In response to COVID-19 protocols, sheltering in place and reduced in-person tours, the rate of move-ins within Healthpeak Properties’ senior housing and continuing care retirement community portfolio declined by 41% since February and 50% in the past year. That’s according to an investor presentation released Tuesday about the ongoing impact of COVID-19 on the firm.
The Irvine, CA-based real estate investment trust also reported that 22 of its 222 senior living communities have confirmed coronavirus cases, and 11 of those communities have experienced resident deaths.
Healthpeak’s senior housing operating portfolio accounts for 15% of the company’s pro forma portfolio income, CCRCs account for 12%, and triple-net leased properties account for 7%; life sciences make up 31% of its pro forma portfolio income, medical office buildings 29%, and hospitals 6%.
The firm also provided additional details on pandemic-related cost increases. Personal protective equipment, which historically accounted for about 2% of total costs, could increase to up to five times that amount, the firm noted. Higher staffing demands also are driving up operational costs.
“Based on our daily discussions, our operators are paying a premium for labor in many markets, particularly in communities that have been impacted by COVID-19,” the firm said in its presentation. “We expect that labor costs, which historically accounted for approximately 60% of total costs, may increase by as much as 15% overall during the pandemic.”
