Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q3 2023 Earnings Presentation
48 slides from Healthpeak Properties's earnings presentation, Oct 31, 2023
Slide 1: Earnings Release and Supplemental Report Third Quarter 2023
Callan Ridge San Diego, CA Earnings Release and Supplemental Report ___________________________________________________________________ Third Quarter 2023
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 7 Overview 11 Portfolio Summary 12 Property Count Reconciliations 15 Capitalization 16 Indebtedness 17 Investment Summary 19 Developments and Redevelopments 20 Capital Expenditures 22 Portfolio Diversification 23 Portfolio Lab 24
Slide 3: Healthpeak Reports Third Quarter 2023 Results and Declares Quarterly Cash Dividend
Healthpeak Properties Reports Third Quarter 2023 Results and Declares Quarterly Cash Dividend on Common Stock DENVER, October 30, 2023 - Healthpeak Properties, Inc. (NYSE: PEAK), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, today announced results fo
Slide 4: Third Quarter and Year to Date Comparison
THIRD QUARTER COMPARISON Three Months Ended Three Months Ended September 30, 2023 September 30, 2022 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income, diluted $ 64,048 $ 0.12 $ 355,721 $ 0.65 Nareit FFO, diluted 252,566 0.46 227,426 0.42 FFO as Adjusted, diluted
Slide 5: Development Updates
DEVELOPMENT UPDATES VANTAGE PHASE I In September 2023, Healthpeak signed an additional 23,000 square foot lease with a global pharmaceutical company at its Vantage Phase I development in South San Francisco, California, bringing the property to 52% pre-leased. Strategically located on Forbes Bouleva
Slide 6: Updated Conference Call Information
UPDATED CONFERENCE CALL INFORMATION Healthpeak has scheduled a conference call and webcast for Monday, October 30, 2023, at 8:30 a.m. Eastern Time. The conference call can be accessed in the following ways: • Healthpeak’s website: https://ir.healthpeak.com/news-events • Webcast: https://events.q4inc
Slide 7: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data September 30, 2023 December 31, 2022 Assets Real estate: Buildings and improvements $ 13,097,282 $ 12,784,078 Development costs and construction in progress 863,341 760,355 Land and improvements 2,6
Slide 8: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues: Rental and related revenues $ 417,075 $ 392,301 $ 1,219,473 $ 1,149,530 Resident fees and services 133,
Slide 9: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) applicable to common shares $ 64,048 $ 353,366 $ 233,497 $ 491,398 Real estate related depreciation and amortiz
Slide 10: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 FFO as Adjusted applicable to common shares $ 249,306 $ 233,166 $ 728,045 $ 704,460 Stock-based compensation amortization expense 3,434 4,614 1
Slide 11: Overview
The Numbers Overview(1) As of and for the quarter and nine months ended September 30, 2023, dollars, square feet, and shares in thousands, except per share data (1) Reconciliations, definitions, and important discussions 3Q23 YTD 2023 regarding the usefulness and limitations of the non-GAAP Financia
Slide 12: Portfolio Summary
Portfolio Summary As of and for the quarter ended September 30, 2023, dollars in thousands Property Weighted Portfolio Portfolio Count Average Age(1) Investment Income Property Portfolio PORTFOLIO INCOME Lab 133 15 $ 8,129,532 $ 157,295 Outpatient Medical 293 24 6,326,990 113,960 CCRC(2) 15 32 2,353
Slide 13: Quarter NOI Summary
Quarter NOI Summary For the quarter ended September 30, 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 $ 2
Slide 14: Year-To-Date NOI Summary
Year-To-Date NOI Summary For the nine months ended September 30, 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 NO
Slide 15: Property Count Reconciliations
Property Count Reconciliations As of September 30, 2023 PROPERTY COUNT RECONCILIATION Outpatient Lab Medical CCRC Other Total Prior Quarter Total Property Count 146 295 15 19 475 Current Quarter Total Property Count 146 295 15 19 475 Assets in Development (5) (1) — — (6) Recently completed Developme
Slide 16: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION September 30, 2023 Shares Price Total Value Common stock (NYSE: PEAK) 547,072 $ 18.36 $ 10,044,242 Convertible partnership (DownREIT) units 7,283 18.36 133,716 Total Market Equity 554,355 $ 10,177,958 Co
Slide 17: Indebtedness: Debt Maturities
Indebtedness As of September 30, 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 % D
Slide 18: Indebtedness: Debt Structure and Covenants
Indebtedness As of September 30, 2023, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 366,305 6 4.20 2.1 Floating rate 14,862 — 8.52 1.3 Combined $ 381,167 6 4.37 2.0 Unsecured Fixed rate(1) 5,950,000 88 3.67 5.7 Floating rate(2
Slide 19: Investment Summary
Investment Summary As of and for the nine months ended September 30, 2023, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Nine Months Ended MSA Date Capacity Count Property Type September 30, 2023 September 30, 2023 ACQUISITIONS 60 Loomis land parcel Boston, MA J
Slide 20: Developments In Process
Developments In Process As of September 30, 2023, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total 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(2) Yield(
Slide 21: Redevelopments and Land Held for Development
Redevelopments and Land Held for Development As of September 30, 2023, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Property Cost to Estimated Project(1) MSA Property Type Count CIP(2) Complete(2) Total Completion Date Pointe
Slide 22: Capital Expenditures
(1) Capital Expenditures For the three and nine months ended September 30, 2023, dollars in thousands, except per unit/square foot Outpatient THIRD QUARTER Lab Medical CCRC Other Total Portfolio at share Recurring capital expenditures $ 1,213 $ 7,204 $ 3,485 $ 1,069 $ 12,971 Tenant improvements - 2n
Slide 23: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 2023, dollars in thousands PORTFOLIO INCOME BY MSA Property Outpatient MSA Count(1) Lab Medical CCRC Other Total % of Total San Francisco, CA 83 $ 95,561 $ 804 $ — $ — $ 96,365 31 Boston, MA 21 36,682 739 — — 37,421 12 San Diego
Slide 24: Lab
Lab As of and for the quarter ended September 30, 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 82 $ 4,251,502 $ 95,561 5,365 97.2 58.1 Boston, MA
Slide 25: Lab: Tenant Concentration
Lab As of September 30, 2023 TENANT CONCENTRATION Annualized Weighted Leased Square Feet Base Rent(2) ANNUALIZED BASE RENT(2) Cash and Average Liquid Remaining Market Cap Investments Lease Term Amount (in % of Amount (in % of Parent Name (in millions) (in millions)(1) in Years thousands) Total thous
Slide 26: Lab: Lease Expiration Data
Lab As of September 30, 2023, 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 % Base Rent(1) % Feet Base Re
Slide 27: Lab: Leasing Activity
Lab As of September 30, 2023, square feet in thousands, presented at 100% 3Q23 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) per Sq. Ft.(2) per Sq. Ft.(2) Term (Months) Ra
Slide 28: Lab: Lease Type and Ownership
Lab As of and for the quarter ended September 30, 2023, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego Remaining Total % of Total Triple-Net(1) $ 332,568 $ 129,761 $ 99,114 $ 6,780 $ 568,223 93.2 Base Year(2) 20,847 17,098 2,439 — 40,384 6.6 Gross
Slide 29: Outpatient Medical
Outpatient Medical As of and for the quarter ended September 30, 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-ten
Slide 30: Outpatient Medical Same-Store
Outpatient Medical Same-Store As of and for the quarter ended September 30, 2023, dollars and square feet in thousands SAME-STORE 3Q22 4Q22 1Q23 2Q23 3Q23 Property Count 279 279 279 279 279 Portfolio Investment $ 5,728,609 $ 5,772,428 $ 5,809,464 $ 5,839,893 $ 5,876,163 Square Feet 22,430 22,426 22,
Slide 31: Outpatient Medical: Square Feet by Health System
Outpatient Medical As of September 30, 2023, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Total Square Feet % Weighted Directly Average Leased Remaining Property Credit Unaffiliated % of by Health Lease Health System MSA Count Rating On-Campus Adjacent(1) Anchored(1) Off-Campus Total Total
Slide 32: Outpatient Medical: Lease Expiration Data
Outpatient Medical As of and for the quarter ended September 30, 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) 20
Slide 33: Outpatient Medical: Leasing Activity
Outpatient Medical As of September 30, 2023, square feet in thousands, presented at 100% 3Q23 LEASING ACTIVITY Annualized % Change in Tenant Leasing Trailing Twelve Leased Base Rent Per Cash Improvements Costs per Average Lease Month Retention Square Feet Sq. Ft. Rents(1)(2) per Sq. Ft.(3) Sq. Ft.(3
Slide 34: Outpatient Medical: Lease Type and Specialty
Outpatient Medical As of and for the quarter ended September 30, 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 35: CCRC
CCRC As of and for the quarter ended September 30, 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 Col
Slide 36: CCRC Same-Store
CCRC Same-Store As of and for the quarter ended September 30, 2023, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 3Q22 4Q22 1Q23 2Q23 3Q23 Growth Year Growth Property count 15 15 15 15 15 — — Net Portfolio Investment $ 1,486,923 $ 1,498,292 $ 1,514,431 $ 1,533,060 $ 1,541,511
Slide 37: Other
Other As of and for the quarter ended September 30, 2023, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 3Q22 4Q22 1Q23 2Q23 3Q23 Property count 19 19 19 19 19 Investment $ 462,219 $ 464,068 $ 465,707 $ 467,765 $ 470,299 Units 3,354 3,354 3,354 3,354 3,354 Occup
Slide 38: 2023 Guidance Information
(1) 2023 Guidance Information Projected full year 2023, dollars in millions, except per share amounts * Represents Healthpeak's 2023 guidance ranges Bolded items represent updates from previous Guidance ranges and assumptions FY 2023 Guidance Oct 30, 2023 Jul 27, 2023 Oct 30, 2023 Jul 27, 2023 2023
Slide 39: 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 40: 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 41: 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 42: 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 September 30, 2023 Net income (loss) $ 68,656 Interest expense 50,510 Income tax expense (benefit) 787 Depreciation and amortization 184,559 Other depreciation and
Slide 43: Debt Ratios
Debt Ratios As of and for the quarter ended September 30, 2023, dollars in thousands FINANCIAL LEVERAGE September 30, 2023 Enterprise Debt $ 6,704,389 Enterprise Gross Assets 19,750,921 (1) Represents the current quarter Adjusted EBITDAre multiplied by a factor of four. Financial Leverage 33.9% SECU
Slide 44: 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 45: The Post, Waltham, MA
The Post Waltham, MA 45 Return Return toto to TOC TOC Return TOC
Slide 46: 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 47: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements The Pond at Torrey Pines Science Park San Diego, CA & Risk Factors (concluded) the failure of our tenants, operators, and borrowers to comply with federal, state, and local laws and regulations, including resident health and safety requirements, as well as licensure, certi
Slide 48: 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 — Q3 2023 Earnings Presentation on 6ix