A month has gone by since the last earnings report for Healthpeak . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Healthpeak due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Healthpeak Q1 FFO Surpasses Estimates, Revenues Miss
Healthpeak reported first-quarter 2021 FFO as adjusted of 40 cents per share, surpassing the Zacks Consensus Estimate by a whisker. However, the reported figure compared unfavorably with FFO as adjusted of 45 cents per share recorded in the prior-year quarter.
The healthcare REIT generated revenues of $455.3 million, missing the Zacks Consensus Estimate of $544.9 million. Nonetheless, the figure was 19.5% higher than the year-ago number.
Performance was backed by revenue growth. However, weakness in the CCRC portfolio affected results.
Behind the Headlines
For first-quarter 2021, the company registered 4.3% growth in the three-month cash same-store portfolio NOI, including government grants received under the CARES Act.
It witnessed 8.5% and 2.1% year-over-year growth in the three-month cash same-store portfolio NOI for its life-science segment and the medical office segment, respectively. However, three-month cash same-store portfolio NOI for the CCRC portfolio declined 16.5% year over year, including government grants received under the CARES Act.
Portfolio Activity
Healthpeak earlier initiated a strategy to dispose of its senior housing triple-net and SHOP assets worth $4 billion. Making significant progress on the strategy, it aggregated gross proceeds of $3.5 billion from closed dispositions since July 2020.
In April, the company closed the buyout of a 14-property medical office portfolio, spanning 833,000 square feet, for $371 million.
Liquidity
Healthpeak had cash and cash equivalents of $34 million as of Mar 31, 2021, down from $44.2 million recorded at the end of 2020.
On May 4, the company used proceeds from its senior housing sales to commence tender offers of up to an additional $550 million of senior unsecured notes maturing in 2025 that have a weighted average coupon of 3.7%.
Pro forma debt repayment, the company has no senior unsecured notes maturing until February 2025, thereby, extending weighted average debt maturity to 6.5 years. Further, weighted average interest rate has been reduced to 3%.
Outlook
The company updated the guidance for 2021 and expects FFO as adjusted per share of $1.53-$1.61 compared with $1.50-$1.60 mentioned earlier. This indicates an increase of 2 cents at the mid-point.
Same-store cash adjusted NOI growth for 2021 is expected to be 1.75-3.25% for the total portfolio.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Healthpeak has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Healthpeak (PEAK) Up 3.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Healthpeak . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Healthpeak due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Healthpeak Q1 FFO Surpasses Estimates, Revenues Miss
Healthpeak reported first-quarter 2021 FFO as adjusted of 40 cents per share, surpassing the Zacks Consensus Estimate by a whisker. However, the reported figure compared unfavorably with FFO as adjusted of 45 cents per share recorded in the prior-year quarter.
The healthcare REIT generated revenues of $455.3 million, missing the Zacks Consensus Estimate of $544.9 million. Nonetheless, the figure was 19.5% higher than the year-ago number.
Performance was backed by revenue growth. However, weakness in the CCRC portfolio affected results.
Behind the Headlines
For first-quarter 2021, the company registered 4.3% growth in the three-month cash same-store portfolio NOI, including government grants received under the CARES Act.
It witnessed 8.5% and 2.1% year-over-year growth in the three-month cash same-store portfolio NOI for its life-science segment and the medical office segment, respectively. However, three-month cash same-store portfolio NOI for the CCRC portfolio declined 16.5% year over year, including government grants received under the CARES Act.
Portfolio Activity
Healthpeak earlier initiated a strategy to dispose of its senior housing triple-net and SHOP assets worth $4 billion. Making significant progress on the strategy, it aggregated gross proceeds of $3.5 billion from closed dispositions since July 2020.
In April, the company closed the buyout of a 14-property medical office portfolio, spanning 833,000 square feet, for $371 million.
Liquidity
Healthpeak had cash and cash equivalents of $34 million as of Mar 31, 2021, down from $44.2 million recorded at the end of 2020.
On May 4, the company used proceeds from its senior housing sales to commence tender offers of up to an additional $550 million of senior unsecured notes maturing in 2025 that have a weighted average coupon of 3.7%.
Pro forma debt repayment, the company has no senior unsecured notes maturing until February 2025, thereby, extending weighted average debt maturity to 6.5 years. Further, weighted average interest rate has been reduced to 3%.
Outlook
The company updated the guidance for 2021 and expects FFO as adjusted per share of $1.53-$1.61 compared with $1.50-$1.60 mentioned earlier. This indicates an increase of 2 cents at the mid-point.
Same-store cash adjusted NOI growth for 2021 is expected to be 1.75-3.25% for the total portfolio.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Healthpeak has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.