Healthpeak Properties Q2 2025 Earnings Call Highlights: Strong Financial Performance and Same-Store Growth

Healthpeak Properties Inc (DOC) reported Q2 2025 earnings with FFO as adjusted at $0.46 per share and AFFO at $0.44 per share. The company achieved 3.5% total portfolio same-store growth and 8.6% CCRC same-store growth driven by rate growth and higher entrance fee sales. However, the Lab segment experienced a decline in same-store occupancy due to lease expirations and tenant departures.

Healthpeak Properties, Inc. (DOC) reported its second-quarter 2025 earnings with FFO as adjusted at $0.46 per share and AFFO at $0.44 per share. The company achieved a total portfolio same-store growth of 3.5%, driven by strong performance in the CCRC segment, which saw an 8.6% increase in same-store growth. This growth was attributed to rate growth and higher entrance fee sales. However, the lab segment experienced a decline in same-store occupancy due to lease expirations and tenant departures [1].

The company's total revenues for the quarter were $694.3 million, slightly missing the Zacks Consensus Estimate of $694.6 million. This figure also declined year over year. Healthpeak executed new and renewal leases totaling 503,000 square feet in the outpatient medical portfolio, with a retention rate of 85% and positive 6% cash-releasing spreads on renewals. In the lab portfolio, 503,000 square feet of leases were executed, with retention at 87% and positive 6% cash-releasing spreads on renewals [1].

Healthpeak's interest expenses increased year over year to $75.1 million, which slightly affected the overall results. The company exited the quarter with cash and cash equivalents of $89.4 million, up from $70.6 million as of March 31, 2025. Its net debt to adjusted EBITDA ratio was 5.2X as of June 30, 2025. In June 2025, Healthpeak repaid $452 million as 4% senior notes at maturity [1].

The company reaffirmed its guidance for 2025, expecting its FFO as adjusted per share to be between $1.81 and $1.87. The Zacks Consensus Estimate is currently pegged at $1.85 per share, within expectations. Healthpeak expects its total merger-combined same-store cash (adjusted) NOI growth to be in the range of 3-4% [1].

Healthpeak Properties, Inc. carries a Zacks Rank #4 (Sell). The company's management highlighted the completion of an enterprise-wide technology upgrade, which is expected to serve as a foundation for rapid deployment of AI capabilities and improved data integration. The company also reported that it is on track to exceed the high end of its segment guidance for the CCRC portfolio, with year-to-date same-store growth of 12% [2].

The company's outlook remains cautious, particularly for the lab segment, which faces ongoing headwinds due to tenant capital raising challenges and lease expirations. However, management remains confident in the outpatient and CCRC segments, supported by recent positive developments and a diversified tenant base [2].

References:
[1] https://www.nasdaq.com/articles/healthpeak-q2-ffo-meets-estimates-same-store-noi-rises-y-y
[2] https://seekingalpha.com/news/4472401-healthpeak-anticipates-ccrc-same-store-growth-to-exceed-guidance-high-end-while-expanding-ai