Healthpeak Earnings: Strong Net Operating Income and Share Repurchases Lead to Outperformance

First-quarter results for no-moat Healthpeak were slightly better than we anticipated, giving us confidence in our $30.50 fair value estimate. Same-store net operating income for the life science portfolio grew 2.7% in the first quarter, ahead of our estimate of 1.0% growth. For the medical office portfolio, same-store NOI grew 2.6%, which was in line with our estimate. While the continuing care retirement community segment only represents 9.3% of total company NOI, the segment saw 26.6% growth in the quarter, leading to total same-store NOI growth of 4.5% that was ahead of our estimate of 1.8% growth. Healthpeak reported adjusted funds from operations of $0.45 per share in the first quarter, four cents better than our $0.41 estimate.