Wedbush has revised its price target for Healthpeak Properties (DOC, Financial), reducing it from $24 to $22, while maintaining an Outperform rating. This adjustment comes amidst stronger than anticipated same-store growth in the first quarter and a reaffirmation of funds from operations (FFO) guidance, factors that were nevertheless received negatively by the market. The anticipated slowdown in growth for the rest of the year appears to have influenced market sentiment.
Additionally, a frank assessment from Healthpeak's management regarding the turbulent nature of the biopharma sector contributed to a decline of over 5% in the stock price last Friday. Despite these developments, Wedbush expressed surprise at the market's reaction, noting that the challenging conditions in the biopharma landscape are well known to investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Healthpeak Properties Inc (DOC, Financial) is $21.85 with a high estimate of $26.00 and a low estimate of $18.00. The average target implies an upside of 22.52% from the current price of $17.83. More detailed estimate data can be found on the Healthpeak Properties Inc (DOC) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Healthpeak Properties Inc's (DOC, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Healthpeak Properties Inc (DOC, Financial) in one year is $22.06, suggesting a upside of 23.72% from the current price of $17.83. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Healthpeak Properties Inc (DOC) Summary page.
DOC Key Business Developments
Release Date: April 25, 2025
- FFO as Adjusted: $0.46 per share.
- AFFO: $0.43 per share.
- Total Portfolio Same-Store Growth: 7%.
- Outpatient Medical Same-Store Growth: 5%.
- Lab Same-Store Growth: 7.7%.
- CCRCs Same-Store Growth: 15.9%.
- Net Debt to EBITDA: 5.2 times.
- Available Liquidity: $2.8 billion.
- Unsecured Notes Issuance: $500 million at 5.375% rate.
- FFO Adjusted Guidance: $1.81 to $1.87 per share.
- Blended Portfolio Same-Store Growth Guidance: 3% to 4%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Healthpeak Properties Inc (DOC, Financial) maintained its FFO guidance for 2025, reflecting confidence in its diversified portfolio.
- The company reported strong performance in its Outpatient Medical and Senior Housing segments, with same-store growth of 5% and 16%, respectively.
- Healthpeak Properties Inc (DOC) successfully internalized property management, adding 4.5 million square feet since January 1, which has been financially and strategically beneficial.
- The company executed nearly 1 million square feet of leases in the Outpatient Medical segment during the first quarter, indicating strong demand.
- Healthpeak Properties Inc (DOC) has a robust balance sheet with a net debt to EBITDA ratio of 5.2 times and $2.8 billion of available liquidity, positioning it well for long-term success.
Negative Points
- The Lab business, which represents 35% of Healthpeak Properties Inc (DOC)'s income, is facing challenges due to regulatory uncertainty and a difficult capital raising environment.
- There is potential for deceleration in same-store growth in the Lab segment as benefits from internalization and free rent normalize.
- The company acknowledged that some tenants might delay leasing decisions due to the current market environment, which could impact future leasing activity.
- Healthpeak Properties Inc (DOC) has stepped back to reassess risk-adjusted returns on its life science loan pipeline, indicating potential challenges in this area.
- The company faces uncertainty in the biopharma sector due to regulatory and market instability, which could affect future performance.
