HEALTHPEAK PROPERTIES, INC. (DOC)

Healthpeak Properties, Inc. is an S&P 500 self-administered REIT, originally founded in 1985 and organized as a Maryland corporation, that acquires, develops, owns, leases, and manages healthcare real estate across the United States. Headquartered in Denver, Colorado, with additional offices in California, Tennessee, and Massachusetts, the company refocused its strategy in 2021 after divesting its senior housing triple-net and senior housing operating property (SHOP) portfolios, both classified as discontinued operations, to concentrate on three core asset classes: life science, medical office, and continuing care retirement community (CCRC) real estate. As of December 31, 2022, Healthpeak held interests in 480 properties, including 149 life science properties (50% of Total Portfolio Adjusted NOI), 297 medical office properties including nine hospitals (39%), and 15 CCRC properties operated through RIDEA structures (9%), plus other non-reportable investments (2%) including loans receivable, marketable debt securities, and a joint venture (SWF SH JV) owning 19 senior housing assets.

Life science properties, concentrated in San Francisco, San Diego, and Boston, are largely triple-net leased (92%) to biotechnology, pharmaceutical, and research tenants, with Amgen as a notable tenant. Medical office buildings, 65% triple-net leased, are predominantly located on or near hospital campuses (87%) and affiliated with hospital systems (98%), with HCA Healthcare as a major tenant. CCRCs, operated under RIDEA structures via third-party manager-operators, provide a continuum of care including independent living, assisted living, memory care, and skilled nursing, primarily funded by private pay sources rather than government reimbursement.

The company's strategy rests on four pillars: high-quality real estate in desirable, purposely selected private-pay asset classes; a strong investment-grade balance sheet with staggered, long-term fixed-rate debt; partnerships with leading pharmaceutical, biotechnology, and healthcare operators; and a platform emphasizing talent and operational efficiency. Growth is pursued through internal strategies (tenant relationship management, lease renewals, and re-tenanting) and external strategies (acquisitions, development, and redevelopment), financed through operating cash flow, asset sales, credit facilities, debt issuances, and equity offerings, consistent with REIT distribution requirements. The company operates in a highly competitive and heavily regulated environment, with tenants and operators subject to extensive healthcare laws covering licensure, fraud and abuse, privacy (HIPAA), reimbursement programs (Medicare/Medicaid), certificate of need requirements, entrance fee regulations for CCRCs, ADA compliance, and environmental laws.

In February 2023, Healthpeak announced a corporate reorganization into an UPREIT structure via a merger agreement with New Healthpeak, Inc. and Healthpeak Merger Sub, Inc., after which the company will convert to a Maryland limited liability company (Healthpeak OP, LLC), with New Healthpeak becoming the renamed parent entity; the transaction does not require stockholder approval and will not alter the company's consolidated assets, liabilities, or business operations. The company also maintains various insurance programs and has established ESG initiatives overseen by its Board of Directors, reporting a 3.4% reduction in Scope 1 and 2 greenhouse gas emissions in 2021 and obtaining new LEED and ENERGY STAR certifications in 2022.