Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Q3 2019 Earnings Presentation
58 slides from Healthpeak Properties's earnings presentation, Oct 30, 2019
Slide 1: Earnings Release and Supplemental Report
Discovery Village at Palm Beach Gardens Palm Beach Gardens, FL Earnings Release and Supplemental Report ___________________________________________________________________ Third Quarter 2019
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 and Indebtedness 17 Investment Summary 20 Developments and Redevelopments 22 Capital Expenditures 24 Portfolio Diversification 25 Expirations and
Slide 3: Healthpeak Reports Third Quarter 2019 Results
HealthpeakTM Reports Third Quarter 2019 Results IRVINE, CA, October 30, 2019 -- Healthpeak Properties, Inc., formerly known as HCP, Inc. (NYSE: HCP, to become "PEAK" effective November 5, 2019), today announced results for the third quarter ended September 30, 2019. For the quarter, Healthpeak gener
Slide 4: Same Property Portfolio Operating Summary
SAME PROPERTY PORTFOLIO OPERATING SUMMARY The table below outlines the year-over-year three month and nine month SPP Cash NOI growth: Year-Over-Year Total SPP Cash NOI Growth % of Total Three Nine YTD SPP Month Month Senior housing 26.2% (1.3%) (0.5%) Life science 28.0% 5.8% 6.3% Medical office 39.4
Slide 5: Brookdale CCRC and Triple-net Transactions
BROOKDALE CCRC AND TRIPLE-NET TRANSACTIONS On October 1, 2019, Healthpeak announced several transactions with Brookdale related to the 15-property CCRC joint venture and the 43-property triple-net portfolio that will improve Healthpeak’s operator diversification, strengthen the remaining Brookdale-o
Slide 6: Previously Announced Transaction Updates
PREVIOUSLY ANNOUNCED TRANSACTION UPDATES 35 CAMBRIDGEPARK DRIVE In September 2019, Healthpeak announced it executed a definitive agreement to acquire, for $332.5 million, a 224,000 square foot, LEED Gold® laboratory building located at 35 CambridgePark Drive in the Cambridge submarket of Boston, Mas
Slide 7: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements 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 include, am
Slide 8: Consolidated Balance Sheets
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited) September 30, 2019 December 31, 2018 Assets Real estate: Buildings and improvements $ 11,829,835 $ 10,877,248 Development costs and construction in progress 603,672 537,643 Land 2,017,28
Slide 9: Consolidated Statements of Operations
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenues: Rental and related revenues $ 312,600 $ 303,854 $ 908,019 $ 938,446 Resident fees and servi
Slide 10: Funds From Operations
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) Three Months Ended Nine Months Ended (1) For the nine months ended September 30, 2019, September 30, September 30, represents the gain related to the acquisition of the 2019 2018 2019 2018 outstanding e
Slide 11: Funds Available for Distribution
Healthpeak Properties, Inc. Funds Available for Distribution In thousands (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 FFO as adjusted applicable to common shares $ 220,572 $ 208,196 $ 645,538 $ 655,099 Amortization of deferred compensation(1) 3,71
Slide 12: Overview
The Numbers Overview (1) As of and for the quarter and nine months ended September 30, 2019, dollars, square feet, and shares in thousands, except per share data 3Q19 YTD 2019 (1) Reconciliations, definitions, and important discussions Financial Metrics regarding the usefulness and limitations of th
Slide 13: Portfolio Summary
Portfolio Summary As of and for the quarter ended September 30, 2019, dollars in thousands Property Average Portfolio Portfolio Private Count Age Investment Income Pay %(1) PORTFOLIO INCOME Wholly Owned Property Portfolio Senior housing triple-net 92 21 $ 1,713,538 $ 45,616 91.3 SHOP 128 19 3,907,75
Slide 14: Quarter NOI Summary
Quarter NOI Summary For the quarter ended September 30, 2019, dollars in thousands NOI SUMMARY NOI SPP NOI Real Estate Operating SPP Real Estate SPP Operating Revenues Expenses NOI(1) Revenues Expenses SPP NOI Wholly-Owned Senior housing triple-net $ 48,018 $ (865) $ 47,154 $ 34,797 $ (53) $ 34,744
Slide 15: Year-to-Date NOI Summary
Year-to-Date NOI Summary For the nine months ended September 30, 2019, dollars in thousands NOI SUMMARY NOI SPP NOI SPP Real Real Estate Operating Estate SPP Operating Revenues Expenses NOI(1) Revenues Expenses SPP NOI Wholly-Owned Senior housing triple-net $ 156,776 $ (2,723) $ 154,053 $ 100,661 $
Slide 16: Property Count Reconciliations
Property Count Reconciliations As of September 30, 2019 PROPERTY COUNT RECONCILIATION Senior Housing Life Medical Triple-net SHOP Science Office Other Total Prior Quarter Total Property Count 105 135 126 268 111 745 Acquisitions — 5 5 — — 10 Assets sold (13) (1) — (1) — (15) Planned demolition — — —
Slide 17: Capitalization
Capitalization Dollars and shares in thousands, except price per share data TOTAL CAPITALIZATION September 30, 2019 Shares Value Total Value Common stock (NYSE: HCP) 494,848 $ 35.63 $ 17,631,434 Convertible partnership (DownREIT) units 7,475 35.63 266,334 Total Market Equity 502,323 $ 17,897,768 Con
Slide 18: Indebtedness and Ratios
Indebtedness and Ratios As of September 30, 2019, dollars in thousands DEBT MATURITIES AND SCHEDULED PRINCIPAL REPAYMENTS (AMORTIZATION) Share of Unconsolidated Senior Unsecured Notes Mortgage Debt JV Debt Enterprise Debt Bank Line Consolidated of Credit(1) Term Loan(2) Amounts Rates %(3) Amounts Ra
Slide 19: Indebtedness and Ratios
Indebtedness and Ratios As of September 30, 2019, dollars in thousands, includes our pro rata share of unconsolidated JVs DEBT STRUCTURE Weighted Average Years to Balance % of Total Rates % Maturity Secured Fixed rate $ 308,370 5 4.12 11.5 Floating rate 272,486 4 4.72 2.4 Combined $ 580,856 9 4.40 7
Slide 20: Investment Summary
Investment Summary For the three and nine months ended September 30, 2019, dollars and square feet in thousands INVESTMENT SUMMARY Property Three Months Ended Nine Months Ended MSA Date Capacity Count Property Type September 30, 2019 September 30, 2019 ACQUISITIONS 87/101 CambridgePark Drive(1) Bost
Slide 21: Investment Summary
Investment Summary As of and for the nine months ended September 30, 2019, dollars and square feet in thousands ASSETS HELD FOR SALE Property Projected Sales Trailing Cash Capacity Count Price Yield(1) Various SHOP 1,647 Units 20 $ 128,860 Various Senior housing triple-net 2,134 Units 20 413,701 Var
Slide 22: Developments
Developments As of September 30, 2019, dollars and square feet in thousands DEVELOPMENT PROJECTS IN PROCESS Property Cost to Total at Project MSA Property Type Count CIP(1) Complete(1) Completion Wholly-Owned Ridgeview(2) San Diego, CA Life science 2 $ 31,021 $ 2,374 $ 33,395 Sorrento Summit San Die
Slide 23: Redevelopments and Land Held for Development
Redevelopments and Land Held for (1) Development As of September 30, 2019, dollars and square feet in thousands REDEVELOPMENT PROJECTS IN PROCESS Incremental Costs Estimated Property Property Placed in Cost to Project Completion (2) (3) Project MSA Type Count Service CIP Complete(3) Total Start Date
Slide 24: Capital Expenditures
Capital Expenditures For the three and nine months ended September 30, 2019, dollars in thousands, except per unit/square foot Senior Housing THIRD QUARTER Triple-net SHOP Life Science Medical Office Other Total Wholly-Owned Recurring capital expenditures $ 227 $ 5,197 $ 2,053 $ 4,227 $ — $ 11,704 T
Slide 25: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 2019, dollars in thousands, includes our pro rata share of unconsolidated JVs PORTFOLIO INCOME BY MSA Property Senior Housing Medical MSA Count(1) Triple-net SHOP Life Science Office Other Total % of Total San Francisco, CA 82 $
Slide 26: Portfolio Diversification
Portfolio Diversification As of and for the quarter ended September 30, 2019, dollars in thousands, includes our pro rata share of unconsolidated JVs PORTFOLIO INCOME BY OPERATOR/TENANT Tenant/Credit Exposure SHOP/Operator Exposure Senior % of % of Property Housing Life Medical Portfolio Property Po
Slide 27: Expirations and Maturities
Expirations and Maturities As of September 30, 2019, 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 2019(2) $ 38,256 4 $ — $ 11,416 $ 26,840 $ — $ — 2020(3) 111,26
Slide 28: 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 period required to calculate CFC, and master leases that include newly completed developments that are not Stabilized. Additionally, excludes a data point represent
Slide 29: Senior Housing Triple-net
Senior Housing Triple-net As of and for the quarter ended September 30, 2019, dollars in thousands, except REVPOR Facility Facility Property Occupancy REVPOR EBITDARM EBITDAR Property Portfolio Count Investment Cash NOI Units % Triple-Net CFC(1) CFC(1) Assisted/Independent living 90 $ 1,457,207 $ 40
Slide 30: Senior Housing Triple-net Same Property Portfolio
Senior Housing Triple-net Same Property Portfolio Dollars in thousands, except REVPOR 3Q18 4Q18 1Q19 2Q19 3Q19 Property count 72 72 72 72 72 Investment $ 1,365,578 $ 1,367,374 $ 1,368,091 $ 1,368,611 $ 1,369,627 Units 7,565 7,549 7,552 7,559 7,555 Occupancy % 86.3 86.3 86.5 85.9 85.1 REVPOR Triple-n
Slide 31: Senior Housing Triple-net New Supply
Senior Housing Triple-net New Supply As of and for the quarter ended September 30, 2019, dollars in thousands NEW SUPPLY ANALYSIS Senior Housing Triple-net Portfolio 5-Mile Radius(1) % of Cash NOI 5-Year 80+ Triple- Properties/ Exposed Population 80+ Median Median net Cash Units Under to New Growth
Slide 32: SHOP
SHOP As of and for the quarter ended September 30, 2019, dollars in thousands, except REVPOR INVESTMENTS Property REVPOR Count Investment Cash NOI Units Occupancy % SHOP Operator Sunrise Senior Living 39 $ 926,668 $ 13,090 3,855 81.7 $ 7,331 Brookdale Senior Living 25 841,232 11,818 3,808 86.2 3,971
Slide 33: SHOP MSA
SHOP MSA As of and for the quarter ended September 30, 2019, dollars in thousands, except REVPOR OPERATING PORTFOLIO METRICS Units(1) REVPOR SHOP(1) % of SHOP Occupancy MSA Investment Cash NOI Cash NOI AL IL % AL IL Houston, TX $ 353,232 $ 5,503 11.8 311 1,723 87.3 $ 4,841 $ 2,918 New York, NY 197,2
Slide 34: SHOP Same Property Portfolio (Core)
SHOP Same Property Portfolio Dollars in thousands, except REVPOR CORE Sequential Year-Over- 3Q18 4Q18 1Q19 2Q19 3Q19 Growth Year Growth Property count 28 28 28 28 28 — — Investment $ 967,253 $ 977,822 $ 981,180 $ 987,207 $ 994,253 0.7 % 2.8 % Units 3,936 3,936 3,935 3,936 3,936 — % — % Occupancy % 9
Slide 35: SHOP Same Property Portfolio (Total)
SHOP Same Property Portfolio Dollars in thousands, except REVPOR TOTAL Sequential Year-Over- 3Q18 4Q18 1Q19 2Q19 3Q19 Growth Year Growth Property count 48 48 48 48 48 — — Investment $ 1,409,953 $ 1,425,542 $ 1,428,333 $ 1,436,296 $ 1,446,582 0.7 % 2.6 % Units 6,543 6,542 6,542 6,543 6,541 — % — % Oc
Slide 36: SHOP New Supply
SHOP New Supply As of and for the quarter ended September 30, 2019, dollars in thousands NEW SUPPLY ANALYSIS SHOP 5-Mile Radius(1) Cash NOI 5-Year 80+ % of Properties/ Exposed Population 80+ Median SHOP Units Under to New Growth % Penetration Household Median Unemploy- MSA Units Cash NOI Cash NOI Co
Slide 37: Life Science
Life Science As of and for the quarter ended September 30, 2019, dollars and square feet in thousands INVESTMENTS(1) Property Cash Square Occupancy MSA Count Investment NOI Feet % San Francisco, CA 75 $ 3,255,923 $ 57,595 4,715 96.8 San Diego, CA 32 830,920 14,457 2,031 97.6 Boston, MA 7 547,323 6,3
Slide 38: Life Science Lease Expirations and Tenant Concentration
Life Science As of September 30, 2019, 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 Ba
Slide 39: Life Science Leasing Activity
Life Science Square feet in thousands LEASING ACTIVITY Annualized Our Tenant Leased Base Rent % Change in Improvements Leasing Costs Average Lease Retention Square Feet Per Sq. Ft. Cash Rents per Sq. Ft. per Sq. Ft. Term (Months) Rate YTD Leased Square Feet as of June 30, 2019 7,283 $ 45.52 Acquisit
Slide 40: Medical Office
Medical Office As of and for the quarter ended September 30, 2019, dollars and square feet in thousands PORTFOLIO BY MARKET(1) Square Feet On-campus(2) Off-campus(3) Total Property Occupancy MSA Count Investment Cash NOI % Multi-tenant Single-tenant Multi-tenant Single-tenant Multi-tenant Single-ten
Slide 41: Medical Office Square Feet by Health System
Medical Office As of and for the quarter ended September 30, 2019, 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 Anchored(2) Adjacent(2) Off-Campus Total % of Total % Squa
Slide 42: Medical Office Lease Expirations and Same Property
Medical Office As of and for the quarter ended September 30, 2019, 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 43: Other Wholly-owned
Other Wholly-owned As of and for the quarter ended September 30, 2019, dollars in thousands LEASED PROPERTIES Facility Facility (1) Certain operators in our hospital portfolio are Property Occupancy EBITDARM EBITDAR not required under their respective leases to Type/Operator Count Investment Cash NO
Slide 44: Other Unconsolidated JVs
Other Unconsolidated JVs(1) As of and for the quarter ended September 30, 2019, dollars and square feet in thousands Other SHOP Medical SELECTED FINANCIAL DATA AT 100% Total CCRC JV JVs U.K. JV Office Remaining Joint ventures' Investment $ 2,327,251 $ 1,509,977 $ 262,636 $ 492,697 $ 52,365 $ 9,576 J
Slide 45: Other Unconsolidated JV Capital
Other Unconsolidated JV Capital Represents our pro rata share of unconsolidated JVs for the three and nine months ended September 30, 2019, dollars in thousands UNCONSOLIDATED JV CAPITAL Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 FAD capital expenditures $ 1,432 $ 3,6
Slide 46: Other CCRC JV
Other CCRC JV Dollars in thousands, except REVPOR CCRC JV 3Q18 4Q18 1Q19 2Q19 3Q19 Property count 15 15 15 15 15 Units 7,268 7,273 7,269 7,270 7,272 Occupancy % 85.5 85.7 85.8 85.7 85.1 REVPOR(1) $ 5,188 $ 5,206 $ 5,208 $ 5,262 $ 5,243 SHARE OF CCRC JV Investment $ 723,044 $ 729,503 $ 733,817 $ 739,
Slide 47: 2019 Guidance
2019 Guidance Projected full year 2019, dollars in millions, except per share amounts Full Year 2019 Guidance (October 30, 2019) Net income, FFO and FFO as Adjusted per Share Guidance Diluted earnings per common share $0.05 - $0.11 Diluted NAREIT FFO per common share $1.62 - $1.66 Diluted FFO as adj
Slide 48: Glossary
Glossary Adjusted Fixed Charge Coverage* Consolidated Gross Assets* Adjusted EBITDAre divided by Fixed Charges. Adjusted Fixed Charge Coverage is a supplemental The carrying amount of total assets, excluding investments in and advances to our unconsolidated measure of liquidity and our ability to me
Slide 49: Glossary
Glossary Enterprise Gross Assets* Fixed Charges* Consolidated Gross Assets plus our pro rata share of total gross assets from our unconsolidated Total interest expense plus capitalized interest plus preferred stock dividends (if applicable). Fixed JVs, after adding back accumulated depreciation and
Slide 50: Glossary
Glossary Net Debt* Real Estate Revenues* Enterprise Debt less the carrying amount of cash and cash equivalents as reported in our Real Estate Revenues include rental related revenues, tenant recoveries, resident fees and services consolidated financial statements and our pro rata share of cash and c
Slide 51: Glossary
Glossary Secured Debt Ratio* Enterprise Secured Debt divided by Enterprise Gross Assets. Secured Debt Ratio 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. Share of Uncons
Slide 52: 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, 2019 Net income (loss) $ (42,308) Interest expense 61,230 Income tax expense (benefit) (6,261) Depreciation and amortization 171,944 Other depreciati
Slide 53: Debt Ratios
Debt Ratios As of and for the quarter ended September 30, 2019, dollars in thousands ENTERPRISE DEBT AND NET DEBT September 30, 2019 Bank line of credit(1) $ 737,793 Term loan 248,882 Senior unsecured notes 5,253,639 Mortgage debt(2) 307,643 Other debt 85,069 Consolidated Debt $ 6,633,026 Share of u
Slide 54: 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 55: Aegis Living Dana Point
Aegis Living Dana Point Dana Point, CA 55 Returnto Return toTOC TOC
Slide 56: Forward-Looking Statements & Risk Factors
Swedish Medical Center Forward-Looking Statements Seattle, WA & 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 Securitie
Slide 57: Forward-Looking Statements & Risk Factors (concluded)
Forward-Looking Statements Atria Woodbridge Irvine, CA & Risk Factors (concluded) and the renewal or rollover of existing leases; the Company’s or its counterparties’ ability to fulfill obligations, such as financing conditions and/or regulatory approval requirements, required to successfully consum
Slide 58: Corporate HQ and Office Contacts
Data Format: Vivian/April _________________________________________________________ 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 — Q3 2019 Earnings Presentation on 6ix