Healthpeak Properties Provides Strategic Initiatives Update and Reports Third Quarter 2025 Results

Healthpeak Properties, Inc. (NYSE: DOC), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, today provided a strategic initiatives update and announced results for the quarter ended September 30, 2025.

STRATEGIC INITIATIVES AND COMMENTARY

• Outpatient medical demand is growing faster than new supply, which, combined with our leading platform and deep health system relationships, is driving strong cash re-leasing spreads including +5.4% in the quarter, higher annual escalators including +3% on leases signed in the quarter versus +2.7% on the existing portfolio, and low tenant improvement outlays which represented less than 5% of rent on renewals signed in the quarter. Total occupancy was up +10 basis points sequentially.
• Private market values for outpatient medical buildings have strengthened as inflation and interest rates have declined. We are in various stages of negotiation on opportunistic sales and recapitalizations that could generate proceeds of $1 billion or more at attractive prices. We would use proceeds from any such sales/recaps to further strengthen our balance sheet and recycle capital into highly pre-leased new outpatient medical developments, acquire distressed and opportunistic lab properties with significant upside, and/or repurchase shares. Our merger with Physicians Realty Trust has proven timely, as we have benefited from these strengthening prices. Our merger integration is complete, and was highly successful.
• We believe there has been a palpable shift in sentiment across the biopharma sector since the start of the school year driven by M&A activity, clinical data readouts, lower interest rates, reduced regulatory uncertainty, and biopharma stock price performance. The improved sentiment will take time to flow through to leasing executions, but we’re already seeing a pickup in leasing activity. Our pipeline is at its highest level since Q2 2024, and with a higher allocation toward new leasing. While we still expect our Lab occupancy to decline near-term due to expirations and early terminations, the recent trends suggest the underlying biopharma sector may be approaching an inflection point.
• NOI from our 15-asset CCRC portfolio is up more than +50% since 2019, and year-to-date same-store growth is up +11% over the prior year. We see further upside potential from higher occupancy and margin expansion. Total occupancy was up +70 basis points sequentially.
• We are deeply engaged in advancing our technology innovation initiatives. The early rollout of our tech-enabled platform has already improved company-wide connectivity, data access, and productivity, including a 5% reduction in our G&A guidance this year. Over time, the tech platform we’re building is intended to deliver more than just efficiency gains. We believe it will enable new ways to engage our clients and leasing prospects, enhance property performance, and drive differentiation versus other owners.
• Our strong balance sheet (5.3x debt/EBITDA) and well-covered dividend (71% AFFO payout ratio year-to-date) remain key strengths of the platform, allowing us to deploy capital opportunistically.

THIRD QUARTER 2025 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS

• Net income (loss) of $(0.17) per share, Nareit FFO of $0.45 per share, FFO as Adjusted of $0.46 per share, AFFO of $0.42 per share, and Total Merger-Combined Same-Store Cash (Adjusted) NOI growth of 0.9%
• On October 6, 2025, Healthpeak's Board of Directors declared a monthly common stock cash dividend of $0.10167 per share for each of October, November, and December of 2025 representing cash dividends totaling $0.305 per share for the fourth quarter, and an annualized dividend amount of $1.22 per share
• Third quarter new and renewal lease executions totaled 1.5 million square feet:
  • Outpatient Medical new and renewal lease executions totaled 1.2 million square feet, with +5.4% cash releasing spreads on renewals
    • Subsequent to the third quarter, and through October 23, 2025, executed 123,000 square feet of Outpatient Medical leases with signed letters of intent on an additional 895,000 square feet
  • Lab new and renewal lease executions totaled 339,000 square feet, with +4.6% cash releasing spreads on renewals
    • Subsequent to the third quarter, and through October 23, 2025, executed 22,000 square feet of Lab leases with signed letters of intent on an additional 291,000 square feet
• Third quarter CCRC Merger-Combined Same-Store Cash (Adjusted) NOI growth of 9.4% bringing year-to-date growth to 11.3%; year-to-date non-refundable entry fee cash collections totaled $108 million, an increase of 13% compared to the same period last year
• Hired Denis Sullivan as Managing Director of Lab Investments & San Diego Market Lead and promoted Mike Dorris to Head of West Coast Development & Construction underscoring Healthpeak's conviction in the life science sector and positioning the Company to capture investment and leasing opportunities as the market recovers
• Year-to-date asset sales and loan repayments totaling $160 million
  • $204 million of additional asset sales under contract as of October 23, 2025
• Balance Sheet
  • As previously disclosed, in August 2025, Healthpeak issued $500 million of 4.75% senior unsecured notes due 2033
  • Net Debt to Adjusted EBITDAre was 5.3x for the quarter ended September 30, 2025
  • As of October 23, 2025, Healthpeak had approximately $2.7 billion in available liquidity through a combination of unrestricted cash and availability under its revolving credit facility
• Published 14^th annual Corporate Impact Report detailing Healthpeak's comprehensive approach to corporate responsibility and sustainability

THIRD QUARTER COMPARISON

	Three Months Ended September 30, 2025								Three Months Ended September 30, 2024
(in thousands, except per share amounts)	Amount				Per Share				Amount			Per Share
Diluted Net income (loss) applicable to common shares(1)	$	(117,256	)		$	(0.17	)		$	85,722		$	0.12
Diluted Nareit FFO applicable to common shares		322,706				0.45				315,824			0.44
Diluted FFO as Adjusted applicable to common shares		323,301				0.46				320,776			0.45
Diluted AFFO applicable to common shares		296,524				0.42				300,555			0.42

YEAR TO DATE COMPARISON

	Nine Months Ended September 30, 2025								Nine Months Ended September 30, 2024
(in thousands, except per share amounts)	Amount				Per Share				Amount			Per Share
Diluted Net income (loss) applicable to common shares(1)	$	(43,335	)		$	(0.06	)		$	238,057		$	0.36
Diluted Nareit FFO applicable to common shares		954,153				1.34				797,546			1.17
Diluted FFO as Adjusted applicable to common shares		978,802				1.38				918,665			1.35
Diluted AFFO applicable to common shares		917,712				1.29				844,952			1.24

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(1)		See footnote 3 from the reconciliation of Funds From Operation for further detail.

MERGER-COMBINED SAME-STORE ("SS") OPERATING SUMMARY

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

Year-Over-Year Total Merger-Combined SS Cash (Adjusted) NOI Growth
	Three Month					Year-To-Date
	SS Growth %		% of SS			SS Growth %		% of SS
Outpatient Medical	2.0	%	56.1	%		3.6	%	55.5	%
Lab	(3.2	%)	33.3	%		2.0	%	33.8	%
CCRC	9.4	%	10.6	%		11.3	%	10.7	%
Total Merger-Combined SS Cash (Adjusted) NOI	0.9	%	100.0	%		3.8	%	100.0	%

Nareit FFO, FFO as Adjusted, AFFO, Total Merger-Combined Same-Store Cash (Adjusted) NOI, and Net Debt to Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts. See "September 30, 2025 Discussion and Reconciliation of Non-GAAP Financial Measures" for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP, available in the Investor Relations section of our website at http://ir.healthpeak.com/quarterly-results. See also the "Funds From Operations" and "Adjusted Funds From Operations" sections of this release for additional information.

DIVIDEND

On October 6, 2025, Healthpeak's Board of Directors declared a monthly common stock cash dividend of $0.10167 per share for each of October, November, and December of 2025 representing cash dividends totaling $0.305 per share for the fourth quarter, and an annualized dividend amount of $1.22 per share. The dividend is payable on the payment dates set forth in the table below to stockholders of record as of the close of business on the corresponding record date.

Record Date	Payment Date	Amount
October 17, 2025	October 30, 2025	$0.10167 per common share
November 14, 2025	November 26, 2025	$0.10167 per common share
December 19, 2025	December 30, 2025	$0.10167 per common share

DISPOSITIONS AND LOAN REPAYMENTS

DISPOSITIONS

As previously disclosed, in July 2025, Healthpeak sold two outpatient medical buildings for combined proceeds of approximately $31 million.

As of October 23, 2025, Healthpeak is under contract on four fully stabilized, 100% occupied outpatient medical dispositions totaling approximately $136 million at a blended 6.1% cash capitalization rate. The sales are expected to close in the fourth quarter.

Additionally, Healthpeak has received notice from the ground lessor of its intent to exercise a previously disclosed fixed-price purchase option for our leasehold interest in a four-building, 239,000 square foot lab campus in Salt Lake City, Utah. The contractual purchase price is $68 million, representing a cash capitalization rate of approximately 11%. The sale is expected to close in January 2026.

LOAN REPAYMENTS

In August 2025, Healthpeak received loan repayments of $58 million at a blended interest rate of 9% bringing total year-to-date loan repayments to $125 million at a blended interest rate of 10%.

BALANCE SHEET

As previously disclosed, in August 2025, Healthpeak issued $500 million of 4.75% senior unsecured notes due 2033. The offering priced at a 92 basis point spread over the reference U.S. Treasury bond, representing the lowest 7-year spread of any BBB+/Baa1 rated REIT year-to-date.

As of October 23, 2025, Healthpeak had approximately $2.7 billion in available liquidity through a combination of unrestricted cash and availability under its revolving credit facility.

CORPORATE IMPACT AND SUSTAINABILITY

In September, Healthpeak published its 14th annual Corporate Impact Report highlighting its continued focus on building a resilient portfolio, advancing sustainability goals, fostering a workplace culture guided by its WE CARE core values, and promoting sound corporate governance and transparency.

RECENT CORPORATE IMPACT AND SUSTAINABILITY ACHIEVEMENTS

• Named to the Top 10 in Real Estate from 3BL Media's 100 Best Corporate Citizens List
• Named as a finalist for the Corporate Governance Awards - Best Proxy Statement (Mid Cap) by Corporate Secretary & IR Magazine
• Named to Newsweek America's Greatest Companies list
• Earned a 2025 International MarCom Gold Award for the Company’s 2024 Corporate Impact Report from the Association of Marketing and Communication Professionals (AMCP) for the second year

To learn more about Healthpeak's commitment to responsible business, please visit www.healthpeak.com/corporate-impact.

2025 GUIDANCE

We are reaffirming the following guidance ranges for full year 2025:

• Diluted Nareit FFO per share of $1.78 – $1.84
• Diluted FFO as Adjusted per share of $1.81 – $1.87
• Total Merger-Combined Same-Store Cash (Adjusted) NOI growth of 3.0% – 4.0%

We are updating the following guidance range for full year 2025:

• Diluted earnings per common share from $0.25 – $0.31 to $0.00 – $0.06

These estimates are based on our current view of existing market conditions, transaction timing, and other assumptions for the year ending December 31, 2025. For additional details and assumptions, please see page 13 in our corresponding Supplemental Report and the Discussion and Reconciliation of Non-GAAP Financial Measures, both of which are available in the Investor Relations section of our website at http://ir.healthpeak.com.

CONFERENCE CALL INFORMATION

Healthpeak has scheduled a conference call and webcast for Friday, October 24, 2025, at 8:00 a.m. Mountain Time.

The conference call can be accessed in the following ways:

• Healthpeak’s website: https://ir.healthpeak.com/news-events
• Webcast: https://events.q4inc.com/attendee/161073286. Joining via webcast is recommended for those who will not be asking questions.
• Telephone: The participant dial-in number is (800) 715-9871

An archive of the webcast will be available on Healthpeak’s website through October 23, 2026, and a telephonic replay can be accessed through October 31, 2025, by dialing (800) 770-2030 and entering conference ID number 95156.

ABOUT HEALTHPEAK

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

FORWARD-LOOKING STATEMENTS

Statements contained in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, developments, redevelopments, joint venture transactions, leasing activity and commitments, financing activities, or other transactions discussed in this release; (ii) the payment of a monthly cash dividend; and (iii) the information presented under the heading "2025 Guidance Information." Pending acquisitions, dispositions, joint venture transactions, leasing activity, and financing activity, including those subject to binding agreements, remain subject to closing conditions and may not be completed within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: macroeconomic trends that may increase construction, labor and other operating costs; changes within the life science industry, and significant regulation, funding requirements, and uncertainty faced by our lab tenants; factors adversely affecting our tenants’, operators’, or borrowers’ ability to meet their financial and other contractual obligations to us; the insolvency or bankruptcy of one or more of our major tenants, operators, or borrowers; our concentration of real estate investments in the healthcare property sector, which makes us more vulnerable to a downturn in that specific sector than if we invested across multiple sectors; the illiquidity of real estate investments; our ability to identify and secure new or replacement tenants and operators; our property development, redevelopment, and tenant improvement risks, which can render a project less profitable or unprofitable and delay or prevent its undertaking or completion; the ability of the hospitals on whose campuses our outpatient medical buildings are located and their affiliated healthcare systems to remain competitive or financially viable; our ability to develop, maintain, or expand hospital and health system client relationships; operational risks associated with our senior housing properties managed by third parties, including our properties operated through structures permitted by the Housing and Economic Recovery Act of 2008, which includes most of the provisions previously proposed in the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”); economic conditions, natural disasters, weather, and other conditions that negatively affect geographic areas where we have concentrated investments; uninsured or underinsured losses, which could result in a significant loss of capital invested in a property, lower than expected future revenues, and unanticipated expenses; our use of joint ventures may limit our returns on and our flexibility with jointly owned investments; our use of rent escalators or contingent rent provisions in our leases; competition for suitable healthcare properties to grow our investment portfolio; our ability to exercise rights on collateral securing our real estate-related loans; any requirement that we recognize reserves, allowances, credit losses, or impairment charges; investment of substantial resources and time in transactions that are not consummated; our ability to successfully integrate and/or operate acquisitions or internalize property management; the potential impact of unfavorable resolution of litigation or disputes and resulting rising liability and insurance costs; environmental compliance costs and liabilities associated with our real estate investments; environmental, social and governance and sustainability commitments and requirements, as well as stakeholder expectations; epidemics, pandemics, or other infectious diseases, including the coronavirus disease (Covid), and health and safety measures intended to reduce their spread; human capital risks, including the loss or limited availability of our key personnel; our reliance on information technology and any material failure, inadequacy, interruption, or security failure of that technology; the use of, or inability to use, artificial intelligence by us, our tenants, our vendors, and our investors; volatility, disruption, or uncertainty in the financial markets; increased borrowing costs, which could impact our ability to refinance existing debt, sell properties, and conduct investment activities; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; the availability of external capital on acceptable terms or at all; an increase in our level of indebtedness; covenants in our debt instruments, which may limit our operational flexibility, and breaches of these covenants; volatility in the market price and trading volume of our common stock; adverse changes in our credit ratings; the failure of our tenants, operators, and borrowers to comply with federal, state, and local laws and regulations, including resident health and safety requirements, as well as licensure, certification, and inspection requirements; required regulatory approvals to transfer our senior housing properties; compliance with the Americans with Disabilities Act and fire, safety, and other regulations; laws or regulations prohibiting eviction of our tenants; the requirements of, or changes to, governmental reimbursement programs such as Medicare or Medicaid, and legislation to address federal government operations and administrative decisions affecting the Centers for Medicare and Medicaid Services; our participation in the Coronavirus, Aid, Relief and Economic Security Act Provider Relief Fund and other Covid-related stimulus and relief programs; changes in federal, state, or local laws or regulations that may limit our opportunities to participate in the ownership of, or investment in, healthcare real estate; our ability to successfully integrate our operations with Physicians Realty Trust and realize the anticipated synergies of our merger with Physicians Realty Trust and benefits of property management internalization; our ability to maintain our qualification as a real estate investment trust (“REIT”); our taxable REIT subsidiaries being subject to corporate level tax; tax imposed on any net income from “prohibited transactions”; changes to U.S. federal income tax laws, and potential deferred and contingent tax liabilities from corporate acquisitions; calculating non-REIT tax earnings and profits distributions; tax protection agreements that may limit our ability to dispose of certain properties and may require us to maintain certain debt levels; ownership limits in our charter that restrict ownership in our stock, and provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders; conflicts of interest between the interests of our stockholders and the interests of holders of Healthpeak OP, LLC (“Healthpeak OP”) common units; provisions in the operating agreement of Healthpeak OP and other agreements that may delay or prevent unsolicited acquisitions and other transactions; our status as a holding company of Healthpeak OP; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings.

Moreover, other risks and uncertainties of which we are not currently aware may also affect our forward-looking statements, and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this communication are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by us on our website or otherwise. We do not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.

Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data
	September 30, 2025				December 31, 2024
Assets
Real estate:
Buildings and improvements	$	16,192,972			$	16,115,283
Development costs and construction in progress		1,148,903				880,393
Land and improvements		2,927,571				2,918,758
Accumulated depreciation and amortization		(4,438,273	)			(4,083,030	)
Net real estate		15,831,173				15,831,404
Loans receivable, net of reserves of $11,602 and $10,499		673,502				717,190
Investments in and advances to unconsolidated joint ventures		796,171				936,814
Accounts receivable, net of allowance of $1,933 and $2,243		80,845				76,810
Cash and cash equivalents		91,038				119,818
Restricted cash		68,694				64,487
Intangible assets, net		610,513				817,254
Assets held for sale, net		67,593				7,840
Right-of-use asset, net		417,365				424,173
Other assets, net		945,507				942,465
Total assets	$	19,582,401			$	19,938,255
Liabilities and Equity
Bank line of credit and commercial paper	$	368,125			$	150,000
Term loans		1,646,912				1,646,043
Senior unsecured notes		6,766,350				6,563,256
Mortgage debt		350,174				356,750
Intangible liabilities, net		155,557				191,884
Liabilities related to assets held for sale, net		12,371				—
Lease liability		301,302				307,220
Accounts payable, accrued liabilities, and other liabilities		746,229				725,342
Deferred revenue		970,077				940,136
Total liabilities		11,317,097				10,880,631
Commitments and contingencies
Redeemable noncontrolling interests		27,809				2,610
Common stock, $1.00 par value: 1,500,000,000 shares authorized; 694,946,444 and 699,485,139 shares issued and outstanding		694,946				699,485
Additional paid-in capital		12,765,070				12,847,252
Cumulative dividends in excess of earnings		(5,854,766	)			(5,174,279	)
Accumulated other comprehensive income (loss)		(7,975	)			28,818
Total stockholders’ equity		7,597,275				8,401,276
Joint venture partners		296,477				315,821
Non-managing member unitholders		343,743				337,917
Total noncontrolling interests		640,220				653,738
Total equity		8,237,495				9,055,014
Total liabilities and equity	$	19,582,401			$	19,938,255

Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
Revenues:
Rental and related revenues	$	539,886			$	543,251			$	1,607,714			$	1,552,065
Resident fees and services		150,458				142,845				448,240				422,512
Interest income and other		15,529				14,301				47,156				27,884
Total revenues		705,873				700,397				2,103,110				2,002,461
Costs and expenses:
Interest expense		76,784				74,105				224,540				209,922
Depreciation and amortization		262,317				280,019				796,779				782,736
Operating		291,922				280,279				841,246				797,835
General and administrative		19,907				23,216				66,789				73,233
Transaction and merger-related costs		2,420				7,134				18,169				122,113
Impairments and loan loss reserves (recoveries), net		(54	)			441				(117	)			11,346
Total costs and expenses		653,296				665,194				1,947,406				1,997,185
Other income (expense):
Gain (loss) on sales of real estate, net		11,500				62,325				13,136				187,624
Other income (expense), net		1,160				982				(9,658	)			83,502
Total other income (expense), net		12,660				63,307				3,478				271,126
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures		65,237				98,510				159,182				276,402
Income tax benefit (expense)		1,206				(1,938	)			(3,256	)			(18,364	)
Equity income (loss) from unconsolidated joint ventures		(176,291	)			(3,834	)			(176,691	)			(1,407	)
Net income (loss)		(109,848	)			92,738				(20,765	)			256,631
Noncontrolling interests’ share in earnings		(7,274	)			(6,866	)			(21,856	)			(18,036	)
Net income (loss) attributable to Healthpeak Properties, Inc.		(117,122	)			85,872				(42,621	)			238,595
Participating securities’ share in earnings		(134	)			(197	)			(714	)			(610	)
Net income (loss) applicable to common shares	$	(117,256	)		$	85,675			$	(43,335	)		$	237,985
Earnings (loss) per common share:
Basic	$	(0.17	)		$	0.12			$	(0.06	)		$	0.36
Diluted	$	(0.17	)		$	0.12			$	(0.06	)		$	0.36
Weighted average shares outstanding:
Basic		694,930				699,349				696,380				667,536
Diluted		694,930				700,146				696,380				668,096

Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net income (loss) applicable to common shares		$	(117,256	)		$	85,675			$	(43,335	)		$	237,985
Real estate related depreciation and amortization			262,317				280,019				796,779				782,736
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures			12,574				12,127				37,304				32,520
Noncontrolling interests’ share of real estate related depreciation and amortization			(3,807	)			(4,534	)			(12,686	)			(13,705	)
Loss (gain) on sales of depreciable real estate, net			(11,500	)			(62,325	)			(13,136	)			(187,624	)
Loss (gain) upon change of control, net(1)			—				430				—				(77,548	)
Taxes associated with real estate dispositions(2)			—				(145	)			(335	)			11,512
Impairments (recoveries) of real estate, net(3)			175,827				—				175,827				—
Nareit FFO applicable to common shares			318,155				311,247				940,418				785,876
Distributions on dilutive convertible units and other			4,551				4,577				13,735				11,670
Diluted Nareit FFO applicable to common shares		$	322,706			$	315,824			$	954,153			$	797,546
Diluted Nareit FFO per common share		$	0.45			$	0.44			$	1.34			$	1.17
Weighted average shares outstanding - Diluted Nareit FFO			709,513				714,715				711,023				681,128
Impact of adjustments to Nareit FFO:
Transaction and merger-related items(4)		$	2,420			$	2,725			$	18,169			$	108,923
Other impairments (recoveries) and other losses (gains), net(5)			(54	)			441				125				11,741
Casualty-related charges (recoveries), net(6)			(1,771	)			1,792				6,375				588
Total adjustments			595				4,958				24,669				121,252
FFO as Adjusted applicable to common shares			318,750				316,205				965,087				907,128
Distributions on dilutive convertible units and other			4,551				4,571				13,715				11,537
Diluted FFO as Adjusted applicable to common shares		$	323,301			$	320,776			$	978,802			$	918,665
Diluted FFO as Adjusted per common share		$	0.46			$	0.45			$	1.38			$	1.35
Weighted average shares outstanding - Diluted FFO as Adjusted			709,513				714,715				711,023				681,128

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(1)		The nine months ended September 30, 2024 includes a gain upon change of control related to the sale of a 65% interest in two lab buildings in San Diego, California. The gain upon change of control is included in other income (expense), net in the Consolidated Statements of Operations.
(2)		The nine months ended September 30, 2024 includes non-cash income tax expense related to the sale of a 65% interest in two lab buildings in San Diego, California.
(3)		The three and nine months ended September 30, 2025 includes other-than-temporary impairment charges on certain unconsolidated real estate joint ventures. During the three months ended September 30, 2025, we concluded that the decline in fair values of these joint ventures was other-than-temporary due to the length of time and extent of which the fair values have been less than carrying value. Other-than-temporary impairment charges on our unconsolidated joint ventures are recognized in equity income (loss) from unconsolidated joint ventures in the Consolidated Statements of Operations.
(4)		The three and nine months ended September 30, 2025 and 2024 include costs related to the merger, which are primarily comprised of advisory, legal, accounting, tax, information technology, post-combination severance and stock compensation expense, and other costs of combining operations with Physicians Realty Trust that were incurred during the period. The nine months ended September 30, 2025 also includes $6 million of costs incurred related to certain investments we are no longer pursuing. For the three and nine months ended September 30, 2024, these costs were partially offset by termination fee income of $4 million and $13 million, respectively, associated with Graphite Bio, Inc., which later merged with LENZ Therapeutics, Inc. in March 2024, for which the lease terms were modified to accelerate expiration of the lease to December 2024. This termination fee income is included in rental and related revenues on the Consolidated Statements of Operations, but is excluded from Portfolio Cash Real Estate Revenues and FFO as Adjusted.
(5)		The three and nine months ended September 30, 2025 and 2024 include reserves and (recoveries) for expected loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations.
(6)		Casualty-related charges (recoveries), net are recognized in other income (expense), net, equity income (loss) from unconsolidated joint ventures, and noncontrolling interests' share in earnings in the Consolidated Statements of Operations.

Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands, except per share data
	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024
FFO as Adjusted applicable to common shares	$	318,750			$	316,205			$	965,087			$	907,128
Stock-based compensation amortization expense		4,046				3,755				10,410				11,935
Amortization of deferred financing costs and debt discounts (premiums)		7,981				7,408				23,708				19,247
Straight-line rents		(14,282	)			(10,346	)			(30,836	)			(32,891	)
AFFO capital expenditures		(27,261	)			(23,510	)			(76,125	)			(76,744	)
CCRC entrance fees(1)		12,711				11,046				36,449				30,548
Deferred income taxes		(179	)			585				4,989				2,330
Amortization of above (below) market lease intangibles, net		(8,105	)			(7,887	)			(28,402	)			(23,325	)
Other AFFO adjustments		(1,687	)			(1,277	)			(1,303	)			(4,947	)
AFFO applicable to common shares		291,974				295,979				903,977				833,281
Distributions on dilutive convertible units and other		4,550				4,576				13,735				11,671
Diluted AFFO applicable to common shares(1)	$	296,524			$	300,555			$	917,712			$	844,952
Diluted AFFO per common share(1)	$	0.42			$	0.42			$	1.29			$	1.24
Weighted average shares outstanding - Diluted AFFO		709,513				714,715				711,023				681,128

_______________________________________
(1)		During the first quarter of 2025, we changed our definition of AFFO to adjust for the non-refundable entrance fees collected in excess of the related amortization as we believe the cash collection of these fees is a more meaningful representation of the performance of CCRCs in the determination of AFFO. Utilizing the prior definition for the three months ended September 30, 2025 and 2024, diluted AFFO applicable to common shares was $283.8 million and $289.5 million, respectively, and diluted AFFO per common share was $0.40 and $0.41, respectively. Utilizing the prior definition for the nine months ended September 30, 2025 and 2024, diluted AFFO applicable to common shares was $881.3 million and $814.4 million, respectively, and diluted AFFO per common share was $1.24 and $1.20, respectively.

 

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