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Healthpeak's (PEAK) Q1 FFO & Revenues Beat Estimates, NOI Up
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Healthpeak Properties, Inc. reported first-quarter 2022 funds from operations (FFO) as adjusted per share of 43 cents, marginally surpassing the Zacks Consensus Estimate of 42 cents. The reported figure was up 7.5% from the year-ago quarter’s 40 cents.
The healthcare real estate investment trust (REIT) generated revenues of $498.4 million, outpacing the Zacks Consensus Estimate of $489 million. The figure was 9.5% higher than the prior-year quarter’s $455.3 million.
The performance was backed by solid revenue growth. Same-store portfolio cash (adjusted) net operating income (NOI) also witnessed growth due to overall improvement in all its segments, namely life-science, medical office and continuing care retirement communities (CCRC).
Behind the Headlines
In the March quarter, the company reported 5.6% growth in the same-store portfolio cash adjusted NOI.
It witnessed 5.2% and 3.6% year-over-year growth in the same-store portfolio cash (adjusted) NOI for its life-science and medical office segments, respectively. Additionally, same-store portfolio cash adjusted NOI for the CCRC portfolio improved 13.7% year over year.
Portfolio Activity
In March 2022, Healthpeak completed acquisitions of two medical office buildings encompassing 95,000 square feet for $43 million. This also included a 43,000-square-foot LEED Platinum-certified building. Both properties are located in the Webster submarket of Houston on the campus of HCA's recently expanded 595-bed Clear Lake Hospital. The portfolio is 97% leased to a diverse mix of life science and clinical specialties with a weighted average remaining lease term of approximately 7.5 years.
Balance Sheet
Healthpeak had cash and cash equivalents of $89.1 million as of Mar 31, 2022, down from $158.3 million as of Dec 31, 2021. The company’s consolidated debt at the end of the first quarter was $6.4 billion. In the same period, its net debt to adjusted EBITDAre was 5.1X.
Dividend Update
On Apr 28, the company announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on May 20 to shareholders on record as of May 9, 2022.
Outlook
Healthpeak reaffirmed its guidance for 2022. The company expects FFO as adjusted per share to lie between $1.68 and $1.74. The Zacks Consensus Estimate for the same is pegged at $1.74.
The same-store portfolio cash-adjusted NOI growth is expected in the range of 3.25-4.75%.
Boston Properties, Inc.’s (BXP - Free Report) first-quarter 2022 FFO per share of $1.82 beat the Zacks Consensus Estimate of $1.74. The figure also compared favorably with the year-ago quarter’s $1.56.
BXP’s quarterly results reflect decent growth in lease revenues. Also, it experienced strong leasing activity during the quarter.
Quarterly revenues of Boston Properties from lease came in at $718.1 million, up 4.7% from $685.8 million in the year-ago quarter. Moreover, the figure surpassed the consensus mark of $700.6 million.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported first-quarter 2022 core FFO per share of $1.97, surpassing the Zacks Consensus Estimate of $1.92. The reported number increased 20.1% year over year.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
The rental and other property revenues came in at $476.1 million, outpacing the Zacks Consensus Estimate of $474.20 million. The reported figure was 12% higher than the previous-year quarter’s $425 million.
AvalonBay Communities, Inc.’s (AVB - Free Report) first-quarter 2022 core FFO per share of $2.26 matched the Zacks Consensus Estimate.
However, total revenues of $613.9 million lagged the consensus estimate of $615.4 million.
On a year-over-year basis, AVB’s core FFO per share increased 15.9% and total revenues grew 11.4%.
The first-quarter results reflected a year-over-year increase in same-store residential revenues, partially offset by rising operating expenses.
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's (PEAK) Q1 FFO & Revenues Beat Estimates, NOI Up
Healthpeak Properties, Inc. reported first-quarter 2022 funds from operations (FFO) as adjusted per share of 43 cents, marginally surpassing the Zacks Consensus Estimate of 42 cents. The reported figure was up 7.5% from the year-ago quarter’s 40 cents.
The healthcare real estate investment trust (REIT) generated revenues of $498.4 million, outpacing the Zacks Consensus Estimate of $489 million. The figure was 9.5% higher than the prior-year quarter’s $455.3 million.
The performance was backed by solid revenue growth. Same-store portfolio cash (adjusted) net operating income (NOI) also witnessed growth due to overall improvement in all its segments, namely life-science, medical office and continuing care retirement communities (CCRC).
Behind the Headlines
In the March quarter, the company reported 5.6% growth in the same-store portfolio cash adjusted NOI.
It witnessed 5.2% and 3.6% year-over-year growth in the same-store portfolio cash (adjusted) NOI for its life-science and medical office segments, respectively. Additionally, same-store portfolio cash adjusted NOI for the CCRC portfolio improved 13.7% year over year.
Portfolio Activity
In March 2022, Healthpeak completed acquisitions of two medical office buildings encompassing 95,000 square feet for $43 million. This also included a 43,000-square-foot LEED Platinum-certified building. Both properties are located in the Webster submarket of Houston on the campus of HCA's recently expanded 595-bed Clear Lake Hospital. The portfolio is 97% leased to a diverse mix of life science and clinical specialties with a weighted average remaining lease term of approximately 7.5 years.
Balance Sheet
Healthpeak had cash and cash equivalents of $89.1 million as of Mar 31, 2022, down from $158.3 million as of Dec 31, 2021.
The company’s consolidated debt at the end of the first quarter was $6.4 billion. In the same period, its net debt to adjusted EBITDAre was 5.1X.
Dividend Update
On Apr 28, the company announced a quarterly cash dividend of 30 cents per common share. The dividend will be paid out on May 20 to shareholders on record as of May 9, 2022.
Outlook
Healthpeak reaffirmed its guidance for 2022. The company expects FFO as adjusted per share to lie between $1.68 and $1.74. The Zacks Consensus Estimate for the same is pegged at $1.74.
The same-store portfolio cash-adjusted NOI growth is expected in the range of 3.25-4.75%.
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-eps-surprise-chart | Healthpeak Properties, Inc. Quote
Performance of Other REITs
Boston Properties, Inc.’s (BXP - Free Report) first-quarter 2022 FFO per share of $1.82 beat the Zacks Consensus Estimate of $1.74. The figure also compared favorably with the year-ago quarter’s $1.56.
BXP’s quarterly results reflect decent growth in lease revenues. Also, it experienced strong leasing activity during the quarter.
Quarterly revenues of Boston Properties from lease came in at $718.1 million, up 4.7% from $685.8 million in the year-ago quarter. Moreover, the figure surpassed the consensus mark of $700.6 million.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported first-quarter 2022 core FFO per share of $1.97, surpassing the Zacks Consensus Estimate of $1.92. The reported number increased 20.1% year over year.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
The rental and other property revenues came in at $476.1 million, outpacing the Zacks Consensus Estimate of $474.20 million. The reported figure was 12% higher than the previous-year quarter’s $425 million.
AvalonBay Communities, Inc.’s (AVB - Free Report) first-quarter 2022 core FFO per share of $2.26 matched the Zacks Consensus Estimate.
However, total revenues of $613.9 million lagged the consensus estimate of $615.4 million.
On a year-over-year basis, AVB’s core FFO per share increased 15.9% and total revenues grew 11.4%.
The first-quarter results reflected a year-over-year increase in same-store residential revenues, partially offset by rising operating expenses.
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.