Published: 2022-11-01 00:00:00 ET

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Exhibit 99.3

 

  

 

 

Discussion and

Reconciliation of Non-

GAAP Financial Measures

 

September 30, 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 quarter as if the transactions were completed at the beginning of the quarter. 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

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 consolidated portfolio of properties. 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 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 September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Net income (loss) applicable to common shares			$	353,366					$	54,442					$	491,398					$	473,778
Real estate related depreciation and amortization			173,190						177,175						531,412						506,172
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures			8,704						4,722						19,049						12,044
Noncontrolling interests’ share of real estate related depreciation and amortization			(4,464)						(4,849)						(14,487)						(14,599)
Loss (gain) on sales of depreciable real estate, net(1)			5,280						(41,393)						(11,408)						(598,531)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures			239						(1,068)						89						(6,934)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net			—						3,450						12						5,628
Loss (gain) upon change of control, net(2)			(311,438)						—						(311,438)						(1,042)
Taxes associated with real estate dispositions			197						483						31						2,666
Impairments (recoveries) of depreciable real estate, net			—						1,952						—						5,695
Nareit FFO applicable to common shares			225,074						194,914						704,658						384,877
Distributions on dilutive convertible units and other			2,352						1,651						7,055						—
Diluted Nareit FFO applicable to common shares			$	227,426					$	196,565					$	711,713					$	384,877
Weighted average shares outstanding - diluted Nareit FFO			546,015						544,889						546,677						539,159
Impact of adjustments to Nareit FFO:
Transaction-related items			$	681					$	1,259					$	1,573					$	6,638
Other impairments (recoveries) and other losses (gains), net(3)			2,897						20,073						(5,874)						25,161
Restructuring and severance related charges			—						—						—						2,463
Loss (gain) on debt extinguishments			—						667						—						225,824
Casualty-related charges (recoveries), net(4)			4,514						558						4,103						5,203
Total adjustments			8,092						22,557						(198)						265,289
FFO as Adjusted applicable to common shares			233,166						217,471						704,460						650,166
Distributions on dilutive convertible units and other			2,338						2,313						7,055						6,323
Diluted FFO as Adjusted applicable to common shares			$	235,504					$	219,784					$	711,515					$	656,489
Weighted average shares outstanding - diluted FFO as Adjusted			546,015						546,714						546,677						546,485
Diluted earnings per common share			$	0.65					$	0.10					$	0.91					$	0.88
Depreciation and amortization			0.33						0.33						0.98						0.93
Loss (gain) on sales of depreciable real estate, net			0.01						(0.07)						(0.02)						(1.11)
Loss (gain) upon change of control, net(2)			(0.57)						—						(0.57)						0.00
Taxes associated with real estate dispositions			0.00						0.00						0.00						0.00
Impairments (recoveries) of depreciable real estate, net			—						0.00						—						0.01
Diluted Nareit FFO per common share			$	0.42					$	0.36					$	1.30					$	0.71
Transaction-related items			0.00						0.00						0.00						0.01
Other impairments (recoveries) and other losses (gains), net(3)			0.00						0.04						(0.01)						0.05
Restructuring and severance related charges			—						—						—						0.00
Loss (gain) on debt extinguishments			—						0.00						—						0.42
Casualty-related charges (recoveries), net(4)			0.01						0.00						0.01						0.01
Diluted FFO as Adjusted per common share			$	0.43					$	0.40					$	1.30					$	1.20

			7

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Reconciliations
In thousands, except per share data

Adjusted Funds From Operations

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
FFO as Adjusted applicable to common shares			$	233,166					$	217,471					$	704,460					$	650,166
Stock-based compensation amortization expense			4,614						4,436						14,635						13,895
Amortization of deferred financing costs			2,691						2,343						8,069						6,677
Straight-line rents			(12,965)						(8,290)						(36,837)						(23,627)
AFFO capital expenditures			(24,358)						(28,980)						(75,103)						(72,112)
Deferred income taxes			(2,814)						(1,747)						(3,741)						(6,240)
Other AFFO adjustments			(7,020)						(5,494)						(20,545)						(15,181)
AFFO applicable to common shares			193,314						179,739						590,938						553,578
Distributions on dilutive convertible units and other			1,649						1,650						4,945						4,512
Diluted AFFO applicable to common shares			$	194,963					$	181,389					$	595,883					$	558,090
Weighted average shares outstanding - diluted AFFO			544,190						544,889						544,852						544,660

______________________________________

(1)This amount can be reconciled by combining the balances from the corresponding line of the Consolidated Statements of Operations on page 8 of the Earnings Release and Supplemental Report and Discontinued Operations Reconciliation on page 36 of this document for the three and nine months ended September 30, 2022.

(2)The three and nine months ended September 30, 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 ended September 30, 2022 includes reserves for loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations. The nine months ended September 30, 2022 also includes the following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) a $23 million gain on sale of a hospital that was in a direct financing lease and (ii) $14 million of expenses incurred for tenant relocation and other costs associated with the demolition of an MOB. The three months ended September 30, 2021 includes the following: (i) a $22 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) recoveries of loan loss reserves recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations. The nine months ended September 30, 2021 also includes the following: (i) $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 and (ii) an additional $7 million goodwill impairment charge in connection with our senior housing triple-net and SHOP asset sales.

(4)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. The amounts are reported net of the associated income tax impact.

			8

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Reconciliations
Per share data

Projected Future Operations(1)

			Full Year 2022
			Low						High
Diluted earnings per common share			$	0.94					$	0.96
Real estate related depreciation and amortization			1.32						1.32
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			(0.02)						(0.02)
Loss (gain) upon change of control, net			(0.58)						(0.58)
Diluted Nareit FFO per common share			$	1.67					$	1.69
Other impairments (recoveries) and other losses (gains), net			(0.01)						(0.01)
Severance-related charge			0.05						0.05
Casualty-related charges (recoveries), net			0.01						0.01
Diluted FFO as Adjusted per common share			$	1.72					$	1.74

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of November 1, 2022 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 November 1, 2022. 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 SS Cash NOI(1)

For the projected year 2022 (low)

						Life Science						Medical Office						CCRC						Other						Corporate Adjustments						Total
Net income (loss)						$	613					$	212					$	(36)					$	14					$	(277)					$	526
Other income, costs, and expenses excluded from NOI(2)						—						234						137						1						277						650
NOI						$	613					$	446					$	101					$	15					$	—					$	1,176
Non-SS NOI						(154)						(86)						1						(15)						—						(254)
SS NOI						459						361						102						—						—						922
Non-cash adjustments to SS NOI(3)						(37)						(3)						1						—						—						(39)
SS Cash (Adjusted) NOI						$	423					$	358					$	103					$	—					$	—					$	883

For the projected year 2022 (high)

						Life Science						Medical Office						CCRC						Other						Corporate Adjustments						Total
Net income (loss)						$	611					$	210					$	(33)					$	19					$	(273)					$	534
Other income, costs, and expenses excluded from NOI(2)						5						239						137						1						274						656
NOI						$	616					$	449					$	104					$	20					$	1					$	1,190
Non-SS NOI						(155)						(86)						1						(20)						(1)						(261)
SS NOI						461						363						106						—						—						930
Non-cash adjustments to SS NOI(3)						(37)						(3)						1						—						—						(39)
SS Cash (Adjusted) NOI						$	425					$	359					$	107					$	—					$	—					$	891

For the year ended December 31, 2021

						Life Science						Medical Office						CCRC						Other						Corporate Adjustments						Total
Net income (loss)						$	245					$	356					$	(40)					$	39					$	(74)					$	526
Other income, costs, and expenses excluded from NOI(2)						306						68						132						(21)						77						562
NOI						$	551					$	424					$	92					$	18					$	3					$	1,088
Non-SS NOI						(113)						(71)						1						(18)						(3)						(203)
SS NOI						438						353						94						—						—						885
Non-cash adjustments to SS NOI(3)						(35)						(8)						3						—						—						(40)
SS Cash (Adjusted) NOI						$	403					$	345					$	97					$	—					$	—					$	845

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of November 1, 2022 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 November 1, 2022. 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 (inclusive of $311 million gain upon change in control within the Life Science segment), 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, 2021 includes discontinued operations in the corporate adjustments column.

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

			10

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Reconciliations
In thousands

Enterprise Gross Assets and Portfolio Investment

			September 30, 2022
			Life Science						Medical Office						CCRC						Other												Discontinued Operations(1)						Corporate Non-segment						Total
Consolidated total assets(2)			$	7,937,414					$	4,729,926					$	2,077,955					$	728,633											$	2,824					$	185,204					$	15,661,956
Investments in and advances to unconsolidated JVs			(341,143)						(8,855)						—						(348,905)												—						—						(698,903)
Accumulated depreciation and amortization(3)			1,315,937						1,815,372						407,130						—												—						—						3,538,439
Consolidated Gross Assets			$	8,912,208					$	6,536,443					$	2,485,085					$	379,728											$	2,824					$	185,204					$	18,501,492
Healthpeak's share of unconsolidated JV gross assets			383,765						19,047						403						486,617												61						—						889,893
Enterprise Gross Assets			$	9,295,973					$	6,555,490					$	2,485,488					$	866,345											$	2,885					$	185,204					$	19,391,385
Land held for development			(595,689)						(4,690)						—						—												—						—						(600,379)
Fully depreciated real estate and intangibles			415,045						520,723						17,389						—												—						—						953,157
Non-real estate related assets(4)			(292,983)						(394,327)						(230,077)						(22,934)												(2,885)						(185,204)						(1,128,410)
Real estate intangible liabilities			(193,095)						(137,890)						—						—												—						—						(330,985)
Noncontrolling interests' share of consolidated JVs real estate and related intangibles			(9,322)						(387,699)						—						—												—						—						(397,021)
Portfolio Investment			$	8,619,929					$	6,151,607					$	2,272,800					$	843,411											$	—					$	—					$	17,887,747

______________________________________

(1)In September 2021, the Company successfully completed the disposition of the remaining senior housing triple-net and SHOP assets. Remaining balances associated with these assets are reported within discontinued operations and represents trailing activities primarily comprised of Accounts receivable, net of allowance and Cash and cash equivalents.

(2)Consolidated total assets represents total assets on the Consolidated Balance Sheet as of September 30, 2022 presented on page 7 within the Earnings Release and Supplemental Report for the quarter ended September 30, 2022.

(3)Accumulated depreciation and amortization includes accumulated depreciation for real estate, accumulated amortization for real estate related intangible assets, and accumulated amortization for right-of-use assets.

(4)Balance includes cash and cash equivalents, restricted cash, right-of-use asset, net, accounts receivable, net of allowance, and other assets, net.

 

			11

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Reconciliations
In thousands

Revenues

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Life Science			$	184,213					$	184,170					$	194,055					$	207,771					$	207,795
Medical Office			171,482						174,264						177,263						179,308						184,506
CCRC			119,022						118,867						121,560						125,360						122,142
Other			6,748						5,904						5,494						5,493						5,963
Total revenues			$	481,465					$	483,205					$	498,372					$	517,932					$	520,406
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			15						—						6,552						209						4
Other			—						—						—						—						—
Government grant income			$	15					$	—					$	6,552					$	209					$	4
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						—						—						—						—
Other			(6,748)						(5,904)						(5,494)						(5,493)						(5,963)
Less: Interest income			$	(6,748)					$	(5,904)					$	(5,494)					$	(5,493)					$	(5,963)
Life Science			1,521						1,487						1,431						1,267						2,938
Medical Office			737						720						732						761						756
CCRC			—						—						—						—						—
Other			17,109						17,233						18,045						18,215						18,656
Healthpeak's share of unconsolidated JVs real estate revenues			$	19,367					$	19,440					$	20,208					$	20,243					$	22,350
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						—						333						—						—
Other			—						739						315						—						183
Healthpeak's share of unconsolidated JVs government grant income			$	—					$	739					$	648					$	—					$	183
Life Science			(82)						(70)						(57)						(62)						(55)
Medical Office			(8,954)						(8,658)						(8,820)						(8,943)						(8,968)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Noncontrolling interests' share of consolidated JVs real estate revenues			$	(9,036)					$	(8,728)					$	(8,877)					$	(9,005)					$	(9,023)
Life Science			185,652						185,588						195,429						208,976						210,678
Medical Office			163,265						166,325						169,175						171,126						176,294
CCRC			119,037						118,868						128,445						125,569						122,146
Other			17,109						17,972						18,360						18,215						18,839
Portfolio Real Estate Revenues			$	485,063					$	488,753					$	511,409					$	523,886					$	527,957
Life Science			(11,030)						(11,402)						(14,272)						(21,653)						(15,231)
Medical Office			(4,337)						(4,306)						(4,180)						(3,643)						(4,780)
CCRC			—						—						—						—						—
Other			12						(4)						23						86						66
Non-cash adjustments to Portfolio Real Estate Revenues			$	(15,355)					$	(15,712)					$	(18,429)					$	(25,210)					$	(19,945)

Continued

			12

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Reconciliations
In thousands

Revenues

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Life Science			174,622						174,186						181,157						187,323						195,447
Medical Office			158,928						162,019						164,995						167,483						171,514
CCRC			119,037						118,868						128,445						125,569						122,146
Other			17,121						17,968						18,383						18,301						18,905
Portfolio Cash Real Estate Revenues			$	469,708					$	473,041					$	492,980					$	498,676					$	508,012
Life Science			11,030						11,402						14,272						21,653						15,231
Medical Office			4,337						4,306						4,180						3,643						4,780
CCRC			—						—						—						—						—
Other			(12)						4						(23)						(86)						(66)
Non-cash adjustments to Portfolio Real Estate Revenues			$	15,355					$	15,712					$	18,429					$	25,210					$	19,945
Life Science			(29,131)						(31,038)						(35,239)						(44,009)						(40,999)
Medical Office			(21,346)						(24,360)						(24,526)						(25,472)						(27,407)
CCRC			—						—						(333)						—						—
Other			(17,109)						(17,972)						(18,360)						(18,215)						(18,839)
Non-SS Portfolio Real Estate Revenues			$	(67,586)					$	(73,370)					$	(78,458)					$	(87,696)					$	(87,245)
Life Science			156,521						154,550						160,190						164,967						169,679
Medical Office			141,919						141,965						144,649						145,654						148,887
CCRC			119,037						118,868						128,112						125,569						122,146
Other			—						—						—						—						—
Portfolio Real Estate Revenue - SS(1)			$	417,477					$	415,383					$	432,951					$	436,190					$	440,712
Life Science			(9,150)						(8,533)						(9,749)						(10,883)						(10,477)
Medical Office			(3,378)						(3,063)						(2,916)						(2,618)						(2,915)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Non-cash adjustment to SS Portfolio Real Estate Revenues			$	(12,528)					$	(11,596)					$	(12,665)					$	(13,501)					$	(13,392)
Life Science			147,371						146,017						150,441						154,084						159,202
Medical Office			138,541						138,902						141,733						143,036						145,972
CCRC			119,037						118,868						128,112						125,569						122,146
Other			—						—						—						—						—
Portfolio Cash Real Estate Revenue - SS(1)			$	404,949					$	403,787					$	420,286					$	422,689					$	427,320

			13

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Reconciliations
In thousands

Operating Expenses

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Life Science			$	44,923					$	43,936					$	48,189					$	49,446					$	55,162
Medical Office			58,430						59,184						61,170						63,321						64,782
CCRC			98,799						96,127						97,888						102,277						100,264
Other			(13)						—						—						—						—
Operating expenses			$	202,139					$	199,247					$	207,247					$	215,044					$	220,208
Life Science			463						520						483						483						777
Medical Office			305						258						299						301						313
CCRC			32						(346)						—						—						—
Other			13,450						13,370						14,055						14,150						14,599
Healthpeak's share of unconsolidated JVs operating expenses			$	14,250					$	13,802					$	14,837					$	14,934					$	15,689
Life Science			(25)						(21)						(19)						(19)						(21)
Medical Office			(2,659)						(2,356)						(2,602)						(2,726)						(2,558)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Noncontrolling interests' share of consolidated JVs operating expenses			$	(2,684)					$	(2,377)					$	(2,621)					$	(2,745)					$	(2,579)
Life Science			45,361						44,435						48,653						49,910						55,918
Medical Office			56,076						57,086						58,867						60,896						62,537
CCRC			98,831						95,781						97,888						102,277						100,264
Other			13,437						13,370						14,055						14,150						14,599
Portfolio Operating Expenses			$	213,705					$	210,672					$	219,463					$	227,233					$	233,318
Life Science			(10)						(9)						(160)						(9)						(10)
Medical Office			(711)						(740)						(633)						(694)						(701)
CCRC			(724)						(1,270)						—						—						—
Other			113						27						31						32						(10)
Non-cash adjustments to Portfolio Operating Expenses			$	(1,332)					$	(1,992)					$	(762)					$	(671)					$	(721)
Life Science			45,351						44,426						48,493						49,901						55,908
Medical Office			55,365						56,346						58,234						60,202						61,836
CCRC			98,107						94,511						97,888						102,277						100,264
Other			13,550						13,397						14,086						14,182						14,589
Portfolio Cash Operating Expenses			$	212,373					$	208,680					$	218,701					$	226,562					$	232,597
Life Science			10						9						160						9						10
Medical Office			711						740						633						694						701
CCRC			724						1,270						—						—						—
Other			(113)						(27)						(31)						(32)						10
Non-cash adjustments to Portfolio Operating Expenses			$	1,332					$	1,992					$	762					$	671					$	721
Life Science			(6,437)						(7,373)						(9,222)						(9,752)						(10,974)
Medical Office			(8,244)						(9,117)						(10,391)						(11,746)						(11,810)
CCRC			(426)						(62)						(490)						(443)						(350)
Other			(13,437)						(13,370)						(14,055)						(14,150)						(14,599)
Non-SS Portfolio Operating Expenses			$	(28,544)					$	(29,922)					$	(34,158)					$	(36,091)					$	(37,733)

Continued

			14

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Reconciliations
In thousands

Operating Expenses

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Life Science			38,924						37,062						39,431						40,158						44,944
Medical Office			47,832						47,969						48,476						49,150						50,727
CCRC			98,405						95,719						97,398						101,834						99,914
Other			—						—						—						—						—
Portfolio Operating Expenses - SS(1)			$	185,161					$	180,750					$	185,305					$	191,142					$	195,585
Life Science			(10)						(9)						(160)						(9)						(9)
Medical Office			(661)						(626)						(620)						(620)						(615)
CCRC			(724)						(1,542)						—						—						—
Other			—						—						—						—						—
Non-cash adjustment to SS Portfolio Operating Expenses			$	(1,395)					$	(2,177)					$	(780)					$	(629)					$	(624)
Life Science			38,914						37,053						39,271						40,149						44,935
Medical Office			47,171						47,343						47,856						48,530						50,112
CCRC			97,681						94,177						97,398						101,834						99,914
Other			—						—						—						—						—
Portfolio Cash Operating Expenses - SS(1)			$	183,766					$	178,573					$	184,525					$	190,513					$	194,961

			15

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Reconciliations
In thousands

Revenues

Operating Expenses

Nine Months Ended September 30, 2022												Nine Months Ended September 30, 2022
Life Science			$	609,620								Life Science			$	152,796
Medical Office			541,078									Medical Office			189,274
CCRC			369,062									CCRC			300,429
Other			16,950									Other			—
Total revenues			$	1,536,710								Operating expenses			$	642,499
Life Science			—									Life Science			1,744
Medical Office			—									Medical Office			912
CCRC			6,765									CCRC			—
Other			—									Other			42,804
Government grant income			$	6,765								Healthpeak's share of unconsolidated JVs operating expenses			$	45,460
Life Science			—									Life Science			(59)
Medical Office			—									Medical Office			(7,886)
CCRC			—									CCRC			—
Other			(16,950)									Other			—
Less: Interest income			$	(16,950)								Noncontrolling interests' share of consolidated JVs operating expenses			$	(7,945)
Life Science			5,637									Life Science			154,481
Medical Office			2,249									Medical Office			182,300
CCRC			—									CCRC			300,429
Other			54,918									Other			42,804
Healthpeak's share of unconsolidated JVs real estate revenues			$	62,804								Portfolio Operating Expenses			$	680,014
Life Science			—									Life Science			(178)
Medical Office			—									Medical Office			(2,028)
CCRC			334									CCRC			—
Other			497									Other			53
Healthpeak's share of unconsolidated JVs government grant income			$	831								Non-cash adjustments to Portfolio Operating Expenses			$	(2,153)
Life Science			(174)									Life Science			154,303
Medical Office			(26,732)									Medical Office			180,272
CCRC			—									CCRC			300,429
Other			—									Other			42,857
Noncontrolling interests' share of consolidated JVs real estate revenues			$	(26,906)								Portfolio Cash Operating Expenses			$	677,861
Life Science			615,083									Life Science			$	178
Medical Office			516,595									Medical Office			2,028
CCRC			376,161									CCRC			—
Other			55,415									Other			(53)
Portfolio Real Estate Revenues			$	1,563,254								Non-cash Portfolio Cash Operating Expenses			$	2,153
Life Science			(51,155)									Life Science			(42,110)
Medical Office			(12,602)									Medical Office			(43,894)
CCRC			—									CCRC			(1,283)
Other			173									Other			(42,804)
Non-cash adjustments to Portfolio Real Estate Revenues			$	(63,584)								Non-SS Portfolio Operating Expenses			$	(130,091)

			16

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Reconciliations
In thousands

Nine Months Ended September 30, 2022												Nine Months Ended September 30, 2022
Life Science			563,928									Life Science			112,371
Medical Office			503,993									Medical Office			138,406
CCRC			376,161									CCRC			299,146
Other			55,588									Other			—
Portfolio Cash Real Estate Revenues			$	1,499,670								Portfolio Operating Expenses - SS(1)			$	549,923
Life Science			51,155									Life Science			(178)
Medical Office			12,602									Medical Office			(1,689)
CCRC			—									CCRC			—
Other			(173)									Other			—
Non-cash adjustments to Portfolio Real Estate Revenues			$	63,584								Non-cash adjustment to SS Portfolio Operating Expenses			$	(1,867)
Life Science			(157,265)									Life Science			112,193
Medical Office			(103,956)									Medical Office			136,717
CCRC			(333)									CCRC			299,146
Other			(55,415)									Other			—
Non-SS Portfolio Real Estate Revenue			$	(316,969)								Portfolio Cash Operating Expenses - SS(1)			$	548,056
Life Science			$	457,818
Medical Office			412,639
CCRC			375,828
Other			—
Portfolio Real Estate Revenue - SS(1)			$	1,246,285
Life Science			(28,925)
Medical Office			(7,007)
CCRC			—
Other			—
Non-cash adjustment to SS Portfolio Real Estate Revenues			$	(35,932)
Life Science			428,893
Medical Office			405,632
CCRC			375,828
Other			—
Portfolio Cash Real Estate Revenue - SS(1)			$	1,210,353

______________________________________

(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 nine months ended September 30, 2022.

			17

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Reconciliations
In thousands

EBITDAre and Adjusted EBITDAre

			Three Months Ended September 30, 2022
Net income (loss)			$	357,986
Interest expense			44,078
Income tax expense (benefit)(1)			(3,724)
Depreciation and amortization			173,190
Other depreciation and amortization			1,315
Loss (gain) on sales of real estate(1)			5,280
Loss (gain) upon change of control			(311,438)
Share of unconsolidated JV:
Interest expense			(272)
Income tax expense (benefit)			118
Depreciation and amortization			8,704
Loss (gain) on sale of real estate from unconsolidated JVs			239
EBITDAre			$	275,476
Transaction-related items, net			728
Other impairments (recoveries) and losses (gains)(2)			3,407
Casualty-related charges (recoveries)			5,380
Stock-based compensation amortization expense			4,614
Impact of transactions closed during the quarter(3)			(8)
Adjusted EBITDAre			$	289,597

Adjusted Fixed Charge Coverage

			Three Months Ended September 30, 2022
Interest expense, including unconsolidated JV interest expense at share			43,806
Capitalized interest			10,911
Fixed Charges			$	54,717
Adjusted Fixed Charge Coverage			5.3x

  ______________________________________

(1)This amount can be reconciled by combining the balances from the corresponding line of the Consolidated Statements of Operations on page 8 of the Earnings Release and Supplemental Report and Discontinued Operations Reconciliation on page 36 of this document for the quarter ended September 30, 2022.

(2)Adjustment includes reserves for loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.

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

			18

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Reconciliations
In thousands

Enterprise Debt and Net Debt

			September 30, 2022
Bank line of credit and commercial paper			$	1,585,333
Senior unsecured notes			4,657,651
Mortgage debt			347,987
Consolidated Debt			$	6,590,971
Share of unconsolidated JV mortgage debt			39,776
Enterprise Debt			$	6,630,747
Cash and cash equivalents(1)			(114,624)
Share of unconsolidated JV cash and cash equivalents			(24,463)
Restricted cash			(54,500)
Share of unconsolidated JV restricted cash			(3,057)
Expected net proceeds from forward contracts			(308,491)
Net Debt			$	6,125,612

Financial Leverage

			September 30, 2022
Enterprise Debt			$	6,630,747
Enterprise Gross Assets			19,391,385
Financial Leverage			34.2%

Secured Debt Ratio

			September 30, 2022
Mortgage debt			$	347,987
Share of unconsolidated JV mortgage debt			39,776
Enterprise Secured Debt			$	387,763
Enterprise Gross Assets			19,391,385
Secured Debt Ratio			2.0%

Net Debt to Adjusted EBITDAre

September 30, 2022

Net Debt

$

6,125,612

Annualized Adjusted EBITDAre(2)

1,158,388

Net Debt to Adjusted EBITDAre

5.3x

  ______________________________________

(1)Includes cash and cash equivalents of $2 million on assets classified as discontinued operations.

(2)Represents the current quarter Adjusted EBITDAre multiplied by a factor of four.

			19

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Reconciliations
In thousands

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

Total Portfolio

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Net income (loss)			$	61,906					$	32,576					$	75,343					$	72,293					$	357,986
Loss (income) from discontinued operations			(601)						(3,633)						(317)						(2,992)						1,298
Income (loss) from continuing operations			$	61,305					$	28,943					$	75,026					$	69,301					$	359,284
Interest income			(6,748)						(5,904)						(5,494)						(5,493)						(5,963)
Interest expense			35,905						36,551						37,586						41,867						44,078
Depreciation and amortization			177,175						178,114						177,733						180,489						173,190
General and administrative			23,270						26,043						23,831						24,781						24,549
Transaction costs			—						424						296						612						728
Loss (gain) on sales of real estate, net			(14,635)						(717)						(3,856)						(10,340)						4,149
Impairments and loan loss reserves (recoveries), net			285						18,702						132						139						3,407
Other expense (income), net			(1,670)						(662)						(18,316)						(2,861)						(305,678)
Loss (gain) on debt extinguishments			667						—						—						—						—
Income tax expense (benefit)			(649)						(1,857)						777						(718)						(3,834)
Government grant income			15						—						6,552						209						4
Equity loss (income) from unconsolidated JVs			(2,327)						(1,583)						(2,084)						(382)						325
Healthpeak's share of unconsolidated JVs NOI			5,117						6,378						6,019						5,309						6,844
Noncontrolling interests' share of consolidated JVs NOI			(6,352)						(6,351)						(6,256)						(6,260)						(6,444)
Portfolio NOI			$	271,358					$	278,081					$	291,946					$	296,653					$	294,639
Adjustment to Portfolio NOI			(14,023)						(13,719)						(17,666)						(24,539)						(19,224)
Portfolio Cash (Adjusted) NOI			$	257,335					$	264,362					$	274,280					$	272,114					$	275,415
Interest income			6,748						5,904						5,494						5,493						5,963
Portfolio Income			$	264,083					$	270,266					$	279,774					$	277,607					$	281,378
Interest income			(6,748)						(5,904)						(5,494)						(5,493)						(5,963)
Adjustment to Portfolio NOI			14,023						13,719						17,666						24,539						19,224
Non-SS Portfolio NOI			(39,042)						(43,449)						(44,300)						(51,605)						(49,512)
SS Portfolio NOI			$	232,316					$	234,632					$	247,646					$	245,048					$	245,127
Non-cash adjustment to SS Portfolio NOI			(11,134)						(9,418)						(11,885)						(12,872)						(12,769)
SS Portfolio Cash (Adjusted) NOI			$	221,182					$	225,214					$	235,761					$	232,176					$	232,358

			20

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Reconciliations
In thousands

Life Science

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Net income (loss)			$	60,326					$	62,419					$	72,249					$	78,794					$	393,487
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	60,326					$	62,419					$	72,249					$	78,794					$	393,487
Interest expense			46						36						—						—						—
Depreciation and amortization			79,570						78,237						78,138						79,673						70,141
Transaction costs			—						13						292						35						40
Loss (gain) on sales of real estate, net			—						—						(3,856)						—						—
Other expense (income), net			(22)						(1)						9						(29)						(311,912)
Equity loss (income) from unconsolidated JVs			(630)						(470)						(966)						(148)						877
Healthpeak's share of unconsolidated JVs NOI			1,058						967						948						784						2,161
Noncontrolling interests' share of consolidated JVs NOI			(57)						(49)						(38)						(43)						(34)
Portfolio NOI			$	140,291					$	141,152					$	146,776					$	159,066					$	154,760
Adjustment to Portfolio NOI			(11,021)						(11,392)						(14,112)						(21,644)						(15,221)
Portfolio Cash (Adjusted) NOI(1)			$	129,270					$	129,760					$	132,664					$	137,422					$	139,539
Adjustment to Portfolio NOI			11,021						11,392						14,112						21,644						15,221
Non-SS Portfolio NOI			(22,694)						(23,664)						(26,017)						(34,257)						(30,025)
SS Portfolio NOI			$	117,597					$	117,488					$	120,759					$	124,809					$	124,735
Non-cash adjustment to SS Portfolio NOI			(9,141)						(8,524)						(9,589)						(10,874)						(10,469)
SS Portfolio Cash (Adjusted) NOI			$	108,456					$	108,964					$	111,170					$	113,935					$	114,266

Medical Office

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Net income (loss)			$	58,632					$	27,064					$	58,417					$	56,929					$	47,663
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	58,632					$	27,064					$	58,417					$	56,929					$	47,663
Interest expense			1,104						852						1,036						1,930						1,964
Depreciation and amortization			66,189						68,232						67,773						68,873						70,917
Transaction costs			—						28						4						70						94
Impairments and loan loss (reserves) recoveries, net			1,952						19,625						—						—						—
Loss (gain) on sales of real estate, net			(14,635)						(717)						—						(10,340)						(554)
Other expense (income), net			30						241						(10,937)						(1,264)						(154)
Equity loss (income) from unconsolidated JVs			(220)						(245)						(200)						(211)						(206)
Healthpeak's share of unconsolidated JVs NOI			432						462						433						460						443
Noncontrolling interests' share of consolidated JVs NOI			(6,295)						(6,302)						(6,218)						(6,217)						(6,410)
Portfolio NOI			$	107,189					$	109,240					$	110,308					$	110,230					$	113,757
Adjustment to Portfolio NOI			(3,626)						(3,566)						(3,546)						(2,949)						(4,079)
Portfolio Cash (Adjusted) NOI(1)			$	103,563					$	105,674					$	106,762					$	107,281					$	109,678
Adjustment to Portfolio NOI			3,626						3,566						3,546						2,949						4,079
Non-SS Portfolio NOI			(13,102)						(15,244)						(14,135)						(13,726)						(15,597)
SS Portfolio NOI			$	94,087					$	93,996					$	96,173					$	96,504					$	98,160
Non-cash adjustment to SS Portfolio NOI			(2,717)						(2,437)						(2,296)						(1,998)						(2,300)
SS Portfolio Cash (Adjusted) NOI			$	91,370					$	91,559					$	93,877					$	94,506					$	95,860

			21

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Reconciliations
In thousands

CCRC

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Net income (loss)			$	(12,170)					$	(11,498)					$	(2,965)					$	(10,170)					$	(19,821)
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	(12,170)					$	(11,498)					$	(2,965)					$	(10,170)					$	(19,821)
Interest expense			1,936						1,923						1,865						1,876						1,887
Depreciation and amortization			31,416						31,645						31,822						31,943						32,132
Transaction costs			—						356						—						64						594
Other expense (income), net			(114)						314						(6,511)						(630)						7,086
Government grant income			15						—						6,552						209						4
Equity loss (income) from unconsolidated JVs			(845)						—						(539)						—						—
Healthpeak's share of unconsolidated JVs NOI			(32)						347						333						—						—
Portfolio NOI			$	20,206					$	23,087					$	30,557					$	23,292					$	21,882
Adjustment to Portfolio NOI			724						1,271						—						—						—
Portfolio Cash (Adjusted) NOI(1)			$	20,930					$	24,358					$	30,557					$	23,292					$	21,882
Adjustment to Portfolio NOI			(724)						(1,271)						—						—						—
Non-SS Portfolio NOI			426						61						157						443						350
SS Portfolio NOI			$	20,632					$	23,148					$	30,714					$	23,735					$	22,232
Non-cash adjustment to SS Portfolio NOI			724						1,543						—						—						—
SS Portfolio Cash (Adjusted) NOI			$	21,356					$	24,691					$	30,714					$	23,735					$	22,232

Other

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Net income (loss)			$	9,061					$	7,671					$	5,709					$	5,395					$	(1,801)
Loss (income) from discontinued operations			—						—						—						—						—
Income (loss) from continuing operations			$	9,061					$	7,671					$	5,709					$	5,395					$	(1,801)
Interest income			(6,748)						(5,904)						(5,494)						(5,493)						(5,963)
Transaction costs			—						27						—						—						—
Impairments and loan loss (reserves) recoveries, net			(1,667)						(923)						132						139						3,407
Loss (gain) on sales of real estate, net			—						—						—						—						4,703
Other expense (income), net			(1)						(3)						32						(18)						—
Equity loss (income) from unconsolidated JVs			(632)						(868)						(379)						(23)						(346)
Healthpeak's share of unconsolidated JVs NOI			3,659						4,602						4,305						4,065						4,240
Portfolio NOI			$	3,672					$	4,602					$	4,305					$	4,065					$	4,240
Adjustment to Portfolio NOI			(100)						(32)						(8)						54						76
Portfolio Cash (Adjusted) NOI			$	3,572					$	4,570					$	4,297					$	4,119					$	4,316
Interest income			6,748						5,904						5,494						5,493						5,963
Portfolio Income			$	10,320					$	10,474					$	9,791					$	9,612					$	10,279
Interest income			(6,748)						(5,904)						(5,494)						(5,493)						(5,963)
Adjustment to Portfolio NOI			100						32						8						(54)						(76)
Non-SS Portfolio NOI			(3,672)						(4,602)						(4,305)						(4,065)						(4,240)
SS Portfolio NOI			$	—					$	—					$	—					$	—					$	—
SS Portfolio Cash (Adjusted) NOI			$	—					$	—					$	—					$	—					$	—

			22

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Reconciliations
In thousands

Corporate Non-Segment

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Net income (loss)			$	(53,943)					$	(53,080)					$	(58,067)					$	(58,655)					$	(61,542)
Loss (income) from discontinued operations			(601)						(3,633)						(317)						(2,992)						1,298
Income (loss) from continuing operations			$	(54,544)					$	(56,713)					$	(58,384)					$	(61,647)					$	(60,244)
Interest expense			32,819						33,740						34,685						38,061						40,227
General and administrative			23,270						26,043						23,831						24,781						24,549
Transaction costs			—						—						—						443						—
Loss (gain) on debt extinguishments			667						—						—						—						—
Other expense (income), net			(1,563)						(1,213)						(909)						(920)						(698)
Income tax expense (benefit)			(649)						(1,857)						777						(718)						(3,834)
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.

			23

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Reconciliations
In thousands

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

For the nine months ended September 30, 2022

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Net income (loss)						$	544,530					$	163,007					$	(32,957)					$	9,304					$	(178,262)					$	505,622
Loss (income) from discontinued operations						—						—						—						—						(2,011)						(2,011)
Income (loss) from continuing operations						$	544,530					$	163,007					$	(32,957)					$	9,304					$	(180,273)					$	503,611
Interest income						—						—						—						(16,950)						—						(16,950)
Interest expense						—						4,931						5,629						—						112,971						123,531
Depreciation and amortization						227,952						207,563						95,897						—						—						531,412
General and administrative						—						—						—						—						73,161						73,161
Transaction costs						367						168						658						—						443						1,636
Impairments and loan loss (reserves) recoveries, net						—						—						—						3,678						—						3,678
Loss (gain) on sales of real estate, net						(3,856)						(10,894)						—						4,703						—						(10,047)
Other expense (income), net						(311,932)						(12,354)						(55)						13						(2,527)						(326,855)
Income tax expense (benefit)						—						—						—						—						(3,775)						(3,775)
Government grant income						—						—						6,765						—						—						6,765
Healthpeak's share of unconsolidated joint venture NOI						3,893						1,337						334						12,611						—						18,175
Noncontrolling interests' share of consolidated joint venture NOI						(115)						(18,846)						—						—						—						(18,961)
Equity loss (income) from unconsolidated JVs						(237)						(617)						(539)						(748)						—						(2,141)
Portfolio NOI						$	460,602					$	334,295					$	75,732					$	12,611					$	—					$	883,240
Adjustment to NOI						(50,977)						(10,574)						—						120						—						(61,431)
Portfolio Cash (Adjusted) NOI						$	409,625					$	323,721					$	75,732					$	12,731					$	—					$	821,809
Interest Income						—						—						—						16,950						—						16,950
Portfolio Income						$	409,625					$	323,721					$	75,732					$	29,681					$	—					$	838,759
Interest income						—						—						—						(16,950)												(16,950)
Adjustment to NOI						50,977						10,574						—						(120)						—						61,431
Non-SS Portfolio NOI						(115,154)						(60,061)						949						(12,611)						—						(186,877)
SS Portfolio NOI(1)						$	345,448					$	274,234					$	76,681					$	—					$	—					$	696,363
Non-cash adjustment to SS Portfolio NOI						(28,748)						(5,319)						—						—						—						(34,067)
SS Portfolio Cash (Adjusted) NOI(1)						$	316,700					$	268,915					$	76,681					$	—					$	—					$	662,296

			24

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Reconciliations
In thousands

For the nine months ended September 30, 2021

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Net income (loss)						$	182,103					$	328,975					$	(28,911)					$	31,673					$	(20,486)					$	493,354
Loss (income) from discontinued operations						—						—						—						—						(384,569)						(384,569)
Income (loss) from continuing operations						$	182,103					$	328,975					$	(28,911)					$	31,673					$	(405,055)					$	108,785
Interest income						—						—						—						(31,869)						—						(31,869)
Interest expense						196						1,985						5,778						—						113,470						121,429
Depreciation and amortization						224,958						187,512						93,702						—						—						506,172
General and administrative						—						—						—						—						72,260						72,260
Transaction costs						11						295						1,090						21						—						1,417
Impairments and loan loss (reserves) recoveries, net						—						1,952						—						2,506						—						4,458
Loss (gain) on sales of real estate, net						—						(189,873)						—						—						—						(189,873)
Loss (gain) on debt extinguishments						—						—						—						—						225,824						225,824
Other expense (income), net						(54)						2,483						(2,456)						(482)						(5,095)						(5,604)
Income tax expense (benefit)						—						—						—						—						(1,404)						(1,404)
Government grant income						—						—						1,412						—						—						1,412
Healthpeak's share of unconsolidated joint venture NOI						2,954						1,247						118						12,916						—						17,235
Noncontrolling interests' share of consolidated joint venture NOI						(156)						(18,990)						—						—						—						(19,146)
Equity loss (income) from unconsolidated JVs						(648)						(549)						(1,484)						(1,836)						—						(4,517)
Portfolio NOI						$	409,364					$	315,037					$	69,249					$	12,929					$	—					$	806,579
Adjustment to NOI						(35,197)						(7,553)						1,971						(15)						—						(40,794)
Portfolio Cash (Adjusted) NOI						$	374,167					$	307,484					$	71,220					$	12,914					$	—					$	765,785
Interest Income						—						—						—						31,869						—						31,869
Portfolio Income						$	374,167					$	307,484					$	71,220					$	44,783					$	—					$	797,654
Interest income						—						—						—						(31,869)						—						(31,869)
Adjustment to NOI						35,197						7,553						(1,971)						15						—						40,794
Non-SS Portfolio NOI						(80,175)						(50,752)						1,420						(12,929)						—						(142,436)
SS Portfolio NOI(1)						$	329,189					$	264,285					$	70,669					$	—					$	—					$	664,143
Non-cash adjustment to SS Portfolio NOI						(26,962)						(6,552)						1,935						—						—						(31,579)
SS Portfolio Cash (Adjusted) NOI(1)						$	302,227					$	257,733					$	72,604					$	—					$	—					$	632,564

______________________________________

(1)The property count used for SS Portfolio NOI and SS Portfolio Cash (Adjusted) NOI differed for the three and nine months ended September 30, 2022 and 2021.

			25

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Reconciliations
In thousands

Healthpeak's Share of Unconsolidated Joint Venture's NOI

Total Portfolio

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Equity income (loss) from unconsolidated JV			$	2,327					$	1,583					$	2,084					$	382					$	(325)
Depreciation and amortization			4,722						5,041						5,135						5,210						8,704
General and administrative			25						6						30						71						177
Loss (gain) on sales of real estate, net			(890)						329						(210)						150						239
Other expense (income), net			(371)						(130)						(1,067)						(592)						(2,069)
Income tax expense (benefit)			(696)						(451)						47						88						118
Healthpeak's Share of unconsolidated JVs NOI			$	5,117					$	6,378					$	6,019					$	5,309					$	6,844

Life Science

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Equity income (loss) from unconsolidated JV			$	630					$	470					$	966					$	148					$	(877)
Depreciation and amortization			811						754						760						776						3,709
Other expense (income), net			(383)						(257)						(778)						(140)						(794)
General and administrative			—						—						—						—						123
Healthpeak's Share of unconsolidated JVs NOI			$	1,058					$	967					$	948					$	784					$	2,161

Medical Office

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Equity income (loss) from unconsolidated JV			$	220					$	245					$	200					$	211					$	206
Depreciation and amortization			207						228						221						226						225
General and administrative			3						4						7						17						5
Loss (gain) on sales of real estate, net			—						(17)						(2)						—						—
Other expense (income), net			—						(5)						—						—						—
Income tax expense (benefit)			2						7						7						6						7
Healthpeak's Share of unconsolidated JVs NOI			$	432					$	462					$	433					$	460					$	443

			26

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Reconciliations
In thousands

CCRC

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Equity income (loss) from unconsolidated JV			$	845					$	—					$	539					$	—					$	—
Loss (gain) on sales of real estate, net			(890)						346						(208)						150						—
Other expense (income), net			13						1						2						(150)						—
Healthpeak's Share of unconsolidated JVs NOI			$	(32)					$	347					$	333					$	—					$	—

Other

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Equity income (loss) from unconsolidated JV			$	632					$	868					$	379					$	23					$	346
Depreciation and amortization			3,704						4,059						4,154						4,208						4,770
General and administrative			22						2						23						54						49
Other expense (income), net			(1)						131						(291)						(302)						(1,036)
Income tax expense (benefit)			(698)						(458)						40						82						111
Healthpeak's Share of unconsolidated JVs NOI			$	3,659					$	4,602					$	4,305					$	4,065					$	4,240

			27

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Reconciliations
In thousands

Healthpeak's Share of Unconsolidated Joint Venture's NOI

For the nine months ended September 30, 2022

						Life Science						Medical Office						CCRC						Other												Total
Equity income (loss) from unconsolidated JV						$	237					$	617					$	539					$	748											$	2,141
Depreciation and amortization						5,245						672						—						13,132												19,049
General and administrative						123						30						—						126												279
Loss (gain) on sales of real estate, net						—						(2)						181						—												179
Other expense (income), net						(1,712)						—						(386)						(1,628)												(3,726)
Income tax expense (benefit)						—						20						—						233												253
Healthpeak's Share of unconsolidated JVs NOI						$	3,893					$	1,337					$	334					$	12,611											$	18,175

For the nine months ended September 30, 2021

						Life Science						Medical Office						CCRC						Other												Total
Equity income (loss) from unconsolidated JV						$	648					$	549					$	1,484					$	1,836											$	4,517
Depreciation and amortization						2,268						657						—						9,115												12,040
General and administrative						1						28						—						200												229
Loss (gain) on sales of real estate, net						—						—						(1,363)						—												(1,363)
Other expense (income), net						37						—						(3)						3,423												3,457
Income tax expense (benefit)						—						13						—						(1,658)												(1,645)
Healthpeak's Share of unconsolidated JVs NOI						$	2,954					$	1,247					$	118					$	12,916											$	17,235

			28

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Reconciliations
In thousands

Noncontrolling Interests' Share of Consolidated Joint Venture's NOI

Total Portfolio

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	7,195					$	3,815					$	3,730					$	3,955					$	4,016
Gain on sales of real estate, net			(3,385)						76						(12)						—						—
Depreciation and amortization			4,790						4,768						4,693						4,710						4,696
Other expense (income), net			105						74						195						(26)						82
Dividends attributable to noncontrolling interest			(2,353)						(2,382)						(2,350)						(2,379)						(2,350)
Noncontrolling interests' share of consolidated JVs NOI			$	6,352					$	6,351					$	6,256					$	6,260					$	6,444

Life Science

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	929					$	956					$	916					$	946					$	922
Depreciation and amortization			27						25						20						25						13
Other expense (income), net			4						—						3						2						—
Dividends attributable to noncontrolling interest			(903)						(932)						(901)						(930)						(901)
Noncontrolling interests' share of consolidated JVs NOI			$	57					$	49					$	38					$	43					$	34

Medical Office

			Three Months Ended
			September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	6,266					$	2,859					$	2,814					$	3,009					$	3,094
Gain on sales of real estate, net			(3,385)						76						(12)						—						—
Depreciation and amortization			4,763						4,743						4,673						4,685						4,683
Other expense (income), net			101						74						192						(28)						82
Dividends attributable to noncontrolling interest			(1,450)						(1,450)						(1,449)						(1,449)						(1,449)
Noncontrolling interests' share of consolidated JVs NOI			$	6,295					$	6,302					$	6,218					$	6,217					$	6,410

			29

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Reconciliations
In thousands

Noncontrolling Interests' Share of Consolidated Joint Venture's NOI

For the nine months ended September 30, 2022

						Life Science						Medical Office																								Total
Income (loss) from continuing operations attributable to noncontrolling interest						$	2,784					$	8,917																							$	11,701
Gain on sales of real estate, net						—						(12)																								(12)
Depreciation and amortization						59						14,041																								14,100
Other expense (income), net						5						247																								252
Dividends attributable to noncontrolling interest						(2,733)						(4,347)																								(7,080)
Noncontrolling interests' share of consolidated JVs NOI						$	115					$	18,846																							$	18,961

For the nine months ended September 30, 2021

						Life Science						Medical Office																								Total
Income (loss) from continuing operations attributable to noncontrolling interest						$	2,770					$	11,266																							$	14,036
Gain on sales of real estate, net						—						(3,477)																								(3,477)
Depreciation and amortization						78						14,521																								14,599
Other expense (income), net						46						590																								636
Dividends attributable to noncontrolling interest						(2,738)						(3,910)																								(6,648)
Noncontrolling interests' share of consolidated JVs NOI						$	156					$	18,990																							$	19,146

			30

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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
						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Real Estate Revenues - SS(2)						$	119,037					$	118,868					$	128,112					$	125,569					$	122,146
Pro forma adjustments to exclude government grants						(15)						—						(6,552)						(209)						(4)
Pro forma Portfolio Real Estate Revenues - SS(3)						$	119,022					$	118,868					$	121,560					$	125,360					$	122,143

Pro Forma SS Portfolio Cash Real Estate Revenues						Three Months Ended
						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Cash Real Estate Revenues - SS(2)						$	119,037					$	118,868					$	128,112					$	125,569					$	122,146
Pro forma adjustments to exclude government grants						(15)						—						(6,552)						(209)						(4)
Pro forma Portfolio Cash Real Estate Revenues - SS(3)						$	119,022					$	118,868					$	121,560					$	125,360					$	122,143

Pro Forma SS Portfolio NOI						Three Months Ended
						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
SS Portfolio NOI(4)						$	20,632					$	23,148					$	30,714					$	23,735					$	22,232
Pro forma adjustment to exclude government grants						(15)						—						(6,552)						(209)						(4)
Pro forma SS Portfolio NOI(3)						$	20,617					$	23,148					$	24,162					$	23,526					$	22,228

Pro Forma SS Portfolio Cash (Adjusted) NOI						Three Months Ended
						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
SS Portfolio Cash (Adjusted) NOI(4)						$	21,356					$	24,691					$	30,714					$	23,735					$	22,232
Pro forma adjustment to exclude government grants						(15)						—						(6,552)						(209)						(4)
Pro forma SS Portfolio Cash (Adjusted) NOI(3)						$	21,341					$	24,691					$	24,162					$	23,526					$	22,228

______________________________________

(1)May not foot due to rounding.

(2)See page 12 and 13 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 page 20 through 23 of this document for a reconciliation of SS Portfolio NOI and SS Portfolio Cash (Adjusted) NOI.

			31

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Reconciliations
In thousands, except per month data

REVPOR CCRC(1)

						Three Months Ended
REVPOR CCRC						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Cash Real Estate Revenues(2)						$	119,037					$	118,868					$	128,445					$	125,569					$	122,146
Other adjustments to REVPOR CCRC(3)						—						—						(333)						—						—
REVPOR CCRC revenues						$	119,037					$	118,868					$	128,112					$	125,569					$	122,146
Average occupied units/month						5,910						5,852						5,939						5,952						5,894
REVPOR CCRC per month(4)						$	6,714					$	6,770					$	7,190					$	7,032					$	6,908

						Three Months Ended
REVPOR CCRC excluding NREF Amortization						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
REVPOR CCRC revenues						$	119,037					$	118,868					$	128,112					$	125,569					$	122,146
NREF Amortization						(18,900)						(19,745)						(18,957)						(19,444)						(19,706)
REVPOR CCRC revenues excluding NREF Amortization						$	100,137					$	99,123					$	109,155					$	106,125					$	102,440
Average occupied units/month						5,910						5,852						5,939						5,952						5,894
REVPOR CCRC excluding NREF Amortization per month(4)						$	5,648					$	5,646					$	6,126					$	5,943					$	5,794

						Three Months Ended
SS REVPOR CCRC						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
SS REVPOR CCRC revenues(5)						$	119,037					$	118,868					$	128,112					$	125,569					$	122,146
SS average occupied units/month						5,910						5,852						5,939						5,952						5,894
SS REVPOR CCRC per month(4)						$	6,714					$	6,770					$	7,190					$	7,032					$	6,908

						Three Months Ended
SS REVPOR CCRC excluding NREF Amortization						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
SS REVPOR CCRC revenues(5)						$	119,037					$	118,868					$	128,112					$	125,569					$	122,146
NREF Amortization						(18,900)						(19,745)						(18,957)						(19,444)						(19,706)
SS REVPOR CCRC revenues excluding NREF Amortization						$	100,137					$	99,123					$	109,155					$	106,125					$	102,440
SS Average occupied units/month						5,910						5,852						5,939						5,952						5,894
SS REVPOR CCRC excluding NREF Amortization per month(4)						$	5,648					$	5,646					$	6,126					$	5,943					$	5,794

						Three Months Ended
PRO FORMA SS REVPOR CCRC						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Pro Forma SS REVPOR CCRC revenues(6)						$	119,022					$	118,868					$	121,560					$	125,360					$	122,143
SS average occupied units/month						5,910						5,852						5,939						5,952						5,894
SS REVPOR CCRC per month(4)						$	6,713					$	6,770					$	6,822					$	7,020					$	6,908

			32

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Reconciliations
In thousands, except per month data

						Three Months Ended
PRO FORMA SS REVPOR CCRC excluding NREF Amortization						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Pro Forma SS REVPOR CCRC revenues(6)						$	119,022					$	118,868					$	121,560					$	125,360					$	122,143
NREF Amortization						(18,900)						(19,745)						(18,957)						(19,444)						(19,706)
SS REVPOR CCRC revenues excluding NREF Amortization						$	100,122					$	99,123					$	102,603					$	105,916					$	102,436
Average occupied units/month						5,910						5,852						5,939						5,952						5,894
SS REVPOR CCRC excluding NREF Amortization per month(4)						$	5,647					$	5,646					$	5,758					$	5,931					$	5,794

_____________________________________

(1)May not foot due to rounding.

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

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

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

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

(6)See page 31 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.

			33

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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						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Real Estate Revenues(2)						$	17,109					$	17,972					$	18,360					$	18,215					$	18,839
Pro forma adjustments to exclude government grants						—						(739)						(315)						—						(183)
Pro forma Portfolio Real Estate Revenues(3)						$	17,109					$	17,232					$	18,045					$	18,215					$	18,657

						Three Months Ended
Pro Forma Portfolio Cash Real Estate Revenues						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Cash Real Estate Revenues(2)						$	17,121					$	17,968					$	18,383					$	18,301					$	18,905
Pro forma adjustments to exclude government grants						—						(739)						(315)						—						(183)
Pro forma Portfolio Cash Real Estate Revenues(3)						$	17,121					$	17,228					$	18,067					$	18,301					$	18,722

						Three Months Ended
Pro Forma Portfolio NOI						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio NOI(4)						$	3,672					$	4,602					$	4,305					$	4,065					$	4,240
Pro forma adjustments to exclude government grants						—						(739)						(315)						—						(183)
Pro forma Portfolio NOI(3)						$	3,672					$	3,863					$	3,990					$	4,065					$	4,058

						Three Months Ended
Pro Forma Portfolio Cash (Adjusted) NOI						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Cash (Adjusted) NOI(4)						$	3,572					$	4,570					$	4,297					$	4,119					$	4,316
Pro forma adjustments to exclude government grants						—						(739)						(315)						—						(183)
Pro forma Portfolio Cash (Adjusted) NOI(3)						$	3,572					$	3,831					$	3,981					$	4,119					$	4,134

______________________________________

(1)May not foot due to rounding.

(2)See page 12 and 13 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 page 20 through 23 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						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
Portfolio Cash Real Estate Revenues(2)						$	17,121					$	17,968					$	18,383					$	18,301					$	18,905
Other adjustments to REVPOR Other(3)						(3,509)						(3,863)						(2,201)						(2,280)						(2,371)
REVPOR Other revenues						$	13,612					$	14,105					$	16,182					$	16,021					$	16,534
Average occupied units/month						1,134						1,142						1,261						1,261						1,289
REVPOR Other per month(4)						$	4,000					$	4,118					$	4,278					$	4,234					$	4,276

						Three Months Ended
Pro Forma REVPOR Other						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022						September 30, 2022
REVPOR Other revenues						$	13,612					$	14,105					$	16,182					$	16,021					$	16,534
Pro Forma adjustments to REVPOR Other(5)						—						(532)						(258)						—						(168)
Pro Forma REVPOR Other revenues						$	13,612					$	13,573					$	15,923					$	16,021					$	16,365
Average occupied units/month						1,134						1,142						1,261						1,261						1,289
Pro Forma REVPOR Other per month(4)						$	4,000					$	3,963					$	4,210					$	4,234					$	4,232

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(1)May not foot due to rounding.

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

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

(4)Represents the quarter REVPOR 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 nine months ended September 30, 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 nine months ended September 30, 2022 and 2021 is presented below (in thousands):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Revenues:
Rental and related revenues			$	—					$	694					$	—					$	7,535
Resident fees and services			1,284						8,507						6,765						111,777
Total revenues			1,284						9,201						6,765						119,312
Costs and expenses:
Interest expense			—						47						—						3,900
Operating			1,334						13,010						6,451						118,175
Transaction costs			—						—						—						76
Impairments and loan loss reserves (recoveries), net			—						21,740						—						32,736
Total costs and expenses			1,334						34,797						6,451						154,887
Other income (expense):
Gain (loss) on sales of real estate, net			(1,131)						26,758						1,361						408,658
Other income (expense), net			(7)						(863)						12						5,150
Total other income (expense), net			(1,138)						25,895						1,373						413,808
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures			(1,188)						299						1,687						378,233
Income tax benefit (expense)			(110)						221						260						1,345
Equity income (loss) from unconsolidated joint ventures			—						81						64						4,991
Income (loss) from discontinued operations			$	(1,298)					$	601					$	2,011					$	384,569

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