Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q4 2019 Earnings Presentation
60 slides from Healthpeak Properties's earnings presentation, Feb 11, 2020
Slide 1: Earnings Release and Supplemental Report
35 Cambridgepark Drive Boston, MA Earnings Release and Supplemental Report ___________________________________________________________________ Fourth Quarter 2019
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 10 Overview 14 Portfolio Summary 15 Property Count Reconciliations 18 Capitalization and Indebtedness 19 Investment Summary 22 Developments and Redevelopments 24 Capital Expenditures 26 Portfolio Diversification 27 Expirations an
Slide 3: Reports Fourth Quarter and Year Ended 2019 Results
Healthpeak PropertiesTM Reports Fourth Quarter and Year Ended 2019 Results IRVINE, CA, February 11, 2020 -- Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the fourth quarter and full year ended December 31, 2019. FOURTH QUARTER 2019 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS –
Slide 4: Full Year 2019 Highlights
FULL YEAR 2019 HIGHLIGHTS – Net income of $0.09 per share, NAREIT FFO of $1.59 per share, FFO as Adjusted of $1.76 per share and blended Total Portfolio SPP Cash NOI growth of 3.7% – Changed name to Healthpeak Properties, Inc., ticker symbol to “PEAK” and website URL to www.healthpeak.com – Announce
Slide 5: Fourth Quarter and Full Year Comparison
FOURTH QUARTER COMPARISON Three Months Ended Three Months Ended December 31, 2019 December 31, 2018 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 43,200 $ 0.09 $ 831,965 $ 1.73 NAREIT FFO, diluted 195,892 0.39 195,187 0.41 FFO as Adjusted, di
Slide 6: Life Science Acquisition
LIFE SCIENCE ACQUISITION In January 2020, Healthpeak executed a definitive agreement to acquire a $320 million, 426,000 square foot Class A life science campus known as The Post, located in Waltham, within the Route 128 submarket of Boston, Massachusetts and less than one mile from Healthpeak’s Hayd
Slide 7: Previously Announced Senior Housing Transactions
PREVIOUSLY ANNOUNCED SENIOR HOUSING TRANSACTIONS OAKMONT PURCHASE OPTION AGREEMENT In December 2019, Healthpeak and Oakmont entered into an agreement that provides Healthpeak the option to acquire up to 24 of Oakmont's senior housing development properties upon stabilization (the "Development Proper
Slide 8: Equity Capital Markets
EQUITY CAPITAL MARKETS From November 2019 through January 2020, Healthpeak sold 23.1 million shares of common stock on a forward basis, for gross proceeds of $797 million: • In December 2019, Healthpeak completed a public follow-on offering of 15.6 million shares of common stock priced at $35.00 per
Slide 9: Company Information
COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Wednesday, February 12, 2020, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to present its performance and operating results for the fourth quarter and full year ended December 31, 2019. The conference call is acces
Slide 10: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data December 31, 2019 December 31, 2018 Assets Real estate: Buildings and improvements $ 11,120,039 $ 10,877,248 Development costs and construction in progress 692,336 537,643 Land 1,992,602 1,637,506 A
Slide 11: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 (unaudited) Revenues: Rental and related revenues $ 314,059 $ 298,790 $ 1,222,078 $ 1,237,236 Resident fees and services 2
Slide 12: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended Year Ended (1) For the three months ended December 31, 2019, December 31, December 31, primarily relates to the gain related to the 2019 2018 2019 2018 deconsolidation of 19 previousl
Slide 13: Funds Available for Distribution
Healthpeak Properties, Inc. Funds Available for Distribution In thousands (unaudited) Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 FFO as Adjusted applicable to common shares $ 218,815 $ 202,133 $ 864,352 $ 857,233 Amortization of deferred compensation(1) 3,177 3,465 1
Slide 14: Overview
The Numbers Overview (1) As of and for the quarter and year ended December 31, 2019, dollars, square feet, and shares in thousands, except per share data (1) Reconciliations, definitions, and important discussions regarding the usefulness and limitations of the non-GAAP 4Q19 Full Year 2019 financial
Slide 15: Portfolio Summary
Portfolio Summary As of and for the quarter ended December 31, 2019, dollars in thousands Weighted Property Average Portfolio Portfolio Private Count Age(1) Investment Income Pay %(2) PORTFOLIO INCOME(3) Wholly Owned Property Portfolio Senior housing triple-net 90 23 $ 1,437,069 $ 39,715 91.5 SHOP 1
Slide 16: Quarter NOI Summary
Quarter NOI Summary For the quarter ended December 31, 2019, dollars in thousands NOI SUMMARY NOI SPP NOI Real Estate Operating SPP Real Estate SPP Operating Revenues Expenses NOI(1) Revenues Expenses SPP NOI Wholly-Owned Senior housing triple-net $ 42,665 $ (1,842) $ 40,823 $ 23,528 $ (38) $ 23,490
Slide 17: Full Year NOI Summary
Full Year NOI Summary For the twelve months ended December 31, 2019, dollars in thousands NOI SUMMARY NOI SPP NOI SPP Real Real Estate Operating Estate SPP Operating Revenues Expenses NOI(1) Revenues Expenses SPP NOI Wholly-Owned Senior housing triple-net $ 199,441 $ (4,565) $ 194,876 $ 90,212 $ (17
Slide 18: Property Count Reconciliations
Property Count Reconciliations As of December 31, 2019 PROPERTY COUNT RECONCILIATION Senior Housing Life Medical Triple-net SHOP Science Office Other Total Prior Quarter Total Property Count 92 139 131 267 111 740 Acquisitions — — 1 1 — 2 Assets sold — (7) — (4) (71) (82) Senior housing triple-net t
Slide 19: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2019 Shares Value Total Value Common stock (NYSE: PEAK) 505,222 $ 34.47 $ 17,415,002 Convertible partnership (DownREIT) units 7,445 34.47 256,629 Total Market Equity 512,667 $ 17,671,631 Con
Slide 20: Indebtedness and Ratios
Indebtedness and Ratios As of December 31, 2019, 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) Amo
Slide 21: Indebtedness and Ratios
Indebtedness and Ratios As of December 31, 2019, dollars in thousands, includes our pro rata share of unconsolidated JVs DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 310,193 5 4.13 11.3 Floating rate 139,140 2 4.23 2.6 Combined $ 449,333 7 4.16 8.
Slide 22: Investment Summary
Investment Summary For the three and twelve months ended December 31, 2019, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Twelve Months Ended MSA Date Capacity Count Property Type December 31, 2019 December 31, 2019 ACQUISITIONS 87/101 CambridgePark Drive(1) Bos
Slide 23: Investment Summary
Investment Summary As of and for the year ended December 31, 2019, dollars and square feet in thousands ASSETS HELD FOR SALE Property Projected Sales Trailing Cash Property Type Capacity Count Price Yield(1) SHOP 2,385 Units 28 $ 243,017 Senior housing triple-net(2) 2,740 Units 27 456,126 Medical of
Slide 24: Developments
Developments As of December 31, 2019, 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 Stabilize
Slide 25: Redevelopments and Land Held for Development
Redevelopments and Land Held for (1) Development As of December 31, 2019, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Estimated Property Property Placed in Cost to Project Completion (2) (3) Project MSA Type Count Service CIP Complete(3) Total Start Date(
Slide 26: Capital Expenditures
Capital Expenditures For the three and twelve months ended December 31, 2019, dollars in thousands, except per unit/square foot Senior Housing FOURTH QUARTER Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 470 $ 8,639 $ 5,471 $ 9,275 $ — $ 23,855
Slide 27: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended December 31, 2019, dollars in thousands, includes our pro rata share of unconsolidated JVs PORTFOLIO INCOME BY MSA Property Senior Housing Medical MSA Count(1) Triple-net SHOP Life Science Office Other Total % of Total San Francisco, CA 82 $
Slide 28: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended December 31, 2019, dollars in thousands, includes our pro rata share of unconsolidated JVs PORTFOLIO INCOME BY OPERATOR/TENANT Tenant/Credit Exposure SHOP/Operator Exposure Senior % of % of Property Housing Life Medical Portfolio Property Por
Slide 29: Expirations and Maturities
Expirations and Maturities As of December 31, 2019, 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)(3) $ 120,508 12 $ 7,684 $ 22,230 $ 81,276 $ 8,301 $ 1,01
Slide 30: Triple-Net Master Lease Profile
(1)(2) Triple-Net Master Lease Profile (1) Excludes properties held for sale or sold, master leases with properties acquired during the period required to calculate CFC, and master leases that include newly completed % of Weighted developments that are not Stabilized. Additionally, excludes a data p
Slide 31: Senior Housing Triple-net
Senior Housing Triple-net As of and for the quarter ended December 31, 2019, dollars in thousands, except REVPOR INVESTMENTS(1) Facility Facility Occupancy REVPOR EBITDARM EBITDAR Operator Investment Cash NOI Count Units % Triple-Net CFC CFC Brookdale Senior Living $ 782,176 $ 19,101 43 4,725 87.8 $
Slide 32: Senior Housing Triple-net New Supply
Senior Housing Triple-net New Supply As of and for the quarter ended December 31, 2019, dollars in thousands NEW SUPPLY ANALYSIS(1) Senior Housing Triple-net Portfolio 5-Mile Radius(2) % of Cash NOI 5-Year 80+ Triple- Properties/ Exposed Population 80+ Median Median net Cash Units Under to New Growt
Slide 33: SHOP
(1) SHOP As of and for the quarter ended December 31, 2019, dollars in thousands, except REVPOR INVESTMENTS Property REVPOR Count Investment Cash NOI Units Occupancy % SHOP Operator Sunrise Senior Living 40 $ 1,211,814 $ 12,767 4,797 84.0 $ 7,355 Brookdale Senior Living 4 35,169 9,431 301 N/A N/A Oa
Slide 34: SHOP MSA
SHOP MSA As of and for the quarter ended December 31, 2019, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS Units(2) REVPOR SHOP(2) % of SHOP Occupancy MSA Investment(1) Cash NOI(1) Cash NOI AL IL % AL IL Houston, TX $ 17,760 $ 4,863 10.9 224 — 85.1 $ 4,304 $ — New York, NY 199,922 3
Slide 35: SHOP Same Property Portfolio (Core)
SHOP Dollars in thousands, except REVPOR Same Property Portfolio CORE Sequential Year-Over- 4Q18 1Q19 2Q19 3Q19 4Q19 Growth Year Growth Property count 11 11 11 11 11 — — Investment $ 254,594 $ 255,067 $ 255,894 $ 257,045 $ 258,519 0.6 % 1.5 % Units 1,021 1,020 1,021 1,021 1,021 —% —% Occupancy % 87.
Slide 36: SHOP Same Property Portfolio (Total)
SHOP Same Property Portfolio Dollars in thousands, except REVPOR TOTAL Sequential Year-Over- 4Q18 1Q19 2Q19 3Q19 4Q19 Growth Year Growth Property count 29 29 29 29 29 — — Investment $ 649,021 $ 648,580 $ 651,248 $ 655,566 $ 652,147 (0.5%) 0.5 % Units 3,367 3,367 3,368 3,367 3,367 — % —% Occupancy %
Slide 37: SHOP New Supply
SHOP New Supply As of and for the quarter ended December 31, 2019, dollars in thousands NEW SUPPLY ANALYSIS SHOP 5-Mile Radius(2) Cash NOI 5-Year 80+ % of Properties/ Exposed Population 80+ Median SHOP Units Under to New Growth % Penetration Household Median Unemploy- (1) MSA Units Cash NOI Cash NOI
Slide 38: Life Science
Life Science As of and for the quarter ended December 31, 2019, dollars and square feet in thousands INVESTMENTS(1) Property Cash Square Occupancy MSA Count Investment NOI Feet % San Francisco, CA 75 $ 3,285,260 $ 59,312 4,734 96.9 San Diego, CA 33 856,038 14,650 2,102 95.1 Boston, MA 8 871,932 7,55
Slide 39: Life Science
Life Science As of December 31, 2019, 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 Bas
Slide 40: Life Science
Life Science Square feet in thousands LEASING ACTIVITY Annualized Our Tenant Leased Base Rent % Change in Improvements Leasing Costs Average Lease Retention Rate Square Feet Per Sq. Ft. Cash Rents per Sq. Ft. per Sq. Ft. Term (Months) Full Year Leased Square Feet as of September 30, 2019 7,760 $ 45.
Slide 41: Medical Office
Medical Office As of and for the quarter ended December 31, 2019, dollars and square feet in thousands PORTFOLIO BY MARKET(1) Square Feet On-campus(2) Off-campus(3) Total Property Occupancy MSA Count Investment Cash NOI % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-tenant Single-tena
Slide 42: Medical Office
Medical Office As of and for the quarter ended December 31, 2019, 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 Anchored(2) Adjacent(2) Off-Campus Total % of Total % Squar
Slide 43: Medical Office
Medical Office As of and for the quarter ended December 31, 2019, 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(
Slide 44: Other Wholly-owned
Other Wholly-owned As of and for the quarter ended December 31, 2019, dollars in thousands LEASED PROPERTIES Facility Facility (1) Certain operators in our hospital portfolio are Property Occupancy EBITDARM EBITDAR not required under their respective leases to Type/Operator Count Investment Cash NOI
Slide 45: Other Unconsolidated JVs
Other Unconsolidated JVs(1) As of and for the quarter ended December 31, 2019, dollars and square feet in thousands Other SHOP SFW SH Medical SELECTED FINANCIAL DATA AT 100% Total CCRC JV JVs JV U.K. JV Office Remaining Joint ventures' Investment $ 2,665,319 $ 1,524,372 $ 264,620 $ 816,327 $ — $ 53,
Slide 46: Other Unconsolidated JV Capital
Other Unconsolidated JV Capital Represents our pro rata share of unconsolidated JVs for the three and twelve months ended December 31, 2019, dollars in thousands UNCONSOLIDATED JV CAPITAL Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2019 FAD capital expenditures $ 2,649 $ 6,
Slide 47: Other CCRC JV
Other CCRC JV Dollars in thousands, except REVPOR CCRC JV 4Q18 1Q19 2Q19 3Q19 4Q19 FY2018 FY2019 Property count 15 15 15 15 15 15 15 Units 7,273 7,269 7,270 7,272 7,271 7,273 7,271 Occupancy % 85.7 85.8 85.7 85.1 85.8 85.8 85.6 REVPOR(1) $ 5,206 $ 5,208 $ 5,262 $ 5,243 $ 5,290 $ 5,156 $ 5,251 SHARE
Slide 48: 2020 Guidance
2020 Guidance Projected full year 2020, dollars in millions, except per share amounts Full Year 2020 Guidance (February 11, 2020) Net income, FFO and FFO as Adjusted per Share Guidance Additional 2020 Guidance Assumptions Diluted earnings per common share $0.70 - $0.76 Diluted NAREIT FFO per common
Slide 49: Financial Reporting Updates
Financial Reporting Updates In 1Q 2020 we plan to update several accounting policies and financial reporting items Topic Accounting Policy and Financial Reporting Description ● Align the definition of FAD, Cash NOI and Adjusted EBITDAre to reflect non-refundable entrance fee revenue on a GAAP amorti
Slide 50: Glossary
Glossary Adjusted Fixed Charge Coverage* Consolidated Gross Assets* Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental The carrying amount of total assets, excluding investments in and advances to our unconsolidated measure of liquidity and our ability to me
Slide 51: Glossary
Glossary Enterprise Gross Assets* Fixed Charges* Consolidated Gross Assets plus our pro rata share of total gross assets from our unconsolidated Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed JVs, after adding back accumulated depreciation and
Slide 52: Glossary
Glossary Net Debt* Real Estate Revenues* Enterprise Debt less the carrying amount of cash and cash equivalents as reported in our Real Estate Revenues include rental related revenues, tenant recoveries, resident fees and services consolidated financial statements and our pro rata share of cash and c
Slide 53: Glossary
Glossary Secured Debt Ratio* Enterprise Secured Debt divided by Enterprise Gross Assets. Secured Debt Ratio 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. Share of Uncons
Slide 54: Debt Ratios
Adjusted EBITDAre and Adjusted Debt Ratios Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2019 Net income (loss) $ 47,359 $ 60,061 Interest expense 58,120 225,619 Income tax expense (benefit) (5,679) (1
Slide 55: Debt Ratios
Debt Ratios As of and for the quarter ended December 31, 2019, dollars in thousands ENTERPRISE DEBT AND NET DEBT December 31, 2019 (1) Includes $93 million of commercial paper at December 31, Bank line of credit and commercial paper(1) $ 93,000 2019. Term loan 248,942 (2) Includes mortgage debt of $
Slide 56: 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 57: Patewood Hospital Greenville, SC
Patewood Hospital Greenville, SC 57 Returnto Return Return toTOC to TOC TOC
Slide 58: 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
Slide 59: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements 2201 Medical Plaza Nashville, TN & Risk Factors (concluded) and the renewal or rollover of existing leases; the Company’s or its counterparties’ ability to fulfill obligations, such as financing conditions and/or regulatory approval requirements, required to successfully c
Slide 60: 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 — Q4 2019 Earnings Presentation on 6ix