Healthpeak Q4 FFO Beats Estimates, Same-Store NOI Rises Y/Y

Healthpeak Properties, Inc. DOC reported fourth-quarter 2025 funds from operations (FFO) as adjusted per share of 47 cents, beating the Zacks Consensus Estimate of 45 cents. The figure compared favorably with the prior-year quarter’s 46 cents.

Results reflect better-than-expected revenues and growth in total merger-combined same-store cash (adjusted) net operating income (NOI). Higher interest expenses affected the results to some extent.

This healthcare real estate investment trust (REIT) generated revenues of $719.4 million, beating the Zacks Consensus Estimate of $699.5 million. The figure increased 3.1% year over year.

In 2025, FFO, as adjusted, was $1.84 per share, surpassing the Zacks Consensus Estimate of $1.83. The reported figure improved 1.7% year over year. Full-year revenues of $2.82 billion rose 4.5% from the previous year.

The company outlined a strategic initiatives update. The REIT announced the formation of Janus Living, Inc., a senior housing REIT, and its subsequent planned initial public offering (IPO). DOC is actively restructuring its portfolio through the sale of stabilized assets and plans to divest the sale proceeds into value-accretive investments. The company also highlighted its focus on technology innovation initiatives aimed at automation, superior and faster decision making and better service to clients.

Behind DOC’s Earnings Headlines

In the fourth quarter, Healthpeak reported 3.9% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.

DOC witnessed 4.1% and 16.7% 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 0.3%.

During the reported quarter, Healthpeak executed new and renewal leases totaling 333,000 square feet, with negative 1.7% cash-releasing spreads on renewals in the lab portfolio.

For the outpatient medical portfolio, new and renewal leases aggregated 1.8 million square feet, with positive 4.4% cash-releasing spreads on renewals.

Interest expenses jumped 14.4% year over year to $80.6 million.

DOC’s Balance Sheet

Healthpeak exited the fourth quarter with cash and cash equivalents of $467.5 million, significantly up from $91 million as of Sept. 30, 2025. Its net debt to adjusted EBITDAre was 5.2X as of Dec. 31, 2025.

DOC’s 2026 Outlook

The company expects FFO as adjusted per share to be between $1.70 and $1.74. The Zacks Consensus Estimate is presently pegged at $1.84, which is above expectations.

The total merger-combined same-store cash (adjusted) NOI growth is estimated to be in the range of negative 1% to 1%.

Healthpeak currently carries a Zacks Rank #3 (Hold).

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 REITs, such as Digital Realty Trust DLR and Welltower, Inc. WELL, slated to report. on Feb. 5 and Feb. 10, respectively.

The Zacks Consensus Estimate for Digital Realty’s fourth-quarter 2025 FFO per share is pegged at $1.83, indicating a 5.8% year-over-year rise. DLR currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s fourth-quarter 2025 FFO per share is pegged at $1.44, implying a 27.4% year-over-year increase. WELL currently carries 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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