Healthpeak Properties, Inc. DOC is slated to report its first-quarter 2026 results on May 5, after market close. The company’s quarterly results are likely to display a year-over-year fall in revenues and funds from operations (FFO) per share.
In the last reported quarter, this healthcare real estate investment trust (REIT) posted an FFO as adjusted per share of 47 cents, which beat the Zacks Consensus Estimate of 45 cents. Results reflected better-than-anticipated revenues. Growth in total merger-combined same-store cash (adjusted) net operating income was witnessed across the portfolio.
In the preceding four quarters, Healthpeak’s FFO, as adjusted per share, surpassed the Zacks Consensus Estimate on two occasions and met in the remaining periods, with the average beat being 1.67%. The graph below depicts this surprise history:
Healthpeak Properties, Inc. Price and EPS Surprise
Healthpeak Properties, Inc. price-eps-surprise | Healthpeak Properties, Inc. Quote
Factors at Play for Healthpeak
The increasing life expectancy of the U.S. population and biopharma drug development growth opportunities have promoted the lab real estate market fundamentals. Healthpeak’s focus on the lab segment is a strategic fit and is expected to have benefited from this tailwind.
Moreover, the senior citizen population is on the rise, and the healthcare expenditure of this age cohort is usually on the higher end compared with the general population. Healthpeak’s life plan communities, which refer to its retirement communities that include independent living, assisted living, memory care and skilled nursing units, is anticipated to have benefited from this positive expenditure trend, supporting the segment’s quarterly performance.
However, high interest expenses during the first quarter are likely to have been a spoilsport for Healthpeak. The company’s operators contend with peers for occupancy. This would have likely hurt Healthpeak’s power to raise rents and affect revenues and profitability.
DOC’s Projections for Q1
For the first quarter, the Zacks Consensus Estimate for DOC’s rental and related revenues stands at $530.72 million, indicating a fall of 1.4% from the year-ago reported number.
The Zacks Consensus Estimate for DOC’s interest income and revenues currently stands at $15.69 million, implying a marginal rise from the prior-year period’s reported figure.
The Zacks Consensus Estimate for first-quarter total revenues is pegged at $671.93 million, indicating a decline of 4.4% from the year-ago reported number.
Before the first-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has decreased a cent to 43 cents over the past month. The figure suggests 6.52% fall from the year-ago quarter’s tally.
What Our Quantitative Model Predicts for Healthpeak
Our proven model does not conclusively predict a surprise in terms of FFO per share for DOC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Healthpeak currently has an Earnings ESP of -1.55% and carries a Zacks Rank of #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector, Host Hotels & Resort HST and Terreno Realty TRNO, you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
HST is slated to report quarterly numbers on May 6. HST has an Earnings ESP of +0.98% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TRNO is slated to report quarterly numbers on May 6. TRNO has an Earnings ESP of +0.50% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report
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Healthpeak Properties, Inc. (DOC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).