Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Investor Presentation (November 2022)
29 slides from Healthpeak Properties's investor presentation, Nov 14, 2022
Slide 1: Investor Presentation November 2022
Vantage (Rendering) South San Francisco, CA Investor Presentation November 2022
Slide 2: Disclaimers
Disclaimers This Healthpeak Properties, Inc. (the “Company”) presentation is solely for your information, regulatory approvals associated therewith; our property development, redevelopment and net operating income (adjusting for the impact of upfront rental concessions) for the is subject to change
Slide 3: Seasoned Leadership Team
Seasoned Leadership Team Experienced Team | Fresh Perspective Scott Brinker Peter Scott Tom Klaritch President and Chief Chief Financial Officer Chief Operating Officer Executive Officer Joined February 2017 Joined October 2003 Joined March 2018 Scott Bohn Michael Dorris Adam Mabry Chief Development
Slide 4: High-Quality Portfolio Supported by Demographic Growth
High-Quality Portfolio Supported by Demographic Growth Irreplaceable and differentiated real estate portfolio well-positioned to generate attractive earnings growth Life Science Medical Office CCRC 3 core markets - San Francisco, San Diego & 81% on-campus / 97% affiliated 15 campuses / 7,300 units B
Slide 5: Healthpeak Trophy Campuses
PEAK LS / MOB Hospital Healthpeak Trophy Campuses Life Science MOB The Cove | 982K SF | 7 Properties Oyster Point | 923K SF | 10 Properties Medical City Dallas | 2.2M SF | 7 Properties South San Francisco, CA South San Francisco, CA HCA | Dallas, TX The Shore & Towers | 1.1M SF | 7 Properties Seapor
Slide 6: Proven Capital Allocation Track Record in South San Francisco
Proven Capital Allocation Track Record in South San Francisco Development Redevelopment Acquisitions Vantage (rendering) Gateway Crossing The Towers Active & Completed SSF Projects Major SSF Redevelopments Select SSF Acquisitions The Cove, The Shore, Nexus, Vantage Gateway Crossing, Pointe Grand, Oy
Slide 7: Multiple Potential Avenues of External Growth
Multiple Potential Avenues of External Growth Land Bank Densification Redevelopment Acquisitions Vista Sorrento | Sorrento Mesa, CA The Towers (Conceptual Rendering) | Brisbane, CA Thornton MOB | Thornton, CO The Post | Waltham, MA Entitlement work is progressing Densify excess land in operating Cap
Slide 8: Biotech Industry & Tenant Overview
Biotech Industry & Tenant Overview
Slide 9: Long-Term Drivers of Life Science Demand
Long-Term Drivers of Life Science Demand Aging Senior Population Logarithmic Decline in Genome Sequencing Cost Growing Global Drug Demand (US 65+ in millions) (US $) (Global Pharmaceutical Drug Sales in $B) $100M $100,000,000 69 $2,047 $1,000,000 41 $8,000 $10,000 $500 $741 $100 $1 2011 2030F 2001 2
Slide 10: Biopharma Capital Raising and R&D Trends
Biopharma Capital Raising and R&D Trends $ in billions $350 $302 $304 $300 $250 $250 2017 – 2021 Average: $231B $196 $196 $200 $159 $150 $100 $50 $0 2017 2018 2019 2020 2021 3Q22 YTD Annualized Public Biopharma R&D NIH Funding VC Funding Secondary Equity IPO Despite a slowdown in public equity issua
Slide 11: Recent Tenant Capital Raises
Recent Tenant Capital Raises Tenant PEAK Stats(1) Transaction Tenant PEAK Stats(1) Transaction The Cove, SSF $316M secondary equity Hartwell, Lexington $70M secondary equity 148K sq.ft. / $11M ABR offering 91K sq.ft. / $5M ABR offering Seaport, Redwood City $265M secondary equity Torreyana, Torrey P
Slide 12: Recent Tenant M&A and Partnerships
Recent Tenant M&A and Partnerships Tenant PEAK Stats(1) Transaction Tenant PEAK Stats(1) Transaction The Cove, SSF Acquired by Pfizer for 101 CDP, Cambridge Acquired by Ginko 164K sq.ft. / $12M ABR $5.4B 22K sq. ft. / $1M ABR Bioworks for ~$300M Callan Ridge Dev’t, SD Acquired by Bristol Myers Strat
Slide 13: PEAK Life Science Tenant Overview: Diversified Tenant Base
PEAK Life Science Tenant Overview: Diversified Tenant Base Tenant Summary R&D / University ~200 tenants, with the top 25 representing 50% of annualized base rent 5% Medical (ABR)(1) Device Office 4% Top 5 tenants are Amgen, J&J, Bristol Myers Squibb, Arcus Biosciences, 7% Tech / and Pfizer, collecti
Slide 14: South San Francisco Market Overview
South San Francisco Market Overview
Slide 15: South San Francisco Market Fundamentals
South San Francisco Market Fundamentals Mid-$90s 15M Sq. Ft. <1% Vacancy Asking Rent / sq. ft. 3M Sq. Ft. 1.2M Sq. Ft. 8% Rent CAGR Under Construction Active Demand Last 10 Years Investor Presentation – November 2022 15 Sources: CBRE, and PEAK Internal as of 11/11/2022.
Slide 16: Healthpeak South San Francisco Portfolio
Healthpeak South San Francisco Portfolio The Towers The Shore 6000 Shoreline Healthpeak Oyster Point The Cove Eccles Vantage (20 acres) Gateway Nexus on Grand Modular Labs I & II Crossing East Grand Ave. Modular Labs IV Pointe Grand Edgewater PEAK is the dominant South San Francisco landlord with ~4
Slide 17: Importance of Scale
Importance of Scale “Cluster within a Cluster” strategy creates alignment with our tenant base allowing growth opportunities as milestones are achieved (1) Top 25 Tenant (2) 128K Sq. Ft. 330K Sq. Ft. 20K Sq. Ft. 260K Sq. Ft. (3) 67K Sq. Ft. 164K Sq. Ft. 14K Sq. Ft. 154K Sq. Ft. 38K Sq. Ft. 148K Sq.
Slide 18: Campus Update: Vantage
Campus Update: Vantage Site Background Vantage Campus Overview In October 2020, Healthpeak closed on a $128 million off-market transaction of a 12-acre parcel immediately adjacent to the 8-acre Vantage Phase I site The acquisition created a 20-acre contiguous site with the scale and flexibility to s
Slide 19: Campus Update: Oyster Point
Campus Update: Oyster Point Campus Summary Completed Leases – 537K SF(1) Remaining Expirations – 386K SF 10 buildings totaling 923,000 sq. ft. located along Oyster Point 333 Oyster Pt. Blvd., benefiting from close proximity to 101 freeway and adjacent (122K SF) to The Cove 331 Oyster Pt. 329 Oyster
Slide 20: Campus Update: Pointe Grand
Campus Update: Pointe Grand JV Buildings Wholly-Owned Stabilized Buildings Campus Summary JV Buildings in Redevelopment 656,000 sq. ft. 11-building campus located on the East Grand Avenue corridor with a mix of stabilized operating assets and 220 E. Grand 170 Harbor Way (48K SF) redevelopment buildi
Slide 21: Finance Update
PROPERTIES Finance Update
Slide 22: Strong 2022 Performance in Challenging Economic Conditions
Strong 2022 Performance in Challenging Economic Conditions Original Guidance Current Guidance Midpoint (Feb 2022) (Nov 2022(1)) Variance FFO as Adjusted(2) $1.68 - $1.74 $1.72 - $1.74 + $0.02 Blended Same-Store 3.25% - 4.75% 4.50% - 5.50% + 100 bps Growth(2) (1) As provided on November 1, 2022. (2)
Slide 23: Significant Earnings Growth Drivers
Significant Earnings Growth Drivers Life Science $1 billion active pipeline is 81% pre-leased; ~$100 million of incremental annual NOI coming on-line in the next Development Earn-In three years Life Science Potential +26% rent mark-to-market opportunity over the next 10+ years; ~$145 million of pote
Slide 24: Life Science Development Earn-In
Life Science Development Earn-In Development NOI Recently Completed and Active Development: Key Statistics Chart not drawn to scale ~$100M ~$125M Total Initial Stabilized Project Status % Leased Spend Occupancy Yield(4) The Shore Phases II & III Non-stabilized 100% $433M 4Q21 – 3Q22 6.4% The Boardwa
Slide 25: Potential Life Science Rent Mark-to-Market by Year
Potential Life Science Rent Mark-to-Market by Year(1) In-place rent of ~$55/sq. ft. relative to blended market rents of ~$70/sq. ft. represents a 26% mark-to-market % Sq. Ft. Estimated Potential NOI Year Expiring Percent MTM $ MTM 2022 2% 14% $2M 2023 5% 23% $6M $25M 2024 4% 6% $2M 2025 11% 31% $15M
Slide 26: Strong Same-Store Growth Characteristics Across Segments
Strong Same-Store Growth Characteristics Across Segments(1) Life Science MOB CCRC (~50% of NOI) (~40% of NOI) (~10% of NOI) 87.0% +500 bps of upside 82.0% 6.1% 4.9% 3.1% 2.7% Last 10 Years Last 3 Years Last 10 Years Last 3 Years 3Q 2022 Stabilized Avg SS Growth Avg SS Growth Avg SS Growth Avg SS Gro
Slide 27: PEAK NOI Growth Opportunity – Next Three Years
PEAK NOI Growth Opportunity – Next Three Years $ in millions; chart not drawn to scale $1,325 $100 $25 $100 $1,100 3Q 2022 NOI Life Science Life Science Next LS & MOB Rent Escalators, Total PEAK Annualized(1) Dev’t Earn-in(2) 3-Year Lease MTM(3) & CCRC Upside(4) Opportunity Potential for ~$225M of i
Slide 28: Fortress Balance Sheet
Fortress Balance Sheet Debt Metrics (9/30/22) Liquidity and Floating Rate Debt Tracker $ in millions Baa1 / BBB+ / BBB+ 6.4 Years $3,000.0 $3,000 $1,400 LOC $1,700 LOC Investment Grade Weighted Avg. Bond availability availability Ratings Maturity (Moody’s / S&P / Fitch) $2,500.0 Bank Line of Credit
Slide 29: healthpeak.com
——~ a Va Healthpeak PROPERTIES
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