Denver, Colorado-based Healthpeak Properties, Inc. (DOC) is a leading real estate investment trust (REIT) with a market cap of $15.5 billion. The company specializes in acquiring, developing, and managing a diverse portfolio of healthcare-related properties, including life science, medical office, and continuing care retirement communities (CCRC).
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Healthpeak Properties fits this criterion perfectly. Healthpeak Properties is renowned for its strategic focus on high-quality healthcare real estate, particularly in the life sciences and senior housing sectors. It uniquely positions it to capitalize on the growing demand for healthcare services.
The healthcare REIT's stock, which hit a 52-week high of $22.79 on Sep. 16, has since retreated by 3.4%. However, it has shown resilience with a 13.6% gain over the past three months, outpacing the 7.5% rise in the broader Dow Jones Industrials Average ($DOWI).
However, in the longer term, Healthpeak Properties has experienced a rise of 11.2% on a YTD basis, slightly lagging behind DOWI's 11.6% increase. Additionally, Healthpeak Properties' shares have increased 10.6% over the past 52 weeks, while the DOWI posted a 22.1% return during the same period.
Yet, DOC has shown a bullish price trend, consistently trading above its 50-day moving average since late March and maintaining its position above the 200-day moving average since early May.
Healthpeak Properties has underperformed over the past year primarily due to a combination of slow near-term AFFO growth, rising interest rates impacting real estate valuations, and increased competition in the healthcare REIT sector. However, the stock soared over 5% following its stronger-than-expected Q2 earnings release on Jul. 25, with adjusted FFO per share of $0.45 and a revenue boost to $695.5 million. Additionally, the company raised its 2024 guidance for FFO per share. It indicated improved same-store cash net operating income growth expectations, signaling positive operational momentum and effective integration post-merger with Physicians Realty Trust.
In comparison, Healthpeak Properties has struggled to keep pace with its rival Ventas, Inc. (VTR), which has seen a remarkable 41.4% increase over the past 52 weeks and a 24.7% rise YTD.
Despite DOC’s underperformance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 18 analysts in coverage, and it is currently trading below the mean price target of $23.70.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
