This case study was published in the 2022 REIT Industry ESG Report, which details the REIT and publicly traded real estate industry's environmental, social, and governance (ESG) performance and features 32 case studies showcasing REIT leadership and ESG innovation from a variety of sectors. The report serves as a practical tool for shareholders and stakeholders to assess the scale and impact of the REIT industry's ESG commitments and initiatives. Applicable footnotes and/or citations for this case study are available in the full report.
Enhancing Sustainability Through Green Bond Financing
Healthpeak Properties, Inc. is committed to advancing the scope of its environmental initiatives by pursuing green financing transactions.
In July 2021, Healthpeak issued its inaugural green bond offering of $450 million 1.35% senior unsecured notes due in 2027. In connection with this issuance, Healthpeak developed a Green Financing Framework that provides the structure to evaluate eligible projects, determine allocations of green bond proceeds, and report the use of proceeds. Allocation of funds for eligible projects are determined following an evaluation from members of Healthpeak’s Green Finance Committee, a cross-functional team comprised of finance, legal, ESG, and capital asset management leaders. Consistent with its commitment to provide transparent disclosure, Healthpeak will publish reports annually to reflect how green bond proceeds are allocated.
The green bond proceeds will help to finance and/or refinance new or existing eligible green projects, including allocating funding to green-certified buildings and projects relating to energy efficiency, renewable energy, waste management, sustainable water and wastewater management, and clean transportation. For instance, net proceeds from Healthpeak’s inaugural green bond helped to finance the acquisition of Cambridge Discovery Park, a life science research and office development in Cambridge, Massachusetts. The building, which Healthpeak acquired in December 2020, is LEED Gold Certified and qualifies as an eligible green project under Healthpeak’s Green Financing Framework.
“Our successful green bond issuances help support our ESG strategy to own resilient buildings, minimize our carbon footprint, reduce operating costs, and deliver value to our stakeholders.”
-Tom Klaritch, Chief Operating Officer and Chair of the ESG Committee, Healthpeak Properties, Inc.
Following the success of its inaugural green bond, Healthpeak issued its second green bond in November 2021, offering $500 million 2.125% senior unsecured notes due in 2028. The company plans to allocate the net proceeds to several potential eligible green projects, including LEED Gold Certified buildings it recently acquired or developed.
The successful offerings of both series of green bonds is a significant accomplishment for Healthpeak in furthering its ESG strategy to continue to mitigate its environmental impact, reduce operating costs, and deliver value for its stakeholders. With the proceeds from the green bonds, Healthpeak will be able to advance building performance and sustainability, including through projects that help reduce greenhouse gas (GHG) emissions and energy usage.
Healthpeak Properties, Inc. is a fully integrated REIT and S&P 500 company that owns and develops high-quality real estate in the three private-pay health care asset classes of life science, medical office, and continuing care retirement communities.