Healthpeak Earnings: Cambridge Rezoning Clears Way for Life Science Development Projects

Healthpeak reported third-quarter results that were relatively in line with our expectations, leading us to reaffirm our $32.50 fair value estimate for the no-moat company. Same-store net operating income for the life science portfolio increased 3.3% in the third quarter, slightly better than our estimate of 2.9% growth. Same-store net operating income for the medical office portfolio was up 3.4%, ahead of our estimate of a 2.1% increase. Meanwhile, the continuing care retirement community saw same-store NOI growth of 32.1% due to the recovery of the senior housing sector. As a result, the company reported total same-store NOI growth of 6.0% in the third quarter. Healthpeak reported adjusted funds from operations of $0.45 per share in the third quarter, which was in line with our estimate and was 2 cents better than the $0.43 figure the company reported in the third quarter of 2022.