Healthpeak Properties, Inc. · NYSE:DOC
Healthpeak Properties — Nareit REITweek: 2019 Investor Conference
45 slides from Healthpeak Properties's conference presentation, November 2019
Slide 1: Investor Presentation
The Hartwell Innovation Campus Lexington, MA Investor Presentation November 2019
Slide 2: Disclaimers
Disclaimers This presentation is being presented by Healthpeak Properties, Inc. (“Healthpeak” or the “Company”) solely inspection requirements, and laws addressing entitlement programs and related services, including defaults, the results of final purchase price allocations, as well as the risk fact
Slide 3: Contents
Introduction to Healthpeak 04 – 11 2019 in Review 12 – 20 Development Detail 21 – 24 Life Science 25 – 27 Contents Medical Office Senior Housing 28 – 32 33 – 37 Balance Sheet and Corporate Responsibility 38 – 42 Appendix 43 – 44
Slide 4: Introduction to Healthpeak
The Cove San Francisco, CA Introduction to Healthpeak
Slide 5: Introducing Healthpeak Properties
Introducing Healthpeak Properties “The name change to Healthpeak Properties represents the culmination of efforts to reposition our strategy, team, portfolio and balance sheet. Over the past few years, we’ve become more disciplined in our investment approach and we have worked diligently to position
Slide 6: Healthpeak at a Glance
Healthpeak at a Glance Key Statistics Key Differentiators ■ High-quality private-pay portfolio with a balanced emphasis on Life Science, Medical Office and Senior Housing real estate ■ $1.1 billion development pipeline that is over 50% pre-leased PEAK 740 BBB+/BAA1 $25BN 4.3% 29% ■ Deep relationship
Slide 7: Focused, High-Quality Real Estate Portfolio
Focused, High-Quality Real Estate Portfolio We are well-positioned to serve aging baby boomer demographic and capture growth Life Science Medical Office Senior Housing New and innovative drugs, treatments, and Outpatient services and specialist doctor Communities offering social activities, daily he
Slide 8: People Are Our Most Important Resource
People Are Our Most Important Resource A people-first culture that attracts top talent and creates an unrivaled environment of innovation, collaboration and diversity What we are doing Newly aligned executive management Cultivating a culture of high-performing teams Fostering by civility an engag
Slide 9: Seasoned Leadership Team
Seasoned Leadership Team Tom Herzog Scott Brinker Peter Scott Chief Executive Officer President and Chief Chief Financial Officer Joined June 2016 Investment Officer* Joined February 2017 Joined March 2018 Tom Klaritch Experienced Troy McHenry Chief Development and Team Chief Legal Officer, General
Slide 10: Refreshed Board
Refreshed Board Strengthening our Board with relevant experience to support long-term strategy COMMITTEES EXPERIENCE Investment Expertise Financial Expertise / Healthcare Industry Board / Committee REIT / Real Estate Legal / Regulatory Public Company Public Company BOARD HIGHLIGHTS Risk Oversight /
Slide 11: Healthpeak's Premier Real Estate Portfolio
Healthpeak’s Premier Real Estate Portfolio Nine strategic campuses / portfolios represent ~30% of total company Cash NOI(1) Life Science Medical Office Senior Housing The Cove at Oyster Point | San Francisco, CA | Stabilized / Dev. Medical City Dallas | Dallas, TX | Stabilized Discovery Portfolio |
Slide 12: 2019 in Review
Atria Woodbridge Irvine, CA 2019 in Review
Slide 13: 2019 YTD Highlights
2019 YTD Highlights ■ $2.5B of announced investments year to date, inclusive of: □ Senior Housing: $1.4B of acquisitions which are expected to improve operator and geographic diversification and expand our relationships with top- tier partners □ Medical Office: $118M of estimated development spend r
Slide 14: Acquiring High Quality Senior Housing Portfolios
Oakmont Mariner Discovery Point Village at Palm Beach Gardens Discovery Village Palm Beach Gardens SanPalm Francisco, BeachCAGardens, FL Miami, FL Acquiring High Quality Senior Housing Portfolios Oakmont Senior Living Portfolio (California) Discovery Senior Living Portfolio (Florida (7), Georgia, Te
Slide 15: Acquiring High Quality Senior Housing Portfolios (cont'd)
Oakmont Mariner Discovery Cypress Point Village Villageat Palm Beach Gardens Discovery Village Palm Beach Gardens Freedom Pointe SanPalm Francisco BeachMSA Jacksonville, Gardens, FL FL Miami, The FL Villages, FL Acquiring High Quality Senior Housing Portfolios (cont’d) CCRC JV Portfolio (Florida (9)
Slide 16: Continuing Care Retirement Community (CCRC) Overview
Continuing Care Retirement Community (CCRC) Overview What are CCRCs? Key CCRC Benefits Significant land requirements, high development costs and difficult financing ■ Continuing Care Retirement Communities (CCRCs) are a unique and differentiated requirements for new CCRC development create meaning
Slide 17: Growing Medical Office Platform with HCA Healthcare Developments
Orange 101 Park (Rendering)Drive CambridgePark Raulerson (Rendering) Jacksonville, Boston, MAFL Okeechobee, FL Growing Medical Office Platform with HCA Healthcare Developments Orange Park (Jacksonville, FL) Raulerson (Okeechobee, FL) ■ Total estimated spend of $17M ■ Total estimated spend of $17M ■
Slide 18: Expanding our Boston Life Science Footprint
CambridgePark Drive Campus The Hartwell Innovation Campus West Cambridge, MA Lexington, MA Parking Structure 87 CPD 35 CPD 101 CPD Expanding our Boston Life Science Footprint CambridgePark Drive (“CPD”) (West Cambridge, MA) The Hartwell Innovation Campus (Lexington, MA) ■ Created a scalable footprin
Slide 19: Active Major Life Science Development Projects
The 101 Shore (Rendering) Drive CambridgePark 75 Hayden (Rendering) South San Francisco, Boston, MA CA Boston, MA Active Major Life Science Development Projects The Shore (South San Francisco, CA) 75 Hayden (Boston, MA) ■ ~$620M of total estimated spend with $335M remaining ■ ~$160M of total estimat
Slide 20: Future Life Science Opportunities from Land Bank
101 CambridgePark Drive (Rendering) Science Center Drive Campus (Rendering) West Cambridge, MA San Diego, CA Redevelopment New Development New Development Future Life Science Opportunities from Land Bank 101 CambridgePark Drive (West Cambridge, MA) The Boardwalk (Science Center Drive Campus) (San Di
Slide 21: Development Detail
75 Hayden (Rendering) Boston, MA Development Detail
Slide 22: Active Development Pipeline
Active Development Pipeline (1) Project Market Total Cost to Remaining Leasable Area Percent Est. Date of Est. Stab. Yield Est. Stab. Cash (000s) Leased Stab. Occ. Range (3) NOI ($M)(4) Costs ($M) Date ($M)(2) Costs ($M) Ridgeview San Diego $33 $31 $2 152 SF 100% 2Q 2020 6.5% - 7.0% $2 Sorrento Summ
Slide 23: Active Development Pipeline: Earnings Contributions
Active Development Pipeline: Earnings Contributions Estimated Net Contributions to FFO as Adjusted per Share(1)(2) (Based on Healthpeak’s current active development pipeline) $0.11 $0.09 $0.07 Net Accretion: +$0.05 YOY Δ: +$0.02 Net Accretion: +$0.03 $0.05 YOY Δ: +$0.04 $0.03 $0.05 $0.04 $0.01 $0.01
Slide 24: Active Development Pipeline: Value Creation
Active Development Pipeline: Value Creation Pipeline Expected to Drive ~$300-$600M of Value Creation In-Place Development Yield Expected to Generate a ~200bps Spread Over Market Cap Rates Projects Totaling $400M are 100% Pre-Leased Illustrative NAV Creation from Active Developments ($ in milli
Slide 25: Life Science
Scripps Wateridge San Diego, CA Life Science
Slide 26: Life Science Funding Sources
Life Science Funding Sources Since the unprecedented “patent cliff” in 2011-2012, pharma investment into biotech R&D has increased dramatically $220B Industry (i.e. pharma)(1) $200B ■ Represents lion’s share of life science funding at ~73% in 2018 Patent Expirations ■ Includes biotech partnerships,
Slide 27: Life Science Segment Overview
Life Science Segment Overview Class A real estate in premier Life Science epicenters 133 27 9.5M 97.5% $347M Properties(1) Campuses(1) Square Feet(1) Occupancy Cash NOI(2) SAN FRANCISCO SAN DIEGO BOSTON Preeminent Life Science real estate owner in Irreplaceable real estate strategically positioned F
Slide 28: Medical Office
Swedish Medical Center Seattle, Washington Medical Office
Slide 29: Medical Office: Point of Care Evolution Driven by Aging Patients
Medical Office: Point of Care Evolution Driven by Aging Patients Demand for outpatient care has outpaced inpatient services since 2015, as an older patient population that requires more frequent care has recognized the advantages of shorter duration, lower price-point outpatient visits Age 65+ Popul
Slide 30: Industry-Leading On-Campus Medical Office Portfolio
Industry-Leading On-Campus Medical Office Portfolio Top ten markets represent 66% of segment Cash NOI 21M 80%+ 84% / 95% 92%+ Specialty Focused square feet On-Campus / Affiliated Consistent Occupancy Physicians(1) Seattle 21M Salt Philadelphia square feet Lake City Denver Louisville Nashville Greenv
Slide 31: Medical Office: Strong relationships drive steady performance
Medical Office Strong relationships drive steady performance Historical Same-Property Occupancy Key Relationships (Occupancy %) 95% 93% 93% 90% 92% 92% 92% 91% 91% 91% 85% ■ Largest for-profit hospital operator 80% ■ 43% of Healthpeak’s medical office square footage affiliated with HCA 75% 2011 2012
Slide 32: Focus on Specialty Physicians Differentiates our Portfolio
Focus on Specialty Physicians Differentiates our Portfolio Our disproportionately high percentage of specialty physicians reflects our on-campus focus and insulates our portfolio from evolving lower acuity healthcare delivery locations, such as neighborhood urgent care centers and telemedicine Medic
Slide 33: Senior Housing
Aegis Dana Point Dana Point, CA Senior Housing
Slide 34: Senior Housing Demand Fundamentals Are Strong
Senior Housing Demand Fundamentals Are Strong An aging population, declining caregiver ratio and increasing penetration rate will drive a dramatic increase in demand Age 80+ Population Declining Adult Child Caregiver Ratio Steadily Increasing Penetration Rate(1) (in millions) Ratio of 45-64 to 80+ 8
Slide 35: SHOP Asset Quality Transformation
SHOP Asset Quality Transformation Strategic and disciplined acquisitions, dispositions and operator transitions have led to a dramatic improvement in asset quality and operator diversification Improved Asset Quality Improved Operator Diversification(2) Reduction in average building age, SHOP Cash NO
Slide 36: SHOP Asset Quality Transformation (Cont'd)
SHOP Asset Quality Transformation (Cont’d) Strategic capital allocation has led to a dramatic shift towards concentration in high growth and affluent markets Improved Real Estate Markets Strategically-Located Senior Housing Portfolio(1)(2) % of SHOP Cash NOI(1) TOP MSAs 9/30/2017 9/30/2019 208 29,01
Slide 37: Healthpeak SHOP Local Market 5-Year Outlook
Healthpeak SHOP Local Market 5-Year Outlook (1) Favorable supply and demand fundamentals should drive occupancy growth in our local markets within the next 15 months and beyond 5-Mile 80+ Population Growth(2) 5-Mile 80+ Inventory Growth(4) Strong Population Growth 4.0% 5.0% 3.5% 4.0% 3.3% Increasing
Slide 38: Balance Sheet and Corporate Responsibility
Centennial Medical Center Nashville, TN Balance Sheet and Corporate Responsibility
Slide 39: Improved Credit Profile and Debt Maturity Schedule
Improved Credit Well-Staggered Debt Profile Maturity Schedule ■ Investment grade balance sheet ■ No material maturities through 2022 ■ Primarily fixed rate, unsecured borrowings ■ Improved liquidity with upsized revolver capacity ■ Low overall average cost of debt ■ Extended weighted average maturit
Slide 40: Spotlight on Healthpeak's Green Accomplishments and Buildings
Spotlight on Healthpeak’s Green Accomplishments and Buildings (1) 2.6M ft.2 223 115 8 Times Properties with Common Area LED LEED® Certified Properties ENERGY STAR Certified Buildings Nareit Leader in the Light Lighting Retrofits Life Science Medical Office Senior Housing Soledad | San Diego, CA Sky
Slide 41: Commitment to Sustainability
Commitment to Sustainability CDP Leadership Band Excellent progress on our long-term environmental goals(1) 2013 – 2018 GRESB Green Star Rating 27% 17% 2012 – 2019 Decrease in Increase in Greenhouse Gas Recycled Waste Dow Jones Sustainability Index Emissions DJSI N. America Index – 2013 – 2019 Susta
Slide 42: Commitment to Social and Governance Initiatives
Commitment to Social and Governance Initiatives Our mission to be an upstanding corporate citizen is underscored by our commitment to diversity, inclusion, engagement, transparency and accountability (2) Board Diversity Workforce Diversity ISS QualityScores Reflect Lowest Risk 0 2 4 6 8 10 Healthpea
Slide 43: Appendix
Medical City Dallas Dallas, TX Appendix
Slide 44: Reconciliation
Reconciliation Q3-2019 Portfolio Income Senior Housing Life Science Medical Office Other Total Portfolio Income (1) 108,669,393 81,974,108 90,598,860 21,265,334 302,507,695 Senior housing asset sales and transitions (2) (6,603,070) - (6,603,070) Other pro forma adjustments(3) (129,019) 4,693,256 (6,
Slide 45: healthpeak.com
‘ill? Healthpeak PROPERTIES healthpeak.com
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