Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q4 2022 Earnings Presentation
48 slides from Healthpeak Properties's earnings presentation, Feb 7, 2023
Slide 1: Earnings Release and Supplemental Report Fourth Quarter 2022
and Supplemental Report AW Earnings Release — S\r Healthpeak Fourth Quarter 2022 PROPERTIES
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 8 Overview 12 Portfolio Summary 13 Property Count Reconciliations 16 Capitalization 7 Indebtedness 18 Investment Summary 20 Developments and Redevelopments 21 Capital Expenditures 23 Portfolio Diversification 24 Portfolio Life Sc
Slide 3: Healthpeak Properties Reports Fourth Quarter and Year Ended 2022 Results
Healthpeak Properties Reports Fourth Quarter and Year Ended 2022 Results DENVER, February 7, 2023 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the fourth quarter and full year ended December 31, 2022. FOURTH QUARTER 2022 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS - Net inc
Slide 4: Fourth Quarter Comparison
FOURTH QUARTER COMPARISON Three Months Ended Three Months Ended December 31, 2022 December 31, 2021 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income, diluted $ 6,388 $ 0.01 $ 28,493 S$ 0.05 Nareit FFO, diluted 192,158 0.35 222,101 0.41 FFO as Adjusted, diluted 23
Slide 5: CambridgePark Drive Development and Alewife Acquisitions
101 CAMBRIDGEPARK DRIVE DEVELOPMENT During the fourth quarter, Healthpeak placed-in-service 142,000 square feet, representing $145 million of investment, at 101 CambridgePark Drive in Cambridge, Massachusetts. The remaining 19,000 square feet is expected to be placed-in-service during 2023. 101 Camb
Slide 6: 2023 Guidance
2023 GUIDANCE For full year 2023, we have established the following guidance ranges: * Diluted earnings per common share of $0.52 - $0.58 * Diluted Nareit FFO share of $1.70 - $1.76 * Diluted FFO as Adjusted per share of $1.70 - $1.76 * Total Portfolio Same-Store Cash (Adjusted) NOI growth of 2.75%
Slide 7: Company Information
COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Wednesday, February 8, 2023, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to review its financial and operating results for the quarter and full year ended December 31, 2022. The conference call is accessible by d
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data December 31, 2022 December 31, 2021 Assets Real estate: Buildings and improvements Development costs and construction in progress Land Accumulated depreciation and amortization Net real estate Net i
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data Revenues: Rental and related revenues Resident fees and services Income from direct financing leases Interest income Total revenues Costs and expenses: Interest expense Depreciation and amortization
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Net income (loss) applicable to common shares 6388 $ 28,493 $ 497,792 $ 502,271 Real estate related depreciation and amortization 179,157
Slide 11: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 FFO as Adjusted applicable to common shares $ 236,473 $ 220,378 $ 940,933 $ 870,645 Stock-based compensation amortization expense 1,903 4,307 16,537 18,
Slide 12: The Numbers Overview
The Numbers Overview") As of and for the quarter and year ended December 31, 2022, dollars, square feet, and shares in thousands, except per share data 4022 Full Year 2022 Financial Metrics Diluted earnings per common share $0.01 $0.92 Diluted Nareit FFO per common share $0.35 $1.66 Diluted FFO as A
Slide 13: Portfolio Summary
Portfolio Summar As of and for the quarter ended December 31, 2022, dollars in thousands, excludes discontinued operations Property Weighted Portfolio Portfolio Count Average Age? Investment Income Property Portfolio ° Life science 137 14$ 7,966,134 $ 142,908 PORTFOLIO INCOMES Medical office 292 24
Slide 14: Quarter NOI Summary
Quarter NOI Summar For the quarter ended December 31, 2022, dollars in thousands, excludes discontinued operations PORTFOLIO NOI SUMMARY SS Portfolio NOI Portfolio NOI Portfolio SS Portfolio SS Portfolio Portfolio Real Operating Real Estate Operating Estate Revenues Expenses Portfolio NOI Revenues E
Slide 15: Twelve Months NOI Summary
For the twelve months ended December 31, 2022, dollars in thousands, excludes discontinued operations PORTFOLIO NOI SUMMARY Portfolio NOI SS Portfolio NOI Portfolio Real Portfolio SS Portfolio Estate Operating SS Portfolio Real Operating SS Portfolio Revenues Expenses Portfolio NOI Estate Revenues E
Slide 16: Property Count Reconciliations
Count Reconciliations As of December 31, 2022 PROPERTY COUNT RECONCILIATION Medical Life Science Office cCRC Other Total Prior Quarter Total Property Count 149 297 15 19 480 Current Quarter Total Property Count 149 297 15 19 480 Recent acquisitions (1) (7) = = (8) Assets in Development (6) (1) - - (
Slide 17: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2022 Shares Value Total Value Common stock (NYSE: PEAK) 546,642 25.07 13,704,315 Convertible partnership (DownREIT) units 7,290 25.07 182,760 Total Market Equity 553,932 $ 13,887,075 Consoli
Slide 18: Indebtedness: Debt Maturities
Indebtedness As of December 31, 2022, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Share of Unconsolidated Senior Unsecured Notes Mortgage Debt JV Debt Enterprise Debt Bank LOC & Commercial Consolidated Paper2) Term Loan® Amounts?) Rates % Amounts Rates % De
Slide 19: Indebtedness: Debt Structure
Indebtedness As of December 31, 2022, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance °% of Total Rates % Maturity Secured Fixed rate $ 370,073 6 4.20 28 Floating rate 14,683 - 7.74 2.0 Combined $ 384,756 6 4.34 2.8 Unsecured Fixed rate) 5,200,000 79 3.41 5.9 Floating rate!) 99
Slide 20: Investment Summary
Investment Summar As of and for the year ended December 31, 2022, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Twelve Months Ended MSA Date Capacity Count _ Property Type December 31, 2022 December 31, 2022 ACQUISITIONS” 67 Smith Place land parcel Boston, MA Ja
Slide 21: Developments in Process
Develo @ ments In Process As of December 31, 2022, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total Project % of Total Property Cost to Total at Capacity Project. Initial Project MSA fount CIP Complete" Completion (Sq. Ft.) Leased Occupancy” Life Science 101 CambridgePark D
Slide 22: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment As of December 31, 2022, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property Property Cost to Estimated Project MSA Type unt CIP?) Complete’) Total Completion Date Swedish II and
Slide 23: Capital Expenditures
Capital Expenditures") For the three and twelve months ended December 31, 2022, dollars in thousands, except per unit/square foot, excludes discontinued operations FOURTH QUARTER Life Science Medical Office ccRC Other Total Portfolio at share Recurring capital expenditures $ 3,275 $ 5,690 $ 6,112 $
Slide 24: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended December 31, 2022, dollars in thousands, excludes discontinued operations PORTFOLIO INCOME BY MSA Property’ . . Medical MSA Count" Life Science Office CCRC Other Total % of Total San Francisco, CA 82 $ 87,168 $ 634 $ — $ —$ 87,802 30 Boston,
Slide 25: Life Science
Life Science As of and for the quarter ended December 31, 2022, dollars and square feet in thousands INVESTMENTS?) Portfolio Cash Total Property Portfolio (Adjusted) Square Occupancy Annualized MsA Count _ Investment NOI Feet % Base Rent % San Francisco, CA 81 $ 4,156,498 $ 87,168 5,366 98.8 58.9 Bo
Slide 26: Life Science Tenant Concentration
Life Science As of December 31, 2022, dollars and square feet in thousands TENANT CONCENTRATION Weighted Leased Square Annualized Average Feet Base Rent” Remaining Market Cap Lease Term % of % of Parent Name (in millions) in Years | Amount —_‘Total| = Amount _Total Amgen $ 140,139 17 633 6 $ 51,219
Slide 27: Life Science Lease Expirations
As of December 31, 2022, dollars and square feet in thousands Total San Francisco Boston San Diego Remaining Leased Leased Leased Leased Leased Square Annualized Square Annualized| Square = Annualized| Square Annualized) Square Annualized Year Feet % Base Rent” % Feet Base Rent” Feet _ Base Rent”) F
Slide 28: Life Science Leasing Activity
Life Science As of December 31, 2022, dollars and square feet in thousands, presented at 100% 4022 LEASING ACTIVITY Leased Annualized Tenant Trailing Twelve Square Base Rent %Changein Improvements Leasing Costs Average Lease Month Retention Feet Per Sq.Ft. Cash Rents per Sq. Ft. per Sq.Ft.) Term (Mo
Slide 29: Life Science Lease and Ownership Type
Life Science As of and for the quarter ended December 31, 2022, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego _ Remaining Total % of Total Triple-Net™ $ 324,644 § 120,114 $ 92,579 $ 6,780 $ 544,117 92.7 Base Year” 20,536 16,894 3,853 - 41,282 7.0
Slide 30: Medical Office
Medical Office As of and for the quarter ended December 31, 2022, dollars and square feet in thousands PORTFOLIO BY MARKET” Total Square Feet On-campus Off-campus” Total Portfolio Cash Property Portfolio (Adjusted) Occupancy MSA Count _ Investment Nol % Multitenant Single-tenant| Multi-tenant Single
Slide 31: Medical Office Same-Store
As of and for the quarter ended December 31, 2022, dollars and square feet in thousands 4021 1022 2022 3022 4022 Property Count 270 270 270 270 270 Portfolio Investment $ 5,325,056 $ 5,351,701 $ 5,382,301 $ 5,422,408 $ 5,462,928 Square Feet 21,953 21,949 21,956 21,959 21,955 Occupancy % 917 917 91.4
Slide 32: Medical Office Square Feet by Health System
Medical Office As of and for the quarter ended December 31, 2022, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Total Square Feet % Weighted Directly _ Average Leased Remaining Property Credit Unaffiliated % of by Health Lease Health System MsA Count Rating On-Campus Adjacent” Anchored Off-C
Slide 33: Medical Office Lease Expiration Data
Medical Office As of and for the quarter ended December 31, 2022, dollars and square feet in thousands LEASE EXPIRATION DATA Total On-Campus Off-Campus Leased Annualized Leased Annualized Leased Annualized Year Square Feet % Base Rent” % Square Feet Base Rent" | Square Feet _Base Rent!” 2023 2,573 1
Slide 34: Medical Office Leasing Activity
Medical Office As of December 31, 2022, dollars and square feet in thousands, presented at 100% 4022 LEASING ACTIVITY Annualized Tenant —_Leasing Leased Base Rent Per %Changein Improvements Costs per Average Lease Month Retention Square Feet Sq. Ft. Cash Rents” per Sq. Ft.2 “Sq. Ft.2) Term (Months)
Slide 35: Medical Office Lease Type and Provider Specialty
Medical Office As of and for the quarter ended December 31, 2022, square feet in thousands LEASE TYPE PROVIDER SPECIALTY Leased Square Feet National Healthpeak Benchmark! On-Campus Adjacent Anchored of cannus Total — % of Total Types of Specialties Triple-Net™ 17,485 666 «1,878 "17 14,147 65.2 Ortho
Slide 36: CCRC
CCRC As of and for the quarter ended December 31, 2022, dollars in thousands, except REVPOR INVESTMENTS Portfolio Real Property _Net Portfolio Estate Revenues, NREF _ Portfolio. Occupancy REVPOR —NREF Cash Count _ Investment” excluding NREFS Amortization Cash Opex Units % CCRC Collections Operator L
Slide 37: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended December 31, 2022, dollars in thousands, except REVPOR: SAME-STORE Sequential Year-Over- 4021 1022 2022 3022 4022 Growth Year Growth Property count 15 15 15 15 15 = = Net Portfolio Investment $ 1,458,656 $ 1,474,262 $ 1,484906 $ 1,486,923 $ 1,498,29
Slide 38: Sovereign Wealth Fund Senior Housing JV
As of and for the quarter ended December 31, 2022, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 4021 1022 2022 3022 4022 Property count 19 19 19 19 19 Investment S$ 457,870 $ 458,352 $ 460,543 $ 462,219 $ 464,068 Units 3,354 3,354 3,354 3,354 3,354 Occupancy %
Slide 39: 2023 Guidance Information
2023 Guidance Information"? Projected full year 2023, dollars in millions, except per share amounts * Represents Healthpeak's 2023 guidance ranges Diluted earnings per common share* Diluted Nareit FFO per common share* Diluted FFO as adjusted per common share* Diluted AFFO per common share % of NO!
Slide 40: Glossary
Glossary Adjusted Fixed Charge Coverage* Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental measure of liquidity and our ability to meet interest payments on our outstanding debt and pay dividends to our preferred stockholders, if applicable. Our various deb
Slide 41: Glossary
Glossary Financial Leverage* Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our leverage to that of other companies. Fixed Charges* Total in
Slide 42: Glossary
Glossary Portfolio Real Estate Revenues* and Portfolio Cash Real Estate Revenues* Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues are non-GAAP supplemental measures. Portfolio Real Estate Revenues include rental related revenues, resident fees and services, income from DFLs, a
Slide 43: Adjusted EBITDAre and Adjusted Fixed Charge Coverage
Adjusted EBITDAre and Adjusted Debt Rati Os Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended Twelve Months Ended December 31, 2022 December 31, 2022 Net income (loss) $ 10,802 $ 516,424 Interest expense 49,413 172,944 Income tax expense (benefit)”” (661)
Slide 44: Debt Ratios
Debt Ratios As of and for the quarter ended December 31, 2022, dollars in thousands ENTERPRISE DEBT AND NET DEBT December 31, 2022 Bank line of credit and commercial paper $ 995,606 Term loan 495,957 Senior unsecured notes 4,659,451 Mortgage debt 346,599 Consolidated Debt $ 6,497,613 Share of uncons
Slide 45: Company Information
COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT R. KENT GRIFFIN, JR. Chairman of the Board, Healthpeak Properties, Inc. Managing Director, PHICAS Investors Former General Counsel, Former President, BioMed Realty Trust, Inc. U.S. Securities and Exchange Commission DAVID B. HENRY KATHERINE
Slide 46: Forward-Looking Statements & Risk Factors
Forward-Looking Statements & Risk Factors Statements contained in this supplemental report 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. F
Slide 47: Forward-Looking Statements & Risk Factors (continued)
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
Slide 48: Corporate HQ, Denver, CO
Corporate HQ, Denver, CO 4600 South Syracuse Street, Suite 500 Denver, CO 80237 (720) 428 - 5050 Irvine, CA 1920 Main Street, Suite 1200 Irvine, CA 92614 Nashville, TN 3000 Meridian Boulevard, Suite 200 Franklin, TN 37067 Healthpeak’ PROPERTIES «lll South San Francisco, CA 101 Oyster Point Boulevard
Healthpeak Properties — Q4 2022 Earnings Presentation on 6ix