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Healthpeak (PEAK) to Report Q4 Earnings: What's in the Offing?
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Healthpeak Properties, Inc. is slated to report fourth-quarter and full year 2021 earnings on Feb 8, after market close. While PEAK’s results are anticipated to reflect year-over-year growth in revenues, funds from operations (FFO) per share are expected to be in line.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted FFO as adjusted per share of 40 cents, surpassing the Zacks Consensus Estimate by a whisker. While the performance was backed by solid revenue growth in life science and medical office portfolio, weakness in the continuing care retirement community (CCRC) portfolio left an adverse impact.
Over the preceding four quarters, Healthpeak’s earnings beat the Zacks Consensus Estimate on all occasions, the average being 2.55%. The graph below depicts this surprise history:
Let’s see how things have shaped up prior to the fourth-quarter earnings release.
Healthpeak Properties, Inc. Price and EPS Surprise
During fourth-quarter 2021, Healthpeak’s life-science real-estate portfolio is likely to have witnessed decent demand on the back of drug innovations and developments. The Zacks Consensus Estimate for the quarterly life-science revenues is pegged at $188 million, suggesting sequential growth of 2.2%.
The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities promoted the life-science real estate market fundamentals. Moreover, in light of the global efforts to develop vaccines and treatments for the coronavirus, there has been higher demand for drug innovation. This, in turn, might have driven sector fundamentals, leasing activity and rent growth during the October-December period.
Healthpeak is likely to have gained from a diversified, high-quality and well-balanced portfolio with three core asset classes of life science, medical office and CCRC real estate. During the fourth quarter, PEAK announced its third active development, Vantage, in the South San Francisco market. The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $484.3 million, suggesting a year-over-year rise of 12.2%.
Over the past few years, Healthpeak has significantly reduced the size of both senior housing operating portfolio and triple-net portfolios through divestitures to rebalance its portfolio toward life-science and medical office businesses, and offer stability to earnings. Though such efforts are strategic fits for the long term, the large-scale dispositions are expected to have affectedthe cash flows, inducing lost revenues and earnings dilution in fourth-quarter 2021.
Ahead of the fourth-quarter earnings release, there is no solid catalyst to raise investors’ optimism on the stock’s prospects. The Zacks Consensus Estimate for the FFO per share has been unchanged at 41 cents in the past month.
For the full year, the Zacks Consensus Estimate for FFO per share has been unrevised at $1.60 over the past two months, indicatinga 2.4% decrease from the year-earlier reported figure. The same for revenues stands at $1.87 billion.
Here is what our quantitative model predicts:
Our proven model does not conclusively predict a positive surprise in terms of FFO per share for PEAK this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Healthpeak has an Earnings ESP of 0.00%.
Here are some stocks like Alpine Income Properties (PINE - Free Report) , EastGroup Properties (EGP - Free Report) and MGM Growth Properties , which are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
AlpineIncome Properties, slated to release fourth-quarter earnings on Feb 10, has an Earnings ESP of +10.34% and a Zacks Rank #3 at present.
EastGroup Properties, scheduled to report quarterly figures on Feb 8, has an Earnings ESP of +0.32% and a Zacks Rank of 2, currently.
MGM Growth Properties, slated to release fourth-quarter earnings on Feb 15, has an Earnings ESP of +1.01% and a Zacks Rank of 2 at present.
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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Healthpeak (PEAK) to Report Q4 Earnings: What's in the Offing?
Healthpeak Properties, Inc. is slated to report fourth-quarter and full year 2021 earnings on Feb 8, after market close. While PEAK’s results are anticipated to reflect year-over-year growth in revenues, funds from operations (FFO) per share are expected to be in line.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted FFO as adjusted per share of 40 cents, surpassing the Zacks Consensus Estimate by a whisker. While the performance was backed by solid revenue growth in life science and medical office portfolio, weakness in the continuing care retirement community (CCRC) portfolio left an adverse impact.
Over the preceding four quarters, Healthpeak’s earnings beat the Zacks Consensus Estimate on all occasions, the average being 2.55%. The graph below depicts this surprise history:
Let’s see how things have shaped up prior to the fourth-quarter earnings release.
Healthpeak Properties, Inc. Price and EPS Surprise
Healthpeak Properties, Inc. price-eps-surprise | Healthpeak Properties, Inc. Quote
Factors at Play
During fourth-quarter 2021, Healthpeak’s life-science real-estate portfolio is likely to have witnessed decent demand on the back of drug innovations and developments. The Zacks Consensus Estimate for the quarterly life-science revenues is pegged at $188 million, suggesting sequential growth of 2.2%.
The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities promoted the life-science real estate market fundamentals. Moreover, in light of the global efforts to develop vaccines and treatments for the coronavirus, there has been higher demand for drug innovation. This, in turn, might have driven sector fundamentals, leasing activity and rent growth during the October-December period.
Healthpeak is likely to have gained from a diversified, high-quality and well-balanced portfolio with three core asset classes of life science, medical office and CCRC real estate. During the fourth quarter, PEAK announced its third active development, Vantage, in the South San Francisco market. The Zacks Consensus Estimate for fourth-quarter total revenues is pegged at $484.3 million, suggesting a year-over-year rise of 12.2%.
Over the past few years, Healthpeak has significantly reduced the size of both senior housing operating portfolio and triple-net portfolios through divestitures to rebalance its portfolio toward life-science and medical office businesses, and offer stability to earnings. Though such efforts are strategic fits for the long term, the large-scale dispositions are expected to have affectedthe cash flows, inducing lost revenues and earnings dilution in fourth-quarter 2021.
Ahead of the fourth-quarter earnings release, there is no solid catalyst to raise investors’ optimism on the stock’s prospects. The Zacks Consensus Estimate for the FFO per share has been unchanged at 41 cents in the past month.
For the full year, the Zacks Consensus Estimate for FFO per share has been unrevised at $1.60 over the past two months, indicatinga 2.4% decrease from the year-earlier reported figure. The same for revenues stands at $1.87 billion.
Here is what our quantitative model predicts:
Our proven model does not conclusively predict a positive surprise in terms of FFO per share for PEAK this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Healthpeak has an Earnings ESP of 0.00%.
Zacks Rank: Healthpeak currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks That Warrant a Look
Here are some stocks like Alpine Income Properties (PINE - Free Report) , EastGroup Properties (EGP - Free Report) and MGM Growth Properties , which are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
AlpineIncome Properties, slated to release fourth-quarter earnings on Feb 10, has an Earnings ESP of +10.34% and a Zacks Rank #3 at present.
EastGroup Properties, scheduled to report quarterly figures on Feb 8, has an Earnings ESP of +0.32% and a Zacks Rank of 2, currently.
MGM Growth Properties, slated to release fourth-quarter earnings on Feb 15, has an Earnings ESP of +1.01% and a Zacks Rank of 2 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.