Buy Rating Affirmed for Healthpeak Properties Amid Strong Q1 Performance and Raised Financial Guidance

Healthpeak Properties (DOC – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Juan C. Sanabria from BMO Capital maintained a Buy rating on the stock and has a $21.00 price target.

Juan C. Sanabria has given his Buy rating due to a combination of factors indicating a positive outlook for Healthpeak Properties. The company’s first-quarter earnings for 2024 exceeded expectations, with a particularly strong performance reflected in same-store net operating income (SSNOI), which saw a 4.5% increase. This increase was even more notable within their Continuing Care Retirement Communities (CCRCs), which experienced a 2.6% rise excluding specific factors. Furthermore, the company’s full-year earnings guidance for 2024 has been raised modestly above earlier projections, signaling confidence in sustained growth. Additionally, the company is performing better than initially anticipated concerning Year-1 synergy expectations, which is a promising sign for operational efficiency and cost management.

The financial position of Healthpeak Properties is also solid, as evidenced by the $100 million in share repurchases, aligning with planned financial strategies. The report also anticipates further updates on potential dispositions, buybacks, and opportunities for acquisitions in distressed markets, suggesting a proactive and strategic approach to capital allocation. Despite softer lab leasing, which was in line with previous tours and meetings, the overall financial metrics, such as adjusted funds from operations (AFFO) and funds available for distribution (FAD), surpassed both the BMO Capital and consensus estimates. The raised adjusted FFO guidance to $1.78 per share at the midpoint, modestly above the Street and BMO’s expectations of $1.77, and the expected FAD of $1.55, which is also above the projected figures, further support a bullish stance on the stock.

C. Sanabria covers the Real Estate sector, focusing on stocks such as National Health Investors, Healthpeak Properties, and Retail Opportunity Investments. According to TipRanks, C. Sanabria has an average return of -2.4% and a 41.24% success rate on recommended stocks.

In another report released on April 22, Mizuho Securities also initiated coverage with a Buy rating on the stock with a $22.00 price target.

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Healthpeak Properties (DOC) Company Description:

Healthpeak Properties, Inc. is a real estate investment trust, which invests primarily in real estate serving the healthcare industry in the United States. It acquires, develops, leases, sells, and manages healthcare real estate and provides mortgage and other financing to healthcare providers. It operates through the following business segments: Senior Housing Triple-Net, Senior Housing Operating Portfolio (SHOP), Life Science, and Medical Office. The Senior Housing Triple-Net and Operating Portfolio segments manage senior housing facilities, which include independent living, assisted living and memory care facilities, care homes, and continuing care retirement communities by utilizing triple-net leases and RIDEA structures. The Life Science segment contains laboratory and office space primarily for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies, and other organizations involved in the life science industry. The Medical Office segment includes pharmacies, hospital ancillary service space, and outpatient services such as diagnostic centers, rehabilitation clinics, and day-surgery operating rooms. The company was founded in March 1985 and is headquartered in Irvine, CA.