HEALTHPEAK PROPERTIES, INC.DOC
HEALTHPEAK PROPERTIES, INC. Segments Disclosure
Segment Disclosures
The Company’s operating segments, based on how its chief operating decision maker (“CODM”), the President and CEO, evaluates the business and allocates resources, are as follows: (i) outpatient medical, (ii) lab, (iii) senior housing, (iv) loans receivable, (v) a preferred equity investment, and (vi) three other properties. The Company’s reportable segments, as determined in accordance with ASC 280, Segment Reporting, are as follows: (i) outpatient medical, (ii) lab, and (iii) senior housing. The loans receivable, preferred equity investment, and three other properties are non-reportable segments that have been presented on a combined basis within the Notes to the Consolidated Financial Statements herein. The accounting policies of the segments are the same as those described in the Company’s Summary of Significant Accounting Policies (see Note 2).
During the fourth quarter of 2025, in connection with the planned Offering of Janus Living and various other strategic initiatives, the Company’s CODM began evaluating the Company’s life plan communities and the SWF SH JV as a single operating and reportable segment, referred to as senior housing. Also during the fourth quarter of 2025, two other properties were reclassified from the outpatient medical segment to the other non-reportable segments as these properties are not representative of the characteristics of the outpatient medical segment and therefore, are no longer evaluated by the CODM in conjunction with the remaining outpatient medical properties. Also included in other non-reportable segments as of December 31, 2025 is one other property that was acquired as part of the Gateway Crossing acquisition. Accordingly, all prior period segment information has been recast to conform to the current period presentation.
The CODM evaluates performance based on property Adjusted NOI. Adjusted NOI is used to evaluate performance because it provides relevant and useful information by reflecting only income and operating expense items that are incurred at the property level and presenting it on an unlevered basis. Adjusted NOI represents real estate revenues (inclusive of rental and related revenues, resident fees and services, and government grant income and exclusive of interest income), less property level operating expenses; Adjusted NOI excludes all other financial statement amounts included in net income (loss). Adjusted NOI eliminates the effects of straight-line rents, amortization of market lease intangibles, termination fees, operator transition costs, and actuarial reserves for insurance claims that have been incurred but not reported.
Adjusted NOI is calculated as Adjusted NOI from consolidated properties, plus the Company’s share of Adjusted NOI from unconsolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period), less noncontrolling interests’ share of Adjusted NOI from consolidated joint ventures (calculated by applying the Company’s actual ownership percentage for the period). Management utilizes its share of Adjusted NOI in assessing its performance as the Company has various joint ventures that contribute to its performance.
Segment assets consist of real estate assets, intangible assets, and right-of-use assets. Non-segment assets consist of assets in the Company’s other non-reportable segments and corporate non-segment assets. Corporate non-segment assets consist primarily of corporate assets, including cash and cash equivalents, restricted cash, accounts receivable, other assets, and real estate assets held for sale. Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources.
The following table summarizes financial information for the reportable segments for the year ended December 31, 2025 (in thousands):
| Outpatient Medical | Lab | Senior Housing | Total | |||||||||||||||||||||||
| Total revenues | $ | 1,273,505 | $ | 860,020 | $ | 603,989 | $ | 2,737,514 | ||||||||||||||||||
Operating expenses(1) | (424,141) | (245,159) | (447,854) | (1,117,154) | ||||||||||||||||||||||
| Healthpeak’s share of unconsolidated joint venture revenues less expenses | 17,994 | 17,024 | 23,068 | 58,086 | ||||||||||||||||||||||
| Noncontrolling interests’ share of consolidated joint venture revenues less expenses | (27,817) | (33) | — | (27,850) | ||||||||||||||||||||||
Adjustments to NOI(2) | (43,698) | (64,494) | (2,462) | (110,654) | ||||||||||||||||||||||
| Adjusted NOI for reportable segments | $ | 795,843 | $ | 567,358 | $ | 176,741 | $ | 1,539,942 | ||||||||||||||||||
Plus: Adjustments to NOI(2) | 110,654 | |||||||||||||||||||||||||
| Other non-reportable revenues | 23,218 | |||||||||||||||||||||||||
| Interest income and other | 61,780 | |||||||||||||||||||||||||
| Other non-reportable operating expenses | (11,945) | |||||||||||||||||||||||||
| Depreciation and amortization | (1,058,865) | |||||||||||||||||||||||||
| Interest expense | (305,178) | |||||||||||||||||||||||||
| General and administrative | (90,416) | |||||||||||||||||||||||||
| Transaction and merger-related costs | (25,520) | |||||||||||||||||||||||||
| Impairments and loan loss reserves, net | 893 | |||||||||||||||||||||||||
| Gain (loss) on sales of real estate, net | 69,488 | |||||||||||||||||||||||||
| Other income (expense), net | 479 | |||||||||||||||||||||||||
| Less: Healthpeak’s share of unconsolidated joint venture revenues less expenses | (58,086) | |||||||||||||||||||||||||
| Plus: Noncontrolling interests’ share of consolidated joint venture revenues less expenses | 27,850 | |||||||||||||||||||||||||
| Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | $ | 284,294 | ||||||||||||||||||||||||
_______________________________________
(1)See reconciliation of significant expense categories below.
(2)Represents straight-line rents, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, and termination fees. Includes the Company’s share of income (loss) generated by unconsolidated joint ventures and excludes noncontrolling interests’ share of income (loss) generated by consolidated joint ventures.
The following table summarizes the Company’s significant expense categories by reportable segment for the year ended December 31, 2025 (in thousands):
| Outpatient Medical | Lab | Senior Housing | ||||||||||||||||||
Compensation and property management | $ | 58,955 | $ | 33,695 | $ | 286,689 | ||||||||||||||
Food | — | — | 27,263 | |||||||||||||||||
Real estate taxes | 97,633 | 77,140 | 15,937 | |||||||||||||||||
Repairs and maintenance | 65,311 | 35,529 | 20,212 | |||||||||||||||||
Utilities | 74,798 | 47,853 | 23,602 | |||||||||||||||||
Other segment items(1) | 127,444 | 50,942 | 74,151 | |||||||||||||||||
Operating expenses | $ | 424,141 | $ | 245,159 | $ | 447,854 | ||||||||||||||
_______________________________________
(1)Other segment items for each segment include:
•Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other expense.
•Senior housing – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other expense.
The following table summarizes financial information for the reportable segments for the year ended December 31, 2024 (in thousands):
| Outpatient Medical | Lab | Senior Housing | Total | |||||||||||||||||||||||
| Total revenues | $ | 1,184,660 | $ | 881,452 | $ | 568,475 | $ | 2,634,587 | ||||||||||||||||||
Operating expenses(1) | (395,105) | (239,620) | (429,248) | (1,063,973) | ||||||||||||||||||||||
| Healthpeak’s share of unconsolidated joint venture revenues less expenses | 15,007 | 13,367 | 22,303 | 50,677 | ||||||||||||||||||||||
| Noncontrolling interests’ share of consolidated joint venture revenues less expenses | (27,061) | (144) | — | (27,205) | ||||||||||||||||||||||
Adjustments to NOI(2) | (38,203) | (64,449) | (3,024) | (105,676) | ||||||||||||||||||||||
| Adjusted NOI for reportable segments | $ | 739,298 | $ | 590,606 | $ | 158,506 | $ | 1,488,410 | ||||||||||||||||||
Plus: Adjustments to NOI(2) | 105,676 | |||||||||||||||||||||||||
| Other non-reportable revenues | 21,084 | |||||||||||||||||||||||||
| Interest income and other | 44,778 | |||||||||||||||||||||||||
| Other non-reportable operating expenses | (10,888) | |||||||||||||||||||||||||
| Depreciation and amortization | (1,057,205) | |||||||||||||||||||||||||
| Interest expense | (280,430) | |||||||||||||||||||||||||
| General and administrative | (97,162) | |||||||||||||||||||||||||
| Transaction and merger-related costs | (132,685) | |||||||||||||||||||||||||
| Impairments and loan loss reserves, net | (22,978) | |||||||||||||||||||||||||
| Gain (loss) on sales of real estate, net | 178,695 | |||||||||||||||||||||||||
| Other income (expense), net | 59,345 | |||||||||||||||||||||||||
| Less: Healthpeak’s share of unconsolidated joint venture revenues less expenses | (50,677) | |||||||||||||||||||||||||
| Plus: Noncontrolling interests’ share of consolidated joint venture revenues less expenses | 27,205 | |||||||||||||||||||||||||
| Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | $ | 273,168 | ||||||||||||||||||||||||
_______________________________________
(1)See reconciliation of significant expense categories below.
(2)Represents straight-line rents, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, and termination fees. Includes the Company’s share of income (loss) generated by unconsolidated joint ventures and excludes noncontrolling interests’ share of income (loss) generated by consolidated joint ventures.
The following table summarizes the Company’s significant expense categories by reportable segment for the year ended December 31, 2024 (in thousands):
| Outpatient Medical | Lab | Senior Housing | ||||||||||||||||||
Compensation and property management | $ | 54,554 | $ | 33,058 | $ | 277,686 | ||||||||||||||
Food | — | — | 26,513 | |||||||||||||||||
Real estate taxes | 93,583 | 78,488 | 15,472 | |||||||||||||||||
Repairs and maintenance | 58,589 | 30,555 | 18,373 | |||||||||||||||||
Utilities | 68,199 | 50,793 | 22,309 | |||||||||||||||||
Other segment items(1) | 120,180 | 46,726 | 68,895 | |||||||||||||||||
Operating expenses | $ | 395,105 | $ | 239,620 | $ | 429,248 | ||||||||||||||
_______________________________________
(1)Other segment items for each segment include:
•Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other expense.
•Senior Housing – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other expense.
The following table summarizes financial information for the reportable segments for the year ended December 31, 2023 (in thousands):
| Outpatient Medical | Lab | Senior Housing | Total | |||||||||||||||||||||||
| Total revenues | $ | 732,279 | $ | 878,326 | $ | 527,417 | $ | 2,138,022 | ||||||||||||||||||
Government grant income(1) | — | — | 184 | 184 | ||||||||||||||||||||||
Operating expenses(2) | (252,744) | (229,630) | (413,472) | (895,846) | ||||||||||||||||||||||
| Healthpeak’s share of unconsolidated joint venture revenues less expenses | 1,844 | 5,832 | 21,844 | 29,520 | ||||||||||||||||||||||
| Noncontrolling interests’ share of consolidated joint venture revenues less expenses | (25,152) | (463) | — | (25,615) | ||||||||||||||||||||||
Adjustments to NOI(3) | (14,382) | (36,524) | (1,252) | (52,158) | ||||||||||||||||||||||
| Adjusted NOI for reportable segments | $ | 441,845 | $ | 617,541 | $ | 134,721 | $ | 1,194,107 | ||||||||||||||||||
Plus: Adjustments to NOI(3) | 52,158 | |||||||||||||||||||||||||
| Other non-reportable revenues | 21,200 | |||||||||||||||||||||||||
| Interest income and other | 21,781 | |||||||||||||||||||||||||
| Other non-reportable operating expenses | (10,388) | |||||||||||||||||||||||||
| Corporate non-segment operating expenses | 4,174 | |||||||||||||||||||||||||
| Depreciation and amortization | (749,901) | |||||||||||||||||||||||||
| Interest expense | (200,331) | |||||||||||||||||||||||||
| General and administrative | (95,132) | |||||||||||||||||||||||||
| Transaction and merger-related costs | (17,515) | |||||||||||||||||||||||||
| Impairments and loan loss reserves, net | 5,601 | |||||||||||||||||||||||||
| Gain (loss) on sales of real estate, net | 86,463 | |||||||||||||||||||||||||
| Other income (expense), net | 6,808 | |||||||||||||||||||||||||
| Less: Government grant income | (184) | |||||||||||||||||||||||||
| Less: Healthpeak’s share of unconsolidated joint venture revenues less expenses | (29,520) | |||||||||||||||||||||||||
| Plus: Noncontrolling interests’ share of consolidated joint venture revenues less expenses | 25,615 | |||||||||||||||||||||||||
| Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | $ | 314,936 | ||||||||||||||||||||||||
_______________________________________
(1)Represents government grant income received under the CARES Act, which is recorded in other income (expense), net in the Consolidated Statements of Operations (see Note 2).
(2)See reconciliation of significant expense categories below.
(3)Represents straight-line rents, amortization of market lease intangibles, net, actuarial reserves for insurance claims that have been incurred but not reported, and termination fees. Includes the Company’s share of income (loss) generated by unconsolidated joint ventures and excludes noncontrolling interests’ share of income (loss) generated by consolidated joint ventures.
The following table summarizes the Company’s significant expense categories by reportable segment for the year ended December 31, 2023 (in thousands):
| Outpatient Medical | Lab | Senior Housing | ||||||||||||||||||
Compensation and property management | $ | 28,510 | $ | 18,096 | $ | 260,624 | ||||||||||||||
Food | — | — | 25,076 | |||||||||||||||||
Real estate taxes | 57,148 | 77,690 | 15,851 | |||||||||||||||||
Repairs and maintenance | 35,832 | 30,554 | 17,295 | |||||||||||||||||
Utilities | 41,830 | 45,490 | 22,787 | |||||||||||||||||
Other segment items(1) | 89,424 | 57,800 | 71,839 | |||||||||||||||||
Operating expenses | $ | 252,744 | $ | 229,630 | $ | 413,472 | ||||||||||||||
_______________________________________
(1)Other segment items for each segment include:
•Outpatient medical and lab – (i) Cleaning expense, (ii) ground rent expense, (iii) insurance expense, (iv) roads and grounds expense, (v) security expense, and (vi) other expense.
•Senior Housing – (i) Cleaning and supplies, (ii) insurance expense, (iii) marketing expense, and (iv) other expense.
The following table summarizes the Company’s revenues by reportable segment (in thousands):
December 31, | ||||||||||||||||||||
| Segment | 2025 | 2024 | 2023 | |||||||||||||||||
Outpatient medical | $ | 1,273,505 | $ | 1,184,660 | $ | 732,279 | ||||||||||||||
Lab | 860,020 | 881,452 | 878,326 | |||||||||||||||||
Senior housing | 603,989 | 568,475 | 527,417 | |||||||||||||||||
Total revenues for reportable segments | 2,737,514 | 2,634,587 | 2,138,022 | |||||||||||||||||
Total revenues for other non-reportable | 23,218 | 21,084 | 21,200 | |||||||||||||||||
| Interest income and other | 61,780 | 44,778 | 21,781 | |||||||||||||||||
| Total revenues | $ | 2,822,512 | $ | 2,700,449 | $ | 2,181,003 | ||||||||||||||
At each of December 31, 2025 and 2024, goodwill of $69 million was allocated to the Company’s reportable segments as follows: (i) $65 million for outpatient medical and (ii) $4 million for senior housing.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 3, 2026 | Showing above |
| 2024 | Feb 4, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 10, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 13, 2017 | |
| 2015 | Feb 9, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.