CVS Health and Healthpeak Properties presented fourth-quarter and full-year 2022 earnings results on Wednesday.

CVS Health

Woonsocket, RI-based CVS Health reported that total revenues for 2022 increased to $83.8 billion, up 9.5%, compared with the previous year. 

“In our retail long-term care segment, we delivered strong revenue growth despite mixed COVID-related trends and continued economic uncertainty,” said Shawn Guertin, executive vice president and chief financial officer at CVS. “Specifically, during the fourth quarter, revenue of 28.2 billion grew 4%, reflecting increased prescription and front store volume, including the impact of an elevated cough, cold, and flu season; pharmacy drug mix; and brand inflation.”

Guertin said the company anticipates another strong year of cash generation ahead. CVS Health’s $9.5 billion cash acquisition of older adult primary care provider Oak Street Health, announced Wednesday,  will be a major player in the plan. 

“Oak Street will operate as a payer-agnostic business within CVS Health, focused on improving outcomes and experiences for the Medicare population it serves. CVS Health has a strong and proven track record of helping its payer clients succeed, and we will continue to prioritize that success after this transaction,” he said. “What we saw when we looked into Oak Street’s portfolio of clinics was a remarkably consistent path to clinic profitability.”

Healthpeak Properties 

Healthpeak Properties finished 2022 “on a strong note, delivering excellent operating results,” Chief Financial Officer Peter Scott said on Wednesday’s earnings call.

For the fourth quarter, Denver-based real estate investment trust reported funds from operations as adjusted of $0.44 per share and total portfolio of same-store growth of 6.6%. For the full year, the real estate investment trust reported FFO as adjusted of $1.74 per share and total portfolio same-store growth of 5%. 

Regarding the REIT’s continuing care retirement communities, Scott said, “same-store growth for the quarter increased 15%, bringing full year growth to the midpoint of our 8% guidance.”

Healthpeak recovered 340 basis points in total occupancy in its CCRCs and “generated [NexPoint Real Estate Finance] cash collections of approximately $101 million exceeding our NREP amortization by $22 million.”

CEO, President and Director Scott Brinker said that he doesn’t expect any updates in the CCRC portfolio this year, “just given the state of the financing markets, and it’s a big portfolio.”