,116)												(2,096)
Healthpeak's Share of unconsolidated JVs NOI						$	3,921					$	1,708					$	464					$	17,518											$	23,611

			29

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Reconciliations
In thousands

Noncontrolling Interests' Share of Consolidated Joint Venture's NOI

Total Portfolio

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	3,815					$	3,730					$	3,955					$	4,016					$	4,274
Gain on sales of real estate, net			76						(12)						—						—						—
Depreciation and amortization			4,768						4,693						4,710						4,696						4,657
Other expense (income), net			74						195						(26)						82						69
Dividends attributable to noncontrolling interest			(2,382)						(2,350)						(2,379)						(2,350)						(2,379)
Noncontrolling interests' share of consolidated JVs NOI			$	6,351					$	6,256					$	6,260					$	6,444					$	6,621

Life Science

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	956					$	916					$	946					$	922					$	1,000
Depreciation and amortization			25						20						25						13						31
Other expense (income), net			—						3						2						—						(35)
Dividends attributable to noncontrolling interest			(932)						(901)						(930)						(901)						(930)
Noncontrolling interests' share of consolidated JVs NOI			$	49					$	38					$	43					$	34					$	66

Medical Office

			Three Months Ended
			December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	2,859					$	2,814					$	3,009					$	3,094					$	3,274
Gain on sales of real estate, net			76						(12)						—						—						—
Depreciation and amortization			4,743						4,673						4,685						4,683						4,626
Other expense (income), net			74						192						(28)						82						104
Dividends attributable to noncontrolling interest			(1,450)						(1,449)						(1,449)						(1,449)						(1,449)
Noncontrolling interests' share of consolidated JVs NOI			$	6,302					$	6,218					$	6,217					$	6,410					$	6,555

			30

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Reconciliations
In thousands

Noncontrolling Interests' Share of Consolidated Joint Venture's NOI

For the year ended December 31, 2022

						Life Science						Medical Office																								Total
Income (loss) from continuing operations attributable to noncontrolling interest						$	3,784					$	12,191																							$	15,975
Gain on sales of real estate, net						—						(12)																								(12)
Depreciation and amortization						89						18,667																								18,756
Other expense (income), net						(28)						350																								322
Dividends attributable to noncontrolling interest						(3,664)						(5,796)																								(9,460)
Noncontrolling interests' share of consolidated JVs NOI						$	181					$	25,400																							$	25,581

For the year ended December 31, 2021

						Life Science						Medical Office																								Total
Income (loss) from continuing operations attributable to noncontrolling interest						$	3,727					$	14,124																							$	17,851
Gain on sales of real estate, net						—						(3,404)																								(3,404)
Depreciation and amortization						102						19,265																								19,367
Other expense (income), net						47						667																								714
Dividends attributable to noncontrolling interest						(3,671)						(5,360)																								(9,031)
Noncontrolling interests' share of consolidated JVs NOI						$	205					$	25,292																							$	25,497

			31

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Reconciliations
In thousands

CCRC Pro Forma Portfolio Real Estate Revenues and NOI(1)

Pro Forma SS Portfolio Real Estate Revenues						Three Months Ended
						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Real Estate Revenues - SS(2)						$	118,868					$	128,112					$	125,569					$	122,146					$	125,873
Pro forma adjustments to exclude government grants						—						(6,552)						(209)						(4)						—
Pro forma Portfolio Real Estate Revenues - SS(3)						$	118,868					$	121,560					$	125,360					$	122,143					$	125,873

Pro Forma SS Portfolio Cash Real Estate Revenues						Three Months Ended
						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Cash Real Estate Revenues - SS(2)						$	118,868					$	128,112					$	125,569					$	122,146					$	125,873
Pro forma adjustments to exclude government grants						—						(6,552)						(209)						(4)						—
Pro forma Portfolio Cash Real Estate Revenues - SS(3)						$	118,868					$	121,560					$	125,360					$	122,143					$	125,873

Pro Forma SS Portfolio NOI						Three Months Ended
						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
SS Portfolio NOI(4)						$	23,148					$	30,714					$	23,735					$	22,232					$	26,104
Pro forma adjustment to exclude government grants						—						(6,552)						(209)						(4)						—
Pro forma SS Portfolio NOI(3)						$	23,148					$	24,162					$	23,526					$	22,228					$	26,104

Pro Forma SS Portfolio Cash (Adjusted) NOI						Three Months Ended
						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
SS Portfolio Cash (Adjusted) NOI(4)						$	24,691					$	30,714					$	23,735					$	22,232					$	28,404
Pro forma adjustment to exclude government grants						—						(6,552)						(209)						(4)						—
Pro forma SS Portfolio Cash (Adjusted) NOI(3)						$	24,691					$	24,162					$	23,526					$	22,228					$	28,404

______________________________________

(1)May not foot due to rounding.

(2)See pages 13 and 14 of this document for a reconciliation of Portfolio Real Estate Revenues - SS and Portfolio Cash Real Estate Revenues - SS.

(3)Pro forma adjustments excludes government grants received under the CARES Act from Portfolio Real Estate Revenues.

(4)See pages 21 through 24 of this document for a reconciliation of SS Portfolio NOI and SS Portfolio Cash (Adjusted) NOI.

			32

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Reconciliations
In thousands, except per month data

REVPOR CCRC(1)

						Three Months Ended
REVPOR CCRC						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Cash Real Estate Revenues(2)						$	118,868					$	128,445					$	125,569					$	122,146					$	125,920
Other adjustments to REVPOR CCRC(3)						—						(333)						—						—						(47)
REVPOR CCRC revenues						$	118,868					$	128,112					$	125,569					$	122,146					$	125,873
Average occupied units/month						5,852						5,939						5,952						5,894						5,918
REVPOR CCRC per month(4)						$	6,770					$	7,190					$	7,032					$	6,908					$	7,090

						Three Months Ended
REVPOR CCRC excluding NREF Amortization						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
REVPOR CCRC revenues						$	118,868					$	128,112					$	125,569					$	122,146					$	125,873
NREF Amortization						(19,745)						(18,957)						(19,444)						(19,706)						(21,260)
REVPOR CCRC revenues excluding NREF Amortization						$	99,123					$	109,155					$	106,125					$	102,440					$	104,612
Average occupied units/month						5,852						5,939						5,952						5,894						5,918
REVPOR CCRC excluding NREF Amortization per month(4)						$	5,646					$	6,126					$	5,943					$	5,794					$	5,892

						Three Months Ended
SS REVPOR CCRC						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
SS REVPOR CCRC revenues(5)						$	118,868					$	128,112					$	125,569					$	122,146					$	125,873
SS average occupied units/month						5,852						5,939						5,952						5,894						5,918
SS REVPOR CCRC per month(4)						$	6,770					$	7,190					$	7,032					$	6,908					$	7,090

						Three Months Ended
SS REVPOR CCRC excluding NREF Amortization						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
SS REVPOR CCRC revenues(5)						$	118,868					$	128,112					$	125,569					$	122,146					$	125,873
NREF Amortization						(19,745)						(18,957)						(19,444)						(19,706)						(21,260)
SS REVPOR CCRC revenues excluding NREF Amortization						$	99,123					$	109,155					$	106,125					$	102,440					$	104,612
SS Average occupied units/month						5,852						5,939						5,952						5,894						5,918
SS REVPOR CCRC excluding NREF Amortization per month(4)						$	5,646					$	6,126					$	5,943					$	5,794					$	5,892

						Three Months Ended
PRO FORMA SS REVPOR CCRC						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Pro Forma SS REVPOR CCRC revenues(6)						$	118,868					$	121,560					$	125,360					$	122,143					$	125,873
SS average occupied units/month						5,852						5,939						5,952						5,894						5,918
SS REVPOR CCRC per month(4)						$	6,770					$	6,822					$	7,020					$	6,908					$	7,090

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Reconciliations
In thousands, except per month data

						Three Months Ended
PRO FORMA SS REVPOR CCRC excluding NREF Amortization						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Pro Forma SS REVPOR CCRC revenues(6)						$	118,868					$	121,560					$	125,360					$	122,143					$	125,873
NREF Amortization						(19,745)						(18,957)						(19,444)						(19,706)						(21,260)
SS REVPOR CCRC revenues excluding NREF Amortization						$	99,123					$	102,603					$	105,916					$	102,436					$	104,612
Average occupied units/month						5,852						5,939						5,952						5,894						5,918
SS REVPOR CCRC excluding NREF Amortization per month(4)						$	5,646					$	5,758					$	5,931					$	5,794					$	5,892

_____________________________________

(1)May not foot due to rounding.

(2)See pages 13 and 14 of this document for a reconciliation of Portfolio Cash Real Estate Revenues.

(3)Includes revenue from facilities that are held for sale or sold.

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

(5)See pages 13 and 14 of this document for a reconciliation of Portfolio Cash Real Estate Revenues - SS.

(6)See page 32 of this document for a reconciliation of Pro forma Portfolio Real Estate Revenues - SS which is the same as Pro Forma SS REVPOR CCRC revenues.

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Reconciliations
In thousands

Other Pro Forma Portfolio Real Estate Revenues and NOI(1)

						Three Months Ended
Pro Forma Portfolio Real Estate Revenues						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Real Estate Revenues(2)						$	17,972					$	18,360					$	18,215					$	18,839					$	18,969
Pro forma adjustments to exclude government grants						(739)						(315)						—						(183)						—
Pro forma Portfolio Real Estate Revenues(3)						$	17,232					$	18,045					$	18,215					$	18,657					$	18,969

						Three Months Ended
Pro Forma Portfolio Cash Real Estate Revenues						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Cash Real Estate Revenues(2)						$	17,968					$	18,383					$	18,301					$	18,905					$	19,024
Pro forma adjustments to exclude government grants						(739)						(315)						—						(183)						—
Pro forma Portfolio Cash Real Estate Revenues(3)						$	17,228					$	18,067					$	18,301					$	18,722					$	19,024

						Three Months Ended
Pro Forma Portfolio NOI						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio NOI(4)						$	4,602					$	4,305					$	4,065					$	4,240					$	4,141
Pro forma adjustments to exclude government grants						(739)						(315)						—						(183)						—
Pro forma Portfolio NOI(3)						$	3,863					$	3,990					$	4,065					$	4,058					$	4,141

						Three Months Ended
Pro Forma Portfolio Cash (Adjusted) NOI						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Cash (Adjusted) NOI(4)						$	4,570					$	4,297					$	4,119					$	4,316					$	4,188
Pro forma adjustments to exclude government grants						(739)						(315)						—						(183)						—
Pro forma Portfolio Cash (Adjusted) NOI(3)						$	3,831					$	3,981					$	4,119					$	4,134					$	4,188

______________________________________

(1)May not foot due to rounding.

(2)See pages 13 and 14 of this document for a reconciliation of Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues.

(3)Pro forma adjustments excludes government grants received under the CARES Act for Portfolio Real Estate Revenues.

(4)See pages 21 through 24 of this document for a reconciliation of Portfolio NOI and Portfolio Cash (Adjusted) NOI.

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Reconciliations
In thousands, except per month data

REVPOR Other(1)

						Three Months Ended
REVPOR Other						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
Portfolio Cash Real Estate Revenues(2)						$	17,968					$	18,383					$	18,301					$	18,905					$	19,024
Other adjustments to REVPOR Other(3)						(3,863)						(2,201)						(2,280)						(2,371)						(2,423)
REVPOR Other revenues						$	14,105					$	16,182					$	16,021					$	16,534					$	16,601
Average occupied units/month						1,142						1,261						1,261						1,289						1,302
REVPOR Other per month(4)						$	4,118					$	4,278					$	4,234					$	4,276					$	4,250

						Three Months Ended
Pro Forma REVPOR Other						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022						December 31, 2022
REVPOR Other revenues						$	14,105					$	16,182					$	16,021					$	16,534					$	16,601
Pro Forma adjustments to REVPOR Other(5)						(532)						(258)						—						(168)						—
Pro Forma REVPOR Other revenues						$	13,573					$	15,923					$	16,021					$	16,365					$	16,601
Average occupied units/month						1,142						1,261						1,261						1,289						1,302
Pro Forma REVPOR Other per month(4)						$	3,963					$	4,210					$	4,234					$	4,232					$	4,250

______________________________________

(1)May not foot due to rounding.

(2)See pages 13 and 14 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 Other divided by a factor of three.

(5)Pro forma adjustments excludes government grants received under the CARES Act for the stabilized properties included in REVPOR Other revenues.

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Reconciliations
In thousands

Discontinued Operations Reconciliation

The results of discontinued operations during the three and twelve months ended December 31, 2022 and 2021, or through the disposal date of each asset or portfolio of assets held within discontinued operations if sold during such periods, as applicable, 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 twelve months ended December 31, 2022 and 2021 is presented below (in thousands):

			Three Months Ended December 31,												Year Ended December 31,
			2022						2021						2022						2021
Revenues:
Rental and related revenues			$	—					$	—					$	—					$	7,535
Resident fees and services			725						3,159						7,489						114,936
Total revenues			725						3,159						7,489						122,471
Costs and expenses:
Interest expense			—						—						—						3,900
Operating			—						4,396						6,452						122,571
Transaction costs			—						—						—						76
Impairments and loan loss reserves (recoveries), net			—						—						—						32,736
Total costs and expenses			—						4,396						6,452						159,283
Other income (expense):
Gain (loss) on sales of real estate, net			(17)						6,063						1,344						414,721
Other income (expense), net			154						(960)						169						4,189
Total other income (expense), net			137						5,103						1,513						418,910
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures			862						3,866						2,550						382,098
Income tax benefit (expense)			11						(376)						270						969
Equity income (loss) from unconsolidated joint ventures			—						143						64						5,135
Income (loss) from discontinued operations			$	873					$	3,633					$	2,884					$	388,202

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