Healthpeak Properties reported a solid Q4 2024 with strong year-end momentum and meaningful merger synergies. The company posted adjusted funds from operations (FFO) of $0.46 per share and AFFO of $0.40 per share for Q4, with total portfolio same-store growth of 5.4% for the year. Management highlighted that the Physician Realty merger was accretive to earnings and balance sheet, and plans to continue internalizing property management to drive further upside. Asset sales of $1.3 billion at a 6.4% cap rate improved the balance sheet and provided dry powder to go on offense, particularly in Life Science where the company sees a unique competitive position and a dearth of liquidity in the market.
For the full year, Healthpeak delivered FFO adjusted of $1.81 per share and AFFO of $1.60 per share, with the same-store growth mirrored at 5.4%. The quarter also featured a prominent 30% rent mark-to-market in the lab segment and strong development/redevelopment activity. Looking ahead, the 2025 guidance contemplates FFO adjusted of $1.81–$1.87 per share, 3–4% total same-store growth (Outpatient 2.5–3.5%; Lab 3–4%; CCRCs 4–8%), and at least $500 million of investments with an expected yield of 8%+.
Healthpeak’s updated narrative emphasizes a balance-sheet offensive posture, ongoing portfolio internalization, and a pipeline that aims to monetize value through a mix of on-balance-sheet development and senior loan opportunities in Life Science and outpatient medical. The company also signaled continued focus on CCRCs, including an entrance-fee strategy that has driven record sales and net cash collections, while preparing for 2025 AFFO reporting to include entrance-fee cash collections.
Investment implications: Healthpeak’s execution on merger synergies and stable core performance, combined with an aggressive capital deployment stance and a robust Life Science pipeline, point to a potential re-rating if the company sustains growth in earnings power, maintains leverage discipline (net debt/EBITDA around 5.2x), and extends its development/loan win rate. Risks include higher interest expense, redevelopment cadence, and potential volatility in Life Science project timing and cap rates.