Executive Summary

Q1 2024 delivered diluted EPS of $0.01, Nareit FFO/share of $0.27, FFO as Adjusted/share of $0.45, and AFFO/share of $0.41; Total Merger-Combined Same-Store Cash (Adjusted) NOI grew 4.5% .
Guidance raised across all key 2024 metrics: GAAP EPS ($0.16–$0.20), FFO (Nareit) ($1.56–$1.60), FFO as Adjusted ($1.76–$1.80), AFFO ($1.53–$1.57), and SS Cash NOI growth (2.50%–4.00%); FFO as Adjusted and AFFO midpoints increased by $0.02 per share .
Strategic actions: internalization of property management in 10 markets covering 17M sq ft YTD; year-one merger synergy forecast increased by $5M to $45M; repurchased $100M of common stock at $17.11/share; net debt/Adj. EBITDAre 5.2x; $750M term loan fixed at ~4.5% .
Leasing/portfolio moves: 1.6M sq ft of Q1 lease executions (1.4M Outpatient, 155k Lab), 455k sq ft Lab LOIs, Portside campus re-leased ~175k sq ft, and asset recycling (Poway R&D portfolio $180M; two Outpatient assets $29M) .

What Went Well and What Went Wrong

What Went Well

Raised full-year guidance across GAAP EPS, FFO (Nareit), FFO as Adjusted, AFFO, and SS Cash NOI growth; synergy target lifted to $45M (+$5M) .
Company cited accelerating internalization: “We expect to internalize an additional 4 million square feet by year-end… evaluating 10-plus million square feet for internalization in 2025 and ’26… internalize more than 70% of our total footprint.” (management remarks) .
Operational momentum: Total Merger-Combined SS Cash (Adjusted) NOI +4.5% YoY; CCRC segment +26.6% SS NOI growth; Outpatient and Lab SS NOI positive; strong leasing and Lab LOIs .

What Went Wrong

GAAP profitability compressed: diluted EPS fell to $0.01 vs $0.22 YoY; Nareit FFO/share declined to $0.27 vs $0.42 YoY, reflecting merger-related costs and transaction impacts .
Elevated merger/transaction costs of $107.2M weighed on the quarter (primarily advisory/legal/accounting/tax, severance, and stock comp), alongside higher interest expense ($60.9M vs $48.0M YoY) .
Non-GAAP adjustments remained significant, including taxes associated with real estate dispositions ($11.6M) and gain upon change of control related to the Callan Ridge JV, complicating comparability to prior periods .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$556.24	$553.65	$606.56
Diluted EPS (GAAP) ($)	$0.12	$0.13	$0.01
Nareit FFO/share (Diluted) ($)	$0.46	$0.48	$0.27
FFO as Adjusted/share (Diluted) ($)	$0.45	$0.46	$0.45
AFFO/share (Diluted) ($)	$0.40	$0.36	$0.41

Segment Portfolio Cash Real Estate Revenues ($USD Millions)	Q3 2023	Q4 2023	Q1 2024
Outpatient Medical	$178.80	$177.30	$225.12
Lab	$218.85	$216.44	$207.33
CCRC	$133.81	$136.34	$138.78
Other	$20.57	$21.17	$21.48

Same-Store Cash (Adjusted) NOI Growth (%)	Q3 2023	Q4 2023	Q1 2024
Outpatient Medical	3.4%	4.3%	2.6%
Lab	3.3%	2.7%	2.7%
CCRC	32.1%	4.7%	26.6%
Total	6.0%	3.6%	4.5%

Capital Structure & Liquidity KPIs	Q3 2023	Q4 2023	Q1 2024
Net Debt ($USD Billions)	$6.56	$6.71	$8.74
Net Debt / Adjusted EBITDAre (x)	5.2x	5.2x	5.2x
Term Loan Rate (new $750M)	—	—	~4.5% (swapped)
Available Liquidity ($USD Billions)	—	—	$3.10

Note: “—” indicates metric not disclosed in cited quarter.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Diluted EPS (GAAP)	FY 2024	$0.07 – $0.13	$0.16 – $0.20	Raised
Diluted Nareit FFO/share	FY 2024	$1.54 – $1.60	$1.56 – $1.60	Raised (low end)
Diluted FFO as Adjusted/share	FY 2024	$1.73 – $1.79	$1.76 – $1.80	Raised
Diluted AFFO/share	FY 2024	$1.50 – $1.56	$1.53 – $1.57	Raised
Total Merger-Combined SS Cash (Adj.) NOI Growth	FY 2024	2.25% – 3.75%	2.50% – 4.00%	Raised
Quarterly Dividend	Q1/Q2 2024	$0.30 (declared Jan 31)	$0.30 (declared Apr 24)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Merger integration & internalization	No merger yet; operational momentum in SS NOI and leasing	Merger with Physicians Realty Trust expected to close Mar 1; $750M term loan planned at ~4.5%	Internalized property management in 10 markets (17M sq ft); plan to internalize +4M sq ft by YE and >70% footprint by 2025–26 (management)	Accelerating execution
Lab market/leasing	Trophy campus leases; Vantage 52% pre-leased; SS NOI +3.3%	Received entitlements for additional 1.3M sq ft at Vantage; Lab new/renewal leases 312k sq ft	155k sq ft Lab leases; 455k sq ft Lab LOIs; Portside redevelopment re-leased ~175k sq ft	Pipeline strengthening
Capital markets & liquidity	Net Debt/Adj. EBITDAre ~5.2x; disciplined balance sheet	Issued $750M senior unsecured notes (~5.35% blended); outlined $750M term loan at ~4.5%	Entered $750M term loan; fixed ~4.5% via swaps; $3.1B available liquidity	Rates locked, strong liquidity
Portfolio recycling & development	Cambridge rezoning; Vantage development progress	Callan Ridge JV (65%) valued at $236M; HCA program additions	Poway R&D $180M sale; two Outpatient assets $29M; seller financing repayments $69M	Active recycling/supporting growth

Management Commentary

“We expect to internalize an additional 4 million square feet by year-end… evaluating 10-plus million square feet for internalization in 2025 and ’26… internalize more than 70% of our total footprint.” (Q1 2024 earnings call) .
“The baseline is a strong balance sheet, a high-quality portfolio with 3% to 5% same-store growth…” (Q1 2024 earnings call—value proposition context) .
Company press release highlighted Q1 execution and guidance raises, including FFO as Adjusted/AFFO midpoint increases (+$0.02) and SS Cash NOI growth uplift .

Q&A Highlights

Internalization cadence: Management clarified plans to internalize ~4M sq ft in 2024 and >70% of footprint by 2025–26, reinforcing synergy capture potential .
Portfolio leasing & Lab demand: Discussion emphasized signed LOIs (455k sq ft) and re-leasing progress at Portside, improving visibility into Lab occupancy recovery .
Balance sheet strategy: Fixed the $750M term loan at ~4.5% via swaps and reiterated ample liquidity of $3.1B to navigate macro rates and fund corporate needs .
Capital allocation: Q1 repurchase of $100M of stock at $17.11/share supports per-share metrics and investor return priorities .

Estimates Context

S&P Global/Capital IQ consensus estimates were unavailable due to a mapping issue for the ticker, so we cannot provide beat/miss comparisons versus Wall Street consensus for Q1 2024 (S&P Global data not retrievable). As a proxy, management raised FY 2024 guidance ranges across GAAP EPS, FFO (Nareit), FFO as Adjusted, AFFO, and SS Cash NOI growth, indicating positive estimate revision risk on the outlook .

Key Takeaways for Investors

Guidance momentum: Broad-based FY 2024 guidance uplift (GAAP EPS, FFO, FFO as Adjusted, AFFO, SS Cash NOI), with midpoints for FFO as Adjusted/AFFO raised by $0.02/share, signaling improved forward earnings quality .
Internalization → synergy delivery: Property management internalization (17M sq ft YTD; >70% footprint targeted by 2025–26) and increased year-one synergies to $45M should support margin and cash flow traction .
Leasing and Lab pipeline: 1.6M sq ft Q1 leasing, 455k sq ft Lab LOIs, and Portside re-leasing progress underpin near-term NOI stability, even as non-GAAP adjustments obscure GAAP comparability .
Active capital recycling and fixed-rate funding: Dispositions ($180M Poway, $29M Outpatient) and a swapped $750M term loan at ~4.5% enhance financial flexibility; liquidity at $3.1B supports execution amid rate volatility .
Watch CCRC strength and Outpatient scale: CCRC SS NOI growth remained robust (+26.6%) and Outpatient integration expands scale and internalized control, balancing Lab variability .
Near-term trading lens: While GAAP EPS and Nareit FFO/share were down YoY on merger-related costs, the FFO as Adjusted/AFFO per share profile and guidance raises are likely the stock’s narrative drivers post-print .
Medium-term thesis: Integration and internalization, disciplined capital markets posture, and improving leasing across segments position the company to convert raised guidance into sustained FFO/AFFO growth .

Additional Relevant Press Releases for Q1 2024

Q1 earnings release and details (company IR): Healthpeak Reports First Quarter 2024 Results and Declares Quarterly Cash Dividend; includes guidance updates, liquidity and capital actions (also mirrored in 8‑K) .
Earnings release date and call logistics (Apr 4, 2024) .

Prior Two Quarters’ Earnings (for trend)

Q4 2023: Diluted EPS $0.13; Nareit FFO/share $0.48; FFO as Adjusted/share $0.46; AFFO/share $0.36; Total SS Cash (Adj.) NOI +3.6% .
Q3 2023: Diluted EPS $0.12; Nareit FFO/share $0.46; FFO as Adjusted/share $0.45; AFFO/share $0.40; Total SS Cash (Adj.) NOI +6.0% .

HEALTHPEAK PROPERTIES, INC. (PEAK)·Q1 2024 Earnings Summary