Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q4 2023 Earnings Presentation
50 slides from Healthpeak Properties's earnings presentation, Feb 9, 2024
Slide 1: Earnings Release and Supplemental Report
Nexus on Grand South San Francisco, CA Earnings Release and Supplemental Report ___________________________________________________________________ Fourth Quarter 2023
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 9 Overview 13 Portfolio Summary 14 Property Count Reconciliations 17 Capitalization 18 Indebtedness 19 Investment Summary 21 Developments and Redevelopments 22 Capital Expenditures 24 Portfolio Diversification 25 Portfolio Lab 26
Slide 3: Fourth Quarter and Year Ended 2023 Results
Healthpeak Properties Reports Fourth Quarter and Year Ended 2023 Results DENVER, February 8, 2024 - Healthpeak Properties, Inc. (NYSE: PEAK), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, today announced results for the fourth quarter and full-year en
Slide 4: Fourth Quarter and Full Year Comparison
FOURTH QUARTER COMPARISON Three Months Ended Three Months Ended December 31, 2023 December 31, 2022 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income, diluted $ 70,787 $ 0.13 $ 6,388 $ 0.01 Nareit FFO, diluted 263,810 0.48 192,158 0.35 FFO as Adjusted, diluted 252
Slide 5: Callan Ridge Lab Campus Joint Venture Sale
CALLAN RIDGE LAB CAMPUS JOINT VENTURE SALE As previously announced, in January 2024, Healthpeak formed a new strategic joint venture with Breakthrough Properties (“Breakthrough”) through a sale of a 65% interest in Healthpeak’s fully leased Callan Ridge lab campus in the Torrey Pines submarket of Sa
Slide 6: 2024 Outlook
2024 OUTLOOK For full year 2024, we have established the following outlook ranges, which are inclusive of the impact from the Physicians Realty Trust merger: • Diluted earnings per common share of $0.07 – $0.13 • Diluted Nareit FFO per share of $1.54 – $1.60 • Diluted FFO as Adjusted per share of $1
Slide 7: 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 8: Additional Information and Where to Find It
ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed transaction, on December 15, 2023, Healthpeak and Physicians Realty Trust filed with the SEC a registration statement on Form S-4 containing a joint proxy statement/prospectus and other documents regarding the proposed trans
Slide 9: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data December 31, 2023 December 31, 2022 Assets Real estate: Buildings and improvements $ 13,329,464 $ 12,784,078 Development costs and construction in progress 643,217 760,355 Land and improvements 2,64
Slide 10: 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, 2023 2022 2023 2022 Revenues: Rental and related revenues $ 412,332 $ 392,245 $ 1,631,805 $ 1,541,775 Resident fees and services 136,341 125,8
Slide 11: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) applicable to common shares $ 70,787 $ 6,388 $ 304,284 $ 497,792 Real estate related depreciation and amortization 188,5
Slide 12: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands Three Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 FFO as Adjusted applicable to common shares $ 250,261 $ 236,473 $ 978,306 $ 940,933 Stock-based compensation amortization expense 3,513 1,903 14,480 16,
Slide 13: Overview
The Numbers Overview(1) As of and for the quarter and year ended December 31, 2023, dollars, square feet, and shares in thousands, except per share data (1) Reconciliations, definitions, and important discussions 4Q23 Full Year 2023 regarding the usefulness and limitations of the non-GAAP Financial
Slide 14: Portfolio Summary
Portfolio Summary As of and for the quarter ended December 31, 2023, dollars in thousands Property Weighted Portfolio Portfolio Count Average Age(1) Investment Income Property Portfolio PORTFOLIO INCOME Lab 131 14 $ 8,359,085 $ 157,805 Outpatient Medical 294 24 6,401,183 114,432 CCRC(2) 15 32 2,387,
Slide 15: Quarter NOI Summary
Quarter NOI Summary For the quarter ended December 31, 2023, 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 Lab $ 22
Slide 16: Full Year NOI Summary
Full Year NOI Summary For the twelve months ended December 31, 2023, dollars in thousands PORTFOLIO NOI SUMMARY Portfolio NOI SS Portfolio NOI Portfolio Real Portfolio SS Portfolio Estate Operating SS Portfolio Real Operating SS Portfolio Revenues Expenses Portfolio NOI Estate Revenues Expenses NOI
Slide 17: Property Count Reconciliations
Property Count Reconciliations As of December 31, 2023 PROPERTY COUNT RECONCILIATION Outpatient Lab Medical CCRC Other Total Prior Quarter Total Property Count 146 295 15 19 475 New Developments — 2 — — 2 Current Quarter Total Property Count 146 297 15 19 477 Assets in Development (4) (3) — — (7) Re
Slide 18: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2023 Shares Price Total Value Common stock (NYSE: PEAK) 547,156 $ 19.80 $ 10,833,689 Convertible partnership (DownREIT) units 7,218 19.80 142,916 Total Market Equity 554,374 $ 10,976,605 Con
Slide 19: Indebtedness: Debt Maturities
Indebtedness As of December 31, 2023, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Share of Unconsolidated JV Senior Unsecured Notes Mortgage Debt Debt Enterprise Debt Bank LOC, Commercial Consolidated Paper(1) Term Loan(2) Amounts Rates % Amounts Rates % De
Slide 20: Indebtedness: Debt Structure and Covenants
Indebtedness As of December 31, 2023, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 280,233 4 4.45 2.5 Floating rate 14,755 — 8.44 1.0 Combined $ 294,988 4 4.65 2.4 Unsecured Fixed rate(1) 5,950,000 85 3.67 5.5 Floating rate(2)
Slide 21: Investment Summary
Investment Summary As of and for the year ended December 31, 2023, dollars and square feet in thousands INVESTMENT SUMMARY Capacity Property Three Months Ended Twelve Months Ended MSA Date (Sq. Ft.) Count Property Type December 31, 2023 December 31, 2023 ACQUISITIONS 60 Loomis land parcel Boston, MA
Slide 22: Developments In Process
Developments In Process As of December 31, 2023, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total Estimated Project % of Total Projected Property Cost to Total at Capacity Project Initial Stabilized Project MSA Count CIP(1) Complete(1) Completion (Sq. Ft.) Leased Occupancy(
Slide 23: Redevelopments and Land Held for Development
Redevelopments and Land Held for Development As of December 31, 2023, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property Cost to Estimated Estimated Project(1) MSA Property Type Count CIP Complete(2) Total Completion Date
Slide 24: Capital Expenditures
(1) Capital Expenditures For the three and twelve months ended December 31, 2023, dollars in thousands, except per unit/square foot Outpatient FOURTH QUARTER Lab Medical CCRC Other Total Portfolio at share Recurring capital expenditures $ 6,678 $ 16,015 $ 12,333 $ 617 $ 35,643 Tenant improvements -
Slide 25: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended December 31, 2023, dollars in thousands PORTFOLIO INCOME BY MSA Property Outpatient MSA Count(1) Lab Medical CCRC Other Total % of Total San Francisco, CA 84 $ 93,349 $ 993 $ — $ — $ 94,342 30 Boston, MA 21 37,114 740 — — 37,853 12 San Diego,
Slide 26: Lab
Lab As of and for the quarter ended December 31, 2023, dollars and square feet in thousands INVESTMENTS(1) Portfolio Cash Total Property Portfolio (Adjusted) Square Occupancy Annualized MSA Count Investment NOI Feet % Base Rent % San Francisco, CA 83 $ 4,557,969 $ 93,349 5,610 96.4 59.9 Boston, MA 2
Slide 27: Lab: Tenant Concentration
Lab As of December 31, 2023 TENANT CONCENTRATION(1) Annualized Weighted Leased Square Feet Base Rent(3) ANNUALIZED BASE RENT(2) Cash and Average Liquid Remaining % of % of Market Cap Investments Lease Term Amount (in Total Amount (in Total Parent Name (in millions) (in millions)(2) in Years thousand
Slide 28: Lab: Lease Expiration Data
Lab As of December 31, 2023, dollars and square feet in thousands LEASE EXPIRATION DATA Total San Francisco Boston San Diego Remaining(1) Leased Leased Leased Leased Leased Square Annualized Square Annualized Square Annualized Square Annualized Square Annualized Year Feet % Base Rent(2) % Feet Base
Slide 29: Lab: Leasing Activity
Lab As of December 31, 2023, square feet in thousands, presented at 100% 4Q23 LEASING ACTIVITY Leased Annualized Tenant Trailing Twelve Square Base Rent % Change in Improvements Leasing Costs Average Lease Month Retention Feet Per Sq. Ft. Cash Rents(1)(2) per Sq. Ft.(3)(4) per Sq. Ft.(3)(4) Term (Mo
Slide 30: Lab: Lease Type and Ownership
Lab As of and for the quarter ended December 31, 2023, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego Remaining Total % of Total Triple-Net(1) $ 350,106 $ 130,693 $ 91,943 $ 6,780 $ 579,521 93.3 Base Year(2) 21,051 17,181 2,459 — 40,690 6.5 Gross(
Slide 31: Outpatient Medical: Portfolio by Market
Outpatient Medical As of and for the quarter ended December 31, 2023, dollars and square feet in thousands PORTFOLIO BY MARKET(1)(2) Total Square Feet On-campus Off-campus(3) Total Portfolio Cash Property Portfolio (Adjusted) Occupancy MSA Count Investment NOI % Multi-tenant Single-tenant Multi-tena
Slide 32: Outpatient Medical Same-Store
Outpatient Medical Same-Store As of and for the quarter ended December 31, 2023, dollars and square feet in thousands SAME-STORE Year-Over- 4Q22 1Q23 2Q23 3Q23 4Q23 Year Growth Property Count 280 280 280 280 280 — Portfolio Investment $ 5,807,062 $ 5,844,114 $ 5,874,574 $ 5,911,347 $ 5,959,055 Squar
Slide 33: Outpatient Medical: Square Feet by Health System
Outpatient Medical As of December 31, 2023, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Total Square Feet % Weighted Directly Average % of Total Leased Remaining Property Credit Unaffiliated Outpatient by Health Lease Health System MSA Count Rating On-Campus Adjacent(1) Anchored(1) Off-Cam
Slide 34: Outpatient Medical: Lease Expiration Data
Outpatient Medical As of and for the quarter ended December 31, 2023, dollars and square feet in thousands LEASE EXPIRATION DATA(1) Total On-Campus Off-Campus Leased Annualized Leased Annualized Leased Annualized Year Square Feet % Base Rent(2) % Square Feet Base Rent(2) Square Feet Base Rent(2) 202
Slide 35: Outpatient Medical: Leasing Activity
Outpatient Medical As of December 31, 2023, square feet in thousands, presented at 100% 4Q23 LEASING ACTIVITY Annualized Tenant Leasing Trailing Twelve Leased Base Rent Per % Change in Improvements Costs per Average Lease Month Retention Square Feet Sq. Ft. Cash Rents(1) per Sq. Ft.(2) Sq. Ft.(2) Te
Slide 36: Outpatient Medical: Lease Type and Specialty
Outpatient Medical As of and for the quarter ended December 31, 2023, square feet in thousands LEASE TYPE PROVIDER SPECIALTY Leased Square Feet National Healthpeak Benchmark(4) Unaffiliated Types of Specialties On-Campus Adjacent Anchored Off-Campus Total % of Total Orthopedics 10% 4% Triple-Net(1)
Slide 37: CCRC
CCRC As of and for the quarter ended December 31, 2023, dollars in thousands, except REVPOR INVESTMENTS Portfolio Real Portfolio Property Net Portfolio Estate Revenues, NREF Portfolio Adjusted Occupancy REVPOR NREF Cash Count Investment(1) excluding NREFS Amortization Cash Opex NOI Units % CCRC Coll
Slide 38: CCRC Same-Store
CCRC Same-Store As of and for the quarter ended December 31, 2023, dollars in thousands, except REVPOR SAME-STORE Year-Over- 4Q22 1Q23 2Q23 3Q23 4Q23 Year Growth Property count 15 15 15 15 15 — Net Portfolio Investment $ 1,498,292 $ 1,514,431 $ 1,533,060 $ 1,541,511 $ 1,570,388 Units 7,183 7,107 7,1
Slide 39: Other
Other As of and for the quarter ended December 31, 2023, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE Year-Over-Year 4Q22 1Q23 2Q23 3Q23 4Q23 Growth Property count 19 19 19 19 19 — Investment $ 464,068 $ 465,707 $ 467,765 $ 470,299 $ 471,413 Units 3,354 3,354
Slide 40: 2024 Outlook Information
(1) 2024 Outlook Information Projected full year 2024, dollars in millions, except per share amounts FY 2024 Outlook February 8, 2024 2024 Outlook Ranges and Supplemental Information(1) Diluted earnings per common share $0.07 - $0.13 Diluted Nareit FFO per common share $1.54 - $1.60 Diluted FFO as a
Slide 41: Glossary
Glossary Adjusted Fixed Charge Coverage* Direct Financing Lease (“DFL”) Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental Lease for which future minimum lease payments are recorded as a receivable and the difference measure of liquidity and our ability to m
Slide 42: Glossary
Glossary Financial Leverage* Net Operating Income (“NOI”) and Cash (Adjusted) NOI* Enterprise Debt divided by Enterprise Gross Assets. Financial Leverage is a supplemental measure of our NOI is defined as real estate revenues (inclusive of rental and related revenues, resident fees and financial pos
Slide 43: Glossary
Glossary Portfolio Real Estate Revenues* and Portfolio Cash Real Estate Revenues* Same-Store (“SS”)* Portfolio Real Estate Revenues and Portfolio Cash Real Estate Revenues are non-GAAP supplemental Same-Store NOI and Cash (Adjusted) NOI information allows us to evaluate the performance of our measur
Slide 44: Debt Ratios: Adjusted EBITDAre and Fixed Charge Coverage
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, 2023 December 31, 2023 Net income (loss) $ 75,395 $ 334,757 Interest expense 52,784 200,331 Income tax expense (benefit) (11,842)
Slide 45: Debt Ratios
Debt Ratios As of and for the quarter ended December 31, 2023, dollars in thousands FINANCIAL LEVERAGE December 31, 2023 Enterprise Debt $ 6,916,205 Enterprise Gross Assets 19,959,484 Financial Leverage 34.7% SECURED DEBT RATIO December 31, 2023 Enterprise Secured Debt $ 296,003 Enterprise Gross Ass
Slide 46: Company Information
COMPANY Information BOARD OF DIRECTORS KATHERINE M. SANDSTROM CHRISTINE N. GARVEY Chair of the Board, Healthpeak Properties, Inc. Former Global Head of Corporate Former Senior Managing Director, Real Estate Services, Deutsche Bank AG Heitman LLC R. KENT GRIFFIN, JR. SCOTT M. BRINKER Managing Directo
Slide 47: Forward-Looking Statements & Risk Factors
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. F
Slide 48: Forward-Looking Statements & Risk Factors (continued)
Forward-Looking Statements Callan Ridge San Diego, CA & Risk Factors (continued) cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; the availability of external capital on acceptable terms or at all, including due to rising interest rat
Slide 49: Forward-Looking Statements & Risk Factors (concluded)
Cambridge Park Forward-Looking Statements Callan Ridge Boston,CA San Diego, MA & Risk Factors (concluded) ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed transaction, on December 15, 2023, Healthpeak and Physicians Realty Trust filed with the SEC a registration statement
Slide 50: Corporate Offices
_________________________________________________________ _________________________________________________________ Corporate HQ, Denver, CO South San Francisco, CA 4600 South Syracuse Street, Suite 500 101 Oyster Point Boulevard, Suite 102 Denver, CO 80237 South San Francisco, CA 94080 (720) 428 -
Healthpeak Properties — Q4 2023 Earnings Presentation on 6ix