Healthpeak Properties

DOC

Market cap $13.5B

Not Every REIT Joined The Rally: Part 2 focuses on laggards and in-line performers - sectors where recovery timelines slipped, results underwhelmed, or elevated rates exposed lingering balance sheet issues. Weakness centered on Farmland, Commercial Mortgage, Lab Space, and Self-Storage REITs, where delayed troughs, credit provisions, book-value pressure, weak rents, and refinancing constraints persisted. Mortgage Stress Hasn't Fully Cleared: Commercial mortgage REITs still faced multifamily bridge-loan and office credit stress, while residential mortgage REITs saw book values pressured by rate volatility and uneven dividend-coverage.

With a 6.3% yield, REIT stock HealthPeak Properties is among the highest-paying players in the S&P 500, well above the current 1% average.

Healthpeak Properties earns a buy rating, driven by strong capital allocation and a compelling portfolio mix across Outpatient Medical, Labs, and Senior Housing. DOC trades at ~11x P/FFO with a >6% dividend yield, offering both stability and upside from secular and cyclical trends in its segments. Recent moves—like the Janus Living IPO, opportunistic acquisitions, and disciplined share buybacks—unlock value and enhance capital efficiency.

REIT earnings results were considerably better than consensus expectations, with 58 REITs - or 59% - raising full-year FFO guidance, well above the typical Q1 raise rate of 40-45%. REITs have extended their year-to-date outperformance despite the recent jump in interest rates, as better earnings results and improving property-level trends helped offset renewed macro pressure. Upside standouts included Hotel, Senior Housing, Data Center, Billboard, Cold Storage, Net Lease, and Retail REITs. Residential REITs saw improving rent growth trends as supply growth finally eases.

Indexes for US equity real estate investment trusts continued to tick up during the week ended May 8. The broader stock market indexes also logged gains for the recent week, with the S&P 500 up 2.33% and the Dow Jones Industrial Average increasing a slight 0.22%. The retail REIT index was the sole property sector index to close the week in the red, down a small 0.55%.

Healthpeak Properties is still a Buy after the recent rally, supported by strong earnings, a robust dividend, and significant re-rating potential. DOC's Q1 2026 beat on FFO and revenue; completed the Janus Living IPO; and executed major acquisitions, reinforcing portfolio value and future growth prospects. With $1.17 billion in cash and a sustainable 6.2% monthly dividend yield (~70.7% payout ratio), DOC's dividend looks safe despite macroeconomic headwinds, leaving room for more buybacks.

REITs are undervalued and out-of-favor compared to AI-driven tech stocks, creating a contrarian opportunity. Rising construction costs are constraining new supply, increasing the value and pricing power of existing REIT portfolios. Multiple REITs, including AH REALTY TRUST, Chiron Real Estate, Piedmont Realty Trust, and Healthpeak Properties, report higher replacement costs and favorable re-leasing spreads.

Healthpeak Properties NYSE: DOC reported first-quarter 2026 adjusted funds from operations of $0.45 per share and raised its full-year FFO adjusted guidance after completing several major capital allocation moves, including the IPO of its senior housing business, a joint venture recapitalization with Blackstone and a $100 million stock repurchase.

Healthpeak Properties, Inc. (DOC) Q1 2026 Earnings Call Transcript

DOC beats Q1 FFOA estimates as leasing stays strong and Janus Living IPO boosts growth, prompting a higher 2026 outlook.