Healthpeak Properties Raises Guidance Amid Strong Q2 Results

Healthpeak Properties, Inc. (NYSE: PEAK) has reported a robust second quarter, showcasing notable leasing activity, effective integration of recent mergers, and strategic asset divestitures. The company has adjusted its financial guidance for 2024 for the second time this year, signaling a strong growth outlook.

In the recent quarter, Healthpeak posted funds from operations (FFO) and adjusted funds from operations (AFFO) per share of $0.45 and $0.39, respectively, with a total portfolio same-store growth of 4.5%. The company actively executed capital allocation strategies, including $853 million in outpatient medical asset sales and $188 million in stock repurchases so far in 2024.

### Key Takeaways
– Healthpeak has revised its 2024 FFO as adjusted guidance range to $1.77-$1.81 and its AFFO guidance range to $1.54-$1.58.
– The life science segment secured 800,000 square feet of leases, while the outpatient medical business reported strong growth and early renewals.
– The company completed $853 million in outpatient medical asset sales and repurchased $188 million of its stock in 2024.
– Healthpeak increased its same-store guidance by 25 basis points to between 2.75% and 4.25%.
– Significant early renewal activity, including a partnership with CommonSpirit, has positively impacted FFO.
– The medical office building (MOB) portfolio is projected to expand, with most new leases featuring 3% escalators.

### Company Outlook
– Healthpeak expects improvements in lab leasing and acceleration in outpatient medical growth in upcoming quarters.
– The company currently has over 600,000 square feet under letters of intent and an additional 200,000 square feet of leases signed in July within the life science sector.
– There are approximately 1.5 million square feet available for leasing in the development and redevelopment portfolio.

### Bearish Highlights
– Earnings may be slightly affected due to new lease commencements and the expiration of free rent periods.
– A deal yielded an estimated 6% return, which is lower than the portfolio average.

### Bullish Highlights
– Strong relationships with health systems are unlocking new development prospects.
– The life science leasing pipeline remains solid, showing encouraging signs of capital generation in the biopharma sector.
– The high-quality portfolio is largely leased, with a stabilized yield of 7.5% anticipated on a nearly fully-leased new development project.

### Q&A Highlights
– Executives highlighted the successful integration of the merger and the focus on establishing a strong corporate culture.
– Discussions around leasing activity in the life sciences and outpatient medical sectors showcased Healthpeak’s responsiveness to market dynamics.

In summary, Healthpeak Properties, Inc. has exhibited strong financial performance and strategic growth initiatives during the second quarter, reinforcing its positive outlook in the healthcare real estate sector. The raised guidance and successful asset management underscore the company’s effective leadership and promising trajectory.