Solid Growth for Healthpeak in Q4, but 2023 Should See a Return to More Normalized Levels

Fourth-quarter results for no-moat Healthpeak were relatively in line with our expectations, leading us to reaffirm our $35 fair value estimate. Same-store net operating income for the life science segment grew 5.7%, slightly better than our estimate of 5.2% growth, and the continuing care retirement community segment grew 15.0% while the medical office segment saw 5.4% same-store NOI growth in the fourth quarter, which was slightly below our estimate of 6.1% growth. Combined, total same-store NOI growth was 6.6% in the fourth quarter, which was in line with our 6.5% estimate. The solid internal growth led Healthpeak to report funds from operations of $0.44 per share for the fourth quarter, which was 3 cents better than the $0.41 figure reported in the fourth quarter of 2021.