Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q3 2022 Earnings Presentation
48 slides from Healthpeak Properties's earnings presentation, Nov 1, 2022
Slide 1: Earnings Release and Supplemental Report Third Quarter 2022
\ TEATHAN | ntti) a i) ae Ti on ia} ey A Earnings Release == and Supplemental Report Van . Healthpeak Third Quarter 2022 PROPERTIES
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 7 Overview 1 Portfolio Summary 12 Property Count Reconciliations 15 Capitalization 16 Indebtedness 7 Investment Summary 19 Developments and Redevelopments 20 Capital Expenditures 22 Portfolio Diversification 23 Portfolio Life Sci
Slide 3: Healthpeak Properties Reports Third Quarter 2022 Results
Healthpeak Properties Reports Third Quarter 2022 Results DENVER, November 1, 2022 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the third quarter ended September 30, 2022. THIRD QUARTER 2022 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS - Net income of $0.65 per share, Nareit
Slide 4: Same-Store Operating Summary
SAME-STORE ("SS") OPERATING SUMMARY The table below outlines the year-over-year three-month SS Cash (Adjusted) NOI growth on an actual and pro forma basis. The Pro Forma table reflects the results excluding government grants under the CARES Act for our CCRC portfolio. Actual Pro Forma (excluding CAR
Slide 5: Balance Sheet
BALANCE SHEET In August 2022, Healthpeak closed two previously announced senior unsecured delayed draw term loans (the “Term Loan Facilities") in an aggregate principal amount of up to $500 million, with initial stated maturities of 4.5 years (plus 1-year extension option at Healthpeak’s discretion)
Slide 6: Company Information
COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Wednesday, November 2, 2022, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to review its financial and operating results for the quarter ended September 30, 2022. The conference call is accessible by dialing (888)
Slide 7: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data September 30, 2022 December 31, 2021 Assets Real estate: Buildings and improvements $ 12,633,935 $ 12,025,271 Development costs and construction in progress 744,711 877,423 Land 2,647,430 2,603,964
Slide 8: 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 9: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended Nine Months Ended (1) This amount can be reconciled by combining the September 30, September 30, balances from the corresponding line of the Consolidated Statements of Operations of this Earnings
Slide 10: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 FFO as Adjusted applicable to common shares $ 233,166 $ 217,471 $ 704,460 $ 650,166 Stock-based compensation amortization expense 4,614 4,436 1
Slide 11: The Numbers: Overview
The Numbers Overview") As of and for the quarter and nine months ended September 30, 2022, dollars, square feet, and shares in thousands, except per share data 3022 YTD 2022 Financial Metrics Diluted earnings per common share $0.65 $0.91 Diluted Nareit FFO per common share $0.42 $1.30 Diluted FFO as
Slide 12: Portfolio Summary
Portfolio Summary") As of and for the quarter ended September 30, 2022, dollars in thousands, excludes discontinued operations Property Weighted Portfolio Portfolio Count Average Age? Investment Income Property Portfolio 4 Life science 135 148 7,705,134 $ 139,539 PORTFOLIO INCOMES Medical office 289
Slide 13: Quarter NOI Summary
Quarter NOI Summar For the quarter ended September 30, 2022, dollars in thousands, excludes discontinued operations 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
Slide 14: Year-To-Date NOI Summary
Year-To-Date NOI Summar For the nine months ended September 30, 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 Portfoli
Slide 15: Property Count Reconciliations
Count Reconciliations As of September 30, 2022 PROPERTY COUNT RECONCILIATION Medical Life Science Office CCRC Other Total Prior Quarter Total Property Count 149 298 15 19 481 Assets sold - (2) - - (2) New Developments = 1 = = 1 Current Quarter Total Property Count 149 297 15 19 480 Acquisitions non-
Slide 16: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION September 30, 2022 Shares Value Total Value Common stock (NYSE: PEAK) 537,534 $ 2292 § 12,320,279 Convertible partnership (DownREIT) units 7,317 22.92 167,706 Total Market Equity 544,851 $ 12,487,985 Con
Slide 17: Indebtedness: Debt Maturities
Indebtedness As of September 30, 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 & Commerci Consolidated Paper?) Amounts Rates %| Amounts Rates % Debt Amounts®
Slide 18: Indebtedness: Debt Structure
Indebtedness As of September 30, 2022, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance °% of Total Rates % Maturity Secured Fixed rate $ 371,309 6 4.22 3.1 Floating rate 14,669 - 5.92 22 Combined $ 385,978 6 4.29 3.0 Unsecured Fixed rate 4,700,000 ral 3.39 64 Floating rate?) 1,
Slide 19: Investment Summary
Investment Summar As of and for the nine months ended September 30, 2022, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Nine Months Ended MSA Date Capacity Count PropertyType _— September 30, 2022 September 30, 2022 ACQUISITIONS 67 Smith Place land parcel Boston
Slide 20: Developments in Process
Develo @ ments In Process As of September 30, 2022, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Project % of Total Property Cost to Total at Capacity Project Project Initial Project MSA ount CIP?) Complete”) Completion (Sq. Ft.) Leased Start Occupancy Life Science 101 Cambri
Slide 21: Redevelopments and Land Held for Development
(1) (2) (3) (4) (5) (6) (7) (8) (9) Redevelopments and Land Held for Develooment As of September 30, 2022, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Estimated Property Property Cost to Project | Completion Project” MSA Typ
Slide 22: Capital Expenditures
Capital Expenditures!) For the three and nine months ended September 30, 2022, dollars in thousands, except per unit/square foot, excludes discontinued operations THIRD QUARTER Life Science Medical Office CCRC Other Total Portfolio at share Recurring capital expenditures $ 3,172 $ 3,409 $ 4,417 $ 1,
Slide 23: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 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 $ 85,333 $ 795 $ — $ — $ 86,128 31 Boston
Slide 24: Life Science
Life Science As of and for the quarter ended September 30, 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 $ 4,052,861 $ 85,333 5,361 99.0 60.3 Bost
Slide 25: Life Science Tenant Concentration
Life Science As of September 30, 2022, dollars and square feet in thousands. TENANT CONCENTRATION” Average Feet Base Rent?) Remaining Market Cap Lease Term % of % of Parent Name {in millions) in Years Amount Total Amount Total Amgen $ 120,573 1.9 624 6 $ 50,811 9 Johnson & Johnson 429,503 6.2 349 3
Slide 26: Life Science Lease Expirations
As of September 30, 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”)
Slide 27: Life Science Leasing Activity
Life Science As of September 30, 2022, dollars and square feet in thousands, presented at 100% 3022 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 28: Life Science Lease Type and Ownership
Life Science As of and for the quarter ended September 30, 2022, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego _ Remaining Total % of Total Triple-Net™ $ 322,570 $ 105,713 $ 92,238 $ 6,780 $ 527,301 92.2 Base Year” 21,607 17,224 3,851 - 42,682 78
Slide 29: Medical Office
Medical Office As of and for the quarter ended September 30, 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 Singl
Slide 30: Medical Office Same-Store
As of and for the quarter ended September 30, 2022, dollars and square feet in thousands 3021 4021 1022 2022 3022 Property Count 262 262 262 262 262 Portfolio Investment $ 4,991,737 $ 5,031,055 $ 5,057,280 $ 5,084,817 $ 5,119,960 Square Feet 20,971 20,971 20,966 20,973 20,978 Occupancy % 91.2 91.5 9
Slide 31: Medical Office Square Feet by Health System
Medical Office As of and for the quarter ended September 30, 2022, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Total Square Feet Weighted % Directly _ Average Leased by Remaining Property _—_Credit Unaffiliated %of Health Lease Health System unt Rating On-Campus Adjacent” Anchored" Off-Cam
Slide 32: Medical Office Lease Expiration Data
Medical Office As of and for the quarter ended September 30, 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!” 20222 93
Slide 33: Medical Office Leasing Activity
Medical Office As of September 30, 2022, dollars and square feet in thousands, presented at 100% 3022 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) R
Slide 34: Medical Office Lease Type and Provider Specialty
Medical Office As of and for the quarter ended September 30, 2022, square feet in thousands LEASE TYPE PROVIDER SPECIALTY Leased Square Feet National Healthpeak Benchmark" On-Campus Adjacent Anchored of cansus Total — % of Total Types of Specialties Triple-Net™ 11,474 663. —~—«1,878 117 74,131 65.3
Slide 35: CCRC
CCRC As of and for the quarter ended September 30, 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
Slide 36: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended September 30, 2022, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 3021 4021 1022 2022 3022 Growth Year Growth Property count 15 18 18 15 18 = = Net Portfolio Investment $ 1,432,162 $ 1,458,656 $ 1,474,262 $ 1,484,906 $ 1,486,9
Slide 37: Other: Sovereign Wealth Fund Senior Housing JV
As of and for the quarter ended September 30, 2022, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 3021 4021 1022 2022 3022 Property count 19 19 19 19 19 Investment 455,743 $ 457,870 $ 458,352 $ 460,543 $462,219 Units 3,354 3,354 3,354 3,354 3,354 Occupancy % 74
Slide 38: 2022 Guidance & Additional Items
2022 Guidance & Additional Items Projected full year 2022, dollars in millions, except per share Bolded items represent updates from previous Guidance ranges and assumptions Full Year 2022 Guidance (November 1, 2022) 2022 Guidance Diluted earnings per common share $0.94 - $0.96 Diluted Nareit FFO pe
Slide 39: 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 40: 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 41: 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 42: 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 September 30, 2022 (1) This amount can be reconciled by combining the balances Net income (loss) $ 357,986 from the corresponding line of the Consolidated Stateme
Slide 43: Debt Ratios
Debt Ratios As of and for the quarter ended September 30, 2022, dollars in thousands ENTERPRISE DEBT AND NET DEBT September 30, 2022 Bank line of credit and commercial paper $ 1,585,333 Senior unsecured notes 4,657,651 Mortgage debt 347,987 Consolidated Debt $ 6,590,971 Share of unconsolidated JV mo
Slide 44: 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 45: isco, CA™
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Slide 46: 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. Forward-looking statements include, among o
Slide 47: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements & 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, certification and inspection requirements; required regulat
Slide 48: Corporate HQ, Denver, CO
Corporate HQ, 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’ PROPERTIES «lll South San Francisco, CA 2000 Sierra Point Parkway,
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