On August 22, 2022, Healthpeak Properties, Inc., entered into a Term Loan Agreement (the “Loan Agreement”), by and among the Company, as borrower, the lenders referred to therein, and Bank of America, N.A., as administrative agent. The Loan Agreement provides for senior unsecured delayed draw term loans in an aggregate principal amount of up to $500.0 million (the “Term Loan Facilities”). The Term Loan Facilities are available to be drawn from time to time during a 180-day period after closing, subject to customary borrowing conditions.

$250.0 million of the Term Loan Facilities has an initial stated maturity of 4.5 years, which the Company, at its sole option, may extend for a one-year period, so long as (i) no default or event of default exists at the time of the request or on the then current maturity date, (ii) the Company pays a fee equal to the product of 0.125% multiplied by the aggregate amount of the tranache of term loans then outstanding for which the maturity date is to be so extended, and (iii) other customary conditions have been satisfied. The other $250.0 million tranche of the Term Loan Facilities has a stated maturity of 5 years. Aggregate borrowing capacity under the Loan Agreement may be increased, at the Company's option, to up to $1.0 billion by incurring one or more incremental term loans, so long as no default or event of default exists and other customary conditions have been satisfied.

Any such increase will be syndicated on a best efforts basis and no lender is required to increase its commitment under the Loan Agreement to facilitate such increase. Loans outstanding under the Term Loan Facilities bear interest at an annual rate equal to (i) the applicable margin, plus (ii) at the Company's option, (x) the base rate or (y) a forward-looking term rate based on the secured overnight financing rate (Term SOFR), with a Term SOFR spread adjustment of 0.10%. The applicable margin under the Term Loan Facilities ranges from 0.00% to 0.60% for base rate loans and 0.75% to 1.60% for Term SOFR loans, in each case, based on the non-credit enhanced, senior unsecured long-term debt ratings of the Company (“Debt Ratings”).

Based on the Company's current Debt Ratings, the applicable margin is initially 0.00% for base rate loans and 0.85% for Term SOFR loans. The Loan Agreement also includes a sustainability-linked pricing component whereby the applicable margin under the Term Loan Facilities may be reduced by 0.01% based on the Company's achievement of specified sustainability-linked metrics, subject to certain conditions. Commencing 60 days after closing, the Company is obligated to pay a ticking fee on the daily amount of undrawn commitments under the Term Loan Facilities at a rate per annum equal to 0.15%.

Loans outstanding under the Loan Agreement may be repaid from time to time without premium or penalty, other than customary breakage costs, if any, with respect to Term SOFR loans. As of the date of this report, the Company had no balance outstanding under the Term Loan Facilities. On August 2, 2022, the Company executed forward-starting interest rate swaps for a notional amount of debt of $500.0 million with termination dates similar to the initial stated maturities of the Term Loan Facilities.

The swaps are linked to one-month Term SOFR as the benchmark and, based on the Company's current Debt Ratings, effectively fix the interest rate for the Term Loan Facilities at a blended rate of approximately 3.52%.