Healthpeak Reports Second Quarter 2021 Results
Healthpeak Properties (NYSE: PEAK) reported a net income of $0.51 per share for Q2 2021, with Nareit FFO at $0.28 and FFO as Adjusted at $0.40. The company achieved a blended Total Same-Store Portfolio Cash NOI growth of 1.2% and 7.6% when excluding CARES Act grants. Healthpeak closed $425 million in MOB acquisitions and completed $249 million in senior housing sales. The company declared a quarterly dividend of $0.30 per share, to be paid on August 20, 2021. Updated 2021 guidance suggests diluted earnings per share revised to $0.95 – $1.01.
- Net income increased to $277.5 million from $51.1 million year-over-year.
- Achieved 1.2% Total Same-Store Portfolio Cash NOI growth.
- Closed $425 million in acquisitions during Q2, expanding medical office portfolio.
- Quarterly common stock dividend declared at $0.30 per share.
- Nareit FFO decreased from $182.4 million in Q2 2020 to $149.7 million in Q2 2021.
- CCRC Same-Store Cash NOI showed a decline of 23.2%.
- Debt extinguishment costs were $61 million, impacting financial performance.
DENVER, Aug. 3, 2021 /PRNewswire/ -- Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the second quarter ended June 30, 2021.
SECOND QUARTER 2021 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
– Net income of
- Total pro forma Same-Store Portfolio Cash (Adjusted) NOI growth of
7.6% excluding government grants received under the CARES Act at our CCRC properties - Life Science and MOB Same-Store Portfolio Cash (Adjusted) NOI growth of
7.4% and4.1% , respectively
– Acquisitions:
- Closed on
$425 million of MOB acquisitions during the second quarter - In July 2021, acquired an aggregate
$205 million of MOBs in off-market transactions, consisting of three buildings that are100% leased to Atlantic Health System for$155 million and a 132,000 square foot medical campus100% leased to HCA for$50 million
– Development leasing:
- Signed a binding term sheet for a 163,000 square foot full-building lease for the Sorrento Gateway life science development in the Sorrento Mesa submarket of San Diego, California
- Signed a 185,000 square foot full-campus lease for the Callan Ridge densification in the Torrey Pines submarket of San Diego, California
- Active life science development pipeline now
73% pre-leased
– Dispositions:
- Closed on an additional
$249 million of senior housing sales and$19 million of loan repayments from our May 4, 2021 earnings release through August 1, 2021 and under contract on the remaining sales - Received
$246 million of seller-financing early repayments in June 2021 - Closed on the previously announced sale of Hoag Hospital purchase option, generating proceeds of
$226 million
– Balance sheet:
- Completed the previously announced tender offers for
$550 million of senior unsecured notes due 2025 - Issued
$450 million of1.35% senior unsecured notes due 2027 in our inaugural green bond offering - Net debt to adjusted EBITDAre of 4.6x as of June 30, 2021
– The Board of Directors declared a quarterly common stock cash dividend of
– Published 10th annual ESG report covering environmental, social and governance initiatives and progress
SECOND QUARTER COMPARISON
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | ||||||||||||||
(in thousands, except per share amounts) | Amount | Per Share | Amount | Per Share | |||||||||||
Net income (loss), diluted | $ | 277,533 | $ | 0.51 | $ | 51,131 | $ | 0.09 | |||||||
Nareit FFO, diluted | 149,671 | 0.28 | 182,367 | 0.34 | |||||||||||
FFO as Adjusted, diluted | 219,386 | 0.40 | 216,547 | 0.40 | |||||||||||
AFFO, diluted | 190,579 | 193,790 | |||||||||||||
Nareit FFO, FFO as Adjusted, AFFO, Same-Store Cash (Adjusted) NOI, 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, 2021 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 on an actual and pro forma basis. The Pro Forma table reflects the results excluding government grants under the CARES Act for our CCRC portfolio.
Actual | |||||||||
Year-Over-Year Total SS Portfolio Cash (Adjusted) NOI Growth | |||||||||
Three Month | Year-To-Date | ||||||||
SS Growth % | % of SS | SS Growth % | % of SS | ||||||
Life science | 7.4 | % | 44.7 | % | 7.9 | % | 48.6 | % | |
Medical office | 4.1 | % | 43.3 | % | 3.1 | % | 48.6 | % | |
CCRC(1) | (23.2) | % | 12.0 | % | (18.9) | % | 2.9 | % | |
Total Portfolio | 1.2 | % | 100.0 | % | 4.5 | % | 100.0 | % | |
Pro Forma (excluding CARES) | |||||||||
Year-Over-Year Total SS Portfolio Cash (Adjusted) NOI Growth | |||||||||
Three Month | Year-To-Date | ||||||||
SS Growth % | % of SS | SS Growth % | % of SS | ||||||
Life science | 7.4 | % | 44.7 | % | 7.9 | % | 48.5 | % | |
Medical office | 4.1 | % | 43.3 | % | 3.1 | % | 48.5 | % | |
CCRC(1) | 22.7 | % | 11.9 | % | (7.4) | % | 3.0 | % | |
Total Portfolio | 7.6 | % | 100.0 | % | 5.0 | % | 100.0 | % | |
(1) | CCRC SS consists of 15 properties for the three month comparison and two properties for the year-to-date comparison. |
MOB ACQUISITION UPDATES
ATLANTIC HEALTH MOBs
In July 2021, Healthpeak acquired three buildings totaling 537,000 square feet for
HCA WESLEY WOODLAWN MOB
In July 2021, Healthpeak acquired Wesley Woodlawn located in Wichita, Kansas for
HCA WESTSIDE MEDICAL PLAZA MOB
In June 2021, Healthpeak acquired Westside Medical Plaza located in Fort Lauderdale, Florida for
14-PROPERTY MOB PORTFOLIO
As previously announced, in April 2021, Healthpeak acquired a 14-property, 833,000 square foot MOB portfolio for
SKY RIDGE CAMPUS MOB
As previously announced, in April 2021, Healthpeak acquired Pinnacle at Ridgegate, a recently developed 80,000 square foot MOB located on HCA's Sky Ridge Medical Center campus ("Sky Ridge") in Denver, Colorado for
LIFE SCIENCE LAND ACQUISITION UPDATE
SOUTH SAN FRANCISCO LAND
As previously announced, in April 2021, Healthpeak closed on the first phase of the acquisition of 12 acres of land in South San Francisco, California for
The 12 acre site is adjacent to Healthpeak's Forbes Research land, and the combination of the two sites, branded as Vantage, forms a contiguous 20 acres, enabling the development of a multi-phase, scalable campus totaling 1 million square feet or more, subject to final entitlements.
DEVELOPMENT LEASING UPDATES
SORRENTO GATEWAY FULL-CAMPUS LEASE
Sorrento Therapeutics, Inc. has executed a binding term sheet for a long-term lease for the entire Sorrento Gateway development project in the Sorrento Mesa submarket of San Diego. The
CALLAN RIDGE FULL-CAMPUS LEASE
As previously announced, Turning Point Therapeutics, Inc. has executed a long-term lease for the entire Callan Ridge densification project located in the Torrey Pines submarket of San Diego. The lease is expected to commence in early 2023, upon completion of construction. The
SENIOR HOUSING DISPOSITIONS
Continued progress on the sale of
- Cumulative gross proceeds from closed sales of
$3.8 billion since July 2020 - 116 SHOP assets containing 12,315 units generating gross proceeds of
$2.49 billion at a blended2.6% annualized trailing 3-month cap rate - 50 NNN assets containing 4,812 units generating gross proceeds of
$1.13 billion at a blended7.5% annualized trailing 3-month lease yield and a blended5.2% annualized trailing 3-month EBITDAR yield - 2 legacy CCRCs owned in a joint venture with, and managed by, Brookdale Senior Living containing 891 units generating gross proceeds of
$19 million at share at a blended (5.4% ) annualized trailing 3-month cap rate $157 million from senior housing loan sales and repayments- Under contract on the remaining sales
Transactions closed subsequent to our May 4, 2021 earnings release:
$145 million sale of 11 SHOP properties, totaling 1,087 units at a blended (2.3% ) annualized trailing 3-month cap rate$85 million sale of 3 NNN properties, totaling 317 units at a blended4.9% annualized trailing 3-month lease yield and a blended2.0% annualized trailing 3-month EBITDAR yield$19 million sale of 2 legacy CCRCs owned in a joint venture with, and managed by, Brookdale Senior Living containing 891 units at a blended (5.4% ) annualized trailing 3-month cap rate$19 million of loan repayments
Previously disclosed transactions closed during the second quarter include:
$564 million sale of a 12-property SHOP portfolio, totaling 1,043 units, operated by Oakmont Senior Living$334 million sale of a 10-property SHOP portfolio, totaling 1,428 units, operated by Discovery Senior Living and the sale of 2 loans and 2 preferred equity investments generating additional proceeds of$21 million - Through 5 separate transactions, sale of 2 NNN properties totaling 107 units operated by Next Step Senior Care and 8 SHOP properties totaling 794 units generating total proceeds of
$116 million . The operators of the SHOP properties include Sonata (5), Milestone, Capital Senior Living and Brookdale Senior Living
Also during the quarter, Healthpeak received
BALANCE SHEET
In July 2021, Healthpeak completed its inaugural green bond issuance, a public offering of
In July 2021, we repaid a
As previously announced, during the second quarter, Healthpeak completed its tender offers for a total of
DIVIDEND
On July 29, Healthpeak announced that its Board declared a quarterly common stock cash dividend of
10th ANNUAL ESG REPORT
In July 2021, Healthpeak published its 10th annual ESG Report, highlighting our environmental, social and governance (ESG) initiatives over the last decade as well as our 2020 performance.
To learn more about Healthpeak's ESG program and view our 2020 ESG Report, please visit www.healthpeak.com/esg or our interactive ESG Report website at esg.healthpeak.com.
2021 GUIDANCE
For full year 2021, we are updating the following guidance ranges:
- Diluted earnings per common share from
$0.98 –$1.06 to$0.95 –$1.01 - Diluted Nareit FFO per share from
$1.09 –$1.17 to$1.06 –$1.12 - Diluted FFO as Adjusted per share from
$1.53 –$1.61 to$1.55 –$1.61 - Blended Total Portfolio Same-Store Cash (Adjusted) NOI growth from
1.75% –3.25% to2.25% –3.75%
COMPANY INFORMATION
Healthpeak has scheduled a conference call and webcast for Wednesday, August 4, 2021, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to present its performance and operating results for the second quarter ended June 30, 2021. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (international). The conference ID number is 5046783. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.healthpeak.com. An archive of the webcast will be available on Healthpeak's website through August 4, 2022, and a telephonic replay can be accessed through August 18, 2021, by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (international) and entering conference ID number 10158057. Our Supplemental Report for the current period is also available, with this earnings release, in the Investor Relations section of our website.
ABOUT HEALTHPEAK
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns and develops high-quality real estate in the three private-pay healthcare asset classes of Life Science, Medical Office and CCRCs. At Healthpeak, we pair our deep understanding of the healthcare real estate market with a strong vision for long-term growth. For more information regarding Healthpeak, visit www.healthpeak.com.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, 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 "2021 Guidance." Pending acquisitions, dispositions, and leasing 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: the COVID-19 pandemic and health and safety measures intended to reduce its spread, the availability, effectiveness and public usage and acceptance of vaccines, and how quickly and to what extent normal economic and operating conditions can resume within the markets in which we operate; operational risks associated with third party management contracts, including the additional regulation and liabilities of our RIDEA lease structures; the ability of our existing and future tenants, operators and borrowers to conduct their respective businesses in a manner sufficient to maintain or increase their revenues and manage their expenses in order to generate sufficient income to make rent and loan payments to us and our ability to recover investments made, if applicable, in their operations; increased competition, operating costs and market changes affecting our tenants, operators and borrowers; 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 investments in the healthcare property sector, which makes us more vulnerable to a downturn in a specific sector than if we invested in multiple industries; our ability to identify replacement tenants and operators and the potential renovation costs and regulatory approvals associated therewith; our property development and redevelopment activity risks, including costs above original estimates, project delays and lower occupancy rates and rents than expected; changes within the life science industry; high levels of regulation, funding requirements, expense and uncertainty faced by our life science tenants; the ability of the hospitals on whose campuses our MOBs are located and their affiliated healthcare systems to remain competitive or financially viable; our ability to maintain or expand our hospital and health system client relationships; economic and other conditions that negatively affect geographic areas from which we recognize a greater percentage of our revenue; 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 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 make material acquisitions and successfully integrate them; the potential impact on us and our tenants, operators and borrowers from litigation matters, including rising liability and insurance costs; our ability to foreclose on collateral securing our real estate-related loans; laws or regulations prohibiting eviction of our tenants; the failure of our tenants and operators 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 healthcare properties; compliance with the Americans with Disabilities Act and fire, safety and other health regulations; the requirements of, or changes to, governmental reimbursement programs such as Medicare or Medicaid; legislation to address federal government operations and administration decisions affecting the Centers for Medicare and Medicaid Services; our participation in the CARES Act Provider Relief Program and other COVID-19 related stimulus and relief programs; volatility or uncertainty in the capital markets, the availability and cost of capital as impacted by interest rates, changes in our credit ratings and the value of our common stock, and other conditions that may adversely impact our ability to fund our obligations or consummate transactions, or reduce the earnings from potential transactions; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness; changes in global, national and local economic and other conditions; provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders; environmental compliance costs and liabilities associated with our real estate investments; our ability to maintain our qualification as a real estate investment trust ("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; ownership limits in our charter that restrict ownership in our stock; our reliance on information technology systems and the potential impact of system failures, disruptions or breaches; unfavorable litigation resolution or disputes; the loss or limited availability of our key personnel; 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.
CALCULATIONS
The estimated capitalization rates and yield ranges included in this release are calculated by dividing projected NOI or Cash (Adjusted) NOI for the applicable properties by the aggregate purchase price or development cost, as applicable, for such properties. Newly acquired operating assets are generally considered stabilized at the earlier of lease-up (typically when the tenant(s) control(s) the physical use of at least
The aggregate NOI or Cash (Adjusted) NOI projections used in calculating the capitalization rates and yield ranges included in this presentation are based on (i) information currently available to us, including, in connection with acquisitions, information made available to us by the seller in the diligence process, and (ii) certain assumptions applied by us related to anticipated occupancy, rental rates, property taxes and other expenses over a specified period of time in the future based on historical data and the Company's knowledge of and experience with the submarket. Accordingly, the capitalization rates and yield ranges included in this presentation are inherently based on inexact projections that may be incorrect or imprecise and may change as a result of events or factors currently unknown to the Company. The actual capitalization rates for these properties may differ materially and adversely from the estimated stabilized capitalization rates and yield ranges discussed in this release based on numerous factors, including any difficulties achieving assumed occupancy and/or rental rates, development delays, unanticipated expenses not payable by a tenant, tenant defaults, the results of purchase price allocations, as well as the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and its subsequent filings with the SEC.
CONTACT
Andrew Johns
Vice President – Corporate Finance and Investor Relations
720-428-5400
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data (unaudited) | ||||||||
June 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Real estate: | ||||||||
Buildings and improvements | $ | 11,543,657 | $ | 11,048,433 | ||||
Development costs and construction in progress | 711,772 | 613,182 | ||||||
Land | 1,966,665 | 1,867,278 | ||||||
Accumulated depreciation and amortization | (2,618,101) | (2,409,135) | ||||||
Net real estate | 11,603,993 | 11,119,758 | ||||||
Net investment in direct financing leases | 44,706 | 44,706 | ||||||
Loans receivable, net of reserves of | 429,076 | 195,375 | ||||||
Investments in and advances to unconsolidated joint ventures | 388,415 | 402,871 | ||||||
Accounts receivable, net of allowance of | 41,814 | 42,269 | ||||||
Cash and cash equivalents | 96,923 | 44,226 | ||||||
Restricted cash | 129,052 | 67,206 | ||||||
Intangible assets, net | 511,612 | 519,917 | ||||||
Assets held for sale and discontinued operations, net | 246,807 | 2,626,306 | ||||||
Right-of-use asset, net | 215,303 | 192,349 | ||||||
Other assets, net | 624,669 | 665,106 | ||||||
Total assets | $ | 14,332,370 | $ | 15,920,089 | ||||
Liabilities and Equity | ||||||||
Bank line of credit and commercial paper | $ | 720,000 | $ | 129,590 | ||||
Term loan | 249,303 | 249,182 | ||||||
Senior unsecured notes | 3,710,972 | 5,697,586 | ||||||
Mortgage debt | 358,101 | 221,621 | ||||||
Intangible liabilities, net | 139,116 | 144,199 | ||||||
Liabilities related to assets held for sale and discontinued operations, net | 65,272 | 415,737 | ||||||
Lease liability | 189,732 | 179,895 | ||||||
Accounts payable, accrued liabilities, and other liabilities | 688,458 | 763,391 | ||||||
Deferred revenue | 777,687 | 774,316 | ||||||
Total liabilities | 6,898,641 | 8,575,517 | ||||||
Commitments and contingencies | ||||||||
Common stock, | 538,955 | 538,405 | ||||||
Additional paid-in capital | 10,229,549 | 10,229,857 | ||||||
Cumulative dividends in excess of earnings | (3,880,253) | (3,976,232) | ||||||
Accumulated other comprehensive income (loss) | (3,389) | (3,685) | ||||||
Total stockholders' equity | 6,884,862 | 6,788,345 | ||||||
Joint venture partners | 347,610 | 357,069 | ||||||
Non-managing member unitholders | 201,257 | 199,158 | ||||||
Total noncontrolling interests | 548,867 | 556,227 | ||||||
Total equity | 7,433,729 | 7,344,572 | ||||||
Total liabilities and equity | $ | 14,332,370 | $ | 15,920,089 | ||||
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Rental and related revenues | $ | 340,642 | $ | 288,253 | $ | 668,614 | $ | 570,570 | ||||||||
Resident fees and services | 117,308 | 113,926 | 233,436 | 205,706 | ||||||||||||
Income from direct financing leases | 2,180 | 2,150 | 4,343 | 5,419 | ||||||||||||
Interest income | 16,108 | 4,230 | 25,121 | 7,918 | ||||||||||||
Total revenues | 476,238 | 408,559 | 931,514 | 789,613 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Interest expense | 38,681 | 54,823 | 85,524 | 110,514 | ||||||||||||
Depreciation and amortization | 171,459 | 139,691 | 328,997 | 264,803 | ||||||||||||
Operating | 190,132 | 177,808 | 371,893 | 415,185 | ||||||||||||
General and administrative | 24,088 | 23,720 | 48,990 | 46,069 | ||||||||||||
Transaction costs | 619 | 373 | 1,417 | 14,936 | ||||||||||||
Impairments and loan loss reserves (recoveries), net | 931 | 6,837 | 4,173 | 17,944 | ||||||||||||
Total costs and expenses | 425,910 | 403,252 | 840,994 | 869,451 | ||||||||||||
Other income (expense): | ||||||||||||||||
Gain (loss) on sales of real estate, net | 175,238 | 81,284 | 175,238 | 83,353 | ||||||||||||
Gain (loss) on debt extinguishments | (60,865) | (25,824) | (225,157) | (24,991) | ||||||||||||
Other income (expense), net | 1,734 | 17,415 | 3,934 | 228,068 | ||||||||||||
Total other income (expense), net | 116,107 | 72,875 | (45,985) | 286,430 | ||||||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures | 166,435 | 78,182 | 44,535 | 206,592 | ||||||||||||
Income tax benefit (expense) | 763 | (106) | 755 | 29,762 | ||||||||||||
Equity income (loss) from unconsolidated joint ventures | 867 | (17,735) | 2,190 | (28,881) | ||||||||||||
Income (loss) from continuing operations | 168,065 | 60,341 | 47,480 | 207,473 | ||||||||||||
Income (loss) from discontinued operations | 113,960 | (5,292) | 383,968 | 130,116 | ||||||||||||
Net income (loss) | 282,025 | 55,049 | 431,448 | 337,589 | ||||||||||||
Noncontrolling interests' share in continuing operations | (3,535) | (3,486) | (6,841) | (6,949) | ||||||||||||
Noncontrolling interests' share in discontinued operations | (2,210) | (57) | (2,539) | (54) | ||||||||||||
Net income (loss) attributable to Healthpeak Properties, Inc. | 276,280 | 51,506 | 422,068 | 330,586 | ||||||||||||
Participating securities' share in earnings | (287) | (375) | (2,732) | (1,800) | ||||||||||||
Net income (loss) applicable to common shares | $ | 275,993 | $ | 51,131 | $ | 419,336 | $ | 328,786 | ||||||||
Basic earnings (loss) per common share: | ||||||||||||||||
Continuing operations | $ | 0.30 | $ | 0.10 | $ | 0.07 | $ | 0.38 | ||||||||
Discontinued operations | 0.21 | (0.01) | 0.71 | 0.25 | ||||||||||||
Net income (loss) applicable to common shares | $ | 0.51 | $ | 0.09 | $ | 0.78 | $ | 0.63 | ||||||||
Diluted earnings (loss) per common share: | ||||||||||||||||
Continuing operations | $ | 0.30 | $ | 0.10 | $ | 0.07 | $ | 0.38 | ||||||||
Discontinued operations | 0.21 | (0.01) | 0.71 | 0.25 | ||||||||||||
Net income (loss) applicable to common shares | $ | 0.51 | $ | 0.09 | $ | 0.78 | $ | 0.63 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 538,929 | 538,262 | 538,805 | 522,427 | ||||||||||||
Diluted | 544,694 | 538,517 | 539,081 | 523,498 | ||||||||||||
Healthpeak Properties, Inc. Funds From Operations In thousands, except per share data (unaudited) | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net income (loss) applicable to common shares | $ | 275,993 | $ | 51,131 | $ | 419,336 | $ | 328,786 | |||||||||
Real estate related depreciation and amortization(1) | 171,459 | 178,488 | 328,997 | 367,764 | |||||||||||||
Healthpeak's share of real estate related depreciation and amortization from unconsolidated joint ventures | 2,869 | 25,618 | 7,322 | 55,228 | |||||||||||||
Noncontrolling interests' share of real estate related depreciation and amortization | (4,923) | (4,980) | (9,809) | (10,023) | |||||||||||||
Other real estate-related depreciation and amortization | — | 891 | — | 2,128 | |||||||||||||
Loss (gain) on sales of depreciable real estate, net(1) | (297,476) | (82,863) | (557,138) | (247,732) | |||||||||||||
Healthpeak's share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures | (5,866) | (1,519) | (5,866) | (9,248) | |||||||||||||
Noncontrolling interests' share of gain (loss) on sales of depreciable real estate, net | 2,179 | (3) | 2,179 | (3) | |||||||||||||
Loss (gain) upon change of control, net(2) | — | (2,528) | (1,042) | (169,962) | |||||||||||||
Taxes associated with real estate dispositions | 1,693 | 335 | 2,183 | (11,540) | |||||||||||||
Impairments (recoveries) of depreciable real estate, net | 3,743 | 17,797 | 3,743 | 48,519 | |||||||||||||
Nareit FFO applicable to common shares | 149,671 | 182,367 | 189,905 | 353,917 | |||||||||||||
Distributions on dilutive convertible units and other | — | — | — | 3,501 | |||||||||||||
Diluted Nareit FFO applicable to common shares | $ | 149,671 | $ | 182,367 | $ | 189,905 | $ | 357,418 | |||||||||
Diluted Nareit FFO per common share | $ | 0.28 | $ | 0.34 | $ | 0.35 | $ | 0.68 | |||||||||
Weighted average shares outstanding - diluted Nareit FFO | 539,193 | 538,517 | 539,081 | 529,009 | |||||||||||||
Impact of adjustments to Nareit FFO: | |||||||||||||||||
Transaction-related items(3) | $ | 1,265 | $ | 685 | $ | 5,379 | $ | 93,064 | |||||||||
Other impairments (recoveries) and other losses (gains), net(4) | 1,845 | 6,291 | 5,087 | (27,015) | |||||||||||||
Restructuring and severance related charges | — | — | 2,463 | — | |||||||||||||
Loss (gain) on debt extinguishments | 60,865 | 25,824 | 225,157 | 24,991 | |||||||||||||
Litigation costs (recoveries) | — | 100 | — | 206 | |||||||||||||
Casualty-related charges (recoveries), net | 3,596 | — | 4,644 | — | |||||||||||||
Foreign currency remeasurement losses (gains) | — | 143 | — | 153 | |||||||||||||
Tax rate legislation impact(5) | — | (697) | — | (3,589) | |||||||||||||
Total adjustments | 67,571 | 32,346 | 242,730 | 87,810 | |||||||||||||
FFO as Adjusted applicable to common shares | 217,242 | 214,713 | 432,635 | 441,727 | |||||||||||||
Distributions on dilutive convertible units and other | 2,144 | 1,834 | 4,067 | 3,390 | |||||||||||||
Diluted FFO as Adjusted applicable to common shares | $ | 219,386 | $ | 216,547 | $ | 436,702 | $ | 445,117 | |||||||||
Diluted FFO as Adjusted per common share | $ | 0.40 | $ | 0.40 | $ | 0.80 | $ | 0.84 | |||||||||
Weighted average shares outstanding - diluted FFO as Adjusted | 546,519 | 544,018 | 546,407 | 529,009 | |||||||||||||
(1) | This amount can be reconciled by combining the balances from the corresponding line of the Consolidated Statements of Operations and the detailed financial information in the Discontinued Operations Reconciliation section of the Supplemental Report. | |
(2) | For the six months ended June 30, 2020, includes a | |
(3) | For the six months ended June 30, 2020, includes the termination fee and transition fee expenses related to terminating the management agreements with Brookdale for 13 CCRCs and transitioning those communities to Life Care Services, LLC, partially offset by the tax benefit recognized related to those expenses. The expenses related to terminating management agreements are included in operating expenses in the Consolidated Statements of Operations. | |
(4) | For the three and six months ended June 30, 2021, includes a | |
(5) | For the three and six months ended June 30, 2020, represents the tax benefit from the CARES Act, which extended the net operating loss carryback period to five years. | |
Healthpeak Properties, Inc. Adjusted Funds From Operations In thousands (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
FFO as Adjusted applicable to common shares | $ | 217,242 | $ | 214,713 | $ | 432,635 | $ | 441,727 | ||||||||
Amortization of stock-based compensation | 5,095 | 4,984 | 9,459 | 8,972 | ||||||||||||
Amortization of deferred financing costs | 2,121 | 2,534 | 4,334 | 5,116 | ||||||||||||
Straight-line rents | (6,201) | (8,316) | (15,336) | (14,544) | ||||||||||||
AFFO capital expenditures | (22,422) | (18,781) | (43,132) | (40,572) | ||||||||||||
Deferred income taxes | (2,771) | (6,686) | (4,493) | (1,899) | ||||||||||||
Other AFFO adjustments | (4,026) | 3,478 | (9,628) | 728 | ||||||||||||
AFFO applicable to common shares | 189,038 | 191,926 | 373,839 | 399,528 | ||||||||||||
Distributions on dilutive convertible units and other | 1,541 | 1,864 | 2,862 | 3,501 | ||||||||||||
Diluted AFFO applicable to common shares | $ | 190,579 | $ | 193,790 | $ | 376,701 | $ | 403,029 | ||||||||
Weighted average shares outstanding - diluted AFFO | 544,694 | 544,018 | 544,582 | 529,009 | ||||||||||||
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SOURCE Healthpeak Properties, Inc.
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