Healthpeak Earnings: Realized Cost Synergies From Merger Drive Solid NOI Growth and Guidance Raise

Third-quarter results for Healthpeak were in line with our expectations, leading us to reaffirm our $30.50 fair value estimate for the no-moat company. The company reported same-store net operating income growth of 3.4% for the medical office portfolio and 2.8% for the life sciences portfolio, both of which were relatively in line with our estimates for the quarter. The continuing care retirement community segment saw same-store NOI growth of 14.2%, leading to total company same-store NOI growth of 4.1% for the third quarter. Healthpeak reported adjusted funds from operations of $0.45 per share in the third quarter, which matched our estimate for the quarter and also matched the $0.45 figure the company reported in the third quarter of 2023.