Calko Medical Building Brooklyn, NY Earnings Release and Supplemental Report First Quarter 2025 ___________________________________________________________________ To learn more about Healthpeak's commitment to responsible business and view our most recent Corporate Impact Report, please visit www.healthpeak.com/corporate-impact. Return to TOC 3 – Net income of $0.06 per share, Nareit FFO of $0.45 per share, FFO as Adjusted of $0.46 per share, AFFO of $0.43 per share, and Total Same-Store Portfolio Cash (Ad ...

Core Viewpoint - Healthpeak Properties, Inc. reported first-quarter 2025 funds from operations (FFO) as adjusted per share of 46 cents, meeting expectations and showing a slight increase from 45 cents in the prior year, driven by better-than-anticipated revenues despite higher interest expenses [1][2]. Financial Performance - The company generated revenues of $702.9 million, exceeding the Zacks Consensus Estimate of $691.9 million, representing a year-over-year increase of 15.9% [2]. - Healthpeak reported a 7% year-over-year growth in total merger-combined same-store cash (adjusted) net operating income (NOI) [3]. - The outpatient medical and lab segments experienced year-over-year growth of 5% and 7.7%, respectively, while the Continuing Care Retirement Communities (CCRC) segment reported a growth of 15.9% [3]. Lease Activity - In the reported quarter, Healthpeak executed lab new and renewal leases totaling 276,000 square feet, achieving a retention rate of 88% and +5% cash-releasing spreads on renewals [4]. - For the outpatient medical portfolio, new and renewal leases totaled 973,000 square feet, with a retention rate of 86% and +4% cash-releasing spreads on renewals [4]. Balance Sheet - As of March 31, 2025, Healthpeak had cash and cash equivalents of $70.6 million, down from $119.8 million at the end of 2024, with a net debt to adjusted EBITDAre ratio of 5.2X [5]. - The company repurchased 5.1 million shares at a weighted average price of $18.50, totaling $94 million, from the beginning of the year through April 24 [5]. 2025 Outlook - Healthpeak reaffirmed its guidance for 2025, expecting FFO as adjusted per share to be between $1.81 and $1.87, with the Zacks Consensus Estimate at $1.85 [6]. - The company anticipates total merger-combined same-store cash (adjusted) NOI growth in the range of 3-4% for the year [6].

Core Insights - Healthpeak reported revenue of $702.89 million for the quarter ended March 2025, reflecting a year-over-year increase of 15.9% and a surprise of +0.98% over the Zacks Consensus Estimate of $696.06 million [1] - The company's EPS for the quarter was $0.46, which is a significant increase from $0.01 in the same quarter last year, aligning with the consensus EPS estimate [1] Revenue Breakdown - Resident fees and services generated $148.93 million, slightly above the average estimate of $147.18 million from three analysts [4] - Rental and related revenues amounted to $538.14 million, exceeding the average estimate of $527.49 million from three analysts, representing a year-over-year change of +16.5% [4] - Interest income and other revenues were reported at $15.82 million, below the estimated $16.97 million, but showed a substantial year-over-year increase of +175.1% [4] Stock Performance - Healthpeak's shares have returned -7.3% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Healthpeak reported quarterly funds from operations (FFO) of $0.46 per share, matching the Zacks Consensus Estimate and showing an increase from $0.45 per share a year ago [1] - The company achieved revenues of $702.89 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.98% and up from $606.56 million year-over-year [2] - Over the last four quarters, Healthpeak has surpassed consensus FFO estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] - Healthpeak shares have declined approximately 7.2% year-to-date, compared to a decline of 8.6% for the S&P 500 [3] - The current consensus FFO estimate for the upcoming quarter is $0.46 on revenues of $696.26 million, and for the current fiscal year, it is $1.85 on revenues of $2.8 billion [7] 分组3 - The estimate revisions trend for Healthpeak is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - The REIT and Equity Trust - Other industry is currently in the bottom 40% of Zacks industries, which may impact stock performance [8]

Core Viewpoint - Healthpeak is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year increase of 2.2%, with revenues projected at $694.72 million, up 14.5% from the previous year [1]. Group 1: Earnings Estimates - Analysts have maintained the consensus EPS estimate for the upcoming quarter over the last 30 days, indicating stability in their assessments [1]. - The projected 'Revenues- Rental and related revenues' is expected to reach $527.49 million, showing a year-over-year increase of 14.2% [4]. - 'Revenues- Interest income and other' is anticipated to be $16.97 million, representing a significant year-over-year increase of 195.1% [4]. Group 2: Depreciation and Amortization - Analysts estimate 'Depreciation and amortization' to be $274.46 million, compared to $219.22 million reported in the same quarter last year [5]. Group 3: Stock Performance - Over the past month, Healthpeak shares have decreased by 6.4%, while the Zacks S&P 500 composite has declined by 5.6% [5]. - Healthpeak currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5].

Group 1 - The S&P 500 has experienced a decline of nearly 9% since reaching an all-time high on February 19th, indicating a return of market volatility [2] - Not all stocks are affected equally by market fluctuations, with 'Magnificent 7' stocks showing significant changes in share price [2] Group 2 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1]

Industry Overview - Healthcare is a consistently in-demand industry, making it a preferred choice for long-term investors, as healthcare stocks tend to outperform inflation approximately 50% of the time during volatile periods [1] Investment Opportunities in Healthcare REITs - Healthcare REITs are attractive for investors seeking to enhance their portfolios while mitigating inflation effects, as they are required to pay dividends, making them valuable income-generating assets [2] - Welltower Inc. (NYSE: WELL) has a market capitalization exceeding $96 billion and offers a dividend yield of 1.78%, although it is speculated to be slightly overvalued [3][4] - Healthpeak Properties (NYSE: DOC) has a 6.04% dividend yield and has diversified its holdings beyond senior housing to include laboratory and outpatient medical care real estate, with a predicted 20% upside in the next year [6][7] - Omega Healthcare Investors (NYSE: OHI) manages over $10 billion in properties, including more than 1,000 facilities across the U.S. and U.K., and offers a dividend yield of 7.29% with a potential upside of 13.38% [10][11] - LTC Properties (NYSE: LTC) focuses on senior housing and skilled nursing properties, with a dividend yield of 6.55% and a Buy rating from analysts, anticipating a 13.87% upside [12][14]

Core Viewpoint - Healthpeak Properties, Inc. reported a fourth-quarter 2024 FFO per share of 46 cents, slightly exceeding expectations, with year-over-year performance remaining stable [1][3]. Financial Performance - The company generated revenues of $698 million, surpassing the Zacks Consensus Estimate of $694 million, marking a 26.1% increase year over year [3]. - Full-year revenues reached $2.70 billion, reflecting a 23.8% growth from the previous year [3]. - The adjusted FFO for 2024 was $1.81 per share, consistent with the Zacks Consensus Estimate, and showed a 1.7% improvement year over year [3]. Operational Highlights - Healthpeak experienced a 5.4% year-over-year growth in total merger-combined same-store cash (adjusted) NOI during the fourth quarter [4]. - The outpatient medical and lab segments reported year-over-year NOI growth of 3.1% and 4.9%, respectively, while the CCRC segment saw a significant increase of 22.3% [4]. - The company executed new and renewal leases totaling 652,000 square feet for lab space and 879,000 square feet for the outpatient medical portfolio [5]. Cost and Expenses - Interest expenses rose by 33.6% year over year to $70.5 million, impacting overall financial results [5]. Balance Sheet - As of December 31, 2024, Healthpeak had cash and cash equivalents of $119.8 million, down from $180.4 million at the end of the previous quarter [6]. - The net debt to adjusted EBITDAre ratio stood at 5.2X [6]. Dividend Information - The board declared a quarterly cash dividend of 30.5 cents per common share, representing a 1.7% increase from the prior quarter, payable on February 26, 2025 [7]. 2025 Guidance - The company anticipates FFO as adjusted per share to range between $1.81 and $1.87, aligning with the Zacks Consensus Estimate of $1.86 [8]. - Expected growth for total merger-combined same-store cash (adjusted) NOI is projected to be between 3.0% and 4.0% [8].

Core Insights - Healthpeak Properties reported mixed earnings for Q4 2024, with net income per share of $0.01 missing analyst expectations, while revenue of $698 million exceeded estimates [2][3][8] - The company achieved a year-over-year revenue growth of 26%, driven by strategic mergers and strong leasing metrics [7][8] Financial Performance - Net income per share decreased by 92% year-over-year from $0.13 to $0.01 [4] - Nareit funds from operations (FFO) fell 8.3% year-over-year to $0.44 per share [4][8] - Revenue for Q4 2024 was $698 million, compared to $554 million in Q4 2023 [4] Business Overview and Strategy - Healthpeak Properties focuses on healthcare real estate, including outpatient medical facilities, senior housing, and life science properties, with a portfolio of over 278 properties across 32 states [5] - The company has a leasing occupancy rate of 94% and utilizes triple-net leases to ensure stable cash flow [5] - A recent merger with Physicians Realty Trust has expanded Healthpeak's property portfolio and operational scale, aligning with trends favoring outpatient services [6] Operational Highlights - In Q4 2024, Healthpeak achieved $50 million in merger synergies, exceeding initial expectations [7] - The company leased over 652,000 square feet of lab space, indicating strong market demand [7] Dividend and Shareholder Value - Healthpeak announced a 1.7% increase in quarterly dividends to $0.305 per share and plans to transition to a monthly dividend structure starting April 2025 [9] Future Outlook - For 2025, Healthpeak projects diluted EPS between $0.30 and $0.36, with Nareit FFO per share expected to range from $1.81 to $1.87, indicating a stable outlook [13] - Management anticipates same-store cash NOI growth between 3% and 4%, focusing on outpatient facilities to drive positive results [14]

Core Viewpoint - Healthpeak Properties, Inc. is positioned for growth due to strong demand for lab assets and increasing healthcare expenditure among senior citizens, although it faces competition and high debt levels [1][7][9]. Group 1: Growth Drivers - The demand for lab real estate is bolstered by rising life expectancy and biopharma drug development opportunities, with a 2.8% year-over-year growth in the lab portfolio's same-store cash net operating income in Q3 2024 [3]. - The CCRC portfolio, which includes independent living, assisted living, and skilled nursing units, has significant upside potential due to the expected increase in the senior citizen population, with an occupancy rate of 85.2% in Q3 2024 [4]. - Healthpeak's liquidity position is strong, with approximately $3.18 billion available and a net debt-to-adjusted EBITDAre ratio of 5.1x, allowing for favorable access to capital markets [5]. Group 2: Financial Performance - Healthpeak's shares have increased by 9% over the past year, outperforming the industry, which saw a decline of 0.4%, with analysts revising the 2024 funds from operations (FFO) per share to $1.81 [6]. - The company maintains favorable long-term credit ratings of Baa1 (Stable) from Moody's and BBB+ (Stable) from S&P Global as of September 30, 2024, facilitating access to debt and equity markets [5]. Group 3: Challenges - Healthpeak faces significant competition in the healthcare services market, which may limit its ability to raise rents and impact revenue and profitability [7]. - The company is burdened with substantial debt, approximately $8.58 billion as of September 30, 2024, and operates in a high-interest-rate environment that increases borrowing costs [9].