Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q2 2022 Earnings Presentation
48 slides from Healthpeak Properties's earnings presentation, Aug 2, 2022
Slide 1: Earnings Release and Supplemental Report Second Quarter 2022
and Supplemental Report AW Earnings Release —= \r- Healthpeak Second Quarter 2022 dephallsae
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 7 Overview 1 Portfolio Summary 12 Property Count Reconciliations 15 Capitalization 16 Indebtedness 7 Investment Summary 19 Developments and Redevelopments 20 Capital Expenditures 22 Portfolio Diversification 23 Portfolio Life Sci
Slide 3: Healthpeak Properties Reports Second Quarter 2022 Results
Healthpeak Properties Reports Second Quarter 2022 Results DENVER, August 2, 2022 - Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the second quarter ended June 30, 2022. SECOND QUARTER 2022 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS - Net income of $0.13 per share, Nareit FFO
Slide 4: Same-Store Operating Summary
SAME-STORE ("SS") OPERATING SUMMARY The table below outlines the year-over-year three-month SS Cash (Adjusted) NOI growth on an actual and pro forma basis. The Pro Forma table reflects the results excluding government grants under the CARES Act for our CCRC portfolio. Actual Year-Over-Year Total SS
Slide 5: The Boardwalk, The Shore at Sierra Point, Acquisitions
THE BOARDWALK During the second quarter, Healthpeak placed in service the remaining 74,000 square feet, representing $48 million of investment, at The Boardwalk, located in the Torrey Pines submarket of San Diego. The $179 million Class A development is targeting LEED Gold certification, encompasses
Slide 6: Company Information
COMPANY INFORMATION Healthpeak has scheduled a conference call and webcast for Wednesday, August 3, 2022, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to review its financial and operating results for the quarter ended June 30, 2022. The conference call is accessible by dialing (888) 317-600
Slide 7: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data June 30, 2022 December 31, 2021 Assets Real estate: Buildings and improvements $ 12,590,403 $ 12,025,271 Development costs and construction in progress 675,713 877,423 Land 2,705,260 2,603,964 Accum
Slide 8: 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 9: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income (loss) applicable to common shares 68,057 $ 275,993 $ 137,693 $ 419,336 Real estate related depreciation and amortization 180,489
Slide 10: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 FFO as Adjusted applicable to common shares $ 236,478 $ 217,242 $ 471,295 $ 432,635 Amortization of stock-based compensation 5,300 5,095 10,021 9,459 Amor
Slide 11: The Numbers
The Numbers Overview) As of and for the quarter and six months ended June 30, 2022, dollars, square feet, and shares in thousands, except per share data 2022 YTD 2022 Financial Metrics Diluted earnings per common share $0.13 $0.26 Diluted Nareit FFO per common share $0.44 $0.89 Diluted FFO as Adjust
Slide 12: Portfolio Summary
Portfolio Summar As of and for the quarter ended June 30, 2022, dollars in thousands, excludes discontinued operations Property Weighted Portfolio Portfolio Count Average Age” —_ Investment Income Property Portfolio Life science 138 15$ 7,734,825 $ 137,422 PORTFOLIO INCOME“ Medical office 290 24 6,0
Slide 13: Quarter NOI Summary
Quarter NOI Summar For the quarter ended June 30, 2022, dollars in thousands, excludes discontinued operations PORTFOLIO NOI SUMMARY SS Portfolio NOI Portfolio NOI Portfolio SS Portfolio SS Portfolio Portfolio Real Operating Real Estate Operating Estate Revenues Expenses Portfolio NOI Revenues Expen
Slide 14: Year-To-Date NOI Summary
Year-To-Date NOI Summar For the six months ended June 30, 2022, 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 Portfolio NOI
Slide 15: Property Count Reconciliations
Count Reconciliations As of June 30, 2022 PROPERTY COUNT RECONCILIATION Medical Life Science Office cCRC Other Total Prior Quarter Total Property Count 149 300 15 19 483 Acquisitions - 1 - - 1 Assets sold - (3) = = (3) Current Quarter Total Property Count 149 298 15 19 481 Acquisitions (5) (28) - -
Slide 16: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION June 30, 2022 Shares Value Total Value Common stock (NYSE: PEAK) 539,580 $ 25.91 $ 13,980,518 Convertible partnership (DownREIT) units 7,317 25.91 189,583 Total Market Equity 546,897 $ 14,170,101 Consoli
Slide 17: Indebtedness
Indebtedness As of June 30, 2022, 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”) — R
Slide 18: Indebtedness
Indebtedness As of June 30, 2022, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 372,469 6 4.18 3.3 Floating rate 14,728 _ 4.33 25 Combined $ 387,197 6 4.19 3.3 Unsecured Fixed rate 4,700,000 72 3.39 6.6 Floating rate 1,448,569
Slide 19: Investment Summary
Investment Summar As of and for the six months ended June 30, 2022, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Six Months Ended MsA Date Capacity Count _Property Type June 30, 2022 June 30, 2022 ACQUISITIONS 67 Smith Place land parcel Boston, MA January - - L
Slide 20: Developments In Process
Develo @ ments In Process As of June 30, 2022, 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 ount CIP?) Complete”) Completion (Sq. Ft.) Leased Start Occupancy Life Science The Shore
Slide 21: Redevelopments and Land Held for Development
Redevelopments and Land Held for Develooment As of June 30, 2022, dollars and square feet in thousands; includes JV projects at share REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Estimated Property Property Cost to Project Completion Project” MSA Type Count CIP? Complete”) Total Start Date” 6
Slide 22: Capital Expenditures
Capital Expenditures!) For the three and six months ended June 30, 2022, dollars in thousands, except per unit/square foot, excludes discontinued operations SECOND QUARTER Life Science Medical Office ccRC Other Total Portfolio at share Recurring capital expenditures $ 973 $ 3,011 $ 3,976 $ 819 $ 8,7
Slide 23: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended June 30, 2022, 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 81 $ 84,511 $ 1,013 $ — $ — $ 85,523 31 Boston, M
Slide 24: Life Science
Life Science As of and for the quarter ended June 30, 2022, dollars and square feet in thousands INVESTMENTS) Property Portfolio (Adjusted) square Occupancy Annualized MSA Count Investment NOI Feet % Base Rent % San Francisco, CA 80 $ 4,083,392 $ 84,511 5,444 97.9 60.1 Boston, MA 19 2,221,702 30,435
Slide 25: Life Science Tenant Concentration
Life Science As of June 30, 2022, dollars and square feet in thousands TENANT CONCENTRATION” "Weighted Leased Square | Annualized Average Feet Base Rent” Remaining Market Cap Lease Term % of % of Parent Name (in millions) in Years | Amount —_‘Total| = Amount _Total Amgen $ 129,971 2.0 623 6 $ 50,811
Slide 26: Life Science Lease Expirations
As of June 30, 2022, 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”) Feet Bas
Slide 27: Life Science Leasing Activity
Life Science As of June 30, 2022, dollars and square feet in thousands, presented at 100% 2022 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 (Month
Slide 28: Life Science Lease and Ownership Type
Life Science As of and for the quarter ended June 30, 2022, dollars and square feet in thousands LEASE TYPE Annualized Base Rent San Francisco Boston San Diego _ Remaining Total % of Total Triple-Net™ $ 319,764 $ 105,897 $ 92,534 $ 6,780 $ 524,975 92.4 Base Year” 21,093 16,812 3,619 - 41,524 73 Gros
Slide 29: Medical Office
Medical Office As of and for the quarter ended June 30, 2022, dollars and square feet in thousands PORTFOLIO BY MARKET” Total 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 30: Medical Office Same-Store
Medical Office Same-S As of and for the quarter ended June 30, 2022, dollars and square feet in thousands SAME-STORE 2021 3021 4021 1022 2022 Property Count 247 247 247 247 247 Portfolio Investment $ 4,575,281 $ 4,601,196 $ 4,638,884 $ 4,664,032 $ 4,689,666 Square Feet 20,091 20,100 20,099 20,097 20
Slide 31: Medical Office Square Feet by Health System
Medical Office As of and for the quarter ended June 30, 2022, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Total Square Feet Weighted % Directly _ Average Leased by Remaining Property _—_Credit Unaffiliated %of Health Lease Health System unt Rating On-Campus Adjacent” Anchored" Off-Campus T
Slide 32: Medical Office Lease Expiration Data
Medical Office As of and for the quarter ended June 30, 2022, 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" 1,598 74
Slide 33: Medical Office Leasing Activity
Medical Office As of June 30, 2022, dollars and square feet in thousands, presented at 100% 2022 LEASING ACTIVITY Annualized Tenant _Leasing Leased Base Rent Per %Changein Improvements Costs per Average Lease Month Retention Square Feet Sq. Ft. Cash Rents” per Sq. Ft.2 Sq. Ft.2_ Term (Months) Rate L
Slide 34: Medical Office Lease Type and Provider Specialty
Medical Office As of and for the quarter ended June 30, 2022, 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™ 71,491 634 1,868 1
Slide 35: CCRC
CCRC As of and for the quarter ended June 30, 2022, 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 Operator Life
Slide 36: CCRC Same-Store
CC R C |same-Store As of and for the quarter ended June 30, 2022, dollars in thousands, except REVPOR SAME-STORE Sequential Year-Over- 2021 3021 4021 1022 2022 Growth Year Growth Property count 15 15 15 15 15 = = Net Portfolio Investment $ 1,416,858 $ 1,432,162 $ 1,458656 $ 1,474,262 $ 1,484,906 0.7
Slide 37: Sovereign Wealth Fund Senior Housing JV
As of and for the quarter ended June 30, 2022, dollars in thousands, except REVPOR SOVEREIGN WEALTH FUND SENIOR HOUSING JV AT SHARE 2021 3021 4021 1022 2022 Property count 19 19 19 19 19 Investment 437,201 $ 455,743 $ 457,870 $ 458,352 $ 460,543 Units 3,354 3,354 3,354 3,354 3,354 Occupancy % 72.4 7
Slide 38: 2022 Guidance & Additional Items
2022 Guidance & Additional Items Projected full year 2022, dollars in millions, except per share Bolded items represent updates from previous Guidance ranges and assumptions Full Year 2022 Guidance (August 2, 2022) 2022 Guidance Diluted earnings per common share $0.97 - $1.03 Diluted Nareit FFO per
Slide 39: 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 40: 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 41: 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 42: 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 June 30, 2022 (1) This amount can be reconciled by combining the balances Net income (loss) $ 72,293 from the corresponding line of the Consolidated Statements In
Slide 43: Debt Ratios
Debt Ratios As of and for the quarter ended June 30, 2022, dollars in thousands ENTERPRISE DEBT AND NET DEBT June 30, 2022 Bank line of credit and commercial paper $ 1,448,569 Senior unsecured notes 4,655,852 Mortgage debt 349,329 Consolidated Debt $ 6,453,750 Share of unconsolidated JV mortgage deb
Slide 44: 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 KATHERINE M. SANDSTROM Vice Chair of the Board, Healthpeak Properties, Inc. Former Senior Managing Director, Heitman LLC THOMA
Slide 45: The Towers at Sierra Point (Conceptual Rendering)
Slide 46: 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. Forward-looking statements include, among o
Slide 47: Forward-Looking Statements & Risk Factors (continued)
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 CARES Act Provider Relief Fund and other Covid-related
Slide 48: Corporate HQ, Denver, CO
Corporate HQ, 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 South San Francisco, CA 2000 Sierra Point Parkway,
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