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What's in the Cards for Healthpeak Properties This Earnings Season?

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Key Takeaways

  • Healthpeak Properties will report third-quarter 2025 results on Oct. 23, after market close.
  • Resident fees and services are projected to rise 6.6%, while rental revenues are expected to decline 1.7%.
  • Total revenues may dip 0.6% year over year, with FFO per share expected to remain flat at 45 cents.

Healthpeak Properties, Inc. (DOC - Free Report) is slated to report its third-quarter 2025 results on Oct. 23, after market close. While the company’s quarterly results are likely to display a year-over-year decline in revenues, funds from operations (FFO) per share are expected to remain unchanged.

In the last reported quarter, this healthcare real estate investment trust (REIT) posted an FFO as adjusted per share of 46 cents, which met the Zacks Consensus Estimate. Results reflected lower-than-anticipated revenues. However, growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio.

In the preceding four quarters, Healthpeak’s FFO, as adjusted per share, surpassed the Zacks Consensus Estimate on two occasions and met in the remaining periods, with the average beat being 1.12%. The graph below depicts this surprise history:

 

 

Factors at Play for Healthpeak

The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities have promoted the lab real estate market fundamentals. Healthpeak’s focus on the lab segment is a strategic fit and is expected to have benefited from this tailwind.

Moreover, the senior citizen population is on the rise, and the healthcare expenditure of this age cohort is usually on the higher end compared with the general population. Healthpeak’s continuing care retirement community portfolio, which refers to its retirement communities, is anticipated to have benefited from this positive expenditure trend, supporting the segment’s quarterly performance.

However, high interest expenses during the third quarter are likely to have been a spoilsport for Healthpeak.

DOC’s Projections for Q3

For the third quarter, the Zacks Consensus Estimate for DOC’s resident fees and services revenues stands at $152.2 million, indicating a rise of 6.6% from the year-ago reported number.

However, the Zacks Consensus Estimate for DOC’s rental and related revenues currently stands at $534.3 million, implying a decline of 1.7% from the prior-year period’s reported figure.

The Zacks Consensus Estimate for third-quarter total revenues is pegged at $696 million, indicating a marginal fall of 0.6% from the year-ago reported number.

Before the third-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has decreased a cent to 45 cents over the past two months. The figure suggests no change from the year-ago quarter’s tally.

What Our Quantitative Model Predicts for Healthpeak

Our proven model does not conclusively predict a surprise in terms of FFO per share for DOC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.

Healthpeak currently has an Earnings ESP of +2.54% and carries a Zacks Rank of #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT industry — Ventas (VTR - Free Report) and Extra Space Storage (EXR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Ventas is slated to report quarterly numbers on Oct. 29. VTR has an Earnings ESP of +0.84% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

EXR, scheduled to report quarterly numbers on Oct. 29, has an Earnings ESP of +0.23% and a Zacks Rank of 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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Ventas, Inc. (VTR) - free report >>

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