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Healthpeak (PEAK) Q1 FFO & Revenues Beat Estimates, NOI Rises
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Healthpeak Properties, Inc. reported first-quarter 2020 funds from operations (FFO) as adjusted of 45 cents per share, surpassing the Zacks Consensus Estimate of 44 cents. The reported figure also compared favorably with FFO as adjusted in the prior-year quarter of 44 cents per share.
The healthcare real estate investment trust (REIT) generated revenues of $585.15 million, outpacing the Zacks Consensus Estimate of $530.11 million. Moreover, the figure was higher than the year-ago number of 436.15 million.
Results were supported by the decent performance of its life science and medical office segments.
Behind the Headlines
Healthpeak witnessed a 2% year-over-year rise in the three-month cash SPP net operating income (NOI). It registered 3.1% growth in life-science cash NOI, 2% rise in the medical office segment, 4.2% advancement in other non-reportable segments and a 0.1% decline in senior-housing segment cash NOI.
Healthpeak had cash and cash equivalents of $783.5 million as of Mar 31, 2020, up from $144.2 million recorded at the end of 2019.
Notable Portfolio Activities in Q1
In January 2020, the company closed the previously-announced transaction with Brookdale Senior Living, acquiring Brookdale's 51% interest in 13 CCRCs for $641 million (including the payment of a $100-million management termination fee) and the sale of a triple-net portfolio, consisting 18 properties, for $405 million.
In March 2020, the company signed a long-term lease for 32,000 square feet at its 75 Hayden development project in Boston, MA. Notably, the 214,000-square-foot Class A development project is anticipated to be delivered in fourth-quarter 2020 and is presently 72% pre-leased.
In January 2020, it executed a long-term lease with Janssen BioPharma, Inc., for around 60% of Phase II of The Shore at Sierra Point.
Conclusion
In light of the coronavirus pandemic, the company withdrew its 2020 guidance in early April. As of Apr 30, 2020, Healthpeak had 54 properties, with confirmed resident COVID-19 cases. Further, 31 of the properties had experienced resident deaths.
Moreover, as of the same date, the company received 97%, 95%, 97% and 96% of April rent payments in its life science, medical office, senior-housing triple net and hospital properties, respectively.
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
SL Green Realty Corp. (SLG - Free Report) reported first-quarter 2020 FFO per share of $2.08, surpassing the Zacks Consensus Estimate of $1.70. The figure also compared favorably with the year-ago quarter’s $1.68.
Prologis, Inc. (PLD - Free Report) reported first-quarter 2020 core FFO per share of 83 cents, beating the Zacks Consensus Estimate of 81 cents. Results also compared favorably with the year-ago figure of 73 cents.
Vornado Realty Trust (VNO - Free Report) reported first-quarter 2020 FFO plus assumed conversions as adjusted of 72 cents per share, missing the Zacks Consensus Estimate of 76 cents. The reported figure declined 8.9% year over year.
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 (PEAK) Q1 FFO & Revenues Beat Estimates, NOI Rises
Healthpeak Properties, Inc. reported first-quarter 2020 funds from operations (FFO) as adjusted of 45 cents per share, surpassing the Zacks Consensus Estimate of 44 cents. The reported figure also compared favorably with FFO as adjusted in the prior-year quarter of 44 cents per share.
The healthcare real estate investment trust (REIT) generated revenues of $585.15 million, outpacing the Zacks Consensus Estimate of $530.11 million. Moreover, the figure was higher than the year-ago number of 436.15 million.
Results were supported by the decent performance of its life science and medical office segments.
Behind the Headlines
Healthpeak witnessed a 2% year-over-year rise in the three-month cash SPP net operating income (NOI). It registered 3.1% growth in life-science cash NOI, 2% rise in the medical office segment, 4.2% advancement in other non-reportable segments and a 0.1% decline in senior-housing segment cash NOI.
Healthpeak had cash and cash equivalents of $783.5 million as of Mar 31, 2020, up from $144.2 million recorded at the end of 2019.
Notable Portfolio Activities in Q1
In January 2020, the company closed the previously-announced transaction with Brookdale Senior Living, acquiring Brookdale's 51% interest in 13 CCRCs for $641 million (including the payment of a $100-million management termination fee) and the sale of a triple-net portfolio, consisting 18 properties, for $405 million.
In March 2020, the company signed a long-term lease for 32,000 square feet at its 75 Hayden development project in Boston, MA. Notably, the 214,000-square-foot Class A development project is anticipated to be delivered in fourth-quarter 2020 and is presently 72% pre-leased.
In January 2020, it executed a long-term lease with Janssen BioPharma, Inc., for around 60% of Phase II of The Shore at Sierra Point.
Conclusion
In light of the coronavirus pandemic, the company withdrew its 2020 guidance in early April. As of Apr 30, 2020, Healthpeak had 54 properties, with confirmed resident COVID-19 cases. Further, 31 of the properties had experienced resident deaths.
Moreover, as of the same date, the company received 97%, 95%, 97% and 96% of April rent payments in its life science, medical office, senior-housing triple net and hospital properties, respectively.
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
Healthpeak Properties, Inc. price-consensus-eps-surprise-chart | Healthpeak Properties, Inc. Quote
Healthpeak currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
SL Green Realty Corp. (SLG - Free Report) reported first-quarter 2020 FFO per share of $2.08, surpassing the Zacks Consensus Estimate of $1.70. The figure also compared favorably with the year-ago quarter’s $1.68.
Prologis, Inc. (PLD - Free Report) reported first-quarter 2020 core FFO per share of 83 cents, beating the Zacks Consensus Estimate of 81 cents. Results also compared favorably with the year-ago figure of 73 cents.
Vornado Realty Trust (VNO - Free Report) reported first-quarter 2020 FFO plus assumed conversions as adjusted of 72 cents per share, missing the Zacks Consensus Estimate of 76 cents. The reported figure declined 8.9% year over year.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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