Skip to Content

Healthpeak Properties Inc PEAK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

REIT Investors Need Not Worry About the Potential Elimination of the 1031 Exchange

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

While the Biden administration's proposed elimination of the 1031 exchange to raise tax revenue to fund the American Families Plan has caused concern among many real estate investors, we believe that the impact to U.S. REITs will be very limited. Over the past several years, REITs have disposed of tens of billions in assets each quarter and yet only rarely used a 1031 exchange to avoid capital gains taxes. If REITs pay out 90% of taxable income as dividends to shareholders, they avoid paying any corporate taxes. As a pass-through investment vehicle, the dividends paid by REITs are not considered qualified income like dividends paid by most other companies and thus are usually taxed at the highest tax bracket for each shareholder. However, part of the dividend can be reclassified as capital gains and thus taxed at a significantly lower level. Therefore, if the REIT recognizes capital gains on dispositions, the taxes owed by the shareholder on the dividend payment received from the REIT falls.

Read Full Analysis

Company Profile

Business Description

Healthpeak owns a diversified healthcare portfolio of approximately 600 in-place properties spread across senior housing, medical office, life science, hospital, and skilled nursing/post-acute care.

Contact
5050 South Syracuse Street, Suite 800
Denver, CA, 80237
T +1 949 407-0700
Sector Real Estate
Industry REIT - Healthcare Facilities
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 217

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.