Healthpeak's Q1 FFO Meets Estimates, Same-Store NOI Rises

Healthpeak Properties, Inc. (DOC ) reported first-quarter 2025 funds from operations (FFO) as adjusted per share of 46 cents, meeting the Zacks Consensus Estimate. This compares to the FFO of 45 cents reported in the prior year.

Results reflect better-than-anticipated 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 $702.9 million, outpacing the Zacks Consensus Estimate of $691.9 million. The figure climbed 15.9% year over year.

Behind DOC’s Earnings Headlines

In the first quarter, Healthpeak reported 7% year-over-year growth in the total merger-combined same-store cash (adjusted) NOI.

It witnessed 5% and 7.7% 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 15.9%.

During the reported quarter, Healthpeak executed lab new and renewal leases totaling 276,000 square feet, with retention at 88% and +5% cash-releasing spreads on renewals.

For the outpatient medical portfolio, new and renewal leases aggregated 973,000 square feet, with retention at 86% and +4% cash-releasing spreads on renewals. However, interest expenses jumped 19.4% year over year to $72.7 million.

DOC’s Balance Sheet

Healthpeak exited the first quarter with cash and cash equivalents of $70.6 million, down from $119.8 million as of Dec. 31, 2024. Its net debt to adjusted EBITDAre was 5.2X as of March 31, 2025.

Beginning the current year through April 24, the company has repurchased 5.1 million shares at a weighted average price of $18.50 for a total amount of $94 million.

DOC’s 2025 Outlook

The company 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, 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 #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 healthcare REITs, such as Welltower, Inc. WELL and Ventas, Inc. VTR, slated to report on April 28 and April 30, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for Welltower’s first-quarter 2025 FFO per share is pegged at $1.15, implying a 13.7% year-over-year increase. WELL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Ventas’ first-quarter 2025 FFO per share stands at 82 cents, indicating a 5.1% rise year over year. VTR currently has a Zacks Rank #2.

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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