Earnings Release & Supplemental Report

10-K Filing

Discussion + Reconciliation of Non-GAAP Financial Measures

FOURTH QUARTER 2021 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS   

• Net income of $0.05 per share, Nareit FFO of $0.41 per share, FFO as Adjusted of $0.41 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 2.7%
  • Life Science and MOB Same-Store Portfolio Cash (Adjusted) NOI growth of 5.4% and 3.6%, respectively
  • Total pro forma Same-Store Portfolio Cash (Adjusted) NOI growth of 4.0% excluding government grants received under the CARES Act at our CCRC properties 
• Life science development leasing:
  • Pre-leased all 148,000 square feet at Nexus on Grand in South San Francisco  
  • Active life science developments 76% pre-leased as of the end of the fourth quarter
• Additional life science development pipeline opportunities:
  • Acquired a combined ten acre parcel in the Sorrento Mesa submarket of San Diego
  • Acquired a joint venture interest in a nine acre land parcel located in the Needham submarket of Boston
• Balance sheet:
  • In November, issued $500 million of 2.125% senior unsecured notes in a green bond offering
  • Pro forma net debt to adjusted EBITDAre of 5.3x as of December 31, 2021, including $316 million of net proceeds from the future expected settlement of shares sold under equity forward contracts through the Company's ATM program during the third quarter of 2021
• Promoted Scott Bohn to Executive Vice President – Co-Head of Life Science
• The Board of Directors declared a quarterly common stock cash dividend of $0.30 per share to be paid on February 22, 2022, to stockholders of record as of the close of business on February 11, 2022
• Recent ESG recognitions include being named to the CDP Leadership band for the ninth consecutive year; included in the S&P Global Sustainability Yearbook for the seventh consecutive year and Bloomberg Gender-Equality Index for the third consecutive year; and named a Top-Rated Industry Performer and Top-Rated Regional Performer by Sustainalytics for the first time

 FULL YEAR 2021 HIGHLIGHTS   

• Net income of $0.93 per share, Nareit FFO of $1.12 per share, FFO as Adjusted of $1.61 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 4.4%
  • Life Science and MOB Same-Store Portfolio Cash (Adjusted) NOI growth of 7.2% and 3.1%, respectively
  • Total pro forma Same-Store Portfolio Cash (Adjusted) NOI growth of 4.9% excluding government grants received under the CARES Act at our CCRC properties 
• Closed $1.5 billion of acquisitions including:
  • $658 million of life science acquisitions
  • $834 million of medical office acquisitions
• Development: 
  • Commenced four life science development projects totaling approximately 839,000 square feet, representing $812 million of estimated total spend
  • Signed 729,000 square feet of life science and MOB development leasing during 2021
• Closed $3.3 billion of dispositions including:
  • $3 billion of senior housing sales and loan repayments, bringing total senior housing dispositions to approximately $4 billion since July 2020
  • $300 million of other non-core sales
• Balance sheet: 
  • Issued $950 million of senior unsecured notes across multiple green bond offerings at a weighted average coupon of 1.76%
  • Using proceeds from senior housing sales, repaid $2 billion of senior unsecured notes with maturities ranging from 2023 to 2025 with a weighted average coupon rate of 3.95%
• Earned numerous ESG recognitions in 2021. We were short-listed for Best Proxy Statement by IR Magazine and Corporate Secretary for the second consecutive year; were named a constituent in the FTSE4Good Index, as well as received a Green Star rating from the Global Real Estate Sustainability Benchmark (GRESB), for the tenth consecutive year; were named to CDP’s Leadership band, as well as listed in S&P Global’s North America Dow Jones Sustainability Index, for the ninth consecutive year; were listed in S&P Global’s Sustainability Yearbook for the seventh consecutive year; were named to the Bloomberg Gender-Equality Index, 3BL Media’s 100 Best Corporate Citizens list, and Newsweek’s America’s Most Responsible Companies list for the third consecutive year; maintained a rating of “Prime” by ISS ESG Corporate Rating; and were named a Top-Rated Industry Performer and Top-Rated Regional Performer by Sustainalytics for the first time