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Healthpeak (PEAK) Up 9.5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Healthpeak . Shares have added about 9.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Healthpeak due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Healthpeak Properties reported third-quarter 2023 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a whisker. The reported figure rose 4.6% from the prior-year quarter.
Results reflected better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) NOI was witnessed across the portfolio. The company raised its outlook for the current year.
The healthcare REIT generated revenues of $556.24 million, outpacing the Zacks Consensus Estimate of $543.04 million. Moreover, the figure climbed 6.9% year over year.
Behind the Headlines
In the third quarter, Healthpeak reported 6% year-over-year growth in the total same-store portfolio cash (adjusted) NOI, surpassing our estimate of 4.4%.
It witnessed 3.3% and 3.4% year-over-year growth in the same-store portfolio cash (adjusted) NOI for its lab and outpatient medical segments, respectively. The CCRC segment reported growth of 32.1%. We had projected same-store portfolio cash (adjusted) NOI growth for the lab, outpatient medical and CCRC segments to be 2.6%, 2.9% and 18%, respectively.
During the reported quarter, Healthpeak executed lab new and renewal leases totaling 211,000 square feet, which included leases at three trophy campuses. For the outpatient medical portfolio, new and renewal leases aggregated 2.1 million square feet, marking an all-time quarterly high. The figure includes 1.3 million square feet renewal at Medical City Dallas.
Balance Sheet
Healthpeak exited the third quarter with cash and cash equivalents of $63.5 million, down from $103.8 million as of Jun 30, 2023. Its net debt to adjusted EBITDAre was 5.2X as of Sep 30, 2023.
2023 Guidance Up
Healthpeak raised its guidance for 2023 FFO as adjusted per share to the range of $1.76–$1.78 from $1.73–$1.77 estimated earlier, implying a 2-cent increase at the midpoint.
The total portfolio same-store cash-adjusted NOI growth was revised upward to 4.25-5.25% from 3.25-4.75% projected earlier. This suggests a 75-basis point increase at the midpoint.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Healthpeak has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Healthpeak is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Highwoods Properties (HIW - Free Report) , a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Highwoods Properties reported revenues of $207.1 million in the last reported quarter, representing a year-over-year change of +0.1%. EPS of $0.21 for the same period compares with $1.04 a year ago.
Highwoods Properties is expected to post earnings of $0.92 per share for the current quarter, representing a year-over-year change of -4.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
Highwoods Properties has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Healthpeak (PEAK) Up 9.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Healthpeak . Shares have added about 9.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Healthpeak due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Healthpeak's Q3 FFO & Revenues Top, '23 View Raised
Healthpeak Properties reported third-quarter 2023 FFO as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a whisker. The reported figure rose 4.6% from the prior-year quarter.
Results reflected better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) NOI was witnessed across the portfolio. The company raised its outlook for the current year.
The healthcare REIT generated revenues of $556.24 million, outpacing the Zacks Consensus Estimate of $543.04 million. Moreover, the figure climbed 6.9% year over year.
Behind the Headlines
In the third quarter, Healthpeak reported 6% year-over-year growth in the total same-store portfolio cash (adjusted) NOI, surpassing our estimate of 4.4%.
It witnessed 3.3% and 3.4% year-over-year growth in the same-store portfolio cash (adjusted) NOI for its lab and outpatient medical segments, respectively. The CCRC segment reported growth of 32.1%. We had projected same-store portfolio cash (adjusted) NOI growth for the lab, outpatient medical and CCRC segments to be 2.6%, 2.9% and 18%, respectively.
During the reported quarter, Healthpeak executed lab new and renewal leases totaling 211,000 square feet, which included leases at three trophy campuses. For the outpatient medical portfolio, new and renewal leases aggregated 2.1 million square feet, marking an all-time quarterly high. The figure includes 1.3 million square feet renewal at Medical City Dallas.
Balance Sheet
Healthpeak exited the third quarter with cash and cash equivalents of $63.5 million, down from $103.8 million as of Jun 30, 2023. Its net debt to adjusted EBITDAre was 5.2X as of Sep 30, 2023.
2023 Guidance Up
Healthpeak raised its guidance for 2023 FFO as adjusted per share to the range of $1.76–$1.78 from $1.73–$1.77 estimated earlier, implying a 2-cent increase at the midpoint.
The total portfolio same-store cash-adjusted NOI growth was revised upward to 4.25-5.25% from 3.25-4.75% projected earlier. This suggests a 75-basis point increase at the midpoint.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Healthpeak has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Healthpeak is part of the Zacks REIT and Equity Trust - Other industry. Over the past month, Highwoods Properties (HIW - Free Report) , a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Highwoods Properties reported revenues of $207.1 million in the last reported quarter, representing a year-over-year change of +0.1%. EPS of $0.21 for the same period compares with $1.04 a year ago.
Highwoods Properties is expected to post earnings of $0.92 per share for the current quarter, representing a year-over-year change of -4.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
Highwoods Properties has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.