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Healthpeak Q3 FFO Beats Estimates, Same-Store NOI Rises Y/Y

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Key Takeaways

  • Healthpeak posted Q3 adjusted FFO of $0.46 per share, beating the consensus estimate of $0.45.
  • Revenues rose to $705.9M, driven by same-store NOI growth in outpatient medical and CCRC segments.
  • Interest expenses climbed 3.6% to $76.8M, though the company reaffirmed its 2025 FFO outlook.

Healthpeak Properties, Inc. (DOC - Free Report) reported third-quarter 2025 funds from operations (“FFO”) as adjusted per share of 46 cents, beating the Zacks Consensus Estimate of 45 cents. The figure compared favorably with the prior-year quarter’s 45 cents per share.

Results reflect better-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 $705.9 million, beating the Zacks Consensus Estimate of $696 million. The figure increased marginally year over year.

Behind DOC’s Earnings Headlines

In the third quarter, Healthpeak reported 0.9% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.

DOC witnessed 2.0% and 9.4% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI for its outpatient medical and CCRC segments, respectively. However, the lab segment reported a decline of 3.2%.

During the reported quarter, Healthpeak executed new and renewal leases totaling 339,000 square feet, with positive 4.6% cash-releasing spreads on renewals in the lab portfolio.

For the outpatient medical portfolio, new and renewal leases aggregated 1.2 million square feet, with positive 5.4% cash-releasing spreads on renewals.

However, interest expenses jumped 3.6% year over year to $76.8 million.

DOC’s Balance Sheet

Healthpeak exited the third quarter with cash and cash equivalents of $91 million, up from $89.4 million as of June 30, 2025. Its net debt to adjusted EBITDAre was 5.3X as of Sept. 30, 2025.

In August 2025, Healthpeak issued $500 million of 4.75% senior unsecured notes due 2033.

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 $1.83 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 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 Oct. 27 and Oct. 29, respectively.

The Zacks Consensus Estimate for Welltower’s third-quarter 2025 FFO per share is pegged at $1.30, implying a 17.1% year-over-year increase. WELL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Ventas’ third-quarter 2025 FFO per share is pinned at 87 cents, indicating an 8.8% rise year over year. VTR currently has a Zacks Rank #3 (Hold).

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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