Healthpeak Properties, Inc.

Good day and welcome to the HealthPeak Properties Incorporated second quarter conference call. All participants will be in listen only mode. Should you need assistance, please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchstone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference call over to Ms. Barbara Rogers, Senior Director, Investor Relations. Ms. Rogers, the floor is yours, ma'am.

Thank you, and welcome to HealthPeak's second quarter 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 data in our filing 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 8K we furnished with the SEC today. We have reconciled all non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Reg G requirements. The exhibit is also available on our website at www.healthpeak.com. I will now turn the call over to our Chief Executive Officer, Tom Herzog.

Thank you, Barbette, and good morning, everyone. On the call with me today are Scott Brinker, our President and CIO, and Pete Scott, our CFO. Also on the line and available for the Q&A portion of the call are Tom Clerch, our Chief Development and Operating Officer, and Troy McHenry, our Chief Legal Officer and General Counsel. To summarize the second quarter, our results were generally in line with our expectations, and in some cases, better than expected. However, we are now five months into the pandemic, and there remains a great deal of uncertainty on its future penetration and duration. As such, last night we provided an update to our 2020 earnings framework, which you can find on pages 44 through 46 of our supplemental report. I'll start with our current state of play. 66% of total Q2 NOI was generated by our life science and medical office businesses. And inclusive of our small portfolio of well-covered hospitals, that total increases to 71%. All of these businesses have enjoyed strong leasing and steady rent collections. In life science, sector fundamentals are healthy as demand for drug innovation remains at the forefront. especially with respect to the global efforts to develop COVID vaccines and treatments. During the second quarter, the sector reported a record high in equity capital raised. Our year-to-date leasing is already ahead of our original full-year expectations, driven in part by the strong development pre-leasing we announced in our Boston and San Diego sub-markets. In medical office, our high-quality, primarily on-campus portfolio has continued to show consistent, favorable results. Bans and outpatient procedures have been lifted across all of our markets. Both new and renewal leasing came in above our expectations. Our lease retention ended the quarter in the low 80% range, and we had high single-digit mark-to-market rents. 11% of total Q2 NOI was generated by our CCRC portfolio, where attrition is much lower than SHOP due to the average 8- to 10-year length of stay, along with the nonrefundable entry fees in place. Our independent, assisted, and memory care CCRC occupancy and results were in line with their expectations. 9% of total Q2 NOI was generated by SHOP, which continues to experience a very tough operating environment due to COVID, combined with the inherent short length of stay. However, monthly occupancy declined more slowly and operating expenses rose less dramatically than the midpoints set forth in our previous outlook framework. And finally, 9% of total Q2 NOI was generated by senior housing triple net, which also faced a tough operating environment. but rent collections have remained stable. Moving on to our balance sheet and liquidity. Simply put, they both continue to be in great shape. And our dividend, yesterday we announced it remained at 37 cents per share, which is one penny above our Q2 AFFO. We will continue to monitor our dividend as COVID progresses. On the ESG front, we have a decade-plus history of commitment to corporate responsibility and sustainable business practices. In June, we published our ninth annual ESG report highlighting our 2019 environmental, social, and governance achievements. For the second consecutive year, we were one of only five REITs named to Corporate Responsibility Magazine's 100 Best Corporate Citizens list. We also have received Gresby's Green Star rating for eight consecutive years, as well as leadership awards from CDP, and S&P's Dow Jones Sustainability Index for seven consecutive years each. So, in summary, the majority of our portfolio is performing quite well. We've continued to take actions to improve our already strong balance sheet and have significant liquidity. Our team is working very productively from home, and we fully expect to come out the other side of this pandemic and even stronger company. With that, I'll turn it to Scott.