Denver, Colorado-based Healthpeak Properties, Inc. (DOC) is a diversified real estate investment trust that owns and develops healthcare real estate for Lab, Outpatient Medical, and Continuing Care Retirement Community ("CCRC") tenants. With a market cap of $14.1 billion, Healthpeak operates and holds interests in hundreds of properties across the U.S.
Companies worth $10 billion or more are generally described as “large-cap stock,” Healthpeak Properties fits this bill perfectly. Given its decades-long history and extensive operations, Healthpeak’s valuation above this mark is unsurprising. It focuses on simple strategy, unwavering focus and deliberate actions to enable the consistent execution of its vision for long-term growth.
However, the REIT major has fallen to a lofty perch, with its stock tanking over 13.2% from its 52-week high of $23.26 touched on Oct. 24. Furthermore, DOC stock has plunged 10.6% over the past three months, underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 9.6% decline during the same time frame.
Over the longer term, Healthpeak has gained nearly 4.9% in the past six months, slightly lagging behind XLRE’s 5.4% gains during the same time frame. Meanwhile, over the past 52 weeks, DOC gained 2.4% marginally outperforming XLRE’s 2% returns.
To confirm the overall uptrend and recent downturn, DOC stock has traded mostly above its 200-day moving average since early May and remained below its 50-day moving average since early November with minor fluctuations.
Despite reporting impressive revenue growth, Healthpeak Properties’ stock prices dipped 3.1% in the trading session after the release of its Q3 results on Oct. 24. Driven by a massive 30.3% year-over-year surge in rental and related revenues to $543.3 million, its overall total revenues grew by a staggering 25.9% compared to the year-ago quarter to $700.4 million.
Healthpeak reported a 4.1% increase in same-store NOI, yet its profitability was hindered by rising interest expenses. Moreover, while the company achieved a 27.5% year-over-year growth in adjusted funds from operations (FFO) to $320.8 million, the adjusted FFO per share remained flat at $0.45 due to the expanded share count, which likely failed to impress investors.
Healthpeak Properties has substantially lagged behind its peer Omega Healthcare Investors, Inc.’s (OHI) 14.9% gains over the past six months and a 23.6% surge over the past year.
Among the 19 analysts covering the DOC stock, the consensus rating is a “Moderate Buy.” Its mean price target of $25.19 indicates a 24.8% upside potential from current price levels.
