Healthpeak Properties (DOC) Nareit REIT Week: 2024 Investor Conference summary

Company overview and strategy

• Operates in healthcare discovery and delivery, focusing on life science R&D and outpatient medical real estate in major U.S. markets.

• Recently completed a major merger, becoming the largest owner/operator of outpatient medical real estate.

• Benefits from demographic trends and technology, driving outpatient care growth and profitability.

• Merger enabled internalization of property management, improving tenant relationships and financial performance.

• Maintains a strong balance sheet with low leverage and a significant leasing pipeline in both business segments.

Merger integration and growth opportunities

• Merger with Physicians Realty Trust was strategically planned, enabling early integration and synergy realization.

• Integration focused on combining best talent and processes, preserving key tenant relationships.

• Cultural integration and leadership continuity have supported successful execution.

• Expanded presence in new growth markets, such as Atlanta, leveraging relationships with leading health systems.

• Positioned to capture off-campus healthcare growth, aligning with health system strategies.

Lab portfolio and leasing dynamics

• Lab platform exceeds 12 million sq ft, with about 200 tenant relationships, mainly in core submarkets.

• Tenants increasingly prefer well-capitalized, incumbent landlords in core markets.

• Active leasing pipeline of about 2 million sq ft, with a majority in advanced negotiation stages.

• Renewal and new leasing are balanced, with modest lease maturities in the near term.

• Tenant improvement costs remain low for renewals and new leases, with higher costs limited to new developments.