Healthpeak Properties' Stock Rises 31% in 6 Months: Here's How

Core Viewpoint - Healthpeak Properties, Inc. has experienced a significant stock price increase of 31% over the past six months, outperforming the industry growth of 9.5% [1] Company Performance - The company reported second-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, exceeding the Zacks Consensus Estimate by one cent, driven by better-than-expected revenues and growth in same-store cash net operating income [3] - Healthpeak's continuing care retirement community (CCRC) portfolio is benefiting from rising healthcare expenditures among senior citizens, with occupancy in this portfolio reaching 85.4%, an increase of 20 basis points sequentially [5] Market Position and Strategy - Healthpeak is strategically positioned in high barrier-to-entry markets in the U.S. with a diversified portfolio of healthcare real estate assets, including lab and outpatient medical facilities [2][6] - The company is focusing on portfolio repositioning by reallocating capital from non-core assets to enhance its lab and outpatient medical asset holdings [6] Industry Trends - Increasing life expectancy and growth in biopharma drug development are driving demand for lab real estate, with expectations of higher healthcare spending by research institutes due to advancements in artificial intelligence and machine learning [4] - The anticipated rise in the senior citizen population will further increase healthcare expenditures, benefiting Healthpeak's CCRC portfolio [5] Financial Health - Healthpeak maintains a robust balance sheet, exiting the second quarter of 2024 with approximately $3.08 billion in liquidity and a net debt-to-adjusted EBITDAre ratio of 5.2X, supported by favorable long-term credit ratings [8]