Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q4 2021 Earnings Presentation
50 slides from Healthpeak Properties's earnings presentation, Feb 8, 2022
Slide 1: Earnings Release and Supplemental Report Fourth Quarter 2021
Vantage Amenities ‘Center (Rendering) South San Francisco, CA Earnings Release and Supplemental Report Healthpeak Fourth Quarter 2021 dephallsae
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 Fourth Quarter and Year Ended 2021 Results
Healthpeak Reports Fourth Quarter and Year Ended 2021 Results DENVER, February 8, 2022 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the fourth quarter and full year ended December 31, 2021 FOURTH QUARTER 2021 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS - Net income of $0.05
Slide 4: Fourth Quarter and Full Year Comparison
FOURTH QUARTER COMPARISON Three Months Ended December 31, 2021 Three Months Ended December 31, 2020 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income, diluted $ 28,493 $ 0.05 $ 146,129 $ 0.27 Nareit FFO, diluted 222,101 0.41 176,477 0.32 FFO as Adjusted, diluted 2
Slide 5: Needham Land Parcel Joint Venture
NEEDHAM LAND PARCEL JOINT VENTURE In December 2021, Healthpeak acquired a 37.5% joint venture interest in a nine acre land parcel in the Needham submarket of Boston. Healthpeak’s share of the purchase price totaled $21.5 million. The joint venture intends to pursue future life science, R&D, or medic
Slide 6: 2022 Guidance
2022 GUIDANCE For full year 2022, we have established the following guidance ranges: * Diluted earnings per common share of $0.58 — $0.64 * Diluted Nareit FFO per share of $1.70 - $1.76 © Diluted FFO as Adjusted per share of $1.68 - $1.74 * Total Portfolio Same-Store Cash (Adjusted) NOI growth of 3.
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: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data December 31, 2021 December 31, 2020 Assets Real estate: Buildings and improvements $ 12,025,271 $ 11,048,433 Development costs and construction in progress 877,423 613,182 Land 2,603,964 1,867,278 A
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data Revenues: Rental and related revenues Resident fees and services Income from direct financing leases Interest income Total revenues Costs and expenses: Interest expense Depreciation and amortization
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Net income (loss) applicable to common shares $ 28493 $ 146,129 $ 502,271 $ 411,147 Real estate related depreciation and amortization" 178
Slide 11: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 FFO as Adjusted applicable to common shares $ 220,378 $ 218,932 $ 870,645 $ 874,188 Amortization of stock-based compensation 4,307 3,977 18,202 17,368 A
Slide 12: The Numbers: Overview
The Numbers Overview) (1) Reconciliations, definitions, and important discussions regarding the usefulness and limitations of the non-GAAP As of and for the quarter and year ended December 31, 2021, dollars, square feet, and shares in thousands, except per share data financial measures used in this
Slide 13: Portfolio Summary
Portfolio Summary") As of and for the quarter ended December 31, 2021, dollars in thousands, excludes discontinued operations Property Weighted Portfolio Portfolio Count Average Age” _ Investment Income Property Portfolio Life science 137 14$ 7,433,260 $ 129,760 PORTFOLIO INCOME“ Medical office 291
Slide 14: Quarter NOI Summary
Quarter NOI Summar For the quarter ended December 31, 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 E
Slide 15: Twelve Months NOI Summary
For the twelve months ended December 31, 2021, dollars in PORTFOLIO NOI SUMMARY thousands, excludes discontinued operations Portfolio NOI SS Portfolio NOI Portfolio Real Portfolio SS Portfolio Estate Operating SS Portfolio Real Operating SS Portfolio Revenues Expenses Portfolio NOI Estate Revenues E
Slide 16: Property Count Reconciliations
Count Reconciliations As of December 31, 2021 PROPERTY COUNT RECONCILIATION Medical Life Science Office cCRC Other Total Prior Quarter Total Property Count 146 300 15 19 480 Acquisitions 2 3 - - 5 Assets sold - (3) = = (3) New developments 2 - - - 2 Current Quarter Total Property Count 150 300 15 19
Slide 17: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2021 Shares Value Total Value Common stock (NYSE: PEAK) 539,097 $ 36.09 $ 19,456,011 Convertible partnership (DownREIT) units 7,316 36.09 264,034 Total Market Equity 546,413 $ 19,720,045 Con
Slide 18: Indebtedness: Debt Maturities
Indebtedness As of December 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") Amounts Rates %| Amounts Rates % Debt Amounts”
Slide 19: Indebtedness: Debt Structure
Indebtedness As of December 31, 2021, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance °% of Total Rates % Maturity Secured Fixed rate $ 232,816 4 3.59 35 Floating rate 156,675 2 2.84 4.2 Combined $ 389,491 6 3.29 3.8 Unsecured Fixed rate 4,700,000 75 3.39 7A Floating rate 1,165
Slide 20: Investment Summary: Acquisitions
Investment Summar As of and for the year ended December 31, 2021, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Twelve Months Ended MSA Date Capacity Count _ Property Type December 31, 2021 December 31, 2021 ACQUISITIONS” Westview Medical Plaza Nashville, TN Feb
Slide 21: Investment Summary: Held for Sale and Dispositions
Investment Summar As of and for the year ended December 31, 2021, dollars and square feet in thousands REAL ESTATE HELD FOR SALE Property Projected Sales Property Type Capacity Count Price Medical office 216 Sq. Ft. 4° $ 26,300 Life science” 70 Sq. Ft. 1 14,250 Total 5 $ 40,550 DISPOSITIONS? Propert
Slide 22: Developments In Process
Develooments In Process As of December 31, 2021, 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 unt CIP Complete™ Completion (Sq. Ft.) Leased Start Occupancy” Life Science The Boardw
Slide 23: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment As of December 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 24: Capital Expenditures
Capital Expenditures!) For the three and twelve months ended December 31, 2021, dollars in thousands, except per unit/square foot, excludes discontinued operations FOURTH QUARTER Life Science Medical Office ccRC Other Total Portfolio at share Recurring capital expenditures $ 2,014 $ 10,941 $ 6,033 $
Slide 25: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended December 31, 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 $ 77,618 $ 874 $ — $ — $ 78,492 29 Boston,
Slide 26: Life Science
Life Science As of and for the quarter ended December 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 $ 3,891,447 $ 77,618 5,192 95.7 59.3 Boston, MA
Slide 27: Life Science Tenant Concentration
Life Science As of December 31, 2021, dollars and square feet in thousands, except Market Cap TENANT CONCENTRATION Weighted square Feot Base Rent” Market Remaining Cap (in Lease Term % of % of mi ns) in Years Amount Total Amount Total Amgen $ 126,718 19 684 7 $ 55,183 10 Global Blood Therapeutics 1,
Slide 28: Life Science Lease Expirations
As of December 31, 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") F
Slide 29: Life Science Leasing Activity
Life Science As of December 31, 2021, dollars and square feet in thousands, presented at 100% 4021 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 December 31, 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? $ 290,522 $ 106,871 $ 73,163 $ 13,249 $ 483,805 91.7 Base Year”! 22,037 16,556 3,
Slide 31: Medical Office
Medical Office As of and for the quarter ended December 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 % Multitenant Single-tenant| Multi-tenant Single-tena
Slide 32: Medical Office Same-Store
As of and for the quarter ended December 31, 2021, dollars and square feet in thousands 4020 1021 2021 3021 4021 Property Count 241 241 241 241 241 Portfolio Investment $ 4,210,000 $ 4,226,047 $ 4,245,377 $ 4,270,597 $ 4,305,632 Square Feet 19,606 19,606 19,597 19,606 19,605 Occupancy % 92.6 92.3 92
Slide 33: Medical Office Square Feet by Health System
Medical Office As of and for the quarter ended December 31, 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 December 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” 2022" 3,096
Slide 35: Medical Office Leasing Activity
Medical Office As of December 31, 2021, dollars and square feet in thousands, presented at 100% 4021 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 Le
Slide 36: Medical Office Lease Type and Provider Specialty
Medical Office As of and for the quarter ended December 31, 2021, square feet in thousands LEASE TYPE PROVIDER SPECIALTY eT Leased Square Feet National Healthpeak Benchmark" Unaffiliated jalti On-Campus Adjacent Anchored Off-Campus Total — % of Total Types of Specialties 5 Triple-Net™ 71,548 601 1,9
Slide 37: CCRC
CCRC As of and for the quarter ended December 31, 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 i CCRC"! Collections Opera
Slide 38: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended December 31, 2021, dollars in thousands, except REVPOR: SAME-STORE Sequential Year-Over- 4020 1021 2021 3021 4021 Growth Year Growth Property count 15 15 15 15 15 = = Net Portfolio Investment” $ 1,382,550 $ 1,401,030 $ 1,416,858 $ 1,432,162 $ 1,458,
Slide 39: Other: Sovereign Wealth Fund Senior Housing JV
As of and for the quarter ended December 31, 2021, dollars in thousands SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 1021 2021 3021 4021 Property count 19 19 19 19 Investment 421,567 $ 437,201 $ 455,743 $ 457,870 Units 3,317 3,354 3,354 3,354 Occupancy % 72.7 72.4 74.3 748 REVPOR Other 4117 $ 4,
Slide 40: Discontinued Operations
Discontinued Operations Dollars in thousands (unaudited) The results of discontinued operations through December 31, 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 Operations.
Slide 41: 2022 Guidance & Additional Items
2022 Guidance & Additional Items Projected full year 2022, dollars in millions, except per share amounts Full Year Additional 2022 Guidance 2022 Guidance (February 8, 2022) Assumptions SaaS a eae antaa on ArEOVATONENT Ren Diluted earnings per common share $0.58 - $0.64 Amortization of stock-based co
Slide 42: 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 43: 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 44: 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 45: 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 Twelve Months Ended December 31, 2021 December 31, 2021 Net income (loss) $ 32,576 $ 525,930 Interest expense” 36,551 161,880 Income tax expense (benefit)'”’ (1,4
Slide 46: Debt Ratios
Debt Ratios As of and for the quarter ended December 31, 2021, dollars in thousands ENTERPRISE DEBT AND NET DEBT Pro Forma December 31, 2021 December 31, 2021" Bank line of credit and commercial paper $ 1,165,975 Senior unsecured notes 4,651,933 Mortgage debt 352,081 Consolidated Debt $ 6,169,989 Sh
Slide 47: 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 48: 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 49: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements & Risk Factors (concluded) 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
Slide 50: Corporate HQ, 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 «lll healthpeak.com
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