DOC Financial Analysis

Analysis Date: 1/29/2025

Business Model

Healthpeak Properties generates revenue primarily through rental income from healthcare real estate properties across lab, outpatient medical, and CCRC segments

Revenue Sources

• Rental and related revenues ($543.2M in Q3 2024)
• Resident fees and services ($142.8M in Q3 2024)
• Interest income and other ($14.3M in Q3 2024)

Revenue Distribution by Channel

• Outpatient Medical: 55% of Same-Store NOI
• Lab: 35.5% of Same-Store NOI
• CCRC: 9.5% of Same-Store NOI

Income Statement Analysis

• Total revenues increased 25.9% YoY to $700.4M
• Operating expenses increased 20.4% YoY to $280.3M
• Interest expense increased 46.7% YoY to $74.1M

Balance Sheet Analysis

• Total assets increased 27.2% YTD primarily due to merger with Physicians Realty Trust
• Strong balance sheet with Net Debt to Adjusted EBITDAre of 5.1x

Capital Allocation

The company declared a quarterly cash dividend of $0.30 per share. Management expects approximately $50M in merger-related synergies during 2024. Significant leasing activity with 733,000 square feet of lab lease executions in Q3 and through October 2024.

Management Commentary

Increased the midpoint of both 2024 FFO as Adjusted and AFFO guidance by +$0.01 per share

Increased expected 2024 merger-related synergies to approximately $50 million

Strong leasing momentum with 733,000 square feet of lab lease executions

Overall Sentiment: Positive with strong operational execution and increased guidance

Recommendation

Rating: Buy

Reason for Rating: Strong operational performance, increased guidance, and successful merger integration support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/29/2025, 5:23:01 AM