Healthpeak Properties(PEAK) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $42.364 million, or $0.06 per share, compared to $6.477 million, or $0.01 per share in Q1 2024[9] - Nareit FFO for Q1 2025 was $323.279 million, or $0.45 per share, up from $162.206 million, or $0.27 per share in Q1 2024[9] - Total revenues for Q1 2025 reached $702,889,000, a 15.9% increase from $606,560,000 in Q1 2024[28] - Rental and related revenues increased to $538,141,000, up 16.5% from $462,033,000 year-over-year[28] - Net income attributable to Healthpeak Properties, Inc. was $42,828,000, compared to $6,676,000 in the same quarter last year, representing a significant increase[28] - The company reported a basic earnings per share of $0.06 for Q1 2025, compared to $0.01 in Q1 2024[28] - The Nareit FFO applicable to common shares for Q1 2025 was $318.656 million, up from $160.588 million in Q1 2024, indicating a year-over-year growth of 98.5%[29] - Diluted Nareit FFO per common share increased to $0.45 in Q1 2025 from $0.27 in Q1 2024, reflecting a growth of 66.7%[29] - Adjusted Funds From Operations (AFFO) applicable to common shares for Q1 2025 was $301.791 million, compared to $252.821 million in Q1 2024, marking a year-over-year increase of 19.3%[32] - Total Portfolio Cash (Adjusted) NOI for the quarter ending March 31, 2025, was $391 million, with an annualized NOI of $1.584 billion[74] Guidance and Projections - Healthpeak reaffirmed its 2025 guidance with diluted earnings per share expected to be between $0.30 and $0.36, and diluted Nareit FFO per share between $1.81 and $1.87[24] - The company provided guidance for FY 2025, projecting diluted Nareit FFO per common share to be in the range of $1.81 to $1.87, consistent with previous guidance[33] - Healthpeak's total year-over-year merger-combined same-store cash (adjusted) NOI growth is expected to be between 3.00% and 4.00% for FY 2025[33] Liquidity and Capital Structure - The company has approximately $2.8 billion in available liquidity as of April 24, 2025, through unrestricted cash and its revolving credit facility[21] - The company issued $500 million of 5.375% fixed-rate senior unsecured notes in February 2025, with net proceeds used for general corporate purposes[20] - Total assets decreased to $19,815,729,000 as of March 31, 2025, down from $19,938,255,000 at the end of 2024[27] - Total liabilities increased to $10,972,320,000, compared to $10,880,631,000 at the end of 2024[27] - The company has a cash and cash equivalents balance of $70,625,000, down from $119,818,000 at the end of 2024[27] - Total liquidity as of March 31, 2025, was $2,906,625, comprising cash and cash equivalents of $70,625 and availability under the credit facility of $3,000,000[41] Operational Highlights - Healthpeak executed 1.2 million square feet of new and renewal leases in Q1 2025, with outpatient medical leases at 973,000 square feet and lab leases at 276,000 square feet[8] - The operating portfolio occupancy rate for outpatient medical facilities was reported at 92.2% as of March 31, 2025[35] - The total occupancy rate across all units is 86.2% for the quarter ended March 31, 2025, showing an increase from previous quarters[70] - The company has a diversified tenant base, with 15.4% from physician group practices and 10.3% from large-cap biopharma[58] Development and Investment - Healthpeak originated a $41 million secured outpatient medical development loan in Frisco, Texas, bringing total investment commitments for Q1 2025 to $166 million[8] - The company acquired three outpatient medical buildings in New York in February 2025, with a total capacity of 17,005 square feet at an 8.7% cash cap rate[45][47] - As of March 31, 2025, the total cost to complete development projects is $459.3 million, with a total capacity of 582,000 square feet and 71% leased[48] - The redevelopment projects have a total estimated completion cost of $319 million, with a total capacity of 456,000 square feet and 37% leased[49] - The total project capacity for redevelopment projects includes 164,000 square feet for Portside at Oyster Point, with an estimated completion cost of $104 million[49] Financial Ratios and Metrics - The leverage ratio stood at 37%, significantly below the maximum requirement of 60%, indicating strong financial health[39] - The fixed charge coverage ratio was reported at 4.4x, well above the minimum requirement of 1.50x[39] - The weighted average interest rate for the company's debt was 4.19% as of March 31, 2025, with a weighted average maturity of 4.5 years[44] - The company’s credit ratings are Baa1 (Stable) from Moody's and BBB+ (Stable) from S&P Global, indicating a stable outlook[42] Shareholder Returns - Healthpeak repurchased 5.1 million shares at an average price of $18.50 for a total of $84 million during Q1 2025[8] - The annualized base rent (ABR) from the top 20 tenants is $1.5 billion, with HCA Healthcare contributing 10.1% of the ABR[58] Miscellaneous - The company recognized $4 million in termination fee income associated with a lease modification during the quarter, which contributed to rental and related revenues[30] - The company plans to expand its leased square feet significantly, with 4,035 square feet leased in 2026, generating an annualized base rent of $117,085,000[66] - The projected stabilized cash yield for the blended projects is approximately 7%[49] - The projected stabilized cash-on-cash return on incremental capital invested typically ranges from 9% to 12%[50]