Healthpeak Properties Faces Market Challenges Amid Strategic Shifts
Overview of Healthpeak Properties
Based in Denver, Healthpeak Properties, Inc. (DOC) stands as a prominent real estate investment trust (REIT) specializing in healthcare properties throughout the United States. With a market cap of $14 billion, the company manages a varied portfolio that includes medical offices, life sciences facilities, and senior housing communities.
Performance Comparison with S&P 500
Over the past year, shares of Healthpeak Properties have significantly lagged behind the broader market. DOC stock has increased by 11.3%, whereas the S&P 500 Index ($SPX) has enjoyed a remarkable rise of nearly 22.8%. Year-to-date in 2025, DOC is slightly down, while the SPX has climbed by 3.4%.
When compared to the Real Estate Select Sector SPDR Fund (XLRE), DOC has performed better, as XLRE has only seen a 10.5% gain over the same period.
Challenges and Strategic Changes
Healthpeak’s struggle to keep pace with the broader market can be attributed to rising interest rates, which have driven up borrowing costs and dampened investor interest in REITs. The company is also undergoing a strategic portfolio transformation, opting to divest from senior housing assets in favor of a stronger focus on medical office and life sciences properties, a move that carries its own risks and challenges.
Fourth Quarter Earnings Report
On February 3, DOC shares fell by 1.4% following the announcement of its Q4 and fiscal 2024 earnings. Healthpeak reported a net income of $0.01 per share for the fourth quarter, while the full year yielded $0.36 per share. The company also declared a 1.7% increase in its quarterly cash dividend, raising it to $0.305 per share.
The fourth quarter saw significant leasing activity, with 1.5 million square feet of new and renewed leases, which included 879,000 square feet for outpatient medical spaces and 652,000 square feet for lab spaces. Additionally, Healthpeak originated loans and other investments totaling around $126 million during the fourth quarter and through January 2025.
Future Earnings Outlook and Analyst Ratings
For the fiscal year ending in December 2025, analysts anticipate an FFO growth of 2.2%, forecasting a diluted FFO of $1.85. Healthpeak’s recent history shows a consistent ability to exceed earnings expectations, having surpassed the consensus estimate in each of the last four quarters.
Among the 19 analysts tracking DOC stock, the consensus rating is a “Moderate Buy,” consisting of 12 “Strong Buy” recommendations, two “Moderate Buy,” and five “Holds.”
Price Target Adjustments
In a recent update, Wells Fargo & Company (WFC) lowered its price target for Healthpeak Properties from $23 to $22, maintaining an “Equal-Weight” rating. This adjustment reflects new analyses of the firm’s AFFO yield spread and re-evaluated NAV estimates within its healthcare and net leasing REIT coverage.
Currently, the mean price target for DOC stands at $24.97, indicating a potential upside of 13% based on its present levels. Meanwhile, a high estimate of $29 suggests an upside potential of 24.1%.
On the date of publication, Kritika Sarmah did not hold positions in any of the mentioned securities. The information in this article is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.
More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
