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Healthpeak (PEAK) Tops on Q2 FFO & Revenues, Hikes '21 View

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Healthpeak Properties, Inc.  reported second-quarter 2021 funds from operations (“FFO”) as adjusted of 40 cents per share, surpassing the Zacks Consensus Estimate by a whisker. The reported figure remained flat year over year.

The healthcare real estate investment trust (“REIT”) generated revenues of $476.2 million, outpacing the Zacks Consensus Estimate of $471.5 million. Also, the figure was 16.6% higher than the year-ago number.

The performance was backed by revenue growth. However, weakness in the continuing care retirement communities (CCRC) portfolio affected results.

Behind the Headlines

For second-quarter 2021, the company registered 1.2% growth in adjusted cash same-store portfolio net operating income (NOI).

It witnessed 7.4% and 4.1% year-over-year growth in the cash same-store portfolio NOI for its life-science and medical office segments, respectively. However, cash same-store portfolio NOI for the CCRC portfolio declined 23.2% year over year.

Portfolio Activity

In the second quarter, the company closed the buyouts for $425 million for medical office buildings.

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 $3.8 billion from closed dispositions since July 2020.

Liquidity

Healthpeak had cash and cash equivalents of $96.9 million as of Jun 30, 2021, down from $44.2 million recorded at the end of 2020. As of the second-quarter end, net debt to adjusted EBITDAre was 4.6X.

Dividend Update

On Jul 29, the company announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Aug 20 to shareholders of record as of Aug 9, 2021.

Outlook

Healthpeak updated the guidance for 2021 and expects FFO as adjusted per share of $1.55-$1.61 compared with $1.53-$1.61 mentioned earlier. The Zacks Consensus Estimate for the same is pegged at $1.59.

Same-store cash-adjusted NOI growth for 2021 is expected to be 2.25-3.75% for the total portfolio.

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 and EPS Surprise

Healthpeak Properties, Inc. price-consensus-eps-surprise-chart | Healthpeak Properties, Inc. Quote

Upcoming Releases of Other REITs

We now look forward to the earnings releases of other REITs, including Regency Centers Corporation (REG - Free Report) , Lamar Advertising Company (LAMR - Free Report) and Iron Mountain Incorporated (IRM - Free Report) , which are slated to release results on Aug 5.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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