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Investing.com - KeyBanc has reiterated its Sector Weight rating on Healthpeak Properties Inc (NYSE:DOC), as lab occupancy concerns continue to weigh on the healthcare REIT’s performance. According to InvestingPro data, the stock has experienced a significant 9.11% decline over the past week, though it maintains a notable 7.07% dividend yield.
Healthpeak Properties shares have underperformed healthcare REITs by approximately 600 basis points following the company’s second-quarter 2025 earnings report and have lagged the sector by roughly 2,000 basis points year-to-date, according to KeyBanc. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers what really matters for this prominent healthcare REIT.
While Healthpeak’s second-quarter 2025 funds from operations available (FFOA) aligned with consensus expectations and management reaffirmed its 2025 FFOA guidance, the company reported a significant sequential occupancy decrease of 290 basis points within its Lab segment, which represents 35% of its net operating income. Despite these challenges, InvestingPro data shows the company maintains strong financials with a current ratio of 4.01 and has successfully maintained dividend payments for 41 consecutive years.
KeyBanc notes that expected move-outs later this year will continue to pressure occupancy, though this should be mostly offset by signed but not occupied space in the development pipeline projected to commence in the second half of 2025. The firm cautions that additional credit issues from Healthpeak’s lab tenant watchlist would present further downside to occupancy and same-store growth guidance.
Management indicated its Outpatient Medical (TASE:BLWV) segment (55% of NOI) and Continuing Care Retirement Community segment (10%) are tracking ahead of initial expectations, which have helped preserve FFOA guidance, but these segments are projected to decelerate in the second half of 2025.
In other recent news, Healthpeak Properties reported its second-quarter 2025 earnings, which showed a mixed financial performance. The company’s earnings per share (EPS) were $0.05, falling short of the forecasted $0.064 by 21.88%. However, revenue slightly surpassed expectations, coming in at $694.35 million compared to the projected $689.32 million. Additionally, Scotiabank (TSX:BNS) downgraded Healthpeak Properties from Sector Outperform to Sector Perform. This downgrade was influenced by weak leasing performance in the second quarter and concerns about growing laboratory credit risk. These developments have been significant for investors monitoring Healthpeak Properties.
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