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Healthpeak's Q4 FFO Beats Estimates, Same-Store NOI Rises

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Healthpeak Properties, Inc. (DOC - Free Report) reported fourth-quarter 2024 funds from operations (FFO) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.

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Results reflect better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income (NOI) was witnessed across the portfolio. However, higher interest expenses affected the results to some extent. The company issued its 2025 guidance.

This healthcare real estate investment trust (REIT) generated revenues of $698 million, outpacing the Zacks Consensus Estimate of $694 million. The figure climbed 26.1% year over year.

In 2024, FFO, as adjusted, was $1.81 per share, in line with the Zacks Consensus Estimate. The reported figure improved 1.7% year over year. Full-year revenues of $2.70 billion increased 23.8% from the previous year.

 

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

 

Behind DOC’s Earnings Headlines

In the fourth quarter, Healthpeak reported 5.4% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.

It witnessed 3.1% and 4.9% 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 22.3%.

During the reported quarter, Healthpeak executed lab new and renewal leases totaling 652,000 square feet. For the outpatient medical portfolio, new and renewal leases aggregated 879,000 square feet.

However, interest expenses jumped 33.6% year over year to $70.5 million.

DOC’s Balance Sheet

Healthpeak exited the fourth quarter with cash and cash equivalents of $119.8 million, down from $180.4 million as of Sept. 30, 2024. Its net debt to adjusted EBITDAre was 5.2X as of Dec. 31, 2024.

DOC’s Dividend Update

On Feb. 3, Healthpeak’s board of directors declared a quarterly cash dividend of 30.5 cents per common share. This reflects a 1.7% increase from the prior quarter. The dividend will be paid out on Feb. 26, to shareholders on record as of Feb. 14, 2025.

DOC’s 2025 Outlook

The company expects FFO as adjusted per share to be between $1.81 and $1.87. The Zacks Consensus Estimate is presently pegged at $1.86, which is within expectations.

The total merger-combined same-store cash (adjusted) NOI growth is estimated to be in the range of 3.0-4.0%.

Healthpeak currently carries a Zacks Rank #3 (Hold).

Upcoming Earnings Releases

We now look forward to the earnings releases of other healthcare REITs, such as Welltower, Inc. (WELL - Free Report) and Ventas, Inc. (VTR - Free Report) , slated to report on Feb. 11 and Feb. 12, respectively.

The Zacks Consensus Estimate for Welltower’s fourth-quarter 2024 FFO per share is pegged at $1.12, implying a 16.7% year-over-year increase. WELL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Ventas’ fourth-quarter 2024 FFO per share stands at 80 cents, indicating a 5.3% rise year over year. VTR currently has a Zacks Rank #3.

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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