Healthpeak Reports Solid Q2 Results Thanks to Life Science and Medical Office NOI Growth

Second-quarter results for Healthpeak were in line with our expectations, leading us to reaffirm our $36 fair value estimate for the no-moat company. The life science segment produced same-store net operating income growth of 4.3% in the quarter, better than our estimate of 3.1% growth. Similarly, medical office outperformed with 4.5% year-over-year growth that beat our 3.0% estimate. However, the company’s continuing care retirement community segment saw a 2.1% same-store NOI decline, which was worse than our estimate of 0.6% growth. Still, Healthpeak reported same-store NOI growth of 3.7% for the total company, slightly better than our 3.0% estimate. As a result, Healthpeak reported adjusted funds from operations of $0.44 per share in the second quarter that was in line with our expectations and 4 cents ahead of the $0.40 figure reported in the second quarter of 2021.