Denver, Colorado-based Healthpeak Properties, Inc. (DOC) is a fully integrated REIT that owns, operates, and develops high-quality real estate focused on healthcare discovery and delivery. Valued at a market cap of $12.2 billion, the company focuses on three core private-pay healthcare sectors, including life science, medical office, and continuing care retirement communities (CCRCs).
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and DOC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - healthcare facilities industry. The company's prime locations in top U.S. innovation hubs like Boston, San Diego, and San Francisco give it access to leading healthcare systems, biotech firms, and research institutions, ensuring strong demand and stable long-term tenancy. Backed by an investment-grade balance sheet, disciplined capital allocation, and strong asset management expertise, DOC is well-positioned to benefit from growing healthcare demand, demographic trends, and the continued expansion of life sciences research and outpatient care.
This healthcare facilities REIT has slipped 24.8% from its 52-week high of $23.26, reached on Oct. 24, 2024. Shares of DOC have declined 12.7% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 6.3% return during the same time frame.
In the longer term, DOC has fallen 9.1% over the past 52 weeks, underperforming SPX’s 10.3% rise over the same time frame. Moreover, on a YTD basis, shares of DOC are down 13.7%, compared to SPX’s 2.4% uptick.
To confirm its bearish trend, DOC has been trading below its 200-day moving average since mid-December, 2024, with slight fluctuations, and has remained below its 50-day moving average since mid-November, 2024, with minor fluctuations.
On Apr. 24, Healthpeak Properties released its Q1 results, and its shares plunged 5.2% in the following trading session. The company’s revenue rose 15.9% year-over-year to $702.9 million and marginally surpassed the consensus estimates. Moreover, its FFO as adjusted of $0.46 per share grew 2.2% from the prior-year quarter and aligned with Wall Street forecasts. Robust growth in its rental and related revenues, higher resident fees, and 3.5% lower cost and expenses acted as tailwinds and led to its strong performance. Looking ahead to fiscal 2025, DOC expects adjusted FFO to range between $1.81 and $1.87 per share.
Healthpeak Properties’ underperformance looks pronounced when compared to its rival, Omega Healthcare Investors, Inc.’s (OHI) 13% rise over the past 52 weeks and 1.5% drop on a YTD basis.
Despite DOC’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 19 analysts covering it, and the mean price target of $22.47 suggests a 28.5% premium to its current price levels.
