Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q2 2020 Earnings Presentation
56 slides from Healthpeak Properties's earnings presentation, Aug 4, 2020
Slide 1: Earnings Release and Supplemental Report
The Boardwalk (rendering) San Diego, CA Earnings Release and Supplemental Report ___________________________________________________________________ Second Quarter 2020
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 and Indebtedness 17 Investment Summary 20 Developments and Redevelopments 22 Capital Expenditures 24 Portfolio Diversification 25 Expirations, Ma
Slide 3: Healthpeak Properties Reports Second Quarter 2020 Results
Healthpeak PropertiesTM Reports Second Quarter 2020 Results IRVINE, CA, August 4, 2020 -- Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the second quarter ended June 30, 2020. For the quarter, we generated net income of $0.09 per share, NAREIT FFO of $0.34 per share, FFO as Ad
Slide 4: Second Quarter Comparison
SECOND QUARTER COMPARISON Three Months Ended Three Months Ended June 30, 2020 June 30, 2019 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 51,131 $ 0.09 $ (13,991) $ (0.03) NAREIT FFO, diluted 182,367 0.34 199,906 0.41 FFO as Adjusted, diluted
Slide 5: July 2020 Preliminary Updates (Life Science, Medical Office and Hospitals)
JULY 2020 PRELIMINARY UPDATES (Life Science, Medical Office and Hospitals) July 2020 data is based on preliminary information and is subject to change. (SF = square feet) As of, or for the month ended, July 31, 2020 Indicator (unless otherwise noted) Commentary LIFE SCIENCE Occupancy 96.3% Down 60 b
Slide 6: July 2020 Preliminary Updates (Senior Housing)
JULY 2020 PRELIMINARY UPDATES (Senior Housing) July 2020 data is based on preliminary information and is subject to change. (SF = square feet) As of, or for the month ended, July 31, 2020 Indicator (unless otherwise noted) Commentary SENIOR HOUSING: SHOP(1)(2)(3) Occupancy Spot occupancy (July 31):
Slide 7: 2020 Outlook Update
2020 OUTLOOK UPDATE Please see pages 44 - 46 in the Second Quarter 2020 Supplemental Report for a revised outlook and earnings framework. COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Wednesday, August 5, 2020, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to p
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited) June 30, 2020 December 31, 2019 Assets Real estate: Buildings and improvements $ 12,841,242 $ 11,120,039 Development costs and construction in progress 678,146 692,336 Land 2,113,871 1,9
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Rental and related revenues $ 312,363 $ 301,197 $ 627,051 $ 595,419 Resident fees and services 269,697
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended Six Months Ended (1) For the six months ended June 30, 2020, relates to June 30, June 30, the gain on consolidation of 13 continuing care 2020 2019 2020 2019 retirement communities ("
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, 2020 2019 2020 2019 FFO as Adjusted applicable to common shares $ 214,713 $ 212,939 $ 441,727 $ 424,961 Amortization of deferred compensation 4,984 4,308 8,972 7,
Slide 12: Overview
The Numbers Overview (1)(2) As of and for the quarter and six months ended June 30, 2020, dollars, square feet, and shares in thousands, except per share data 2Q20 YTD 2020 (1) Reconciliations, definitions, and important discussions regarding the usefulness and limitations of the non- Financial Metr
Slide 13: Portfolio Summary
Portfolio Summary As of and for the quarter ended June 30, 2020, dollars in thousands Weighted Property Average Portfolio Portfolio Private Count Age(1) Investment Income Pay %(2) PORTFOLIO INCOME(4) Property Portfolio Senior housing triple-net 62 19 $ 1,024,660 $ 24,104 93.1 SHOP 132 18 3,479,806 2
Slide 14: Quarter NOI Summary
Quarter NOI Summary For the quarter ended June 30, 2020, dollars in thousands PORTFOLIO NOI SUMMARY Portfolio NOI SS NOI Portfolio Real Portfolio Estate Operating SS Real Estate SS Operating Revenues Expenses Portfolio NOI Revenues Expenses SS NOI Senior housing triple-net $ 24,589 $ (526) $ 24,063
Slide 15: Year-To-Date NOI Summary
Year-To-Date NOI Summary For the six months ended June 30, 2020, dollars in thousands NOI SUMMARY Portfolio NOI SS NOI Portfolio Real Portfolio Estate Operating SS Real Estate SS Operating Revenues Expenses Portfolio NOI Revenues Expenses SS NOI Wholly-Owned Senior housing triple-net $ 57,724 $ (1,0
Slide 16: Property Count Reconciliations
Property Count Reconciliations As of June 30, 2020 PROPERTY COUNT RECONCILIATION Senior Housing Life Medical Triple-net SHOP CCRC Science Office Other Total Prior Quarter Total Property Count 64 141 17 134 269 11 636 Acquisitions — — — 1 1 — 2 Assets sold — (4) — — (3) — (7) Segment conversions (2)
Slide 17: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION June 30, 2020 Shares Value Total Value Common stock (NYSE: PEAK) 538,318 $ 27.56 $ 14,836,044 Convertible partnership (DownREIT) units 7,325 27.56 201,877 Total Market Equity 545,643 $ 15,037,921 Consoli
Slide 18: Indebtedness and Ratios
Indebtedness and Ratios As of June 30, 2020, 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 %(3) Amounts
Slide 19: Indebtedness and Ratios
Indebtedness and Ratios As of June 30, 2020, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 512,060 8 3.94 8.4 Floating rate 50,739 1 2.83 1.8 Combined $ 562,799 9 3.84 7.8 Unsecured Fixed rate 6,050,000 88 3.83 7.0 Floating rat
Slide 20: Investment Summary
Investment Summary For the three and six months ended June 30, 2020, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Six Months Ended MSA Date Capacity Count Property Type June 30, 2020 June 30, 2020 ACQUISITIONS CCRC(1) Various January 6,383 Units 13 CCRC $ — $ 5
Slide 21: Investment Summary
Investment Summary As of and for the six months ended June 30, 2020, dollars and square feet in thousands ASSETS HELD FOR SALE Property Projected Sales Trailing Cash Property Type Capacity Count Price Yield(1) SHOP 2,753 Units 33 $ 255,194 Senior housing triple-net 1,124 Units 12 121,967 CCRC 889 Un
Slide 22: Developments
Developments As of June 30, 2020, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total % of Actual / Estimated Project Total Occupancy Property Cost to Total at Capacity Project Project Project MSA Count CIP(1) Complete(1) Completion (Sq. Ft.) Leased Start Initial Stabilized(2)
Slide 23: Redevelopments and Land Held for Development
Redevelopments and Land Held for (1) Development As of June 30, 2020, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Estimated Property Property Placed in Cost to Project Completion (2) (3) Project MSA Type Count Service CIP Co
Slide 24: Capital Expenditures
Capital Expenditures For the three and six months ended June 30, 2020, dollars in thousands, except per unit/square foot Senior Housing SECOND QUARTER Triple-net SHOP CCRC Life Science Medical Office Other Total Portfolio at share Recurring capital expenditures $ — $ 3,585 $ 1,843 $ 224 $ 2,491 $ —
Slide 25: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended June 30, 2020, dollars in thousands PORTFOLIO INCOME BY MSA Property Senior Housing Medical MSA Count(1) Triple-net SHOP CCRC Life Science Office Other Total % of Total San Francisco, CA 84 $ 1,443 $ 2,618 $ — $ 67,732 $ 823 $ — $ 72,616 25 S
Slide 26: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended June 30, 2020, dollars in thousands PORTFOLIO INCOME BY OPERATOR/TENANT Tenant/Credit Exposure Operator Exposure Senior % of % of Property Housing Life Medical Portfolio Property Portfolio Operator/Tenant Count(1) Triple-net Science Office Ot
Slide 27: Expirations, Maturities and Purchase Options
Expirations, Maturities and Purchase Options As of June 30, 2020, dollars in thousands EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent(1) Senior Housing Medical Interest Year Total % of Total Triple-net Life Science Office Other Income 2020(2) $ 51,652 5 $ — $ 8,063 $ 42,605 $ — $ 984
Slide 28: Triple-Net Master Lease Profile
(1) Triple-Net Master Lease Profile % of Weighted (1) Excludes properties held for sale or sold, master leases with properties acquired during the Portfolio Cash Average period required to calculate CFC, and master leases that include newly completed NOI and # of Leases/ Maturity in developments tha
Slide 29: Senior Housing Triple-net
(1) Senior Housing Triple-net As of and for the quarter ended June 30, 2020, dollars in thousands, except REVPOR INVESTMENTS Straight-line Facility Facility Portfolio Portfolio Rent Occupancy REVPOR EBITDARM EBITDAR Operator Investment Cash NOI Balance(2) Count Units % Triple-Net CFC CFC Brookdale S
Slide 30: Senior Housing Triple-net New Supply
Senior Housing Triple-net New Supply As of and for the quarter ended June 30, 2020, dollars in thousands NEW SUPPLY ANALYSIS Senior Housing Triple-net Portfolio 5-Mile Radius(1) Portfolio Cash 5-Year 80+ % of Triple- Properties/ NOI Exposed Population 80+ Median Median Portfolio net Portfolio Units
Slide 31: SHOP
(1) SHOP As of and for the quarter ended June 30, 2020, dollars in thousands, except REVPOR INVESTMENTS Property Portfolio Portfolio Cash REVPOR Count Investment NOI(2)(3) Units Occupancy %(4) SHOP(3) Operator Oakmont Senior Living 12 $ 575,496 $ 7,336 1,049 88.9 $ 8,051 Sunrise Senior Living 38 883
Slide 32: SHOP MSA
SHOP MSA As of and for the quarter ended June 30, 2020, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS Units(1) REVPOR SHOP(1) % of SHOP Portfolio Portfolio Portfolio Occupancy MSA Investment Cash NOI Cash NOI AL IL % AL IL Houston, TX $ 207,710 $ 3,337 12.7 311 1,723 83.9 $ 4,822 $
Slide 33: SHOP Same-Store
SHOP Same-Store Dollars in thousands, except REVPOR Sequential Year-Over- 2Q19 3Q19 4Q19 1Q20 2Q20 Growth Year Growth Property count 71 71 71 71 71 — — Portfolio Investment $ 1,856,983 $ 1,866,533 $ 1,867,585 $ 1,872,931 $ 1,876,002 0.2% 1.0% Units 9,368 9,368 9,368 9,366 9,362 — % (0.1%) Occupancy
Slide 34: SHOP Non-Same-Store
SHOP Non-Same-Store(1)(2) Dollars in thousands, except REVPOR 3Q19 4Q19 1Q20 2Q20 Property Portfolio Property Portfolio Property Portfolio Property Portfolio Count Cash NOI Count Cash NOI Count Cash NOI Count Cash NOI Same-Store 48 $ 20,815 29 $ 10,591 50 $ 17,938 71 $ 16,425 Segment conversions(3)
Slide 35: SHOP New Supply
SHOP New Supply As of and for the quarter ended June 30, 2020, dollars in thousands NEW SUPPLY ANALYSIS SHOP 5-Mile Radius(1) % of 5-Year 80+ SHOP Properties/ Portfolio Cash NOI Population 80+ Median Portfolio Portfolio Units Under Exposed to New Growth % Penetration Household Median Unemploy- MSA U
Slide 36: CCRC
(1) CCRC As of and for the quarter ended June 30, 2020, dollars in thousands, except REVPOR CCRC Portfolio Real Portfolio Property Portfolio Estate Revenues, NREF Portfolio Adjusted Occupancy REVPOR NREF Cash Count Investment excluding NREFS Amortization Cash Opex NOI Units %(2) CCRC Collections Ope
Slide 37: Life Science
Life Science As of and for the quarter ended June 30, 2020, dollars and square feet in thousands INVESTMENTS(1) Property Portfolio Portfolio Cash Square Occupancy MSA Count Investment NOI Feet % San Francisco, CA 77 $ 3,592,244 $ 67,732 5,068 95.5 San Diego, CA 34 1,003,468 15,540 2,245 97.6 Boston,
Slide 38: Life Science
Life Science As of June 30, 2020, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS) Total San Francisco San Diego Boston Remaining Leased Square Annualized Square Annualized Square Annualized Square Annualized Square Annualized Year Feet % Base Rent(1) % Feet Base Re
Slide 39: Life Science
Life Science Square feet in thousands LEASING ACTIVITY Annualized Tenant Trailing Twelve Leased Base Rent % Change in Improvements Leasing Costs Average Lease Month Retention Square Feet Per Sq. Ft. Cash Rents per Sq. Ft.(1) per Sq. Ft.(1) Term (Months) Rate Leased Square Feet as of March 31, 2020 8
Slide 40: Medical Office
Medical Office As of and for the quarter ended June 30, 2020, dollars and square feet in thousands PORTFOLIO BY MARKET(1) Square Feet On-campus(2) Off-campus(3) Total Property Portfolio Portfolio Occupancy MSA Count Investment Cash NOI % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-te
Slide 41: Medical Office
Medical Office As of and for the quarter ended June 30, 2020, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Square Feet Directly Leased by Health System Health System Credit % of Annualized Health System Rank(1) Rating On-Campus Adjacent(2) Anchored(2) Off-Campus Total % of Total % Square Fe
Slide 42: Medical Office
Medical Office As of and for the quarter ended June 30, 2020, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS)(1) Total On-Campus Off-Campus Leased Annualized Annualized Annualized Year Square Feet % Base Rent(2) % Square Feet Base Rent(2) Square Feet Base Rent(2) 2
Slide 43: Other Wholly-owned
Other Wholly-owned As of and for the quarter ended June 30, 2020, dollars in thousands LEASED PROPERTIES Facility Facility Property Portfolio Portfolio Occupancy EBITDARM EBITDAR Type/Operator Count Investment Cash NOI Beds %(1) CFC(1) CFC(1) Hospitals 10 $ 254,561 $ 10,688 930 51.9 3.31x 2.94x Othe
Slide 44: 2020 Outlook & Additional Items
2020 Outlook & Additional Items Projected full year 2020, dollars in millions, except per share amounts Please note that the figures provided on these pages do not represent guidance, but an outlook to help quantify the potential outcomes and impacts from COVID-19 Full Year 2020 Full Year 2020 Outlo
Slide 45: 2020 Outlook & Additional Items
2020 Outlook & Additional Items FFO per share impacts for May and August Outlooks are relative to our February 2020 Guidance of $1.80 per share at the midpoint, which was formally withdrawn in March 2020. Dollars in millions, except per share data Known Items May Outlook August Outlook Type of Impac
Slide 46: 2020 Outlook & Additional Items
2020 Outlook & Additional Items Estimated Monthly COVID-19 Impact SHOP May Outlook August Outlook Commentary (1) Occupancy During the second quarter, move-ins declined at a slower rate than initially expected in our May Outlook. Move-ins during COVID-19 disruption(2) 0.0 - 2.0% 1.5 - 3.5% For August
Slide 47: Glossary
Glossary Adjusted Fixed Charge Coverage* Consolidated Secured Debt Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental Mortgage and other debt secured by real estate, as reported in our consolidated financial measure of liquidity and our ability to meet inter
Slide 48: Glossary
Glossary Enterprise Secured Debt* Fixed Charges* Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs. Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed Enterprise Secured Debt is a supplemental measure of
Slide 49: Glossary
Glossary Net Debt to Adjusted EBITDAre* Portfolio Income* Net Debt divided by Adjusted EBITDAre is a supplemental measure of our ability to decrease our Cash NOI plus interest income plus our pro rata share of Cash NOI from our unconsolidated JVs debt. Because we may not be able to use our cash to r
Slide 50: Glossary
Glossary REVPOR Triple-net Share of Consolidated Joint Ventures The 3-month average facility revenue per occupied unit, one quarter in arrears from the period Noncontrolling interests' pro rata share information is prepared by applying noncontrolling presented. Facility revenue consists primarily of
Slide 51: Debt Ratios
Adjusted EBITDAre and Adjusted Debt Ratios Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended June 30, 2020 Net income (loss) $ 55,049 Interest expense 57,550 Income tax expense (benefit) (7,346) Depreciation and amortization 178,488 Other depreciation and
Slide 52: Debt Ratios
Debt Ratios As of and for the quarter ended June 30, 2020, dollars in thousands ENTERPRISE DEBT AND NET DEBT June 30, 2020 (1) Includes mortgage debt of $27.6 million on assets held for Bank line of credit and commercial paper $ — sale that matures in 2044. Term loan 249,062 (2) Represents the curre
Slide 53: Company Information
COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT DAVID B. HENRY Chairman of the Board, Healthpeak Properties, Inc. Former Vice Chairman and Chief Executive Officer, Former General Counsel, Kimco Realty Corporation U.S. Securities and Exchange Commission LYDIA H. KENNARD THOMAS M. HERZOG Pr
Slide 54: Forward-Looking Statements & Risk Factors
Medical City Hospital Forward-Looking Statements Dallas, TX & Risk Factors Statements contained in this supplemental report which 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 E
Slide 55: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements 2201 Medical Plaza Nashville, TN & Risk Factors (concluded) its lack of sole decision making authority and its reliance on its partners’ financial condition and continued cooperation; competition for the acquisition and financing of suitable healthcare properties as well a
Slide 56: Corporate HQ, Irvine, CA
_________________________________________________________ Corporate HQ, Irvine, CA 1920 Main Street, Suite 1200 Irvine, CA 92614 (949) 407 - 0700 ________________________________________________________ San Francisco, CA 950 Tower Lane, Suite 1650 Foster City, CA 94404 ______________________________
Healthpeak Properties — Q2 2020 Earnings Presentation on 6ix