We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Healthpeak Properties' Stock Rises 31% in 6 Months: Here's How
Read MoreHide Full Article
Shares of Healthpeak Properties, Inc. (DOC - Free Report) have gained 31% in the past six months compared with the industry’s growth of 9.5%.
Healthpeak is well-poised to benefit from its diversified and top-quality healthcare real estate assets in the high barrier-to-entry markets of the United States. Solid demand for lab assets is likely to drive its lab portfolio’s growth. Its continuing care retirement community (CCRC) portfolio is poised to gain from the rise in senior citizens’ healthcare expenditure. A healthy balance sheet position augurs well.
Last month, the company, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. 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.
Image Source: Zacks Investment Research
Let’s find out the factors behind the surge in the stock price.
The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities have promoted the lab real estate market fundamentals and led to a rise in demand for such assets.
Also, the use of artificial intelligence and machine learning is likely to increase the probability of success in drug research and lower the timeline for development, indicating a rise in the allocation of healthcare spending by healthcare research institutes in the upcoming years.
With the likelihood of the senior citizen population rising in the years ahead, Healthpeak’s CCRC portfolio, which refers to its retirement communities that include independent living, assisted living and skilled nursing units, is positioned to benefit from the high healthcare expenditures incurred by this age cohort. In the second quarter of 2024, occupancy in its CCRC portfolio was 85.4%, increasing 20 basis points sequentially.
Healthpeak is making portfolio-repositioning efforts to focus on lab, outpatient medical and CCRC assets. As part of such efforts, the company recycled capital through non-core dispositions of SHOP and triple-net leased assets to acquire and fund the development of lab and outpatient medical assets in high barrier-to-entry markets.
In the first half of 2024, the company placed in service a part of one lab development project, one outpatient medical development project held in a consolidated joint venture, one lab redevelopment project, part of one lab redevelopment project and part of one lab redevelopment building held in one of the company’s unconsolidated South San Francisco JVs.
The company maintains a healthy balance sheet position. It exited the second quarter of 2024 with around $3.08 billion of liquidity and a net debt-to-adjusted EBITDAre of 5.2X. It also enjoys long-term credit ratings of Baa1 from Moody’s and BBB+ from S&P Global as of June 30, 2024, rendering it easy access to the debt market at favorable costs. With a sound liquidity position, Healthpeak is well-placed to bank on growth opportunities.
The Zacks Consensus Estimate for Four Corners’ 2024 FFO per share stands at $1.72, indicating an increase of 3% from the year-ago reported figure.
The Zacks Consensus Estimate for Global Medical’s 2024 FFO per share is pinned at 92 cents, suggesting year-over-year growth of 1.1%.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Healthpeak Properties' Stock Rises 31% in 6 Months: Here's How
Shares of Healthpeak Properties, Inc. (DOC - Free Report) have gained 31% in the past six months compared with the industry’s growth of 9.5%.
Healthpeak is well-poised to benefit from its diversified and top-quality healthcare real estate assets in the high barrier-to-entry markets of the United States. Solid demand for lab assets is likely to drive its lab portfolio’s growth. Its continuing care retirement community (CCRC) portfolio is poised to gain from the rise in senior citizens’ healthcare expenditure. A healthy balance sheet position augurs well.
Last month, the company, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. 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.
Image Source: Zacks Investment Research
Let’s find out the factors behind the surge in the stock price.
The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities have promoted the lab real estate market fundamentals and led to a rise in demand for such assets.
Also, the use of artificial intelligence and machine learning is likely to increase the probability of success in drug research and lower the timeline for development, indicating a rise in the allocation of healthcare spending by healthcare research institutes in the upcoming years.
With the likelihood of the senior citizen population rising in the years ahead, Healthpeak’s CCRC portfolio, which refers to its retirement communities that include independent living, assisted living and skilled nursing units, is positioned to benefit from the high healthcare expenditures incurred by this age cohort. In the second quarter of 2024, occupancy in its CCRC portfolio was 85.4%, increasing 20 basis points sequentially.
Healthpeak is making portfolio-repositioning efforts to focus on lab, outpatient medical and CCRC assets. As part of such efforts, the company recycled capital through non-core dispositions of SHOP and triple-net leased assets to acquire and fund the development of lab and outpatient medical assets in high barrier-to-entry markets.
In the first half of 2024, the company placed in service a part of one lab development project, one outpatient medical development project held in a consolidated joint venture, one lab redevelopment project, part of one lab redevelopment project and part of one lab redevelopment building held in one of the company’s unconsolidated South San Francisco JVs.
The company maintains a healthy balance sheet position. It exited the second quarter of 2024 with around $3.08 billion of liquidity and a net debt-to-adjusted EBITDAre of 5.2X. It also enjoys long-term credit ratings of Baa1 from Moody’s and BBB+ from S&P Global as of June 30, 2024, rendering it easy access to the debt market at favorable costs. With a sound liquidity position, Healthpeak is well-placed to bank on growth opportunities.
Other Stocks to Consider
Some other top-ranked stocks from the REIT sector are Four Corners Property Trust (FCPT - Free Report) and Global Medical REIT (GMRE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Four Corners’ 2024 FFO per share stands at $1.72, indicating an increase of 3% from the year-ago reported figure.
The Zacks Consensus Estimate for Global Medical’s 2024 FFO per share is pinned at 92 cents, suggesting year-over-year growth of 1.1%.
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.