Healthpeak Properties, Inc. (PEAK) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 28, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Healthpeak Properties, Incorporated Second Quarter Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today’s presentation there will be an opportunity to ask questions. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President of Investor Relations. Please go ahead.

Andrew Johns

Welcome to Healthpeak's second quarter 2023 financial results conference call. Today's conference call will contain certain forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, our forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations. A discussion of risks and risk factors is included in our press release and detailed in our filings with the SEC. We do not undertake a duty to update any forward-looking statements. Certain non-GAAP financial measures will be discussed on this call. In an exhibit of the 8-K furnished with the SEC yesterday, we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. The exhibit is also available on our website at healthpeak.com. I will turn the call over to our President and Chief Executive Officer, Scott Brinker.

Scott M. Brinker

Thanks, Andrew. Good morning and welcome to Healthpeak’s second quarter earnings call. Joining me today for prepared remarks is Pete Scott, our CFO and our senior team is here for Q&A. Last evening, we increased earnings guidance and reported 4.8% blended same store growth. The balance sheet remains in great shape. Through streamlining and automation Our G&A for 2023 is expected to be 6% below our original 2022 guidance. We're operating in a volatile macro-environment where we have a strong handle on the things we can control.

Fundamental driver of demand for our real estate is the desire for improved health, which is only growing. Equally important, we benefit from the impact of technology across our playing field of medical discovery and delivery. For example, Progressive Health Systems now have 10 plus outpatient locations for every one hospital, with a strategic plan to grow that ratio to 20 plus. The hospital remains the epicenter, but much of the growth as outpatient is made possible by technology. The shift in delivery aligns with our strategy to capture the outpatient real estate needs of leading health systems. And with tighter profit margins because of the cost of labor, health systems will increasingly seek knowledgeable third party capital like Healthpeak to expand their footprint.