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Healthpeak's (DOC) Q2 FFO Beat Estimates, Same-Store NOI Up

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Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.

Results reflect better-than-anticipated revenues. Moreover, growth in total merger-combined same-store cash (adjusted) net operating income (NOI) was witnessed across the portfolio. The company also revised its 2024 outlook.

This healthcare real estate investment trust (REIT) generated revenues of $695.5 million, outpacing the Zacks Consensus Estimate of $660.6 million. Moreover, the figure climbed 27.5% year over year.

Behind the Headlines

In the second quarter, Healthpeak reported 4.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.

It witnessed 3.1% and 3.0% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI for its outpatient medical and lab segments, respectively. The CCRC segment reported growth of 20.5%.

During the reported quarter, Healthpeak executed lab new and renewal leases totaling 797,000 square feet. For the outpatient medical portfolio, new and renewal leases aggregated 905,000 square feet.

Balance Sheet

Healthpeak exited the second quarter with cash and cash equivalents of $106.9 million, up from $101.8 million as of Mar 31, 2024. Its net debt to adjusted EBITDAre was 5.2X as of Jun 30, 2024.

Dividend Update

On Jul 24, Healthpeak’s board of directors announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Aug 16, to shareholders on record as of Aug 6, 2024.

2024 Outlook

Healthpeak revised its guidance for FFO as adjusted per share to the range of $1.77-$1.81 from $1.76-$1.80 estimated earlier. The Zacks Consensus Estimate for the same is presently pegged at $1.79, which is within expectations.

The total merger-combined same-store cash (adjusted) NOI growth is revised and estimated to be in the range of 2.75-4.25% from 2.50-4.00%.

Healthpeak currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Healthpeak Properties, Inc. Price, Consensus and EPS Surprise

Healthpeak Properties, Inc. Price, Consensus and EPS Surprise

Healthpeak Properties, Inc. price-consensus-eps-surprise-chart | Healthpeak Properties, Inc. Quote

Performance of Other REITs

Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported second-quarter 2024 adjusted funds from operations (AFFO) per share of $2.36, which beat the Zacks Consensus Estimate of $2.34. The reported figure also climbed 5.4% from the year-ago quarter.

Results reflected a rise in revenues, aided by decent leasing activity and rental rate growth. ARE maintained its 2024 AFFO per share outlook.

Crown Castle Inc. (CCI - Free Report) reported second-quarter 2024 AFFO per share of $1.62, lagging the Zacks Consensus Estimate of $1.65. The reported figure also declined 21% from the year-ago quarter.

Results reflected a fall in net revenues on a year-over-year basis. Higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.

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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