Healthpeak Properties Reports Third Quarter 2024 Results and Declares Quarterly Cash Dividend on Common Stock
Healthpeak Properties reported strong Q3 2024 results with net income of $0.12 per share, Nareit FFO of $0.44 per share, and FFO as Adjusted of $0.45 per share. The company achieved 4.1% Total Merger-Combined Same-Store Cash NOI growth and increased its 2024 guidance. Key highlights include executing 733,000 square feet of life science lease agreements, 3 million square feet of outpatient medical leases with 89% retention, and increasing expected merger-related synergies to $50 million. The company maintained strong financial health with Net Debt to Adjusted EBITDAre at 5.1x and declared a quarterly dividend of $0.30 per share.
Healthpeak Properties ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di $0,12 per azione, un FFO Nareit di $0,44 per azione e un FFO come aggiustato di $0,45 per azione. L'azienda ha ottenuto una crescita del 4,1% del Cash NOI dei negozi combinati per fusione e ha aumentato le sue previsioni per il 2024. I punti salienti includono la conclusione di accordi di locazione per scienze della vita per 733.000 piedi quadrati, locazioni mediche ambulatoriali per 3 milioni di piedi quadrati con una retention dell'89% e un incremento delle sinergie legate alla fusione previste a $50 milioni. L'azienda ha mantenuto una forte salute finanziaria con un rapporto Debito Netto su EBITDAre Aggiustato di 5,1x e ha dichiarato un dividendo trimestrale di $0,30 per azione.
Healthpeak Properties reportó sólidos resultados en el tercer trimestre de 2024, con un ingreso neto de $0,12 por acción, un FFO Nareit de $0,44 por acción y un FFO Ajustado de $0,45 por acción. La compañía logró un crecimiento del 4,1% en el Cash NOI combinado de tiendas por fusión y aumentó su guía para 2024. Los puntos destacados incluyen la ejecución de acuerdos de arrendamiento de ciencias de la vida por 733,000 pies cuadrados, arrendamientos médicos ambulatorios por 3 millones de pies cuadrados con una retención del 89%, y el aumento de las sinergias relacionadas con la fusión esperadas a $50 millones. La compañía mantuvo una sólida salud financiera con una relación de Deuda Neta a EBITDAre Ajustado de 5,1x y declaró un dividendo trimestral de $0,30 por acción.
Healthpeak Properties는 2024년 3분기에 주당 순이익 $0.12, Nareit FFO 주당 $0.44, 조정된 FFO 주당 $0.45로 강력한 실적을 보고했습니다. 회사는 합병된 동일 매장 현금 NOI 4.1% 성장을 달성하였고, 2024년 가이던스를 증가시켰습니다. 주요 하이라이트에는 733,000 평방피트의 생명 과학 임대 계약 체결, 300만 평방피트의 외래 의료 임대 계약 체결(유지율 89%) 및 예상 합병 관련 시너지를 $5000만으로 증가시킨 것이 포함됩니다. 회사는 조정된 EBITDAre에 대한 순부채 비율을 5.1배로 유지하며, 주당 $0.30의 분기 배당금을 선언했습니다.
Healthpeak Properties a annoncé des résultats solides pour le troisième trimestre 2024 avec un revenu net de 0,12 $ par action, un FFO Nareit de 0,44 $ par action et un FFO ajusté de 0,45 $ par action. L'entreprise a enregistré une croissance de 4,1 % du Cash NOI des magasins combinés et a rehaussé ses prévisions pour 2024. Parmi les faits saillants, on note la conclusion de baux en sciences de la vie de 733 000 pieds carrés, des baux médicaux ambulatoires de 3 millions de pieds carrés avec un taux de rétention de 89 % et une augmentation des synergies liées à la fusion attendues à 50 millions de dollars. L'entreprise a maintenu une solide santé financière avec un ratio de dette nette sur EBITDAre ajusté de 5,1x et a déclaré un dividende trimestriel de 0,30 $ par action.
Healthpeak Properties meldete starke Ergebnisse für das 3. Quartal 2024 mit einem Nettogewinn von $0,12 pro Aktie, einem Nareit FFO von $0,44 pro Aktie und einem FFO als angepasst von $0,45 pro Aktie. Das Unternehmen erreichte ein Wachstum des Total Merger-Combined Same-Store Cash NOI von 4,1% und erhöhte seine Prognose für 2024. Zu den wichtigsten Punkten gehören die Durchführung von Mietverträgen im Bereich Lebenswissenschaften über 733.000 Quadratfuß, outpatient medizinische Mietverträge über 3 Millionen Quadratfuß mit einer Retentionsrate von 89 % und die Erhöhung der erwarteten synergistischen Effekte aus der Fusion auf 50 Millionen Dollar. Das Unternehmen hielt eine starke finanzielle Gesundheit mit einem Verhältnis von Nettoverschuldung zu_adjusted EBITDAre von 5,1x und erklärte eine vierteljährliche Dividende von $0,30 pro Aktie.
- Total Merger-Combined Same-Store Cash NOI growth of 4.1%
- Increased 2024 FFO and AFFO guidance by $0.01 per share
- Increased merger-related synergies expectation to $50 million
- Strong leasing activity with 733,000 sq ft of life science leases
- 89% retention rate in outpatient medical leases with 10% cash rent mark-to-market on renewals
- Year-over-year decline in Nareit FFO per share from $0.46 to $0.44 in Q3
- Decrease in year-to-date net income per share from $0.43 to $0.36
Insights
The Q3 2024 results demonstrate solid performance with several positive indicators. FFO as Adjusted of
Key strengths include strong leasing momentum with 733,000 square feet of lab space leased and
The successful integration of Physicians Realty Trust merger, demonstrated by increased synergy expectations and property management internalization, positions the company well for continued operational efficiency.
The leasing activity across key markets shows remarkable strength in the healthcare real estate sector. Notable achievements include reaching
Strategic market positioning through leadership appointments in key markets (Bay Area, Boston, San Diego) indicates a focus on strengthening regional presence. The combination of new developments, property management internalization and robust leasing pipeline suggests a well-executed growth strategy in premium healthcare markets.
THIRD QUARTER 2024 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
-
Net income of
per share, Nareit FFO of$0.12 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$0.41 4.1% -
Increased the midpoint of both 2024 FFO as Adjusted and AFFO guidance by
+ per share, and increased Total Merger-Combined Same-Store Cash (Adjusted) NOI growth guidance by +50 basis points at the midpoint$0.01 -
Increased expected 2024 merger-related synergies to approximately
, driven by property management internalization$50 million -
Continued strong momentum in life science with 733,000 square feet of lease executions during the third quarter and through October 24, 2024:
-
Executed 465,000 square feet of lab leases during the third quarter 2024, including a 37,000 square foot lease at Gateway; achieved a positive
10% cash rent mark-to-market on renewals -
Executed 268,000 square feet of lab leases in October 2024 including 205,000 square feet at Portside and 63,000 square feet at Vantage bringing these marquee campuses to approximately
90% and70% leased, respectively -
Signed letters of intent (“LOI”) on an additional 575,000 square feet of lab leases including 33,000 square feet at Gateway bringing the development to
42% leased or committed
-
Executed 465,000 square feet of lab leases during the third quarter 2024, including a 37,000 square foot lease at Gateway; achieved a positive
-
Outpatient medical new and renewal lease executions totaled 3 million square feet with
89% retention and positive10% cash rent mark-to-market on renewals, including the previously announced CommonSpirit renewal -
Commenced a
, 79,000 square foot Class A outpatient medical development in$37 million Kansas City that is100% pre-leased to HCA - Promoted Natalia De Michele to Senior Vice President – Bay Area Market Lead and hired Claire Donegan Brown as Senior Vice President – Boston Market Lead, both reporting to Scott Bohn, Chief Development Officer and Head of Lab
- Net Debt to Adjusted EBITDAre was 5.1x for the quarter ended September 30, 2024
-
On October 23, 2024, Healthpeak's Board of Directors declared a quarterly common stock cash dividend of
per share to be paid on November 15, 2024, to stockholders of record as of the close of business on November 4, 2024$0.30 - Received the GRESB Green Star designation for the thirteenth consecutive year and recognized for leading governance and corporate impact disclosures by Governance Intelligence and IR Magazine
THIRD QUARTER COMPARISON
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
||||||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||
Net income, diluted |
$ |
85,722 |
|
$ |
0.12 |
|
$ |
64,048 |
|
$ |
0.12 |
||||
Nareit FFO, diluted |
|
315,824 |
|
|
|
0.44 |
|
|
|
252,566 |
|
|
|
0.46 |
|
FFO as Adjusted, diluted |
|
320,776 |
|
|
|
0.45 |
|
|
|
251,647 |
|
|
|
0.45 |
|
AFFO, diluted |
|
289,509 |
|
|
|
0.41 |
|
|
|
219,645 |
|
|
|
0.40 |
|
YEAR TO DATE COMPARISON
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
||||||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||||||
Net income, diluted |
$ |
238,057 |
|
$ |
0.36 |
|
$ |
233,497 |
|
$ |
0.43 |
||||
Nareit FFO, diluted |
|
797,546 |
|
|
|
1.17 |
|
|
|
730,764 |
|
|
|
1.32 |
|
FFO as Adjusted, diluted |
|
918,665 |
|
|
|
1.35 |
|
|
|
735,067 |
|
|
|
1.33 |
|
AFFO, diluted |
|
814,404 |
|
|
|
1.20 |
|
|
|
652,839 |
|
|
|
1.18 |
|
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 "September 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 September, Healthpeak internalized outpatient medical property management in
Healthpeak now expects to achieve approximately
LIFE SCIENCE LEASING UPDATE
During the third quarter 2024 and through October 24, 2024, Healthpeak executed lab lease agreements totaling 733,000 square feet.
- During the third quarter 2024, Healthpeak executed 465,000 square feet of lease agreements.
- From October 1 to October 24, 2024, Healthpeak executed an additional 268,000 square feet of lease agreements.
Year-to-date through October 24, 2024, Healthpeak has executed 1.7 million square feet of lab leases with an additional 575,000 square feet under signed LOIs.
Highlights of recent leasing activity at marquee projects includes:
-
Portside (
South San Francisco ): In October, signed a 12.5-year, 205,000 square foot new lease with a private life science company.
The tenant will relocate from its current space within Healthpeak’s portfolio to two full buildings on the Portside campus:
- 1100 Veterans Boulevard: Tenant improvements on the 112,500 square foot building will commence in late 2024 with occupancy expected in the third quarter of 2025.
- 1120 Veterans Boulevard: Tenant improvements on the 92,500 square foot building will commence in mid-2025 with the phase-in of approximately 31,000 square feet of occupancy in each of 2026, 2027, and 2028.
Since 2021, Healthpeak has signed or commenced 854,000 square feet of leases at Portside bringing the campus to approximately
Healthpeak is also under construction to refresh and modernize Portside's landscaping, entrances, and signage with improvements to pedestrian connectivity to Healthpeak’s adjacent Cove campus and amenities center. Combined, The Cove and Portside campuses create a nearly 2 million square foot contiguous campus at the doorstep of South San Francisco’s prestigious biotech market.
-
Vantage (
South San Francisco ): In October, signed an 8-year, 63,000 square foot lease with a private biotech company.
The tenant will relocate from its current space within Healthpeak’s portfolio after tenant improvements are completed in late 2025. The two-floor lease brings the 346,000 square foot first phase of Vantage to approximately70% leased.
Additionally, in September, Healthpeak held the grand opening for The Hangar, a 40,000 square foot market-leading tenant amenity center on the Vantage campus. The Hangar features four unique quick-service restaurants, an artisanal coffee bar, a full-service restaurant, a bar and lounge, a fitness center, and a state-of-the-art conference and meeting space.
-
Gateway (Sorrento Mesa): In July, signed an 8-year, 37,000 square foot lease with a private biotech company. The lease is expected to commence in the third quarter of 2025. Additionally, in October, Healthpeak signed an LOI for 33,000 square feet with a mid-cap public biotech. Both tenants are new to the Healthpeak portfolio.
The recent leasing activity brings the Gateway development to42% leased or committed.
LIFE SCIENCE MARKET LEADERSHIP UPDATES
Healthpeak today announced the following leadership updates, effective January 1, 2025:
-
Natalia De Michele will be promoted to Senior Vice President – Bay Area Market Lead, where she will lead all aspects of Healthpeak’s lab leasing, development, and asset management activities in the
Bay Area . Since joining Healthpeak in 2018, Ms. De Michele has executed over six million square feet of lab leasing transactions. -
Claire Donegan Brown will join Healthpeak in January 2025 as Senior Vice President – Boston Market Lead and assume leadership of the company’s
Boston lab portfolio. Ms. Brown brings 12 years of leasing, development, and asset management experience within theBoston market, having formerly worked for Greatland Realty Partners, an owner and developer of lab real estate inBoston , and BXP, a publicly-traded real estate investment trust.
Mike Dorris will continue leading all aspects of Healthpeak’s lab leasing, development, and asset management activities in
All three market leaders will report to Scott Bohn, Chief Development Officer and Head of Lab.
During the third quarter, Healthpeak added a new development to its program with HCA. The
CORPORATE IMPACT
Healthpeak received the GRESB Green Star designation for the thirteenth consecutive year. Healthpeak was also named a finalist by Governance Intelligence and IR Magazine for Best Proxy Statement for the fifth consecutive year and Best ESG Reporting for the third consecutive year. The Company also earned a 2024 International MarCom Gold Award for its 2023 Corporate Impact Report from the Association of Marketing and Communication Professionals (AMCP).
To learn more about Healthpeak's commitment to responsible business and view our 2023 ESG Corporate Impact Report, please visit www.healthpeak.com/corporate-impact.
DIVIDEND
On October 23, 2024, Healthpeak's Board of Directors 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
–$0.27 to$0.31 –$0.40 $0.42 -
Diluted Nareit FFO per share from
–$1.59 to$1.63 –$1.61 $1.63 -
Diluted FFO as Adjusted per share from
–$1.77 to$1.81 –$1.79 $1.81 -
Diluted AFFO per share from
–$1.54 to$1.58 –$1.56 $1.58 -
Total Merger-Combined Same-Store Cash (Adjusted) NOI growth from
2.75% –4.25% to3.5% –4.5%
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 12 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, October 25, 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/713594150. 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 October 23, 2025, and a telephonic replay can be accessed through November 1, 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 (the "Merger"); (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 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 |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Real estate: |
|
|
|
||||
Buildings and improvements |
$ |
16,059,802 |
|
|
$ |
13,329,464 |
|
Development costs and construction in progress |
|
830,310 |
|
|
|
643,217 |
|
Land and improvements |
|
2,927,675 |
|
|
|
2,647,633 |
|
Accumulated depreciation and amortization |
|
(3,925,375 |
) |
|
|
(3,591,951 |
) |
Net real estate |
|
15,892,412 |
|
|
|
13,028,363 |
|
Loans receivable, net of reserves of |
|
677,590 |
|
|
|
218,450 |
|
Investments in and advances to unconsolidated joint ventures |
|
931,844 |
|
|
|
782,853 |
|
Accounts receivable, net of allowance of |
|
64,979 |
|
|
|
55,820 |
|
Cash and cash equivalents |
|
180,430 |
|
|
|
117,635 |
|
Restricted cash |
|
61,615 |
|
|
|
51,388 |
|
Intangible assets, net |
|
898,379 |
|
|
|
314,156 |
|
Assets held for sale, net |
|
— |
|
|
|
117,986 |
|
Right-of-use asset, net |
|
427,711 |
|
|
|
240,155 |
|
Other assets, net |
|
834,806 |
|
|
|
772,044 |
|
Total assets |
$ |
19,969,766 |
|
|
$ |
15,698,850 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Bank line of credit and commercial paper |
$ |
— |
|
|
$ |
720,000 |
|
Term loans |
|
1,645,748 |
|
|
|
496,824 |
|
Senior unsecured notes |
|
6,557,170 |
|
|
|
5,403,378 |
|
Mortgage debt |
|
380,459 |
|
|
|
256,097 |
|
Intangible liabilities, net |
|
202,857 |
|
|
|
127,380 |
|
Liabilities related to assets held for sale, net |
|
— |
|
|
|
729 |
|
Lease liability |
|
308,277 |
|
|
|
206,743 |
|
Accounts payable, accrued liabilities, and other liabilities |
|
749,881 |
|
|
|
657,196 |
|
Deferred revenue |
|
903,371 |
|
|
|
905,633 |
|
Total liabilities |
|
10,747,763 |
|
|
|
8,773,980 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Redeemable noncontrolling interests |
|
1,318 |
|
|
|
48,828 |
|
|
|
|
|
||||
Common stock, |
|
699,405 |
|
|
|
547,156 |
|
Additional paid-in capital |
|
12,844,634 |
|
|
|
10,405,780 |
|
Cumulative dividends in excess of earnings |
|
(4,968,819 |
) |
|
|
(4,621,861 |
) |
Accumulated other comprehensive income (loss) |
|
(12,381 |
) |
|
|
19,371 |
|
Total stockholders’ equity |
|
8,562,839 |
|
|
|
6,350,446 |
|
|
|
|
|
||||
Joint venture partners |
|
321,949 |
|
|
|
310,998 |
|
Non-managing member unitholders |
|
335,897 |
|
|
|
214,598 |
|
Total noncontrolling interests |
|
657,846 |
|
|
|
525,596 |
|
|
|
|
|
||||
Total equity |
|
9,220,685 |
|
|
|
6,876,042 |
|
|
|
|
|
||||
Total liabilities and equity |
$ |
19,969,766 |
|
|
$ |
15,698,850 |
|
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
||||||||||
Rental and related revenues |
$ |
543,251 |
|
|
$ |
417,075 |
|
|
$ |
1,552,065 |
|
|
$ |
1,219,473 |
|
Resident fees and services |
|
142,845 |
|
|
|
133,808 |
|
|
|
422,512 |
|
|
|
391,076 |
|
Interest income and other |
|
14,301 |
|
|
|
5,360 |
|
|
|
27,884 |
|
|
|
16,802 |
|
Total revenues |
|
700,397 |
|
|
|
556,243 |
|
|
|
2,002,461 |
|
|
|
1,627,351 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
74,105 |
|
|
|
50,510 |
|
|
|
209,922 |
|
|
|
147,547 |
|
Depreciation and amortization |
|
280,019 |
|
|
|
184,559 |
|
|
|
782,736 |
|
|
|
561,357 |
|
Operating |
|
280,279 |
|
|
|
232,734 |
|
|
|
797,835 |
|
|
|
677,659 |
|
General and administrative |
|
23,216 |
|
|
|
23,093 |
|
|
|
73,233 |
|
|
|
73,576 |
|
Transaction and merger-related costs |
|
7,134 |
|
|
|
36 |
|
|
|
122,113 |
|
|
|
3,098 |
|
Impairments and loan loss reserves (recoveries), net |
|
441 |
|
|
|
(550 |
) |
|
|
11,346 |
|
|
|
(156 |
) |
Total costs and expenses |
|
665,194 |
|
|
|
490,382 |
|
|
|
1,997,185 |
|
|
|
1,463,081 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain (loss) on sales of real estate, net |
|
62,325 |
|
|
|
— |
|
|
|
187,624 |
|
|
|
86,463 |
|
Other income (expense), net |
|
982 |
|
|
|
1,481 |
|
|
|
83,502 |
|
|
|
4,208 |
|
Total other income (expense), net |
|
63,307 |
|
|
|
1,481 |
|
|
|
271,126 |
|
|
|
90,671 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |
|
98,510 |
|
|
|
67,342 |
|
|
|
276,402 |
|
|
|
254,941 |
|
Income tax benefit (expense) |
|
(1,938 |
) |
|
|
(787 |
) |
|
|
(18,364 |
) |
|
|
(2,225 |
) |
Equity income (loss) from unconsolidated joint ventures |
|
(3,834 |
) |
|
|
2,101 |
|
|
|
(1,407 |
) |
|
|
6,646 |
|
Net income (loss) |
|
92,738 |
|
|
|
68,656 |
|
|
|
256,631 |
|
|
|
259,362 |
|
Noncontrolling interests’ share in earnings |
|
(6,866 |
) |
|
|
(4,442 |
) |
|
|
(18,036 |
) |
|
|
(24,297 |
) |
Net income (loss) attributable to Healthpeak Properties, Inc. |
|
85,872 |
|
|
|
64,214 |
|
|
|
238,595 |
|
|
|
235,065 |
|
Participating securities’ share in earnings |
|
(197 |
) |
|
|
(166 |
) |
|
|
(610 |
) |
|
|
(1,568 |
) |
Net income (loss) applicable to common shares |
$ |
85,675 |
|
|
$ |
64,048 |
|
|
$ |
237,985 |
|
|
$ |
233,497 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.36 |
|
|
$ |
0.43 |
|
Diluted |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.36 |
|
|
$ |
0.43 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
699,349 |
|
|
|
547,062 |
|
|
|
667,536 |
|
|
|
546,978 |
|
Diluted |
|
700,146 |
|
|
|
547,331 |
|
|
|
668,096 |
|
|
|
547,247 |
|
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (loss) applicable to common shares |
|
$ |
85,675 |
|
|
$ |
64,048 |
|
|
$ |
237,985 |
|
|
$ |
233,497 |
|
Real estate related depreciation and amortization |
|
|
280,019 |
|
|
|
184,559 |
|
|
|
782,736 |
|
|
|
561,357 |
|
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures |
|
|
12,127 |
|
|
|
6,190 |
|
|
|
32,520 |
|
|
|
18,076 |
|
Noncontrolling interests’ share of real estate related depreciation and amortization |
|
|
(4,534 |
) |
|
|
(4,571 |
) |
|
|
(13,705 |
) |
|
|
(14,042 |
) |
Loss (gain) on sales of depreciable real estate, net |
|
|
(62,325 |
) |
|
|
— |
|
|
|
(187,624 |
) |
|
|
(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) |
|
|
430 |
|
|
|
— |
|
|
|
(77,548 |
) |
|
|
(234 |
) |
Taxes associated with real estate dispositions(2) |
|
|
(145 |
) |
|
|
— |
|
|
|
11,512 |
|
|
|
— |
|
Nareit FFO applicable to common shares |
|
|
311,247 |
|
|
|
250,226 |
|
|
|
785,876 |
|
|
|
723,737 |
|
Distributions on dilutive convertible units and other |
|
|
4,577 |
|
|
|
2,340 |
|
|
|
11,670 |
|
|
|
7,027 |
|
Diluted Nareit FFO applicable to common shares |
|
$ |
315,824 |
|
|
$ |
252,566 |
|
|
$ |
797,546 |
|
|
$ |
730,764 |
|
Diluted Nareit FFO per common share |
|
$ |
0.44 |
|
|
$ |
0.46 |
|
|
$ |
1.17 |
|
|
$ |
1.32 |
|
Weighted average shares outstanding - Diluted Nareit FFO |
|
|
714,715 |
|
|
|
554,614 |
|
|
|
681,128 |
|
|
|
554,535 |
|
Impact of adjustments to Nareit FFO: |
|
|
|
|
|
|
|
|
||||||||
Transaction and merger-related items(3) |
|
$ |
2,725 |
|
|
$ |
49 |
|
|
$ |
108,923 |
|
|
$ |
2,993 |
|
Other impairments (recoveries) and other losses (gains), net(4) |
|
|
441 |
|
|
|
(602 |
) |
|
|
11,741 |
|
|
|
557 |
|
Restructuring and severance-related charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,368 |
|
Casualty-related charges (recoveries), net(5) |
|
|
1,792 |
|
|
|
(367 |
) |
|
|
588 |
|
|
|
(610 |
) |
Total adjustments |
|
|
4,958 |
|
|
|
(920 |
) |
|
|
121,252 |
|
|
|
4,308 |
|
FFO as Adjusted applicable to common shares |
|
|
316,205 |
|
|
|
249,306 |
|
|
|
907,128 |
|
|
|
728,045 |
|
Distributions on dilutive convertible units and other |
|
|
4,571 |
|
|
|
2,341 |
|
|
|
11,537 |
|
|
|
7,022 |
|
Diluted FFO as Adjusted applicable to common shares |
|
$ |
320,776 |
|
|
$ |
251,647 |
|
|
$ |
918,665 |
|
|
$ |
735,067 |
|
Diluted FFO as Adjusted per common share |
|
$ |
0.45 |
|
|
$ |
0.45 |
|
|
$ |
1.35 |
|
|
$ |
1.33 |
|
Weighted average shares outstanding - Diluted FFO as Adjusted |
|
|
714,715 |
|
|
|
554,614 |
|
|
|
681,128 |
|
|
|
554,535 |
|
_______________________________________ |
||
(1) |
The nine months ended September 30, 2024 includes a gain upon change of control related to the sale of a |
|
(2) |
The nine months ended September 30, 2024 includes non-cash income tax expense related to the sale of a |
|
(3) |
The three and nine months ended September 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 nine months ended September 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
FFO as Adjusted applicable to common shares |
$ |
316,205 |
|
|
$ |
249,306 |
|
|
$ |
907,128 |
|
|
$ |
728,045 |
|
Stock-based compensation amortization expense |
|
3,755 |
|
|
|
3,434 |
|
|
|
11,935 |
|
|
|
10,966 |
|
Amortization of deferred financing costs and debt discounts (premiums) |
|
7,408 |
|
|
|
3,054 |
|
|
|
19,247 |
|
|
|
8,828 |
|
Straight-line rents(1) |
|
(10,346 |
) |
|
|
(7,279 |
) |
|
|
(32,891 |
) |
|
|
(12,710 |
) |
AFFO capital expenditures |
|
(23,510 |
) |
|
|
(24,031 |
) |
|
|
(76,744 |
) |
|
|
(66,264 |
) |
Deferred income taxes |
|
585 |
|
|
|
(430 |
) |
|
|
2,330 |
|
|
|
(933 |
) |
Amortization of above (below) market lease intangibles, net |
|
(7,887 |
) |
|
|
(5,626 |
) |
|
|
(23,325 |
) |
|
|
(20,267 |
) |
Other AFFO adjustments |
|
(1,277 |
) |
|
|
(1,123 |
) |
|
|
(4,947 |
) |
|
|
(1,852 |
) |
AFFO applicable to common shares |
|
284,933 |
|
|
|
217,305 |
|
|
|
802,733 |
|
|
|
645,813 |
|
Distributions on dilutive convertible units and other |
|
4,576 |
|
|
|
2,340 |
|
|
|
11,671 |
|
|
|
7,026 |
|
Diluted AFFO applicable to common shares |
$ |
289,509 |
|
|
$ |
219,645 |
|
|
$ |
814,404 |
|
|
$ |
652,839 |
|
Diluted AFFO per common share |
$ |
0.41 |
|
|
$ |
0.40 |
|
|
$ |
1.20 |
|
|
$ |
1.18 |
|
Weighted average shares outstanding - Diluted AFFO |
|
714,715 |
|
|
|
554,614 |
|
|
|
681,128 |
|
|
|
554,535 |
|
_______________________________________ |
||
(1) |
The nine months ended September 30, 2023 includes an |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024131258/en/
Andrew Johns, CFA
Senior Vice President – Investor Relations
720-428-5400
Source: Healthpeak Properties, Inc.
FAQ
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