Healthpeak Earnings: Solid Growth From Medical Office and Life Science in Line With Expectations

Healthpeak reported fourth-quarter results that were in line with our expectations, leading us to reaffirm our $30.50 fair value estimate for the no-moat company. The company reported same-store net operating income growth of 3.1% for the medical office portfolio, in line with our estimate for the quarter, and 4.9% growth for the life science portfolio, slightly better than our 4.4% estimate. Combined with 22.3% growth from the continuing care retirement community portfolio, Healthpeak reported total same-store NOI growth of 5.4% in the fourth quarter, the highest figure the company has reported since the third quarter of 2023. Healthpeak reported adjusted funds from operations of $0.46 per share in the quarter, matching our estimate and the figure the company reported in the fourth quarter of 2023.