Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q2 2021 Earnings Presentation
52 slides from Healthpeak Properties's earnings presentation, Aug 3, 2021
Slide 1: Earnings Release and Supplemental Report Second Quarter 2021
A. Earnings Release == and Supplemental Report Van Second Quarter 2021 oe
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 a Indebtedness 18 Investment Summary 20 3 Developments and Redevelopments 22 ———= Capital Expenditures 24 —— Portfolio Diversification 25 4 4 Por
Slide 3: Healthpeak Reports Second Quarter 2021 Results
Healthpeak Reports Second Quarter 2021 Results DENVER, August 3, 2021 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the second quarter ended June 30, 2021. SECOND QUARTER 2021 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS Net income of $0.51 per share, Nareit FFO of $0.28 per
Slide 4: Second Quarter Comparison
SECOND QUARTER COMPARISON Three Months Ended Three Months Ended June 30, 2021 June 30, 2020 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 277,533 $ 0.51 $ 51,131 $ 0.09 Nareit FFO, diluted 149,671 0.28 182,367 0.34 FFO as Adjusted, diluted 21
Slide 5: 14-Property MOB Portfolio
14-PROPERTY MOB PORTFOLIO As previously announced, in April 2021, Healthpeak acquired a 14-property, 833,000 square foot MOB portfolio for $371 million in an off-market transaction. The portfolio is 89% leased with a weighted average lease term of 6.5 years. 100% of the portfolio is on-campus or aff
Slide 6: Previously disclosed transactions closed during the second quarter
Previously disclosed transactions closed during the second quarter include: * $564 million sale of a 12-property SHOP portfolio, totaling 1,043 units, operated by Oakmont Senior Living * $334 million sale of a 10-property SHOP portfolio, totaling 1,428 units, operated by Discovery Senior Living and
Slide 7: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this release 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. Forward-looking statements include, am
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited June 30, 2021 December 31, 2020 Assets Real estate: Buildings and improvements $ 11,543,657 $ 11,048,433 Development costs and construction in progress 711,772 613,182 Land 1,966,665 1,86
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) SS Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues: Rental and related revenues $ 340,642 $ 288,253 $ 668,614 $ 570,570 Resident fees and services 117,
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income (loss) applicable to common shares $ 275,993 $ 51,131 $ 419,336 $ 328,786 Real estate related depreciation and amorti
Slide 11: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 FFO as Adjusted applicable to common shares $ 217,242 $ 214,713 $ 432,635 $ 441,727 Amortization of stock-based compensation 5,095 4,984 9,459
Slide 12: The Numbers
The Numbers Overview) As of and for the quarter and six months ended June 30, 2021, dollars, square feet, and shares in thousands, except per share data 2021 YTD 2021 Financial Metrics Diluted earnings per common share $0.51 $0.78 Diluted Nareit FFO per common share $0.28 $0.35 Diluted FFO as Adjust
Slide 13: Portfolio Summary
Portfolio Summar As of and for the quarter ended June 30, 2021, dollars in thousands Property Weight Portfolio Portfolio Count Average Age —_ Investment Income Property Portfolio Life science 133 13 $ 7,056,462 $ 125,367 PORTFOLIO INCOME“ Medical office 289 25 5,499,672 102,765 ccRC 15 29 2,203,751
Slide 14: Quarter NOI Summary
Quarter NOI Summar For the quarter ended June 30, 2021, dollars in thousands PORTFOLIO NOI SUMMARY Portfolio NOI SS Portfolio NOI Portfolio SS Portfolio SS Portfolio Portfolio Real Operating Real Estate Operating Estate Revenues Expenses Portfolio NOI Revenues Expenses _ SS Portfolio NOI Life scienc
Slide 15: Year-To-Date NOI Summary
Year-To-Date NOI Summar For the six months ended June 30, 2021, dollars in thousands 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 Expenses NOI Life
Slide 16: Property Count Reconciliations
As of June 30, 2021 PROPERTY COUNT RECONCILIATION Count Reconciliations Medical Senior Housing Life Science Office CCRC Other Tripl SHOP Total Prior Quarter Total Property Count 141 286 7 19 9 49 521 Acquisitions - 16 - - - - 16 Assets sold - (5) (2) - (5) (41) (53) New developments 1 - - - - - 1 Cu
Slide 17: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION June 30, 2021 Shares Value Total Value Common stock (NYSE: PEAK) 538,955 $ 33.29 $ 17,941,812 Convertible partnership (DownREIT) units 7,326 33.29 243,883 Total Market Equity 546,281 $ 18,185,695 Consoli
Slide 18: Indebtedness
Indebtedness As of June 30, 2021, 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 Paper) Term Loan? Amounts Rates % Amounts Rates % Debt Amo
Slide 19: Indebtedness
Indebtedness As of June 30, 2021, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 242,975 5 3.63 39 Floating rate 142,910 3 2.59 48 Combined $ 385,885 8 3.24 42 Unsecured Fixed rate 3,750,000 3 3.75 79 Floating rate 970,000 19 0.
Slide 20: Investment Summary: acquisitions and fundings
As of and for the six months ended June 30, 2021, dollars and square feet in thousands Property Three Months Ended Six Months Ended MSA Date Capacity Count Property Type June 30, 2021 June 30, 2021 Westview Medical Plaza Nashville, TN February 48 Sq. Ft. 1 Medical office $ - $ 13,400 Pinnacle at Rid
Slide 21: Investment Summary
Investment Summar As of and for the six months ended June 30, 2021, dollars and square feet in thousands ASSETS HELD FOR SALE Property Projected Sales Property Type Capacity unt Price Medical office 260 Sq. Ft 4 $ 40,495 Senior housing triple-net 203 Units 4 15,673 SHOP 956 Units 8 123,486 Total 16
Slide 22: Developments In Process
Develooments In Process As of June 30, 2021, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total Project % of Total Property Cost to Total at Capacity Project Project Project MSA Count CIP Complete” Completion (Sq. Ft.) Leased Start Life Science The Boardwalk"*) San Diego, CA
Slide 23: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment"”) As of June 30, 2021, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property Prope Placed in Cost to Project completion Project” MSA Type Coun’ Service cIP® Complete” Total Start
Slide 24: Capital Expenditures
Capital Expenditures!) For the three and six months ended June 30, 2021, dollars in thousands, except per unit/square foot ife Medical Senior Housing SECOND QUARTER Science Office ccRc Other Triple-net SHOP Total Portfolio at share Recurring capital expenditures $ 1,445 $ 2,880 $ 3,507 $ 914 $ -$ 47
Slide 25: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended June 30, 2021, dollars in thousands PORTFOLIO INCOME BY MSA Property’ . . Medical Senior Housing MSA Count" Life Science Office CCRC Other Triple-net SHOP Total % of Total San Francisco, CA 79 $ 78,528 $ 877 $ —$ — $ — $ 427 $ 79,832 29 Bosto
Slide 26: Life Science
Life Science As of and for the quarter ended June 30, 2021, dollars and square feet in thousands INVESTMENTS” Portfolio Cash Property Portfolio (Adjusted) Square Occupancy Annualized MSA Count Investment NOI Feet % Base Rent % San Francisco, CA 78 $ 3,791,813 $ 78,528 5,192 96.7 60.4 Boston, MA 14 2
Slide 27: Life Science Tenant Concentration
Life Science As of June 30, 2021, dollars and square feet in thousands, except Market Cap TENANT CONCENTRATION Weighted square Feot Base Rent” Market Remaining Cap (in Lease Term % of % of mi ns) in Years Amount Total Amount Total Amgen $ 140,048 19 684 7 $ 54,635 1 Global Blood Therapeutics 2,181 8
Slide 28: Lease Expirations
As of June 30, 2021, 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") Fee
Slide 29: Life Science Leasing Activity
Life Science As of June 30, 2021, dollars and square feet in thousands, presented at 100% 2021 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 (
Slide 30: Life Science Lease Type
Life Science As of and for the quarter ended June 30, 2021, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco, CA Boston, MA_ San Diego, CA __ Remaining Total % of Total Triple-Net? $ 283,445 $ 96,319 $ 73,732 $ 14,858 $ 468,354 92.4 Base Year”! 21,880 11,368 3,520 -
Slide 31: Medical Office
Medical Office As of and for the quarter ended June 30, 2021, dollars and square feet in thousands PORTFOLIO BY MARKET” ‘Square Feet On-campus Off-campus” Total Portfolio Cash Property Portfolio (Adjusted) Occupancy MSA Count _ Investment Nol % Multitenant Single-tenant| Multi-tenant Single-tenant|
Slide 32: Medical Office Same-Store
As of and for the quarter ended June 30, 2021, dollars and square feet in thousands 2020 3020 4020 1021 2021 Property Count 249 249 249 249 249 Portfolio Investment $ 4,268,163 $ 4,284,802 $ 4,310,186 $ 4,326,310 $ 4,346,536 Square Feet 20,063 20,073 20,077 20,077 20,068 Occupancy % 92.4 92.3 92.4 9
Slide 33: Medical Office Square Feet by Health System
Medical Office As of and for the quarter ended June 30, 2021, square feet in thousands SQUARE FEET BY HEALTH SYSTEM ‘Square Feet Weighted % Directly _ Average Leased by Remaining Property Credit Unaffiliated %of Health Lease Health System unt Rating On-Campus Adjacent” Anchored" Off-Campus Total ‘To
Slide 34: Medical Office Lease Expiration Data
Medical Office As of and for the quarter ended June 30, 2021, 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” 2021 1,387 6.7 $
Slide 35: Medical Office Leasing Activity
Medical Office As of June 30, 2021, dollars and square feet in thousands, presented at 100% 2021 LEASING ACTIVITY Annualized Tenant Leasing Leased Base RentPer %Changein Improvements Costsper Average Lease Month Retention Square Feet ‘Sq. Ft. Cash Rents" per Sq. Ft. 2 ‘Sq. Ft. 2) Term (Months) Rate
Slide 36: Medical Office Lease Type
Medical Office As of and for the quarter ended June 30, 2021, square feet in thousands LEASE TYPE PROVIDER SPECIALTY eT Leased Square Feet National Healthpeak Benchmark" Unaffiliated jalti On-Campus Adjacent Anchored Off-Campus Total — % of Total Types of Specialties 5 Triple Net™ 11,211 580 1,367 1
Slide 37: CCRC
CCRC As of and for the quarter ended June 30, 2021, 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 Lif
Slide 38: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended June 30, 2021, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 2020 3020 4020 1021 2021 Growth Year Growth Property count 15 15 15 15 15 = = Net Portfolio Investment” $ 1,332,306 $ 1,360,110 $ 1,382,550 $ 1,401,030 $ 1,416,858 1
Slide 39: Other: Sovereign Wealth Fund Senior Housing JV
(1) (2) (3) (4) (5) As of and for the quarter ended June 30, 2021, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 2020 3020 4020 1021 2021 Property count 19 19 19 19 19 Investment $ 419,821 $ 419,000 $ 420,699 $ 421,567 $ 437,201 Units 3,317 3,317 3,317 3,317 3,
Slide 40: Discontinued Operations
Discontinued Operations Dollars in thousands, except REVPOR (unaudited) The results of discontinued operations through June 30, 2021, or the disposal date of each asset or portfolio of assets if they have been sold, are included within the "income (loss) from discontinued operations” line of the con
Slide 41: 2021 Guidance & Additional Items
Projected full year 2021, dollars in millions, except per share amounts 2021 Guidance & Additional Items Range of Outcomes) Market Backdrop Acquisitions / Leverage Low End High End May Guidance for Updated Items $800M Acquisitions / low 5x Net Debt to EBITDA $1.5B Acquisitions / ~5.5x Net Debt to EB
Slide 42: 2021 Guidance & Additional Items
2021 Guidance & Additional Items Range of Outcomes” : Projected full year 2021, dollars in millions, except per share amounts May Guidance for Updated Low End High End Items Amortization of stock-based compensation $19 Amortization of deferred financing costs $7 oH Straight line rents ($25) ($30) AF
Slide 43: 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 44: Glossary
Glossary Enterprise Secured Debt* Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs, Enterprise Secured Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our levera
Slide 45: Glossary
Glossary Net Debt to Adjusted EBITDAre* Net Debt divided by Adjusted EBITDAre is a supplemental measure of our ability to decrease our debt. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations. Net Operating Income (“
Slide 46: Glossary
Glossary REVPOR Triple-net The 3-month average facility revenue per occupied unit, one quarter in arrears from the period presented. Facility revenue consists primarily of resident rents generated at triple-net communities, which are not included in our financial results. Facility revenues are deriv
Slide 47: 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 June 30, 2021 Net income (loss) $ 282,025 Interest expense” 39,858 Income tax expense (benefit) (1,065) Depreciation and amortization" 171,459 Other depreciation
Slide 48: Debt Ratios
Debt Ratios As of and for the quarter ended June 30, 2021, dollars in thousands ENTERPRISE DEBT AND NET DEBT June 30, 2021 Bank line of credit and commercial paper $ 720,000 Term loan 249,303 Senior unsecured notes 3,710,972 Mortgage debt” 395,170 Consolidated Debt $ 5,075,445 Share of unconsolidate
Slide 49: Company Information
COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT Chairman of the Board, Healthpeak Properties, Inc. Former General Counsel, U.S. Securities and Exchange Commission THOMAS M. HERZOG Chief Executive Officer, Healthpeak Properties, Inc. CHRISTINE N. GARVEY Former Global Head of Corporate Real
Slide 50: 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 51: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements & Risk Factors (concluded) from potential transactions; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebte
Slide 52: Corporate Headquarters, Denver, CO
Corporate HO, Denver, CO 5050 South Syracuse Street, Suite 800 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’ PROPEFTIES ll healthpeak.com
Healthpeak Properties — Q2 2021 Earnings Presentation on 6ix