Earnings Release & Supplemental Report

10-K Filing

Discussion + Reconciliation of Non-GAAP Financial Measures

FOURTH QUARTER 2022 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS   

• Net income of $0.01 per share, Nareit FFO of $0.35 per share, FFO as Adjusted of $0.44 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 6.6%
  • Life Science and MOB Same-Store Portfolio Cash (Adjusted) NOI growth of 5.7% and 5.4%, respectively
• Fourth quarter life science new and renewal lease executions totaled 175,000 square feet, with +64% cash releasing spreads on renewals
• Life science development and redevelopment update:
  • Placed-in-service 142,000 square feet of fully leased Class A development space at 101 CambridgePark Drive in Cambridge
  • Completed a $44 million redevelopment of the fully leased 1150 Veterans building on the Oyster Point campus in South San Francisco
  • In December 2022 and January 2023, executed leases totaling 100,000 square feet on previously disclosed LOIs at the Pointe Grand redevelopment campus in South San Francisco
  • The $900 million life science active development pipeline is 78% pre-leased
• In December 2022 and January 2023, acquired a total of 2.2 acres of strategic land in the Alewife submarket of Cambridge for $27 million
• Balance Sheet:
  • In October 2022, drew down the entirety of the previously disclosed $500 million delayed draw senior unsecured term loans at a 3.5% fixed rate via swaps 
  • In December 2022, settled all 9.1 million shares previously outstanding under ATM forward contracts at a weighted average net price of $34 per share, generating net proceeds of $308 million
  • In January 2023, issued $400 million of 5.25% fixed rate 10-year senior unsecured notes
  • Net debt to adjusted EBITDAre was 5.3x as of December 31, 2022
• Healthpeak intends to implement a holding company reorganization to an Umbrella Partnership Real Estate Investment Trust (UPREIT) during the first quarter of 2023
• Promoted Ankit Patadia to Executive Vice President and Treasurer – Corporate Finance
• The Board of Directors declared a quarterly common stock cash dividend of $0.30 per share to be paid on February 23, 2023, to stockholders of record as of the close of business on February 9, 2023 
• Recent ESG recognitions include being named to the CDP Leadership band for the tenth consecutive year; included in the S&P Global Sustainability Yearbook for the eighth consecutive year and Bloomberg Gender-Equality Index and Newsweek's America’s Most Responsible Companies for the fourth consecutive year; and named a Wall Street Journal Best-Managed Company for the first time

FULL YEAR 2022 HIGHLIGHTS

• Net income of $0.92 per share, Nareit FFO of $1.66 per share, FFO as Adjusted of $1.74 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 5.0%
  • Life Science Same-Store Portfolio Cash (Adjusted) NOI growth of 5.1%; 60 basis points above the mid-point of the initial 2022 guidance range of 4.00% - 5.00%
  • MOB Same-Store Portfolio Cash (Adjusted) NOI growth of 4.0%; 175 basis points above the the mid-point of the initial 2022 guidance range of 1.75% - 2.75%
• Portfolio leasing summary:
  • Full-year life science lease executions totaled 1.4 million square feet, with +35% cash releasing spreads on renewals
  • Full-year MOB lease executions totaled 3.1 million square feet
• Delivered development projects on-time and on-budget, with significant pre-leasing prior to delivery
  • 675,000 square feet of fully-leased, purpose-built lab space representing $691 million of investment
  • Three on-campus MOBs totaling 237,000 square feet with a total investment of $69 million
  • Commenced our 10th HCA development project with an on-campus Class A MOB in Savannah, Georgia
• 2022 ESG highlights
  • Received a Green Star rating from the Global Real Estate Sustainability Benchmark (GRESB) for the eleventh consecutive year
  • Named to CDP's Leadership band and listed in the S&P Global North America Dow Jones Sustainability Index for the tenth consecutive year
  • Listed in the S&P Global Sustainability Yearbook for the eighth consecutive year, and named to the Bloomberg Gender-Equality Index and Newsweek's America's Most Responsible Companies list for the fourth consecutive year
  • Certified a Great Place to Work for the third consecutive year
  • Named a Best-Managed Company by the Wall Street Journal and included in Fortune’s Modern Board 25 and Best Workplaces in Real Estate lists for the first time
  • Finalist for Best Proxy Statement for the third consecutive year and Best ESG Reporting for the first time by IR Magazine and Corporate Secretary
  • To learn more about Healthpeak's ESG program, please visit www.healthpeak.com/esg