Healthpeak Properties Reports Second Quarter 2024 Results and Declares Quarterly Cash Dividend on Common Stock
Healthpeak Properties (NYSE: DOC) reported strong Q2 2024 results, with net income of $0.21 per share and FFO as Adjusted of $0.45 per share. The company increased its 2024 guidance, raising diluted earnings to $0.27-$0.31 per share and FFO as Adjusted to $1.77-$1.81 per share. Healthpeak closed $853 million in outpatient medical sales at a 6.8% capitalization rate and repurchased 4.6 million shares for $88 million. Leasing activity was robust, with 1.7 million square feet of new and renewal leases executed. The company also completed an early renewal with CommonSpirit Health, extending the average lease maturity to December 2035. Healthpeak declared a quarterly dividend of $0.30 per share and reported strong same-store NOI growth of 4.5%.
Healthpeak Properties (NYSE: DOC) ha riportato risultati solidi per il secondo trimestre del 2024, con un reddito netto di $0,21 per azione e un FFO rettificato di $0,45 per azione. L'azienda ha aumentato le previsioni per il 2024, alzando gli utili diluiti a $0,27-$0,31 per azione e l'FFO rettificato a $1,77-$1,81 per azione. Healthpeak ha concluso $853 milioni in vendite mediche ambulatoriali con un tasso di capitalizzazione del 6,8% e ha riacquistato 4,6 milioni di azioni per $88 milioni. L'attività di locazione è stata vivace, con 1,7 milioni di piedi quadrati di nuovi contratti e rinnovi firmati. L'azienda ha anche completato un rinnovo anticipato con CommonSpirit Health, estendendo la scadenza media del contratto al dicembre 2035. Healthpeak ha dichiarato un dividendo trimestrale di $0,30 per azione e ha registrato una forte crescita del NOI same-store del 4,5%.
Healthpeak Properties (NYSE: DOC) informó resultados sólidos para el segundo trimestre de 2024, con un ingreso neto de $0.21 por acción y un FFO ajustado de $0.45 por acción. La compañía aumentó su guía para 2024, elevando las ganancias diluidas a $0.27-$0.31 por acción y el FFO ajustado a $1.77-$1.81 por acción. Healthpeak cerró $853 millones en ventas médicas ambulatorias a una tasa de capitalización del 6.8% y recompró 4.6 millones de acciones por $88 millones. La actividad de arrendamiento fue robusta, con 1.7 millones de pies cuadrados de nuevos contratos y renovaciones ejecutadas. La compañía también completó una renovación anticipada con CommonSpirit Health, extendiendo el vencimiento promedio del arrendamiento hasta diciembre de 2035. Healthpeak declaró un dividendo trimestral de $0.30 por acción e informó un fuerte crecimiento del NOI en tiendas comparables del 4.5%.
Healthpeak Properties (NYSE: DOC)는 2024년 2분기 실적을 발표했으며, 주당 순이익이 $0.21이고 조정된 FFO가 주당 $0.45로 강력한 성과를 보였습니다. 회사는 2024년 전망을 상향 조정하여 희석 주당 이익을 $0.27-$0.31로, 조정된 FFO를 $1.77-$1.81로 올렸습니다. Healthpeak는 의료 외래 판매에서 $853 백만 달러를 마감했으며, 6.8%의 자본화 비율을 기록했습니다. 또한 460만 주를 $8800만 달러에 재구매했습니다. 임대 계약이 활발하게 이루어져, 170만 평방피트의 새로운 계약 및 갱신 계약이 체결되었습니다. 회사는 CommonSpirit Health와 조기 갱신 계약을 완료하여 평균 임대 계약 만기를 2035년 12월까지 연장했습니다. Healthpeak는 분기 배당금을 주당 $0.30으로 선언했으며, 동종 매장 NOI 성장률이 4.5%로 강력하다고 보고했습니다.
Healthpeak Properties (NYSE: DOC) a annoncé des résultats solides pour le deuxième trimestre 2024, avec un revenu net de 0,21 $ par action et un FFO ajusté de 0,45 $ par action. La société a relevé ses prévisions pour 2024, portant le bénéfice dilué à 0,27-0,31 $ par action et le FFO ajusté à 1,77-1,81 $ par action. Healthpeak a conclu 853 millions de dollars en ventes médicales ambulatoires à un taux de capitalisation de 6,8 % et a racheté 4,6 millions d'actions pour 88 millions de dollars. L'activité locative a été robuste, avec 1,7 million de pieds carrés de nouveaux baux et de renouvellements signés. La société a également finalisé un renouvellement anticipé avec CommonSpirit Health, prolongeant la durée moyenne du bail jusqu'en décembre 2035. Healthpeak a déclaré un dividende trimestriel de 0,30 $ par action et a rapporté une forte croissance du NOI dans les mêmes magasins de 4,5 %.
Healthpeak Properties (NYSE: DOC) berichtete über starke Ergebnisse im 2. Quartal 2024 mit einem Nettoeinkommen von $0,21 pro Aktie und einem bereinigten FFO von $0,45 pro Aktie. Das Unternehmen hob die Prognosen für 2024 an, indem es den verwässerten Gewinn auf $0,27-$0,31 pro Aktie und das bereinigte FFO auf $1,77-$1,81 pro Aktie erhöhte. Healthpeak schloss $853 Millionen im Bereich ambulanter medizinischer Verkäufe mit einer Kapitalisierungsrate von 6,8% ab und kaufte 4,6 Millionen Aktien für $88 Millionen zurück. Die Vermietungsaktivitäten waren stark, mit 1,7 Millionen Quadratfuß an neuen und verlängerten Mietverträgen. Das Unternehmen hat außerdem eine vorzeitige Erneuerung mit CommonSpirit Health abgeschlossen, wodurch das durchschnittliche Mietverhältnis bis Dezember 2035 verlängert wurde. Healthpeak erklärte eine vierteljährliche Dividende von $0,30 pro Aktie und berichtete von einem starken NOI-Wachstum im gleichen Geschäft von 4,5%.
- Increased 2024 earnings guidance to $0.27-$0.31 per share
- FFO as Adjusted per share increased to $1.77-$1.81
- Closed $853 million in outpatient medical sales at 6.8% capitalization rate
- Executed 1.7 million square feet of new and renewal leases
- Same-Store Cash NOI growth of 4.5%
- Extended CommonSpirit Health lease maturity to December 2035
- Repurchased 4.6 million shares for $88 million
- Net Debt to Adjusted EBITDAre ratio of 5.2x
Insights
Healthpeak Properties' Q2 2024 results demonstrate solid performance and strategic progress. The company reported
Key highlights include:
$853 million in outpatient medical sales at a 6.8% capitalization rate, showcasing the company's ability to monetize assets at attractive valuations.- Share repurchases of
$88 million at an average price of$19.09 , demonstrating confidence in the company's intrinsic value. - Positive leasing momentum with 1.7 million square feet of new and renewal leases, including strong mark-to-market rent increases.
- An early renewal with CommonSpirit Health, extending the weighted average lease maturity to December 2035, which enhances portfolio stability.
The company's increased guidance for 2024, including higher FFO and AFFO projections, suggests management's confidence in continued strong performance. However, investors should note the company's leverage ratio of 5.2x Net Debt to Adjusted EBITDAre, which, while not alarming, is worth monitoring in the current interest rate environment.
Overall, Healthpeak's results reflect a well-executed strategy of portfolio optimization and operational efficiency, positioning the company favorably in the healthcare REIT sector.
Healthpeak's Q2 results underscore its strategic repositioning within the healthcare real estate sector. The company's focus on outpatient medical and life science properties is paying off, as evidenced by the strong leasing activity and positive rent spreads in these segments.
The disposition strategy is particularly noteworthy:
- Year-to-date sales of
$1.2 billion at a6.5% cap rate indicate strong demand for healthcare assets and Healthpeak's ability to recycle capital efficiently. - The
$418 million seller financing provided on one portfolio sale at a6% interest rate is an innovative approach to facilitate transactions while generating additional income.
The company's development pipeline, including new outpatient projects with HCA and the Vantage lab campus, demonstrates its ability to create value through ground-up development. The mid-7% stabilized yields on new developments are attractive in the current market.
The early renewal and extension of CommonSpirit Health leases is a significant win, providing long-term stability and visibility to a substantial portion of the portfolio. This move, along with the strategic dispositions, effectively de-risks the portfolio and improves its overall quality.
Healthpeak's internalization of property management in additional markets should lead to operational efficiencies and cost savings, supporting the
In summary, Healthpeak's Q2 results and strategic moves position it well in the competitive healthcare REIT landscape, with a focus on high-quality assets and operational excellence.
SECOND QUARTER 2024 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
-
Net income of
per share, Nareit FFO of$0.21 per share, FFO as Adjusted of$0.44 per share, AFFO of$0.45 per share, and Total Merger-Combined Same-Store Cash (Adjusted) NOI growth of$0.39 4.5% -
Increased full year 2024 diluted earnings guidance to a range of
–$0.27 per share; increased the midpoint of each 2024 FFO as Adjusted and AFFO guidance by$0.31 + per share, and increased Total Merger-Combined Same-Store Cash (Adjusted) NOI growth guidance by 25 basis points at the midpoint$0.01 -
Closed on
of outpatient medical sales at a blended$853 million 6.8% trailing cash capitalization rate during the second quarter and through July 25, 2024-
of year-to-date dispositions at a blended trailing cash capitalization rate of approximately$1.2 billion 6.5%
-
-
Repurchased 4.6 million shares at a weighted average share price of
for an aggregate total of$19.09 during the second quarter and through July 25, 2024$88 million -
Year-to-date, Healthpeak has repurchased 10.5 million shares at a weighted average share price of
for$17.98 $188 million
-
Year-to-date, Healthpeak has repurchased 10.5 million shares at a weighted average share price of
-
Second quarter new and renewal lease executions totaled 1.7 million square feet:
-
Outpatient Medical new and renewal lease executions totaled 905,000 square feet with a positive
4.7% rent mark-to-market on renewals -
Lab new and renewal lease executions totaled 797,000 square feet with a positive
6.0% rent mark-to-market on renewals- Executed an additional 180,000 square feet lab leases in July 2024
- Lab leasing pipeline includes 620,000 square feet of signed letters of intent ("LOI") including LOIs at marquee campuses including Gateway at Directors Science Park, Vantage, and Portside
-
Outpatient Medical new and renewal lease executions totaled 905,000 square feet with a positive
-
In July 2024, executed an early renewal with CommonSpirit Health ("CommonSpirit"), increasing the weighted average lease maturity from July 2027 to December 2035 with a positive rent mark-to-market and
3% annual escalators -
Added two outpatient medical developments with total expected costs of
with$53 million 84% pre-leasing, and mid-7% stabilized yields - Net Debt to Adjusted EBITDAre was 5.2x for the quarter ended June 30, 2024
-
On July 24, 2024, Healthpeak's Board of Directors declared a quarterly common stock cash dividend of
per share to be paid on August 16, 2024, to stockholders of record as of the close of business on August 5, 2024$0.30 - Published 13th annual Corporate Impact Report detailing Healthpeak's comprehensive approach to corporate responsibility and sustainability
SECOND QUARTER COMPARISON
|
Three Months Ended June 30, 2024 |
|
Three Months Ended June 30, 2023 |
||||||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||
Net income, diluted |
$ |
145,904 |
|
$ |
0.21 |
|
$ |
51,750 |
|
$ |
0.09 |
||||
Nareit FFO, diluted |
|
318,610 |
|
|
|
0.44 |
|
|
|
247,754 |
|
|
|
0.45 |
|
FFO as Adjusted, diluted |
|
320,220 |
|
|
|
0.45 |
|
|
|
251,540 |
|
|
|
0.45 |
|
AFFO, diluted |
|
276,947 |
|
|
|
0.39 |
|
|
|
223,197 |
|
|
|
0.40 |
|
YEAR TO DATE COMPARISON
|
Six Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2023 |
||||||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||
Net income, diluted |
$ |
152,345 |
|
$ |
0.23 |
|
$ |
169,449 |
|
$ |
0.31 |
||||
Nareit FFO, diluted |
|
479,906 |
|
|
|
0.72 |
|
|
|
478,200 |
|
|
|
0.86 |
|
FFO as Adjusted, diluted |
|
597,879 |
|
|
|
0.90 |
|
|
|
483,421 |
|
|
|
0.87 |
|
AFFO, diluted |
|
524,599 |
|
|
|
0.79 |
|
|
|
433,195 |
|
|
|
0.78 |
|
Nareit FFO, FFO as Adjusted, AFFO, Total Merger-Combined 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 "June 30, 2024 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.
MERGER-COMBINED SAME-STORE ("SS") OPERATING SUMMARY
The table below outlines the year-over-year three-month and year-to-date Merger-Combined SS Cash (Adjusted) NOI growth.
Year-Over-Year Total Merger-Combined SS Cash (Adjusted) NOI Growth |
|||||
|
Three Month |
|
Year-To-Date |
||
|
SS Growth % |
% of SS |
|
SS Growth % |
% of SS |
Outpatient Medical |
|
|
|
|
|
Lab |
|
|
|
|
|
CCRC |
|
|
|
|
|
Total Merger-Combined SS Cash (Adjusted) NOI |
|
|
|
|
|
PHYSICIANS REALTY TRUST MERGER INTEGRATION
In July, Healthpeak internalized outpatient property management in two additional markets. To date, the company has completed internalization of property management in 12 markets covering more than 17 million square feet, with two additional markets expected to be internalized by year-end 2024.
Healthpeak anticipates achieving at least
DISPOSITION UPDATE
During the second quarter and through July 25, 2024, Healthpeak closed on
Closed and pending dispositions total 3.3 million square feet across 72 assets with geographical concentration in
Disposition Portfolios and Remaining Healthpeak Outpatient Medical Portfolio Summary |
||
|
Outpatient Medical Portfolios(1) |
|
|
Dispositions |
Remaining Healthpeak |
Number of properties |
72 |
507 |
Total square feet |
3.3 million |
36 million |
Average building size (square feet) |
45,000 |
72,000 |
Average building age(2) |
28 years |
23 years |
Percent on-campus or affiliated |
|
|
Percent leased to health systems |
|
|
Population density(3) |
2,300 |
3,600 |
Population growth(3) |
|
|
(1) |
Dispositions include two properties placed under contract in July, with the sale expected to close during the second half of 2024. Remaining Healthpeak excludes unconsolidated joint ventures. |
|
(2) |
Age as of 6/30/2024 and weighted by total square footage. |
|
(3) |
Current 5-mile population density is shown as people per square mile. 5-mile population growth from 2023 to 2028, weighted by leasable area. Demographic data from Placer.ai. |
In conjunction with one of the portfolio sales, Healthpeak expects to provide that buyer with a total of
Year-to-date, Healthpeak has closed on approximately
COMMONSPIRIT EARLY LEASE RENEWAL
In July, we executed an early lease renewal for a minimum of
The renewal provides for an average of 8+ years of additional term following the original expiration dates of the current leases, which are primarily in 2026, 2027, and 2028 ("Original Expiration"), extending CommonSpirit's pro forma weighted average lease term from July 2027 to December 2035. Following the Original Expiration, CommonSpirit's base rent will increase and annual contractual lease escalators will increase from
SHARE REPURCHASE ACTIVITY
Healthpeak repurchased 4.6 million shares at a weighted average share price of
Year-to-date 2024, Healthpeak has repurchased 10.5 million shares at a weighted average share price of
In July 2024, the Board replaced Healthpeak's existing share repurchase authorization with a new
DEVELOPMENT UPDATES
NEW OUTPATIENT MEDICAL DEVELOPMENTS
During the second quarter, Healthpeak added two outpatient developments to its program with HCA. Total development costs are
-
Brandon Medical Center:
, 72,000 square foot Class A outpatient medical building located on HCA’s$27 million Brandon Regional Hospital campus, a 479-bed acute care hospital inTampa, Florida . HCA affiliates have pre-leased70% of the development for graduate medical education and clinical outpatient services.
-
Pooler Medical Center:
, 63,000 square foot Class A build-to-suit outpatient medical building in$26 million Savannah, Georgia . Affiliates of HCA will lease100% of the development for nurse education and clinical outpatient services.
ThePooler development is Healthpeak's second HCA development in theSavannah market. The previously announced 70,000 square foot development on HCA's Memorial Health University Medical Center began construction in 2022 and is expected to deliver during the second half of 2024.
VANTAGE LAB CAMPUS
During the second quarter 2024, Healthpeak placed 23,000 square feet of fully-occupied space into service at Vantage in
During the second quarter 2024, Healthpeak placed Northside Medical Buford into service. The
CORPORATE RESPONSIBILITY AND SUSTAINABILITY
Recent sustainability and corporate impact achievements include:
- Published 13th annual Corporate Impact Report, covering environmental, social, and governance initiatives and performance and community and stakeholder impact
-
Reported
36% cumulative green building certification in 2023 throughout our portfolio, including 6.4 million square feet of LEED-certified space
- Named a constituent in the FTSE4Good Index for the 13th consecutive year
- Committed to the United Nations (“UN”) Women’s Empowerment Principles
- Aligned our human rights policy with the UN Guiding Principles on Business and Human Rights and the UN Universal Declaration of Human Rights
To learn more about Healthpeak's commitment to responsible business, please visit www.healthpeak.com/corporate-impact.
DIVIDEND
On July 24, 2024, Healthpeak's Board declared a quarterly common stock cash dividend of
2024 GUIDANCE
We are updating the following guidance ranges for full year 2024:
-
Diluted earnings per common share from
–$0.16 to$0.20 –$0.27 $0.31
-
Diluted Nareit FFO per share from
–$1.56 to$1.60 –$1.59 $1.63
-
Diluted FFO as Adjusted per share from
–$1.76 to$1.80 –$1.77 $1.81
-
Diluted AFFO per share from
–$1.53 to$1.57 –$1.54 $1.58
-
Total Merger-Combined Same-Store Cash (Adjusted) NOI growth from
2.50% –4.00% to2.75% –4.25%
These estimates are based on our view of existing market conditions, transaction timing, and other assumptions for the year ending December 31, 2024. For additional details and assumptions, please see page 13 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.
CONFERENCE CALL INFORMATION
Healthpeak has scheduled a conference call and webcast for Friday, July 26, 2024, at 8:00 a.m. Mountain 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/861116449. Joining via webcast is recommended for those who will not be asking questions.
- Telephone: The participant dial-in number is (800) 715-9871.
An archive of the webcast will be available on Healthpeak’s website through July 25, 2025, and a telephonic replay can be accessed through August 2, 2024, by dialing (800) 770-2030 and entering conference ID number 95156.
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 focused on 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, developments, redevelopments, joint venture transactions, leasing activity and commitments, financing activities, or other transactions discussed in this release, including statements regarding our anticipated synergies from our merger with Physicians Realty Trust; (ii) the payment of a quarterly cash dividend; and (iii) the information presented under the heading "2024 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, construction and labor costs, and unemployment; risks associated with our merger with Physicians Realty Trust (the “Merger”), including, but not limited to, our ability to integrate the operations of the Company and Physicians Realty Trust successfully and realize the anticipated synergies and other benefits of the Merger or do so within the anticipated time frame; changes within the industries in which we operate; significant regulation, funding requirements, and uncertainty faced by our lab tenants; factors adversely affecting our tenants’, operators’, or borrowers’ ability to meet their financial and other contractual obligations to us; the insolvency or bankruptcy of one or more of our major tenants, operators, or borrowers; our concentration of real estate investments in the healthcare property sector, which makes us more vulnerable to a downturn in that 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 risks, including project abandonments, project delays, and lower profits than expected; 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 structures permitted by the Housing and Economic Recovery Act of 2008, which includes most of the provisions previously proposed in the REIT Investment Diversification and Empowerment Act of 2007 (commonly referred to as “RIDEA”); 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 use of joint ventures that may limit our returns on and our flexibility with jointly owned investments; 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; any requirement that we recognize reserves, allowances, credit losses, or impairment charges; 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; our ability to satisfy environmental, social and governance and sustainability commitments and requirements, as well as stakeholder expectations; epidemics, pandemics, or other infectious diseases, including the coronavirus disease (Covid), and health and safety measures intended to reduce their spread; human capital risks, including the loss or limited availability of our key personnel; our reliance on information technology systems and any material failure, inadequacy, interruption, or security failure of that technology; volatility, disruption, or uncertainty in the financial markets; 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, bank failures or other events affecting financial institutions and other factors; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness; 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 Coronavirus, Aid, Relief and Economic Security Act Provider Relief Fund and other Covid-related stimulus and relief programs; our ability to maintain our qualification as a real estate investment trust (“REIT”); our taxable REIT subsidiaries being subject to corporate level tax; tax imposed on any net income from “prohibited transactions”; changes to
Moreover, other risks and uncertainties of which we are not currently aware may also affect our forward-looking statements, and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this communication are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by us on our website or otherwise. We do not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Real estate: |
|
|
|
||||
Buildings and improvements |
$ |
16,448,690 |
|
|
$ |
13,329,464 |
|
Development costs and construction in progress |
|
739,318 |
|
|
|
643,217 |
|
Land and improvements |
|
3,005,974 |
|
|
|
2,647,633 |
|
Accumulated depreciation and amortization |
|
(3,796,108 |
) |
|
|
(3,591,951 |
) |
Net real estate |
|
16,397,874 |
|
|
|
13,028,363 |
|
Loans receivable, net of reserves of |
|
275,478 |
|
|
|
218,450 |
|
Investments in and advances to unconsolidated joint ventures |
|
927,204 |
|
|
|
782,853 |
|
Accounts receivable, net of allowance of |
|
59,658 |
|
|
|
55,820 |
|
Cash and cash equivalents |
|
106,886 |
|
|
|
117,635 |
|
Restricted cash |
|
52,409 |
|
|
|
51,388 |
|
Intangible assets, net |
|
1,076,087 |
|
|
|
314,156 |
|
Assets held for sale, net |
|
— |
|
|
|
117,986 |
|
Right-of-use asset, net |
|
440,558 |
|
|
|
240,155 |
|
Other assets, net |
|
843,554 |
|
|
|
772,044 |
|
Total assets |
$ |
20,179,708 |
|
|
$ |
15,698,850 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Bank line of credit and commercial paper |
$ |
25,000 |
|
|
$ |
720,000 |
|
Term loans |
|
1,645,456 |
|
|
|
496,824 |
|
Senior unsecured notes |
|
6,551,155 |
|
|
|
5,403,378 |
|
Mortgage debt |
|
381,416 |
|
|
|
256,097 |
|
Intangible liabilities, net |
|
227,370 |
|
|
|
127,380 |
|
Liabilities related to assets held for sale, net |
|
— |
|
|
|
729 |
|
Lease liability |
|
313,469 |
|
|
|
206,743 |
|
Accounts payable, accrued liabilities, and other liabilities |
|
709,219 |
|
|
|
657,196 |
|
Deferred revenue |
|
907,852 |
|
|
|
905,633 |
|
Total liabilities |
|
10,760,937 |
|
|
|
8,773,980 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Redeemable noncontrolling interests |
|
1,433 |
|
|
|
48,828 |
|
|
|
|
|
||||
Common stock, |
|
700,317 |
|
|
|
547,156 |
|
Additional paid-in capital |
|
12,859,567 |
|
|
|
10,405,780 |
|
Cumulative dividends in excess of earnings |
|
(4,844,683 |
) |
|
|
(4,621,861 |
) |
Accumulated other comprehensive income (loss) |
|
42,297 |
|
|
|
19,371 |
|
Total stockholders’ equity |
|
8,757,498 |
|
|
|
6,350,446 |
|
|
|
|
|
||||
Joint venture partners |
|
324,681 |
|
|
|
310,998 |
|
Non-managing member unitholders |
|
335,159 |
|
|
|
214,598 |
|
Total noncontrolling interests |
|
659,840 |
|
|
|
525,596 |
|
|
|
|
|
||||
Total equity |
|
9,417,338 |
|
|
|
6,876,042 |
|
|
|
|
|
||||
Total liabilities and equity |
$ |
20,179,708 |
|
|
$ |
15,698,850 |
|
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
||||||||||
Rental and related revenues |
$ |
546,781 |
|
|
$ |
409,967 |
|
|
$ |
1,008,814 |
|
|
$ |
802,398 |
|
Resident fees and services |
|
140,891 |
|
|
|
130,184 |
|
|
|
279,667 |
|
|
|
257,268 |
|
Interest income and other |
|
7,832 |
|
|
|
5,279 |
|
|
|
13,583 |
|
|
|
11,442 |
|
Total revenues |
|
695,504 |
|
|
|
545,430 |
|
|
|
1,302,064 |
|
|
|
1,071,108 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
74,910 |
|
|
|
49,074 |
|
|
|
135,817 |
|
|
|
97,037 |
|
Depreciation and amortization |
|
283,498 |
|
|
|
197,573 |
|
|
|
502,717 |
|
|
|
376,798 |
|
Operating |
|
273,827 |
|
|
|
221,837 |
|
|
|
517,556 |
|
|
|
444,925 |
|
General and administrative |
|
26,718 |
|
|
|
25,936 |
|
|
|
50,017 |
|
|
|
50,483 |
|
Transaction and merger-related costs |
|
7,759 |
|
|
|
637 |
|
|
|
114,979 |
|
|
|
3,062 |
|
Impairments and loan loss reserves (recoveries), net |
|
(553 |
) |
|
|
2,607 |
|
|
|
10,905 |
|
|
|
394 |
|
Total costs and expenses |
|
666,159 |
|
|
|
497,664 |
|
|
|
1,331,991 |
|
|
|
972,699 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain (loss) on sales of real estate, net |
|
122,044 |
|
|
|
4,885 |
|
|
|
125,299 |
|
|
|
86,463 |
|
Other income (expense), net |
|
4,004 |
|
|
|
1,955 |
|
|
|
82,520 |
|
|
|
2,727 |
|
Total other income (expense), net |
|
126,048 |
|
|
|
6,840 |
|
|
|
207,819 |
|
|
|
89,190 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |
|
155,393 |
|
|
|
54,606 |
|
|
|
177,892 |
|
|
|
187,599 |
|
Income tax benefit (expense) |
|
(2,728 |
) |
|
|
(1,136 |
) |
|
|
(16,426 |
) |
|
|
(1,438 |
) |
Equity income (loss) from unconsolidated joint ventures |
|
51 |
|
|
|
2,729 |
|
|
|
2,427 |
|
|
|
4,545 |
|
Net income (loss) |
|
152,716 |
|
|
|
56,199 |
|
|
|
163,893 |
|
|
|
190,706 |
|
Noncontrolling interests’ share in earnings |
|
(6,669 |
) |
|
|
(4,300 |
) |
|
|
(11,170 |
) |
|
|
(19,855 |
) |
Net income (loss) attributable to Healthpeak Properties, Inc. |
|
146,047 |
|
|
|
51,899 |
|
|
|
152,723 |
|
|
|
170,851 |
|
Participating securities’ share in earnings |
|
(214 |
) |
|
|
(149 |
) |
|
|
(414 |
) |
|
|
(1,402 |
) |
Net income (loss) applicable to common shares |
$ |
145,833 |
|
|
$ |
51,750 |
|
|
$ |
152,309 |
|
|
$ |
169,449 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.21 |
|
|
$ |
0.09 |
|
|
$ |
0.23 |
|
|
$ |
0.31 |
|
Diluted |
$ |
0.21 |
|
|
$ |
0.09 |
|
|
$ |
0.23 |
|
|
$ |
0.31 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
702,382 |
|
|
|
547,026 |
|
|
|
651,642 |
|
|
|
546,936 |
|
Diluted |
|
703,268 |
|
|
|
547,294 |
|
|
|
652,113 |
|
|
|
547,204 |
|
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) applicable to common shares |
|
$ |
145,833 |
|
|
$ |
51,750 |
|
|
$ |
152,309 |
|
|
$ |
169,449 |
|
Real estate related depreciation and amortization |
|
|
283,498 |
|
|
|
197,573 |
|
|
|
502,717 |
|
|
|
376,798 |
|
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures |
|
|
11,621 |
|
|
|
5,893 |
|
|
|
20,393 |
|
|
|
11,887 |
|
Noncontrolling interests’ share of real estate related depreciation and amortization |
|
|
(4,732 |
) |
|
|
(4,685 |
) |
|
|
(9,174 |
) |
|
|
(9,470 |
) |
Loss (gain) on sales of depreciable real estate, net |
|
|
(122,044 |
) |
|
|
(4,885 |
) |
|
|
(125,299 |
) |
|
|
(86,463 |
) |
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,546 |
|
Loss (gain) upon change of control, net(1) |
|
|
(198 |
) |
|
|
(234 |
) |
|
|
(77,978 |
) |
|
|
(234 |
) |
Taxes associated with real estate dispositions(2) |
|
|
49 |
|
|
|
— |
|
|
|
11,657 |
|
|
|
— |
|
Nareit FFO applicable to common shares |
|
|
314,027 |
|
|
|
245,412 |
|
|
|
474,625 |
|
|
|
473,513 |
|
Distributions on dilutive convertible units and other |
|
|
4,583 |
|
|
|
2,342 |
|
|
|
5,281 |
|
|
|
4,687 |
|
Diluted Nareit FFO applicable to common shares |
|
$ |
318,610 |
|
|
$ |
247,754 |
|
|
$ |
479,906 |
|
|
$ |
478,200 |
|
Diluted Nareit FFO per common share |
|
$ |
0.44 |
|
|
$ |
0.45 |
|
|
$ |
0.72 |
|
|
$ |
0.86 |
|
Weighted average shares outstanding - Diluted Nareit FFO |
|
|
717,797 |
|
|
|
554,584 |
|
|
|
661,999 |
|
|
|
554,494 |
|
Impact of adjustments to Nareit FFO: |
|
|
|
|
|
|
|
|
||||||||
Transaction and merger-related items(3) |
|
$ |
3,369 |
|
|
$ |
581 |
|
|
$ |
106,198 |
|
|
$ |
2,944 |
|
Other impairments (recoveries) and other losses (gains), net(4) |
|
|
(553 |
) |
|
|
2,432 |
|
|
|
11,300 |
|
|
|
1,159 |
|
Restructuring and severance-related charges |
|
|
— |
|
|
|
1,368 |
|
|
|
— |
|
|
|
1,368 |
|
Casualty-related charges (recoveries), net(5) |
|
|
(1,204 |
) |
|
|
(591 |
) |
|
|
(1,204 |
) |
|
|
(243 |
) |
Total adjustments |
|
|
1,612 |
|
|
|
3,790 |
|
|
|
116,294 |
|
|
|
5,228 |
|
FFO as Adjusted applicable to common shares |
|
|
315,639 |
|
|
|
249,202 |
|
|
|
590,919 |
|
|
|
478,741 |
|
Distributions on dilutive convertible units and other |
|
|
4,581 |
|
|
|
2,338 |
|
|
|
6,960 |
|
|
|
4,680 |
|
Diluted FFO as Adjusted applicable to common shares |
|
$ |
320,220 |
|
|
$ |
251,540 |
|
|
$ |
597,879 |
|
|
$ |
483,421 |
|
Diluted FFO as Adjusted per common share |
|
$ |
0.45 |
|
|
$ |
0.45 |
|
|
$ |
0.90 |
|
|
$ |
0.87 |
|
Weighted average shares outstanding - Diluted FFO as Adjusted |
|
|
717,797 |
|
|
|
554,584 |
|
|
|
664,325 |
|
|
|
554,494 |
|
_______________________________________ |
||
(1) |
The six months ended June 30, 2024 includes a gain upon change of control related to the sale of a |
|
(2) |
The six months ended June 30, 2024 includes non-cash income tax expense related to the sale of a |
|
(3) |
The three and six months ended June 30, 2024 includes costs related to the Merger, which are primarily comprised of advisory, legal, accounting, tax, post-combination severance and stock compensation expense, and other costs of combining operations with Physicians Realty Trust that were incurred during the period. These costs were partially offset by termination fee income of |
|
(4) |
The three and six months ended June 30, 2024 and 2023 includes reserves and (recoveries) for expected loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations. |
|
(5) |
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, except per share data |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
FFO as Adjusted applicable to common shares |
$ |
315,639 |
|
|
$ |
249,202 |
|
|
$ |
590,919 |
|
|
$ |
478,741 |
|
Stock-based compensation amortization expense |
|
4,814 |
|
|
|
4,245 |
|
|
|
8,180 |
|
|
|
7,532 |
|
Amortization of deferred financing costs and debt discounts (premiums) |
|
7,317 |
|
|
|
2,954 |
|
|
|
11,840 |
|
|
|
5,774 |
|
Straight-line rents(1) |
|
(10,453 |
) |
|
|
(4,683 |
) |
|
|
(22,545 |
) |
|
|
(5,431 |
) |
AFFO capital expenditures |
|
(35,718 |
) |
|
|
(19,444 |
) |
|
|
(53,235 |
) |
|
|
(42,233 |
) |
Deferred income taxes |
|
1,021 |
|
|
|
(242 |
) |
|
|
1,745 |
|
|
|
(503 |
) |
Amortization of above (below) market lease intangibles, net |
|
(8,086 |
) |
|
|
(8,838 |
) |
|
|
(15,437 |
) |
|
|
(14,641 |
) |
Other AFFO adjustments |
|
(2,169 |
) |
|
|
(2,339 |
) |
|
|
(3,667 |
) |
|
|
(730 |
) |
AFFO applicable to common shares |
|
272,365 |
|
|
|
220,855 |
|
|
|
517,800 |
|
|
|
428,509 |
|
Distributions on dilutive convertible units and other |
|
4,582 |
|
|
|
2,342 |
|
|
|
6,799 |
|
|
|
4,686 |
|
Diluted AFFO applicable to common shares |
$ |
276,947 |
|
|
$ |
223,197 |
|
|
$ |
524,599 |
|
|
$ |
433,195 |
|
Diluted AFFO per common share |
$ |
0.39 |
|
|
$ |
0.40 |
|
|
$ |
0.79 |
|
|
$ |
0.78 |
|
Weighted average shares outstanding - Diluted AFFO |
|
717,797 |
|
|
|
554,584 |
|
|
|
663,975 |
|
|
|
554,494 |
|
_______________________________________ |
||
(1) |
The six months ended June 30, 2023 includes an |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725559703/en/
Andrew Johns, CFA
Senior Vice President – Investor Relations
720-428-5400
Source: Healthpeak Properties, Inc.
FAQ
What was Healthpeak's Q2 2024 net income per share?
How much did Healthpeak increase its 2024 FFO as Adjusted guidance?
What was the value of outpatient medical sales closed by Healthpeak in Q2 2024?
How many shares did Healthpeak repurchase in Q2 2024?