Why Is Healthpeak (PEAK) Up 14.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Healthpeak (PEAK). Shares have added about 14.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Healthpeak due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Healthpeak Q1 FFO & Revenues Beat Estimates, NOI Rises
Healthpeak Properties reported first-quarter 2020 FFO as adjusted of 45 cents per share, surpassing the Zacks Consensus Estimate of 44 cents. The reported figure also compared favorably with FFO as adjusted in the prior-year quarter of 44 cents per share.
The healthcare REIT generated revenues of $585.15 million, outpacing the Zacks Consensus Estimate of $530.11 million. Moreover, the figure was higher than the year-ago number of 436.15 million.
Results were supported by the decent performance of its life science and medical office segments.
Behind the Headlines
Healthpeak witnessed a 2% year-over-year rise in the three-month cash SPP NOI. It registered 3.1% growth in life-science cash NOI, 2% rise in the medical office segment, 4.2% advancement in other non-reportable segments and a 0.1% decline in senior-housing segment cash NOI.
Healthpeak had cash and cash equivalents of $783.5 million as of Mar 31, 2020, up from $144.2 million recorded at the end of 2019.
Notable Portfolio Activities in Q1
In January 2020, the company closed the previously-announced transaction with Brookdale Senior Living, acquiring Brookdale's 51% interest in 13 CCRCs for $641 million (including the payment of a $100-million management termination fee) and the sale of a triple-net portfolio, consisting 18 properties, for $405 million.
In March 2020, the company signed a long-term lease for 32,000 square feet at its 75 Hayden development project in Boston, MA. Notably, the 214,000-square-foot Class A development project is anticipated to be delivered in fourth-quarter 2020 and is presently 72% pre-leased.
In January 2020, it executed a long-term lease with Janssen BioPharma, Inc., for around 60% of Phase II of The Shore at Sierra Point.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Healthpeak has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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