Five residents in two Healthpeak Properties Inc. seniors housing facilities have died as a result of the coronavirus pandemic, and there are seven properties in the company's portfolio with COVID-19 cases.
The company withdrew its previous guidance, which did not factor in impacts from the coronavirus. Healthpeak noted that it will update guidance "when the extent and timing of the outbreak becomes more clear."
Six of the properties with infections are in Healthpeak's seniors housing operating portfolio and are managed by Atria Senior Living Inc. or Sunrise Senior Living LLC, and one is a community on which Healthpeak has a mortgage loan. The company predicted more confirmed infections and deaths in its properties until the virus is brought under control nationally.
Property tours by prospective residents have begun to drop significantly and are now being conducted virtually, and seniors housing occupancy is expected to fall in the coming weeks. Healthpeak said operators are experiencing significant cost increases for staffing and supplies, including personal protective equipment.
Healthpeak said in a new presentation that it intends to accelerate the settlement of all of its existing equity forwards before the end of the first quarter, resulting in $1.06 billion of proceeds. The company expects to end the quarter with $3.3 billion of liquidity, including full borrowing capacity on its $2.5 billion unsecured revolving credit facility.
The company said it has closed on $127 million of noncore dispositions so far in 2020, but is assessing the remaining roughly $375 million of dispositions included in its guidance, since some seniors housing sales may be delayed. Roughly $480 million in acquisitions previously included in guidance are also likely to be delayed.
Construction spending in 2020 is expected to decline from previous expectations because of delays in projects resulting from slowdowns in permitting and inspections, and potentially from mandatory construction delays in some locations.