Healthpeak Properties, Inc. (DOC), headquartered in Denver, Colorado, owns, operates, and develops high-quality real estate focused on healthcare discovery and delivery. Valued at $14.94 billion by market cap, the company owns and develops healthcare real estate for Lab, Outpatient Medical, and CCRC tenants. It has over $20 billion of owned real estate.
The leading healthcare REIT have underperformed the broader market considerably over the past year. DOC has gained 1.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. In 2024 alone, DOC stock is up 8.1%, while the SPX is up 11.5% on a YTD basis.
Narrowing the focus, DOC’s underperformance is also apparent compared to the S&P 500 Real Estate Sector SPDR (XLRE). The exchange-traded fund has gained 11.4% over the past year. However, the stock’s gains on a YTD basis outshine the ETF’s 3.8% returns over the same time frame.
On Jul. 25, DOC reported its Q2 results. Its funds from operations were $320.20 million or $0.45 per share, beating the consensus estimates of $0.44. The company’s net income and EPS came in at $145.8 million and $0.21, respectively. Meanwhile, its revenue was $695.50 million, beating the Wall Street expectations of $660.60 million. DOC expects full-year funds from operations between $1.77 and $1.81. DOC shares closed up more than 5% in the session following the day the results were released.
For the current fiscal year, ending in December, analysts expect DOC to report an FFO growth of 0.6% to $1.79 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 17 analysts covering DOC stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration has been consistent over the past three months.
Recently, Evercore ISI reaffirmed its “Outperform” rating on DOC stock and raised its price target from $23 to $24, implying a potential upside of 12.1% from current levels.
The mean price target of $22.93 represents a 7.1% upside from DOC’s current price levels. The Street-high price target of $26 suggests an upside potential of 21.4%.
On the date of publication, Dipanjan Banchur 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.
