Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q1 2022 Earnings Presentation
44 slides from Healthpeak Properties's earnings presentation, May 3, 2022
Slide 1: Earnings Release and Supplemental Report First Quarter 2022
SSSR eye eel LLL The Boardwalk Ameni Cr San Diego, CA apse — A. Earnings Release == and Supplemental Report Van Healthpeak PROPERTIES First Quarter 2022
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 7 Overview 1 Portfolio Summary 12 Property Count Reconciliations 14 Capitalization 15 Indebtedness 16 Investment Summary 18 Developments and Redevelopments 19 Capital Expenditures 21 Portfolio Diversification 22 Portfolio Life Sc
Slide 3: Healthpeak Properties Reports First Quarter 2022 Results
Healthpeak Properties Reports First Quarter 2022 Results DENVER, May 3, 2022 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the first quarter ended March 31, 2022. FIRST QUARTER 2022 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS: - Net income of $0.13 per share, Nareit FFO of $
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: Board Leadership Updates - Kathy Sandstrom to Serve as Vice Chair
BOARD LEADERSHIP UPDATES - KATHY SANDSTROM TO SERVE AS VICE CHAIR OF THE BOARD In connection with the Board of Directors’ annual review of its overall composition and leadership, Kathy Sandstrom was appointed as independent Vice Chair. The Board also appointed Ms. Sandstrom as Chair of the Nominatin
Slide 6: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements contained in this release 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 i
Slide 7: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data March 31, 2022 December 31, 2021 Assets Real estate: Buildings and improvements $ 12,368,124 $ 12,025,271 Development costs and construction in progress 739,451 877,423 Land 2,706,909 2,603,964 Accu
Slide 8: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data SS Three Months Ended March 31, 2022 2021 Revenues: Rental and related revenues $ 370,150 $ 327,972 Resident fees and services 121,560 116,128 Income from direct financing leases 1,168 2,163 Interes
Slide 9: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended March 31, 2022 2021 Net income (loss) applicable to common shares $ 69,637 $ 143,337 Real estate related depreciation and amortization 177,733 157,538 Healthpeak’s share of real estate related de
Slide 10: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands SS , Three Months Ended March 31, 2022 2021 FFO as Adjusted applicable to common shares $ 234,818 $ 215,391 Amortization of stock-based compensation 4,721 4,364 Amortization of deferred financing costs 2,689 2,213 Straightline r
Slide 11: The Numbers - Overview
The Numbers Overview) As of and for the quarter ended March 31, 2022, dollars, square feet, and shares in thousands, except per share data 1022 Financial Metrics Diluted earnings per common share $0.13 Diluted Nareit FFO per common share $0.45 Diluted FFO as Adjusted per common share $0.43 Dividends
Slide 12: Portfolio Summary
Portfolio Summary") As of and for the quarter ended March 31, 2022, dollars in thousands, excludes discontinued operations Property Weighted Portfolio Portfolio Count Average Age” _Investment Income Property Portfolio Life science 137 14$ 7,570,499 $ 132,664 PORTFOLIO INCOME“ Medical office 294 24 6
Slide 13: Quarter NOI Summary
Quarter NOI Summar For the quarter ended March 31, 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 Expe
Slide 14: Property Count Reconciliations
Count Reconciliations As of March 31, 2022 PROPERTY COUNT RECONCILIATION Medical Life Science Office cCRC Other Total Prior Quarter Total Property Count 150 300 15 19 484 Acquisitions - 2 - - 2 Assets sold (1) (1) = = (2) Planned demolition - a) - - (1) Current Quarter Total Property Count 149 300 1
Slide 15: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION March 31, 2022 Shares Value Total Value Common stock (NYSE: PEAK) 539,524 3433 $ 18,521,859 Convertible partnership (DownREIT) units 7,317 34.33 251,193 Total Market Equity 546,841 $ 18,773,052 Consolida
Slide 16: Indebtedness - Debt Maturities
Indebtedness As of March 31, 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 & Commercial Consolidated Paper") Amounts Rates %| Amounts Rates % Debt Amounts”) ~—
Slide 17: Indebtedness - Debt Structure
Indebtedness As of March 31, 2022, dollars in thousands DEBT STRUCTURE” Weighted Average Years to Balance °% of Total Rates % Maturity Secured Fixed rate $ 373,696 6 417 3.6 Floating rate 14,613 - 3.54 27 Combined $ 388,309 6 4.15 3.5 Unsecured Fixed rate 4,700,000 73 3.39 69 Floating rate” 1,330,81
Slide 18: Investment Summary
Investment Summar As of and for the three months ended March 31, 2022, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended MSA Date Capacity Count _ Property Type March 31, 2022 ACQUISITIONS 67 Smith Place land parcel Boston, MA January - - Lifescience $ 72,000 Vista
Slide 19: Developments In Process
Develo @ ments In Process As of March 31, 2022, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total Project % of Total Property Cost to Total at Capacity Project Project Initial Project MSA fount CIP? Complete”) Completion (Sq. Ft.) Leased Start Occupancy™ Life Science The Boa
Slide 20: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment As of March 31, 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 Type Count cIP Complete" Total Start Date? Wes
Slide 21: Capital Expenditures
Capital Expenditures!) For the three months ended March 31, 2022, dollars in thousands, except per unit/square foot, excludes discontinued operations FIRST QUARTER Life Science Medical Office ccRC Other Total Portfolio at share Recurring capital expenditures $ 1,315 § 2,703 $ 1,958 $ 703 $ 6,680 Ten
Slide 22: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended March 31, 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 80 $ 77,523 $ 875 $ — $ —$ 78,398 28 Boston, MA.
Slide 23: Life Science
Life Science As of and for the quarter ended March 31, 2022, dollars and square feet in thousands INVESTMENTS” Portfolio Cash Property Portfolio (Adjusted) Square Occupancy Annualized MSA Count Investment Nol Feet % Base Rent % San Francisco, CA 79 $ 3,889,953 $ 77,523 5,444 98.1 59.3 Boston, MA 19
Slide 24: Life Science - Tenant Concentration
Life Science As of March 31, 2022, dollars and square feet in thousands TENANT CONCENTRATION Weighted — squareFeet_ Base Rent” Market Rem: ig Cap (in Lease Term % of % of millions) in Years Amount Total Amount Total Amgen $ 134,701 1.6 507 5 $ 43,024 8 Janssen Biopharma - subsidiary of Johnson & Joh
Slide 25: Life Science - Lease Expiration Data
Life Science As of March 31, 2022, dollars and square feet in thousands 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 Yo Base Rent"? % Feet
Slide 26: Life Science - Lease Type and Ownership
Life Science As of and for the quarter ended March 31, 2022, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego _ Remaining Total % of Total Triple-Net™ $ 313,526 $ 111,242 $ 84,984 $ 13,539 $§ 523,291 92.2 Base Year” 22,122 16,648 3,556 - 42,326 78 G
Slide 27: Medical Office
Medical Office As of and for the quarter ended March 31, 2022, dollars and square feet in thousands PORTFOLIO BY MARKET” ‘Square Feet On-campus Off-campus” Total Portfolio Cash Property Portfolio (Adjusted) Occupancy MSA Count _ Investment Nol % Multitenant Single-tenant| Multi-tenant Single-tenant|
Slide 28: Medical Office Same-Store
Med ical Office Same As of and for the quarter ended March 31, 2022, dollars and square feet in thousands SAME-STORE 1021 2021 3021 4021 1022 Property Count 249 249 249 249 249 Portfolio Investment $ 4,584,898 $ 4,605,154 $ 4,631,434 $ 4,669,535 $ 4,695,361 Square Feet 20,340 20,331 20,341 20,339 20
Slide 29: Medical Office - Square Feet by Health System
Medical Office As of and for the quarter ended March 31, 2022, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Square Feet Weighted % Directly _ Average Leased by Remaining Property Credit Unaffiliated %of Health Lease Health System unt Rating On-Campus Adjacent” Anchored" Off-Campus Total ‘To
Slide 30: Medical Office - Lease Expiration Data
Medical Office As of and for the quarter ended March 31, 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”) 2022) 2,115 98 $
Slide 31: Medical Office - Lease Type and Provider Specialty
Medical Office As of and for the quarter ended March 31, 2022, square feet in thousands LEASE TYPE PROVIDER SPECIALTY TT Leased Square Feet National Healthpeak Benchmark! Unaffiliated jalti On-Campus Adjacent Anchored Off-Campus Total — % of Total Types of Specialties > Triple-Net™ 71,425 632 1,867
Slide 32: CCRC
CCRC As of and for the quarter ended March 31, 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 Li
Slide 33: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended March 31, 2022, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 1021 2021 3021 4021 1022 Growth Year Growth Property count 15 18 18 15 18 = = Net Portfolio Investment” $ 1,401,030 $ 1,416,858 $ 1,432,162 $ 1,458,656 $ 1,474,262
Slide 34: Other - Sovereign Wealth Fund Senior Housing JV
As of and for the quarter ended March 31, 2022, dollars in thousands SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE Includes government grants under the CARES Act for 1021, 2021, 3021, 4021 and 1022 of $0.2 million, $0.6 million, $0.0 million, $0.7 million, and $0.3 million, respectively. Excludes
Slide 35: 2022 Guidance & Additional Items
2022 Guidance & Additional Items Projected full year 2022, dollars in millions, except per share amounts Full Year 2022 Guidance (May 3, 2022) 2022 Guidance Diluted earnings per common share $0.58 - $0.64 Diluted Nareit FFO per common share $1.70 -$1.76 Diluted FFO as adjusted per common share $1.68
Slide 36: 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 37: 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 38: Glossary
Glossary Redevelopment Properties that incur major capital expenditures to significantly improve, change the use, or reposition the property pursuant to a formal redevelopment plan. Newly completed redevelopments, are considered Stabilized at the earlier of lease-up (typically when the tenant(s) con
Slide 39: Debt Ratios - Adjusted EBITDAre and Fixed Charge Coverage
Debt Ratios Adjusted EBITDAre and Adjusted Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended March 31, 2022 Net income (loss) Interest expense Income tax expense (benefit)'” Depreciation and amortization Other depreciation and amortization Loss (gain) on s
Slide 40: Debt Ratios
Debt Ratios As of and for the quarter ended March 31, 2022, dollars in thousands ENTERPRISE DEBT AND NET DEBT March 31, 2022 Bank line of credit and commercial paper $ 1,330,813 Senior unsecured notes 4,654,056 Mortgage debt 350,713 Consolidated Debt $ 6,335,582 Share of unconsolidated JV mortgage d
Slide 41: Company Information
COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT Chairman of the Board, Healthpeak Properties, Inc. Former General Counsel, U.S. Securities and Exchange Commission KATHERINE M. SANDSTROM Vice Chair of the Board, Healthpeak Properties, Inc. Former Senior Managing Director, Heitman LLC THOMA
Slide 42: Forward-Looking Statements
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 43: Risk Factors
or changes to, governmental reimbursement programs such as Medicare or Medicaid; legislation to address federal government operations and administration decisions affecting the Centers for Medicare and Medicaid Services; our participation in the CARES Act Provider Relief Fund and other Covid-related
Slide 44: 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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