Healthpeak Properties(US:PEAK)2024-07-26 20:15Financial Performance - Total revenues for the three months ended June 30, 2024, increased to $695.5 million, up 27.5% from $545.4 million in the same period of 2023[15] - Net income attributable to Healthpeak Properties, Inc. for the three months ended June 30, 2024, was $146.0 million, compared to $51.9 million for the same period in 2023, representing a 181.5% increase[15] - The company reported a total comprehensive income of $156.5 million for the three months ended June 30, 2024, compared to $68.9 million for the same period in 2023[16] - Basic earnings per share for the three months ended June 30, 2024, were $0.21, up from $0.09 in the same period of 2023[15] - Net income applicable to common shares for the three months ended June 30, 2024, was $145,833, compared to $51,750 for the same period in 2023, representing a significant increase[65] - Nareit FFO applicable to common shares for the six months ended June 30, 2024, was $474,625, up from $473,513 in the prior year, indicating stable performance[65] - Diluted FFO as Adjusted applicable to common shares for the three months ended June 30, 2024, was $320,220, compared to $251,540 for the same period in 2023, reflecting a growth of 27.3%[65] - AFFO applicable to common shares for the six months ended June 30, 2024, was $517,800, an increase from $428,509 in the prior year, showing a growth of 20.9%[65] - Total revenues for the six months ended June 30, 2024, were $1,386,995, compared to $1,366,516 for the same period in 2023, reflecting an increase of approximately 1.4%[108] - Net income applicable to common shares for the six months ended June 30, 2024, was $242,286, a significant recovery from a net loss of $28,192 in the same period of 2023[108] Assets and Liabilities - Total assets as of June 30, 2024, reached $20.18 billion, a significant increase from $15.70 billion as of December 31, 2023[13] - Total liabilities increased to $10.76 billion as of June 30, 2024, compared to $8.77 billion at the end of 2023, reflecting a 22.6% rise[13] - Total stockholders' equity increased to $8.76 billion as of June 30, 2024, compared to $6.35 billion at the end of 2023, marking a 37.7% increase[13] - The company’s total stockholders' equity as of June 30, 2024, was $8,757,498, down from $9,544,651 as of April 1, 2024, indicating a decline of about 8.2%[89] Cash Flow and Financing - The company’s cash and cash equivalents decreased to $106.9 million as of June 30, 2024, from $117.6 million at the end of 2023[13] - Net cash provided by investing activities increased by $228 million for the six months ended June 30, 2024, primarily due to higher proceeds from real estate sales and reduced cash used for development[44] - Net cash used in financing activities increased by $269 million for the six months ended June 30, 2024, mainly due to stock repurchases and increased dividends paid[60] - The company anticipates that cash flows from operations and available cash will be sufficient for the next 12 months to cover operating expenses, debt service, and distributions to stockholders[39] - The company reported a net cash provided by operating activities of $468,764 for the six months ended June 30, 2024, slightly down from $471,737 in the prior year[93] Mergers and Acquisitions - The company completed a merger with Physicians Realty Trust on March 1, 2024, enhancing its portfolio in the healthcare real estate sector[94] - The total purchase price for the merger was $2,968,563, with net assets acquired valued at $2,921,427[88] - The company recognized a gain upon change of control related to the sale of a 65% interest in two lab buildings in San Diego, California, contributing positively to financial performance[23] - The merger with Physicians Realty Trust resulted in the acquisition of 299 outpatient medical buildings, enhancing the company's scale and diversification[86] - The company acquired intangible assets worth $891 million during the merger, which included $852 million of lease-up intangibles and $39 million of above-market lease intangibles[153] Expenses and Costs - Interest expense for the three months ended June 30, 2024, was $74.9 million, an increase from $49.1 million in the same period of 2023[15] - Operating expenses totaled $273.8 million, with significant costs in depreciation and amortization amounting to $283.5 million[204] - The company incurred costs related to a merger, which included advisory and legal expenses, partially offset by termination fee income of $9 million[50] - The Company incurred approximately $7 million in merger-related costs during the three months ended June 30, 2024, and $114 million during the six months ended June 30, 2024, primarily related to the merger with Physicians Realty Trust[131] Shareholder Activities - The company repurchased 3.6 million shares at an average price of $19.00 per share for a total of $68 million during Q2 2024[55] - Common dividends paid were $375,545 for the six months ended June 30, 2024, compared to $328,930 in the same period of 2023, reflecting an increase of about 14.1%[93] - The 2024 Share Repurchase Program allows for the repurchase of up to $500 million in common stock, replacing the previous program[48] - The company repurchased 3,586,396 shares at an average price of $19.00 during the second quarter of 2024, with a maximum of 275,882,263 shares remaining under the repurchase program[70] Debt and Interest Rates - The company’s total debt, including various loans and mortgage debt, amounted to $8,603 million as of June 30, 2024[164] - The company’s mortgage debt increased to $381 million as of June 30, 2024, up from $255 million at December 31, 2023, secured by 20 outpatient medical buildings and 2 CCRCs[162] - The Company assumed a $400 million 2028 Term Loan with a blended fixed effective interest rate of 4.44% as of June 30, 2024[183] - The weighted average effective interest rate on senior unsecured notes is 3.96% with a weighted average maturity of 5 years[191] Operational Metrics - Average occupancy for the Continuing Care Retirement Community was 85.3%, up from 83.3% in the previous period[32] - The company’s average annual total revenues per occupied square foot increased to $82 from $79 in the previous period[29] - Healthpeak's share of unconsolidated joint venture total revenues was $32.6 million, indicating strong performance in joint ventures[204] Future Outlook - Future outlook includes potential increases in borrowing capacity by up to $750 million, subject to securing additional commitments[209] - The company expects to meet future liquidity needs through cash flows from operations, property sales, and potential debt issuances[39]