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HealthPeak Boosts Flexibility With $3B Revolving Credit Facility

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Healthpeak Properties, Inc.’s (DOC - Free Report) operating partnership has amended and extended its revolving credit facility amounting to $3 billion. Furthermore, conforming amendments are made to its outstanding term loans associated with this credit facility.

The facility is scheduled to mature in January 2029, with the option for two six-month extensions, subject to certain conditions. Based on current credit ratings of Healthpeak, the interest rate for the credit facility is set at an annual rate equivalent to SOFR plus 77.5 basis points (bps), in addition to a facility fee of 15 bps per annum on the entire revolving commitment.

Summing-Up Healthpeak

Healthpeak is well-poised to gain from its portfolio of top-quality healthcare real estate assets in the high barrier-to-entry markets of the United States. Solid demand for lab assets amid increasing need for drug innovation and developments is likely to drive its lab portfolio’s growth. Its continuing care retirement community portfolio is poised to gain from the rise in senior citizens’ healthcare spending. Encouraging capital-recycling moves bode well for long-term growth.

The successful transaction, as noted above, highlights the strength of its balance sheet and bolsters Healthpeak's growth initiatives while affirming the company’s ongoing dedication to generate long-term value for its shareholders.

In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 13.2% compared with the industry’s growth of 13.5%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower (WELL - Free Report) and Alpine Income Property Trust (PINE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2024 FFO per share is pinned at $4.26, implying year-over-year growth of 17%.

The Zacks Consensus Estimate for Alpine Income’s 2024 FFO per share is pegged at $1.70, indicating an increase of 15.7% from the year-ago reported figure.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.


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