{"id":59822,"date":"2020-08-05T11:38:00","date_gmt":"2020-08-05T11:38:00","guid":{"rendered":"https:\/\/icrowdnewswire.com\/2020\/08\/05\/healthpeak-properties-reports-second-quarter-2020-results\/"},"modified":"2020-08-05T11:38:00","modified_gmt":"2020-08-05T11:38:00","slug":"healthpeak-properties-reports-second-quarter-2020-results","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2020\/08\/05\/healthpeak-properties-reports-second-quarter-2020-results\/","title":{"rendered":"Healthpeak Properties\u2122 Reports Second Quarter 2020 Results"},"content":{"rendered":"![\"\"](\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2020\/08\/4000-1-9.jpg\")
<\/p>\n
Healthpeak Properties, Inc. announced results for the second quarter ended June 30<\/span>, 2020. For the quarter, we generated net income of $0<\/span>.09 per share, NAREIT FFO of $0<\/span>.34 per share, FFO as Adjusted of $0<\/span>.40 per share and blended Total Same-Store Portfolio Cash NOI results of (2.2%).<\/p>\n SECOND QUARTER 2020 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS <\/strong><\/p>\n– The COVID-19 pandemic continues to evolve rapidly. In order to provide more up-to-date information about the impact of COVID-19 on Healthpeak, we have included certain key operating metrics through July 2020<\/span> in this release.<\/p>\n– Balance sheet and liquidity:<\/p>\n
\n- In June 2020<\/span>, issued $600 million<\/span> of 2.875% senior unsecured notes due 2031 and used proceeds to redeem all of Healthpeak’s outstanding $300 million<\/span> 3.150% senior unsecured notes due August 2022<\/span> and to repurchase $250 million<\/span> of Healthpeak’s 4.250% senior unsecured notes due November 2023<\/span>, pursuant to a tender offer completed in June 2020<\/span>. Healthpeak incurred losses on debt extinguishment of $26 million<\/span> in June and approximately $18 million<\/span> in July in connection with the refinancings. Following these transactions, Healthpeak has no material scheduled debt maturities until November 2023<\/span>.<\/li>\n
- As of July 31, 2020<\/span>, had $2.85 billion<\/span> of liquidity including full availability on Healthpeak’s $2.5 billion<\/span> revolving credit facility and approximately $350 million<\/span> of cash and cash equivalents.<\/li>\n<\/ul>\n
– Transactions:<\/p>\n
\n- In June 2020<\/span>, closed on the previously announced sale of the three Frost Street medical office buildings in San Diego, CA<\/span>, generating proceeds of approximately $106 million<\/span>, representing a cash capitalization rate of 6.0%.<\/li>\n
- In April 2020<\/span>, closed on the previously announced $320 million<\/span> life science acquisition of The Post, a 426,000 square foot life science property located within the Route 128 submarket of Boston, Massachusetts<\/span>. The stabilized cash and GAAP capitalization rates are 5.1% and 6.5%, respectively.<\/li>\n<\/ul>\n
– Development completion:<\/p>\n
\n- Delivered a 52,000 square foot, three-story Class A medical office building, located on HCA’s campus of Lee’s Summit Medical Center, in Lee’s Summit, Missouri<\/span>. The development was 51% leased to HCA upon delivery.<\/li>\n<\/ul>\n
– Development leasing:<\/p>\n
\n- In July 2020<\/span>, signed two leases totaling 60,000 square feet, with a weighted average lease term of 8.5 years, bringing the 75 Hayden Avenue development to 100% leased. The project is expected to be completed and delivered in the third quarter of 2021.<\/li>\n
- In June 2020<\/span>, signed a 17-year lease with a full-building user totaling 74,000 square feet at our Boardwalk development project in San Diego, California<\/span>. The 190,000 square foot Class A, three-building development is now 39% pre-leased.<\/li>\n<\/ul>\n
– Declared quarterly common stock cash dividend of $0.37<\/span> per share to be paid on August 25, 2020<\/span>, to stockholders of record as of the close of business on August 14, 2020<\/span>.<\/p>\n– Published 9th annual ESG Report covering 2019 environmental, social and governance (ESG) initiatives and progress; and named to Corporate Responsibility Magazine’s 100 Best Corporate Citizens List for the second consecutive year.<\/p>\n
SECOND QUARTER COMPARISON<\/em><\/strong><\/p>\n\n
\n
\n
\n\n\n| <\/td>\n | \n Three Months Ended
June 30, 2020<\/span><\/p>\n<\/td>\n | <\/td>\n | \n Three Months Ended
June 30, 2019<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n |
\n| \n (in thousands, except per share amounts)<\/em><\/span><\/p>\n<\/td>\n| \n Amount<\/span><\/p>\n<\/td>\n | <\/td>\n | \n Per Share<\/span><\/p>\n<\/td>\n | <\/td>\n | \n Amount<\/span><\/p>\n<\/td>\n | <\/td>\n | \n Per Share<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Net income (loss), diluted<\/span><\/p>\n<\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 51,131<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.09<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n (13,991)<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n (0.03)<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n NAREIT FFO, diluted<\/span><\/p>\n<\/td>\n | \n 182,367<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 0.34<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 199,906<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 0.41<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n FFO as Adjusted, diluted<\/span><\/p>\n<\/td>\n | \n 216,547<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 0.40<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 214,385<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 0.44<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n AFFO, diluted<\/span><\/p>\n<\/td>\n | \n 193,790<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 196,551<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n NAREIT FFO, FFO as Adjusted, AFFO, Same-Store Cash NOI, Net Debt and 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, 2020<\/span> 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 on the Investor Relations section of our website at http:\/\/ir.healthpeak.com\/quarterly-results.<\/p>\nSAME-STORE (“SS”) OPERATING SUMMARY<\/strong><\/p>\nThe table below outlines the year-over-year three-month and year-to-date SS Cash NOI growth: <\/p>\n \n \n \n \n\n\n| \n Year-Over-Year Total SS Portfolio Cash NOI Growth<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n<\/tr>\n | \n| <\/td>\n | \n Three Month<\/span><\/p>\n<\/td>\n | \n Year-To-Date<\/span><\/p>\n<\/td>\n | \n % of SS<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Medical office<\/span><\/p>\n<\/td>\n | \n 1.3%<\/span><\/p>\n<\/td>\n | \n 1.8%<\/span><\/p>\n<\/td>\n | \n 42.5%<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Life science<\/span><\/p>\n<\/td>\n | \n 7.3%<\/span><\/p>\n<\/td>\n | \n 5.3%<\/span><\/p>\n<\/td>\n | \n 34.6%<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Senior housing(1)(2)<\/sup><\/span><\/p>\n<\/td>\n| \n (21.2)%<\/span><\/p>\n<\/td>\n | \n (6.2)%<\/span><\/p>\n<\/td>\n | \n 19.2%<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Other non-reportable segments (“Other”)<\/span><\/p>\n<\/td>\n | \n 2.9%<\/span><\/p>\n<\/td>\n | \n 4.1%<\/span><\/p>\n<\/td>\n | \n 3.8%<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Total Portfolio(1)(2)<\/sup><\/strong><\/span><\/p>\n<\/td>\n| \n (2.2%)<\/strong><\/span><\/p>\n<\/td>\n| \n 1.4%<\/strong><\/span><\/p>\n<\/td>\n| \n 100.0%<\/strong><\/span><\/p>\n<\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n\n \n \n \n\n\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n (1)<\/span><\/p>\n<\/td>\n | \n Same-Store year-over-year three-month Portfolio Cash NOI growth includes government grants under the CARES Act of $1.9 million and identifiable COVID-19 expenses of $6.3 million in the SHOP portfolio.<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n (2)<\/span><\/p>\n<\/td>\n | \n Same-Store year-over-year year-to-date Portfolio Cash NOI growth includes government grants under the CARES Act of $0.4 million and identifiable COVID-19 expenses of $4.1 million in the SHOP portfolio.<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n JULY 2020<\/span> PRELIMINARY UPDATES (Life Science, Medical Office and Hospitals)<\/strong><\/p>\nJuly 2020<\/span> data is based on preliminary information and is subject to change. (SF = square feet)<\/p>\n\n \n \n \n\n\n| \n Indicator<\/strong><\/span><\/p>\n<\/td>\n| \n As of, or for the month ended, July 31, 2020
(unless otherwise noted)<\/strong><\/span><\/p>\n<\/td>\n\n Commentary<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n LIFE SCIENCE<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Occupancy<\/span><\/p>\n<\/td>\n | \n 96.3%<\/span><\/p>\n<\/td>\n | \n Down 60 bps since June 30 due to known vacates<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Leasing<\/span><\/p>\n<\/td>\n | \n 102,000 SF of executed leases (82,000 SF of new leasing)<\/span><\/p>\n<\/td>\n | \n Year-to-date ahead of original expectations<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Letters of Intent<\/span><\/p>\n<\/td>\n | \n 169,000 SF of executed LOIs in lease documentation (78,000 SF of new leasing)<\/span><\/p>\n<\/td>\n | \n 96% of new leasing commitments driven by existing tenants looking to expand<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n July Rent Payments<\/span><\/p>\n<\/td>\n | \n 99% received<\/span><\/p>\n<\/td>\n | \n Ahead of June collections<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Rent Relief Requests<\/span><\/p>\n<\/td>\n | \n No new material requests in July<\/span><\/p>\n<\/td>\n | \n In June, finalized short-term deferrals with 2 tenants totaling approximately $1 million<\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n MEDICAL OFFICE<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Occupancy<\/span><\/p>\n<\/td>\n | \n 91.1%<\/span><\/p>\n<\/td>\n | \n Unchanged from June 30<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Leasing<\/span><\/p>\n<\/td>\n | \n 230,000 SF of executed leases (28,000 SF of new leasing)<\/span><\/p>\n<\/td>\n | \n Year-to-date ahead of original expectations<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Letters of Intent<\/span><\/p>\n<\/td>\n | \n 367,000 SF of executed LOIs in lease documentation (121,000 SF of new leasing)<\/span><\/p>\n<\/td>\n | \n Slightly lower than monthly average but YTD above 2019<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n July Rent Payments<\/span><\/p>\n<\/td>\n | \n 98% of contractual rents received<\/span><\/p>\n<\/td>\n | \n Deferral program represents previously announced program done in conjunction with HCA<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Rent Deferral Payments<\/span><\/p>\n<\/td>\n | \n 96% of rent deferrals due in July have been paid<\/span><\/p>\n<\/td>\n | \n $6 million in total rent deferrals (267 tenants); $1 million to be paid back per month<\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n HOSPITALS<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n July Rent Payments<\/span><\/p>\n<\/td>\n | \n 100% received<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n JULY 2020<\/span> PRELIMINARY UPDATES (Senior Housing)<\/strong><\/p>\nJuly 2020<\/span> data is based on preliminary information and is subject to change. (SF = square feet)<\/p>\n\n \n \n \n\n\n| \n Indicator<\/strong><\/span><\/p>\n<\/td>\n| \n As of, or for the month ended, July 31, 2020
(unless otherwise noted)<\/strong><\/span><\/p>\n<\/td>\n\n Commentary<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n SENIOR HOUSING: SHOP<\/strong>(1)(2)(3)<\/sup><\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Occupancy<\/span><\/p>\n<\/td>\n | \n Spot occupancy (July 31): 77.8%
Average Daily Census (July): 77.8%<\/span><\/p>\n<\/td>\n | \n Spot declined 110 bps vs. June 30
Average Daily Census declined 50 bps vs. June<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Move-ins<\/span><\/p>\n<\/td>\n | \n Declined 62% vs. July 2019; Declined 32% vs. June 2020<\/span><\/p>\n<\/td>\n | \n 86% of our properties are now accepting move-ins<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Move-outs<\/span><\/p>\n<\/td>\n | \n Declined 19% vs. July 2019; Declined 1% vs. June 2020<\/span><\/p>\n<\/td>\n | \n July is the third consecutive month move-outs declined<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Leads<\/span><\/p>\n<\/td>\n | \n Declined 31% vs. July 2019; Declined 2% vs. June 2020<\/span><\/p>\n<\/td>\n | \n Operators continue to prioritize digital marketing platforms<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Tours<\/span><\/p>\n<\/td>\n | \n Declined 52% vs. July 2019; Declined 8% vs. June 2020<\/span><\/p>\n<\/td>\n | \n Tours were almost entirely virtual \/ digital<\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n SENIOR HOUSING: CCRC<\/strong>(1)(2)(3)<\/sup><\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | \n Spot Occupancy
(July 31)<\/span><\/p>\n<\/td>\n | \n Average Daily Census
(July)<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n IL\/AL\/MC Occupancy <\/span><\/p>\n<\/td>\n | \n 82.7%<\/span><\/p>\n<\/td>\n | \n 82.9%<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n SNF Occupancy <\/span><\/p>\n<\/td>\n | \n 62.7%<\/span><\/p>\n<\/td>\n | \n 60.2%<\/span><\/p>\n<\/td>\n | \n Total spot occupancy decreased 20 bps vs. June 30<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |