Published: 2022-08-02 00:00:00 ET

HTTP/1.1 200 OK HTTP/1.1 200 OK X-Crawlera-Slave: 192.3.180.177:3128 X-Crawlera-Version: 1.60.1 accept-ranges: bytes content-type: text/html last-modified: Tue, 02 Aug 2022 20:25:20 GMT server: AmazonS3 x-amz-id-2: fdIJ0H2mj6cZ4qvgfi0/vkO7sQUASRT1U33pvwNGfgTApbgNwvlynnZI2icezPlweQZZ2B79gjE= x-amz-meta-mode: 33188 x-amz-meta-s3cmd-attrs: uid:504/gname:fitrprnt/uname:fitrprnt/gid:504/mode:33184/mtime:1659471863/atime:1659471863/md5:83baa73f0315647d3a938f6b5e4f132a/ctime:1659471910 x-amz-replication-status: COMPLETED x-amz-request-id: NW3HZNDGHKQPHENN x-amz-version-id: FDiUwx2uihjIwEKAkV6ticayF8RKH.Hb x-content-type-options: nosniff x-frame-options: SAMEORIGIN x-xss-protection: 1; mode=block x-akamai-transformed: 9 - 0 pmb=mTOE,2 expires: Thu, 06 Apr 2023 03:35:17 GMT cache-control: max-age=0, no-cache, no-store pragma: no-cache date: Thu, 06 Apr 2023 03:35:17 GMT vary: Accept-Encoding akamai-x-true-ttl: -1 strict-transport-security: max-age=31536000 ; includeSubDomains ; preload set-cookie: ak_bmsc=44112C1845231700B3C8A1F9307B6E49~000000000000000000000000000000~YAAQBWdNaE7hniqHAQAATgaiVBPYIoWog/lsL9MPoabf2nZFe9FkPKBq/5iwFk3401humqKbYF+vuU5Sr2K6MeDMj+zawvR+jSgYrNuYeqzznV9Yn8cU7HlO76KCr9WwZcQPKBonihwMXm2LbmeondcDHhzV6Rvdg61XTD+xYG7oE6HGDO0Z6m+dIK0gUbhQf7RxE6Cvg/qmxs6MqZ+nj2cQFoMFgdycmIglVElhYDd/RYXyw2J0YlYemsNuzqVvQQ56INEmtrMI0u0LKITWhE3p354TdIga4j0Kz2EZftWvI1EsVSMfbbGODvwrDD8Ocp4ynWdneiTrHs9UJTTtJJ4qRxsWOGd98OBVfxnWqQyHUU7esiaGM/uzp1U6bV4rnyxw/e/J2Q==; Domain=.sec.gov; Path=/; Expires=Thu, 06 Apr 2023 05:35:16 GMT; Max-Age=7199; HttpOnly set-cookie: bm_mi=27B78AFAA7C42AE0F7FCC4DECC2AC47C~YAAQBWdNaE/hniqHAQAATgaiVBO/+b3cPrVkUnLhHl8PSskmSuYClBtrHtcyIdggg/+i/xy9MaLu66leOhvXftGbyNhYBrhEFROPXmPl+kAdoDrI9796EAO20PU064+G2mb+tXulfvImT5cc73wwc+GEuoDmYSdLwH25XLX8GLBwbMvkt9ZiAWtSjwnXleh6AHfv+fkcPwLHI2gl78NwH+elU3S383w2k1yoPEyY3m64FV+8zC+iqMLS26R1s57hOjo/6WJtQBNLkjjpmXc0ewONiXBb6QjdTzQYVmYuwqUnVjvwGuT4yJqLnSPSvPB6kUpQl+lMg/n/3ER5SPrTTFroqL5hSsNXXoT/KGpoO9b0BJgpcYeqAO+XI384hN33XddukSFX~1; Domain=.sec.gov; Path=/; Expires=Thu, 06 Apr 2023 03:35:17 GMT; Max-Age=0; Secure Transfer-Encoding: chunked Proxy-Connection: close Connection: close EX-99.3 4 ex99306302022.htm EX-99.3

Exhibit 99.3

 

  

 

 

Discussion and

Reconciliation of Non-

GAAP Financial Measures

 

June 30, 2022

 

 

 

 

 

(Unaudited)

---

Definitions

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

Adjusted Funds From Operations (“AFFO”) AFFO is defined as FFO as Adjusted after excluding the impact of the following: (i) 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. 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. Although our AFFO computation may not be comparable to that of 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. 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. 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.

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.

			2

---

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.

			3

---

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”). 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.

			4

---

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 include our share of income (loss) generated by unconsolidated joint ventures and exclude noncontrolling interests’ share of income (loss) generated by consolidated joint ventures. 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 Cash Operating Expenses Consolidated cash operating expenses plus the Company's pro rata share of cash operating expenses from its unconsolidated JVs less noncontrolling interests' pro rata share of cash operating expenses from consolidated JVs. Portfolio Cash Operating Expenses represent property level operating expenses (which exclude transition costs) 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.

Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues 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.

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. REVPOR CCRC is a non-GAAP supplemental financial measure 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. REVPOR Other is a non-GAAP supplemental financial measure used to evaluate the revenue-generating capacity and profit

			5

---

Definitions

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.

---

Reconciliations
In thousands, except per share data

Funds From Operations

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
Net income (loss) applicable to common shares			$	68,057					$	275,993					$	137,693					$	419,336
Real estate related depreciation and amortization			180,489						171,459						358,222						328,997
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures			5,210						2,869						10,345						7,322
Noncontrolling interests’ share of real estate related depreciation and amortization			(4,844)						(4,923)						(9,685)						(9,809)
Loss (gain) on sales of depreciable real estate, net(1)			(12,903)						(297,476)						(16,688)						(557,138)
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures			129						(5,866)						(150)						(5,866)
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net			—						2,179						12						2,179
Loss (gain) upon change of control, net			—						—						—						(1,042)
Taxes associated with real estate dispositions			16						1,693						(166)						2,183
Impairments (recoveries) of depreciable real estate, net			—						3,743						—						3,743
Nareit FFO applicable to common shares			236,154						149,671						479,583						189,905
Distributions on dilutive convertible units and other			2,352						—						4,704						—
Diluted Nareit FFO applicable to common shares			$	238,506					$	149,671					$	484,287					$	189,905
Weighted average shares outstanding - diluted Nareit FFO			547,132						539,193						547,018						539,081
Impact of adjustments to Nareit FFO:
Transaction-related items			$	596					$	1,265					$	893					$	5,379
Other impairments (recoveries) and other losses (gains), net(2)			139						1,845						(8,770)						5,087
Restructuring and severance related charges			—						—						—						2,463
Loss (gain) on debt extinguishments			—						60,865						—						225,157
Casualty-related charges (recoveries), net			(411)						3,596						(411)						4,644
Total adjustments			324						67,571						(8,288)						242,730
FFO as Adjusted applicable to common shares			236,478						217,242						471,295						432,635
Distributions on dilutive convertible units and other			2,351						2,144						4,719						4,067
Diluted FFO as Adjusted applicable to common shares			$	238,829					$	219,386					$	476,014					$	436,702
Weighted average shares outstanding - diluted FFO as Adjusted			547,132						546,519						547,018						546,407
Diluted earnings per common share			$	0.13					$	0.51					$	0.26					$	0.78
Depreciation and amortization			0.33						0.32						0.66						0.60
Loss (gain) on sales of depreciable real estate, net			(0.02)						(0.56)						(0.03)						(1.04)
Loss (gain) upon change of control, net			—						—						—						0.00
Taxes associated with real estate dispositions			0.00						0.00						0.00						0.00
Impairments (recoveries) of depreciable real estate, net			—						0.01						—						0.01
Diluted Nareit FFO per common share			$	0.44					$	0.28					$	0.89					$	0.35
Transaction-related items			0.00						0.00						0.00						0.01
Other impairments (recoveries) and other losses (gains), net(2)			0.00						0.00						(0.02)						0.01
Restructuring and severance related charges			—						—						—						0.00
Loss (gain) on debt extinguishments			—						0.11						—						0.42
Casualty-related charges (recoveries), net			0.00						0.01						0.00						0.01
Diluted FFO as Adjusted per common share			$	0.44					$	0.40					$	0.87					$	0.80

			7

---

Reconciliations
In thousands, except per share data

Adjusted Funds From Operations

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
FFO as Adjusted applicable to common shares			$	236,478					$	217,242					$	471,295					$	432,635
Amortization of stock-based compensation			5,300						5,095						10,021						9,459
Amortization of deferred financing costs			2,689						2,121						5,377						4,334
Straight-line rents			(12,713)						(6,201)						(23,872)						(15,336)
AFFO capital expenditures			(27,906)						(22,422)						(50,745)						(43,132)
Deferred income taxes			(1,188)						(2,771)						(927)						(4,493)
Other AFFO adjustments			(7,065)						(4,026)						(13,524)						(9,628)
AFFO applicable to common shares			195,595						189,038						397,625						373,839
Distributions on dilutive convertible units and other			1,649						1,541						3,296						2,862
Diluted AFFO applicable to common shares			$	197,244					$	190,579					$	400,921					$	376,701
Weighted average shares outstanding - diluted AFFO			545,307						544,694						545,193						544,582

______________________________________

(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 32 of this document for the three and six months ended June 30, 2022.

(2)The six months ended June 30, 2022 includes the following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) a $23 million gain on sale of a hospital that was in a direct financing lease and (ii) $14 million of expenses incurred for tenant relocation and other costs associated with a planned MOB demolition. The three and six months ended June 30, 2021 includes the following: (i) a $7 million goodwill impairment charge in connection with our senior housing triple-net asset sales which is reported in income (loss) from discontinued operations in the Consolidated Statements of Operations and (ii) a $6 million of accelerated recognition of a mark-to-market discount, less loan fees, resulting from prepayments on loans receivable which is included in interest income in the Consolidated Statements of Operations. The remaining activity for the three and six months ended June 30, 2022 and 2021 includes reserves for loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.

			8

---

Reconciliations
Per share data

Projected Future Operations(1)

			Full Year 2022
			Low						High
Diluted earnings per common share			$	0.97					$	1.03
Real estate related depreciation and amortization			1.32						1.32
Healthpeak's share of real estate related depreciation and amortization from unconsolidated joint ventures			0.04						0.04
Noncontrolling interests' share of real estate related depreciation and amortization			(0.04)						(0.04)
Loss (gain) on sales of real estate, net			(0.04)						(0.04)
Loss (gain) upon change of control, net			(0.55)						(0.55)
Diluted Nareit FFO per common share			$	1.70					$	1.76
Other impairments (recoveries) and other losses (gains), net			(0.02)						(0.02)
Diluted FFO as Adjusted per common share			$	1.68					$	1.74

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of August 2, 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 August 2, 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

---

Reconciliations
In millions

Projected SS Cash NOI(1)(2)

For the projected year 2022 (low)

						Life Science						Medical Office						CCRC						Other(3)						Corporate Adjustments						Total
Portfolio Cash (Adjusted) NOI(4)						$	543					$	426					$	104					$	15					$	(2)					$	1,085
Interest income						—						—						—						20						—						20
Portfolio Income						543						426						104						35						(2)						1,105
Interest income						—						—						—						(20)						—						(20)
Non-cash adjustments to cash NOI(5)						61						14						(1)						(2)						1						74
NOI						604						440						102						13						(1)						1,159
Non-SS NOI						(150)						(86)						1						(13)						1						(247)
SS NOI						454						354						104						—						—						912
Non-cash adjustments to SS NOI(5)						(35)						(7)						1						—						—						(41)
SS Cash (Adjusted) NOI						$	419					$	346					$	105					$	—					$	—					$	871
Addback adjustments(6)																																				288
Other income and expenses(7)																																				362
Costs and expenses(8)																																				(981)
Net income (loss)																																				$	540

For the projected year 2022 (high)

						Life Science						Medical Office						CCRC						Other(3)						Corporate Adjustments						Total
Portfolio Cash (Adjusted) NOI(4)						$	548					$	430					$	108					$	20					$	(1)					$	1,104
Interest income						—						—						—						25						—						25
Portfolio Income						548						430						108						45						(1)						1,129
Interest income						—						—						—						(25)						—						(25)
Non-cash adjustments to cash NOI(5)						62						14						(1)						2						1						78
NOI						610						444						106						22						—						1,183
Non-SS NOI						(151)						(87)						1						(22)						—						(259)
SS NOI						459						357						108						—						—						923
Non-cash adjustments to SS NOI(5)						(36)						(7)						1						—						—						(41)
SS Cash (Adjusted) NOI						$	423					$	350					$	109					$	—					$	—					$	882
Addback adjustments(6)																																				300
Other income and expenses(7)																																				359
Costs and expenses(8)																																				(965)
Net income (loss)																																				$	576

Continued

			10

---

Reconciliations
In millions

For the year ended December 31, 2021

						Life Science						Medical Office						CCRC						Other(3)						Corporate Adjustments and Discontinued Operations						Total
Portfolio Cash (Adjusted) NOI(4)						$	504					$	413					$	96					$	17					$	11					$	1,041
Interest income						—						—						—						38						—						38
Portfolio Income						504						413						96						55						11						1,079
Interest income						—						—						—						(38)						—						(38)
Non-cash adjustments to cash NOI(5)						47						11						(3)						—						(7)						47
NOI						551						424						92						18						3						1,088
Non-SS NOI						(113)						(78)						1						(18)						(3)						(210)
SS NOI						438						346						94						—						—						878
Non-cash adjustments to SS NOI(5)						(35)						(9)						3						—						—						(40)
SS Cash (Adjusted) NOI						$	403					$	338					$	97					$	—					$	—					$	838
Addback adjustments(6)																																				250
Other income and expenses(7)																																				666
Costs and expenses(8)																																				(1,172)
Other impairments (recoveries), net(9)																																				(56)
Net income (loss)																																				$	526

Projected SS Cash NOI Changes for the full year 2022

						Life Science						Medical Office						CCRC						Total
Low						4.00		%				2.50		%				8.00		%				3.50		%
High						5.00		%				3.50		%				12.00		%				5.00		%

______________________________________

(1)The foregoing projections reflect management's view of current and future market conditions as of August 2, 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 August 2, 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.

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

(3)Portfolio Cash NOI for Other represents the Company's share of its unconsolidated investment in SWF SH JV portfolio, with the low of $15 million and the high of $20 million.

(4)Represents rental and related revenues, tenant recoveries, resident fees and services, and other income from DFLs, less property level operating expenses, including our share of joint ventures.

(5)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.

(6)Represents non-SS NOI and non-cash adjustments to SS NOI.

(7)Represents interest income, gain (loss) on sales of real estate, net, other income (expense), net, income tax benefit (expense), and equity income (loss) from unconsolidated joint ventures, excluding NOI. The year ended December 31, 2021 includes discontinued operations.

(8)Represents interest expense, depreciation and amortization, general and administrative, transaction costs, and loss on debt extinguishments. The year ended December 31, 2021 includes discontinued operations.

(9)The majority of the balance represents the impairment of goodwill related to the disposition of senior housing triple-net and SHOP portfolios during the year ended December 31, 2021 and is included in discontinued operations.

			11

---

Reconciliations
In thousands

Enterprise Gross Assets and Portfolio Investment

			June 30, 2022
			Life Science						Medical Office						CCRC						Other												Discontinued Operations(1)						Corporate Non-segment						Total
Consolidated total assets(2)			$	7,599,695					$	4,736,477					$	2,091,055					$	760,710											$	10,251					$	120,015					$	15,318,203
Investments in and advances to unconsolidated JVs			(41,550)						(8,918)						—						(351,686)												—						—						(402,154)
Accumulated depreciation and amortization(3)			1,339,371						1,756,061						374,951						—												—						—						3,470,383
Consolidated Gross Assets			$	8,897,516					$	6,483,620					$	2,466,006					$	409,024											$	10,251					$	120,015					$	18,386,432
Healthpeak's share of unconsolidated JV gross assets			78,433						18,783						277						484,237												69						—						581,799
Enterprise Gross Assets			$	8,975,949					$	6,502,403					$	2,466,283					$	893,261											$	10,320					$	120,015					$	18,968,231
Land held for development			(589,547)						(4,335)						—						—												—						—						(593,882)
Fully depreciated real estate and intangibles			458,841						524,410						17,389						—												—						—						1,000,640
Non-real estate related assets(4)			(266,644)						(384,230)						(215,148)						(25,367)												(10,320)						(120,015)						(1,021,724)
Real estate intangible liabilities			(198,695)						(137,895)						—						—												—						—						(336,590)
Noncontrolling interests' share of consolidated JVs real estate and related intangibles			(4,344)						(387,044)						—						—												—						—						(391,388)
Portfolio Investment			$	8,375,560					$	6,113,309					$	2,268,524					$	867,894											$	—					$	—					$	17,625,287

______________________________________

(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 June 30, 2022 presented on page 7 within the Earnings Release and Supplemental Report for the quarter ended June 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.

 

			12

---

Reconciliations
In thousands

Revenues

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Life Science			$	177,527					$	184,213					$	184,170					$	194,055					$	207,771
Medical Office			165,295						171,482						174,264						177,263						179,308
CCRC			117,308						119,022						118,867						121,560						125,360
Other			16,108						6,748						5,904						5,494						5,493
Total revenues			$	476,238					$	481,465					$	483,205					$	498,372					$	517,932
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			87						15						—						6,552						209
Other			—						—						—						—						—
Government grant income			$	87					$	15					$	—					$	6,552					$	209
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						—						—						—						—
Other			(16,108)						(6,748)						(5,904)						(5,494)						(5,493)
Less: Interest income			$	(16,108)					$	(6,748)					$	(5,904)					$	(5,494)					$	(5,493)
Life Science			1,412						1,521						1,487						1,431						1,267
Medical Office			710						737						720						732						761
CCRC			2,415						—						—						—						—
Other			16,740						17,109						17,233						18,045						18,215
Healthpeak's share of unconsolidated JVs real estate revenues			$	21,277					$	19,367					$	19,440					$	20,208					$	20,243
Life Science			—						—						—						—						—
Medical Office			—						—						—						—						—
CCRC			—						—						—						333						—
Other			583						—						739						315						—
Healthpeak's share of unconsolidated JVs government grant income			$	583					$	—					$	739					$	648					$	—
Life Science			(75)						(82)						(70)						(57)						(62)
Medical Office			(8,825)						(8,954)						(8,658)						(8,820)						(8,943)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Noncontrolling interests' share of consolidated JVs real estate revenues			$	(8,900)					$	(9,036)					$	(8,728)					$	(8,877)					$	(9,005)
Life Science			178,863						185,652						185,588						195,429						208,976
Medical Office			157,181						163,265						166,325						169,175						171,126
CCRC			119,810						119,037						118,868						128,445						125,569
Other			17,323						17,109						17,972						18,360						18,215
Portfolio Real Estate Revenues			$	473,177					$	485,063					$	488,753					$	511,409					$	523,886
Life Science			(12,374)						(11,030)						(11,402)						(14,272)						(21,653)
Medical Office			(2,643)						(4,337)						(4,306)						(4,180)						(3,643)
CCRC			14						—						—						—						—
Other			6						12						(4)						23						86
Non-cash adjustments to Portfolio Real Estate Revenues			$	(14,997)					$	(15,355)					$	(15,712)					$	(18,429)					$	(25,210)

Continued

			13

---

Reconciliations
In thousands

Revenues

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Life Science			166,489						174,622						174,186						181,157						187,323
Medical Office			154,538						158,928						162,019						164,995						167,483
CCRC			119,824						119,037						118,868						128,445						125,569
Other			17,329						17,121						17,968						18,383						18,301
Portfolio Cash Real Estate Revenues			$	458,180					$	469,708					$	473,041					$	492,980					$	498,676
Life Science			12,374						11,030						11,402						14,272						21,653
Medical Office			2,643						4,337						4,306						4,180						3,643
CCRC			(14)						—						—						—						—
Other			(6)						(12)						4						(23)						(86)
Non-cash adjustments to Portfolio Real Estate Revenues			$	14,997					$	15,355					$	15,712					$	18,429					$	25,210
Life Science			(30,271)						(35,378)						(36,863)						(41,791)						(48,867)
Medical Office			(26,435)						(29,587)						(33,007)						(33,211)						(33,675)
CCRC			(2,415)						—						—						(333)						—
Other			(17,323)						(17,109)						(17,972)						(18,360)						(18,215)
Non-SS Portfolio Real Estate Revenues			$	(76,444)					$	(82,074)					$	(87,842)					$	(93,695)					$	(100,757)
Life Science			148,592						150,274						148,725						153,638						160,109
Medical Office			130,746						133,678						133,318						135,964						137,451
CCRC			117,395						119,037						118,868						128,112						125,569
Other			—						—						—						—						—
Portfolio Real Estate Revenue - SS(1)			$	396,733					$	402,989					$	400,911					$	417,714					$	423,129
Life Science			(9,297)						(8,008)						(7,953)						(9,166)						(12,031)
Medical Office			(2,528)						(2,732)						(2,532)						(2,480)						(2,116)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Non-cash adjustment to SS Portfolio Real Estate Revenues			$	(11,825)					$	(10,740)					$	(10,485)					$	(11,646)					$	(14,147)
Life Science			139,295						142,266						140,772						144,472						148,078
Medical Office			128,218						130,946						130,786						133,484						135,335
CCRC			117,395						119,037						118,868						128,112						125,569
Other			—						—						—						—						—
Portfolio Cash Real Estate Revenue - SS(1)			$	384,908					$	392,249					$	390,426					$	406,068					$	408,982

			14

---

Reconciliations
In thousands

Operating Expenses

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Life Science			$	40,724					$	44,923					$	43,936					$	48,189					$	49,446
Medical Office			54,648						58,430						59,184						61,170						63,321
CCRC			94,760						98,799						96,127						97,888						102,277
Other			—						(13)						—						—						—
Operating expenses			$	190,132					$	202,139					$	199,247					$	207,247					$	215,044
Life Science			428						463						520						483						483
Medical Office			317						305						258						299						301
CCRC			2,208						32						(346)						—						—
Other			12,451						13,450						13,370						14,055						14,150
Healthpeak's share of unconsolidated JVs operating expenses			$	15,404					$	14,250					$	13,802					$	14,837					$	14,934
Life Science			(21)						(25)						(21)						(19)						(19)
Medical Office			(2,552)						(2,659)						(2,356)						(2,602)						(2,726)
CCRC			—						—						—						—						—
Other			—						—						—						—						—
Noncontrolling interests' share of consolidated JVs operating expenses			$	(2,573)					$	(2,684)					$	(2,377)					$	(2,621)					$	(2,745)
Life Science			41,131						45,361						44,435						48,653						49,910
Medical Office			52,413						56,076						57,086						58,867						60,896
CCRC			96,968						98,831						95,781						97,888						102,277
Other			12,451						13,437						13,370						14,055						14,150
Portfolio Operating Expenses			$	202,963					$	213,705					$	210,672					$	219,463					$	227,233
Life Science			(9)						(10)						(9)						(160)						(9)
Medical Office			(639)						(711)						(740)						(633)						(694)
CCRC			(1,212)						(724)						(1,270)						—						—
Other			33						113						27						31						32
Non-cash adjustments to Portfolio Operating Expenses			$	(1,827)					$	(1,332)					$	(1,992)					$	(762)					$	(671)
Life Science			41,122						45,351						44,426						48,493						49,901
Medical Office			51,774						55,365						56,346						58,234						60,202
CCRC			95,756						98,107						94,511						97,888						102,277
Other			12,484						13,550						13,397						14,086						14,182
Portfolio Cash Operating Expenses			$	201,136					$	212,373					$	208,680					$	218,701					$	226,562
Life Science			9						10						9						160						9
Medical Office			639						711						740						633						694
CCRC			1,212						724						1,270						—						—
Other			(33)						(113)						(27)						(31)						(32)
Non-cash adjustments to Portfolio Operating Expenses			$	1,827					$	1,332					$	1,992					$	762					$	671
Life Science			(7,874)						(8,964)						(9,567)						(12,052)						(12,428)
Medical Office			(9,335)						(11,145)						(12,139)						(13,864)						(14,541)
CCRC			(2,602)						(426)						(62)						(490)						(443)
Other			(12,451)						(13,437)						(13,370)						(14,055)						(14,150)
Non-SS Portfolio Operating Expenses			$	(32,262)					$	(33,972)					$	(35,138)					$	(40,461)					$	(41,562)

Continued

			15

---

Reconciliations
In thousands

Operating Expenses

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Life Science			33,257						36,397						34,868						36,601						37,482
Medical Office			43,078						44,931						44,947						45,003						46,355
CCRC			94,366						98,405						95,719						97,398						101,834
Other			—						—						—						—						—
Portfolio Operating Expenses - SS(1)			$	170,701					$	179,733					$	175,534					$	179,002					$	185,671
Life Science			(9)						(9)						(9)						(159)						(9)
Medical Office			(576)						(589)						(576)						(570)						(570)
CCRC			(1,209)						(724)						(1,542)						—						—
Other			—						—						—						—						—
Non-cash adjustment to SS Portfolio Operating Expenses			$	(1,794)					$	(1,322)					$	(2,127)					$	(729)					$	(579)
Life Science			33,248						36,388						34,859						36,442						37,473
Medical Office			42,502						44,342						44,371						44,433						45,785
CCRC			93,157						97,681						94,177						97,398						101,834
Other			—						—						—						—						—
Portfolio Cash Operating Expenses - SS(1)			$	168,907					$	178,411					$	173,407					$	178,273					$	185,092

			16

---

Reconciliations
In thousands

Revenues

Operating Expenses

Six Months Ended June 30, 2022												Six Months Ended June 30, 2022
Life Science			$	401,826								Life Science			$	97,635
Medical Office			356,571									Medical Office			124,491
CCRC			246,920									CCRC			200,165
Other			10,987									Other			—
Total revenues			$	1,016,304								Operating expenses			$	422,291
Life Science			—									Life Science			966
Medical Office			—									Medical Office			600
CCRC			6,762									CCRC			—
Other			—									Other			28,205
Government grant income			$	6,762								Healthpeak's share of unconsolidated JVs operating expenses			$	29,771
Life Science			—									Life Science			(38)
Medical Office			—									Medical Office			(5,328)
CCRC			—									CCRC			—
Other			(10,987)									Other			—
Less: Interest income			$	(10,987)								Noncontrolling interests' share of consolidated JVs operating expenses			$	(5,366)
Life Science			2,698									Life Science			98,563
Medical Office			1,493									Medical Office			119,763
CCRC			—									CCRC			200,165
Other			36,260									Other			28,205
Healthpeak's share of unconsolidated JVs real estate revenues			$	40,451								Portfolio Operating Expenses			$	446,696
Life Science			—									Life Science			(169)
Medical Office			—									Medical Office			(1,327)
CCRC			333									CCRC			—
Other			315									Other			63
Healthpeak's share of unconsolidated JVs government grant income			$	648								Non-cash adjustments to Portfolio Operating Expenses			$	(1,433)
Life Science			(119)									Life Science			98,394
Medical Office			(17,763)									Medical Office			118,436
CCRC			—									CCRC			200,165
Other			—									Other			28,268
Noncontrolling interests' share of consolidated JVs real estate revenues			$	(17,882)								Portfolio Cash Operating Expenses			$	445,263
Life Science			404,405									Life Science			$	169
Medical Office			340,301									Medical Office			1,327
CCRC			254,015									CCRC			—
Other			36,575									Other			(63)
Portfolio Real Estate Revenues			$	1,035,296								Non-cash Portfolio Cash Operating Expenses			$	1,433
Life Science			(35,925)									Life Science			(25,073)
Medical Office			(7,823)									Medical Office			(28,763)
CCRC			—									CCRC			(933)
Other			109									Other			(28,205)
Non-cash adjustments to Portfolio Real Estate Revenues			$	(43,639)								Non-SS Portfolio Operating Expenses			$	(82,974)

			17

---

Reconciliations
In thousands

Six Months Ended June 30, 2022												Six Months Ended June 30, 2022
Life Science			368,480									Life Science			73,490
Medical Office			332,478									Medical Office			91,000
CCRC			254,015									CCRC			199,232
Other			36,684									Other			—
Portfolio Cash Real Estate Revenues			$	991,657								Portfolio Operating Expenses - SS(1)			$	363,722
Life Science			35,925									Life Science			(169)
Medical Office			7,823									Medical Office			(1,129)
CCRC			—									CCRC			—
Other			(109)									Other			—
Non-cash adjustments to Portfolio Real Estate Revenues			$	43,639								Non-cash adjustment to SS Portfolio Operating Expenses			$	(1,298)
Life Science			(92,444)									Life Science			73,321
Medical Office			(67,586)									Medical Office			89,871
CCRC			(334)									CCRC			199,232
Other			(36,575)									Other			—
Non-SS Portfolio Real Estate Revenue			$	(196,939)								Portfolio Cash Operating Expenses - SS(1)			$	362,424
Life Science			$	311,961
Medical Office			272,715
CCRC			253,681
Other			—
Portfolio Real Estate Revenue - SS(1)			$	838,357
Life Science			(21,161)
Medical Office			(4,547)
CCRC			—
Other			—
Non-cash adjustment to SS Portfolio Real Estate Revenues			$	(25,708)
Life Science			290,800
Medical Office			268,168
CCRC			253,681
Other			—
Portfolio Cash Real Estate Revenue - SS(1)			$	812,649

______________________________________

(1)The property count used for Portfolio Real Estate Revenues - SS, Portfolio Cash Real Estate Revenues - SS, Portfolio Operating Expenses - SS, and Portfolio Cash Operating Expenses - SS differed for the three and six months ended June 30, 2022.

			18

---

Reconciliations
In thousands

EBITDAre and Adjusted EBITDAre

			Three Months Ended June 30, 2022
Net income (loss)			$	72,293
Interest expense			41,867
Income tax expense (benefit)(1)			(748)
Depreciation and amortization			180,489
Other depreciation and amortization			1,363
Loss (gain) on sales of real estate(1)			(12,903)
Share of unconsolidated JV:
Interest expense			(140)
Income tax expense (benefit)			87
Depreciation and amortization			5,210
Loss (gain) on sale of real estate from unconsolidated JVs			129
EBITDAre			$	287,647
Transaction-related items, excluding taxes			612
Other impairments (recoveries) and losses (gains)(2)			139
Casualty-related charges (recoveries), excluding taxes			(482)
Amortization of stock-based compensation			5,300
Impact of transactions closed during the quarter(3)			298
Adjusted EBITDAre			$	293,514

Adjusted Fixed Charge Coverage

			Three Months Ended June 30, 2022
Interest expense, including unconsolidated JV interest expense at share			41,727
Capitalized interest			8,315
Fixed Charges			$	50,042
Adjusted Fixed Charge Coverage			5.9x

  ______________________________________

(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 32 of this document for the quarter ended June 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.

			19

---

Reconciliations
In thousands

Enterprise Debt and Net Debt

			June 30, 2022
Bank line of credit and commercial paper			$	1,448,569
Senior unsecured notes			4,655,852
Mortgage debt			349,329
Consolidated Debt			$	6,453,750
Share of unconsolidated JV mortgage debt			39,795
Enterprise Debt			$	6,493,545
Cash and cash equivalents(1)			(81,083)
Share of unconsolidated JV cash and cash equivalents			(16,014)
Restricted cash			(54,815)
Share of unconsolidated JV restricted cash			(500)
Expected net proceeds from forward contracts			(310,041)
Net Debt			$	6,031,092

Financial Leverage

			June 30, 2022
Enterprise Debt			$	6,493,545
Enterprise Gross Assets			18,968,231
Financial Leverage			34.2%

Secured Debt Ratio

			June 30, 2022
Mortgage debt			$	349,329
Share of unconsolidated JV mortgage debt			39,795
Enterprise Secured Debt			$	389,124
Enterprise Gross Assets			18,968,231
Secured Debt Ratio			2.1%

Net Debt to Adjusted EBITDAre

Three Months Ended June 30, 2022

Net Debt

$

6,031,092

Annualized Adjusted EBITDAre(2)

1,174,056

Net Debt to Adjusted EBITDAre

5.1x

  ______________________________________

(1)Includes cash and cash equivalents of $8 million on assets classified as discontinued operations.

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

			20

---

Reconciliations
In thousands

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

Total Portfolio

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations			$	168,065					$	61,305					$	28,943					$	75,026					$	69,301
Interest income			(16,108)						(6,748)						(5,904)						(5,494)						(5,493)
Interest expense			38,681						35,905						36,551						37,586						41,867
Depreciation and amortization			171,459						177,175						178,114						177,733						180,489
General and administrative			24,088						23,270						26,043						23,831						24,781
Transaction costs			619						—						424						296						612
Loss (gain) on sales of real estate, net			(175,238)						(14,635)						(717)						(3,856)						(10,340)
Impairments and loan loss reserves (recoveries), net			931						285						18,702						132						139
Other expense (income), net			(1,734)						(1,670)						(662)						(18,316)						(2,861)
Loss (gain) on debt extinguishments			60,865						667						—						—						—
Income tax expense (benefit)			(763)						(649)						(1,857)						777						(718)
Government grant income			87						15						—						6,552						209
Equity loss (income) from unconsolidated JVs			(867)						(2,327)						(1,583)						(2,084)						(382)
Healthpeak's share of unconsolidated JVs NOI			6,456						5,117						6,378						6,019						5,309
Noncontrolling interests' share of consolidated JVs NOI			(6,327)						(6,352)						(6,351)						(6,256)						(6,260)
Portfolio NOI			$	270,214					$	271,358					$	278,081					$	291,946					$	296,653
Adjustment to Portfolio NOI			(13,170)						(14,023)						(13,719)						(17,666)						(24,539)
Portfolio Cash (Adjusted) NOI			$	257,044					$	257,335					$	264,362					$	274,280					$	272,114
Interest income			16,108						6,748						5,904						5,494						5,493
Portfolio Income			$	273,152					$	264,083					$	270,266					$	279,774					$	277,607
Interest income			(16,108)						(6,748)						(5,904)						(5,494)						(5,493)
Adjustment to Portfolio NOI			13,170						14,023						13,719						17,666						24,539
Non-SS Portfolio NOI			(44,182)						(48,102)						(52,705)						(53,234)						(59,195)
SS Portfolio NOI			$	226,032					$	223,256					$	225,376					$	238,712					$	237,458
Non-cash adjustment to SS Portfolio NOI			(10,031)						(9,418)						(8,357)						(10,917)						(13,568)
SS Portfolio Cash (Adjusted) NOI			$	216,001					$	213,838					$	217,019					$	227,795					$	223,890

			21

---

Reconciliations
In thousands

Life Science

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations			$	59,960					$	60,326					$	62,419					$	72,249					$	78,794
Interest expense			48						46						36						—						—
Depreciation and amortization			76,955						79,570						78,237						78,138						79,673
Transaction costs			(21)						—						13						292						35
Loss (gain) on sales of real estate, net			—						—						—						(3,856)						—
Other expense (income), net			(28)						(22)						(1)						9						(29)
Equity loss (income) from unconsolidated JVs			(111)						(630)						(470)						(966)						(148)
Healthpeak's share of unconsolidated JVs NOI			984						1,058						967						948						784
Noncontrolling interests' share of consolidated JVs NOI			(54)						(57)						(49)						(38)						(43)
Portfolio NOI			$	137,733					$	140,291					$	141,152					$	146,776					$	159,066
Adjustment to Portfolio NOI			(12,366)						(11,021)						(11,392)						(14,112)						(21,644)
Portfolio Cash (Adjusted) NOI(1)			$	125,367					$	129,270					$	129,760					$	132,664					$	137,422
Adjustment to Portfolio NOI			12,366						11,021						11,392						14,112						21,644
Non-SS Portfolio NOI			(22,398)						(26,414)						(27,295)						(29,739)						(36,439)
SS Portfolio NOI			$	115,335					$	113,877					$	113,857					$	117,037					$	122,627
Non-cash adjustment to SS Portfolio NOI			(9,288)						(7,999)						(7,944)						(9,007)						(12,022)
SS Portfolio Cash (Adjusted) NOI			$	106,047					$	105,878					$	105,913					$	108,030					$	110,605

Medical Office

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations			$	221,725					$	58,632					$	27,064					$	58,417					$	56,929
Interest expense			786						1,104						852						1,036						1,930
Depreciation and amortization			63,371						66,189						68,232						67,773						68,873
Transaction costs			(35)						—						28						4						70
Impairments and loan loss (reserves) recoveries, net			—						1,952						19,625						—						—
Loss (gain) on sales of real estate, net			(175,238)						(14,635)						(717)						—						(10,340)
Other expense (income), net			175						30						241						(10,937)						(1,264)
Equity loss (income) from unconsolidated JVs			(137)						(220)						(245)						(200)						(211)
Healthpeak's share of unconsolidated JVs NOI			393						432						462						433						460
Noncontrolling interests' share of consolidated JVs NOI			(6,273)						(6,295)						(6,302)						(6,218)						(6,217)
Portfolio NOI			$	104,767					$	107,189					$	109,240					$	110,308					$	110,230
Adjustment to Portfolio NOI			(2,003)						(3,626)						(3,566)						(3,546)						(2,949)
Portfolio Cash (Adjusted) NOI(1)			$	102,764					$	103,563					$	105,674					$	106,762					$	107,281
Adjustment to Portfolio NOI			2,003						3,626						3,566						3,546						2,949
Non-SS Portfolio NOI			(17,099)						(18,442)						(20,869)						(19,347)						(19,134)
SS Portfolio NOI			$	87,668					$	88,747					$	88,371					$	90,961					$	91,096
Non-cash adjustment to SS Portfolio NOI			(1,952)						(2,143)						(1,956)						(1,910)						(1,546)
SS Portfolio Cash (Adjusted) NOI			$	85,716					$	86,604					$	86,415					$	89,051					$	89,550

			22

---

Reconciliations
In thousands

CCRC

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations			$	(10,362)					$	(12,170)					$	(11,498)					$	(2,965)					$	(10,170)
Interest expense			1,924						1,936						1,923						1,865						1,876
Depreciation and amortization			31,133						31,416						31,645						31,822						31,943
Transaction costs			657						—						356						—						64
Other expense (income), net			(165)						(114)						314						(6,511)						(630)
Government grant income			87						15						—						6,552						209
Equity loss (income) from unconsolidated JVs			(639)						(845)						—						(539)						—
Healthpeak's share of unconsolidated JVs NOI			207						(32)						347						333						—
Portfolio NOI			$	22,842					$	20,206					$	23,087					$	30,557					$	23,292
Adjustment to Portfolio NOI			1,226						724						1,271						—						—
Portfolio Cash (Adjusted) NOI(1)			$	24,068					$	20,930					$	24,358					$	30,557					$	23,292
Adjustment to Portfolio NOI			(1,226)						(724)						(1,271)						—						—
Non-SS Portfolio NOI			187						426						61						157						443
SS Portfolio NOI			$	23,029					$	20,632					$	23,148					$	30,714					$	23,735
Non-cash adjustment to SS Portfolio NOI			1,209						724						1,543						—						—
SS Portfolio Cash (Adjusted) NOI			$	24,238					$	21,356					$	24,691					$	30,714					$	23,735

Other

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations			$	15,139					$	9,061					$	7,671					$	5,709					$	5,395
Interest income			(16,108)						(6,748)						(5,904)						(5,494)						(5,493)
Transaction costs			18						—						27						—						—
Impairments and loan loss (reserves) recoveries, net			931						(1,667)						(923)						132						139
Other expense (income), net			—						(1)						(3)						32						(18)
Equity loss (income) from unconsolidated JVs			20						(632)						(868)						(379)						(23)
Healthpeak's share of unconsolidated JVs NOI			4,872						3,659						4,602						4,305						4,065
Portfolio NOI			$	4,872					$	3,672					$	4,602					$	4,305					$	4,065
Adjustment to Portfolio NOI			(27)						(100)						(32)						(8)						54
Portfolio Cash (Adjusted) NOI			$	4,845					$	3,572					$	4,570					$	4,297					$	4,119
Interest income			16,108						6,748						5,904						5,494						5,493
Portfolio Income			$	20,953					$	10,320					$	10,474					$	9,791					$	9,612
Interest income			(16,108)						(6,748)						(5,904)						(5,494)						(5,493)
Adjustment to Portfolio NOI			27						100						32						8						(54)
Non-SS Portfolio NOI			(4,872)						(3,672)						(4,602)						(4,305)						(4,065)
SS Portfolio NOI			$	—					$	—					$	—					$	—					$	—
SS Portfolio Cash (Adjusted) NOI			$	—					$	—					$	—					$	—					$	—

			23

---

Reconciliations
In thousands

Corporate Non-Segment

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations			$	(118,397)					$	(54,544)					$	(56,713)					$	(58,384)					$	(61,647)
Interest expense			35,923						32,819						33,740						34,685						38,061
General and administrative			24,088						23,270						26,043						23,831						24,781
Transaction costs			—						—						—						—						443
Loss (gain) on debt extinguishments			60,865						667						—						—						—
Other expense (income), net			(1,716)						(1,563)						(1,213)						(909)						(920)
Income tax expense (benefit)			(763)						(649)						(1,857)						777						(718)
Portfolio NOI			$	—					$	—					$	—					$	—					$	—

______________________________________

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

			24

---

Reconciliations
In thousands

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

For the six months ended June 30, 2022

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Income (loss) from continuing operations						$	151,042					$	115,347					$	(13,135)					$	11,105					$	(120,032)					$	144,327
Interest income						—						—						—						(10,987)						—						(10,987)
Interest expense						—						2,966						3,741						—						72,746						79,453
Depreciation and amortization						157,811						136,646						63,765						—						—						358,222
General and administrative						—						—						—						—						48,612						48,612
Transaction costs						327						74						64						—						443						908
Impairments and loan loss (reserves) recoveries, net						—						—						—						271						—						271
Loss (gain) on sales of real estate, net						(3,856)						(10,340)						—						—						—						(14,196)
Other expense (income), net						(20)						(12,201)						(7,141)						13						(1,828)						(21,177)
Income tax expense (benefit)						—						—						—						—						59						59
Government grant income						—						—						6,762						—						—						6,762
Healthpeak's share of unconsolidated joint venture NOI						1,733						892						333						8,370						—						11,328
Noncontrolling interests' share of consolidated joint venture NOI						(81)						(12,435)						—						—						—						(12,516)
Equity loss (income) from unconsolidated JVs						(1,114)						(411)						(539)						(402)						—						(2,466)
Portfolio NOI						$	305,842					$	220,538					$	53,850					$	8,370					$	—					$	588,600
Adjustment to NOI						(35,756)						(6,495)						—						45						—						(42,206)
Portfolio Cash (Adjusted) NOI						$	270,086					$	214,043					$	53,850					$	8,415					$	—					$	546,394
Interest Income						—						—						—						10,987						—						10,987
Portfolio Income						$	270,086					$	214,043					$	53,850					$	19,402					$	—					$	557,381
Interest income						—						—						—						(10,987)												(10,987)
Adjustment to NOI						35,756						6,495						—						(45)						—						42,206
Non-SS Portfolio NOI						(67,371)						(38,823)						599						(8,370)						—						(113,965)
SS Portfolio NOI(1)						$	238,471					$	181,715					$	54,449					$	—					$	—					$	474,635
Non-cash adjustment to SS Portfolio NOI						(20,992)						(3,418)						—						—						—						(24,410)
SS Portfolio Cash (Adjusted) NOI(1)						$	217,479					$	178,297					$	54,449					$	—					$	—					$	450,225

			25

---

Reconciliations
In thousands

For the six months ended June 30, 2021

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Income (loss) from continuing operations						$	121,778					$	270,337					$	(16,738)					$	22,614					$	(350,511)					$	47,480
Interest income						—						—						—						(25,121)						—						(25,121)
Interest expense						150						881						3,842						—						80,651						85,524
Depreciation and amortization						145,388						121,326						62,283						—						—						328,997
General and administrative						—						—						—						—						48,990						48,990
Transaction costs						11						295						1,090						21						—						1,417
Impairments and loan loss (reserves) recoveries, net						—						—						—						4,173						—						4,173
Loss (gain) on sales of real estate, net						—						(175,238)						—						—						—						(175,238)
Loss (gain) on debt extinguishments						—						—						—						—						225,157						225,157
Other expense (income), net						(33)						2,454						(2,341)						(482)						(3,532)						(3,934)
Income tax expense (benefit)						—						—						—						—						(755)						(755)
Government grant income						—						—						1,397						—						—						1,397
Healthpeak's share of unconsolidated joint venture NOI						1,896						814						149						9,257						—						12,116
Noncontrolling interests' share of consolidated joint venture NOI						(99)						(12,695)						—						—						—						(12,794)
Equity loss (income) from unconsolidated JVs						(18)						(328)						(639)						(1,205)						—						(2,190)
Portfolio NOI						$	269,073					$	207,846					$	49,043					$	9,257					$	—					$	535,219
Adjustment to NOI						(24,176)						(3,926)						1,246						85						—						(26,771)
Portfolio Cash (Adjusted) NOI						$	244,897					$	203,920					$	50,289					$	9,342					$	—					$	508,448
Interest Income						—						—						—						25,121						—						25,121
Portfolio Income						$	244,897					$	203,920					$	50,289					$	34,463					$	—					$	533,569
Interest income						—						—						—						(25,121)												(25,121)
Adjustment to NOI						24,176						3,926						(1,246)						(85)						—						26,771
Non-SS Portfolio NOI						(42,923)						(32,199)						994						(9,257)						—						(83,385)
SS Portfolio NOI(1)						$	226,150					$	175,647					$	50,037					$	—					$	—					$	451,834
Non-cash adjustment to SS Portfolio NOI						(18,593)						(4,417)						1,210						—						—						(21,800)
SS Portfolio Cash (Adjusted) NOI(1)						$	207,557					$	171,230					$	51,247					$	—					$	—					$	430,034

______________________________________

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

			26

---

Reconciliations
In thousands

Healthpeak's Share of Unconsolidated Joint Venture's NOI

Total Portfolio

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Equity income (loss) from unconsolidated JV			$	867					$	2,327					$	1,583					$	2,084					$	382
Depreciation and amortization			2,868						4,722						5,041						5,135						5,210
General and administrative			38						25						6						30						71
Loss (gain) on sales of real estate, net			(474)						(890)						329						(210)						150
Other expense (income), net			3,633						(371)						(130)						(1,067)						(592)
Income tax expense (benefit)			(476)						(696)						(451)						47						88
Healthpeak's Share of unconsolidated JVs NOI			$	6,456					$	5,117					$	6,378					$	6,019					$	5,309

Life Science

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Equity income (loss) from unconsolidated JV			$	111					$	630					$	470					$	966					$	148
Depreciation and amortization			730						811						754						760						776
Other expense (income), net			143						(383)						(257)						(778)						(140)
Healthpeak's Share of unconsolidated JVs NOI			$	984					$	1,058					$	967					$	948					$	784

Medical Office

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Equity income (loss) from unconsolidated JV			$	137					$	220					$	245					$	200					$	211
Depreciation and amortization			237						207						228						221						226
General and administrative			13						3						4						7						17
Loss (gain) on sales of real estate, net			—						—						(17)						(2)						—
Other expense (income), net			—						—						(5)						—						—
Income tax expense (benefit)			6						2						7						7						6
Healthpeak's Share of unconsolidated JVs NOI			$	393					$	432					$	462					$	433					$	460

			27

---

Reconciliations
In thousands

CCRC

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Equity income (loss) from unconsolidated JV			$	639					$	845					$	—					$	539					$	—
Loss (gain) on sales of real estate, net			(474)						(890)						346						(208)						150
Other expense (income), net			42						13						1						2						(150)
Healthpeak's Share of unconsolidated JVs NOI			$	207					$	(32)					$	347					$	333					$	—

Other

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Equity income (loss) from unconsolidated JV			$	(20)					$	632					$	868					$	379					$	23
Depreciation and amortization			1,901						3,704						4,059						4,154						4,208
General and administrative			25						22						2						23						54
Other expense (income), net			3,448						(1)						131						(291)						(302)
Income tax expense (benefit)			(482)						(698)						(458)						40						82
Healthpeak's Share of unconsolidated JVs NOI			$	4,872					$	3,659					$	4,602					$	4,305					$	4,065

			28

---

Reconciliations
In thousands

Healthpeak's Share of Unconsolidated Joint Venture's NOI

For the six months ended June 30, 2022

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Equity income (loss) from unconsolidated JV						$	1,114					$	411					$	539					$	402					$	—					$	2,466
Depreciation and amortization						1,537						447						—						8,362						—						10,346
General and administrative						—						24						—						77						—						101
Loss (gain) on sales of real estate, net						—						(2)						(58)						—						—						(60)
Other expense (income), net						(918)						—						(148)						(593)						—						(1,659)
Income tax expense (benefit)						—						12						—						122						—						134
Healthpeak's Share of unconsolidated JVs NOI						$	1,733					$	892					$	333					$	8,370					$	—					$	11,328

For the six months ended June 30, 2021

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Equity income (loss) from unconsolidated JV						$	18					$	328					$	639					$	1,205					$	—					$	2,190
Depreciation and amortization						1,458						449						—						5,411						—						7,318
General and administrative						1						25						—						178						—						204
Loss (gain) on sales of real estate, net						—						—						(474)						—						—						(474)
Other expense (income), net						419						1						(16)						3,423						—						3,827
Income tax expense (benefit)						—						11						—						(960)						—						(949)
Healthpeak's Share of unconsolidated JVs NOI						$	1,896					$	814					$	149					$	9,257					$	—					$	12,116

			29

---

Reconciliations
In thousands

Noncontrolling Interests' Share of Consolidated Joint Venture's NOI

Total Portfolio

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	3,535					$	7,195					$	3,815					$	3,730					$	3,955
Gain on sales of real estate, net			(92)						(3,385)						76						(12)						—
Depreciation and amortization			4,928						4,790						4,768						4,693						4,710
Other expense (income), net			228						105						74						195						(26)
Dividends attributable to noncontrolling interest			(2,272)						(2,353)						(2,382)						(2,350)						(2,379)
Noncontrolling interests' share of consolidated JVs NOI			$	6,327					$	6,352					$	6,351					$	6,256					$	6,260

Life Science

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	937					$	929					$	956					$	916					$	946
Depreciation and amortization			26						27						25						20						25
Other expense (income), net			23						4						—						3						2
Dividends attributable to noncontrolling interest			(932)						(903)						(932)						(901)						(930)
Noncontrolling interests' share of consolidated JVs NOI			$	54					$	57					$	49					$	38					$	43

Medical Office

			Three Months Ended
			June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Income (loss) from continuing operations attributable to noncontrolling interest			$	2,598					$	6,266					$	2,859					$	2,814					$	3,009
Gain on sales of real estate, net			(92)						(3,385)						76						(12)						—
Depreciation and amortization			4,902						4,763						4,743						4,673						4,685
Other expense (income), net			205						101						74						192						(28)
Dividends attributable to noncontrolling interest			(1,340)						(1,450)						(1,450)						(1,449)						(1,449)
Noncontrolling interests' share of consolidated JVs NOI			$	6,273					$	6,295					$	6,302					$	6,218					$	6,217

			30

---

Reconciliations
In thousands

Noncontrolling Interests' Share of Consolidated Joint Venture's NOI

For the six months ended June 30, 2022

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

For the six months ended June 30, 2021

						Life Science						Medical Office						CCRC						Other						Corporate Non-segment						Total
Income (loss) from continuing operations attributable to noncontrolling interest						$	1,841					$	5,000					$	—					$	—					$	—					$	6,841
Gain on sales of real estate, net						—						(92)						—						—						—						(92)
Depreciation and amortization						51						9,758						—						—						—						9,809
Other expense (income), net						42						489						—						—						—						531
Dividends attributable to noncontrolling interest						(1,835)						(2,460)						—						—						—						(4,295)
Noncontrolling interests' share of consolidated JVs NOI						$	99					$	12,695					$	—					$	—					$	—					$	12,794

			31

---

Reconciliations
In thousands

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

Pro Forma SS Portfolio Real Estate Revenues						Three Months Ended
						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Real Estate Revenues - SS(2)						$	117,395					$	119,037					$	118,868					$	128,112					$	125,569
Pro forma adjustments to exclude government grants						(87)						(15)						—						(6,552)						(209)
Pro forma Portfolio Real Estate Revenues - SS(3)						$	117,308					$	119,022					$	118,868					$	121,560					$	125,360

Pro Forma SS Portfolio Cash Real Estate Revenues						Three Months Ended
						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Cash Real Estate Revenues - SS(2)						$	117,395					$	119,037					$	118,868					$	128,112					$	125,569
Pro forma adjustments to exclude government grants						(87)						(15)						—						(6,552)						(209)
Pro forma Portfolio Cash Real Estate Revenues - SS(3)						$	117,308					$	119,022					$	118,868					$	121,560					$	125,360

Pro Forma SS Portfolio NOI						Three Months Ended
						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
SS Portfolio NOI(4)						$	23,029					$	20,632					$	23,148					$	30,714					$	23,735
Pro forma adjustment to exclude government grants						(87)						(15)						—						(6,552)						(209)
Pro forma SS Portfolio NOI(3)						$	22,942					$	20,617					$	23,148					$	24,162					$	23,526

Pro Forma SS Portfolio Cash (Adjusted) NOI						Three Months Ended
						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
SS Portfolio Cash (Adjusted) NOI(4)						$	24,238					$	21,356					$	24,691					$	30,714					$	23,735
Pro forma adjustment to exclude government grants						(87)						(15)						—						(6,552)						(209)
Pro forma SS Portfolio Cash (Adjusted) NOI(3)						$	24,151					$	21,341					$	24,691					$	24,162					$	23,526

______________________________________

(1)May not foot due to rounding.

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

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

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

			32

---

Reconciliations
In thousands, except per month data

REVPOR CCRC(1)

						Three Months Ended
REVPOR CCRC						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Cash Real Estate Revenues(2)						$	119,824					$	119,037					$	118,868					$	128,445					$	125,569
Other adjustments to REVPOR CCRC(3)						(2,429)						—						—						(333)						—
REVPOR CCRC revenues						$	117,395					$	119,037					$	118,868					$	128,112					$	125,569
Average occupied units/month						5,906						5,910						5,852						5,939						5,952
REVPOR CCRC per month(4)						$	6,626					$	6,714					$	6,770					$	7,190					$	7,032

						Three Months Ended
REVPOR CCRC excluding NREF Amortization						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
REVPOR CCRC revenues						$	117,395					$	119,037					$	118,868					$	128,112					$	125,569
NREF Amortization						18,415						18,900						19,745						18,957						19,444
Other Adjustments to NREF Amortization(5)						(299)						—						—						—						—
REVPOR CCRC revenues excluding NREF Amortization						$	99,279					$	100,137					$	99,123					$	109,155					$	106,125
Average occupied units/month						5,906						5,910						5,852						5,939						5,952
REVPOR CCRC excluding NREF Amortization per month(4)						$	5,604					$	5,648					$	5,646					$	6,126					$	5,943

						Three Months Ended
SS REVPOR CCRC						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
SS REVPOR CCRC revenues(6)						$	117,395					$	119,037					$	118,868					$	128,112					$	125,569
SS average occupied units/month						5,906						5,910						5,852						5,939						5,952
SS REVPOR CCRC per month(4)						$	6,626					$	6,714					$	6,770					$	7,190					$	7,032

						Three Months Ended
SS REVPOR CCRC excluding NREF Amortization						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
SS REVPOR CCRC revenues(6)						$	117,395					$	119,037					$	118,868					$	128,112					$	125,569
NREF Amortization						18,415						18,900						19,745						18,957						19,444
Other Adjustments to NREF Amortization(5)						(299)						—						—						—						—
SS REVPOR CCRC revenues excluding NREF Amortization						$	99,279					$	100,137					$	99,123					$	109,155					$	106,125
SS Average occupied units/month						5,906						5,910						5,852						5,939						5,952
SS REVPOR CCRC excluding NREF Amortization per month(4)						$	5,604					$	5,648					$	5,646					$	6,126					$	5,943

			33

---

Reconciliations
In thousands, except per month data

						Three Months Ended
PRO FORMA SS REVPOR CCRC						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Pro Forma SS REVPOR CCRC revenues(7)						$	117,308					$	119,022					$	118,868					$	121,560					$	125,360
SS average occupied units/month						5,906						5,910						5,852						5,939						5,952
SS REVPOR CCRC per month(4)						$	6,621					$	6,713					$	6,770					$	6,822					$	7,020

						Three Months Ended
PRO FORMA SS REVPOR CCRC excluding NREF Amortization						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Pro Forma SS REVPOR CCRC revenues(7)						$	117,308					$	119,022					$	118,868					$	121,560					$	125,360
NREF Amortization						18,415						18,900						19,745						18,957						19,444
Other Adjustments to NREF Amortization(5)						(299)						—						—						—						—
SS REVPOR CCRC revenues excluding NREF Amortization						$	99,192					$	100,122					$	99,123					$	102,603					$	105,916
Average occupied units/month						5,906						5,910						5,852						5,939						5,952
SS REVPOR CCRC excluding NREF Amortization per month(4)						$	5,599					$	5,647					$	5,646					$	5,758					$	5,931

_____________________________________

(1)May not foot due to rounding.

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

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

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

(5)Includes NREF amortization from facilities that have sold.

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

(7)See page 27 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.

			34

---

Reconciliations
In thousands

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

						Three Months Ended
Pro Forma Portfolio Real Estate Revenues						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Real Estate Revenues(2)						$	17,323					$	17,109					$	17,972					$	18,360					$	18,215
Pro forma adjustments to exclude government grants						(583)						—						(739)						(315)						—
Pro forma Portfolio Real Estate Revenues(3)						$	16,740					$	17,109					$	17,232					$	18,045					$	18,215

						Three Months Ended
Pro Forma Portfolio Cash Real Estate Revenues						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Cash Real Estate Revenues(2)						$	17,329					$	17,121					$	17,968					$	18,383					$	18,301
Pro forma adjustments to exclude government grants						(583)						—						(739)						(315)						—
Pro forma Portfolio Cash Real Estate Revenues(3)						$	16,747					$	17,121					$	17,228					$	18,067					$	18,301

						Three Months Ended
Pro Forma Portfolio NOI						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio NOI(4)						$	4,872					$	3,672					$	4,602					$	4,305					$	4,065
Pro forma adjustments to exclude government grants						(583)						—						(739)						(315)						—
Pro forma Portfolio NOI(3)						$	4,289					$	3,672					$	3,863					$	3,990					$	4,065

						Three Months Ended
Pro Forma Portfolio Cash (Adjusted) NOI						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Cash (Adjusted) NOI(4)						$	4,845					$	3,572					$	4,570					$	4,297					$	4,119
Pro forma adjustments to exclude government grants						(583)						—						(739)						(315)						—
Pro forma Portfolio Cash (Adjusted) NOI(3)						$	4,262					$	3,572					$	3,831					$	3,981					$	4,119

______________________________________

(1)May not foot due to rounding.

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

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

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

			35

---

Reconciliations
In thousands

REVPOR Other(1)

						Three Months Ended
REVPOR Other						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
Portfolio Cash Real Estate Revenues(2)						$	17,329					$	17,121					$	17,968					$	18,383					$	18,301
Other adjustments to REVPOR Other(3)						(3,460)						(3,509)						(3,863)						(2,201)						(2,280)
REVPOR Other revenues						$	13,870					$	13,612					$	14,105					$	16,182					$	16,021
Average occupied units/month						1,104						1,134						1,142						1,261						1,261
REVPOR Other per month(4)						$	4,186					$	4,000					$	4,118					$	4,278					$	4,234

						Three Months Ended
Pro Forma REVPOR Other						June 30, 2021						September 30, 2021						December 31, 2021						March 31, 2022						June 30, 2022
REVPOR Other revenues						$	13,870					$	13,612					$	14,105					$	16,182					$	16,021
Pro Forma adjustments to REVPOR Other(5)						(490)						—						(532)						(258)						—
Pro Forma REVPOR Other revenues						$	13,380					$	13,612					$	13,573					$	15,923					$	16,021
Average occupied units/month						1,104						1,134						1,142						1,261						1,261
Pro Forma REVPOR Other per month(4)						$	4,038					$	4,000					$	3,963					$	4,210					$	4,234

______________________________________

(1)May not foot due to rounding.

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

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

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

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

			36

---

Reconciliations
In thousands

Discontinued Operations Reconciliation

The results of discontinued operations during the three and six months ended June 30, 2022 and 2021, or through the disposal date of each asset or portfolio of assets if they have been sold during such periods, as applicable, are included within the Income (loss) from discontinued operations line of the Consolidated Statements of Operations in the accompanying Earnings Release and Supplemental Report. In order to facilitate reconciliation of amounts through this Discussion and Reconciliation of Non-GAAP Financial Measures and the accompanying Earnings Release and Supplemental Report, detailed financial information for discontinued operations for the three and six months ended June 30, 2022 and 2021 is presented below:

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
Revenues:
Rental and related revenues			$	—					$	1,613					$	—					$	6,841
Resident fees and services			2,825						30,273						5,480						103,270
Total revenues			2,825						31,886						5,480						110,111
Costs and expenses:
Interest expense			—						1,177						—						3,853
Operating			2,442						33,647						5,116						105,165
Transaction costs			—						—						—						76
Impairments and loan loss reserves (recoveries), net			—						10,995						—						10,995
Total costs and expenses			2,442						45,819						5,116						120,089
Other income (expense):
Gain (loss) on sales of real estate, net			2,563						122,238						2,492						381,900
Other income (expense), net			16						128						19						6,012
Total other income (expense), net			2,579						122,366						2,511						387,912
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures			2,962						108,433						2,875						377,934
Income tax benefit (expense)			30						302						370						1,124
Equity income (loss) from unconsolidated joint ventures			—						5,225						64						4,910
Income (loss) from discontinued operations			$	2,992					$	113,960					$	3,309					$	383,968

			37