Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q3 2021 Earnings Presentation
52 slides from Healthpeak Properties's earnings presentation, Nov 2, 2021
Slide 1: Earnings Release and Supplemental Report Third Quarter 2021
Wh uy pel AN Earnings Release —= and Supplemental Report Van Healthpeak Third Quarter 2021 PROPERTIES
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 8 Overview 12 Portfolio Summary 13 Property Count Reconciliations 16 Capitalization a Indebtedness 18 Investment Summary 20 Developments and Redevelopments 22 Capital Expenditures 24 Portfolio Diversification 28 Portfolio Life Sc
Slide 3: Healthpeak Reports Third Quarter 2021 Results
Healthpeak Reports Third Quarter 2021 Results DENVER, November 2, 2021 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the third quarter ended September 30, 2021 THIRD QUARTER 2021 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS Net income of $0.10 per share, Nareit FFO of $0.36 p
Slide 4: Third Quarter Comparison
THIRD QUARTER COMPARISON Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 54,442 $ 0.10 $ (63,768) $ (0.12) Nareit FFO, diluted 196,565 0.36 164,603 0.31 FFO as Adjusted
Slide 5: Acquisitions: Mooney Street Parcels and others
. MOONEY STREET PARCELS: 145,000 square feet of flex office and industrial buildings on 11.9 acres for $123 million. Healthpeak intends to pursue additional entitlements on the site which, if successful, would result in an earn-out payment to the sellers of up to approximately $15 million. The campu
Slide 6: CambridgePark Drive and Vantage Development Start
101 CAMBRIDGEPARK DRIVE eGenesis, Inc. and Seres Therapeutics, Inc. have signed leases for a combined 142,000 square feet at 101 CambridgePark Drive, bringing the $180 million, 161,000 square foot development to 88% pre-leased. When combined with our adjacent life science holdings at 35 and 87 Cambr
Slide 7: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements 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 include, am
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited September 30, 2021 December 31, 2020 Assets Real estate: Buildings and improvements Development costs and construction in progress Land Accumulated depreciation and amortization Net real
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) SSS Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Rental and related revenues $ 353,516 $ 301,941 $ 1,022,130 $ 872,511 Resident fees and
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) applicable to common shares $ 54,442 $ (63,768) $ 473,778 $ 265,018 Real estate related depreciatio
Slide 11: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 FFO as Adjusted applicable to common shares $ 217411 $ 213,529 $ 650,166 $ 655,255 Amortization of stock-based compensation 4,436 4
Slide 12: The Numbers (Overview)
The Numbers Overview) As of and for the quarter and nine months ended September 30, 2021, dollars, square feet, and shares in thousands, except per share data (1) 3021 YTD 2021 Financial Metrics Diluted earnings per common share $0.10 $0.88 Diluted Nareit FFO per common share $0.36 $0.71 |) Diluted
Slide 13: Portfolio Summary
Portfolio Summary") As of and for the quarter ended September 30, 2021, dollars in thousands, excludes discontinued operations Property Weighted Portfolio Portfolio Count Average Age” —_Investment Income Property Portfolio Life science 135 14$ 7,235,367 $ 129,270 PORTFOLIO INCOME“ Medical office 289
Slide 14: Quarter NOI Summary
Quarter NOI Summar For the quarter ended September 30, 2021, 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
Slide 15: Year-To-Date NOI Summary
Year-To-Date NOI Summar For the nine months ended September 30, 2021, dollars in thousands, excludes discontinued operations PORTFOLIO NOI SUMMARY Portfolio NOI SS Portfolio NOI Portfolio Real Portfolio SS Portfolio Estate Operating SS Portfolio Real Operating SS Portfolio Revenues Expenses Portfoli
Slide 16: Property Count Reconciliations
As of September 30, 2021 PROPERTY COUNT RECONCILIATION Count Reconciliations Medical Senior Housing Life Science Office CCRC Other Tripl SHOP Total Prior Quarter Total Property Count 142 297 15 19 4 8 485 Acquisitions 3 6 - - - - 9 Assets sold - (3) = = (4) (8) (15) New developments 1 - - - - - 1 Cu
Slide 17: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION September 30, 2021 Shares Value Total Value ‘Common stock (NYSE: PEAK) 539,066 $ 33.48 $ 18,047,930 Convertible partnership (DownREIT) units 7,326 33.48 245,274 Total Market Equity 546,392 $ 18,293,204 C
Slide 18: Indebtedness: Debt Maturities
Indebtedness As of September 30, 2021, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Senior Unsecured Notes Mortgage Debt Share of Unconsolidated JV Debt Enterprise Debt Bank LOC & Commercial Consolidated Paper") Amounts Rates %| Amounts Rates % Debt Amounts”
Slide 19: Indebtedness: Debt Structure
Indebtedness As of September 30, 2021, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 241,547 4 3.63 36 Floating rate 142,910 3 2.67 46 Combined $ 384,457 7 3.28 4.0 Unsecured Fixed rate 4,200,000 75 3.51 74 Floating rate 1,024,
Slide 20: Investment Summary: Acquisitions
Investment Summar As of and for the nine months ended September 30, 2021, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Nine Months Ended MSA Date Capacity Count PropertyType _— September 30, 2021 September 30, 2021 ACQUISITIONS” Westview Medical Plaza Nashville
Slide 21: Investment Summary: Dispositions
Investment Summar As of and for the nine months ended September 30, 2021, dollars and square feet in thousands REAL ESTATE HELD FOR SALE Property Projected Sales Property Type Capacity Count Price Medical office 280 Sq. Ft. 5 $ 33,380 Life Science 70 Sq, Ft. 1 14,250 Total 6 $ 47,630 DISPOSITIONS" P
Slide 22: Developments In Process
Develooments In Process As of September 30, 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 Stabilized Li
Slide 23: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment As of September 30, 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” Tota
Slide 24: Capital Expenditures
Capital Expenditures!) For the three and nine months ended September 30, 2021, dollars in thousands, except per unit/square foot, excludes discontinued operations THIRD QUARTER Life Science Medical Office ccRC Oth Total Portfolio at share Recurring capital expenditures $ 1,697 $ 5,254 $ 4,220 $ 1,05
Slide 25: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 2021, 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 79 $ 80,699 $ 849 $ — $ —$ 81,549 31 Boston,
Slide 26: Life Science
Life Science As of and for the quarter ended September 30, 2021, 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 78 $ 3,810,104 $ 80,699 5,192 96.7 60.1 Bosto
Slide 27: Life Science: Tenant Concentration
Life Science As of September 30, 2021, dollars and square feet in thousands, except Market Cap TENANT CONCENTRATION Weighted square Feot Base Rent” Market Remaining milflons) “““inVoars Amount Total|__ Amount Total ANNUALIZED BASE RENT” Amgen $ 120,754 24 684 7 $ 54635 11 Global Blood Therapeutics 1
Slide 28: Life Science: Lease Expirations
As of September 30, 2021, dollars and square feet in thousands Total San Francisco Boston San Diego Remaining Leased Leased Leased Leased Leased Square Annualized Square Annualized Square Annualized| Square Annualized | Square Annualized Year Feet % Base Rent"? % Feet Base Rent"? Feet _ Base Rent")
Slide 29: Life Science: Leasing Activity
Life Science As of September 30, 2021, dollars and square feet in thousands, presented at 100% 3021 LEASING ACTIVITY Leased Annualized Tenant Trailing Twelve Square Base Rent %Changein Improvements Leasing Costs Average Lease Month Retention Feet Per Sq.Ft. Cash Rents per Sq. Ft.) per Sq. Ft.) Term
Slide 30: Life Science: Lease Type and Ownership
Life Science As of and for the quarter ended September 30, 2021, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco, CA Boston, MA_ San Diego, CA _ Remaining Total % of Total Triple-Net'? $ 286,528 $ 104,437 $ 71,790 $ 13,159 $ 475,914 92.5 Base Year”! 21,742 11,368 3
Slide 31: Medical Office: Portfolio by Market
Medical Office As of and for the quarter ended September 30, 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 % Multitenant Single-tenant| Multi-tenant Single-ten
Slide 32: Medical Office: Same-Store
As of and for the quarter ended September 30, 2021, dollars and square feet in thousands 3020 4020 1021 2021 3021 Property Count 244 244 244 244 244 Portfolio Investment $ 4,196,014 $ 4,221,621 $ 4,237,314 $ 4,256,771 $ 4,282,246 Square Feet 19,677 19,681 19,681 19,672 19,681 Occupancy % 92.4 92.5 9
Slide 33: Medical Office: Square Feet by Health System
Medical Office As of and for the quarter ended September 30, 2021, 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
Slide 34: Medical Office: Lease Expiration Data
Medical Office As of and for the quarter ended September 30, 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” 2021 808 3.
Slide 35: Medical Office: Leasing Activity
Medical Office As of September 30, 2021, dollars and square feet in thousands, presented at 100% 3021 LEASING ACTIVITY Annualized Tenant Leasing Leased Base RentPer %Changein Improvements Costsper Average Lease Month Retention Square Feet Sq.Ft. Cash Rents" per Sq. Ft. 2) Sq.Ft. Term (Months) Rate L
Slide 36: Medical Office: Lease Type and Provider Specialty
Medical Office As of and for the quarter ended September 30, 2021, square feet in thousands LEASE TYPE PROVIDER SPECIALTY Leased Square Feet National Healthpeak Benchmark! On-Campus Adjacent Anchored of cannus Total — % of Total Types of Specialties Triple-Net™ 11,208 576. «1,895 135 73,813 63.9 Ort
Slide 37: CCRC
CCRC As of and for the quarter ended September 30, 2021, 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 Operato
Slide 38: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended September 30, 2021, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 3020 4020 1021 2021 3021 Growth Year Growth Property count 15 18 18 15 18 = = Net Portfolio Investment” $ 1,360,110 $ 1,382,550 $ 1,401,030 $ 1,415,981 $ 1,432,
Slide 39: Other: Senior Housing JV
(1) (2) (3) (4) As of and for the quarter ended September 30, 2021, dollars in thousands SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 3020 4020 1021 2021 3021 Property count 19 19 19 19 19 Investment $ 419,000 $ 420,699 $ 421,567 $ 437,201 $ 455,743 Units 3,317 3,317 3,317 3,354 3,354 Occupancy
Slide 40: Discontinued Operations
Discontinued Operations Dollars in thousands (unaudited) The results of discontinued operations through September 30, 2021, or the disposal date of each asset or portfolio of assets, are included within the “income (loss) from discontinued operations" line of the consolidated statements of operation
Slide 41: 2021 Guidance & Additional Items
2021 Guidance & Additional Items Range of Outcomes" Projected full year 2021, dollars in millions, except per share amounts Market Backdrop Acquisitions / Leverage”! Low End $1.5B Acquisitions / ~5.5x Net Debt to EBITDA High End August Guidance for Updated Items $1.5B Acquisitions / ~5.5x Net Debt t
Slide 42: 2021 Guidance & Additional Items
2021 Guidance & Additional Items Range of Outcomes” : Projected full year 2021, dollars in millions, except per share amounts ‘Augu just Guidance for Low End High End i pdated Items Amortization of stock-based compensation $19 Amortization of deferred financing costs $7 3 Straight line rents ($25) (
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 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 45: 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 46: Adjusted EBITDAre and Adjusted Fixed Charge Coverage
Adjusted EBITDAre and Adjusted Debt Rati Os Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended September 30, 2021 Net income (loss) $ 61,906 Interest expense!” 35,952 Income tax expense (benefit) (870) Depreciation and amortization 177,175 Other depreciatio
Slide 47: Debt Ratios
Debt Ratios As of and for the quarter ended September 30, 2021, dollars in thousands ENTERPRISE DEBT AND NET DEBT September 30, 2021 Pro Forma September 30, 2021 Bank line of credit and commercial paper $ 1,024,000 Senior unsecured notes 4,157,834 Mortgage debt 356,570 Consolidated Debt $ 5,538,404
Slide 48: 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 49: Return to TOC
49 etu Return to TOC
Slide 50: 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 51: Forward-Looking Statements and Risk Factors (continued)
from potential transactions; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness; changes in global, national and local economic
Slide 52: Corporate Headquarters and Offices
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 «lll healthpeak.com
Healthpeak Properties — Q3 2021 Earnings Presentation on 6ix