Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q1 2023 Earnings Presentation
46 slides from Healthpeak Properties's earnings presentation, Apr 28, 2023
Slide 1: Earnings Release and Supplemental Report
The Cove South San Francisco, CA Earnings Release and Supplemental Report ___________________________________________________________________ First Quarter 2023
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 8 Overview 12 Portfolio Summary 13 Property Count Reconciliations 15 Capitalization 16 Indebtedness 17 Investment Summary 19 Developments and Redevelopments 20 Capital Expenditures 22 Portfolio Diversification 23 Portfolio Life S
Slide 3: Healthpeak Reports First Quarter 2023 Results and Declares Dividend
Healthpeak Properties Reports First Quarter 2023 Results and Declares Quarterly Cash Dividend on Common Stock DENVER, April 27, 2023 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the first quarter ended March 31, 2023. FIRST QUARTER 2023 FINANCIAL PERFORMANCE AND RECENT HIGH
Slide 4: First Quarter Comparison
FIRST QUARTER COMPARISON Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income, diluted $ 117,698 $ 0.22 $ 69,637 $ 0.13 Nareit FFO, diluted 230,443 0.42 245,783 0.45 FFO as Adjusted, diluted 231,881
Slide 5: 101 CambridgePark Drive Development; Dispositions and Loan Repayments
101 CAMBRIDGEPARK DRIVE DEVELOPMENT During the first quarter, Healthpeak placed-in-service the remaining 19,000 square feet, representing $28 million of investment, at 101 CambridgePark Drive in Cambridge, Massachusetts. 101 CambridgePark Drive totals approximately 161,000 square feet, with the purp
Slide 6: 2023 Guidance
2023 GUIDANCE We are reaffirming the following guidance ranges for full year 2023: • 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 We are updating the following guidance range for full year 2023: •
Slide 7: Company Information
COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Friday, April 28, 2023, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to review its financial and operating results for the quarter ended March 31, 2023. The conference call is accessible by dialing (888) 317-6003
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data March 31, 2023 December 31, 2022 Assets Real estate: Buildings and improvements $ 12,889,290 $ 12,784,078 Development costs and construction in progress 819,810 760,355 Land 2,674,942 2,667,188 Accu
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data Three Months Ended March 31, 2023 2022 Revenues: Rental and related revenues $ 392,431 $ 370,150 Resident fees and services 127,084 121,560 Interest income 6,163 5,494 Income from direct financing l
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended (1) The three months ended March 31, 2022 includes the March 31, following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) a 2023 2022 $23 mil
Slide 11: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (1) The three months ended March 31, 2023 includes an $8.7 million write-off of straight-line rent receivable Three Months Ended associated with Sorrento Therapeutics, Inc., which March 31, commenced voluntary reorganization pro
Slide 12: Overview
The Numbers Overview(1) As of and for the quarter ended March 31, 2023, dollars, square feet, and shares in thousands, except per share data (1) Reconciliations, definitions, and important discussions 1Q23 regarding the usefulness and limitations of the non-GAAP Financial Metrics financial measures
Slide 13: Portfolio Summary
Portfolio Summary As of and for the quarter ended March 31, 2023, dollars in thousands Property Weighted Portfolio Portfolio Count Average Age(1) Investment Income Property Portfolio PORTFOLIO INCOME(4) Life science 131 14 $ 7,789,762 $ 147,946 Medical office 291 24 6,225,932 112,820 CCRC(2) 15 32 2
Slide 14: Quarter NOI Summary
Quarter NOI Summary For the quarter ended March 31, 2023, 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: Property Count Reconciliations
Property Count Reconciliations As of March 31, 2023 PROPERTY COUNT RECONCILIATION Medical Life Science Office CCRC Other Total Prior Quarter Total Property Count 149 297 15 19 480 Assets sold (2) (2) — — (4) Current Quarter Total Property Count 147 295 15 19 476 Recent acquisitions — (4) — — (4) Ass
Slide 16: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION March 31, 2023 Shares Value Total Value Common stock (NYSE: PEAK) 546,995 $ 21.97 $ 12,017,480 Convertible partnership (DownREIT) units 7,290 21.97 160,161 Total Market Equity 554,285 $ 12,177,641 Consol
Slide 17: Indebtedness
Indebtedness As of March 31, 2023, 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(1) Term Loan(2) Amounts Rates % Amounts Rates % Debt
Slide 18: Indebtedness
Indebtedness As of March 31, 2023, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 368,801 6 4.19 2.6 Floating rate 14,725 — 8.34 1.7 Combined $ 383,526 6 4.35 2.5 Unsecured Fixed rate(1) 5,600,000 86 3.55 6.0 Floating rate(2) 55
Slide 19: Investment Summary
Investment Summary As of and for the three months ended March 31, 2023, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended MSA Date Capacity Count Property Type March 31, 2023 ACQUISITIONS(1) 60 Loomis land parcel Boston, MA January — — Life science $ 9,456 OTHER INV
Slide 20: Developments In Process
Developments In Process As of March 31, 2023, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total Project % of Total Projected Property Cost to Total at Capacity Project Initial Stabilized Project(1) MSA Count CIP(2) Complete(2) Completion (Sq. Ft.) Leased Occupancy(3) Yield(4
Slide 21: Redevelopments and Land Held for Development
Redevelopments and Land Held for Development As of March 31, 2023, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property Property Cost to Estimated Project(1) MSA Type Count CIP(2) Complete(2) Total Completion Date 65 Hayden
Slide 22: Capital Expenditures
(1) Capital Expenditures For the three months ended March 31, 2023, dollars in thousands, except per unit/square foot FIRST QUARTER Life Science Medical Office CCRC Other Total Portfolio at share Recurring capital expenditures $ 337 $ 2,780 $ 3,074 $ 570 $ 6,761 Tenant improvements - 2nd generation
Slide 23: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended March 31, 2023, dollars in thousands PORTFOLIO INCOME BY MSA Property Medical MSA Count(1) Life Science Office CCRC Other Total % of Total San Francisco, CA 82 $ 87,083 $ 710 $ — $ — $ 87,793 29 Boston, MA 21 35,228 805 — — 36,033 12 San Dieg
Slide 24: Life Science
Life Science As of and for the quarter ended March 31, 2023, dollars and square feet in thousands INVESTMENTS(1) Portfolio Cash Total Property Portfolio (Adjusted) Square Occupancy Annualized MSA Count Investment NOI Feet % Base Rent % San Francisco, CA 81 $ 4,011,584 $ 87,083 5,159 97.4 57.2 Boston
Slide 25: Life Science Tenant Concentration
Life Science As of March 31, 2023 TENANT CONCENTRATION Annualized Weighted Leased Square Feet Base Rent(2) ANNUALIZED BASE RENT(2) Cash and Average Liquid Remaining Market Cap Investments Lease Term Amount % of Amount % of Parent Name (in millions) (in millions)(1) in Years (in thousands) Total (in
Slide 26: Life Science Lease Expiration Data
Life Science As of March 31, 2023, dollars and square feet in thousands, presented at 100% LEASE EXPIRATION DATA Total San Francisco Boston San Diego Remaining Leased Leased Leased Leased Leased Square Annualized Square Annualized Square Annualized Square Annualized Square Annualized Year Feet % Bas
Slide 27: Life Science Lease Type and Ownership
Life Science As of and for the quarter ended March 31, 2023, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego Remaining Total % of Total Triple-Net(1) $ 312,333 $ 123,195 $ 96,822 $ 6,780 $ 539,130 92.5 Base Year(2) 20,524 16,986 4,166 — 41,677 7.2
Slide 28: Medical Office
Medical Office As of and for the quarter ended March 31, 2023, dollars and square feet in thousands PORTFOLIO BY MARKET(1) Total Square Feet On-campus Off-campus(2) Total Portfolio Cash Property Portfolio (Adjusted) Occupancy MSA Count Investment NOI % Multi-tenant Single-tenant Multi-tenant Single-
Slide 29: Medical Office Same-Store
Medical Office Same-Store As of and for the quarter ended March 31, 2023, dollars and square feet in thousands SAME-STORE 1Q22 2Q22 3Q22 4Q22 1Q23 Property Count 273 273 273 273 273 Portfolio Investment $ 5,518,149 $ 5,549,297 $ 5,589,349 $ 5,630,013 $ 5,666,441 Square Feet 22,138 22,143 22,147 22,1
Slide 30: Medical Office Square Feet by Health System
Medical Office As of March 31, 2023, 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(1) Anchored(1) Off-Campus Total Total System T
Slide 31: Medical Office Lease Expiration Data
Medical Office As of and for the quarter ended March 31, 2023, dollars and square feet in thousands, presented at 100% LEASE EXPIRATION DATA Total On-Campus Off-Campus Leased Annualized Leased Annualized Leased Annualized Year Square Feet % Base Rent(1) % Square Feet Base Rent(1) Square Feet Base Re
Slide 32: Medical Office Lease Type and Specialty
Medical Office As of and for the quarter ended March 31, 2023, square feet in thousands LEASE TYPE PROVIDER SPECIALTY Leased Square Feet National Healthpeak Benchmark(4) Unaffiliated Types of Specialties On-Campus Adjacent Anchored Off-Campus Total % of Total Orthopedics 10% 4% Triple-Net(1) 11,495
Slide 33: CCRC
CCRC As of and for the quarter ended March 31, 2023, dollars in thousands, except REVPOR INVESTMENTS Portfolio Real Portfolio Property Net Portfolio Estate Revenues, NREF Portfolio Adjusted Occupancy REVPOR NREF Cash Count Investment(1) excluding NREFS Amortization Cash Opex NOI Units % CCRC Collect
Slide 34: CCRC Same-Store
CCRC Same-Store As of and for the quarter ended March 31, 2023, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 1Q22 2Q22 3Q22 4Q22 1Q23 Growth Year Growth Property count 15 15 15 15 15 — — Net Portfolio Investment $ 1,474,262 $ 1,484,906 $ 1,486,923 $ 1,498,292 $ 1,514,431 1.1%
Slide 35: Other
Other As of and for the quarter ended March 31, 2023, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 1Q22 2Q22 3Q22 4Q22 1Q23 Property count 19 19 19 19 19 Investment $ 458,352 $ 460,543 $ 462,219 $ 464,068 $ 465,707 Units 3,354 3,354 3,354 3,354 3,354 Occupancy
Slide 36: 2023 Guidance Information
(1) 2023 Guidance Information Projected full year 2023, dollars in millions, except per share amounts * Represents Healthpeak's 2023 guidance ranges Bolded items represent updates from previous Guidance ranges and assumptions FY 2023 Guidance Apr 27, 2023 Feb 7, 2023 Apr 27, 2023 Feb 7, 2023 2023 Gu
Slide 37: Glossary
Glossary Adjusted Fixed Charge Coverage* Direct Financing Lease (“DFL”) Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental Lease for which future minimum lease payments are recorded as a receivable and the difference measure of liquidity and our ability to m
Slide 38: Glossary
Glossary Financial Leverage* Net Operating Income (“NOI”) and Cash (Adjusted) NOI* Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure of our NOI is defined as real estate revenues (inclusive of rental and related revenues, resident fees and financial pos
Slide 39: Glossary
Glossary Portfolio Real Estate Revenues* and Portfolio Cash Real Estate Revenues* Same-Store (“SS”)* Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues are non-GAAP supplemental Same-Store NOI and Cash (Adjusted) NOI information allows us to evaluate the performance of our measur
Slide 40: Debt Ratios: Adjusted EBITDAre and Fixed Charge Coverage
Adjusted EBITDAre and Adjusted Debt Ratios Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended March 31, 2023 Net income (loss) $ 134,507 Interest expense 47,963 Income tax expense (benefit) 302 Depreciation and amortization 179,225 Other depreciation and am
Slide 41: Debt Ratios
Debt Ratios As of and for the quarter ended March 31, 2023, dollars in thousands ENTERPRISE DEBT AND NET DEBT March 31, 2023 Bank line of credit and commercial paper $ 556,000 Term loan 496,168 (1) For the three months ended, represents the current quarter Adjusted EBITDAre multiplied by a factor of
Slide 42: Company Information
COMPANY Information BOARD OF DIRECTORS KATHERINE M. SANDSTROM CHRISTINE N. GARVEY Chair of the Board, Healthpeak Properties, Inc. Former Global Head of Corporate Former Senior Managing Director, Real Estate Services, Deutsche Bank AG Heitman LLC R. KENT GRIFFIN, JR. SCOTT M. BRINKER Managing Directo
Slide 43: 101 CambridgePark Drive, Boston, MA
101 CambridgePark Drive Boston, MA 43 Return toTOC Return TOC Return to to TOC
Slide 44: 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 45: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements Oyster Point Channel South San Francisco, CA & Risk Factors (concluded) the failure of our tenants, operators, and borrowers to comply with federal, state, and local laws and regulations, including resident health and safety requirements, as well as licensure, certificatio
Slide 46: Corporate Offices
_________________________________________________________ _________________________________________________________ Corporate HQ, Denver, CO South San Francisco, CA 4600 South Syracuse Street, Suite 500 101 Oyster Point Boulevard, Suite 102 Denver, CO 80237 South San Francisco, CA 94080 (720) 428 -
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