Healthpeak Earnings: Management Creates Value for Shareholders With Share Repurchases

Healthpeak reported second-quarter results that were above our estimates for the quarter, which gives us confidence in our $30.50 fair value estimate for the no-moat company. Same-store net operating income for the life science portfolio was up 3.0%, better than our estimate of 2.3% growth. Same-store NOI growth for the medical office portfolio was 3.1% in the second quarter, matching our estimate. Meanwhile, the continuing care retirement community segment continues to perform very well with same-store NOI growth of 20.5%. Combined, Healthpeak reported same-store NOI growth of 4.5% for the total company, which was ahead of our 3.4% estimate for the second quarter. The company also reported adjusted funds from operations of $0.45 per share in the second quarter that was a penny better than our $0.44 estimate.