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What's in Store for Healthpeak (PEAK) This Earnings Season?
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Healthpeak Properties, Inc. is slated to report second-quarter 2023 results on Jul 27, after market close. While the quarterly results are expected to reflect year-over-year growth in revenues, funds from operations (FFO) per share are likely to have been on par with the prior-year quarter’s reported figure.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted FFO as adjusted per share of 42 cents, in line with the Zacks Consensus Estimate. The performance was backed by healthy top-line growth. Moreover, improvement in same-store portfolio cash (adjusted) net operating income (NOI) was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO as adjusted per share beat the Zacks Consensus Estimate on two occasions and met the same in the other two, the average being 1.17%. The graph below depicts this surprise history:
Healthpeak Properties, Inc. Price and EPS Surprise
Healthpeak enjoys a diversified, high-quality and well-balanced portfolio across three core asset classes of life science, medical office and CCRC real estate.
During the second quarter, its life-science real-estate portfolio, which accounts for a major share of its portfolio-adjusted NOI, is anticipated to have witnessed solid demand on the back of the growing need for drug research and innovation. This is likely to have aided healthy leasing activity, leading to occupancy gains and rent growth.
Also, the life-science portfolio’s well-diversified, creditworthy tenant base, which includes several industry bellwethers, is expected to have contributed to stable rental revenue generation, boosting the company’s quarterly performance.
Our estimate for the quarterly cash-adjusted NOI for the life-science portfolio indicates an increase of 4.1% year over year.
Healthpeak’s continuing care retirement community (CCRC) portfolio is anticipated to have capitalized on the positive healthcare expenditure trend of senior citizens, which is generally higher than the average population, during the quarter.
Per the company’s June Investor Presentation, the CCRC portfolio is experiencing a healthy recovery in occupancy levels post the health crisis and an improvement in expense trends. Also, muted new supply has been a boon. This is likely to have aided NOI growth for this segment. We estimate the CCRC portfolio cash-adjusted NOI to exhibit year-over-year growth of 11.4% during the second quarter.
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $536.1 million, indicating a rise of 3.5% from the year-ago reported number.
Further, PEAK’s robust balance-sheet position is likely to have supported its acquisitions, developments and redevelopments across its life-science, medical office and CCRC portfolios during the quarter.
However, Healthpeak’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the FFO per share has been unchanged at 44 cents over the past month.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for PEAK this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: Healthpeak has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks that 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:
EastGroup Properties (EGP - Free Report) is scheduled to report quarterly figures on Jul 25. EGP has an Earnings ESP of +1.22% and a Zacks Rank #2 currently.
American Tower (AMT - Free Report) is slated to release report quarterly numbers on Jul 27. AMT has an Earnings ESP of +1.64% and a Zacks Rank #3 at present.
W.P. Carey (WPC - Free Report) is slated to report quarterly numbers on Jul 28. WPC has an Earnings ESP of +1.13% and carries a Zacks Rank #2 presently.
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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What's in Store for Healthpeak (PEAK) This Earnings Season?
Healthpeak Properties, Inc. is slated to report second-quarter 2023 results on Jul 27, after market close. While the quarterly results are expected to reflect year-over-year growth in revenues, funds from operations (FFO) per share are likely to have been on par with the prior-year quarter’s reported figure.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted FFO as adjusted per share of 42 cents, in line with the Zacks Consensus Estimate. The performance was backed by healthy top-line growth. Moreover, improvement in same-store portfolio cash (adjusted) net operating income (NOI) was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO as adjusted per share beat the Zacks Consensus Estimate on two occasions and met the same in the other two, the average being 1.17%. The graph below depicts this surprise history:
Healthpeak Properties, Inc. Price and EPS Surprise
Healthpeak Properties, Inc. price-eps-surprise | Healthpeak Properties, Inc. Quote
Factors at Play
Healthpeak enjoys a diversified, high-quality and well-balanced portfolio across three core asset classes of life science, medical office and CCRC real estate.
During the second quarter, its life-science real-estate portfolio, which accounts for a major share of its portfolio-adjusted NOI, is anticipated to have witnessed solid demand on the back of the growing need for drug research and innovation. This is likely to have aided healthy leasing activity, leading to occupancy gains and rent growth.
Also, the life-science portfolio’s well-diversified, creditworthy tenant base, which includes several industry bellwethers, is expected to have contributed to stable rental revenue generation, boosting the company’s quarterly performance.
Our estimate for the quarterly cash-adjusted NOI for the life-science portfolio indicates an increase of 4.1% year over year.
Healthpeak’s continuing care retirement community (CCRC) portfolio is anticipated to have capitalized on the positive healthcare expenditure trend of senior citizens, which is generally higher than the average population, during the quarter.
Per the company’s June Investor Presentation, the CCRC portfolio is experiencing a healthy recovery in occupancy levels post the health crisis and an improvement in expense trends. Also, muted new supply has been a boon. This is likely to have aided NOI growth for this segment. We estimate the CCRC portfolio cash-adjusted NOI to exhibit year-over-year growth of 11.4% during the second quarter.
The Zacks Consensus Estimate for second-quarter total revenues is pegged at $536.1 million, indicating a rise of 3.5% from the year-ago reported number.
Further, PEAK’s robust balance-sheet position is likely to have supported its acquisitions, developments and redevelopments across its life-science, medical office and CCRC portfolios during the quarter.
However, Healthpeak’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the FFO per share has been unchanged at 44 cents over the past month.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a surprise in terms of FFO per share for PEAK this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: Healthpeak has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PEAK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are some stocks that 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:
EastGroup Properties (EGP - Free Report) is scheduled to report quarterly figures on Jul 25. EGP has an Earnings ESP of +1.22% and a Zacks Rank #2 currently.
American Tower (AMT - Free Report) is slated to release report quarterly numbers on Jul 27. AMT has an Earnings ESP of +1.64% and a Zacks Rank #3 at present.
W.P. Carey (WPC - Free Report) is slated to report quarterly numbers on Jul 28. WPC has an Earnings ESP of +1.13% and carries a Zacks Rank #2 presently.
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.