On February 8, 2024, Healthpeak Properties Inc (PEAK, Financial), a leading owner, operator, and developer of healthcare real estate, released its 8-K filing, detailing financial results for the fourth quarter and the full year ended December 31, 2023. Healthpeak owns a diversified healthcare portfolio, including medical office and life science assets, as well as senior housing, hospital, and skilled nursing/post-acute care assets.
Financial Performance and Strategic Developments
Healthpeak reported a net income of $0.56 per share for the full year, a decrease from the previous year's $0.92 per share. However, the company saw an increase in Nareit FFO to $1.79 per share from $1.66 per share year-over-year, and FFO as Adjusted slightly up at $1.78 per share compared to $1.74 per share in the prior year. AFFO also rose to $1.53 per share from $1.45 per share year-over-year. The Total Same-Store Portfolio Cash (Adjusted) NOI growth was 4.8% for the full year, reflecting the company's operational efficiency and strategic asset management.
Lease executions for outpatient and lab spaces showed positive cash releasing spreads on renewals, indicating strong demand and Healthpeak's ability to negotiate favorable lease terms. The company also highlighted several development completions and new starts in strategic locations, including the fully leased Nexus on Grand and Vantage Phase I buildings in South San Francisco, and the commencement of two new outpatient developments in the HCA Healthcare development program.
Balance Sheet and Cash Flow Highlights
Healthpeak's balance sheet remains robust with net real estate assets totaling approximately $13 billion. The company successfully issued $750 million of senior unsecured notes at a blended yield of approximately 5.35% and weighted average initial maturity of approximately 10 years. It also sold $130 million of non-core properties and received $205 million of seller financing and other loan repayments, enhancing its liquidity position.
The company's Net Debt to Adjusted EBITDAre was 5.2x for the quarter, indicating a manageable level of leverage. The strategic sale of a 65% interest in the Callan Ridge lab campus and the entitlements for additional lab development at the Vantage campus in South San Francisco are expected to further strengthen Healthpeak's financial position and growth prospects.
Outlook and Sustainability Achievements
For the full year 2024, Healthpeak has established an outlook range that includes diluted earnings per common share of $0.07 – $0.13 and diluted Nareit FFO per share of $1.54 – $1.60, among other metrics. This outlook assumes the closure of the merger with Physicians Realty Trust on March 1, 2024.
Healthpeak's commitment to sustainability and responsible business practices was also recognized with several accolades, including a Green Star rating from GRESB and inclusion in the FTSE4Good Index for the twelfth consecutive year.
Overall, Healthpeak's financial achievements in 2023 demonstrate the company's resilience and strategic positioning within the healthcare real estate sector. The company's focus on high-quality real estate for healthcare discovery and delivery, combined with its prudent financial management and commitment to sustainability, positions it well for continued success in the future.
For more detailed information on Healthpeak Properties Inc (PEAK, Financial)'s financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Healthpeak Properties Inc for further details.
