DENVER–(BUSINESS WIRE)–Healthpeak Properties, Inc. (NYSE: DOC), a leading owner, operator, and developer of real estate for healthcare discovery and delivery, today announced results for the fourth quarter and year ended December 31, 2024.
FOURTH QUARTER 2024 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
- Net income of $0.01 per share, Nareit FFO of $0.44 per share, FFO as Adjusted of $0.46 per share, AFFO of $0.40 per share, and Total Same-Store Portfolio Cash (Adjusted) NOI growth of 5.4%
- Healthpeak’s Board of Directors declared a 1.7% increase in the Company’s quarterly common stock cash dividend to $0.305 per share
- Fourth quarter new and renewal lease executions totaled 1.5 million square feet:
- Outpatient medical new and renewal lease executions totaled 879,000 square feet with 83% retention and +2% cash releasing spreads on renewals
- Lab new and renewal lease executions totaled 652,000 square feet with +30% cash releasing spreads on renewals
- Originated loans and other investments totaling up to approximately $126 million during the fourth quarter 2024 and through January 2025
- Executive management promotions and leadership transitions:
- Promoted Kelvin Moses to Executive Vice President – Investments and Portfolio Management, and Tracy Porter to Executive Vice President and General Counsel
- Pursuant to our long-term executive succession planning, Jeff Miller and Tom Klaritch will each be departing the Company after a transition and consulting role through December 31, 2025, and Mark Theine will lead Healthpeak’s Outpatient Medical platform
- Extended maturity of $3 billion revolving credit facility to 2029
- Net Debt to Adjusted EBITDAre was 5.2x for the quarter ended December 31, 2024
- FULL YEAR 2024 HIGHLIGHTS
- Net income of $0.36 per share, Nareit FFO of $1.61 per share, FFO as Adjusted of $1.81 per share, AFFO of $1.60 per share, and Total Same-Store Portfolio Cash (Adjusted) NOI growth of 5.4%
- Completed Physicians Realty Trust merger joining two leading outpatient platforms with a combined portfolio of nearly 50 million square feet
- Achieved approximately $50 million of merger-related synergies during 2024, exceeding the mid-point of original 2024 synergy guidance by $10 million
- Completed property management internalization in 14 markets totaling over 19 million square feet
- Record year of leasing with over 8 million square feet of executions:
- Outpatient medical new and renewal lease executions totaled 6.2 million square feet with 88% retention and +7% cash releasing spreads on renewals
- Lab executions totaled 2.1 million square feet with +11% cash releasing spreads on renewals
- Record year of CCRC performance with 21% same-store growth and $143 million of entry fee net cash receipts
- Closed on $1.3 billion of dispositions at a blended trailing cash capitalization rate of 6.4%
- As previously disclosed, commenced construction on three new outpatient developments totaling 213,000 square feet with total expected development costs of $90 million and 90% pre-leasing
- As previously disclosed, repurchased 10.5 million shares at a weighted average share price of $17.98 for $188 million
- As previously disclosed, entered into a new $750 million term loan and related swaps to fix the interest rate at 4.5% for the full five-year term of the loan and extended maturity of $3 billion revolving credit facility to 2029
- 2024 sustainability and responsible business recognitions include:
- Obtained 6 new LEED certifications, 19 new ENERGY STAR certifications and 150 ENERGY STAR recertifications in 2024
- Named an ENERGY STAR Partner of the Year for Sustained Excellence in 2024, marking our fourth time receiving the Partner of the Year award and first time being recognized for Sustained Excellence
- Received a Green Star rating from the Global Real Estate Sustainability Benchmark (“GRESB”) and named a constituent in the FTSE4Good Index for the thirteenth consecutive year
- Named to Newsweek’s America’s Most Responsible Companies list for the sixth consecutive year
- Named a constituent S&P Global North America Dow Jones Sustainability Index for the twelfth consecutive year and named a constituent in the S&P Global Dow Jones Sustainability World Index for the fifth time
- Named to the S&P Global Sustainability Yearbook for the ninth consecutive year
To learn more about Healthpeak’s commitment to responsible business and view our 2023 Corporate Impact Report, please visit www.healthpeak.com/corporate-impact.
FOURTH QUARTER COMPARISON
|
|
Three Months Ended |
|
Three Months Ended |
||||||||
|
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||
|
Net income, diluted |
$ |
4,400 |
|
$ |
0.01 |
|
$ |
70,787 |
|
$ |
0.13 |
|
Nareit FFO, diluted |
|
311,396 |
|
|
0.44 |
|
|
263,810 |
|
|
0.48 |
|
FFO as Adjusted, diluted |
|
329,264 |
|
|
0.46 |
|
|
252,639 |
|
|
0.46 |
|
AFFO, diluted |
|
288,775 |
|
|
0.40 |
|
|
196,622 |
|
|
0.36 |
FULL YEAR COMPARISON
|
|
Year Ended |
|
Year Ended |
||||||||
|
(in thousands, except per share amounts) |
Amount |
|
Per Share |
|
Amount |
|
Per Share |
||||
|
Net income, diluted |
$ |
242,491 |
|
$ |
0.36 |
|
$ |
304,284 |
|
$ |
0.56 |
|
Nareit FFO, diluted |
|
1,108,941 |
|
|
1.61 |
|
|
994,574 |
|
|
1.79 |
|
FFO as Adjusted, diluted |
|
1,247,929 |
|
|
1.81 |
|
|
987,708 |
|
|
1.78 |
|
AFFO, diluted |
|
1,103,179 |
|
|
1.60 |
|
|
847,358 |
|
|
1.53 |
Nareit FFO, FFO as Adjusted, AFFO, Total Merger-Combined Same-Store Cash (Adjusted) NOI, and Net Debt to Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts (see the “Funds From Operations” and “Adjusted Funds From Operations” sections of this release for additional information). See “December 31, 2024 Discussion and Reconciliation of Non-GAAP Financial Measures” for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP in the Investor Relations section of our website at http://ir.healthpeak.com/quarterly-results.
MERGER-COMBINED SAME-STORE (“SS”) OPERATING SUMMARY
The table below outlines the year-over-year three-month and full-year Merger-Combined SS Cash (Adjusted) NOI growth.
|
Year-Over-Year Total Merger-Combined SS Cash (Adjusted) NOI Growth |
|||||||||
|
|
Three Month |
|
Full Year |
||||||
|
|
SS Growth % |
% of SS |
|
SS Growth % |
% of SS |
||||
|
Outpatient Medical |
3.1 |
% |
54.8 |
% |
|
3.2 |
% |
55.9 |
% |
|
Lab |
4.9 |
% |
34.8 |
% |
|
5.0 |
% |
33.9 |
% |
|
CCRC |
22.3 |
% |
10.4 |
% |
|
20.8 |
% |
10.2 |
% |
|
Total Merger-Combined SS Cash (Adjusted) NOI |
5.4 |
% |
100.0 |
% |
|
5.4 |
% |
100.0 |
% |
DIVIDEND
On February 3, 2025, Healthpeak’s Board of Directors declared a 1.7% increase in the Company’s quarterly cash dividend on its common stock, from $0.30 per share to $0.305 per share. On an annualized basis, the first quarter dividend represents a distribution of $1.22 per common share.
The first quarter dividend is payable on February 26, 2025, to stockholders of record as of the close of business on February 14, 2025.
TRANSITION TO A MONTHLY DIVIDEND
Beginning April 2025, Healthpeak’s Board of Directors is expected to authorize a monthly dividend in the amount of approximately $0.10167 per share (or $0.305 per share for the quarter). The change from a quarterly dividend to a monthly dividend provides investors with reliable monthly payments while more closely aligning with the timing of the Company’s rental receipts. Future dividends are at the discretion of Healthpeak’s Board of Directors.
PHYSICIANS REALTY TRUST MERGER INTEGRATION
During 2024, the company completed internalization of property management across 14 markets totaling over 19 million square feet, bringing in-house over 100 property management employees. Healthpeak now internally property manages approximately 24 million square feet with additional markets planned for 2025 and beyond.
Healthpeak achieved approximately $50 million of merger-related synergies during 2024, exceeding the mid-point of original 2024 synergy guidance by $10 million.
LIFE SCIENCE LEASING UPDATE
During the fourth quarter 2024, Healthpeak executed lab lease agreements totaling 652,000 square feet, bringing full year 2024 lease executions to 2.1 million square feet.
Highlights of the fourth quarter leasing activity includes:
- 130,000 square feet of renewal leasing in Torrey Pines at a blended positive 45% cash releasing spread
- 84,000 square feet in west Sorrento Mesa, including converting the previously disclosed 33,000 square foot LOI at Directors Place into a signed new lease
- New lease executions during the fourth quarter included 268,000 square feet of previously disclosed activity at the Portside and Vantage campuses in South San Francisco
Subsequent to the fourth quarter, Healthpeak converted the previously disclosed 33,000 square foot LOI at Gateway into a signed new lease.
INVESTMENT, DISPOSITIONS, AND LOAN REPAYMENT ACTIVITY
INVESTMENTS
In October 2024, Healthpeak originated a $15 million loan on a 200,000 square foot outpatient medical campus in Minneapolis, Minnesota. The interest rate on the loan is 11%. Healthpeak retains certain purchase rights on the campus.
In December 2024, Healthpeak originated a secured development loan on a 90,000 square foot outpatient medical building in Plano, Texas. The development is 100% pre-leased to an oncology affiliate of McKesson Corporation and is adjacent to the Baylor Scott & White Regional Medical Center. Total funding available to the borrower under the four-year loan is approximately $36 million with an 8% interest rate. Through January 2025, there was no balance outstanding under the loan. Healthpeak retains certain purchase rights on the development project.
In January 2025, Healthpeak originated a secured loan to provide the borrower funding for the acquisition and redevelopment of a lab building in the Torrey Pines submarket of San Diego, California. Total funding available under the four-year loan is $75 million with an 8% interest rate. Through January 2025, $28 million has been funded. Healthpeak retains certain purchase rights on the lab building.
DISPOSITIONS AND LOAN REPAYMENTS
In November 2024, Healthpeak sold three outpatient medical buildings, including two previously disclosed buildings placed under contract in July 2024, for $35 million.
In January 2025, Healthpeak received loan repayments of $63 million at a blended interest rate of 11%.
EXECUTIVE MANAGEMENT PROMOTIONS AND LEADERSHIP TRANSITIONS
EXECUTIVE MANAGEMENT PROMOTIONS
- Kelvin Moses was promoted to Executive Vice President – Investments and Portfolio Management, effective March 1, 2025. In this role, he will continue to support Healthpeak’s investments and transactions, as well as lead Healthpeak’s portfolio management platform. Mr. Moses has been with Healthpeak for seven years and served in a variety of investment, operations, and development roles. Prior to joining Healthpeak, Mr. Moses worked at Barclays in the global healthcare and real estate investment banking groups.
- Tracy Porter was promoted to Executive Vice President and General Counsel, effective March 1, 2025, succeeding Jeff Miller in that role. Ms. Porter has been with Healthpeak for 12 years, most recently as Senior Vice President and Deputy General Counsel. Prior to joining Healthpeak, Ms. Porter was a member of the real estate practice group at Latham & Watkins LLP.
LEADERSHIP TRANSITIONS
As part of Healthpeak’s long-term succession plan, Tom Klaritch, Chief Operating Officer, and Jeff Miller, General Counsel, will depart the Company on December 31, 2025. Each executive will step down from his current role on March 1, 2025, and serve in a transition and consulting role through the end of 2025.
Mark Theine will lead Healthpeak’s Outpatient Medical platform, effective March 1, 2025. Mr. Theine, Senior Vice President – Outpatient Medical, joined Healthpeak in 2024, having previously served as Executive Vice President – Asset Management at Physicians Realty Trust from the company’s IPO in 2013 until its merger with Healthpeak in 2024. In his role, Mr. Theine will lead all aspects of asset management, operations, and leasing for our Outpatient Medical segment.
“I am pleased to announce the new leadership roles for Kelvin, Tracy, and Mark, who will help drive the next stage of Healthpeak’s growth. Our thoughtful succession planning process advances new generations of leaders through a seamless transition,” said Scott Brinker, the Company’s President and Chief Executive Officer. “We would like to thank Tom and Jeff for their invaluable service to Healthpeak. Tom’s leadership of our outpatient medical platform over the last 25 years has positioned us as a leader in the outpatient sector. Jeff’s positive contributions have broadly impacted our organization over the last six years through his leadership roles in senior housing, development, and legal. Tom and Jeff have imparted a legacy of excellence that serves as a strong foundation for our new leaders.”
2025 GUIDANCE
For full year 2025, we have established the following Guidance ranges:
- Diluted earnings per common share of $0.30 – $0.36
- Diluted Nareit FFO per share of $1.81 – $1.87
- Diluted FFO as Adjusted per share of $1.81 – $1.87
- Total Merger-Combined Same-Store Cash (Adjusted) NOI growth from 3.0% – 4.0%
These estimates are based on our current view of existing market conditions, transaction timing, and other assumptions for the year ending December 31, 2025. For additional details and assumptions, please see page 12 in our corresponding Supplemental Report and the Discussion and Reconciliation of Non-GAAP Financial Measures, both of which are available in the Investor Relations section of our website at http://ir.healthpeak.com.
CONFERENCE CALL INFORMATION
Healthpeak has scheduled a conference call and webcast for Tuesday, February 4, 2025, at 8:00 a.m. Mountain Time.
The conference call can be accessed in the following ways:
- Healthpeak’s website: https://ir.healthpeak.com/news-events
- Webcast: https://events.q4inc.com/attendee/488287711. Joining via webcast is recommended for those who will not be asking questions.
- Telephone: The participant dial-in number is (800) 715-9871.
An archive of the webcast will be available on Healthpeak’s website through February 3, 2026, and a telephonic replay can be accessed through February 11, 2025, by dialing (800) 770-2030 and entering conference ID number 95156.
ABOUT HEALTHPEAK
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate focused on healthcare discovery and delivery.
|
Healthpeak Properties, Inc. Consolidated Balance Sheets In thousands, except share and per share data |
|||||||
|
|
December 31, |
|
December 31, |
||||
|
Assets |
|
|
|
||||
|
Real estate: |
|
|
|
||||
|
Buildings and improvements |
$ |
16,115,283 |
|
|
$ |
13,329,464 |
|
|
Development costs and construction in progress |
|
880,393 |
|
|
|
643,217 |
|
|
Land and improvements |
|
2,918,758 |
|
|
|
2,647,633 |
|
|
Accumulated depreciation and amortization |
|
(4,083,030 |
) |
|
|
(3,591,951 |
) |
|
Net real estate |
|
15,831,404 |
|
|
|
13,028,363 |
|
|
Loans receivable, net of reserves of $10,499 and $2,830 |
|
717,190 |
|
|
|
218,450 |
|
|
Investments in and advances to unconsolidated joint ventures |
|
936,814 |
|
|
|
782,853 |
|
|
Accounts receivable, net of allowance of $2,243 and $2,282 |
|
76,810 |
|
|
|
55,820 |
|
|
Cash and cash equivalents |
|
119,818 |
|
|
|
117,635 |
|
|
Restricted cash |
|
64,487 |
|
|
|
51,388 |
|
|
Intangible assets, net |
|
817,254 |
|
|
|
314,156 |
|
|
Assets held for sale, net |
|
7,840 |
|
|
|
117,986 |
|
|
Right-of-use asset, net |
|
424,173 |
|
|
|
240,155 |
|
|
Other assets, net |
|
942,465 |
|
|
|
772,044 |
|
|
Total assets |
$ |
19,938,255 |
|
|
$ |
15,698,850 |
|
|
|
|
|
|
||||
|
Liabilities and Equity |
|
|
|
||||
|
Bank line of credit and commercial paper |
$ |
150,000 |
|
|
$ |
720,000 |
|
|
Term loans |
|
1,646,043 |
|
|
|
496,824 |
|
|
Senior unsecured notes |
|
6,563,256 |
|
|
|
5,403,378 |
|
|
Mortgage debt |
|
356,750 |
|
|
|
256,097 |
|
|
Intangible liabilities, net |
|
191,884 |
|
|
|
127,380 |
|
|
Liabilities related to assets held for sale, net |
|
— |
|
|
|
729 |
|
|
Lease liability |
|
307,220 |
|
|
|
206,743 |
|
|
Accounts payable, accrued liabilities, and other liabilities |
|
725,342 |
|
|
|
657,196 |
|
|
Deferred revenue |
|
940,136 |
|
|
|
905,633 |
|
|
Total liabilities |
|
10,880,631 |
|
|
|
8,773,980 |
|
|
|
|
|
|
||||
|
Commitments and contingencies |
|
|
|
||||
|
|
|
|
|
||||
|
Redeemable noncontrolling interests |
|
2,610 |
|
|
|
48,828 |
|
|
|
|
|
|
||||
|
Common stock, $1.00 par value: 1,500,000,000 and 750,000,000 shares authorized; 699,485,139 and 547,156,311 shares issued and outstanding |
|
699,485 |
|
|
|
547,156 |
|
|
Additional paid-in capital |
|
12,847,252 |
|
|
|
10,405,780 |
|
|
Cumulative dividends in excess of earnings |
|
(5,174,279 |
) |
|
|
(4,621,861 |
) |
|
Accumulated other comprehensive income (loss) |
|
28,818 |
|
|
|
19,371 |
|
|
Total stockholders’ equity |
|
8,401,276 |
|
|
|
6,350,446 |
|
|
|
|
|
|
||||
|
Joint venture partners |
|
315,821 |
|
|
|
310,998 |
|
|
Non-managing member unitholders |
|
337,917 |
|
|
|
214,598 |
|
|
Total noncontrolling interests |
|
653,738 |
|
|
|
525,596 |
|
|
|
|
|
|
||||
|
Total equity |
|
9,055,014 |
|
|
|
6,876,042 |
|
|
|
|
|
|
||||
|
Total liabilities and equity |
$ |
19,938,255 |
|
|
$ |
15,698,850 |
|
|
Healthpeak Properties, Inc. Consolidated Statements of Operations In thousands, except per share data |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Revenues: |
|
|
|
|
|
||||||||||
|
Rental and related revenues |
$ |
535,131 |
|
|
$ |
412,332 |
|
|
$ |
2,087,196 |
|
|
$ |
1,631,805 |
|
|
Resident fees and services |
|
145,963 |
|
|
|
136,341 |
|
|
|
568,475 |
|
|
|
527,417 |
|
|
Interest income and other |
|
16,894 |
|
|
|
4,979 |
|
|
|
44,778 |
|
|
|
21,781 |
|
|
Total revenues |
|
697,988 |
|
|
|
553,652 |
|
|
|
2,700,449 |
|
|
|
2,181,003 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Interest expense |
|
70,508 |
|
|
|
52,784 |
|
|
|
280,430 |
|
|
|
200,331 |
|
|
Depreciation and amortization |
|
274,469 |
|
|
|
188,544 |
|
|
|
1,057,205 |
|
|
|
749,901 |
|
|
Operating |
|
277,026 |
|
|
|
224,401 |
|
|
|
1,074,861 |
|
|
|
902,060 |
|
|
General and administrative |
|
23,929 |
|
|
|
21,556 |
|
|
|
97,162 |
|
|
|
95,132 |
|
|
Transaction and merger-related costs |
|
10,572 |
|
|
|
14,417 |
|
|
|
132,685 |
|
|
|
17,515 |
|
|
Impairments and loan loss reserves (recoveries), net |
|
11,632 |
|
|
|
(5,445 |
) |
|
|
22,978 |
|
|
|
(5,601 |
) |
|
Total costs and expenses |
|
668,136 |
|
|
|
496,257 |
|
|
|
2,665,321 |
|
|
|
1,959,338 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
|
Gain (loss) on sales of real estate, net |
|
(8,929 |
) |
|
|
— |
|
|
|
178,695 |
|
|
|
86,463 |
|
|
Other income (expense), net |
|
(24,157 |
) |
|
|
2,600 |
|
|
|
59,345 |
|
|
|
6,808 |
|
|
Total other income (expense), net |
|
(33,086 |
) |
|
|
2,600 |
|
|
|
238,040 |
|
|
|
93,271 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) before income taxes and equity income (loss) from unconsolidated joint ventures |
|
(3,234 |
) |
|
|
59,995 |
|
|
|
273,168 |
|
|
|
314,936 |
|
|
Income tax benefit (expense) |
|
14,014 |
|
|
|
11,842 |
|
|
|
(4,350 |
) |
|
|
9,617 |
|
|
Equity income (loss) from unconsolidated joint ventures |
|
(108 |
) |
|
|
3,558 |
|
|
|
(1,515 |
) |
|
|
10,204 |
|
|
Net income (loss) |
|
10,672 |
|
|
|
75,395 |
|
|
|
267,303 |
|
|
|
334,757 |
|
|
Noncontrolling interests’ share in earnings |
|
(6,125 |
) |
|
|
(4,451 |
) |
|
|
(24,161 |
) |
|
|
(28,748 |
) |
|
Net income (loss) attributable to Healthpeak Properties, Inc. |
|
4,547 |
|
|
|
70,944 |
|
|
|
243,142 |
|
|
|
306,009 |
|
|
Participating securities’ share in earnings |
|
(147 |
) |
|
|
(157 |
) |
|
|
(758 |
) |
|
|
(1,725 |
) |
|
Net income (loss) applicable to common shares |
$ |
4,400 |
|
|
$ |
70,787 |
|
|
$ |
242,384 |
|
|
$ |
304,284 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.01 |
|
|
$ |
0.13 |
|
|
$ |
0.36 |
|
|
$ |
0.56 |
|
|
Diluted |
$ |
0.01 |
|
|
$ |
0.13 |
|
|
$ |
0.36 |
|
|
$ |
0.56 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
699,457 |
|
|
|
547,091 |
|
|
|
675,680 |
|
|
|
547,006 |
|
|
Diluted |
|
699,596 |
|
|
|
547,361 |
|
|
|
676,233 |
|
|
|
547,275 |
|
|
_______________________________________ |
||
| (1) |
The year ended December 31, 2024 includes a gain upon change of control related to the sale of a 65% interest in two lab buildings in San Diego, California. The gain upon change of control is included in other income (expense), net in the Consolidated Statements of Operations. |
|
| (2) |
The year ended December 31, 2024 includes non-cash income tax expense related to the sale of a 65% interest in two lab buildings in San Diego, California, partially offset by income tax benefit related to the disposition of a portfolio comprised of a land parcel and various vacant buildings on certain of our CCRC campuses. |
|
| (3) |
The three months and years ended December 31, 2024 and 2023 includes costs related to the merger, which are primarily comprised of advisory, legal, accounting, tax, post-combination severance and stock compensation expense, and other costs of combining operations with Physicians Realty Trust that were incurred during the period. These costs were partially offset by termination fee income for the three months and years ended December 31, 2024 and 2023 associated with Graphite Bio, Inc., which later merged with LENZ Therapeutics, Inc. in March 2024, for which the lease terms were modified to accelerate expiration of the lease to December 2024. Termination fee income is included in rental and related revenues on the Consolidated Statements of Operations, but is excluded from Portfolio Cash Real Estate Revenues and FFO as Adjusted. |
|
| (4) |
The three months and year ended December 31, 2024 and 2023 includes reserves and (recoveries) for expected loan losses recognized in impairments and loan loss reserves (recoveries), net in the Consolidated Statements of Operations. |
|
| (5) |
During the three months and year ended December 31, 2024, the Company incurred casualty-related charges associated with Hurricane Milton. Casualty-related charges (recoveries), net are recognized in other income (expense), net, equity income (loss) from unconsolidated joint ventures, and noncontrolling interests’ share in earnings in the Consolidated Statements of Operations. |
|
| (6) |
The three months and year ended December 31, 2024 includes the release of a valuation allowance and recognition of a corresponding income tax benefit in connection with a merger of certain taxable REIT subsidiaries. During the three months and year ended December 31, 2023, in conjunction with classifying the assets related to the Callan Ridge JV as held for sale as of December 31, 2023, we concluded it was more likely than not that we would realize the future value of certain deferred tax assets generated by the net operating losses of taxable REIT subsidiaries. Accordingly, during the three months and year ended December 31, 2023, we recognized the reversal of a portion of the associated valuation allowance and recognized a corresponding income tax benefit. |
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|
_______________________________________ |
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| (1) |
The year ended December 31, 2023 includes an $8.7 million write-off of straight-line rent receivable associated with Sorrento Therapeutics, Inc., which commenced voluntary reorganization proceedings under Chapter 11 of the U.S. Bankruptcy Code. This activity is reflected as a reduction of rental and related revenues in the Consolidated Statements of Operations. |
|
| (2) |
Beginning in the first quarter of 2025, we will report AFFO under our revised definition, which includes an adjustment for CCRC non-refundable entrance fee cash collections in excess of the related amortization. Under this revised definition, diluted AFFO applicable to common shares would be $311.9 million and $205.5 million, respectively, and diluted AFFO per common share would be $0.44 and $0.37, respectively, for the three months ended December 31, 2024 and 2023. Under this revised definition, diluted AFFO applicable to common shares would be $1.16 billion and $890.8 million, respectively, and diluted AFFO per common share would be $1.68 and $1.61, respectively, for the years ended December 31, 2024 and 2023. |
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Contacts
Andrew Johns, CFA
Senior Vice President – Investor Relations
720-428-5400
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