The Company completed its merger with Physicians Realty Trust on March 1, 2024, acquiring 299 outpatient medical buildings. This merger was undertaken to expand the Company's size, scale, and diversification, enhancing competitive advantages and accelerating investment activities in the healthcare real estate sector.

Development and redevelopment commitments increased by $42 million to $326 million at June 30, 2025, reflecting new projects placed into development. Additionally, in February 2025, the Company acquired a portfolio of three outpatient medical buildings for $17 million and a lab land parcel for $20 million, demonstrating ongoing organic and inorganic growth.

During the three months ended June 30, 2025, the Company sold one outpatient medical land parcel for $4 million, realizing a $3 million gain. Post-period, in July 2025, two outpatient medical buildings were sold for $27 million, indicating a strategic approach to divesting non-core or mature assets to recycle capital.

General and administrative expenses decreased by $5.954 million for the three months ended June 30, 2025, to $20.764 million, and by $3.135 million for the six months, to $46.882 million, primarily as a result of merger-related synergies. This indicates effective integration and cost management post-acquisition.

During the quarter ended June 30, 2025, the Company completed the implementation of a new enterprise resource planning (ERP) system. This significant upgrade resulted in considerable changes to processes and the control environment, with management concluding that disclosure controls and procedures were effective.

The Company actively managed its debt by repaying $348 million and $452 million in senior unsecured notes in February and June 2025, respectively. Concurrently, it repurchased 5.09 million shares for $94 million under the 2024 Share Repurchase Program, signaling management's confidence in the company's valuation and future cash flows.

The Company stated that there have been no material changes to the primary risk factors described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. This suggests a stable risk profile relative to the previous reporting period.

The Company acknowledges ongoing challenges from higher interest rates, inflation, and increased construction and labor costs. These macroeconomic trends continue to adversely impact borrowing costs, real estate values, and the expected yields on capital projects, posing a persistent risk to profitability.

A budget reconciliation bill signed into law on July 4, 2025, modifies the REIT asset test (increasing TRS limit to 25%) and permanently extends the Section 199A deduction. While some provisions may be beneficial, the bill also contains numerous provisions that could adversely affect tenants, partners, and operators, particularly concerning Medicaid, life sciences, and drug pricing.

The merger with Physicians Realty Trust, which added 299 outpatient medical buildings, was primarily aimed at expanding the Company's size, scale, and diversification. This strategic move is expected to further enhance Healthpeak's competitive advantages in the healthcare discovery and delivery real estate market.

The CCRC segment's average occupancy increased to 86.0% for the three months ended June 30, 2025, from 85.4% in the prior year, with average annual rent per occupied unit rising to $98,028 from $93,166. This performance, driven by increased resident fees and higher occupancy, suggests a robust competitive position in this segment.

The Outpatient Medical segment's end-of-period occupancy decreased slightly to 91.9% from 92.7% YoY for the three months ended June 30, 2025. Similarly, the Lab segment's occupancy declined to 95.0% from 97.8%. While the merger expanded the portfolio, these figures indicate some integration challenges or market shifts impacting occupancy in core segments.

General and administrative expenses decreased by $5.954 million for the three months ended June 30, 2025, compared to the prior year, and by $3.135 million for the six months. This reduction is primarily a direct result of merger-related synergies, indicating successful integration efforts contributing to operational efficiency.

Merger-Combined Same-Store Adjusted NOI for the Outpatient Medical and Lab segments was partially offset by 'higher operating expenses, net of savings from our internalization of property management.' This suggests that efforts to bring property management in-house are yielding cost efficiencies, enhancing operational control.

While the CCRC segment saw increased rates for resident fees and higher occupancy, its Adjusted NOI growth was partially offset by 'higher costs of labor, management fees, and other operating expenses.' This indicates specific cost pressures within the CCRC segment that are impacting overall operational efficiency.

During the second quarter of 2025, the Company completed the implementation of a new enterprise resource planning (ERP) system. This initiative involved considerable changes to processes, applications, interfaces, and reports, indicating a significant digital transformation effort to enhance operational capabilities.

The Company holds aggregate investments of $2 million in funds that make venture capital investments in various early-stage technology solutions. This includes a remaining funding commitment of $10 million expected to be funded over the next five years, signaling an ongoing strategic interest in innovation within the healthcare technology space.

The 10-Q lists 'our reliance on information technology and any material failure, inadequacy, interruption, or security failure of that technology' as a principal risk factor. This highlights the critical role of technology in the Company's operations and the inherent risks associated with its performance and security.

The Board of Directors declared an increase in the quarterly common stock cash dividend from $0.300 to $0.305 per share, resulting in an annualized dividend of $1.220 per share. This, coupled with the transition to monthly payments, signals management's confidence in the Company's ability to sustain and grow distributions to stockholders.

The Company repurchased 5.09 million shares of common stock for a total of $94 million during the six months ended June 30, 2025, under the 2024 Share Repurchase Program. With $406 million remaining available under the program, this indicates a commitment to returning capital to shareholders and potentially signals management's belief that the stock is undervalued.

Total material cash requirements related to debt increased by $325 million to $9 billion at June 30, 2025. This was primarily due to the issuance of $500 million in senior unsecured notes and a $625 million increase in commercial paper, partially offset by the repayment of $348 million and $452 million in senior unsecured notes.

The 2027 Term Loans include a sustainability-linked pricing component, allowing for a 0.01% reduction in the applicable margin based on the Company's achievement of specified sustainability-linked metrics. This indicates an effort to align financial incentives with environmental and social performance goals.

The Company lists 'environmental, social, and governance (“corporate impact”) and sustainability commitments and requirements, as well as stakeholder expectations' as a risk factor. This highlights that while ESG initiatives are pursued, they also introduce potential compliance costs and operational challenges.

Beyond the mention of sustainability-linked debt and general risk factors, the 10-Q does not provide detailed quantitative or qualitative updates on specific environmental commitments, social responsibility initiatives, or governance practices during the reporting period. This suggests a need for more granular ESG reporting for a comprehensive assessment.

The Company explicitly states that 'higher interest rates and uncertainty in public and private equity and fixed income markets have led to increased costs and limitations on the availability of capital.' These conditions adversely affect borrowing costs, the fair value of fixed-rate instruments, and overall real estate values, impacting expected yields on capital projects.

The Company's strategy is focused on healthcare real estate, making it susceptible to 'changes within the life science industry, and significant regulation, funding requirements, and uncertainty faced by our lab tenants.' Additionally, 'changes to U.S. federal income tax laws' and 'governmental reimbursement programs' are noted as influencing the industry landscape.

Management continuously monitors 'the effects of domestic and global events on our operations and financial position,' including inflation, recession, and challenges in financial markets. While specific geopolitical events are not detailed, the acknowledgement indicates a proactive stance on external market factors.