Healthpeak Earnings: Same-Store Net Operating Income Better Than We Anticipated

Second-quarter results for no-moat Healthpeak Properties were slightly better than we anticipated, giving us confidence in our $33.50 fair value estimate. Same-store net operating income for the life science segment grew 3.8%, slightly better than our 2.6% estimate. The medical office segment saw same-store NOI growth that was in line with our 2.5% estimate. The continuing care retirement community segment's same-store NOI growth was 19.3%, well ahead of our estimate of 6.4%. Combined same-store NOI for the company overall grew 4.8%, better than our estimate of 2.8%. As a result, Healthpeak reported 3.6% growth in adjusted funds from operations, to $0.45 per share, beating our estimate of $0.43 for the second quarter.