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Healthpeak Properties, Inc. reported fourth-quarter 2021 funds from operations (FFO) as adjusted of 41 cents per share, in line with the Zacks Consensus Estimate. The reported figure remained flat year over year.
The healthcare real estate investment trust (“REIT”) generated revenues of $483.2 million, lagging the Zacks Consensus Estimate of $484.3 million. The figure was, however, 11.9% 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.
For 2021, adjusted FFO was $1.61 per share, beating the Zacks Consensus Estimate of $1.60. However, the reported figure declined 1.8% year over year.
Full-year revenues of $1.90 billion surpassed the Zacks Consensus Estimate of $1.87 billion. The figure was 15.3% higher than the previous year.
Behind the Headlines
For fourth-quarter 2021, the company registered 2.7% growth in the adjusted cash same-store portfolio net operating income (NOI).
It witnessed 5.4% and 3.6% 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 9.6% year over year.
Portfolio Activity
In 2021, the company closed the buyouts worth $658 million for life science and $834 million for medical office buildings.
In 2021, 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 $158.3 million as of Dec 31, 2021, up from $44.2 million recorded at the end of 2020. As of the fourth-quarter end, net debt to adjusted EBITDAre was 5.3X.
Dividend Update
On Jan 27, the company announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Feb 22 to shareholders of record as of Feb 11.
Outlook
Healthpeak provided the guidance for 2022. The company expects FFO per share as adjusted of $1.68-$1.74. The Zacks Consensus Estimate for the same is pegged at $1.73.
Same-store cash-adjusted NOI growth is expected to be 3.25-4.75% for the total portfolio.
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported an adjusted FFO of $1.97 per share for fourth-quarter 2021, up 7.1% from the year-ago quarter’s $1.84. The figure surpassed the Zacks Consensus Estimate of $1.96.
The year-over-year improvement in ARE’s FFO resulted from 24.4% top-line growth to $576.9 million. Results reflected decent internal growth. Alexandria witnessed continued healthy leasing activity and rental rate growth during the quarter.
Cousins Properties Incorporated’s (CUZ - Free Report) fourth-quarter 2021 FFO per share of 69 cents came in line with the Zacks Consensus Estimate. The figure improved 1.5% from the prior-year quarter’s figure.
Colin Connolly, the president and chief executive officer of Cousins Properties, stated, “We signed 743,000 square feet of leases during the fourth quarter, our highest leasing volume since 2019 and the second-best quarter over the past five years.”
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) Q4 FFO Meets Estimates, Revenues Rise Y/Y
Healthpeak Properties, Inc. reported fourth-quarter 2021 funds from operations (FFO) as adjusted of 41 cents per share, in line with the Zacks Consensus Estimate. The reported figure remained flat year over year.
The healthcare real estate investment trust (“REIT”) generated revenues of $483.2 million, lagging the Zacks Consensus Estimate of $484.3 million. The figure was, however, 11.9% 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.
For 2021, adjusted FFO was $1.61 per share, beating the Zacks Consensus Estimate of $1.60. However, the reported figure declined 1.8% year over year.
Full-year revenues of $1.90 billion surpassed the Zacks Consensus Estimate of $1.87 billion. The figure was 15.3% higher than the previous year.
Behind the Headlines
For fourth-quarter 2021, the company registered 2.7% growth in the adjusted cash same-store portfolio net operating income (NOI).
It witnessed 5.4% and 3.6% 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 9.6% year over year.
Portfolio Activity
In 2021, the company closed the buyouts worth $658 million for life science and $834 million for medical office buildings.
In 2021, 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 $158.3 million as of Dec 31, 2021, up from $44.2 million recorded at the end of 2020. As of the fourth-quarter end, net debt to adjusted EBITDAre was 5.3X.
Dividend Update
On Jan 27, the company announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on Feb 22 to shareholders of record as of Feb 11.
Outlook
Healthpeak provided the guidance for 2022. The company expects FFO per share as adjusted of $1.68-$1.74. The Zacks Consensus Estimate for the same is pegged at $1.73.
Same-store cash-adjusted NOI growth is expected to be 3.25-4.75% for the total portfolio.
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
Healthpeak Properties, Inc. price-consensus-eps-surprise-chart | Healthpeak Properties, Inc. Quote
Healthpeak currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported an adjusted FFO of $1.97 per share for fourth-quarter 2021, up 7.1% from the year-ago quarter’s $1.84. The figure surpassed the Zacks Consensus Estimate of $1.96.
The year-over-year improvement in ARE’s FFO resulted from 24.4% top-line growth to $576.9 million. Results reflected decent internal growth. Alexandria witnessed continued healthy leasing activity and rental rate growth during the quarter.
Cousins Properties Incorporated’s (CUZ - Free Report) fourth-quarter 2021 FFO per share of 69 cents came in line with the Zacks Consensus Estimate. The figure improved 1.5% from the prior-year quarter’s figure.
Colin Connolly, the president and chief executive officer of Cousins Properties, stated, “We signed 743,000 square feet of leases during the fourth quarter, our highest leasing volume since 2019 and the second-best quarter over the past five years.”
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.