Financial Data and Key Metrics Changes - Healthpeak Properties reported adjusted FFO of $0.45 per share and AFFO of $0.41 per share for Q3 2024, with total portfolio same-store growth of 4.1% [9][10] - The company increased its FFO as adjusted guidance by $0.01 to a range of $1.79 to $1.81 and AFFO guidance by $0.01 to a range of $1.56 to $1.58 [13] Business Line Data and Key Metrics Changes - The lab business signed over 700,000 square feet of leases since July 1, with positive 10% cash re-leasing spreads in Q3 [5][9] - Outpatient medical business reported same-store growth of 3.4%, with a strong demand for cost-effective outpatient care [11][45] - Continuing Care Retirement Communities (CCRC) reported same-store growth of 14.2%, driven by occupancy and rate growth [11] Market Data and Key Metrics Changes - Employment in the life science sector increased by 4% over the past 18 months, with venture capital fundraising on pace for an all-time high in 2024 [6] - The company noted that South San Francisco remains its strongest market, with significant leasing activity [5] Company Strategy and Development Direction - The company is focusing on four levers for future earnings growth: merger synergies, leasing momentum in the lab business, outpatient medical business, and capital allocation [4][8] - Healthpeak is looking to allocate capital to life sciences again through structured investments, with a pipeline of new outpatient development projects [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture demand in the life science sector, citing strong tenant relationships and a robust pipeline [5][6] - The company anticipates continued growth in earnings per share, driven by strategic initiatives and favorable market conditions [8][9] Other Important Information - The company ended the quarter with a net debt-to-EBITDA ratio of 5.1 times and $3 billion in liquidity, indicating a strong balance sheet [12] - Healthpeak plans to publish an investor presentation in early November focusing on competitive positioning and growth drivers [13] Q&A Session Summary Question: Can you quantify the leasing at Gateway, Vantage, Portside? - The total square footage for new leases at these locations is around 340,000 square feet, with an increase of approximately 240,000 square feet in net absorption [15] Question: What are the broader trends in the lab market? - There has been good funding in the lab market, with an increase in IPOs and venture capital fundraising, which is expected to drive leasing demand [18] Question: What opportunities are seen in structured investments? - The company is looking at structured investments to provide immediate accretion and time to lease up buildings, with a potential allocation of several hundred million dollars [30][31] Question: How much of the leasing is from existing tenants? - About 71% of the leasing activity in the quarter came from existing tenants, indicating strong demand across the portfolio [32] Question: What are the expectations for the lab portfolio development pipeline? - The company controls nearly 5 million square feet of potential life science development but does not expect to start new projects in the near future due to tight economics [66]

Healthpeak Properties, Inc. (DOC) reported third-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income (NOI) was witnessed across the portfolio. However, higher interest ...

For the quarter ended September 2024, Healthpeak (DOC) reported revenue of $700.4 million, up 25.9% over the same period last year. EPS came in at $0.45, compared to $0.12 in the year-ago quarter.The reported revenue represents a surprise of +1.66% over the Zacks Consensus Estimate of $688.98 million. With the consensus EPS estimate being $0.44, the EPS surprise was +2.27%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Healthpeak (DOC) came out with quarterly funds from operations (FFO) of $0.45 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to FFO of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.27%. A quarter ago, it was expected that this health care real estate investment trust would post FFO of $0.44 per share when it actually produced FFO of $0.45, delivering a surprise of 2.27%.Over the last fou ...

Healthpeak Properties, Inc. (DOC) is slated to report third-quarter 2024 results on Oct. 24 after market close. While the quarterly results are expected to reflect year-over-year growth in revenues, funds from operations (FFO) per share might exhibit a decline.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, this healthcare real estate investment trust (REIT) posted an FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by 2.27%. ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DOC, O, ADC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financia ...

MarsBars Recency bias is a cognitive bias that favors recent events over historical ones. This phenomenon appears in many aspects of life, including stock valuations and how they're interpreted by investors. For example, REITs became very cheap in the 2022-2023 timeframe, and only this year did they start climbing up. As such, some names may appear to be pricey when comparing them against a 1-2 year timeframe, but that would mean investors are ignoring the fact that many REITs are still rather cheap compare ...

Core Insights - The article discusses a strategy to create a diversified 10-stock REIT portfolio aimed at retirement, focusing on REITs trading at a discount across various property sectors [1] Group 1: Selected REITs - The first three REITs highlighted for the portfolio are Sun Communities (SUI), Crown Castle (CCI), and VICI Properties (VICI), which are diversified across manufactured housing, cell towers, and gaming sectors [1] - The next three REITs to be included will focus on industrial, healthcare, and net lease sectors to further enhance diversification and reduce portfolio volatility [1] Group 2: Rexford Industrial (REXR) - REXR owns 422 properties in Southern California, which has the lowest industrial vacancy rate at 3.9% compared to the national average of 6.1% [2] - The diversified portfolio includes warehousing/transportation (31%), wholesale trade (23%), manufacturing (23%), and other sectors [2] - In Q2-24, REXR reported FFO of $0.60 per share, an 11% year-over-year growth, with same-property NOI growth of 9.1% [3] - The company has $229 million of incremental cash NOI growth expected over the next three years [3] - REXR has a net debt to EBITDA ratio of 4.6x and nearly $2 billion in total liquidity [3] - The stock trades at $50.92 with a P/AFFO multiple of 27.7x, and a dividend yield of 3.3% [3] Group 3: Healthpeak Properties (DOC) - DOC specializes in healthcare real estate with a market cap of $15.4 billion, focusing on life science labs, outpatient medical, and continuing care retirement communities [4] - The lab properties segment accounts for 51.3% of adjusted NOI, while outpatient medical makes up 37.6% [4] - In Q2-24, DOC reported FFO of $0.45 per share and increased its FFO guidance range to $1.77-$1.81 [4] - The stock trades at $22.28 with a P/AFFO multiple of 14.4x and a dividend yield of 5.4% [4] Group 4: Realty Income (O) - O is a net lease REIT with over 15,500 properties across the U.S. and Europe, benefiting from scale advantages in M&A and bulk transactions [6][7] - The company has a net debt to annualized Pro Forma Adj EBITDA of 5.3x and a fixed charge coverage ratio of 4.6x [7] - In Q2-24, O reiterated full-year investments at $3 billion and an AFFO per share guidance of $4.15 to $4.21 [7] - The stock trades at $62.11 with a P/AFFO multiple of 15.1x and a dividend yield of 5.1% [7] Group 5: Summary of REITs - A summary table of the six REITs includes their price, P/AFFO, normal P/AFFO, variance, and dividend yield, indicating that all selected REITs are trading below their normal P/AFFO ranges [8] - The average P/AFFO across the selected REITs is 18.2, with an average dividend yield of 4.5% [8]

Healthpeak Properties, Inc. (DOC) is well-poised to benefit from its diversified and top-quality healthcare real estate assets in the high barrier-to-entry markets of the United States. Solid demand for lab assets is likely to drive its lab portfolio's growth. Its continuing care retirement community (CCRC) portfolio is poised to gain from the rise in senior citizens' healthcare expenditure. A healthy balance sheet position augurs well. Shares of this Zacks Rank #2 (Buy) company have rallied 36.7% over the ...

Healthpeak (DOC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The power of ...