Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Investor Presentation (March 2024)
27 slides from Healthpeak Properties's investor presentation, March 2024
Slide 1: Investor Presentation
The Baylor Scott & White Charles A Sammons Cancer Center Dallas, Texas Investor Presentation March 2024
Slide 2: Disclaimers
Disclaimers This Healthpeak Properties, Inc. (the “Company”) presentation is solely for your information, we invested across multiple sectors; the illiquidity of real estate investments; our ability to provisions of Maryland law and our charter that could prevent a transaction that may is subject to
Slide 3: Executive Summary – Continued Strong Execution
Executive Summary – Continued Strong Execution ▪ AFFO of $1.53 per share; +5 pennies better than original guidance 2023 ▪ FFO as Adjusted of $1.78 per share; +5 pennies better than original guidance Performance(1) ▪ Same-store growth of 4.8%; +130 basis points better than original guidance ▪ Near-re
Slide 4: Why Healthpeak
Why Healthpeak 3% cash same-store NOI growth, opportunity for ~$60 million of cash NOI upside across three lab campuses Compelling Total Return Opportunity and $20 million of additional merger synergies, a well-covered dividend currently yielding ~7.2%, and a stock price currently trading ~30% below
Slide 5: Strategic Merger Benefits
Strategic Merger Benefits The combination of Healthpeak and Physicians Realty Trust accelerates key strategic goals Strategic Goal Merger Benefit Create Best-In-Class Platform Combined senior team has 200+ years of outpatient medical operating experience Favorable supply / demand fundamentals are pr
Slide 6: Delivering Earnings Results & Exceeding Expectations
Delivering Earnings Results & Exceeding Expectations Strong track record for exceeding guidance Original 2023 Guidance(1) Actual 2023 Results(1) Midpoint Variance FFO as Adjusted $1.73 $1.78 + $0.05 AFFO $1.48 $1.53 + $0.05 Same-Store Growth 3.5% 4.8% + 130 bps 1) Represents midpoint of legacy Healt
Slide 7: 2023 Lease Executions Above the 3-Year Average
2023 Lease Executions Above the 3-Year Average Continued growth in outpatient demand and strong lab relationships drove above-trend leasing volumes 5.1M SF +6% Record or near-record lease executions, 4.8M SF tenant retention, and lease spreads led to Outpatient Medical year-end same-store occupancy
Slide 8: Double Digit Earnings Growth Over the Past Two Years
Double Digit Earnings Growth Over the Past Two Years Earnings growth driven by development earn-in, property performance, and a more efficient G&A structure FFO as Adjusted per Share(1) AFFO per Share(1) $1.78 $1.53 +11% +13% $1.61 $1.35 2021 2023 2021 2023 . Note: Represents earnings growth for leg
Slide 9: Significant Potential Growth Opportunity
Significant Potential Growth Opportunity ~$60 million of cash NOI upside and ~$20 million of additional merger synergies that are not included in our 2024 earnings Outlook; majority of capital needed to achieve upside already incurred or included in 2024 forecast 2025+ Upside Opportunity Vantage Pha
Slide 10: National Scale, Local Competitive Advantage, Attractive Diversification
National Scale, Local Competitive Advantage, Attractive Diversification 13 markets with footprints of 1 million square feet or more to help drive local competitive advantage Top 20 Outpatient and Lab Markets Square Feet Rank Market % of ABR(1) (M) 1 Bay Area (S. SF), CA(2) 6.3 25% Seattle 2% 2 Bosto
Slide 11: Diversified Tenant Base and Leading Relationships
Diversified Tenant Base and Leading Relationships Unmatched roster of leading biopharma, health systems, and physician groups to drive internal and external growth; only two tenants represent more than 1% of ABR Tenant Diversification(1) Top 20 Tenants(2) Rank Parent Name Classification % of ABR(3)
Slide 12: Fortress Balance Sheet
Fortress Balance Sheet Strong balance sheet with well-laddered maturities and low floating rate debt exposure Debt Maturities and Credit Metrics(1)(2) ($ in billions) $2.0 Weighted Average 3.8% Interest Rate(3) $1.6 $1.5 Weighted Average $1.5 4.9 years $1.3 Debt Maturity(2) $0.5 $1.2 $1.1 Secured De
Slide 13: Outpatient Medical Overview
Outpatient Medical Overview
Slide 14: Unmatched Outpatient Medical Platform and Portfolio
Unmatched Outpatient Medical Platform and Portfolio 40M sq. ft. Outpatient Medical portfolio with concentration in high-growth markets and local competitive advantage Top 10 Healthpeak Outpatient Medical MSAs 40M (Based on square footage in millions) Sq. Ft. Dallas, TX 4.6 575 Houston, TX 3.6 Proper
Slide 15: Outpatient Medical Demand Drivers are Stronger Than Ever
Outpatient Medical Demand Drivers are Stronger Than Ever The structural trends of an aging population and the growth in healthcare spending support continued growth in lower- cost outpatient care settings, which should generate long-term demand for our real estate Aging Senior Population Average Ann
Slide 16: Outpatient Medical Fundamentals Driving Improved Growth
Outpatient Medical Fundamentals Driving Improved Growth Demand exceeds supply and is generating increased occupancy and rent growth, which we expect to continue Declining Development Starts Sector Occupancy Trending Higher (TTM starts in sq. ft. millions) 14.0 92.6% Up 130 bps 91.3% Down ~40% 7.9 20
Slide 17: Strong Tenant Credit and Importance of Relationships
Strong Tenant Credit and Importance of Relationships Health systems have significantly expanded their outpatient footprint as healthcare delivery has shifted to an outpatient model; the growth in outpatient is likely to continue and no company is better positioned to support this growth than Healthp
Slide 18: Lab Overview
Lab Overview
Slide 19: Concentrated Lab Clusters Across the Leading Markets
Concentrated Lab Clusters Across the Leading Markets Well-located portfolio of amenity-rich spaces for R&D and collaboration 12M 146 97% 85% ~5M+ Sq. Ft. Occupied ABR from Campuses Future Development Lab Sq. Ft. Properties Operating Portfolio over 400,000 Sq. Ft. Densification Potential Bay Area Bos
Slide 20: Positive Long-Term Demand Drivers for Lab
Positive Long-Term Demand Drivers for Lab With an aging population and accelerating scientific discovery and drug approvals, we expect a long-term virtuous cycle that will support ongoing demand for our real estate Aging Senior Population Increasing Drugs Approvals Growing Global Drug Demand (US age
Slide 21: Supportive Biopharma Capital Raising and R&D Trends
Supportive Biopharma Capital Raising and R&D Trends The lab industry benefits from diversified funding sources; 2023 funding was above the 2018-2022 average $600B Global Biopharma R&D NIH/NSF VC SEO IPO Partnerships(1) Healthcare Philanthropy $500B $483B $469B $461B $453B 41 42 (2) 2018 – 2022 Avera
Slide 22: Recent Lab Capital Raising Trends Improving Tenant Credit
Recent Lab Capital Raising Trends Improving Tenant Credit The positive momentum in biotech valuations has led to an active funding market to start 2024; expected to contribute towards improved levels of space demand over next 6-12 months Biotech Public Equity Funding Up Significantly YoY Select Heal
Slide 23: Competitive New Supply
Competitive New Supply Healthpeak’s near-term lease roll is modest; speculative development starts have fallen to near zero which should provide a multi-year window beyond ’25 of limited deliveries allowing for further market stabilization and recovery Lab Inventory and New Supply by Market(1) Sorte
Slide 24: Sustainable and Responsible Business
Sustainable and Responsible Business
Slide 25: Sustainability in Action
Sustainability in Action Improving our portfolio through sustainability initiatives LED Lighting Optimize energy efficiency by using LED lighting in new construction and through retrofits Energy-Efficient Implement upgrades and replacements to help drive energy savings, including boiler retrofits, H
Slide 26: Recognized Leader in Corporate Responsibility
Recognized Leader in Corporate Responsibility Environmental Social Governance ENERGY STAR Partner of the Year Fortune Best Workplaces in Real Estate Newsweek America’s Most 3 Times 2 Consecutive Years Responsible Companies 5 Times Green Lease Leader Platinum Modern Healthcare Best Places to Work Gov
Slide 27: Healthpeak’ | v2
Healthpeak’ | v2
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