Healthpeak Properties Eyeing Q1 Earnings Growth Amid Market Challenges

With a market capitalization of $12.7 billion, Healthpeak Properties, Inc. (DOC) is a prominent real estate investment trust (REIT) focused on acquiring, developing, managing, selling, and leasing a diverse array of healthcare real estate properties. The company is based in Denver, Colorado, and strategically invests in high-demand markets characterized by robust demographic and economic factors that support long-term healthcare requirements. Healthpeak is set to announce its fiscal Q1 earnings for 2025 after the market closes on Thursday, April 24.

Anticipated Q1 Earnings and Recent Performance

Prior to the earnings release, analysts project that Healthpeak will report a profit of $0.46 per share for Q1, reflecting a 2.2% increase from $0.45 per share during the same quarter last year. Notably, Healthpeak has consistently exceeded Wall Street’s earnings estimates over the last four consecutive quarters. In Q4 2024, the company’s earnings per share (EPS) of $0.46 also outstripped forecasts by 2.2%.

Fiscal Year Projections and Market Performance

Looking ahead to fiscal 2025, analysts anticipate DOC will report an annual profit of $1.86 per share, marking a 2.8% increase from $1.81 in fiscal 2024. EPS is expected to rise further, achieving $1.96 in fiscal 2026, which represents a year-over-year growth of 5.4%.

However, over the past 52 weeks, DOC shares have decreased by 2.7%, underperforming the S&P 500 Index ($SPX), which has seen a modest gain of 2.1%. The Real Estate Select Sector SPDR Fund (XLRE) has similarly advanced by 2.1% in the same period.

Q4 Report Highlights and Investor Sentiment

On February 3, Healthpeak announced its Q4 results. Despite beating expectations, shares dropped by 1.6% the next day. The adjusted funds from operations (FFO) were $0.46 per share, consistent with the prior year’s figures and exceeding consensus estimates by 2.2%. Revenue saw a significant year-over-year increase of 26.1%, reaching $698 million and surpassing analyst predictions, thanks to higher rental income, increased resident fees, and growth in interest income. However, investor sentiment may have soured due to a steep 93.8% decline in net income, dropping to $4.4 million, largely caused by a 34.6% rise in total costs and expenses.

Analyst Ratings and Potential Upside

Wall Street analysts maintain a moderately optimistic outlook on DOC’s stock, assigning it a “Moderate Buy” rating overall. Out of 19 analysts following the stock, 12 recommend it as a “Strong Buy,” two advocate for a “Moderate Buy,” and five suggest “Hold.” The average price target set for DOC is $24.88, indicating a potential upside of 36.9% from its current price levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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