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What's in the Cards for Healthpeak (DOC) This Earnings Season?
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Healthpeak Properties, Inc. (DOC - Free Report) is slated to report first-quarter 2024 results on Apr 25 after market close. The quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted an FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by 2.22%. Results reflected better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) net operating income was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO, as adjusted per share, beat the Zacks Consensus Estimate on three occasions and met in the remaining period, with the average beat being 1.69%. The graph below depicts this surprise history:
Healthpeak Properties, Inc. Price and EPS Surprise
Amid an increasing life expectancy of the U.S. population and biopharma drug development growth opportunities, the demand for lab real estate assets has been increasing. Therefore, Healthpeak, with a geographically diverse lab portfolio, is likely to have experienced healthy demand during the first quarter, aiding leasing activity.
Moreover, the senior citizen population is on the rise and the healthcare expenditure of this age cohort is usually on the higher end compared with the general population. Healthpeak’s continuing care retirement community portfolio, which refers to its retirement communities that include independent living, assisted living and skilled nursing units, is anticipated to have benefited from this positive expenditure trend, supporting the segment’s quarterly performance.
Amid these tailwinds, the company’s top line is expected to have improved. In the first quarter of 2024, we expect rental and related revenues to increase 5.5% to $414.2 million year over year.
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $552.6 million, indicating a rise of 5.1% from the year-ago reported number.
Further, DOC is likely to have continued with its asset-base expansion across its portfolio during the quarter, backed by a robust balance sheet.
Before the first-quarter earnings release, the company’s activities were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has moved up a cent to 44 cents over the past month. Moreover, the figure suggests a 4.76% increase from the year-ago quarter’s tally.
However, high interest expenses are likely to have been a spoilsport for Healthpeak during the to-be-reported quarter. Elevated rates imply high borrowing costs for the company, affecting its ability to purchase or develop real estate.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for DOC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Healthpeak currently has an Earnings ESP of -1.34% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Welltower (WELL - Free Report) and Park Hotels & Resorts (PK - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Park Hotels, slated to release quarterly numbers on Apr 30, has an Earnings ESP of +3.66% and carries a Zacks Rank of 3 at present. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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What's in the Cards for Healthpeak (DOC) This Earnings Season?
Healthpeak Properties, Inc. (DOC - Free Report) is slated to report first-quarter 2024 results on Apr 25 after market close. The quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted an FFO as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by 2.22%. Results reflected better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) net operating income was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO, as adjusted per share, beat the Zacks Consensus Estimate on three occasions and met in the remaining period, with the average beat being 1.69%. The graph below depicts this surprise history:
Healthpeak Properties, Inc. Price and EPS Surprise
Healthpeak Properties, Inc. price-eps-surprise | Healthpeak Properties, Inc. Quote
Factors at Play
Amid an increasing life expectancy of the U.S. population and biopharma drug development growth opportunities, the demand for lab real estate assets has been increasing. Therefore, Healthpeak, with a geographically diverse lab portfolio, is likely to have experienced healthy demand during the first quarter, aiding leasing activity.
Moreover, the senior citizen population is on the rise and the healthcare expenditure of this age cohort is usually on the higher end compared with the general population. Healthpeak’s continuing care retirement community portfolio, which refers to its retirement communities that include independent living, assisted living and skilled nursing units, is anticipated to have benefited from this positive expenditure trend, supporting the segment’s quarterly performance.
Amid these tailwinds, the company’s top line is expected to have improved. In the first quarter of 2024, we expect rental and related revenues to increase 5.5% to $414.2 million year over year.
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $552.6 million, indicating a rise of 5.1% from the year-ago reported number.
Further, DOC is likely to have continued with its asset-base expansion across its portfolio during the quarter, backed by a robust balance sheet.
Before the first-quarter earnings release, the company’s activities were adequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has moved up a cent to 44 cents over the past month. Moreover, the figure suggests a 4.76% increase from the year-ago quarter’s tally.
However, high interest expenses are likely to have been a spoilsport for Healthpeak during the to-be-reported quarter. Elevated rates imply high borrowing costs for the company, affecting its ability to purchase or develop real estate.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for DOC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Healthpeak currently has an Earnings ESP of -1.34% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Welltower (WELL - Free Report) and Park Hotels & Resorts (PK - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Welltower, scheduled to report quarterly numbers on Apr 29, has an Earnings ESP of +1.53% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Park Hotels, slated to release quarterly numbers on Apr 30, has an Earnings ESP of +3.66% and carries a Zacks Rank of 3 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.