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Healthpeak Q2 FFO Meets Estimates, Same-Store NOI Rises Y/Y
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Key Takeaways
DOC posted Q2 FFO of 46 cents per share, matching estimates and up from 45 cents in the prior-year quarter.
Same-store cash NOI rose 3.5% year over year, led by growth in outpatient, lab and CCRC segments.
Lab and outpatient leases had 6% cash-releasing spreads, with 87% and 85% tenant retention, respectively.
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2025 funds from operations (“FFO”) as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.
Results reflect lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) net operating income (“NOI”) was witnessed across the portfolio. However, higher interest expenses affected the results to some extent.
This healthcare real estate investment trust (“REIT”) generated revenues of $694.3 million, marginally missing the Zacks Consensus Estimate of $694.6 million. The figure also slightly declined year over year.
Behind DOC’s Earnings Headlines
In the second quarter, Healthpeak reported 3.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.
DOC witnessed 3.9% and 1.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI for its outpatient medical and lab segments, respectively. The CCRC segment reported growth of 8.6%.
During the reported quarter, Healthpeak executed new and renewal leases totaling 503,000 square feet, with retention at 87% and positive 6% cash-releasing spreads on renewals in the lab portfolio.
For the outpatient medical portfolio, new and renewal leases aggregated 1 million square feet, with retention at 85% and positive 6% cash-releasing spreads on renewals.
However, interest expenses marginally jumped year over year to $75.1 million.
DOC’s Balance Sheet
Healthpeak exited the second quarter with cash and cash equivalents of $89.4 million, up from $70.6 million as of March 31, 2025. Its net debt to adjusted EBITDAre was 5.2X as of June 30, 2025.
In June 2025, Healthpeak repaid $452 million as 4% senior notes at maturity.
DOC’s 2025 Outlook
Healthpeak has reaffirmed its previous guidance. The company expects its 2025 FFO as adjusted per share to be between $1.81 and $1.87. The Zacks Consensus Estimate is presently pegged at $1.85 per share, which is within expectations.
The total merger-combined same-store cash (adjusted) NOI growth is estimated to be in the range of 3-4%.
Healthpeak currently carries a Zacks Rank #4 (Sell).
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other healthcare REITs, such as Welltower, Inc. (WELL - Free Report) and Ventas, Inc. (VTR - Free Report) , slated to report on July 28 and July 30, respectively.
The Zacks Consensus Estimate for Welltower’s second-quarter 2025 FFO per share is pegged at $1.22, implying a 16.2% year-over-year increase. WELL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ventas’ second-quarter 2025 FFO per share is pinned at 85 cents, indicating a 6.3% rise year over year. VTR currently has a Zacks Rank #3.
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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Healthpeak Q2 FFO Meets Estimates, Same-Store NOI Rises Y/Y
Key Takeaways
Healthpeak Properties, Inc. (DOC - Free Report) reported second-quarter 2025 funds from operations (“FFO”) as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.
Results reflect lower-than-expected revenues. Growth in total merger-combined same-store cash (adjusted) net operating income (“NOI”) was witnessed across the portfolio. However, higher interest expenses affected the results to some extent.
This healthcare real estate investment trust (“REIT”) generated revenues of $694.3 million, marginally missing the Zacks Consensus Estimate of $694.6 million. The figure also slightly declined year over year.
Behind DOC’s Earnings Headlines
In the second quarter, Healthpeak reported 3.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.
DOC witnessed 3.9% and 1.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI for its outpatient medical and lab segments, respectively. The CCRC segment reported growth of 8.6%.
During the reported quarter, Healthpeak executed new and renewal leases totaling 503,000 square feet, with retention at 87% and positive 6% cash-releasing spreads on renewals in the lab portfolio.
For the outpatient medical portfolio, new and renewal leases aggregated 1 million square feet, with retention at 85% and positive 6% cash-releasing spreads on renewals.
However, interest expenses marginally jumped year over year to $75.1 million.
DOC’s Balance Sheet
Healthpeak exited the second quarter with cash and cash equivalents of $89.4 million, up from $70.6 million as of March 31, 2025. Its net debt to adjusted EBITDAre was 5.2X as of June 30, 2025.
In June 2025, Healthpeak repaid $452 million as 4% senior notes at maturity.
DOC’s 2025 Outlook
Healthpeak has reaffirmed its previous guidance. The company expects its 2025 FFO as adjusted per share to be between $1.81 and $1.87. The Zacks Consensus Estimate is presently pegged at $1.85 per share, which is within expectations.
The total merger-combined same-store cash (adjusted) NOI growth is estimated to be in the range of 3-4%.
Healthpeak currently carries a Zacks Rank #4 (Sell).
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
Healthpeak Properties, Inc. price-consensus-eps-surprise-chart | Healthpeak Properties, Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other healthcare REITs, such as Welltower, Inc. (WELL - Free Report) and Ventas, Inc. (VTR - Free Report) , slated to report on July 28 and July 30, respectively.
The Zacks Consensus Estimate for Welltower’s second-quarter 2025 FFO per share is pegged at $1.22, implying a 16.2% year-over-year increase. WELL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ventas’ second-quarter 2025 FFO per share is pinned at 85 cents, indicating a 6.3% rise year over year. VTR currently has a Zacks Rank #3.
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.