Healthpeak Properties, Inc.

Good morning, and welcome to the Healthcare Properties Incorporated fourth quarter conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a 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 a touch-tone phone. To withdraw yourself from the question queue, press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Andrew Johns, Vice President, Corporate Finance and Investor Relations. Please go ahead.

Welcome to HealthPeaks' fourth quarter 2021 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 in detail in our filing to the SEC. We do not undertake a duty to update any forward-looking statements. Certain non-GAAP financial measures will be disclosed on this call. In an exhibit to the 8K we furnished to the SEC yesterday, we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with the right key requirements. The exhibit is also available on our website at healthpeak.com. I will now turn the call over to our Chief Executive Officer, Tom Herzog.

Thanks, AJ, and good morning, everyone. With me today are Scott Brinker, our President and Chief Investment Officer, and Pete Scott, our Chief Financial Officer. Also here and available for the Q&A portion of the call are Tom Clerich, our Chief Operating Officer, and Trey McHenry, our Chief Legal Officer and General Counsel. Let me start with our 2021 results. 2021 was a productive year for HealthPeak, and our business is performing very well. We completed our $4 billion senior housing disposition program and successfully reinvested the proceeds in our core life science and MLB businesses, while also reducing our leverage. Additionally, our operations came in stronger than we had expected at the outset of the year, with full year FFO six cents above our initial guidance and a beat on same store of 200 basis points. Next, the strength of our businesses. With our portfolio restructuring now behind us, We are now positioned exclusively in vital, growing, and high barrier to entry businesses. Our life science business is benefiting from many exciting scientific advancements, which is driving growth in biotech funding and drug approvals. This has created strong demand for purpose built life science real estate in the three hotbed markets of San Francisco, Boston, and San Diego, where our portfolio and future development opportunities are almost exclusively located. Our MLB business continues to be focused on on-campus properties associated with number one or number two hospitals in favorable markets and benefiting from primarily specialist practices. The stable growth business also benefits from our proprietary on-campus development program with HCA. Finally, some remarks in our development program relative to our long-term growth strategy. With consideration to the scarcity and current pricing, for well-located stabilized life science and on-campus MLB properties, our development machine has become a growing part of our growth strategy in addition to accretive acquisitions. During the last five years, we've delivered $1.4 billion of life science developments at an average yield of 8%, which compares to stabilized cap rates for these Class A assets of 4% or less. Given the huge leasing demand and tight market conditions for high-quality life science products, we continue to see tenants commit to space before steel has even come out of the ground. Our active $1.6 billion life science and MOB pipeline is projected to provide a 7% weighted average yield on cost and a 74% pre-lease, 92% excluded in our newly announced Vantage project. And we expect our embedded $10-plus billion shadow development pipeline will be a key driver of our future growth. But let me turn it over to Scott.