Healthpeak Properties(PEAK) - 2025 Q2 - Quarterly Results

Healthpeak Properties Reports Second Quarter 2025 Results Second Quarter 2025 Financial Performance and Recent Highlights Healthpeak reported Q2 2025 net income of $0.05/share, FFO as Adjusted of $0.46/share, strong leasing activity, and $2.3 billion in available liquidity Financial Performance (Q2 2025) | Metric | Per Share | | :----------------------- | :-------- | | Net income, diluted | $0.05 | | Nareit FFO, diluted | $0.43 | | FFO as Adjusted, diluted | $0.46 | | AFFO, diluted | $0.44 | - Declared a monthly common stock cash dividend of $0.10167 per share for July, August, and September 2025, totaling $0.305 per share for Q3, and an annualized dividend of $1.22 per share[8][13] - Second quarter new and renewal lease executions totaled 1.5 million square feet, including 1 million square feet for Outpatient Medical (85% retention, +0% cash releasing spreads) and 503,000 square feet for Lab (87% retention, +6% cash releasing spreads)[8] - Net Debt to Adjusted EBITDAre was 5.2x for the quarter ended June 30, 2025, with approximately $2.3 billion in available liquidity as of July 24, 2025[8][17] - Entered into two new development projects with a combined projected cost of $148 million to support Northside Hospital in the Atlanta market[8][15][18] - Sold one Outpatient Medical land parcel in June 2025 and two Outpatient Medical buildings in July 2025 for combined proceeds of approximately $35 million[8] - Recent corporate impact and sustainability achievements include publishing a 2024 Environmental Data Report, earning Green Lease Leader Platinum designation, achieving LEED Gold certifications for Callan Ridge and 460 Forbes, and being named a constituent of the FTSE4Good Index Series for the 14th consecutive year[8] Second Quarter and Year-to-Date Financial Comparison Healthpeak saw diluted net income per share decrease in Q2 and YTD 2025, while FFO metrics showed mixed trends and Same-Store NOI grew Three Months Ended June 30 (2025 vs. 2024) | Metric | 2025 (Per Share) | 2024 (Per Share) | Change | | :----------------------- | :--------------- | :--------------- | :----- | | Net income, diluted | $0.05 | $0.21 | -76.2% | | Nareit FFO, diluted | $0.43 | $0.44 | -2.3% | | FFO as Adjusted, diluted | $0.46 | $0.45 | +2.2% | | AFFO, diluted | $0.44 | $0.40 | +10.0% | Six Months Ended June 30 (2025 vs. 2024) | Metric | 2025 (Per Share) | 2024 (Per Share) | Change | | :----------------------- | :--------------- | :--------------- | :----- | | Net income, diluted | $0.11 | $0.23 | -52.2% | | Nareit FFO, diluted | $0.89 | $0.72 | +23.6% | | FFO as Adjusted, diluted | $0.92 | $0.90 | +2.2% | | AFFO, diluted | $0.87 | $0.82 | +6.1% | Year-Over-Year Total Merger-Combined SS Cash (Adjusted) NOI Growth | Segment | Three Month SS Growth % | Year-To-Date SS Growth % | | :-------------------------------- | :---------------------- | :----------------------- | | Outpatient Medical | 3.9% | 4.5% | | Lab | 1.5% | 5.4% | | CCRC | 8.6% | 12.2% | | Total Merger-Combined SS Cash (Adjusted) NOI | 3.5% | 5.6% | 2025 Guidance Update Healthpeak updated 2025 guidance, lowering diluted EPS and Nareit FFO per share, while reaffirming FFO as Adjusted and Same-Store NOI growth Updated Full Year 2025 Guidance Ranges | Metric | July 24, 2025 Guidance | April 24, 2025 Guidance | Change | | :------------------------------------------ | :--------------------- | :---------------------- | :----- | | Diluted earnings per common share | $0.25 - $0.31 | $0.30 - $0.36 | Decreased | | Diluted Nareit FFO per common share | $1.78 - $1.84 | $1.81 - $1.87 | Decreased | | Diluted FFO as Adjusted per common share | $1.81 - $1.87 | $1.81 - $1.87 | Reaffirmed | | Total Year-Over-Year Merger-Combined Same-Store Cash (Adjusted) NOI Growth | 3.00% - 4.00% | 3.00% - 4.00% | Reaffirmed | - Other key assumptions (approximate midpoints) include general and administrative expenses (excluding restructuring and severance-related charges) of $85 million and interest expense (net of capitalized interest) of $315 million, both reaffirmed[32] Sources and Uses (FY 2025, in millions) | Category | Amount | | :-------------------------------- | :----- | | Sources: | | | LOC draw / debt issuance | $1,500 | | Sales and loan repayments | $100 | | Retained earnings | $300 | | Total Sources | $1,900 | | Uses: | | | Bond maturities | $800 | | Investments and share repurchases | $500 | | Development, redevelopment and revenue enhancing capex | $600 | | Total Uses | $1,900 | About Healthpeak Properties, Inc. Healthpeak Properties, Inc. is an S&P 500 REIT focused on owning, operating, and developing high-quality healthcare real estate - Healthpeak is a fully integrated real estate investment trust (REIT) and S&P 500 company[21] - The company owns, operates, and develops high-quality real estate for healthcare discovery and delivery[21] Forward-Looking Statements The report contains forward-looking statements on future events, acquisitions, and financial guidance, subject to various risks and uncertainties - Forward-looking statements cover timing and outcomes related to acquisitions, development projects, redevelopments, joint venture transactions, leasing activity, financing activities, dispositions, and the payment of quarterly cash dividends, as well as the 2025 Guidance Information[23] - Risks and uncertainties include macroeconomic trends, changes within the life science industry, factors affecting tenants' ability to meet obligations, concentration in healthcare, illiquidity of real estate, development risks, hospital competitiveness, operational risks, economic conditions, natural disasters, uninsured losses, joint venture limitations, competition, credit losses, integration challenges, litigation, environmental liabilities, ESG commitments, epidemics, IT reliance, financial market volatility, indebtedness, credit ratings, regulatory compliance, and REIT qualification[23] - The company does not guarantee the accuracy of forward-looking statements and does not undertake any obligation to update or supplement them based on new information or future events[23][24] Consolidated Financial Statements Consolidated Balance Sheets As of June 30, 2025, Healthpeak reported total assets of $19.81 billion, total liabilities of $10.88 billion, and total equity of $9.055 billion Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total assets | $19,810,267 | $19,938,255 | | Net real estate | $15,820,054 | $15,831,404 | | Cash and cash equivalents | $89,436 | $119,818 | | Total liabilities | $10,880,631 | $11,223,326 | | Senior unsecured notes | $6,563,256 | $6,268,532 | | Total equity | $9,055,014 | $8,566,837 | Consolidated Statements of Operations Q2 2025 total revenues were $694.3 million, with net income applicable to common shares significantly down to $31.5 million due to lower real estate sales gains Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change | | :----------------------------------- | :--------- | :--------- | :------- | | Total revenues | $694,348 | $695,504 | -0.17% | | Total costs and expenses | $651,638 | $666,159 | -2.18% | | Gain (loss) on sales of real estate, net | $1,636 | $122,044 | -98.66% | | Net income (loss) applicable to common shares | $31,558 | $145,833 | -78.36% | | Diluted EPS | $0.05 | $0.21 | -76.19% | Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change | | :----------------------------------- | :--------- | :--------- | :------- | | Total revenues | $1,397,237 | $1,302,064 | +7.31% | | Total costs and expenses | $1,294,110 | $1,331,991 | -2.84% | | Gain (loss) on sales of real estate, net | $1,636 | $125,299 | -98.69% | | Net income (loss) applicable to common shares | $73,922 | $152,309 | -51.47% | | Diluted EPS | $0.11 | $0.23 | -52.17% | Funds From Operations (FFO) and FFO as Adjusted Diluted Nareit FFO per common share decreased in Q2 2025 but increased YTD, while diluted FFO as Adjusted per common share saw modest increases Diluted Nareit FFO per Common Share | Period | 2025 | 2024 | Change | | :------- | :--- | :--- | :----- | | Q2 | $0.43 | $0.44 | -2.3% | | YTD | $0.89 | $0.72 | +23.6% | Diluted FFO as Adjusted per Common Share | Period | 2025 | 2024 | Change | | :------- | :--- | :--- | :----- |\ | Q2 | $0.46 | $0.45 | +2.2% | | YTD | $0.92 | $0.90 | +2.2% | - Adjustments to Nareit FFO for Q2 2025 included $10.2 million for transaction and merger-related items, $3.5 million for other impairments, and $3.9 million for casualty-related charges[27] Adjusted Funds From Operations (AFFO) Diluted AFFO per common share increased in Q2 and YTD 2025, with a Q1 2025 definition change to adjust for non-refundable entrance fees Diluted AFFO per Common Share | Period | 2025 | 2024 | Change | | :------- | :--- | :--- | :----- | | Q2 | $0.44 | $0.40 | +10.0% | | YTD | $0.87 | $0.82 | +6.1% | - In Q1 2025, Healthpeak changed its definition of AFFO to adjust for non-refundable entrance fees collected in excess of the related amortization, believing this provides a more meaningful representation of CCRC performance[31] 2025 Guidance Information Healthpeak Properties updated its full-year 2025 guidance, lowering diluted earnings per common share and diluted Nareit FFO per common share, while reaffirming diluted FFO as Adjusted per common share and Total Year-Over-Year Merger-Combined Same-Store Cash (Adjusted) NOI growth Updated Full Year 2025 Guidance Ranges | Metric | July 24, 2025 Guidance | April 24, 2025 Guidance | | :------------------------------------------ | :--------------------- | :---------------------- | | Diluted earnings per common share | $0.25 - $0.31 | $0.30 - $0.36 | | Diluted Nareit FFO per common share | $1.78 - $1.84 | $1.81 - $1.87 | | Diluted FFO as Adjusted per common share | $1.81 - $1.87 | $1.81 - $1.87 | | Total Year-Over-Year Merger-Combined Same-Store Cash (Adjusted) NOI Growth | 3.00% - 4.00% | 3.00% - 4.00% | - Other key assumptions (approximate midpoints) include general and administrative expenses (excluding restructuring and severance-related charges) of $85 million and interest expense (net of capitalized interest) of $315 million, both reaffirmed[32] Sources and Uses (FY 2025, in millions) | Category | Amount | | :-------------------------------- | :----- | | Sources: | | | LOC draw / debt issuance | $1,500 | | Sales and loan repayments | $100 | | Retained earnings | $300 | | Total Sources | $1,900 | | Uses: | | | Bond maturities | $800 | | Investments and share repurchases | $500 | | Development, redevelopment and revenue enhancing capex | $600 | | Total Uses | $1,900 | Portfolio Summary As of June 30, 2025, Healthpeak's total portfolio comprised 702 properties with a total investment of $24.67 billion, generating $402.0 million in Portfolio Income Total Portfolio Overview (as of June 30, 2025, in thousands) | Metric | Value | | :-------------------------- | :------------ | | Property Count | 702 | | Total Portfolio Investment | $24,666,512 | | Portfolio Cash Real Estate Revenues | $680,917 | | Portfolio Cash Operating Expenses | $(293,989) | | Interest Income | $15,051 | | Portfolio Income | $401,980 | Operating Portfolio Breakdown (as of June 30, 2025, in thousands) | Property Type | Property Count | Capacity | Operating Occupancy | Portfolio Investment | Portfolio Income | | :-------------------- | :------------- | :--------------- | :------------------ | :------------------- | :--------------- | | Outpatient Medical | 522 | 37,105 Sq. Ft. | 91.8% | $10,632,721 | $201,606 | | Lab | 113 | 9,762 Sq. Ft. | 95.5% | $8,010,792 | $142,776 | | CCRC | 15 | 7,065 Units | 86.0% | $2,452,436 | $36,563 | | SWF Senior Housing JVs | 19 | 3,354 Units | 81.3% | $484,804 | $5,983 | - Developments & Redevelopments include 33 projects with a total investment of $1.57 billion. Land held for development projects has a total investment of $796.5 million. Debt and Other Investments total $715.5 million, generating $15.1 million in interest income[34] Merger-Combined Same-Store Operating Summary The Merger-Combined Same-Store (SS) portfolio showed a total cash (Adjusted) NOI growth of 3.5% for Q2 2025 and 5.6% year-to-date, led by CCRC properties Year-Over-Year Total Merger-Combined SS Cash (Adjusted) NOI Growth | Segment | Three Month SS Growth % | % of SS | Year-To-Date SS Growth % | % of SS | | :-------------------------------- | :---------------------- | :-------- | :----------------------- | :-------- | | Outpatient Medical | 3.9% | 55.2% | 4.5% | 54.9% | | Lab | 1.5% | 34.4% | 5.4% | 34.5% | | CCRC | 8.6% | 10.4% | 12.2% | 10.6% | | Total Merger-Combined SS Cash (Adjusted) NOI | 3.5% | 100.0% | 5.6% | 100.0% | - The Merger-Combined Same-Store presentation includes legacy Physicians Realty Trust properties, with approximately 97% of the combined portfolio represented in the Outpatient Medical segment[102][103] Capitalization and Debt Ratios As of June 30, 2025, Healthpeak's total market equity was $12.41 billion, with consolidated debt at $9.04 billion, leading to a total enterprise value of $21.65 billion, and $2.31 billion in total liquidity Total Capitalization (as of June 30, 2025, in thousands) | Metric | Value | | :-------------------------------- | :------------ | | Total Market Equity | $12,407,113 | | Consolidated Debt | $9,041,253 | | Share of unconsolidated JV debt | $199,851 | | Total Market Equity and Enterprise Debt | $21,648,217 | Debt Ratios (as of June 30, 2025) | Metric | Value | | :-------------------------- | :------ | | Net Debt to Adjusted EBITDAre | 5.2x | | Floating Rate Debt % | 9.5% | | Adjusted Fixed Charge Coverage | 4.4x | | Financial Leverage | 36.4% | | Secured Debt Ratio | 2.2% | Liquidity (as of June 30, 2025, in thousands) | Metric | Value | | :-------------------------- | :------------ | | Cash and Cash Equivalents | $89,436 | | Availability under Credit Facility | $3,000,000 | | Less: Commercial Paper Borrowings | $(775,000) | | Total Liquidity | $2,314,436 | - Credit Ratings (Senior Unsecured Debt): Moody's Baa1 (Stable) and S&P Global BBB+ (Stable)[40] - The company is in strong compliance with all financial covenants, including Leverage Ratio (37% vs. max 60%), Secured Debt Ratio (2% vs. max 40%), Unsecured Leverage Ratio (40% vs. max 60%), Fixed Charge Coverage Ratio (4.4x vs. min 1.50x), and Tangible Net Worth ($13.6B vs. min $7.7B)[37] Indebtedness Healthpeak's total enterprise debt as of June 30, 2025, was $9.24 billion, with a weighted average interest rate of 4.27% and a weighted average maturity of 4.3 years Debt Maturities and Scheduled Principal Repayments (as of June 30, 2025, in thousands) | Year | Consolidated Debt | Share of Unconsolidated JV Debt | Enterprise Debt | Weighted Average Rate % | | :--- | :---------------- | :------------------------------ | :-------------- | :---------------------- | | 2025 | $1,855 | $62,405 | $64,260 | 8.54 | | 2026 | $994,999 | $127,080 | $1,122,079 | 4.09 | | 2027 | $1,350,842 | $12,861 | $1,363,703 | 3.45 | | 2028 | $1,252,775 | - | $1,252,775 | 3.82 | | 2029 | $2,175,000 | - | $2,175,000 | 4.38 | | 2030 | $750,000 | - | $750,000 | 3.14 | | 2031 | $1,100,000 | - | $1,100,000 | 4.12 | | 2032 | $750,000 | - | $750,000 | 5.49 | | Thereafter | $800,000 | - | $800,000 | 6.05 | | Total | $9,041,253 | $199,851 | $9,241,104 | 4.27 | - The weighted average maturity of enterprise debt is 4.3 years[42] - The company has a $3.0 billion unsecured revolving line of credit facility that matures on January 19, 2029[42] Investment Summary For the six months ended June 30, 2025, Healthpeak acquired two properties totaling $37.0 million and disposed of properties for $4.2 million Acquisitions (Six Months Ended June 30, 2025, in thousands) | Property | MSA | Property Type | Amount | | :---------------------- | :------------ | :---------------- | :----- | | Middletown Medical | New York, NY | Outpatient Medical | $17,005 | | 100 Smith land parcel | Boston, MA | Lab | $20,000 | | Total | | | $37,005 | - The Middletown Medical acquisition involved three Outpatient Medical buildings in New York with long-term leases expiring in 2038, acquired at an 8.7% cash cap rate[46] - The 100 Smith land parcel acquisition in Boston was negotiated in 2022 for future development projects[46] Dispositions (Quarter Ended June 30, 2025, in thousands) | Property | Property Type | Sales Price | | :-------------------------- | :---------------- | :---------- | | Sunrise Medical Tower land parcel | Outpatient Medical | $4,200 | | Total | | $4,200 | - Subsequent to June 30, 2025, Healthpeak sold two Outpatient Medical buildings for an additional $31 million[46] Developments and Redevelopments Healthpeak has 10 development projects with an estimated total cost of $684 million and 23 redevelopment projects with an estimated total cost of $427 million, primarily in Lab and Outpatient Medical Development Projects in Process (as of June 30, 2025, in thousands) | Project Type | Property Count | CIP | Cost to Complete | Estimated Total at Completion | Total Capacity (Sq. Ft.) | Project % Leased | | :----------------- | :------------- | :-------- | :--------------- | :-------------------------- | :----------------------- | :--------------- | | Lab | 3 | $355,917 | $45,883 | $402,000 | 520 | 50% | | Outpatient Medical | 7 | $108,922 | $153,872 | $285,000 | 608 | 78% | | Total | 10 | $464,518 | $219,482 | $684,000 | 1,119 | 71% | Redevelopment Projects in Process (as of June 30, 2025, in thousands) | Project Type | Property Count | CIP | Cost to Complete | Estimated Total at Completion | Total Capacity (Sq. Ft.) | Project % Leased | | :----------------- | :------------- | :-------- | :--------------- | :-------------------------- | :----------------------- | :--------------- | | Lab | 3 | $99,468 | $165,532 | $265,000 | 653 | 33% | | Various (Other) | 13 | $59,788 | $102,212 | $162,000 | 625 | 24% | | Total | 23 | $159,256 | $267,744 | $427,000 | 1,278 | 28% | - The blended projected stabilized cash yield for Development projects is approximately 7%. Projected stabilized cash-on-cash return on incremental capital invested for Redevelopment projects typically ranges from 10% to 12%[48] - During Q2 2025, one Outpatient Medical Development building, two Point Grand Redevelopment buildings, and two Other Redevelopment buildings were placed in service[49] Capital Expenditures Healthpeak's total capital expenditures for Q2 2025 were $199.5 million, and $363.6 million year-to-date, with development and redevelopment activities accounting for the largest portion Total Capital Expenditures (Three Months Ended June 30, 2025, in thousands) | Category | Outpatient Medical | Lab | CCRC | Other | Total | | :-------------------------------- | :----------------- | :-------- | :-------- | :-------- | :-------- | | Recurring Capital Expenditures | $4,206 | $1,101 | $3,280 | $863 | $9,450 | | Tenant improvements | $5,257 | $3,429 | - | - | $8,686 | | Lease commissions | $4,528 | $2,126 | - | - | $6,653 | | AFFO capital expenditures | $13,991 | $6,656 | $3,280 | $863 | $24,790 | | Revenue Enhancing Capital Expenditures | $16,416 | $12,644 | $12,639 | $1,060 | $42,759 | | Casualty related capital expenditures | $658 | - | $13,073 | $14 | $13,744 | | Initial Capital Expenditures ("ICE") | $11,543 | - | - | - | $11,543 | | Development | $21,143 | $21,773 | - | - | $42,915 | | Redevelopment | $5,978 | $36,087 | - | - | $42,065 | | Capitalized interest | $1,770 | $19,897 | - | - | $21,667 | | Total capital expenditures | $71,498 | $97,057 | $28,992 | $1,937 | $199,483 | Total Capital Expenditures (Six Months Ended June 30, 2025, in thousands) | Category | Outpatient Medical | Lab | CCRC | Other | Total | | :-------------------------------- | :----------------- | :-------- | :-------- | :-------- | :-------- | | AFFO capital expenditures | $28,429 | $14,199 | $3,566 | $1,838 | $48,032 | | Revenue Enhancing Capital Expenditures | $30,575 | $26,291 | $18,518 | $1,922 | $77,306 | | Development | $53,702 | $34,949 | - | - | $88,651 | | Redevelopment | $6,973 | $60,367 | - | - | $67,341 | | Total capital expenditures | $145,723 | $174,379 | $39,022 | $4,498 | $363,622 | Portfolio Diversification Healthpeak's portfolio is diversified across key markets, with San Francisco, CA, representing the largest share of Portfolio Cash (Adjusted) NOI at 23%, followed by Boston, MA, at 10% Top 20 Markets by % of Total Portfolio Cash (Adjusted) NOI (as of June 30, 2025, in thousands) | Market | (Adjusted) NOI | % of Total (Adjusted) NOI | | :------------------ | :------------- | :------------------------ | | San Francisco, CA | $87,126 | 23% | | Boston, MA | $37,039 | 10% | | Dallas, TX | $28,028 | 7% | | San Diego, CA | $20,337 | 5% | | Houston, TX | $17,313 | 4% | | Tampa, FL | $13,892 | 4% | | Louisville, KY | $10,036 | 3% | | Philadelphia, PA | $9,871 | 3% | | Nashville, TN | $9,836 | 3% | | Seattle, WA | $9,725 | 3% | | Denver, CO | $9,095 | 2% | | Phoenix, AZ | $8,533 | 2% | | Atlanta, GA | $8,319 | 2% | | Washington, DC | $7,859 | 2% | | Minneapolis, MN | $7,178 | 2% | | Jacksonville, FL | $6,571 | 2% | | New York, NY | $5,178 | 1% | | Salt Lake City, UT | $4,896 | 1% | | Indianapolis, IN | $4,789 | 1% | | Orlando, FL | $4,432 | 1% | | Remaining | $76,876 | 20% | - The San Francisco, CA market primarily consists of properties in South San Francisco, located in San Mateo County, not the city or county of San Francisco[55] Tenant Diversification Healthpeak's tenant base is diversified, with Physician Group Practices accounting for 14.7% of annualized base rent (ABR) and Biopharma (Large, Mid, Small Cap) collectively making up 26.0% - Tenant diversification by classification (% of ABR): Physician Group Practices (14.7%), Large Cap Biopharma (10.9%), Small Cap Biopharma (8.6%), Private Health System (7.3%), Med Device / R&D / University & Specialty Outpatient Services (6.5%), Mid Cap Biopharma (6.5%), Other (4.4%). Total Biopharma (Large, Mid, Small Cap) is 26.0%[57] - Annualized Base Rent (ABR) is $1.5 billion[57] Top 20 Tenants by % of ABR (as of June 30, 2025) | Tenant / Parent | Classification | Weighted Average Remaining Lease Term (Years) | % of ABR | | :---------------------- | :------------- | :------------------------------------------ | :--------- | | HCA Healthcare | Health System | 6.7 | 10.2 | | CommonSpirit Health | Health System | 9.6 | 2.8 | | McKesson Corporation | Health System | 3.3 | 1.5 | | Ascension Health | Health System | 3.7 | 1.4 | | University of Louisville | Health System | 4.9 | 1.4 | | Northside Hospital | Health System | 6.5 | 1.4 | | Alphabet (Calico) | Large Cap Biopharma | 7.2 | 1.3 | | Novo Nordisk | Large Cap Biopharma | 8.6 | 1.2 | | Arcus Biosciences | Mid Cap Biopharma | 6.5 | 1.2 | | Bristol-Myers Squibb | Large Cap Biopharma | 4.6 | 1.1 | | Revolution Medicines | Mid Cap Biopharma | 10.5 | 1.1 | | Johnson & Johnson | Large Cap Biopharma | 5.9 | 1.1 | | HonorHealth | Health System | 5.8 | 1.1 | | Astellas Pharma | Large Cap Biopharma | 8.8 | 1.1 | | Community Health Systems | Health System | 5.3 | 1.1 | | Norton Healthcare | Health System | 3.7 | 1.1 | | Memorial Hermann | Health System | 5.3 | 1.1 | | Pfizer | Large Cap Biopharma | 4.4 | 1.0 | | Nkarta | Small Cap Biopharma | 8.2 | 0.9 | | Myriad Genetics | Medical Device | 4.0 | 0.9 | | Total Top 20 | | 6.5 | 34.0 | Leasing Metrics This section provides data on new and renewal lease executions, retention rates, and cash releasing spreads for Outpatient Medical and Lab segments for Q2 and YTD 2025 Three Months Ended June 30, 2025 (in thousands) | Metric | Outpatient Medical | Lab | Total | | :-------------------------------- | :----------------- | :-------- | :-------- | | New Lease Executions (Sq. Ft.) | 200 | 100 | 300 | | Renewal Lease Executions (Sq. Ft.) | 800 | 403 | 1,203 | | Total Lease Executions (Sq. Ft.) | 1,000 | 503 | 1,503 | | Retention Rate | 85% | 87% | 86% | | Cash Releasing Spreads on Renewals | 0% | 6% | 2% | Six Months Ended June 30, 2025 (in thousands) | Metric | Outpatient Medical | Lab | Total | | :-------------------------------- | :----------------- | :-------- | :-------- | | New Lease Executions (Sq. Ft.) | 400 | 200 | 600 | | Renewal Lease Executions (Sq. Ft.) | 1,600 | 800 | 2,400 | | Total Lease Executions (Sq. Ft.) | 2,000 | 1,000 | 3,000 | | Retention Rate | 85% | 87% | 86% | | Cash Releasing Spreads on Renewals | 0% | 6% | 2% | Lease Expirations Healthpeak has a diversified lease expiration schedule, with 5.9% of total annualized base rent (ABR) expiring in 2025 and 9.7% in 2026, and a weighted average remaining lease term of 6.5 years Lease Expiration Data (as of June 30, 2025, in thousands) | Year | Leased Square Feet | Annualized Base Rent | % Base Rent | | :--- | :----------------- | :------------------- | :---------- | | 2025 | 2,842 | $86,059 | 5.9% | | 2026 | 4,362 | $141,651 | 9.7% | | 2027 | 3,985 | $137,769 | 9.5% | | 2028 | 4,542 | $130,228 | 8.9% | | 2029 | 4,037 | $148,429 | 10.2% | | 2030 | 3,729 | $153,489 | 10.5% | | 2031 | 3,835 | $147,151 | 10.1% | | 2032 | 3,790 | $133,605 | 9.2% | | 2033 | 2,388 | $103,498 | 7.1% | | 2034 | 2,480 | $102,244 | 7.0% | | Thereafter | 6,484 | $171,596 | 11.8% | | Total | 42,473 | $1,455,719 | 100.0% | - The weighted average remaining lease term for the total portfolio is 6.5 years[58] - Lab leased square feet expiring in 2025 includes 217,000 sq ft planned for redevelopment projects, 62,000 sq ft under LOI, and 28,000 sq ft under negotiation[69] Material Near-Term Purchase Options | Lease Maturity Year | Option Date | Property Name | MSA | Property Type | Annualized Cash (Adjusted) NOI | Option Price | | :------------------ | :---------- | :------------ | :---------- | :---------------- | :----------------------------- | :----------- | | 2026 | 10/2025 | Innovation | San Diego, CA | Outpatient medical | $1,835 | $31,700 | | 2027, 2034 | 01/2026 | Myriad Campus | Salt Lake City, UT | Lab | $7,617 | $68,484 | CCRC Portfolio Healthpeak's CCRC portfolio consists of 15 properties with 7,065 units, achieving a total occupancy of 86.0% in Q2 2025, generating $36.6 million in Portfolio Adjusted NOI Total CCRC Portfolio (as of June 30, 2025, in thousands) | Metric | Value | | :----------------------------------- | :------------ | | Property Count | 15 | | Total Units | 7,065 | | Total Occupancy % | 86.0% | | Resident Fees and Services (excl. NREFs Amortization) | $125,203 | | NREF Amortization | $23,652 | | Portfolio Adjusted NOI | $36,563 | | REVPOR CCRC | $8,169 | | NREF Cash Collections | $42,695 | CCRC Occupancy Trend (Q2 2024 to Q2 2025) | Metric | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | IL, AL, and Memory Care Occupancy % | 85.0 | 84.8 | 85.6 | 85.7 | 85.9 | | Skilled Nursing Occupancy % | 88.3 | 87.2 | 87.3 | 89.1 | 86.4 | | Total Occupancy % | 85.4 | 85.2 | 85.8 | 86.2 | 86.0 | - REVPOR CCRC increased from $7,764 in Q2 2024 to $8,169 in Q2 2025. NREF Cash Collections increased from $33,518k in Q2 2024 to $42,695k in Q2 2025[71] Other Investments The Sovereign Wealth Fund (SWF) Senior Housing JV portfolio achieved 81.3% occupancy in Q2 2025, with REVPOR growing 2.3% and Portfolio Cash (Adjusted) NOI increasing 2.9% Sovereign Wealth Fund Senior Housing JV (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Year-Over-Year Growth | | :------------------------------ | :-------- | :-------- | :-------------------- | | Property count | 19 | 19 | - | | Total Units | 3,354 | 3,354 | - | | Occupancy % | 81.3% | 78.9% | 240 bps | | REVPOR | $5,145 | $5,032 | 2.3% | | Portfolio Cash Real Estate Revenues | $22,527 | $21,360 | 5.5% | | Portfolio Cash Operating Expenses | $(16,544) | $(15,546) | 6.4% | | Portfolio Cash (Adjusted) NOI | $5,983 | $5,814 | 2.9% | Debt and Other Investments (as of June 30, 2025, in thousands) | Investment Type | Investment Amount | Interest Income | Weighted Average Yield | Maturity in Years | | :------------------------ | :---------------- | :-------------- | :--------------------- | :---------------- | | Seller financing | $476,479 | $9,303 | 7.7% | 1.1 | | Development and other loans | $239,074 | $5,748 | 10.3% | 1.9 | | Total | $715,553 | $15,051 | 8.6% | 1.4 | Components of Net Asset Value Healthpeak's annualized Portfolio Cash (Adjusted) NOI is $1.548 billion, with $487 million in estimated cost to complete development and redevelopment projects projected to generate $98 million in stabilized NOI Annualized Portfolio Cash (Adjusted) NOI at Share (as of June 30, 2025, in millions) | Segment | Quarter Ended June 30, 2025 | Annualized | | :----------------------------------- | :-------------------------- | :--------- | | Outpatient Medical | $202 | $806 | | Lab | $143 | $571 | | CCRC | $37 | $146 | | SWE SH JV | $6 | $24 | | Total Portfolio Cash (Adjusted) NOI | $387 | $1,548 | | CCRC NREF cash collections in excess of NREF amortization | - | $56 | | Total | $387 | $1,604 | Development and Redevelopment Properties (in millions) | Category | Estimated Cost to Complete | Estimated Total Cost | Projected Stabilized Portfolio Cash (Adjusted) NOI | | :-------------- | :----------------------- | :------------------- | :------------------------------------------------ | | Development | $219 | $684 | $44 | | Redevelopment | $268 | $427 | $54 | | Total | $487 | $1,111 | $98 | Land Held for Development / Cash / Loans Receivable (in millions) | Metric | Book Value | | :-------------------------------- | :--------- | | Book value of land held for development | $797 | | Cash, cash equivalents, and restricted cash | $163 | | Loans receivable, net of reserves | $717 | | Total | $1,677 | Debt and Other Liabilities (in millions) | Metric | Amount | | :-------------------------------- | :----- | | Bank line of credit and commercial paper | $775 | | Term loans | $1,650 | | Senior unsecured notes | $6,400 | | Mortgage debt | $350 | | Share of unconsolidated JV debt | $202 | | Other liabilities (assets), net | $619 | | Total | $9,996 | Glossary The Glossary defines key financial and operational terms, including non-GAAP measures like Adjusted Fixed Charge Coverage, AFFO, Cash (Adjusted) NOI, EBITDAre, FFO as Adjusted, and Nareit FFO - The glossary defines key financial and operational terms, including non-GAAP measures such as Adjusted Fixed Charge Coverage, Adjusted Funds From Operations ("AFFO"), Annualized Base Rent ("ABR"), Cash (Adjusted) Net Operating Income ("NOI"), EBITDAre, Funds From Operations ("Nareit FFO"), and FFO as Adjusted[79][80][81][82][91][98] - It also provides definitions for terms related to the company's portfolio and operations, including Consolidated Debt, Continuing Care Retirement Community ("CCRC"), Development, Enterprise Debt, Investment and Portfolio Investment, Merger-Combined Same-Store ("SS"), Net Debt, Occupancy, Redevelopment, and various capital expenditure types[84][87][90][92][101][102][108][110][117][119] - The definitions clarify the calculation and intended use of these measures for evaluating the company's operating performance and financial position, noting that non-GAAP measures are supplemental and have inherent limitations[79][82][91][92][96][102][108] Additional Information This section directs readers to Healthpeak's SEC filings (10-K, 10-Q, 8-K) and its website for further information, including reporting definitions and non-GAAP financial measure reconciliations - Readers are advised to consult Healthpeak's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other SEC filings for comprehensive information[128] - Reporting Definitions and Reconciliations of Non-GAAP Financial Measures are an integral part of the information presented and are available on **www.healthpeak.com**[128](index=128&type=chunk) - Market and industry data in the report is obtained from market research, publicly available information, and industry publications; its accuracy and completeness are not guaranteed, and it has not been independently verified by the company[130] - Contact information for Andrew Johns, Senior Vice President - Investor Relations, is provided for more information[131] Discussion and Reconciliation of Non-GAAP Financial Measures This chapter defines and reconciles non-GAAP financial measures like FFO, AFFO, and Same-Store NOI, crucial for evaluating REIT performance - This section provides definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP[10][32] - It covers supplemental non-GAAP financial measures such as Nareit FFO, FFO as Adjusted, AFFO, Total Merger-Combined Same-Store Cash (Adjusted) NOI, and Net Debt to Adjusted EBITDAre[10] - These measures are useful in evaluating the operating performance and financial position of real estate investment trusts[10]