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Healthpeak Properties (DOC)
NYSE:DOC
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Healthpeak Properties
(NYSE:DOC)73Outperform
Positive Factors
Investment Potential
DOC's balance sheet appears well-placed to flex up to $1B of investments with limited competition.
Leasing Growth
Lab leasing of 652k sq ft in 4Q brings YTD total to 2.1mn sq ft, which is a 113% increase year-over-year.
Negative Factors
Earnings Guidance
FY25 CFFO guidance implies a growth of 1.4% year-over-year, which is a deceleration from 1.9% in 2024.
Healthpeak Properties (DOC) vs. S&P 500 (SPY)
Market Cap
$14.45B
Dividend Yield5.95%
Average Volume (3M)5.17M
Price to Earnings (P/E)56.5
Beta (1Y)0.98
Revenue Growth23.82%
EPS Growth-37.59%
CountryUS
Employees387
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.35
Shares Outstanding699,565,550
10 Day Avg. Volume4,647,396
30 Day Avg. Volume5,173,178
Financial Highlights & Ratios
PEG Ratio4.68
Price to Book (P/B)N/A
Price to Sales (P/S)5.28
Price to Cash Flow (P/CF)12.60
P/FCF Ratio23.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.90Price Target Upside17.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Healthpeak Properties Business Overview & Revenue Model
Company DescriptionHealthpeak Properties, Inc. is a real estate investment trust, which invests primarily in real estate serving the healthcare industry in the United States. It acquires, develops, leases, sells, and manages healthcare real estate and provides mortgage and other financing to healthcare providers. It operates through the following business segments: Senior Housing Triple-Net, Senior Housing Operating Portfolio (SHOP), Life Science, and Medical Office. The Senior Housing Triple-Net and Operating Portfolio segments manage senior housing facilities, which include independent living, assisted living and memory care facilities, care homes, and continuing care retirement communities by utilizing triple-net leases and RIDEA structures. The Life Science segment contains laboratory and office space primarily for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies, and other organizations involved in the life science industry. The Medical Office segment includes pharmacies, hospital ancillary service space, and outpatient services such as diagnostic centers, rehabilitation clinics, and day-surgery operating rooms. The company was founded in March 1985 and is headquartered in Irvine, CA.
How the Company Makes MoneyHealthpeak Properties generates revenue primarily through leasing its real estate assets to tenants in the healthcare sector. The company's key revenue streams include rental income from its life science buildings, medical office buildings, and senior housing properties. Additionally, Healthpeak benefits from property management fees and development services. The company's earnings are bolstered by long-term leases with healthcare providers, research institutions, and senior housing operators, which provide a stable and predictable cash flow. Strategic partnerships and acquisitions also contribute to revenue growth, enabling Healthpeak to expand its portfolio and enhance its market presence in the healthcare real estate sector.
Healthpeak Properties Financial Statement Overview
Summary
Healthpeak Properties displays solid revenue growth and operational efficiency, indicated by high gross and EBITDA margins. Although the net profit margin has declined, the company maintains a moderate leverage with a debt-to-equity ratio of 1.07. The cash flow statement shows robust cash generation, supporting potential investments or debt repayments. Improving net profitability and returns on equity would further enhance financial performance.Income Statement
Healthpeak Properties showed a strong revenue growth of 23.83% from 2023 to 2024, indicating robust expansion. The gross profit margin stands at 60.20%, which is healthy for the REIT industry. However, the net profit margin decreased to 9.00% from 14.02% the previous year, suggesting increased expenses or other operational challenges. The EBITDA margin remains high at 59.64%, reinforcing operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio is 1.07, reflecting a moderate level of leverage typical for REITs. Return on Equity (ROE) is 2.89%, which is relatively low, indicating modest returns to shareholders. The equity ratio of 42.14% suggests a balanced capital structure but emphasizes the need for improved profitability.70
Positive
Cash Flow
Operating cash flow has increased by 11.97% year-over-year, demonstrating strong cash generation capabilities. The free cash flow is substantial and matches operating cash flow due to zero capital expenditure, providing financial flexibility. The operating cash flow to net income ratio is 4.40, indicating efficient cash conversion from accounting profits.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.70B | 2.18B | 526.63M | 457.70M | 437.50M | Gross Profit |
| 1.63B | 1.28B | 355.54M | 320.29M | 309.31M | EBIT |
| 0.00 | 1.18B | 124.89M | 123.09M | 124.70M | EBITDA |
| 1.61B | 1.19B | 314.54M | 280.96M | 1.13B | Net Income Common Stockholders |
| 243.14M | 306.01M | 37.80M | 25.40M | 10.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 119.82M | 138.99M | 7.73M | 9.88M | 2.52M | Total Assets |
| 19.94B | 15.70B | 5.10B | 5.18B | 4.41B | Total Debt |
| 9.02B | 7.08B | 1.92B | 2.02B | 1.51B | Net Debt |
| 8.90B | 6.97B | 1.92B | 2.01B | 1.51B | Total Liabilities |
| 10.88B | 8.77B | 2.10B | 2.19B | 1.67B | Stockholders Equity |
| 8.40B | 6.35B | 2.87B | 2.84B | 2.64B |
| Cash Flow | Free Cash Flow | |||
| 1.07B | 956.24M | 218.53M | 214.99M | 199.41M | Operating Cash Flow |
| 1.07B | 956.24M | 258.40M | 247.56M | 233.30M | Investing Cash Flow |
| -113.80M | -576.75M | -38.47M | -603.22M | -201.91M | Financing Cash Flow |
| -941.42M | -337.30M | -222.07M | 363.03M | -31.22M |
Healthpeak Properties Technical Analysis
Positive
20.42
Price Trends
19.95
Positive
20.68
Negative
20.45
Negative
Market Momentum
0.10
Negative
57.95
Neutral
75.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOC, the sentiment is Positive. The current price of 20.42 is above the 20-day moving average (MA) of 19.82, above the 50-day MA of 19.95, and below the 200-day MA of 20.45, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 75.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOC.
Healthpeak Properties Risk Analysis
Healthpeak Properties disclosed 58 risk factors in its most recent earnings report. Healthpeak Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Healthpeak Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $98.70B | 186.70 | 1.65% | 1.70% | 20.40% | 57.80% | |
78 Outperform | $17.39B | 55.86 | 1.70% | 5.16% | 7.99% | 232.16% | |
73 Outperform | $14.45B | 56.50 | 3.29% | 5.95% | 23.82% | -37.59% | |
67 Neutral | $31.70B | 26.31 | 7.37% | 1.35% | 10.70% | -49.85% | |
63 Neutral | $31.32B | 358.18 | 0.75% | 2.56% | 9.48% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
56 Neutral | $3.39B | ― | -47.99% | 8.16% | 14.19% | -331.18% |
* Real Estate Sector Average
Performance Comparison
DOC
Healthpeak Properties
20.42
3.86
23.31%
ARE
Alexandria Equities
102.19
-15.86
-13.43%
WELL
Welltower
154.85
64.72
71.81%
HUM
Humana
262.12
-73.17
-21.82%
VTR
Ventas
70.47
28.48
67.83%
MPW
Medical Properties
5.73
1.63
39.76%
Healthpeak Properties Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: 1.74% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements including strong earnings growth, successful merger integration, and strategic investment opportunities, particularly in the life science sector. However, the company also faces challenges such as increased interest expenses and insurance costs. Overall, the positive developments appear to outweigh the lowlights.Highlights
Earnings Growth and Dividend Increase
Over the past three years, FFO per share grew by 12% and AFFO per share by 19%. The company announced an increase in dividends, supported by earnings growth.
Successful Merger and Asset Sales
The merger with Physicians Realty was highly successful and accretive. Closed $1.3 billion of asset sales at a compelling cap rate of 6.4%, primarily stabilized outpatient medical buildings.
Lab Segment Performance
Year-over-year same-store growth in the lab segment was 5%, exceeding expectations with a positive 11% rent mark-to-market on renewals.
Strong CCRC Portfolio Growth
Year-over-year same-store growth in the CCRC portfolio was 20.8%, driven by better-than-expected occupancy gains and entrance fees.
Strategic Life Science Investments
Announced a $75 million mortgage loan with an 8% interest rate and a purchase option in a strategic location, indicative of targeted investment strategies.
Lowlights
Interest Expense Increase
Interest expense is forecasted to increase approximately $15 million or $0.02 a share as the company refinances maturing bonds.
Dilution from Loan Repayment
The repayment of a legacy senior housing loan, although positive, resulted in some earnings dilution.
Insurance and Maintenance Costs
Milton-related charges resulted in costs that the company will incur due to high deductibles in states like Florida and California.
Company Guidance
During Healthpeak Properties' fourth-quarter conference call for fiscal year 2024, the company provided guidance for 2025, highlighting expected FFO (Funds From Operations) adjusted to range from $1.81 to $1.87 per share, with an anticipated total portfolio same-store growth of 3% to 4%. The guidance also includes $500 million of planned investments, with a weighted average yield of 8% or higher. For specific segments, outpatient medical same-store growth is projected between 2.5% and 3.5%, lab growth between 3% and 4%, and CCRCs (Continuing Care Retirement Communities) between 4% and 8%. Healthpeak anticipates increased interest expenses of approximately $15 million, or $0.02 per share, due to refinancing and capital expenditures. Additionally, the company has forecasted capital spending of $600 million, primarily focused on development and redevelopment projects, with a significant emphasis on internal growth through leasing and strategic investments.Healthpeak Properties Corporate Events
Private Placements and FinancingM&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Healthpeak Properties Reports Strong 2024 Financial Results
Positive
Feb 3, 2025
Healthpeak Properties, Inc. reported its financial results for the fourth quarter and year ended December 31, 2024, on February 3, 2025. The company announced a 1.7% increase in its quarterly common stock cash dividend and highlighted strong leasing performance with over 8 million square feet of lease executions for the year. The company achieved significant merger-related synergies from its merger with Physicians Realty Trust and reported a record year in CCRC performance. Healthpeak also extended the maturity of its $3 billion revolving credit facility to 2029 and secured new sustainability certifications and recognitions.
Executive/Board Changes
Healthpeak Properties Announces COO Retirement Plan
Neutral
Feb 3, 2025
Healthpeak Properties announced the retirement of its Chief Operating Officer, Thomas Klaritch, effective March 1, 2025. Klaritch will continue to provide consulting services until the end of 2025, aiding in the transition of his responsibilities, and receive retirement benefits contingent on a Retirement and Release Agreement.
Private Placements and FinancingBusiness Operations and Strategy
Healthpeak Properties Secures $3 Billion Credit Extension
Positive
Dec 9, 2024
Healthpeak Properties has successfully amended and extended its $3 billion revolving credit facility, which now matures in January 2029, with options to extend further. The facility, which bears interest at SOFR plus 77.5 basis points, supports Healthpeak’s growth initiatives and highlights the company’s robust financial standing. This move reflects strong lender support, as over $5 billion in commitments were offered, underscoring Healthpeak’s dedication to long-term shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.