Denver-based Healthpeak Properties reported fourth-quarter adjusted funds from operations Tuesday of 41 cents per share, surpassing several analysts who had estimated 40 cents per share.
The real estate investment trust also announced that it is more than halfway through its plan to dispose of up to $4 billion in senior living assets — selling approximately $2.5 billion in senior housing operating portfolio and triple-net senior housing assets. The last $1.5 million also is already under purchase and sale agreements, the firm noted.
As a result, the REIT classified its triple-net leased and SHOP assets as discontinued operations as of the end of last year. Healthpeak President and Chief Investment Officer Scott Brinker said that Healthpeak could close on all of its remaining senior living deals by the end of the second quarter.
Healthpeak plans to continue to invest in a smaller portfolio of “high-quality, high-yielding” continuing care retirement communities, however, Healthpeak CEO Tom Herzog said during the firm’s fourth-quarter and full-year 2020 earnings call Wednesday.
The faster-than-expected progress on the firm’s senior housing dispositions resulted in a dilution from asset sales and forced the company to lower its 2021 guidance. It also reduced its quarterly dividend by 20%, to 30 cents per share.