Healthpeak Properties(PEAK) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $0.01 per share, with Nareit FFO at $0.44 per share, and AFFO at $0.40 per share, reflecting a 5.4% growth in Total Same-Store Portfolio Cash (Adjusted) NOI[9][10] - For the full year 2024, Healthpeak reported a net income of $242.5 million, with Nareit FFO at $1.61 per share, and AFFO at $1.60 per share[11] - Total revenues for the three months ended December 31, 2024, increased to $697,988 thousand, up 26% from $553,652 thousand in the same period of 2023[32] - Rental and related revenues rose to $535,131 thousand for the three months ended December 31, 2024, compared to $412,332 thousand in 2023, reflecting a 30% increase[32] - Net income attributable to Healthpeak Properties, Inc. for the year ended December 31, 2024, was $243,142 thousand, down 20% from $306,009 thousand in 2023[32] - Funds From Operations (FFO) as Adjusted applicable to common shares for the year ended December 31, 2024, reached $1,231,868 thousand, a 26% increase from $978,306 thousand in 2023[39] - Diluted Nareit FFO per common share for the year ended December 31, 2024, was $1.61, compared to $1.79 in 2023, indicating a decrease of 10%[34] - The company incurred interest expenses of $280,430 thousand for the year ended December 31, 2024, up 40% from $200,331 thousand in 2023[32] Dividends and Shareholder Returns - Healthpeak's Board of Directors declared a 1.7% increase in the quarterly cash dividend to $0.305 per share, with an annualized distribution of $1.22 per common share[14] - The company plans to transition to a monthly dividend starting April 2025, providing more consistent cash flow to investors[15] Mergers and Acquisitions - The company achieved approximately $50 million in merger-related synergies during 2024, exceeding the original synergy guidance by $10 million[16] - The merger with Physicians Realty Trust resulted in a combined portfolio of nearly 50 million square feet, enhancing operational capabilities[9][16] Lease and Occupancy - Healthpeak executed new and renewal lease agreements totaling 1.5 million square feet in Q4 2024, with outpatient medical leases showing an 83% retention rate and +2% cash releasing spreads on renewals[9][17] - The occupancy rate for outpatient medical properties is reported at 92.2% as of December 31, 2024[45] - Same-store cash real estate revenues for the three-month period ending December 31, 2024, are $610.725 million, reflecting a year-over-year growth of 5.5%[47] Debt and Liquidity - Healthpeak's net debt to adjusted EBITDA ratio was 5.2x for the quarter ended December 31, 2024[9] - Total liabilities increased to $10,880,631,000 from $8,773,980,000 year-over-year[31] - Total liquidity as of December 31, 2024, is $2.97 billion, including cash and cash equivalents of $119.818 million[51] - The company has total debt maturities of approximately $8.716 billion, with a weighted average interest rate of 4.09% and a weighted average maturity of 4.2 years[54] Guidance and Projections - Healthpeak's 2025 guidance includes expectations based on current market conditions and transaction timing, with further details available in their supplemental report[25] - Diluted earnings per common share are projected to be between $0.30 and $0.36[28] - Diluted Nareit FFO per share is expected to range from $1.81 to $1.87[28] - Total Merger-Combined Same-Store Cash (Adjusted) NOI growth is anticipated to be between 3.0% and 4.0%[28] Market Presence and Tenant Diversification - The company has a diverse tenant base, with Health Systems making up 39.9% of the total[68] - Physician Group Practices account for 15.3% of the tenant diversification[68] - The company has a significant presence in Seattle, which contributes 29% to the overall portfolio[65] - The top market for the company is San Francisco, contributing $91,603 thousand, which accounts for 24% of the portfolio NOI[65] Development and Redevelopment Projects - Development projects in process as of December 31, 2024, include a total estimated cost of $417.860 million for 564,000 square feet, with an occupancy rate of 71%[59] - Redevelopment projects in process have a total estimated cost of $313.043 million for 421,000 square feet, with a projected stabilized cash yield of approximately 7%[60] - The company is engaged in development and redevelopment projects with a total estimated cost of $985,000,000, projected to generate an adjusted NOI of $96,000,000[88] Risks and Forward-Looking Statements - The company is subject to various risks and uncertainties that could significantly impact its financial condition and results of operations[29] - Forward-looking statements reflect current expectations and are subject to risks that may cause actual results to differ materially[30]