Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q1 2021 Earnings Presentation
52 slides from Healthpeak Properties's earnings presentation, May 4, 2021
Slide 1: Earnings Release and Supplemental Report First Quarter 2021
Watkins MOB Richmond, VA Acquired April 2021 Earnings Release and Supplemental Report cence oneal Healthpeak First Quarter 2021 PROPERTIES
Slide 2: Table of Contents
Hayden Research Campus Lexington, MA TABLE OF Contents Earnings Release Consolidated Financial Statements Overview Portfolio Summary Property Count Reconciliations Capitalization Indebtedness Investment Summary Developments and Redevelopments Capital Expenditures Portfolio Diversification Portfolio
Slide 3: Healthpeak Reports First Quarter 2021 Results
Healthpeak Reports First Quarter 2021 Results DENVER, May 4, 2021 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the first quarter ended March 31, 2021 FIRST QUARTER 2021 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS Net income of $0.27 per share, NAREIT FFO of $0.07 per share,
Slide 4: First Quarter Comparison
FIRST QUARTER COMPARISON Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 143,337 $ 0.27 $ 279,979 $ 0.54 NAREIT FFO, diluted 40,233 0.07 173,186 0.34. FFO as Adjusted, diluted
Slide 5: Senior Housing (SHOP and NNN) Dispositions
SENIOR HOUSING (SHOP AND NNN) DISPOSITIONS Continued progress on the sale of $4 billion of senior housing assets: . Cumulative gross proceeds from closed sales of $3.5 billion since July 2020 * 105 SHOP assets containing 11,228 units generating gross proceeds of $2.34 billion at a blended 2.9% annua
Slide 6: South San Francisco Land; Development Updates
SOUTH SAN FRANCISCO LAND In April, closed on the first phase of the previously announced acquisition of 12 acres of land in South San Francisco, California for $61 million in an off-market transaction. Healthpeak is under contract to acquire the remaining parcels for an additional $67.5 million. The
Slide 7: Company Information
COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Wednesday, May 5, 2021, at 10:00 a.m. Mountain Time (12:00 p.m. Eastern Time) to present its performance and operating results for the first quarter ended March 31, 2021. The conference call is accessible by dialing (888)
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited March 31, 2021 December 31, 2020 Assets Real estate: Buildings and improvements $ 11,149,249 $ 11,048,433 Development costs and construction in progress 642,879 613,182 Land 1,865,806 1,8
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) SS Three Months Ended March 31, 2021 2020 Revenues: Rental and related revenues $ 327,972 $ 282,317 Resident fees and services 116,128 91,780 Income from direct financing leases 2,163 3,
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) (1) This amount can be reconciled by combining the balances Three Months Ended from the corresponding line of the Consolidated Statements March 31, of Operations and the detailed financial information i
Slide 11: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (unaudited) Three Months Ended March 31, 2021 2020 FFO as Adjusted applicable to common shares $s 215,391 227,013 Amortization of stock-based compensation 4,364 3,987 Amortization of deferred financing costs 2,213 2,582 Straight
Slide 12: The Numbers
The Numbers Overview) As of and for the quarter ended March 31, 2021, dollars, square feet, and shares in thousands, except per share data 1021 —— - (1) Reconciliations, definitions, and important discussions regarding the Financial Metrics usefulness and limitations of the non-GAAP financial measur
Slide 13: Portfolio Summary
Portfolio Summar As of and for the quarter ended March 31, 2021, dollars in thousands Weighted Property Average Portfolio Portfolio Count Agel”) Investment Income Property Portfolio Life science 132 13 $ 6,986,235 $ 119,530 Medical office 278 24 5,173,918 101,156 CCRC 7 30 2,251,444 26,221 Other 7 2
Slide 14: Quarter NOI Summary
Quarter NOI Summar For the quarter ended March 31, 2021, dollars in thousands 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 Expenses SS Portfolio NOI Life science
Slide 15: Property Count Reconciliations
Count Reconciliations As of March 31, 2021 PROPERTY COUNT RECONCILIATION Medical Senior Housing Life Science _Office ccRC Other Triple-net SHOP Total Prior Quarter Total Property Count 140 281 7 19 41 98 596 Acquisitions = 1 = - - - 1 Assets sold - = - - (32) (49) (81) New developments 1 1 - - _ _ 2
Slide 16: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION March 31, 2021 Shares Value Total Value ‘Common stock (NYSE: PEAK) 538,886 S 3174 § 17,104,242 Convertible partnership (DownREIT) units 7,326 31,74 232,527 Total Market Equity 546,212 $ 17,336,769 Consol
Slide 17: Indebtedness: Debt Maturities
Indebtedness As of March 31, 2021, 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”) Term Loan? Amounts Rates % Amounts Rates % Debt Am
Slide 18: Indebtedness: Debt Structure
Indebtedness As of March 31, 2021, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 244,388 4 3.64 44 Floating rate 810 - 1.87 3.2 Combined $ 245,198 4 3.63 44 Unsecured Fixed rate 4,300,000 74 3.77 76 Floating rate 1,288,150 22 0
Slide 19: Investment Summary
Investment Summar As of and for the three months ended March 31, 2021, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended MSA Date Capacity ount _Property Type March 31, 2021 ACQUISITIONS” Westview Medical Plaza Nashville, TN February 48 Sq. Ft. 1 Medical office $ 13
Slide 20: Developments in Process
Develo @ ments In Process As of March 31, 2021, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total Actual / Estimated Project % of Total Occupancy Property Cost to Total at Capacity Project Project Project MSA Count CIP” Complete Completion (Sq. Ft.) Leased _Start Initial Sta
Slide 21: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment"”) As of March 31, 2021, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs . Property Property —_ Placed in Cost to Project completion Project” MsA Type Count Service CIP Complete Total
Slide 22: Capital Expenditures
Capital Expenditures!) For the three months ended March 31, 2021, dollars in thousands, except per unit/square foot Life Medical Senior Housing FIRST QUARTER Science Office ccrc Other Triple-net SHOP Total Portfolio at share Recurring capital expenditures $s 1,136 $ 1,311 $ 1,294 $ 621 $ —$ 1,873 $
Slide 23: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended March 31, 2021, dollars in thousands PORTFOLIO INCOME BY MSA Property a Medical Senior Housing MSA Count"? Life Science Office ccrc Other SHOP Total _% of Total San Francisco, CA 82 § 74,291 $ 836 $ —$ —$ —$ 2,797 $ 77,924 28 Boston, MA 15 22
Slide 24: Life Science
Life Science As of and for the quarter ended March 31, 2021, dollars and square feet in thousands INVESTMENTS” Portfolio Cash Property Portfolio (Adjusted) Square Occupancy Annualized MSA Count Investment NOI Feet % Base Rent % San Francisco, CA 78 $ 3,758,202 $ 74,291 5,175 96.7 60.5 Boston, MA 14
Slide 25: Life Science: Tenant Concentration
Life Science As of March 31, 2021, dollars and square feet in thousands, except Market Cap TENANT CONCENTRATION Weighted square Feot Base Rent Market Cap Lease Tor % of % of ANNUALIZED BASE RENT'? (in millions) in Years Amount Total, Amount _Total Amgen $ 143,704 22 684 7 $ 53,787 "1 Global Blood Th
Slide 26: Life Science: Lease Expiration Data
Life Science As of March 31, 2021, dollars and square feet in thousands LEASE EXPIRATION DATA Total San Francisco San Diego Boston Remaining Leased Leased Leased Leased Leased Square Annualized Square Annualized) Square = Annualized) Square Annualized) Square Annualized Year Feet % Base Rent" % Feet
Slide 27: Life Science: Lease Type
Life Science As of and for the quarter ended March 31, 2021, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego _ Remaining Total % of Total Triple Net” 277,526 93,816 70,104 14858 456,304 92.0 Base Year”! 22,552 11,368 4,835 - 38,756 78 Gross 226 - 9
Slide 28: Medical Office
Medical Office As of and for the quarter ended March 31, 2021, 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 / Muultitenant Single-tenant| Multi-tenant S
Slide 29: Medical Office Same-Store
As of and for the quarter ended March 31, 2021, dollars and square feet in thousands 1020 2020 3020 4020 1021 Property Count 250 250 250 250 250 Portfolio Investment $ 4,270,791 $ 4,286,380 $ 4,303,172 $ 4,328,497 $ 4,344,526 Square Feet 20,172 20,172 20,182 20,186 20,186 Occupancy % 92.2 92.3 92.2
Slide 30: Medical Office: Square Feet by Health System
Medical Office As of and for the quarter ended March 31, 2021, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Square Feet Weighted % Directly _ Average Leased by Remaining Credit Unaffiliated %of Health Lease Health System Rating On-Campus Adjacent) Anchored” Off-Campus Total _—‘Total ‘System
Slide 31: Medical Office: Lease Expiration Data
Medical Office As of and for the quarter ended March 31, 2021, 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” 20219 2,073 1
Slide 32: Medical Office: Leasing Activity
Medical Office As of and for the quarter ended March 31, 2021, square feet in thousands 1021 LEASING ACTIVITY ‘Annualized Tenant Leasing Trailing Twelve Leased Base Rent Per —% Chang Improvements Costs per Average Lease Month Retention Square Feet Sq.Ft. Cash Rents"? per Sq. Ft.2 ‘Sq. Ft. Term (Mont
Slide 33: Medical Office: Lease Type and Provider Specialty
Medical Office As of and for the quarter ended March 31, 2021, square feet in thousands LEASE TYPE PROVIDER SPECIALTY Leased Square Feet National Healthpeak Benchmark Unaffiliated Types of Specialties On-Campus Adjacent Anchored Off-Campus Total _% of Total Orthopedics 10% 4% Triple Net™ 11,351 558
Slide 34: CCRC
CCRC As of and for the quarter ended March 31, 2021, dollars in thousands, except REVPOR INVESTMENTS Portfolio Real Portfolio Property Net Portfolio Estate Revenues, NREF Portfolio Adjusted Occupan REVPOR NREF Cash Count Investment” excluding NREFS Amortization Cash Opex NOI Units A CCRC” Collection
Slide 35: CCRC Same-Store
CC R C Isame-Store As of and for the quarter ended March 31, 2021, dollars in thousands, except REVPOR SAME-STORE Sequential —_ Year-Over- 1020 2020 3020 4020 1021 Growth Year Growth Property count 2 2 2 2 2 = = Net Portfolio Investment” $ 229,452 233,883 $ 239,536 $ 243,719 246,355 1.1% 7.4% Units
Slide 36: Other: Sovereign Wealth Fund Senior Housing JV
(1) (2) (3) (4) (5) As of and for the quarter ended March 31, 2021, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 1020 2020 3020 4020 1021 Property count 19 19 19 19 19 Investment $ 420,944 419,821 $ 419,000 $ 420,699 421,567 Units 3,317 3,317 3,317 3,317 3,317
Slide 37: Discontinued Operations: Senior Housing Triple-net
Discontinued Operations} senior Housing Triple-net As of and for the quarter ended March 31, 2021, dollars in thousands, except REVPOR INVESTMENTS” Portfolio Portfolio Cash Occupans REVPOR Facilit Facilit Operator Investment (Adjusted) NOI Count Units % Triple-Net EBITDARMCFC _ EBITDAR CF Five Star
Slide 38: Discontinued Operations: SHOP
Discontinued Operations] shor As of and for the quarter ended March 31, 2021, dollars in thousands, except REVPOR INVESTMENTS” Portfolio _— Portfolio Cash REVPOR Property Count Investment —_ (Adjusted) NOI. 2) Units Occupancy %"” SHOP (AN) Operator Oakmont Senior Living 12 $ 576,838 $ 6,115 1,043 83
Slide 39: Discontinued Operations Reconciliation
Discontinued Operations | reconcitiation The results of discontinued operations through March 31, 2021, or the disposal date of each asset or portfolio of assets if they have been sold, are included within the "income (loss) from discontinued operations" line of the consolidated statements of operat
Slide 40: Reporting Updates
Effective 1021 we have enhanced our reporting as follows: Section Addition/Enhancement « Expanded the tenant concentration disclosure from ten to twenty tenants and added market cap, where available. Life Science « Expanded the lease expiration disclosure from five to ten years. « Added a page that
Slide 41: 2021 Guidance & Additional Items
Projected full year 2021, dollars in millions, except per share amounts 2021 Guidance & Additional Items Range of Outcomes" Feb Guidance for Market Backdrop CCRCs & SWF SH JV Acquisitions / Leverage Low End Occupancy inflection point during 30.2021 $700M Acquisitions / low 5x Net Debt to EBITDA $1.5
Slide 42: 2021 Guidance & Additional Items
2021 Guidance & Additional Items Projected full year 2021, dollars in millions, except per share amounts Range of Outcomes” | Feb Guidance for Updated Low End High End Items Amortization of stock-based compensation $19 Amortization of deferred financing costs $7 oH Straight-line rents ($25) ($30) Re
Slide 43: 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 44: Glossary
Glossary Enterprise Secured Debt* Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs. Enterprise Secured Debt is a supplemental measure of our financial position, which enables both management and investors to analyze our leverage and to compare our levera
Slide 45: Glossary
Glossary Net Debt to Adjusted EBITDAre* Net Debt divided by Adjusted EBITDAre is a supplemental measure of our ability to decrease our debt. Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations. Net Operating Income (“
Slide 46: Glossary
Glossary REVPOR Triple-net The 3-month average facility revenue per occupied unit, one quarter in arrears from the period presented. Facility revenue consists primarily of resident rents generated at triple-net communities, which are not included in our financial results. Facility revenues are deriv
Slide 47: Debt Ratios: Adjusted EBITDAre
Debt Ratios Adjusted EBITDAre and Adjusted Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended March 31, 2021 Net income (loss) Interest expense!” Income tax expense (benefit) Depreciation and amortization” Other depreciation and amortization Loss (gain) on
Slide 48: Debt Ratios
Debt Ratios As of and for the quarter ended March 31, 2021, dollars in thousands ENTERPRISE DEBT AND NET DEBT March 31, 2021 Bank line of credit and commercial paper $ 1,038,150 Term loan 249,243 Senior unsecured notes 4,255,697 Mortgage debt” 498,131 Consolidated Debt $ 6,041,221 Share of unconsoli
Slide 49: 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 THOMAS M. HERZOG Chief Executive Officer, Healthpeak Properties, Inc. CHRISTINE N. GARVEY Former Global Head of Corporate Real
Slide 50: Forward-Looking Statements & Risk Factors
Forward-Looking Statements & 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 Exchange Act of 1934, as amended.
Slide 51: Forward-Looking Statements (continued)
leases and mortgages 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 consummate acquisitions, dispositions, transitions, developments, r
Slide 52: Corporate Headquarters, Denver, CO
Corporate HO, 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. {ll healthpeak.com
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