Healthpeak Properties Inc (PEAK, Financial), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, announced its results for the third quarter ended September 30, 2023, on October 30, 2023. The company reported a net income of $0.12 per share, Nareit FFO of $0.46 per share, FFO as Adjusted of $0.45 per share, and AFFO of $0.40 per share. The company also declared a quarterly common stock cash dividend of $0.30 per share, to be paid on November 20, 2023.
Financial Performance and Highlights
PEAK's third-quarter new and renewal lease executions totaled 2.3 million square feet, with Outpatient Medical new and renewal lease executions totaling 2.1 million square feet, including a 1.3 million square foot renewal at Medical City Dallas. The company also reported a blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 6.0%.
The company's net debt to Adjusted EBITDAre was 5.2x as of September 30, 2023. PEAK updated its full-year 2023 diluted earnings guidance to a range of $0.53 – $0.55 per share and increased the midpoint of 2023 FFO as Adjusted guidance by $0.02 per share.
Financial Tables Summary
The company's net income for Q3 2023 was $64,048 thousand, a decrease from $355,721 thousand for the same period in 2022. The Nareit FFO, diluted for Q3 2023 was $252,566 thousand, an increase from $227,426 thousand in Q3 2022. The FFO as Adjusted, diluted for Q3 2023 was $251,647 thousand, an increase from $235,504 thousand in Q3 2022.
For the nine months ended September 30, 2023, the company's net income was $233,497 thousand, a decrease from $496,341 thousand for the same period in 2022. The Nareit FFO, diluted for the nine months ended September 30, 2023, was $730,764 thousand, an increase from $711,713 thousand for the same period in 2022.
Company's Performance Analysis
Despite the decrease in net income, PEAK's financial performance for Q3 2023 shows positive signs with an increase in Nareit FFO and FFO as Adjusted. The company's updated full-year 2023 diluted earnings guidance also indicates a positive outlook for the remainder of the year.
PEAK's declaration of a quarterly cash dividend of $0.30 per share demonstrates the company's commitment to returning value to its shareholders. The company's net debt to Adjusted EBITDAre of 5.2x as of September 30, 2023, indicates a stable financial position.
PEAK's Q3 2023 earnings report also highlights the company's significant leasing activity, with new and renewal lease executions totaling 2.3 million square feet. This suggests a strong demand for the company's real estate properties.
Explore the complete 8-K earnings release (here) from Healthpeak Properties Inc for further details.
