Healthpeak Properties reported Q1 2025 results that reinforced the company’s multi-segment diversification and balance-sheet resilience, even as the Life Science (Lab) segment faced ongoing policy- and capital-raising headwinds. Revenue rose 15.9% YoY to $702.9 million, supported by robust performance in Outpatient Medical and CCRCs, while Operating Income declined on a quarterly basis due to mix and revaluations, with Net Income up sharply YoY and QoQ driven by favorable non-cash and financing dynamics. FFO adjusted per share came in at $0.46 and AFFO per share at $0.43, underpinning Healthpeak’s ability to fund development and buybacks within a disciplined capital framework.
Management emphasized a diversified portfolio (Outpatient Medical >50% of the platform post-merger with Physicians Realty Trust), ongoing NOI growth in key segments, and a commitment to maintaining leverage in the mid-5x range while preserving liquidity (~$2.8 billion) and enhancing capital flexibility via asset sales and stock repurchases. The call highlighted ongoing leasing momentum: 450,000 sq ft signed year-to-date in Life Sciences, a robust LOI pipeline (≈400,000 sq ft), and continued progress in internalization of property management and portfolio enhancements. Management also signaled cautious optimism on the Life Science cash-flow dynamics, noting potential near-term pressure from capital markets and regulatory shifts, yet outlining potential inflection points from U.S. policy and FDA-era modernization that could support demand for life-science and related real estate.
Looking forward, Healthpeak reaffirmed its guidance: FFO per share of $1.81–$1.87 and blended same-store NOI growth of 3–4%, with leverage target mid-5s. The company’s strategic actions—West Cambridge master plan development with Hines, a measured development and loan investment program, and selective asset dispositions—should support long-term value creation, though near-term earnings trajectory remains sensitive to life-science funding cycles and broader policy developments.