Healthpeak Properties Reports Fourth Quarter and Year Ended 2023 Results
FOURTH QUARTER 2023 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
– Net income of
– Fourth quarter new and renewal lease executions totaled 1.1 million square feet:
- Outpatient Medical new and renewal lease executions totaled 743,000 square feet
- Lab new and renewal lease executions totaled 312,000 square feet
- Year-to-date 2024 Lab lease executions of 58,000 square feet with an additional 115,000 square feet under signed LOI
– Received entitlements for an additional 1.3 million square feet of lab development at the Vantage campus in
– Commenced two on-campus outpatient developments in our HCA Healthcare ("HCA") development program
– Entered into a new
– Net Debt to Adjusted EBITDAre was 5.2x for the quarter ended
FULL-YEAR 2023 HIGHLIGHTS
– Net income of
– Portfolio leasing summary:
- Full-year outpatient lease executions totaled 4.1 million square feet, with +4% cash releasing spreads on renewals
- Full-year lab lease executions totaled 985,000 square feet, with +23% cash releasing spreads on renewals
– Development highlights:
- 2023 completions and new starts:
-
Nexus on Grand: Delivered the fully leased, 148,000 square foot,
$161 million lab building inSouth San Francisco
-
Vantage: Delivered the fully leased, 154,000 square foot,
$201 million first building of Phase I inSouth San Francisco
-
Callan Ridge : Completed core and shell work and delivered the space to the tenant for T.I. build out; the fully leased development inTorrey Pines totals 185,000 square feet with an expected total development cost of$146 million
-
HCA Development Program: Commenced construction on two new outpatient developments totaling 192,000 square feet with total expected development costs of
$90 million
- Land bank and future developments:
-
In
September 2023 , theCambridge City Council unanimously approved a comprehensive rezoning to allow for greater density and developable heights in the West Cambridge neighborhood of Alewife where Healthpeak owns a total of 39 acres
-
In
December 2023 , Healthpeak received entitlements for an additional 1.3 million square feet of lab development at the Vantage campus
– Issued
– Sold
– 2023 sustainability and responsible business recognitions include:
-
Received a
Green Star rating from the Global Real Estate Sustainability Benchmark (GRESB) and named a constituent in the FTSE4Good Index for the twelfth consecutive year
- Named to CDP's Leadership band for the eleventh consecutive year, named a constituent in the S&P Global Dow Jones Sustainability N. America Index for the eleventh consecutive year and World Index for the fourth time; and named to the S&P Global Sustainability Yearbook for the ninth consecutive year
- Named an ENERGY STAR Partner of the Year for the third time
- Named to Newsweek’s America’s Most Responsible Companies list for the fifth consecutive year
-
Named Winner for Best Proxy Statement (Mid Cap), and Finalist for Best ESG Reporting (Small to Mid Cap) by
IR Magazine and Governance Intelligence
-
Certified a
Great Place to Work for the fourth consecutive year; included in TheTennessean Top Workplaces for the second consecutive year; and a MiddleTennessee Top Workplace for the first time
- Included in Fortune's Best Workplaces in Real Estate list for the second consecutive year
To learn more about Healthpeak's commitment to responsible business and view our 2022 ESG Report, please visit www.healthpeak.com/ESG.
FOURTH QUARTER COMPARISON
|
Three Months Ended |
|
Three Months Ended |
||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||
Net income, diluted |
$ |
70,787 |
|
$ |
0.13 |
|
$ |
6,388 |
|
$ |
0.01 |
Nareit FFO, diluted |
|
263,810 |
|
|
0.48 |
|
|
192,158 |
|
|
0.35 |
FFO as Adjusted, diluted |
|
252,639 |
|
|
0.46 |
|
|
238,744 |
|
|
0.44 |
AFFO, diluted |
|
196,622 |
|
|
0.36 |
|
|
194,414 |
|
|
0.36 |
FULL-YEAR COMPARISON
|
Year Ended
|
|
Year Ended
|
||||||||
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||
Net income, diluted |
$ |
304,284 |
|
$ |
0.56 |
|
$ |
497,792 |
|
$ |
0.92 |
Nareit FFO, diluted |
|
994,574 |
|
|
1.79 |
|
|
904,573 |
|
|
1.66 |
FFO as Adjusted, diluted |
|
987,708 |
|
|
1.78 |
|
|
950,259 |
|
|
1.74 |
AFFO, diluted |
|
847,358 |
|
|
1.53 |
|
|
790,296 |
|
|
1.45 |
Nareit FFO, FFO as Adjusted, AFFO, Same-Store Cash (Adjusted) NOI, and Net Debt to Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts (see the "Funds From Operations" and "Adjusted Funds From Operations" sections of this release for additional information). See "
SAME-STORE ("SS") OPERATING SUMMARY
The table below outlines the year-over-year three-month and full-year SS Cash (Adjusted) NOI growth.
Year-Over-Year Total SS Portfolio Cash (Adjusted) NOI Growth |
||||||||||||
|
Three Month |
|
Full Year |
|||||||||
|
SS Growth % |
% of SS |
|
SS Growth % |
% of SS |
|||||||
Lab |
2.7 |
% |
47.1 |
% |
|
3.7 |
% |
46.6 |
% |
|||
Outpatient Medical |
4.3 |
% |
41.4 |
% |
|
3.4 |
% |
42.0 |
% |
|||
CCRC |
4.7 |
% |
11.5 |
% |
|
15.6 |
% |
11.5 |
% |
|||
Total Portfolio |
3.6 |
% |
100.0 |
% |
|
4.8 |
% |
100.0 |
% |
CALLAN RIDGE LAB CAMPUS JOINT VENTURE SALE
As previously announced, in
The formation of the 65% Breakthrough / 35% Healthpeak joint venture values
Healthpeak began construction on the 185,000 square foot
DEVELOPMENT UPDATES
VANTAGE ENTITLEMENTS
As previously announced, in
Strategically located in the heart of
Healthpeak is
OUTPATIENT DEVELOPMENT PROGRAM WITH HCA
During the fourth quarter, Healthpeak added two on-campus outpatient developments with total expected development costs of
-
Galen Aurora : 72,000 square foot Class A medical training facility located on HCA’sMedical Center of Aurora hospital campus, a 325-bed acute care hospital inDenver, CO where Healthpeak currently owns three on-campus buildings totaling approximately 165,000 square feet. HCA nursing and professional education affiliates have pre-leased 100% of the development. -
McKinney Medical Center : 120,000 square foot Class A outpatient building on the campus of HCA's Medical City McKinney campus, a 281-bed acute care hospital inMcKinney, TX where Healthpeak currently owns two on-campus buildings totaling approximately 120,000 square feet. HCA affiliates have pre-leased approximately 62% of the development for future outpatient services, including oncology, orthopedic, cardiology, wound care, imaging, and other services.
Since 2019, Healthpeak’s development program with HCA has delivered 9 outpatient buildings totaling 785,000 square feet with total development costs of approximately
MERGER WITH PHYSICIANS REALTY TRUST AND TERM LOAN UPDATE
As previously announced on
Additionally, Healthpeak expects to enter into a new
DIVIDEND
On
2024 OUTLOOK
For full year 2024, we have established the following outlook ranges, which are inclusive of the impact from the Physicians Realty Trust merger:
-
Diluted earnings per common share of
$0.07 –$0.13
-
Diluted Nareit FFO per share of
$1.54 –$1.60
-
Diluted FFO as Adjusted per share of
$1.73 –$1.79
-
Diluted AFFO per share of
$1.50 –$1.56
- Total Portfolio Same-Store Cash (Adjusted) NOI growth of 2.25% – 3.75%
This outlook assumes the merger with Physicians Realty Trust closes on
CONFERENCE CALL INFORMATION
Healthpeak has scheduled a conference call and webcast for
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/292488797. 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
ABOUT HEALTHPEAK
FORWARD-LOOKING STATEMENTS
Statements contained in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, densifications, joint venture transactions, leasing activity and commitments, financing activities, or other transactions discussed in this release, including statements regarding our proposed merger with Physicians Realty Trust; (ii) the payment of a quarterly cash dividend; and (iii) the information presented under the heading "2024 Outlook." Pending acquisitions, dispositions, joint venture transactions, leasing activity, and financing activity, including those subject to binding agreements, remain subject to closing conditions and may not be completed within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: macroeconomic trends, including inflation, interest rates, labor costs, and unemployment; risks associated with the proposed merger transactions with Physicians Realty Trust (the “Mergers”), including, but not limited to, our ability to consummate the Mergers on the proposed terms or on the anticipated timeline, or at all, potential loss or disruption of current and prospective commercial relationships due to the uncertainties about the Mergers, and the outcome of legal proceedings instituted against us, our Board of Directors, and others related to the Mergers; our ability to integrate the operations of the Company and Physicians Realty Trust successfully and realize the anticipated synergies and other benefits of the Mergers 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 a specific sector than if we invested across multiple sectors; the illiquidity of real estate investments; our ability to identify and secure new or replacement tenants and operators; our property development, redevelopment, and tenant improvement 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 RIDEA structures; economic conditions, natural disasters, weather, and other conditions that negatively affect geographic areas where we have concentrated investments; uninsured or underinsured losses, which could result in significant losses and/or performance declines by us or our tenants and operators; our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners’ financial condition and continued cooperation; our use of fixed rent escalators, contingent rent provisions, and/or rent escalators based on the Consumer Price Index; competition for suitable healthcare properties to grow our investment portfolio; our ability to foreclose or exercise rights on collateral securing our real estate-related loans; 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; ESG and sustainability commitments and requirements, as well as stakeholder expectations; epidemics, pandemics, or other infectious diseases, including 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 the possibility of a cybersecurity incident or cybersecurity threat affect our information systems or the information systems of our tenants, operators or borrowers; 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; 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
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transaction, on
STOCKHOLDERS ARE URGED AND ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT HEALTHPEAK, PHYSICIANS REALTY TRUST AND THE PROPOSED TRANSACTION.
Investors and security holders of
PARTICIPANTS IN THE SOLICITATION
Healthpeak, Physicians Realty Trust and their respective directors, trustees and executive officers may be deemed to be participants in the solicitation of proxies from Healthpeak’s stockholders and Physicians Realty Trust’s shareholders in respect of the proposed transaction. Information regarding Healthpeak’s directors and executive officers can be found in Healthpeak’s definitive proxy statement filed with the
Additional information regarding the interests of such potential participants is included in the joint proxy statement/prospectus and other relevant documents filed with the
NO OFFER OR SOLICITATION
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Consolidated Balance Sheets In thousands, except share and per share data |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Real estate: |
|
|
|
||||
Buildings and improvements |
$ |
13,329,464 |
|
|
$ |
12,784,078 |
|
Development costs and construction in progress |
|
643,217 |
|
|
|
760,355 |
|
Land and improvements |
|
2,647,633 |
|
|
|
2,667,188 |
|
Accumulated depreciation and amortization |
|
(3,591,951 |
) |
|
|
(3,188,138 |
) |
Net real estate |
|
13,028,363 |
|
|
|
13,023,483 |
|
Loans receivable, net of reserves of |
|
218,450 |
|
|
|
374,832 |
|
Investments in and advances to unconsolidated joint ventures |
|
782,853 |
|
|
|
706,677 |
|
Accounts receivable, net of allowance of |
|
55,820 |
|
|
|
53,436 |
|
Cash and cash equivalents |
|
117,635 |
|
|
|
72,032 |
|
Restricted cash |
|
51,388 |
|
|
|
54,802 |
|
Intangible assets, net |
|
314,156 |
|
|
|
418,061 |
|
Assets held for sale, net |
|
117,986 |
|
|
|
49,866 |
|
Right-of-use asset, net |
|
240,155 |
|
|
|
237,318 |
|
Other assets, net |
|
772,044 |
|
|
|
780,722 |
|
Total assets |
$ |
15,698,850 |
|
|
$ |
15,771,229 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Bank line of credit and commercial paper |
$ |
720,000 |
|
|
$ |
995,606 |
|
Term loans |
|
496,824 |
|
|
|
495,957 |
|
Senior unsecured notes |
|
5,403,378 |
|
|
|
4,659,451 |
|
Mortgage debt |
|
256,097 |
|
|
|
346,599 |
|
Intangible liabilities, net |
|
127,380 |
|
|
|
156,193 |
|
Liabilities related to assets held for sale, net |
|
729 |
|
|
|
4,070 |
|
Lease liability |
|
206,743 |
|
|
|
208,515 |
|
Accounts payable, accrued liabilities, and other liabilities |
|
657,196 |
|
|
|
772,485 |
|
Deferred revenue |
|
905,633 |
|
|
|
844,076 |
|
Total liabilities |
|
8,773,980 |
|
|
|
8,482,952 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Redeemable noncontrolling interests |
|
48,828 |
|
|
|
105,679 |
|
|
|
|
|
||||
Common stock, |
|
547,156 |
|
|
|
546,642 |
|
Additional paid-in capital |
|
10,405,780 |
|
|
|
10,349,614 |
|
Cumulative dividends in excess of earnings |
|
(4,621,861 |
) |
|
|
(4,269,689 |
) |
Accumulated other comprehensive income (loss) |
|
19,371 |
|
|
|
28,134 |
|
Total stockholders’ equity |
|
6,350,446 |
|
|
|
6,654,701 |
|
|
|
|
|
||||
Joint venture partners |
|
310,998 |
|
|
|
327,721 |
|
Non-managing member unitholders |
|
214,598 |
|
|
|
200,176 |
|
Total noncontrolling interests |
|
525,596 |
|
|
|
527,897 |
|
|
|
|
|
||||
Total equity |
|
6,876,042 |
|
|
|
7,182,598 |
|
|
|
|
|
||||
Total liabilities and equity |
$ |
15,698,850 |
|
|
$ |
15,771,229 |
|
Consolidated Statements of Operations In thousands, except per share data |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues: |
|
|
|
|
|
||||||||||
Rental and related revenues |
$ |
412,332 |
|
|
$ |
392,245 |
|
|
$ |
1,631,805 |
|
|
$ |
1,541,775 |
|
Resident fees and services |
|
136,341 |
|
|
|
125,873 |
|
|
|
527,417 |
|
|
|
494,935 |
|
Interest income |
|
4,979 |
|
|
|
6,350 |
|
|
|
21,781 |
|
|
|
23,300 |
|
Income from direct financing leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,168 |
|
Total revenues |
|
553,652 |
|
|
|
524,468 |
|
|
|
2,181,003 |
|
|
|
2,061,178 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
52,784 |
|
|
|
49,413 |
|
|
|
200,331 |
|
|
|
172,944 |
|
Depreciation and amortization |
|
188,544 |
|
|
|
179,157 |
|
|
|
749,901 |
|
|
|
710,569 |
|
Operating |
|
224,401 |
|
|
|
220,492 |
|
|
|
902,060 |
|
|
|
862,991 |
|
General and administrative |
|
21,556 |
|
|
|
57,872 |
|
|
|
95,132 |
|
|
|
131,033 |
|
Transaction and merger-related costs |
|
14,417 |
|
|
|
3,217 |
|
|
|
17,515 |
|
|
|
4,853 |
|
Impairments and loan loss reserves (recoveries), net |
|
(5,445 |
) |
|
|
3,326 |
|
|
|
(5,601 |
) |
|
|
7,004 |
|
Total costs and expenses |
|
496,257 |
|
|
|
513,477 |
|
|
|
1,959,338 |
|
|
|
1,889,394 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain (loss) on sales of real estate, net |
|
— |
|
|
|
(969 |
) |
|
|
86,463 |
|
|
|
9,078 |
|
Other income (expense), net |
|
2,600 |
|
|
|
(587 |
) |
|
|
6,808 |
|
|
|
326,268 |
|
Total other income (expense), net |
|
2,600 |
|
|
|
(1,556 |
) |
|
|
93,271 |
|
|
|
335,346 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |
|
59,995 |
|
|
|
9,435 |
|
|
|
314,936 |
|
|
|
507,130 |
|
Income tax benefit (expense) |
|
11,842 |
|
|
|
650 |
|
|
|
9,617 |
|
|
|
4,425 |
|
Equity income (loss) from unconsolidated joint ventures |
|
3,558 |
|
|
|
(156 |
) |
|
|
10,204 |
|
|
|
1,985 |
|
Income (loss) from continuing operations |
|
75,395 |
|
|
|
9,929 |
|
|
|
334,757 |
|
|
|
513,540 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from discontinued operations |
|
— |
|
|
|
873 |
|
|
|
— |
|
|
|
2,884 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
75,395 |
|
|
|
10,802 |
|
|
|
334,757 |
|
|
|
516,424 |
|
Noncontrolling interests’ share in continuing operations |
|
(4,451 |
) |
|
|
(4,274 |
) |
|
|
(28,748 |
) |
|
|
(15,975 |
) |
Net income (loss) attributable to |
|
70,944 |
|
|
|
6,528 |
|
|
|
306,009 |
|
|
|
500,449 |
|
Participating securities’ share in earnings |
|
(157 |
) |
|
|
(140 |
) |
|
|
(1,725 |
) |
|
|
(2,657 |
) |
Net income (loss) applicable to common shares |
$ |
70,787 |
|
|
$ |
6,388 |
|
|
$ |
304,284 |
|
|
$ |
497,792 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
0.56 |
|
|
$ |
0.92 |
|
Discontinued operations |
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
Net income (loss) applicable to common shares |
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
0.56 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
0.56 |
|
|
$ |
0.92 |
|
Discontinued operations |
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
Net income (loss) applicable to common shares |
$ |
0.13 |
|
|
$ |
0.01 |
|
|
$ |
0.56 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
547,091 |
|
|
|
537,992 |
|
|
|
547,006 |
|
|
|
538,809 |
|
Diluted |
|
547,361 |
|
|
|
538,396 |
|
|
|
547,275 |
|
|
|
539,147 |
|
Funds From Operations In thousands, except per share data |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) applicable to common shares |
|
$ |
70,787 |
|
|
$ |
6,388 |
|
|
$ |
304,284 |
|
|
$ |
497,792 |
|
Real estate related depreciation and amortization |
|
|
188,544 |
|
|
|
179,157 |
|
|
|
749,901 |
|
|
|
710,569 |
|
Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures |
|
|
6,723 |
|
|
|
8,642 |
|
|
|
24,800 |
|
|
|
27,691 |
|
Noncontrolling interests’ share of real estate related depreciation and amortization |
|
|
(4,610 |
) |
|
|
(4,709 |
) |
|
|
(18,654 |
) |
|
|
(19,201 |
) |
Loss (gain) on sales of depreciable real estate, net |
|
|
— |
|
|
|
986 |
|
|
|
(86,463 |
) |
|
|
(10,422 |
) |
Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures |
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
134 |
|
Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net |
|
|
— |
|
|
|
— |
|
|
|
11,546 |
|
|
|
12 |
|
Loss (gain) upon change of control, net(1) |
|
|
— |
|
|
|
— |
|
|
|
(234 |
) |
|
|
(311,438 |
) |
Taxes associated with real estate dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
Nareit FFO applicable to common shares |
|
|
261,444 |
|
|
|
190,509 |
|
|
|
985,180 |
|
|
|
895,166 |
|
Distributions on dilutive convertible units and other |
|
|
2,366 |
|
|
|
1,649 |
|
|
|
9,394 |
|
|
|
9,407 |
|
Diluted Nareit FFO applicable to common shares |
|
$ |
263,810 |
|
|
$ |
192,158 |
|
|
$ |
994,574 |
|
|
$ |
904,573 |
|
Diluted Nareit FFO per common share |
|
$ |
0.48 |
|
|
$ |
0.35 |
|
|
$ |
1.79 |
|
|
$ |
1.66 |
|
Weighted average shares outstanding - diluted Nareit FFO |
|
|
554,635 |
|
|
|
543,879 |
|
|
|
554,559 |
|
|
|
546,462 |
|
Impact of adjustments to Nareit FFO: |
|
|
|
|
|
|
|
|
||||||||
Transaction and merger-related items(2) |
|
$ |
10,842 |
|
|
$ |
3,215 |
|
|
$ |
13,835 |
|
|
$ |
4,788 |
|
Other impairments (recoveries) and other losses (gains), net(3) |
|
|
(4,407 |
) |
|
|
9,702 |
|
|
|
(3,850 |
) |
|
|
3,829 |
|
Restructuring and severance-related charges(4) |
|
|
— |
|
|
|
32,749 |
|
|
|
1,368 |
|
|
|
32,749 |
|
Casualty-related charges (recoveries), net(5) |
|
|
(3,424 |
) |
|
|
298 |
|
|
|
(4,033 |
) |
|
|
4,401 |
|
Recognition (reversal) of valuation allowance on deferred tax assets(6) |
|
|
(14,194 |
) |
|
|
— |
|
|
|
(14,194 |
) |
|
|
— |
|
Total adjustments |
|
|
(11,183 |
) |
|
|
45,964 |
|
|
|
(6,874 |
) |
|
|
45,767 |
|
FFO as Adjusted applicable to common shares |
|
|
250,261 |
|
|
|
236,473 |
|
|
|
978,306 |
|
|
|
940,933 |
|
Distributions on dilutive convertible units and other |
|
|
2,378 |
|
|
|
2,271 |
|
|
|
9,402 |
|
|
|
9,326 |
|
Diluted FFO as Adjusted applicable to common shares |
|
$ |
252,639 |
|
|
$ |
238,744 |
|
|
$ |
987,708 |
|
|
$ |
950,259 |
|
Diluted FFO as Adjusted per common share |
|
$ |
0.46 |
|
|
$ |
0.44 |
|
|
$ |
1.78 |
|
|
$ |
1.74 |
|
Weighted average shares outstanding - diluted FFO as Adjusted |
|
|
554,635 |
|
|
|
545,704 |
|
|
|
554,559 |
|
|
|
546,462 |
|
_______________________________________
(1) |
The year ended |
|
(2) |
The three months and year ended |
|
(3) |
The three months and year ended |
|
(4) |
The three months and year ended |
|
(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. |
|
(6) |
In conjunction with classifying the assets related to the Callan Ridge JV as held for sale as of |
Adjusted Funds From Operations In thousands |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
FFO as Adjusted applicable to common shares |
$ |
250,261 |
|
|
$ |
236,473 |
|
|
$ |
978,306 |
|
|
$ |
940,933 |
|
|
Stock-based compensation amortization expense |
|
3,513 |
|
|
|
1,903 |
|
|
|
14,480 |
|
|
|
16,537 |
|
|
Amortization of deferred financing costs |
|
3,088 |
|
|
|
2,812 |
|
|
|
11,916 |
|
|
|
10,881 |
|
|
Straight-line rents(1) |
|
(1,677 |
) |
|
|
(12,346 |
) |
|
|
(14,387 |
) |
|
|
(49,183 |
) |
|
AFFO capital expenditures |
|
(47,332 |
) |
|
|
(33,407 |
) |
|
|
(113,596 |
) |
|
|
(108,510 |
) |
|
Deferred income taxes |
|
117 |
|
|
|
(355 |
) |
|
|
(816 |
) |
|
|
(4,096 |
) |
|
Amortization of above (below) market lease intangibles, net |
|
(5,525 |
) |
|
|
(5,851 |
) |
|
|
(25,791 |
) |
|
|
(23,380 |
) |
|
Other AFFO adjustments |
|
(7,486 |
) |
|
|
3,536 |
|
|
|
(9,335 |
) |
|
|
520 |
|
|
AFFO applicable to common shares |
|
194,959 |
|
|
|
192,765 |
|
|
|
840,777 |
|
|
|
783,702 |
|
|
Distributions on dilutive convertible units and other |
|
1,663 |
|
|
|
1,649 |
|
|
|
6,581 |
|
|
|
6,594 |
|
|
Diluted AFFO applicable to common shares |
$ |
196,622 |
|
|
$ |
194,414 |
|
|
$ |
847,358 |
|
|
$ |
790,296 |
|
|
Diluted AFFO per common share |
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
1.53 |
|
|
$ |
1.45 |
|
|
Weighted average shares outstanding - diluted AFFO |
|
552,810 |
|
|
|
543,879 |
|
|
|
552,734 |
|
|
|
544,637 |
|
_______________________________________
(1) |
The year ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208718917/en/
Senior Vice President – Investor Relations
720-428-5400
Source: