Healthpeak Q2 FFO Meets Estimates, Same-Store NOI Rises Y/Y

Healthpeak Properties, Inc. DOC reported second-quarter 2025 funds from operations (“FFO”) as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. The metric was 45 cents per share in the prior-year quarter.

Results reflect lower-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 $694.3 million, marginally missing the Zacks Consensus Estimate of $694.6 million. The figure also slightly declined year over year.

Behind DOC’s Earnings Headlines

In the second quarter, Healthpeak reported 3.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.

DOC witnessed 3.9% and 1.5% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI for its outpatient medical and lab segments, respectively. The CCRC segment reported growth of 8.6%.

During the reported quarter, Healthpeak executed new and renewal leases totaling 503,000 square feet, with retention at 87% and positive 6% cash-releasing spreads on renewals in the lab portfolio.

For the outpatient medical portfolio, new and renewal leases aggregated 1 million square feet, with retention at 85% and positive 6% cash-releasing spreads on renewals.

However, interest expenses marginally jumped year over year to $75.1 million.

DOC’s Balance Sheet

Healthpeak exited the second quarter with cash and cash equivalents of $89.4 million, up from $70.6 million as of March 31, 2025. Its net debt to adjusted EBITDAre was 5.2X as of June 30, 2025.

In June 2025, Healthpeak repaid $452 million as 4% senior notes at maturity.

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 $1.85 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-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 and Ventas, Inc. VTR, slated to report on July 28 and July 30, respectively.

The Zacks Consensus Estimate for Welltower’s second-quarter 2025 FFO per share is pegged at $1.22, implying a 16.2% year-over-year increase. WELL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Ventas’ second-quarter 2025 FFO per share is pinned at 85 cents, indicating a 6.3% rise year over year. VTR currently has a Zacks Rank #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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This article originally published on Zacks Investment Research (zacks.com).

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