Chief Executive Officer at Healthpeak Properties
Thanks A.J. and good morning everyone. With me today are Scott Brinker, our President and Chief Investment Officer; and Pete Scott, our Chief Financial Officer. Also here available for the Q&A portion of the call are Tom Klaritch, our Chief Operating Officer; and Troy McHenry, our Chief Legal Officer and General Counsel.
First a few highlights from the quarter. Our operating results were ahead of our initial expectations. We delivered 500,000 square feet of new development including three new 100% leased Class A Life Science buildings, represent an investment of $262 million, along with three HCA on-campus MOBs represented an investment of $68 million.
Leasing momentum remains strong across our Life Science and MOB businesses and CCRC entry fees had an strong quarter with cash sales volumes up 42% year-over-year. We continue to advance a number of growth initiatives, including future developments, densifications and entitlements in our three core life science markets and in our HCA development pipeline.
As for our current competitive positioning, starting with our life science business we're focused almost exclusively on large campuses in Class A markets and submarkets, providing us with depth and competitive advantage versus new life science entrants and owners of conversion of one-off buildings.
While life science new supply has increased and public biotech markets have been choppy, occupancy and absorption within our portfolio has remained strong and rate has continued to grow. NIH funding is at an all-time high, and venture capital continues to support biotech growth. We believe new technologies and scientific advancements will continue to drive strong long-term demand for purpose-built life science space.
Today we estimate the mark-to-market opportunity within our life science portfolio is roughly 25%, supporting our organic rent growth over time. Our MOBs are very well-positioned and located primarily on campus with number one or number two hospitals in their respective markets with high concentrations of specialist physicians.
New competition of on-campus properties is constrained as each project requires an invitation from a hospital or healthcare system.
The majority of our MOB growth is currently through our HCA development program. CCRCs are benefiting from strong demand and support of housing values with almost no new competition and CCRCs require eight years to 10 years from predevelopment through stabilization, and our portfolio's replacement costs would be at least three times our cost basis. Additionally, the yield for our irreplaceable CCRC portfolio is incredibly strong on a risk-adjusted basis.
Turning to the impact of higher inflation on our development program. We estimate that construction costs were up 10% to 20% over the last year, depending on the type of building, location and other factors, and land is up significantly more than that.
Fortunately, we have GMAX contracts in place on our entire $1.3 billion of active development projects. This pipeline is fully funded within our plan and is already 71% pre-leased, and we are seeing very strong interest in the remaining available space.
With the rapid rise in land values, the value of our sizable land and densification opportunities has increased significantly. As a reminder, we have roughly $11 billion of embedded future development opportunities over the next 10 years to 15 years.
Going forward, we would expect higher land and construction costs to dampen new supply as certain life science projects being contemplated a new entrants will no longer pencil, but we'll see how that plays out.
Turning to our balance sheet. Our current net debt to EBITDA is 5.1 times, and we $2 billion of liquidity. We have no bond maturities until 2025 and our floating rate debt is at 17%, in line with our long-term target of about 15%.
Although higher short-term rates will weigh a bit on our near-term earnings, we believe our percentage of fixed floating debt provides appropriate match funding to our portfolio and also lower average cost through the cycles. Given we are well below our net debt-to-EBITDA target of mid to high-5s, we have plenty of dry powder.
Finally, board changes we announced yesterday. Last week, Kathy Sandstrom was appointed by the Board as Independent Vice Chair and Chair of the Nominating and Corporate Governance Committee. And Kathy's new role as Vice Chair, she worked close with Brian Cartwright, our Chairman, on various Board matters. And in her role as Chairman of Nominated and Corporate Governance Committee, Kathy will assist in planning for future board leadership roles and succession.
As many of you know, Kathy spent two decades at Heitman ultimately running a number of domestic and international businesses in addition to leadership of the REIT Investment Team.
With that, let me turn it to Scott.