Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Investor Presentation (November 2024)
28 slides from Healthpeak Properties's investor presentation, Nov 18, 2024
Slide 1: Investor Presentation
Investor Presentation November 18, 2024 The Hangar on Vantage Campus South San Francisco, CA
Slide 2: Disclaimers
Disclaimers This Healthpeak Properties, Inc. (the “Company”) presentation is solely for your information, delays, and lower profits than expected; the ability of the hospitals on whose campuses our otherwise be in the interest of our stockholders; conflicts of interest between the interests of is su
Slide 3: About Healthpeak
About Healthpeak Healthpeak is a leading owner, operator, and developer of real estate for healthcare discovery and delivery. Our real estate is uniquely positioned to benefit from the aging population and universal desire for better health with purpose-built lab campuses and a high-quality outpatie
Slide 4: Why Invest in Healthpeak
Why Invest in Healthpeak Well-covered ~5.8% dividend yield + 4.5% same-store growth Compelling $60M future Cash NOI upside from marquee lab dev/redev campuses plus at least $10M additional merger Value and synergies in 2025+ Growth Under-levered balance sheet with $500M to $1B of dry powder fo
Slide 5: Under-Levered Balance Sheet with $500M to $1B of Dry Powder for Accretive Investments
Under-Levered Balance Sheet with $500M to $1B of Dry Powder for Accretive Investments Well-laddered maturities and BBB+ / Baa1 (stable) credit rating Key Credit Metrics(1) Debt Maturities ($ in billions) $2.5 5.1x ~$3B $2.0 Net Debt to EBITDAre Liquidity $1.6 $1.5 $1.5 0% 4.4 Years $1.1 $1.2 $0.7 $1
Slide 6: Double Digit Earnings Growth Over the Past Three Years
Double Digit Earnings Growth Over the Past Three Years Earnings growth driven by development earn-in, property performance, merger synergies, and more efficient G&A FFO as Adjusted per Share(1) AFFO per Share(1) $1.58 $1.81 +12% +17% $1.35 $1.61 2021 2024 2021 2024 Investor Presentation – November 2
Slide 7: Increased Earnings Guidance 4 Times in 2024
Increased Earnings Guidance 4 Times in 2024 Original 2024 Guidance(1) Current 2024 Guidance Midpoint Variance FFO as Adjusted $1.76 $1.81 + $0.05 AFFO $1.53 $1.58 + $0.05 Same-Store Growth 3.0% 4.50% + 150 bps 1) Represents midpoint of Healthpeak’s original 2024 Outlook Guidance provided on 2/8/2024
Slide 8: Executed Leases to Capture >50% of $60M Cash NOI Upside from Marquee Development and Redevelopment Campuses
Executed Leases to Capture >50% of $60M Cash NOI Upside from Marquee Development and Redevelopment Campuses Potential Upside Leased / Committed Upside % Upside (1) 2025+ NOI 2025+ NOI Leased or Committed(2) Recent Updates(3) Ŷ In October, signed a 205K SF Portside +$25M +$19M ~75% lease with an exis
Slide 9: Outperforming Merger Synergy Targets
Outperforming Merger Synergy Targets Accelerated internalization and higher profit margins resulted in +$10 million of additional earnings benefit during 2024 Property Management Internalization Update 3Q Revised 2024 Target + $50M Market SF (M) Completion Bay Area 6.2 Feb 2024 San Diego 2.2 Feb 202
Slide 10: Lab Overview
Lab Overview
Slide 11: We Continue to Outperform
We Continue to Outperform Year to Date Results: 1.7M SF of Leasing +7% Cash Rent MTM 96% Occupancy Tenant Priority Checklist Healthpeak Competitive Advantage Exclusively located in top markets / submarkets: PrimeLocations Prime Locations ~70% of ABR in South San Francisco, Torrey Pines, and Cambridg
Slide 12: Strategically Located in Long-Established Life Science Submarkets
Strategically Located in Long-Established Life Science Submarkets Well-occupied portfolio with upside from lease-up of South San Francisco and Sorrento Mesa re/developments Percent of Total Occupancy Lab Market(1) Submarkets Healthpeak ABR Total SF Operating | Total(2) South San Francisco 19.4% 5,03
Slide 13: Platform and Footprint to Drive Leasing and Capture Market Share
Platform and Footprint to Drive Leasing and Capture Market Share Key Healthpeak Statistics Select 2024 Lease Executions Existing Quarter Tenant SF Tenant Signed Campus Tenant Type Total SF Increase ~200 Existing Tenants 4Q Portside Private Life Science 205,000 ~150,000 4Q Vantage Private Biotech 63,
Slide 14: Biotech Capital Markets Activity Has Increased Significantly
Biotech Capital Markets Activity Has Increased Significantly Increased capital raising is having a direct and positive impact on Healthpeak’s leasing activity Biotech Capital Raising 2023 vs 2024 Year-Over-Year Increase $60B $51B Follow-Ons Venture Capital $3B +50% increase +63% +30% $9B $34B $2B $3
Slide 15: Healthpeak Leasing Activity Has Accelerated
Healthpeak Leasing Activity Has Accelerated 2024 leasing activity has increased significantly, Healthpeak is capturing market share, and the pipeline remains strong Lab Lease Executions 2023 vs 2024 Key YTD 2024 Lab Leasing Statistics 2M 1.7M SF 1.7M SF 813K SF | 7% +145% Lease Executions Renewals |
Slide 16: New Supply is Declining Precipitously with Essentially NO New Starts
New Supply is Declining Precipitously with Essentially NO New Starts The supply / demand environment is set up to improve significantly as we head into 2025+ Vacant / Non-Pre-Leased Lab Deliveries(1) SF in millions 20M 16M SF 75% 9M SF decrease 4M SF 4M SF 0.5M SF 0M SF 0M 2022 2023 2024 2025 2026 2
Slide 17: Limited 2025 & 2026 Lab Lease Maturities
Limited 2025 & 2026 Lab Lease Maturities The majority of 2025 leasing requirements are either under LOI, in active discussions, or are anticipated redevelopments 2025 Lab Lease Expirations(1) 2026 Lab Lease Expirations(1) 786K SF 207K SF under LOI 115K SF in active discussions 448K SF 172K SF alread
Slide 18: Outpatient Medical Overview
Outpatient Medical Overview
Slide 19: Unmatched Outpatient Medical Portfolio & Platform
Unmatched Outpatient Medical Portfolio & Platform Best-in-class portfolio and platform differentiate Healthpeak 527 38M Top 10 Outpatient Medical MSAs (Total Area in SF) Properties SF Dallas, TX 4.7M 92% 5.6 Year Houston, TX 3.7M Occupancy Remaining Lease Term Nashville, TN 2.0M Leading Scale & 89%
Slide 20: Superior Relationships with Leading Health Systems in Each Local Market
Superior Relationships with Leading Health Systems in Each Local Market Broad and deep health system relationships create outsized opportunities for internal and external growth Anchored Assets(1) 68 Healthpeak Relationships Within Top 10 OM Markets(2) Leased Area (SF) 5.0M Anchored Assets 37 Seattl
Slide 21: Development & Loan Opportunities Create Pipeline for External Growth
Development & Loan Opportunities Create Pipeline for External Growth Health system relationships provide proprietary opportunities for investment in trophy quality development assets Northside Medical Buford Galen Aurora Atlanta, GA Denver, CO Delivered: 2Q 2024 Estimated: 2Q 2025 Investment $38M In
Slide 22: Favorable Sector Fundamentals
Favorable Sector Fundamentals Supply and demand fundamentals provide favorable backdrop for accelerating growth in rent and NOI CMS Projections of National Health Expenditures Growth of Visits by Insured Patients (1Q18 Baseline) $8T $7.7T 125 Outpatient +17% $4T 100 Inpatient (15%) $0T 75 2018 2020
Slide 23: Recent Dispositions Enhance Portfolio Quality
Recent Dispositions Enhance Portfolio Quality Sale of 72 non-core assets for $876M fortifies Healthpeak’s leading OM portfolio % Leased to Health Systems Average Property Size (SF) On Campus / Affiliated 70% 72k 96% Improved 45k 57% Portfolio Quality 88% OM Dispositions Retained OM Assets OM Disposi
Slide 24: CommonSpirit Renewal Exceeded Street Expectations
CommonSpirit Renewal Exceeded Street Expectations Discussion Lease KPIs & Maturity Schedule Ŷ In July 2024, Healthpeak executed an early lease renewal with CommonSpirit, extending the entirety of the Company’s 2M square foot relationship Ƒ Prior to this extension, 80% of related leases were due to e
Slide 25: Appendix: Reconciliation of Certain Non-GAAP Financial Measures
Appendix: Reconciliation of Certain Non-GAAP Financial Measures
Slide 26: 2024 Current Guidance Reconciliation
2024 Current Guidance Reconciliation(1) On November 18, 2024, Healthpeak Properties, Inc. (the “Company”) increased its full year 2024 guidance ranges for diluted earnings per common share, diluted Nareit FFO per common share, diluted FFO as Adjusted per common share, diluted AFFO per common share,
Slide 27: 2024 Current Guidance Reconciliation
2024 Current Guidance Reconciliation(1) For the projected year 2024 Total Portfolio Net Income $ 301 $ 315 Real estate related depreciation and amortization 1,050 1,050 Loss (gain) on sales of depreciable real estate, net (188) (188) Other impairments (recoveries) and other losses (gains), net 11 11
Slide 28: Healthpeak
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