Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q4 2020 Earnings Presentation
52 slides from Healthpeak Properties's earnings presentation, Feb 9, 2021
Slide 1: Earnings Release and Supplemental Report Fourth Quarter 2020
Cambridge Discovery Park Boston, MA Earnings Release and Supplemental Report ___________________________________________________________________ Fourth Quarter 2020
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 23 Capital Expenditures 25 Portfolio Diversification 26 Expirations, Mat
Slide 3: Healthpeak Reports Fourth Quarter and Year Ended 2020 Results
Healthpeak Reports Fourth Quarter and Year Ended 2020 Results DENVER, February 9, 2021 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the fourth quarter and full year ended December 31, 2020. FOURTH QUARTER 2020 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS – Net income of $0.2
Slide 4: Dividend, Recognition and Full Year 2020 Highlights
– The Board of Directors declared a quarterly common stock cash dividend of $0.30 per share to be paid on March 5, 2021, to stockholders of record as of the close of business on February 22, 2021 ▪ The adjustment to the dividend aligns our payout ratio with our targeted Life Science, Medical Office
Slide 5: Fourth Quarter and Full Year Comparison
FOURTH QUARTER COMPARISON Three Months Ended Three Months Ended December 31, 2020 December 31, 2019 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 146,129 $ 0.27 $ 43,200 $ 0.09 NAREIT FFO, diluted 176,477 0.32 195,892 0.39 FFO as Adjusted, di
Slide 6: Senior Housing (SHOP and NNN) Dispositions
SENIOR HOUSING (SHOP AND NNN) DISPOSITIONS Closed on 12 transactions generating gross proceeds of $2.5 billion: ▪ 70 SHOP assets containing 7,637 units generating gross proceeds of $1.32 billion at a blended 3.1% annualized trailing 3-month cap rate ▪ 45 NNN assets containing 4,388 units generating
Slide 7: Balance Sheet: Senior Unsecured Notes
BALANCE SHEET SENIOR UNSECURED NOTES In January 2021, with proceeds generated from our senior housing sales, commenced the debt repayment of $1.45 billion of senior unsecured notes with maturity dates in 2023 and 2024 with a weighted average coupon of approximately 4%. The following debt has been re
Slide 8: About Healthpeak and Forward-Looking Statements
ABOUT HEALTHPEAK Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns and develops high-quality real estate in the three private-pay healthcare asset classes of Life Science, Medical Office and CCRCs, designed to provide stability
Slide 9: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data December 31, 2020 December 31, 2019 Assets Real estate: Buildings and improvements $ 11,048,433 $ 8,112,193 Development costs and construction in progress 613,182 654,792 Land 1,867,278 1,605,599 Ac
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, 2020 2019 2020 2019 (unaudited) Revenues: Rental and related revenues $ 309,597 $ 277,307 $ 1,182,108 $ 1,069,502 Resident fees and services 1
Slide 11: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) (1) For the year ended December 31, 2020, includes a $170 Three Months Ended Year Ended million gain upon consolidation of 13 continuing care December 31, December 31, retirement communities ("CCRCs") i
Slide 12: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (unaudited) Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 FFO as Adjusted applicable to common shares $ 218,932 $ 218,815 $ 874,188 $ 864,352 Amortization of deferred compensation 3,977 3,177 17,368
Slide 13: Overview
The Numbers Overview(1)(2) As of and for the quarter and year ended December 31, 2020, dollars, square feet, and shares in thousands, except per share data 4Q20 Full Year 2020 (1) Reconciliations, definitions, and important discussions Financial Metrics regarding the usefulness and limitations of th
Slide 14: Portfolio Summary
Portfolio Summary As of and for the quarter ended December 31, 2020, dollars in thousands Weighted Property Average Portfolio Portfolio Count Age(1) Investment Income Property Portfolio Life science 130 14 $ 6,846,940 $ 111,853 PORTFOLIO INCOME(3) Medical office 274 24 5,138,632 97,782 CCRC 17 29 2,
Slide 15: Quarter NOI Summary
Quarter NOI Summary For the quarter ended December 31, 2020, 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 sci
Slide 16: Full Year NOI Summary
Full Year NOI Summary For the twelve months ended December 31, 2020, 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, 2020 PROPERTY COUNT RECONCILIATION Medical Senior Housing Life Science Office CCRC Other Triple-net SHOP Total Prior Quarter Total Property Count 136 266 17 10 62 135 626 Acquisitions 4 8 — — — — 12 Assets sold — (3) — — (13) (26) (42) Segment conver
Slide 18: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION December 31, 2020 Shares Value Total Value Common stock (NYSE: PEAK) 538,405 $ 30.23 $ 16,275,983 Convertible partnership (DownREIT) units 7,325 30.23 221,435 Total Market Equity 545,730 $ 16,497,418 Con
Slide 19: Indebtedness: Debt Maturities
Indebtedness As of December 31, 2020, 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(1) Term Loan(2) Amounts Rates %(3) Amounts Rates
Slide 20: Indebtedness: Debt Structure and Covenants
Indebtedness As of December 31, 2020, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 245,832 4 3.75 4.4 Floating rate 12,543 — 2.12 0.4 Combined $ 258,375 4 3.67 4.2 Unsecured Fixed rate 5,750,000 90 3.86 6.7 (1) Floating rate 3
Slide 21: Investment Summary
Investment Summary For the three and twelve months ended December 31, 2020, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Twelve Months Ended MSA Date Capacity Count Property Type December 31, 2020 December 31, 2020 ACQUISITIONS CCRC(1) Various January 6,383 Uni
Slide 22: Investment Summary: Assets Held for Sale and Dispositions
Investment Summary As of and for the year ended December 31, 2020, dollars and square feet in thousands ASSETS HELD FOR SALE Property Projected Sales Property Type Capacity Count Price Medical office(1) 566 Sq. Ft. 6 $ 255,990 CCRC 891 Units 2 15,876 Senior housing triple-net 3,970 Units 41 753,420
Slide 23: Developments
Developments As of December 31, 2020, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Total % of Actual / Estimated Project Total Occupancy Property Cost to Total at Capacity Project Project Project MSA Count CIP(1) Complete(1) Completion (Sq. Ft.) Leased Start Initial Stabilize
Slide 24: Redevelopments and Land Held for Development
Redevelopments and Land Held for Development(1) As of December 31, 2020, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Estimated Property Property Placed in Cost to Project Completion (2) Project MSA Type Count(3) Service CIP(
Slide 25: Capital Expenditures
Capital Expenditures For the three and twelve months ended December 31, 2020, dollars in thousands, except per unit/square foot Life Medical Senior Housing FOURTH QUARTER Science Office CCRC Other Triple-net SHOP Total Portfolio at share Recurring capital expenditures $ 3,170 $ 9,319 $ 2,554 $ 542 $
Slide 26: Portfolio Diversification by MSA
Portfolio Diversification As of and for the quarter ended December 31, 2020, dollars in thousands PORTFOLIO INCOME BY MSA Property Medical Senior Housing MSA Count(1) Life Science Office CCRC Other Triple-net SHOP Total % of Total San Francisco, CA 82 $ 72,952 $ 848 $ — $ — $ 1,262 $ 2,659 $ 77,721
Slide 27: Portfolio Diversification by Operator/Tenant
Portfolio Diversification As of and for the quarter ended December 31, 2020, dollars in thousands PORTFOLIO INCOME BY OPERATOR/TENANT Tenant/Credit Exposure Operator Exposure Senior % of % of Property Life Medical Housing Portfolio Property Portfolio Operator/Tenant Count(1) Science Office Other Tri
Slide 28: Expirations, Maturities and Purchase Options
Expirations, Maturities and Purchase Options As of December 31, 2020, dollars in thousands EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent(1) Interest Year Total % of Total Life Science Medical Office Income 2021(2) $ 105,264 11 $ 27,302 $ 75,009 $ 2,952 2022 107,600 11 34,618 70,680 2
Slide 29: Life Science
Life Science As of and for the quarter ended December 31, 2020, dollars and square feet in thousands INVESTMENTS(1) Property Portfolio Portfolio Cash Square Occupancy MSA Count Investment NOI Feet % San Francisco, CA 78 $ 3,739,791 $ 72,952 5,161 95.8 Boston, MA 13 1,935,218 17,796 2,089 96.3 San Di
Slide 30: Life Science: Lease Expirations and Tenant Concentration
Life Science As of December 31, 2020, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS) Total San Francisco San Diego Boston Remaining Leased Square Annualized Square Annualized Square Annualized Square Annualized Square Annualized Year Feet % Base Rent(1) % Feet Bas
Slide 31: Life Science: Leasing Activity
Life Science Square feet in thousands LEASING ACTIVITY Annualized Tenant Trailing Twelve Leased Square Base Rent % Change in Improvements Leasing Costs Average Lease Month Retention Feet Per Sq. Ft. Cash Rents per Sq. Ft.(1) per Sq. Ft.(1) Term (Months) Rate Leased Square Feet as of September 30, 20
Slide 32: Medical Office
Medical Office As of and for the quarter ended December 31, 2020, dollars and square feet in thousands PORTFOLIO BY MARKET(1) Square Feet On-campus(2) Off-campus(3) Total Property Portfolio Portfolio Occupancy MSA Count Investment Cash NOI % Multi-tenant Single-tenant Multi-tenant Single-tenant Mult
Slide 33: Medical Office: Square Feet by Health System
Medical Office As of and for the quarter ended December 31, 2020, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Square Feet Directly Leased by Health System Health System Credit Unaffiliated % of Annualized Health System Rank(1) Rating On-Campus Adjacent(2) Anchored(2) Off-Campus Total % of
Slide 34: Medical Office: Lease Expirations and Same-Store
Medical Office As of and for the quarter ended December 31, 2020, dollars and square feet in thousands SELECTED LEASE EXPIRATION DATA (NEXT 5 YEARS)(1) Total On-Campus Off-Campus Leased Annualized Annualized Annualized Year Square Feet % Base Rent(2) % Square Feet Base Rent(2) Square Feet Base Rent(
Slide 35: CCRC
(1) CCRC As of and for the quarter ended December 31, 2020, dollars in thousands, except REVPOR INVESTMENTS Portfolio Real Portfolio Property Portfolio Estate Revenues, NREF Portfolio Adjusted Occupancy REVPOR NREF Cash Count Investment excluding NREFS Amortization Cash Opex NOI Units % CCRC(2) Coll
Slide 36: Other
(1) Other As of and for the quarter ended December 31, 2020, dollars in thousands, except REVPOR SWF SH JV AT SHARE 1Q20 2Q20 3Q20 4Q20 Property count 19 19 19 19 Investment $ 420,944 $ 419,821 $ 419,000 $ 420,699 Units 3,317 3,317 3,317 3,317 Occupancy % 86.8 82.6 79.5 76.8 REVPOR Other $ 4,011 $ 3
Slide 37: Discontinued Operations Senior Housing Triple-net
Discontinued Operations Senior Housing Triple-net As of and for the quarter ended December 31, 2020, dollars in thousands, except REVPOR INVESTMENTS(1) Facility Portfolio Portfolio Occupancy REVPOR Facility EBITDAR Operator Investment Cash NOI Count Units %(2) Triple-Net EBITDARM CFC CFC(3) Brookdal
Slide 38: Discontinued Operations SHOP
Discontinued Operations SHOP As of and for the quarter ended December 31, 2020, dollars in thousands, except REVPOR INVESTMENTS(1)(2) Portfolio Portfolio Cash REVPOR Property Count Investment NOI(3)(4) Units Occupancy %(1) SHOP(1)(4)(5) Operator Sunrise Senior Living 35 $ 850,793 $ 9,474 3,619 66.9
Slide 39: Discontinued Operations Reconciliation
Discontinued Operations Reconciliation The results of discontinued operations through December 31, 2020, 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 opera
Slide 40: Pro Forma Results
Pro Forma Results As of and for the quarter ended December 31, 2020, dollars in thousands REPORTING UPDATES Healthpeak made the following reporting updates: ▪ During 2020, Healthpeak established and began executing a strategy to dispose of its senior housing triple-net and SHOP assets. As noted abov
Slide 41: 2021 Guidance & Additional Items
2021 Guidance & Additional Items Projected full year 2021, dollars in millions, except per share amounts Range of Outcomes(1) Low End High End Market Backdrop CCRCs & SWF SH JV − Occupancy inflection point during 3Q 2021 − Occupancy inflection point during 2Q 2021 Acquisitions / Leverage − $150M Acq
Slide 42: 2021 Guidance & Additional Items
2021 Guidance & Additional Items Projected full year 2021, dollars in millions, except per share amounts Range of Outcomes(1) Low End High End Other Supplemental Information - Cash Addition (Reduction) Amortization of deferred compensation $19 $21 Amortization of deferred financing costs $7 $11 Stra
Slide 43: Glossary
Glossary Adjusted Fixed Charge Coverage* Consolidated Secured Debt Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental Mortgage and other debt secured by real estate, as reported in our consolidated financial measure of liquidity and our ability to meet inter
Slide 44: Glossary
Glossary Enterprise Secured Debt* Fixed Charges* Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). JVs. Enterprise Secured Debt is a supplemental measure of our f
Slide 45: Glossary
Glossary Net Debt to Adjusted EBITDAre* Portfolio Income* Net Debt divided by Adjusted EBITDAre is a supplemental measure of our ability to decrease our Cash NOI plus interest income plus our pro rata share of Cash NOI from our unconsolidated JVs debt. Because we may not be able to use our cash to r
Slide 46: Glossary
Glossary REVPOR Triple-net Share of Consolidated Joint Ventures The 3-month average facility revenue per occupied unit, one quarter in arrears from the period Noncontrolling interests' pro rata share information is prepared by applying noncontrolling presented. Facility revenue consists primarily of
Slide 47: 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, 2020 December 31, 2020 Net income (loss) $ 150,245 $ 428,253 Interest expense 56,713 228,874 Income tax expense (benefit) (3,120)
Slide 48: Debt Ratios
Debt Ratios As of and for the quarter ended December 31, 2020, dollars in thousands ENTERPRISE DEBT AND NET DEBT December 31, 2020 (1) Includes mortgage debt of $318.9 million on assets held Bank line of credit and commercial paper $ 129,590 for sale that matures between 2025 and 2044. Term loan 249
Slide 49: Company Information
COMPANY Information BOARD OF DIRECTORS BRIAN G. CARTWRIGHT DAVID B. HENRY Chairman of the Board, Healthpeak Properties, Inc. Former Vice Chairman and Chief Executive Officer, Former General Counsel, Kimco Realty Corporation U.S. Securities and Exchange Commission LYDIA H. KENNARD THOMAS M. HERZOG Pr
Slide 50: Forward-Looking Statements & Risk Factors
Medical City Hospital Forward-Looking Statements Dallas, TX & 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 E
Slide 51: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements 2201 Medical Plaza Nashville, TN & Risk Factors (concluded) and its reliance on its partners’ financial condition and continued cooperation; competition for the acquisition and financing of suitable healthcare properties as well as competition for tenants and operators, in
Slide 52: Corporate HQ, Denver, CO
_________________________________________________________ Corporate HQ, Denver, CO 5050 South Syracuse Street, Suite 800 Denver, CO 80237 ________________________________________________________ Irvine, CA 1920 Main Street, Suite 1200 Irvine, CA 92614 (949) 407 - 0700 _______________________________
Healthpeak Properties — Q4 2020 Earnings Presentation on 6ix