Back to top

Image: Bigstock

Healthpeak (PEAK) Beats on Q3 FFO & Revenues, Hikes '21 View

Read MoreHide Full Article

Healthpeak Properties, Inc. (PEAK - Free Report) reported third-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 $481.5 million, outpacing the Zacks Consensus Estimate of $477 million. Also, the figure was 13.7% higher than the year-ago number.

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

Concurrent with the earnings release, Healthpeak announced the initial phase of its life-science development, Vantage in South San Francisco.

Behind the Headlines

For third-quarter 2021, the company registered 3.2% growth in the adjusted cash same-store portfolio net operating income (NOI).

It witnessed 6.8% and 2.9% 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 9% year over year.

Portfolio Activity

In the third quarter, the company announced $782 million of new acquisitions. It closed the buyouts for $137 million for medical office buildings.

Healthpeak’s senior housing dispositions aggregated gross proceeds of $4 billion from closed dispositions since July 2020.

Liquidity

Healthpeak had cash and cash equivalents of $201.1 million as of Sep 30, 2021, up from $44.2 million recorded at the end of 2020. As of the third-quarter end, net debt to adjusted EBITDAre was 5X.

Dividend Update

On Oct 27, the company announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Nov 19 to shareholders of record as of Nov 8, 2021.

Outlook

Healthpeak updated the guidance for 2021 and expects the FFO as adjusted per share of $1.58-$1.62 compared with the $1.55-$1.61 estimated earlier. The Zacks Consensus Estimate for the same is pegged at $1.60.

Same-store cash-adjusted NOI growth for 2021 is expected to be 3.5-4.0% for the total portfolio.

Healthpeak currently carries a Zacks Rank #3 (Hold). You can seethe 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 like Apple Hospitality REIT, Inc. (APLE - Free Report) , CubeSmart (CUBE - Free Report) and Sunstone Hotel Investors, Inc. (SHO - Free Report) scheduled for Nov 4.

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.