Group 1 - The S&P 500 has experienced a decline of nearly 9% since reaching an all-time high on February 19th, indicating a return of market volatility [2] - Not all stocks are affected equally by market fluctuations, with 'Magnificent 7' stocks showing significant changes in share price [2] Group 2 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1]

Industry Overview - Healthcare is a consistently in-demand industry, making it a preferred choice for long-term investors, as healthcare stocks tend to outperform inflation approximately 50% of the time during volatile periods [1] Investment Opportunities in Healthcare REITs - Healthcare REITs are attractive for investors seeking to enhance their portfolios while mitigating inflation effects, as they are required to pay dividends, making them valuable income-generating assets [2] - Welltower Inc. (NYSE: WELL) has a market capitalization exceeding $96 billion and offers a dividend yield of 1.78%, although it is speculated to be slightly overvalued [3][4] - Healthpeak Properties (NYSE: DOC) has a 6.04% dividend yield and has diversified its holdings beyond senior housing to include laboratory and outpatient medical care real estate, with a predicted 20% upside in the next year [6][7] - Omega Healthcare Investors (NYSE: OHI) manages over $10 billion in properties, including more than 1,000 facilities across the U.S. and U.K., and offers a dividend yield of 7.29% with a potential upside of 13.38% [10][11] - LTC Properties (NYSE: LTC) focuses on senior housing and skilled nursing properties, with a dividend yield of 6.55% and a Buy rating from analysts, anticipating a 13.87% upside [12][14]

Core Viewpoint - Healthpeak Properties, Inc. reported a fourth-quarter 2024 FFO per share of 46 cents, slightly exceeding expectations, with year-over-year performance remaining stable [1][3]. Financial Performance - The company generated revenues of $698 million, surpassing the Zacks Consensus Estimate of $694 million, marking a 26.1% increase year over year [3]. - Full-year revenues reached $2.70 billion, reflecting a 23.8% growth from the previous year [3]. - The adjusted FFO for 2024 was $1.81 per share, consistent with the Zacks Consensus Estimate, and showed a 1.7% improvement year over year [3]. Operational Highlights - Healthpeak experienced a 5.4% year-over-year growth in total merger-combined same-store cash (adjusted) NOI during the fourth quarter [4]. - The outpatient medical and lab segments reported year-over-year NOI growth of 3.1% and 4.9%, respectively, while the CCRC segment saw a significant increase of 22.3% [4]. - The company executed new and renewal leases totaling 652,000 square feet for lab space and 879,000 square feet for the outpatient medical portfolio [5]. Cost and Expenses - Interest expenses rose by 33.6% year over year to $70.5 million, impacting overall financial results [5]. Balance Sheet - As of December 31, 2024, Healthpeak had cash and cash equivalents of $119.8 million, down from $180.4 million at the end of the previous quarter [6]. - The net debt to adjusted EBITDAre ratio stood at 5.2X [6]. Dividend Information - The board declared a quarterly cash dividend of 30.5 cents per common share, representing a 1.7% increase from the prior quarter, payable on February 26, 2025 [7]. 2025 Guidance - The company anticipates FFO as adjusted per share to range between $1.81 and $1.87, aligning with the Zacks Consensus Estimate of $1.86 [8]. - Expected growth for total merger-combined same-store cash (adjusted) NOI is projected to be between 3.0% and 4.0% [8].

Core Insights - Healthpeak Properties reported mixed earnings for Q4 2024, with net income per share of $0.01 missing analyst expectations, while revenue of $698 million exceeded estimates [2][3][8] - The company achieved a year-over-year revenue growth of 26%, driven by strategic mergers and strong leasing metrics [7][8] Financial Performance - Net income per share decreased by 92% year-over-year from $0.13 to $0.01 [4] - Nareit funds from operations (FFO) fell 8.3% year-over-year to $0.44 per share [4][8] - Revenue for Q4 2024 was $698 million, compared to $554 million in Q4 2023 [4] Business Overview and Strategy - Healthpeak Properties focuses on healthcare real estate, including outpatient medical facilities, senior housing, and life science properties, with a portfolio of over 278 properties across 32 states [5] - The company has a leasing occupancy rate of 94% and utilizes triple-net leases to ensure stable cash flow [5] - A recent merger with Physicians Realty Trust has expanded Healthpeak's property portfolio and operational scale, aligning with trends favoring outpatient services [6] Operational Highlights - In Q4 2024, Healthpeak achieved $50 million in merger synergies, exceeding initial expectations [7] - The company leased over 652,000 square feet of lab space, indicating strong market demand [7] Dividend and Shareholder Value - Healthpeak announced a 1.7% increase in quarterly dividends to $0.305 per share and plans to transition to a monthly dividend structure starting April 2025 [9] Future Outlook - For 2025, Healthpeak projects diluted EPS between $0.30 and $0.36, with Nareit FFO per share expected to range from $1.81 to $1.87, indicating a stable outlook [13] - Management anticipates same-store cash NOI growth between 3% and 4%, focusing on outpatient facilities to drive positive results [14]

Core Viewpoint - Healthpeak Properties, Inc. is positioned for growth due to strong demand for lab assets and increasing healthcare expenditure among senior citizens, although it faces competition and high debt levels [1][7][9]. Group 1: Growth Drivers - The demand for lab real estate is bolstered by rising life expectancy and biopharma drug development opportunities, with a 2.8% year-over-year growth in the lab portfolio's same-store cash net operating income in Q3 2024 [3]. - The CCRC portfolio, which includes independent living, assisted living, and skilled nursing units, has significant upside potential due to the expected increase in the senior citizen population, with an occupancy rate of 85.2% in Q3 2024 [4]. - Healthpeak's liquidity position is strong, with approximately $3.18 billion available and a net debt-to-adjusted EBITDAre ratio of 5.1x, allowing for favorable access to capital markets [5]. Group 2: Financial Performance - Healthpeak's shares have increased by 9% over the past year, outperforming the industry, which saw a decline of 0.4%, with analysts revising the 2024 funds from operations (FFO) per share to $1.81 [6]. - The company maintains favorable long-term credit ratings of Baa1 (Stable) from Moody's and BBB+ (Stable) from S&P Global as of September 30, 2024, facilitating access to debt and equity markets [5]. Group 3: Challenges - Healthpeak faces significant competition in the healthcare services market, which may limit its ability to raise rents and impact revenue and profitability [7]. - The company is burdened with substantial debt, approximately $8.58 billion as of September 30, 2024, and operates in a high-interest-rate environment that increases borrowing costs [9].

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Group 1 - Brad Thomas, along with HOYA Capital, leads the investing group iREIT®+HOYA Capital, focusing on REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives [1] - The team of analysts has over 100 years of combined experience, including professionals from diverse backgrounds such as hedge fund management and military service [1] - Brad Thomas has over 30 years of real estate investing experience, having been involved in over $1 billion in commercial real estate transactions [2] Group 2 - Brad Thomas has been featured in major media outlets like Barron's, Bloomberg, and Fox Business, and is the author of four books, including "REITs For Dummies" [2]

Financial Data and Key Metrics Changes - Healthpeak Properties reported adjusted FFO of $0.45 per share and AFFO of $0.41 per share for Q3 2024, with total portfolio same-store growth of 4.1% [9][10] - The company increased its FFO as adjusted guidance by $0.01 to a range of $1.79 to $1.81 and AFFO guidance by $0.01 to a range of $1.56 to $1.58 [13] Business Line Data and Key Metrics Changes - The lab business signed over 700,000 square feet of leases since July 1, with positive 10% cash re-leasing spreads in Q3 [5][9] - Outpatient medical business reported same-store growth of 3.4%, with a strong demand for cost-effective outpatient care [11][45] - Continuing Care Retirement Communities (CCRC) reported same-store growth of 14.2%, driven by occupancy and rate growth [11] Market Data and Key Metrics Changes - Employment in the life science sector increased by 4% over the past 18 months, with venture capital fundraising on pace for an all-time high in 2024 [6] - The company noted that South San Francisco remains its strongest market, with significant leasing activity [5] Company Strategy and Development Direction - The company is focusing on four levers for future earnings growth: merger synergies, leasing momentum in the lab business, outpatient medical business, and capital allocation [4][8] - Healthpeak is looking to allocate capital to life sciences again through structured investments, with a pipeline of new outpatient development projects [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture demand in the life science sector, citing strong tenant relationships and a robust pipeline [5][6] - The company anticipates continued growth in earnings per share, driven by strategic initiatives and favorable market conditions [8][9] Other Important Information - The company ended the quarter with a net debt-to-EBITDA ratio of 5.1 times and $3 billion in liquidity, indicating a strong balance sheet [12] - Healthpeak plans to publish an investor presentation in early November focusing on competitive positioning and growth drivers [13] Q&A Session Summary Question: Can you quantify the leasing at Gateway, Vantage, Portside? - The total square footage for new leases at these locations is around 340,000 square feet, with an increase of approximately 240,000 square feet in net absorption [15] Question: What are the broader trends in the lab market? - There has been good funding in the lab market, with an increase in IPOs and venture capital fundraising, which is expected to drive leasing demand [18] Question: What opportunities are seen in structured investments? - The company is looking at structured investments to provide immediate accretion and time to lease up buildings, with a potential allocation of several hundred million dollars [30][31] Question: How much of the leasing is from existing tenants? - About 71% of the leasing activity in the quarter came from existing tenants, indicating strong demand across the portfolio [32] Question: What are the expectations for the lab portfolio development pipeline? - The company controls nearly 5 million square feet of potential life science development but does not expect to start new projects in the near future due to tight economics [66]

Healthpeak Properties, Inc. (DOC) reported third-quarter 2024 funds from operations (FFO) as adjusted per share of 45 cents, beating the Zacks Consensus Estimate by a penny. The reported figure remained unchanged from the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income (NOI) was witnessed across the portfolio. However, higher interest ...