Healthpeak Properties, Inc. (NYSE: PEAK), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, today announced results for the third quarter ended September 30, 2023.
THIRD QUARTER 2023 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
| – | Net income of $0.12 per share, Nareit FFO of $0.46 per share, FFO as Adjusted of $0.45 per share, AFFO of $0.40 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 6.0% | ||
| – | Third quarter new and renewal lease executions totaled 2.3 million square feet: | ||
| • | Outpatient Medical new and renewal lease executions totaled 2.1 million square feet, an all-time quarterly high, including a 1.3 million square foot renewal at Medical City Dallas | ||
| • | Lab new and renewal lease executions totaled 211,000 square feet, including leases at three trophy campuses: | ||
| • | 101,000 square feet at 331 Oyster Point in South San Francisco, California |
||
| • | 61,000 square feet at 75 Hayden in Lexington, Massachusetts |
||
| • | 23,000 square foot development lease at Vantage in South San Francisco, California, bringing the project to 52% pre-leased |
||
| – | In September 2023, the Cambridge City Council unanimously approved a comprehensive rezoning to allow for greater density and developable heights in the West Cambridge neighborhood of Alewife, where Healthpeak owns a total of 39 acres | ||
| – | Net debt to Adjusted EBITDAre was 5.2x as of September 30, 2023 | ||
| – | Updated full year 2023 diluted earnings guidance to a range of $0.53 – $0.55 per share; increased the midpoint of 2023 FFO as Adjusted guidance by $0.02 per share and increased Total Portfolio Same-Store Cash (Adjusted) NOI growth guidance by 75 basis points at the midpoint | ||
| – | On October 29, 2023, Healthpeak's Board of Directors declared a quarterly common stock cash dividend of $0.30 per share to be paid on November 20, 2023, to stockholders of record as of the close of business on November 7, 2023 | ||
| – | Received the GRESB Green Star designation for the twelfth consecutive year and recognized for leading corporate governance and ESG disclosures by Governance Intelligence and IR Magazine | ||
THIRD QUARTER COMPARISON
|
Three Months Ended September 30, 2023 |
|
Three Months Ended September 30, 2022 |
||||||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||
Net income, diluted |
$ |
64,048 |
|
$ |
0.12 |
|
$ |
355,721 |
|
$ |
0.65 |
||||
Nareit FFO, diluted |
|
252,566 |
|
|
|
0.46 |
|
|
|
227,426 |
|
|
|
0.42 |
|
FFO as Adjusted, diluted |
|
251,647 |
|
|
|
0.45 |
|
|
|
235,504 |
|
|
|
0.43 |
|
AFFO, diluted |
|
219,645 |
|
|
|
0.40 |
|
|
|
194,963 |
|
|
|
0.36 |
|
YEAR TO DATE COMPARISON
|
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
||||||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||
Net income, diluted |
$ |
233,497 |
|
$ |
0.43 |
|
$ |
496,341 |
|
$ |
0.91 |
||||
Nareit FFO, diluted |
|
730,764 |
|
|
|
1.32 |
|
|
|
711,713 |
|
|
|
1.30 |
|
FFO as Adjusted, diluted |
|
735,067 |
|
|
|
1.33 |
|
|
|
711,515 |
|
|
|
1.30 |
|
AFFO, diluted |
|
652,839 |
|
|
|
1.18 |
|
|
|
595,883 |
|
|
|
1.09 |
|
Nareit FFO, FFO as Adjusted, AFFO, Same-Store Cash (Adjusted) NOI, and Net Debt to Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts (see the "Funds From Operations" and "Adjusted Funds From Operations" sections of this release for additional information). See "September 30, 2023 Discussion and Reconciliation of Non-GAAP Financial Measures" for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP in the Investor Relations section of our website at http://ir.healthpeak.com/quarterly-results.
SAME-STORE ("SS") OPERATING SUMMARY
The table below outlines the year-over-year three-month and year-to-date SS Cash (Adjusted) NOI growth.
Year-Over-Year Total SS Portfolio Cash (Adjusted) NOI Growth |
|||||||||
|
Three Month |
|
Year-To-Date |
||||||
|
SS Growth % |
% of SS |
|
SS Growth % |
% of SS |
||||
Lab |
3.3 |
% |
47.6 |
% |
|
4.3 |
% |
47.3 |
% |
Outpatient Medical |
3.4 |
% |
41.1 |
% |
|
3.2 |
% |
41.5 |
% |
CCRC |
32.1 |
% |
11.3 |
% |
|
20.0 |
% |
11.2 |
% |
Total Portfolio |
6.0 |
% |
100.0 |
% |
|
5.4 |
% |
100.0 |
% |
DEVELOPMENT UPDATES
VANTAGE PHASE I
In September 2023, Healthpeak signed an additional 23,000 square foot lease with a global pharmaceutical company at its Vantage Phase I development in South San Francisco, California, bringing the property to 52% pre-leased.
Strategically located on Forbes Boulevard and at the doorstep of Genentech's headquarters, the purpose-built lab campus will feature state-of-the-art design, an amenity center, flexible and efficient floor plates, and building systems accommodating a broad range of lab uses.
WEST CAMBRIDGE
In September 2023, the Cambridge City Council unanimously approved a comprehensive rezoning to allow for greater density and developable heights in the West Cambridge neighborhood of Alewife. Healthpeak’s vision for the neighborhood incorporates Alewife’s historic heritage and its innovative future by creating an active public realm driven by world-class real estate including lab, R&D and multi-family residential. Healthpeak owns a total of 39 acres in Alewife.
GRAPHITE BIO LEASE MODIFICATION
In October 2023, Healthpeak modified an approximately 85,200 square foot lease with Graphite Bio (Nasdaq: GRPH) at the Nexus on Grand campus in South San Francisco, California. Under the terms of the modification, Graphite Bio’s lease expiration date was accelerated to December 31, 2024 in exchange for total consideration of $58 million, consisting of:
i. |
$37 million cash payment, which is inclusive of the prepayment of Graphite Bio's 2024 contractual rent, including operating expense reimbursements, and termination and related fees; and |
||||
ii. |
$21 million credit for future rent and operating expense reimbursements from the in-place 32,000 square foot subtenant; the subtenant has approximately one year remaining on the sublease, at which point it will become a direct tenant of Healthpeak with a lease term of approximately six years |
The $58 million in total consideration is equivalent to approximately 5+ years of Graphite Bio’s original contractual rental payments, including operating expense reimbursements, and provides ample time for Healthpeak to release the remaining 53,000 square feet of fully built-out, Class A space to new tenants. Healthpeak retains the right to immediately release this space with no change in the payments due from Graphite Bio or the subtenant.
ESG
Healthpeak received the GRESB Green Star designation for the twelfth consecutive year. Healthpeak was also named a finalist by Governance Intelligence and IR Magazine for Best Proxy Statement for the fourth consecutive year and Best ESG Reporting for the second consecutive year, and included in Fortune's list of Best Workplaces in Real Estate for the second consecutive year.
To learn more about Healthpeak's commitment to responsible business and view our 2022 ESG Report, please visit www.healthpeak.com/ESG.
DIVIDEND
On October 29, 2023, Healthpeak's Board declared a quarterly common stock cash dividend of $0.30 per share to be paid on November 20, 2023, to stockholders of record as of the close of business on November 7, 2023.
2023 GUIDANCE
We are updating the following guidance ranges for full year 2023:
- Diluted earnings per common share from $0.49 – $0.53 to $0.53 – $0.55
- Diluted Nareit FFO per share from $1.72 – $1.76 to $1.76 – $1.78
- Diluted FFO as Adjusted per share from $1.73 – $1.77 to $1.76 – $1.78
- Total Portfolio Same-Store Cash (Adjusted) NOI growth from 3.25% – 4.75% to 4.25% – 5.25%
These estimates do not reflect the potential impact from unannounced future transactions. These estimates are based on our view of existing market conditions, transaction timing, and other assumptions for the year ending December 31, 2023. For additional details and assumptions underlying this guidance, please see page 38 in our corresponding Supplemental Report and the Discussion and Reconciliation of Non-GAAP Financial Measures, both of which are available in the Investor Relations section of our website at http://ir.healthpeak.com.
UPDATED CONFERENCE CALL INFORMATION
Healthpeak has scheduled a conference call and webcast for Monday, October 30, 2023, at 8:30 a.m. Eastern Time.
The conference call can be accessed in the following ways:
- Healthpeak’s website: https://ir.healthpeak.com/news-events
- Webcast: https://events.q4inc.com/attendee/248022751. Joining via webcast is recommended for those who will not be asking questions.
- Telephone: The participant dial-in number is (888) 330-2513 or (240) 789-2726 (international). The conference ID number is 58822.
An archive of the webcast will be available on Healthpeak's website through October 30, 2024, and a telephonic replay can be accessed through November 6, 2023, by dialing (800) 770-2030 or (647) 362-9199 (international) and entering conference ID number 58822.
ABOUT HEALTHPEAK
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates and develops high-quality real estate for healthcare discovery and delivery.
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 include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, densifications, joint venture transactions, leasing activity and commitments, capital recycling plans, financing activities, or other transactions discussed in this release; (ii) the payment of a quarterly cash dividend; and (iii) the information presented under the heading "2023 Guidance." Pending acquisitions, dispositions, joint venture transactions, leasing activity, and financing activity, including those subject to binding agreements, remain subject to closing conditions and may not be completed within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: macroeconomic trends, including inflation, interest rates, labor costs, and unemployment; the ability of our existing and future tenants, operators, and borrowers to conduct their respective businesses in a manner that generates sufficient income to make rent and loan payments to us; the financial condition of our tenants, operators, and borrowers, including potential bankruptcies and downturns in their businesses, and their legal and regulatory proceedings; our concentration of real estate investments in the healthcare property sector, which makes us more vulnerable to a downturn in a specific sector than if we invested across multiple sectors; the illiquidity of real estate investments; our ability to identify and secure new or replacement tenants and operators; our property development, redevelopment, and tenant improvement activity risks, including project abandonments, project delays, and lower profits than expected; changes within the industries in which we operate; significant regulation, funding requirements, and uncertainty faced by our lab tenants; the ability of the hospitals on whose campuses our outpatient medical buildings are located and their affiliated healthcare systems to remain competitive or financially viable; our ability to develop, maintain, or expand hospital and health system client relationships; operational risks associated with third party management contracts, including the additional regulation and liabilities of our properties operated through RIDEA structures; economic conditions, natural disasters, weather, and other conditions that negatively affect geographic areas where we have concentrated investments; uninsured or underinsured losses, which could result in significant losses and/or performance declines by us or our tenants and operators; our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners’ financial condition and continued cooperation; our use of fixed rent escalators, contingent rent provisions, and/or rent escalators based on the Consumer Price Index; competition for suitable healthcare properties to grow our investment portfolio; our ability to foreclose or exercise rights on collateral securing our real estate-related loans; investment of substantial resources and time in transactions that are not consummated; our ability to successfully integrate or operate acquisitions; the potential impact on us and our tenants, operators, and borrowers from litigation matters, including rising liability and insurance costs; environmental compliance costs and liabilities associated with our real estate investments; epidemics, pandemics, or other infectious diseases, including Covid, and health and safety measures intended to reduce their spread; the loss or limited availability of our key personnel; our reliance on information technology systems and the potential impact of system failures, disruptions, or breaches; increased borrowing costs, including due to rising interest rates; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; the availability of external capital on acceptable terms or at all, including due to rising interest rates, changes in our credit ratings and the value of our common stock, volatility or uncertainty in the capital markets, and other factors; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness; bank failures or other events affecting financial institutions; the failure of our tenants, operators, and borrowers to comply with federal, state, and local laws and regulations, including resident health and safety requirements, as well as licensure, certification, and inspection requirements; required regulatory approvals to transfer our senior housing properties; compliance with the Americans with Disabilities Act and fire, safety, and other regulations; laws or regulations prohibiting eviction of our tenants; the requirements of, or changes to, governmental reimbursement programs such as Medicare or Medicaid; legislation to address federal government operations and administrative decisions affecting the Centers for Medicare and Medicaid Services; our participation in the CARES Act Provider Relief Fund and other Covid-related stimulus and relief programs; our ability to maintain our qualification as a REIT; changes to U.S. federal income tax laws, and potential deferred and contingent tax liabilities from corporate acquisitions; calculating non-REIT tax earnings and profits distributions; ownership limits in our charter that restrict ownership in our stock; provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data |
|||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Real estate: |
|
|
|
||||
Buildings and improvements |
$ |
13,097,282 |
|
|
$ |
12,784,078 |
|
Development costs and construction in progress |
|
863,341 |
|
|
|
760,355 |
|
Land and improvements |
|
2,657,602 |
|
|
|
2,667,188 |
|
Accumulated depreciation and amortization |
|
(3,498,077 |
) |
|
|
(3,188,138 |
) |
Net real estate |
|
13,120,148 |
|
|
|
13,023,483 |
|
Loans receivable, net of reserves of $8,023 and $8,280 |
|
225,881 |
|
|
|
374,832 |
|
Investments in and advances to unconsolidated joint ventures |
|
745,381 |
|
|
|
706,677 |
|
Accounts receivable, net of allowance of $2,077 and $2,399 |
|
59,085 |
|
|
|
53,436 |
|
Cash and cash equivalents |
|
63,478 |
|
|
|
72,032 |
|
Restricted cash |
|
50,449 |
|
|
|
54,802 |
|
Intangible assets, net |
|
339,191 |
|
|
|
418,061 |
|
Assets held for sale, net |
|
8,277 |
|
|
|
49,866 |
|
Right-of-use asset, net |
|
233,480 |
|
|
|
237,318 |
|
Other assets, net |
|
757,164 |
|
|
|
780,722 |
|
Total assets |
$ |
15,602,534 |
|
|
$ |
15,771,229 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Bank line of credit and commercial paper |
$ |
424,000 |
|
|
$ |
995,606 |
|
Term loans |
|
496,603 |
|
|
|
495,957 |
|
Senior unsecured notes |
|
5,401,461 |
|
|
|
4,659,451 |
|
Mortgage debt |
|
342,349 |
|
|
|
346,599 |
|
Intangible liabilities, net |
|
133,668 |
|
|
|
156,193 |
|
Liabilities related to assets held for sale, net |
|
39 |
|
|
|
4,070 |
|
Lease liability |
|
204,762 |
|
|
|
208,515 |
|
Accounts payable, accrued liabilities, and other liabilities |
|
687,650 |
|
|
|
772,485 |
|
Deferred revenue |
|
879,174 |
|
|
|
844,076 |
|
Total liabilities |
|
8,569,706 |
|
|
|
8,482,952 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Redeemable noncontrolling interests |
|
49,016 |
|
|
|
105,679 |
|
|
|
|
|
||||
Common stock, $1.00 par value: 750,000,000 shares authorized; 547,072,311 and 546,641,973 shares issued and outstanding |
|
547,072 |
|
|
|
546,642 |
|
Additional paid-in capital |
|
10,401,994 |
|
|
|
10,349,614 |
|
Cumulative dividends in excess of earnings |
|
(4,528,508 |
) |
|
|
(4,269,689 |
) |
Accumulated other comprehensive income (loss) |
|
36,747 |
|
|
|
28,134 |
|
Total stockholders’ equity |
|
6,457,305 |
|
|
|
6,654,701 |
|
|
|
|
|
||||
Joint venture partners |
|
313,402 |
|
|
|
327,721 |
|
Non-managing member unitholders |
|
213,105 |
|
|
|
200,176 |
|
Total noncontrolling interests |
|
526,507 |
|
|
|
527,897 |
|
|
|
|
|
||||
Total equity |
|
6,983,812 |
|
|
|
7,182,598 |
|
|
|
|
|
||||
Total liabilities and equity |
$ |
15,602,534 |
|
|
$ |
15,771,229 |
|
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues: |
|
|
|
|
|
||||||||||
Rental and related revenues |
$ |
417,075 |
|
|
$ |
392,301 |
|
|
$ |
1,219,473 |
|
|
$ |
1,149,530 |
|
Resident fees and services |
|
133,808 |
|
|
|
122,142 |
|
|
|
391,076 |
|
|
|
369,062 |
|
Interest income |
|
5,360 |
|
|
|
5,963 |
|
|
|
16,802 |
|
|
|
16,950 |
|
Income from direct financing leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,168 |
|
Total revenues |
|
556,243 |
|
|
|
520,406 |
|
|
|
1,627,351 |
|
|
|
1,536,710 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
50,510 |
|
|
|
44,078 |
|
|
|
147,547 |
|
|
|
123,531 |
|
Depreciation and amortization |
|
184,559 |
|
|
|
173,190 |
|
|
|
561,357 |
|
|
|
531,412 |
|
Operating |
|
232,734 |
|
|
|
220,208 |
|
|
|
677,659 |
|
|
|
642,499 |
|
General and administrative |
|
23,093 |
|
|
|
24,549 |
|
|
|
73,576 |
|
|
|
73,161 |
|
Transaction costs |
|
36 |
|
|
|
728 |
|
|
|
3,098 |
|
|
|
1,636 |
|
Impairments and loan loss reserves (recoveries), net |
|
(550 |
) |
|
|
3,407 |
|
|
|
(156 |
) |
|
|
3,678 |
|
Total costs and expenses |
|
490,382 |
|
|
|
466,160 |
|
|
|
1,463,081 |
|
|
|
1,375,917 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain (loss) on sales of real estate, net |
|
— |
|
|
|
(4,149 |
) |
|
|
86,463 |
|
|
|
10,047 |
|
Other income (expense), net |
|
1,481 |
|
|
|
305,678 |
|
|
|
4,208 |
|
|
|
326,855 |
|
Total other income (expense), net |
|
1,481 |
|
|
|
301,529 |
|
|
|
90,671 |
|
|
|
336,902 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |
|
67,342 |
|
|
|
355,775 |
|
|
|
254,941 |
|
|
|
497,695 |
|
Income tax benefit (expense) |
|
(787 |
) |
|
|
3,834 |
|
|
|
(2,225 |
) |
|
|
3,775 |
|
Equity income (loss) from unconsolidated joint ventures |
|
2,101 |
|
|
|
(325 |
) |
|
|
6,646 |
|
|
|
2,141 |
|
Income (loss) from continuing operations |
|
68,656 |
|
|
|
359,284 |
|
|
|
259,362 |
|
|
|
503,611 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from discontinued operations |
|
— |
|
|
|
(1,298 |
) |
|
|
— |
|
|
|
2,011 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
68,656 |
|
|
|
357,986 |
|
|
|
259,362 |
|
|
|
505,622 |
|
Noncontrolling interests’ share in continuing operations |
|
(4,442 |
) |
|
|
(4,016 |
) |
|
|
(24,297 |
) |
|
|
(11,701 |
) |
Net income (loss) attributable to Healthpeak Properties, Inc. |
|
64,214 |
|
|
|
353,970 |
|
|
|
235,065 |
|
|
|
493,921 |
|
Participating securities’ share in earnings |
|
(166 |
) |
|
|
(604 |
) |
|
|
(1,568 |
) |
|
|
(2,523 |
) |
Net income (loss) applicable to common shares |
$ |
64,048 |
|
|
$ |
353,366 |
|
|
$ |
233,497 |
|
|
$ |
491,398 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.12 |
|
|
$ |
0.66 |
|
|
$ |
0.43 |
|
|
$ |
0.91 |
|
Discontinued operations |
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
Net income (loss) applicable to common shares |
$ |
0.12 |
|
|
$ |
0.66 |
|
|
$ |
0.43 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.12 |
|
|
$ |
0.65 |
|
|
$ |
0.43 |
|
|
$ |
0.91 |
|
Discontinued operations |
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
Net income (loss) applicable to common shares |
$ |
0.12 |
|
|
$ |
0.65 |
|
|
$ |
0.43 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
547,062 |
|
|
|
538,417 |
|
|
|
546,978 |
|
|
|
539,105 |
|
Diluted |
|
547,331 |
|
|
|
546,015 |
|
|
|
547,247 |
|
|
|
544,852 |
|
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) applicable to common shares |
|
$ |
64,048 |
|
|
$ |
353,366 |
|
|
$ |
233,497 |
|
|
$ |
491,398 |
|
Real estate related depreciation and amortization |
|
|
184,559 |
|
|
|
173,190 |
|
|
|
561,357 |
|
|
|
531,412 |
|
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures |
|
|
6,190 |
|
|
|
8,704 |
|
|
|
18,076 |
|
|
|
19,049 |
|
Noncontrolling interests’ share of real estate related depreciation and amortization |
|
|
(4,571 |
) |
|
|
(4,464 |
) |
|
|
(14,042 |
) |
|
|
(14,487 |
) |
Loss (gain) on sales of depreciable real estate, net |
|
|
— |
|
|
|
5,280 |
|
|
|
(86,463 |
) |
|
|
(11,408 |
) |
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures |
|
|
— |
|
|
|
239 |
|
|
|
— |
|
|
|
89 |
|
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net |
|
|
— |
|
|
|
— |
|
|
|
11,546 |
|
|
|
12 |
|
Loss (gain) upon change of control, net(1) |
|
|
— |
|
|
|
(311,438 |
) |
|
|
(234 |
) |
|
|
(311,438 |
) |
Taxes associated with real estate dispositions |
|
|
— |
|
|
|
197 |
|
|
|
— |
|
|
|
31 |
|
Nareit FFO applicable to common shares |
|
|
250,226 |
|
|
|
225,074 |
|
|
|
723,737 |
|
|
|
704,658 |
|
Distributions on dilutive convertible units and other |
|
|
2,340 |
|
|
|
2,352 |
|
|
|
7,027 |
|
|
|
7,055 |
|
Diluted Nareit FFO applicable to common shares |
|
$ |
252,566 |
|
|
$ |
227,426 |
|
|
$ |
730,764 |
|
|
$ |
711,713 |
|
Diluted Nareit FFO per common share |
|
$ |
0.46 |
|
|
$ |
0.42 |
|
|
$ |
1.32 |
|
|
$ |
1.30 |
|
Weighted average shares outstanding - diluted Nareit FFO |
|
|
554,614 |
|
|
|
546,015 |
|
|
|
554,535 |
|
|
|
546,677 |
|
Impact of adjustments to Nareit FFO: |
|
|
|
|
|
|
|
|
||||||||
Transaction-related items |
|
$ |
49 |
|
|
$ |
681 |
|
|
$ |
2,993 |
|
|
$ |
1,573 |
|
Other impairments (recoveries) and other losses (gains), net(2) |
|
|
(602 |
) |
|
|
2,897 |
|
|
|
557 |
|
|
|
(5,874 |
) |
Restructuring and severance-related charges |
|
|
— |
|
|
|
— |
|
|
|
1,368 |
|
|
|
— |
|
Casualty-related charges (recoveries), net(3) |
|
|
(367 |
) |
|
|
4,514 |
|
|
|
(610 |
) |
|
|
4,103 |
|
Total adjustments |
|
|
(920 |
) |
|
|
8,092 |
|
|
|
4,308 |
|
|
|
(198 |
) |
FFO as Adjusted applicable to common shares |
|
|
249,306 |
|
|
|
233,166 |
|
|
|
728,045 |
|
|
|
704,460 |
|
Distributions on dilutive convertible units and other |
|
|
2,341 |
|
|
|
2,338 |
|
|
|
7,022 |
|
|
|
7,055 |
|
Diluted FFO as Adjusted applicable to common shares |
|
$ |
251,647 |
|
|
$ |
235,504 |
|
|
$ |
735,067 |
|
|
$ |
711,515 |
|
Diluted FFO as Adjusted per common share |
|
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
1.33 |
|
|
$ |
1.30 |
|
Weighted average shares outstanding - diluted FFO as Adjusted |
|
|
554,614 |
|
|
|
546,015 |
|
|
|
554,535 |
|
|
|
546,677 |
|
(1) |
|
The three and nine months ended September 30, 2022 include a gain upon change of control related to the sale of a 30% interest to a sovereign wealth fund and deconsolidation of seven previously consolidated lab buildings in South San Francisco, California. The gain upon change of control is included in other income (expense), net in the Consolidated Statements of Operations. |
(2) |
|
The nine months ended September 30, 2022 includes the following, which are included in other income (expense), net in the Consolidated Statements of Operations: (i) a $23 million gain on sale of a hospital under a direct financing lease and (ii) $14 million of expenses incurred for tenant relocation and other costs associated with the demolition of an outpatient medical building. The three and nine months ended September 30, 2023 and 2022 include reserves and (recoveries) for expected loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations. |
(3) |
|
Casualty-related charges (recoveries), net are recognized in other income (expense), net and equity income (loss) from unconsolidated joint ventures in the Consolidated Statements of Operations. |
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
FFO as Adjusted applicable to common shares |
$ |
249,306 |
|
|
$ |
233,166 |
|
|
$ |
728,045 |
|
|
$ |
704,460 |
|
Stock-based compensation amortization expense |
|
3,434 |
|
|
|
4,614 |
|
|
|
10,966 |
|
|
|
14,635 |
|
Amortization of deferred financing costs |
|
3,054 |
|
|
|
2,691 |
|
|
|
8,828 |
|
|
|
8,069 |
|
Straight-line rents(1) |
|
(7,279 |
) |
|
|
(12,965 |
) |
|
|
(12,710 |
) |
|
|
(36,837 |
) |
AFFO capital expenditures |
|
(24,031 |
) |
|
|
(24,358 |
) |
|
|
(66,264 |
) |
|
|
(75,103 |
) |
Deferred income taxes |
|
(430 |
) |
|
|
(2,814 |
) |
|
|
(933 |
) |
|
|
(3,741 |
) |
Amortization of above (below) market lease intangibles, net |
|
(5,626 |
) |
|
|
(5,876 |
) |
|
|
(20,267 |
) |
|
|
(17,528 |
) |
Other AFFO adjustments |
|
(1,123 |
) |
|
|
(1,144 |
) |
|
|
(1,852 |
) |
|
|
(3,017 |
) |
AFFO applicable to common shares |
|
217,305 |
|
|
|
193,314 |
|
|
|
645,813 |
|
|
|
590,938 |
|
Distributions on dilutive convertible units and other |
|
2,340 |
|
|
|
1,649 |
|
|
|
7,026 |
|
|
|
4,945 |
|
Diluted AFFO applicable to common shares |
$ |
219,645 |
|
|
$ |
194,963 |
|
|
$ |
652,839 |
|
|
$ |
595,883 |
|
Diluted AFFO per common share |
$ |
0.40 |
|
|
$ |
0.36 |
|
|
$ |
1.18 |
|
|
$ |
1.09 |
|
Weighted average shares outstanding - diluted AFFO |
|
554,614 |
|
|
|
544,190 |
|
|
|
554,535 |
|
|
|
544,852 |
|
(1) |
|
The nine months ended September 30, 2023 includes an $8.7 million write-off of straight-line rent receivable associated with Sorrento Therapeutics, Inc., which commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code. This write-off is reflected as a reduction of rental and related revenues in the Consolidated Statements of Operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231030819874/en/
Contacts
Andrew Johns, CFA
Senior Vice President – Investor Relations
720-428-5400
