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Is a Beat in Store for Healthpeak (PEAK) in Q3 Earnings?
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Healthpeak Properties, Inc. is slated to report third-quarter 2023 results on Oct 30, 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 FFO per share of 45 cents, beating the Zacks Consensus Estimate by a whisker. The quarterly results reflected better-than-anticipated revenues. Moreover, year-over-year improvement in same-store portfolio cash (adjusted) net operating income (NOI) was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO as adjusted per share beat the Zacks Consensus Estimate on two occasions and met in the other two, with the average being 1.15%. The graph below depicts this surprise history:
Healthpeak Properties, Inc. Price and EPS Surprise
The demand for lab real estate assets has been booming on the back of the increasing life expectancy of the U.S. population and biopharma drug development growth opportunities. Against this backdrop, Healthpeak’s geographically diverse lab portfolio concentrated in the leading biotech markets of South San Francisco, Boston and San Diego is likely to have experienced robust demand during the third quarter, aiding leasing activity.
A well-diversified tenant base, which includes several industry bellwethers, is expected to have contributed to stable rental revenue generation, boosting the top line.
The Zacks Consensus Estimate for third-quarter total revenues is pegged at $543.04 million, indicating a rise of 4.4% from the year-ago reported number.
Moreover, with the senior citizen population on the rise, the healthcare expenditure by this age cohort is likely to have been on the higher end compared with the general population. Healthpeak’s continuing care retirement community (CCRC) 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.
Per the September Investor Presentation, the company noted that, through August, the total portfolio same-store cash (adjusted) NOI growth for the lab and CCRC segments were trending above the mid-point and the high end of the guidance, respectively.
Our estimate for the quarterly same-store cash-adjusted NOI for the lab and CCRC segments indicates an increase of 2.6% and 18% year over year, respectively.
Further, PEAK is likely to have continued with its asset-base expansion across its portfolio during the quarter, backed by a robust balance sheet.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 44 cents over the past month. However, the figure suggests growth of 2.3% from the prior-year’s reported number.
What Our Quantitative Model Predicts
Our proven model predicts a surprise in terms of FFO per share for PEAK this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. That is just the case here.
Earnings ESP: Healthpeak has an Earnings ESP of +0.88%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks that are worth considering from the REIT sector, as our model shows that these, too, have the right combination of elements to deliver a surprise this reporting cycle:
Welltower (WELL - Free Report) is scheduled to report quarterly figures on Oct 30. WELL has an Earnings ESP of +0.75% and a Zacks Rank #2 (Buy) currently.
Ventas (VTR - Free Report) is slated to release report quarterly numbers on Nov 2. VTR has an Earnings ESP of +0.08% and a Zacks Rank #3 at present.
SBA Communications (SBAC - Free Report) is slated to report quarterly numbers on Nov 2. SBAC has an Earnings ESP of +0.27% and carries a Zacks Rank of 3 presently.
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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Is a Beat in Store for Healthpeak (PEAK) in Q3 Earnings?
Healthpeak Properties, Inc. is slated to report third-quarter 2023 results on Oct 30, 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 FFO per share of 45 cents, beating the Zacks Consensus Estimate by a whisker. The quarterly results reflected better-than-anticipated revenues. Moreover, year-over-year improvement in same-store portfolio cash (adjusted) net operating income (NOI) was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO as adjusted per share beat the Zacks Consensus Estimate on two occasions and met in the other two, with the average being 1.15%. 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
The demand for lab real estate assets has been booming on the back of the increasing life expectancy of the U.S. population and biopharma drug development growth opportunities. Against this backdrop, Healthpeak’s geographically diverse lab portfolio concentrated in the leading biotech markets of South San Francisco, Boston and San Diego is likely to have experienced robust demand during the third quarter, aiding leasing activity.
A well-diversified tenant base, which includes several industry bellwethers, is expected to have contributed to stable rental revenue generation, boosting the top line.
The Zacks Consensus Estimate for third-quarter total revenues is pegged at $543.04 million, indicating a rise of 4.4% from the year-ago reported number.
Moreover, with the senior citizen population on the rise, the healthcare expenditure by this age cohort is likely to have been on the higher end compared with the general population. Healthpeak’s continuing care retirement community (CCRC) 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.
Per the September Investor Presentation, the company noted that, through August, the total portfolio same-store cash (adjusted) NOI growth for the lab and CCRC segments were trending above the mid-point and the high end of the guidance, respectively.
Our estimate for the quarterly same-store cash-adjusted NOI for the lab and CCRC segments indicates an increase of 2.6% and 18% year over year, respectively.
Further, PEAK is likely to have continued with its asset-base expansion across its portfolio during the quarter, backed by a robust balance sheet.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 44 cents over the past month. However, the figure suggests growth of 2.3% from the prior-year’s reported number.
What Our Quantitative Model Predicts
Our proven model predicts a surprise in terms of FFO per share for PEAK this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. That is just the case here.
Earnings ESP: Healthpeak has an Earnings ESP of +0.88%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PEAK currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks That Warrant a Look
Here are some stocks that are worth considering from the REIT sector, as our model shows that these, too, have the right combination of elements to deliver a surprise this reporting cycle:
Welltower (WELL - Free Report) is scheduled to report quarterly figures on Oct 30. WELL has an Earnings ESP of +0.75% and a Zacks Rank #2 (Buy) currently.
Ventas (VTR - Free Report) is slated to release report quarterly numbers on Nov 2. VTR has an Earnings ESP of +0.08% and a Zacks Rank #3 at present.
SBA Communications (SBAC - Free Report) is slated to report quarterly numbers on Nov 2. SBAC has an Earnings ESP of +0.27% and carries a Zacks Rank of 3 presently.
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.