Healthpeak Properties Faces Market Struggles Despite Revenue Growth

Healthpeak Properties, Inc. (DOC), with a market capitalization of approximately $12 billion, is a real estate investment trust (REIT) that specializes in high-quality healthcare-related real estate operations and development.

Stock Performance Overview

Over the past 52 weeks, shares of Healthpeak Properties have notably underperformed compared to the broader market. The stock has declined by 9.1%, while the S&P 500 Index ($SPX) has seen a gain of 8.6%. Year-to-date, DOC is down 14.2%, contrasted with the S&P 500’s rise of 4.3% during the same period.

In a broader context, the company also did not keep pace with the Real Estate Select Sector SPDR Fund (XLRE), which rose by 11.1% over the past year and gained 2.2% year-to-date.

Q1 2025 Financial Highlights

On April 24, following the release of its Q1 2025 results, Healthpeak Properties saw its stock drop by 5.2%. The company reported revenue of $702.9 million, reflecting a 15.9% year-over-year increase and exceeding the consensus estimate of $696.1 million. Adjusted funds from operations (FFO) were reported at $0.46 per share, a 2.2% increase from the previous year, while adjusted available funds from operations (AFFO) were at $0.43 per share, marking a 2.4% year-over-year rise. Looking ahead, the company forecasts adjusted FFO of between $1.81 and $1.87 per share for fiscal 2025.

Analyst Expectations and Ratings

For the current fiscal year ending in December 2025, analysts project an adjusted FFO increase of 2.2% year-over-year, estimating it will reach $1.85 per share. Healthpeak Properties has a solid earnings surprise history, having either met or exceeded consensus estimates in the last four quarters.

Among the 19 analysts tracking DOC stock, the consensus rating stands at “Moderate Buy,” supported by 12 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”

Price Target Adjustments

On April 29, Baird revised Healthpeak Properties’ price target down to $22 while maintaining an “Outperform” rating. Currently, DOC trades below the average price target of $23.70, while the highest target of $29 suggests a potential upside of 68.1% from its current levels.

On the date of publication, Sohini Mondal did not have any positions in the securities mentioned in this article. All information provided is for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

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