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Healthpeak's (PEAK) Q4 FFO Beat Estimates, Same-Store NOI Up
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Healthpeak Properties, Inc. reported fourth-quarter 2023 funds from operations (FFO) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a whisker. The reported figure rose 4.5% from the prior-year quarter.
Results reflect better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) net operating income (NOI) was witnessed across the portfolio. The company also issued its 2024 outlook.
The healthcare real estate investment trust (REIT) generated revenues of $553.7 million, outpacing the Zacks Consensus Estimate of $553.3 million. Moreover, the figure climbed 5.6% year over year.
In 2023, FFO, as adjusted, was $1.78 per share, beating the Zacks Consensus Estimate of $1.77. The reported figure improved 5.5% year over year. Full-year revenues of $2.18 billion were in line with the Zacks Consensus Estimate. Moreover, the figure increased 5.8% from the previous year.
Behind the Headlines
In the fourth quarter, Healthpeak reported 3.6% year-over-year growth in the total same-store portfolio cash (adjusted) NOI, surpassing our estimate of 1%.
It witnessed 2.7% and 4.3% 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 4.7%.
During the reported quarter, Healthpeak executed lab new and renewal leases totaling 312,000 square feet. For the outpatient medical portfolio, new and renewal leases aggregated 743,000 square feet.
Balance Sheet
Healthpeak exited the fourth quarter with cash and cash equivalents of $117.6 million, up from $63.5 million as of Sep 30, 2023. Its net debt to adjusted EBITDAre was 5.2X as of Dec 31, 2023.
Dividend Update
Concurrent with its fourth-quarter earnings release, Healthpeak’s board of directors announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Feb 23 to shareholders on record as of Feb 14, 2023.
2024 Outlook
Healthpeak issued its guidance for 2024.
It expects FFO as adjusted per share to be between $1.73 and $1.79. This is lower than the Zacks Consensus Estimate of $1.81.
The total portfolio same-store cash (adjusted) NOI growth is estimated to be in the range of 2.25-3.75%.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2023 FFO per share of $1.82 outpaced the Zacks Consensus Estimate by a penny. However, the reported figure fell 2.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also issued its guidance for 2024 FFO per share.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.
Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some extent. ARE also issued its 2024 outlook.
Crown Castle Inc. (CCI - Free Report) reported fourth-quarter 2023 AFFO per share of $1.82, outpacing the Zacks Consensus Estimate of $1.79. However, the reported figure declined 1.6% from the year-ago quarter.
Results reflect better-than-anticipated revenues aided by healthy site-rental revenue growth. However, 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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Healthpeak's (PEAK) Q4 FFO Beat Estimates, Same-Store NOI Up
Healthpeak Properties, Inc. reported fourth-quarter 2023 funds from operations (FFO) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate by a whisker. The reported figure rose 4.5% from the prior-year quarter.
Results reflect better-than-anticipated revenues. Moreover, growth in same-store portfolio cash (adjusted) net operating income (NOI) was witnessed across the portfolio. The company also issued its 2024 outlook.
The healthcare real estate investment trust (REIT) generated revenues of $553.7 million, outpacing the Zacks Consensus Estimate of $553.3 million. Moreover, the figure climbed 5.6% year over year.
In 2023, FFO, as adjusted, was $1.78 per share, beating the Zacks Consensus Estimate of $1.77. The reported figure improved 5.5% year over year. Full-year revenues of $2.18 billion were in line with the Zacks Consensus Estimate. Moreover, the figure increased 5.8% from the previous year.
Behind the Headlines
In the fourth quarter, Healthpeak reported 3.6% year-over-year growth in the total same-store portfolio cash (adjusted) NOI, surpassing our estimate of 1%.
It witnessed 2.7% and 4.3% 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 4.7%.
During the reported quarter, Healthpeak executed lab new and renewal leases totaling 312,000 square feet. For the outpatient medical portfolio, new and renewal leases aggregated 743,000 square feet.
Balance Sheet
Healthpeak exited the fourth quarter with cash and cash equivalents of $117.6 million, up from $63.5 million as of Sep 30, 2023. Its net debt to adjusted EBITDAre was 5.2X as of Dec 31, 2023.
Dividend Update
Concurrent with its fourth-quarter earnings release, Healthpeak’s board of directors announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Feb 23 to shareholders on record as of Feb 14, 2023.
2024 Outlook
Healthpeak issued its guidance for 2024.
It expects FFO as adjusted per share to be between $1.73 and $1.79. This is lower than the Zacks Consensus Estimate of $1.81.
The total portfolio same-store cash (adjusted) NOI growth is estimated to be in the range of 2.25-3.75%.
Healthpeak currently carries a Zacks Rank #3 (Hold). 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-eps-surprise-chart | Healthpeak Properties, Inc. Quote
Performance of Other REITs
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2023 FFO per share of $1.82 outpaced the Zacks Consensus Estimate by a penny. However, the reported figure fell 2.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also issued its guidance for 2024 FFO per share.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.
Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some extent. ARE also issued its 2024 outlook.
Crown Castle Inc. (CCI - Free Report) reported fourth-quarter 2023 AFFO per share of $1.82, outpacing the Zacks Consensus Estimate of $1.79. However, the reported figure declined 1.6% from the year-ago quarter.
Results reflect better-than-anticipated revenues aided by healthy site-rental revenue growth. However, 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.