Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q1 2020 Earnings Presentation
54 slides from Healthpeak Properties's earnings presentation, May 5, 2020
Slide 1: Earnings Release and Supplemental Report
The Post Boston, MA Earnings Release and Supplemental Report ___________________________________________________________________ First Quarter 2020
Slide 2: Table of Contents
TABLE OF Contents Earnings Release 3 Consolidated Financial Statements 7 Overview 11 Portfolio Summary 12 Property Count Reconciliations 14 Capitalization and Indebtedness 15 Investment Summary 18 Developments and Redevelopments 20 Capital Expenditures 22 Portfolio Diversification 23 Expirations, Ma
Slide 3: Healthpeak Properties Reports First Quarter 2020 Results
Healthpeak PropertiesTM Reports First Quarter 2020 Results IRVINE, CA, May 5, 2020 -- Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the first quarter ended March 31, 2020. For the quarter, we generated net income of $0.54 per share, NAREIT FFO of $0.34 per share, FFO as Adjust
Slide 4: First Quarter Comparison
FIRST QUARTER COMPARISON Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 (in thousands, except per share amounts) Amount Per Share Amount Per Share Net income (loss), diluted $ 279,979 $ 0.54 $ 61,029 $ 0.13 NAREIT FFO, diluted 173,186 0.34 207,831 0.43 FFO as Adjusted, diluted 2
Slide 5: April 2020 Preliminary Updates
APRIL 2020 PRELIMINARY UPDATES April 2020 data based on preliminary information and is subject to change. (SF = square feet) Indicator As of, or for the month ended, April 30, 2020 Commentary LIFE SCIENCE Occupancy 94.7% Up 40 bps since March 31 April Leasing 61,000 SF of executed leases (includes 1
Slide 6: 2020 Guidance Update
2020 GUIDANCE UPDATE In March 2020, Healthpeak withdrew previously provided guidance due to uncertainty related to the COVID-19 pandemic. Please see pages 42 and 43 in the First Quarter 2020 Supplemental Report for more information. COMPANY INFORMATION Healthpeak has scheduled a conference call and
Slide 7: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited) March 31, 2020 December 31, 2019 Assets Real estate: Buildings and improvements $ 12,720,111 $ 11,120,039 Development costs and construction in progress 588,343 692,336 Land 2,114,024 1,
Slide 8: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) Three Months Ended March 31, 2020 2019 Revenues: Rental and related revenues $ 314,688 $ 294,222 Resident fees and services 263,505 126,695 Income from direct financing leases 3,269 13,5
Slide 9: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended (1) For the three months ended March 31, 2020, relates to March 31, the gain on consolidation of 13 continuing care 2020 2019 retirement communities in which we acquired Brookdale's i
Slide 10: Adjusted Funds From Operations
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (unaudited) Three Months Ended March 31, 2020 2019 FFO as Adjusted applicable to common shares $ 227,013 $ 212,025 Amortization of deferred compensation 3,987 3,590 Amortization of deferred financing costs 2,582 2,699 Straight-l
Slide 11: Overview
The Numbers Overview (1)(2) As of and for the quarter ended March 31, 2020, dollars, square feet, and shares in thousands, except per share data (1) Reconciliations, definitions, and important discussions regarding the usefulness and limitations of the non-GAAP 1Q20 financial measures used in this r
Slide 12: Portfolio Summary
Portfolio Summary As of and for the quarter ended March 31, 2020, dollars in thousands Weighted Property Average Portfolio Portfolio Private Count Age(1) Investment Income Pay %(2) PORTFOLIO INCOME(4) Property Portfolio Senior housing triple-net 64 18 $ 1,035,192 $ 29,255 92.8 SHOP 131 18 3,461,980
Slide 13: Quarter NOI Summary
Quarter NOI Summary For the quarter ended March 31, 2020, dollars in thousands PORTFOLIO NOI SUMMARY Portfolio NOI SS NOI Portfolio Real Portfolio Estate Operating SS Real Estate SS Operating Revenues Expenses Portfolio NOI Revenues Expenses SS NOI Senior housing triple-net $ 33,135 $ (506) $ 32,629
Slide 14: Property Count Reconciliations
Property Count Reconciliations As of March 31, 2020 PROPERTY COUNT RECONCILIATION Senior Housing Life Medical Triple-net SHOP CCRC Science Office Other Total Prior Quarter Total Property Count 90 115 — 134 267 59 665 Policy change to include unconsolidated JVs within segments — 28 2 — 3 (33) — Asset
Slide 15: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION March 31, 2020 Shares Value Total Value Common stock (NYSE: PEAK) 538,135 $ 23.85 $ 12,834,520 Convertible partnership (DownREIT) units 7,424 23.85 177,062 Total Market Equity 545,559 $ 13,011,582 Consol
Slide 16: Indebtedness and Ratios
Indebtedness and Ratios As of March 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) Amount
Slide 17: Indebtedness and Ratios
Indebtedness and Ratios As of March 31, 2020, dollars in thousands DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 517,866 8 3.95 8.8 Floating rate 50,135 1 3.95 2.1 Combined $ 568,001 9 3.95 8.2 Unsecured Fixed rate 5,700,000 87 3.94 6.7 Floating ra
Slide 18: Investment Summary
Investment Summary For the three months ended March 31, 2020, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended MSA Date Capacity Count Property Type March 31, 2020 ACQUISITIONS CCRC(1) Various January 6,383 Units 13 CCRC $ 540,600 OTHER INVESTMENTS Development fund
Slide 19: Investment Summary
Investment Summary As of and for the three months ended March 31, 2020, dollars and square feet in thousands ASSETS HELD FOR SALE Property Projected Sales Trailing Cash Property Type Capacity Count Price Yield(1) SHOP 2,436 Units 27 $ 253,036 Senior housing triple-net 741 Units 9 67,393 Medical offi
Slide 20: Developments
Developments As of March 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 Stabilized(2
Slide 21: Redevelopments and Land Held for Development
Redevelopments and Land Held for (1) Development As of March 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) (3) Project MSA Type Count Service CIP C
Slide 22: Capital Expenditures
Capital Expenditures For the three months ended March 31, 2020, dollars in thousands, except per unit/square foot Senior Housing FIRST QUARTER Triple-net SHOP CCRC Life Science Medical Office Other Total Portfolio at share Recurring capital expenditures $ — $ 3,970 $ 2,155 $ 672 $ 1,967 $ — $ 8,764
Slide 23: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended March 31, 2020, dollars in thousands PORTFOLIO INCOME BY MSA Property Senior Housing Medical MSA Count(1) Triple-net SHOP CCRC Life Science Office Other Total % of Total San Francisco, CA 84 $ 1,443 $ 2,834 $ — $ 66,658 $ 825 $ — $ 71,759 24
Slide 24: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended March 31, 2020, dollars in thousands PORTFOLIO INCOME BY OPERATOR/TENANT Tenant/Credit Exposure Operator Exposure Senior % of % of Property Housing Life Medical Portfolio Property Portfolio Operator/Tenant Count(1) Triple-net Science Office O
Slide 25: Expirations, Maturities and Purchase Options
Expirations, Maturities and Purchase Options As of March 31, 2020, dollars in thousands EXCLUDES PURCHASE AND PREPAYMENT OPTIONS Annualized Base Rent(1) Senior Housing Medical Interest Year Total % of Total Triple-net Life Science Office Other Income 2020(2)(3) $ 81,532 8 $ 4,765 $ 8,022 $ 67,480 $
Slide 26: Triple-Net Master Lease Profile
(1)(2) Triple-Net Master Lease Profile (1) Excludes properties held for sale or sold, master leases with properties acquired during the % of Weighted period required to calculate CFC, and master leases that include newly completed Portfolio Cash Average NOI and # of Leases/ Maturity in developments
Slide 27: Senior Housing Triple-net
Senior Housing Triple-net As of and for the quarter ended March 31, 2020, dollars in thousands, except REVPOR INVESTMENTS(1) Facility Facility Portfolio Portfolio Occupancy REVPOR EBITDARM EBITDAR Operator Investment Cash NOI Count Units % Triple-Net CFC CFC Brookdale Senior Living $ 456,167 $ 13,94
Slide 28: Senior Housing Triple-net New Supply
Senior Housing Triple-net New Supply As of and for the quarter ended March 31, 2020, dollars in thousands NEW SUPPLY ANALYSIS Senior Housing Triple-net Portfolio 5-Mile Radius(1) Portfolio Cash 5-Year 80+ % of Triple- Properties/ NOI Exposed Population 80+ Median Median Portfolio net Portfolio Units
Slide 29: SHOP
(1) SHOP As of and for the quarter ended March 31, 2020, dollars in thousands, except REVPOR INVESTMENTS Property Portfolio Portfolio Cash REVPOR Count Investment NOI(2) Units Occupancy % SHOP Operator Sunrise Senior Living 38 $ 867,658 $ 11,088 3,746 83.8 $ 7,535 Oakmont Senior Living 12 575,087 9,
Slide 30: SHOP MSA
SHOP MSA As of and for the quarter ended March 31, 2020, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS Units(1) REVPOR SHOP(1) % of SHOP Portfolio Portfolio Portfolio Occupancy MSA Investment Cash NOI Cash NOI AL IL % AL IL Los Angeles, CA $ 307,411 $ 4,301 10.5 677 — 89.9 $ 8,839
Slide 31: SHOP Same-Store
SHOP Same-Store Dollars in thousands, except REVPOR Sequential Year-Over- 1Q19 2Q19 3Q19 4Q19 1Q20 Growth Year Growth Property count 50 50 50 50 50 — — Portfolio Investment $ 1,075,517 $ 1,088,387 $ 1,095,926 $ 1,084,460 $ 1,088,167 0.3% 1.2 % Units 6,677 6,678 6,678 6,678 6,675 —% — % Occupancy % 8
Slide 32: SHOP Non-Same-Store
SHOP Non-Same-Store(1)(2) Dollars in thousands, except REVPOR 2Q19 3Q19 4Q19 1Q20 Property Portfolio Property Portfolio Property Portfolio Property Portfolio Count Cash NOI Count Cash NOI Count Cash NOI Count Cash NOI Same-Store 39 $ 20,550 48 $ 20,815 29 $ 10,591 50 $ 17,938 Segment conversions(3)
Slide 33: SHOP New Supply
SHOP New Supply As of and for the quarter ended March 31, 2020, dollars in thousands NEW SUPPLY ANALYSIS SHOP 5-Mile Radius(1) % of 5-Year 80+ SHOP Properties/ Portfolio Cash NOI Population 80+ Median Portfolio Portfolio Units Under Exposed to New Growth % Penetration Household Median Unemploy- MSA
Slide 34: CCRC
CCRC Dollars in thousands, except REVPOR CCRC Portfolio Real Portfolio Property Portfolio Estate Revenues, NREF Portfolio Adjusted Occupancy REVPOR NREF Cash Count Investment excluding NREFS Amortization Cash Opex NOI(1) Units % CCRC Collections Operator Life Care Services(2) 13 $ 1,809,287 $ 60,128
Slide 35: Life Science
Life Science As of and for the quarter ended March 31, 2020, dollars and square feet in thousands INVESTMENTS(1) Property Portfolio Portfolio Cash Square Occupancy MSA Count Investment NOI Feet % San Francisco, CA 77 $ 3,577,351 $ 66,658 5,041 93.9 San Diego, CA 34 920,869 14,298 2,109 95.2 Boston,
Slide 36: Life Science
Life Science As of March 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 Base R
Slide 37: Life Science
Life Science Square feet in thousands LEASING ACTIVITY Annualized Tenant Trailing Twelve Leased Base Rent % Change in Improvements Leasing Costs Average Lease Month Retention Square Feet Per Sq. Ft. Cash Rents per Sq. Ft.(1) per Sq. Ft.(1) Term (Months) Rate Leased Square Feet as of December 31, 201
Slide 38: Medical Office
Medical Office As of and for the quarter ended March 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 Multi-t
Slide 39: Medical Office
Medical Office As of and for the quarter ended March 31, 2020, square feet in thousands SQUARE FEET BY HEALTH SYSTEM Square Feet Directly Leased by Health System Health System Credit % of Annualized Health System Rank(1) Rating On-Campus Adjacent(2) Anchored(2) Off-Campus Total % of Total % Square F
Slide 40: Medical Office
Medical Office As of and for the quarter ended March 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(2)
Slide 41: Other Wholly-owned
Other Wholly-owned As of and for the quarter ended March 31, 2020, dollars in thousands LEASED PROPERTIES Facility Facility Property Portfolio Portfolio Occupancy EBITDARM EBITDAR Type/Operator Count Investment Cash NOI Beds %(1) CFC(1) CFC(1) Hospitals 10 $ 254,561 $ 11,949 930 50.2 4.07x 3.71x Oth
Slide 42: 2020 Outlook & Additional Information
2020 Outlook & Additional Information Projected full year 2020, dollars in millions, except per share amounts Please note that the figures provided on these pages do not represent guidance, but an outlook to help quantify the potential outcomes and impacts from COVID-19. Same-Store Update Full Year
Slide 43: 2020 Outlook & Additional Information
2020 Outlook & Additional Information Dollars in millions, except per share data Known Items Type of Impact FFO Per Share Commentary Acceleration of equity forwards Timing Only $(0.035) Reflects accelerated settlement of $1.06B compared to withdrawn guidance Acceleration of Frost Street PO Timing On
Slide 44: 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 45: Glossary
Glossary Enterprise Secured Debt* Fixed Charges* Consolidated Secured Debt plus our pro rata share of mortgage debt from our unconsolidated JVs. Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed Enterprise Secured Debt is a supplemental measure of
Slide 46: 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 47: Glossary
Glossary RIDEA Share of Unconsolidated Joint Ventures ("JVs") A structure whereby a taxable REIT subsidiary is permitted to rent a healthcare facility from its Our pro rata share information is prepared by applying our actual ownership percentage for the parent REIT and hire an independent contracto
Slide 48: Adjusted EBITDAre and Adjusted Fixed Charge Coverage
Adjusted EBITDAre and Adjusted Debt Ratios Fixed Charge Coverage Dollars in thousands NET INCOME TO ADJUSTED EBITDAre Three Months Ended March 31, 2020 Net income (loss) $ 282,540 Interest expense 58,376 Income tax expense (benefit) (33,044) Depreciation and amortization 189,276 Other depreciation a
Slide 49: Debt Ratios
Debt Ratios As of and for the quarter ended March 31, 2020, dollars in thousands ENTERPRISE DEBT AND NET DEBT March 31, 2020 (1) Includes mortgage debt of $27.8 million on assets held for Bank line of credit and commercial paper $ — sale that matures in 2044. Term loan 249,002 (2) Represents the cur
Slide 50: 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 51: Patewood Hospital, Greenville, SC
Patewood Hospital Greenville, SC 51 51 Returnto Return Return toTOC to TOC TOC
Slide 52: 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 53: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements 2201 Medical Plaza Nashville, TN & Risk Factors (concluded) making authority 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
Slide 54: Corporate HQ, Irvine, CA
_________________________________________________________ Corporate HQ, Irvine, CA 1920 Main Street, Suite 1200 Irvine, CA 92614 (949) 407 - 0700 ________________________________________________________ San Francisco, CA 950 Tower Lane, Suite 1650 Foster City, CA 94404 ______________________________
Healthpeak Properties — Q1 2020 Earnings Presentation on 6ix