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

Healthpeak Properties, Inc. DOC is slated to report its second-quarter 2025 results on July 24, after market close. Its quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.

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 better-than-anticipated revenues. Moreover, 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 three occasions and met in one period, with the average beat being 1.69%. The graph below depicts this surprise history:

Healthpeak Properties, Inc. Price and EPS Surprise

Healthpeak Properties, Inc. price-eps-surprise | Healthpeak Properties, Inc. Quote

Factors at Play for Healthpeak

The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities have promoted 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, aiding revenue growth in the second quarter.

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 that include independent living, assisted living and skilled nursing units, is anticipated to have benefited from this positive expenditure trend, supporting the segment’s quarterly performance.

For the second quarter, the Zacks Consensus Estimate for DOC’s rental and related revenues currently stands at $539.5 million, implying a decline of 1.3% from the prior-year period’s reported figure.

The Zacks Consensus Estimate for second-quarter total revenues is pegged at $697.5 million, indicating a rise of 0.3% from the year-ago reported number.

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

Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 46 cents over the past three months. However, the figure suggests a 2.22% increase from the year-ago quarter’s tally.

What Our Quantitative Model Predicts for Healthpeak

Our proven model does not 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 0.00% 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 other REIT industry — Welltower WELL and American Tower AMT — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Welltower is slated to report quarterly numbers on July 28. WELL has an Earnings ESP of +0.80% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Tower is slated to report quarterly numbers on July 29. AMT has an Earnings ESP of +2.08% and carries a Zacks Rank of 2 at present.

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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This article originally published on Zacks Investment Research (zacks.com).

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