Core Insights - Healthpeak Properties (NYSE: DOC) is expected to see its funds from operations (FFO) move towards the upper end of its 2025 guidance range due to new and renewal leasing spreads, which will help cover dividends more comprehensively for shareholders [1] Group 1: Company Performance - The new and renewal leasing spreads for Healthpeak Properties are anticipated to positively impact its FFO, aligning it closer to the upper limit of the 2025 guidance [1] Group 2: Market Context - The equity market serves as a significant mechanism for wealth creation or destruction over the long term, with daily price fluctuations contributing to this dynamic [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Investment Rating - The report maintains a target for the TOPIX at 2,900 points for Q2 2026, with a base case EPS growth forecast of 1% for 2025 and 8% for 2026 [7][9]. Core Insights - The report suggests a strategic shift from high volatility stocks to high-dividend stocks, anticipating a cautious outlook during the April–June earnings season and an increased preference for cash flow among investors [6]. - External pressures include US tariff hikes, which have increased from 10% to 25%, creating uncertainty in trade negotiations, particularly in the auto sector [6]. - The upcoming Upper House election is expected to influence sectors such as defense, retail, real estate, and utilities, depending on the ruling coalition's performance [6]. - The Financial Services Agency (FSA) plans to revise Japan's Corporate Governance Code, which may lead to renewed interest in cash-rich stocks [6]. Summary by Sections Economic Outlook - The report anticipates a cautious economic environment with potential political shifts post-election affecting fiscal and monetary policies [6]. - The demand for infrastructure investment is expected to grow, enhancing the performance of national resilience-related sectors over the medium to long term [6]. Sector Preferences - Domestic demand-oriented sectors are favored over external demand-driven sectors, with a net overweight position in the financial sector [18][20]. - Specific sectors such as pharmaceuticals, retail, and construction materials are highlighted for their growth potential, while export-oriented sectors may face challenges [17][21]. Focus List - The focus list includes companies with a cautious view on cyclical large-scale external demand stocks and a bullish view on domestic demand growth stocks [21]. - Companies such as Kajima, Japan Tobacco, and Cosmos Pharmaceutical are rated as Overweight, indicating strong potential for returns [21].