First-quarter leads to Healthpeak Properties’ persevering with care retirement neighborhood phase “exceeded our expectations,” the actual property funding belief’s president and chief funding officer, Scott Brinker, stated Wednesday throughout the Denver-based firm’s first-quarter earnings name.
Occupancy was up, in response to a supplemental report launched along with the earnings name. It was 80.9% within the first quarter of 2022 in contrast with 79% within the fourth quarter of 2021 and 78.7% within the first quarter of 2021. By sector, first-quarter 2022 occupancy was 80.8% in unbiased dwelling/assisted dwelling/reminiscence care and 81.3% in expert nursing.
“Ahead-looking indicators, together with leads and excursions, exceed 2019 ranges and are trending favorably,” Brinker stated, including that entry price money receipts totaled $21 million throughout the quarter, exceeding the amortization quantity Healthpeak acknowledged in earnings by $2 million.
“That hole has now occurred in 4 straight quarters, and we count on it to proceed, which is a constructive signal for future earnings progress,” he stated.
CCRC entry charges had a powerful quarter, CEO Tom Herzog stated, with money gross sales volumes up 42% yr over yr.
The communities, Herzog stated, “are benefiting from sturdy demand and supportive housing values with nearly no new competitors.”
“CCRCs require 8 years to 10 years from pre-development by stabilization, and our portfolio’s substitute value can be at the very least thrice our value foundation,” he stated. “Moreover, the yield for our irreplaceable CCRC portfolio is extremely sturdy on a risk-adjusted foundation.”
The REIT continues to have sturdy pricing energy with little or no discounting, Brinker stated.
“Our common entry price sale worth elevated 18% yr over yr, and RevPOR [revenue per occupied room] elevated practically 5% yr over yr,” Brinker stated. Healthpeak reported that RevPOR was $7,190 within the first quarter, up from $6,770 within the fourth quarter of 2021.
As a result of labor challenges stay, nevertheless, the REIT is being conservative with its monetary expectations for the phase, Brinker stated.
As of March 31, CCRCs account for 10.9% of Healthpeak’s portfolio earnings in contrast with its different two enterprise segments, life science (47.4%) and medical workplace buildings (38.2%).
The 15 CCRCs in Healthpeak’s portfolio have a median age of 31 years. Life Care Companies operates 13 of the properties, and Dawn Senior Dwelling operates the opposite two. The highest three main markets by which it operates are Tampa, FL, Philadelphia and Houston.
Healthpeak reported that its funding within the portfolio is roughly $2.3 billion and that web working earnings from the portfolio is roughly $31 million. The REIT at present has not publicized plans for any acquisitions, growth or redevelopment in its CCRC enterprise.