Healthpeak Properties delivered a strong QQ2 2024 quarter highlighted by meaningful portfolio transformation and a broad acceleration in leasing across core healthcare real estate segments. The company reported annualized improvements in operating metrics driven by merger-related synergies, a rapid internalization of the outpatient life science platform, and a material expansion in occupancy and leasing activity within its life science and outpatient portfolios. Importantly, Healthpeak raised its FFO and AFFO guidance for the year, underscoring confidence in the post-merger operating trajectory and the growing contribution from its development and redevelopment activities.
The quarter featured robust leasing momentum, including 800,000 square feet of leases in Q2 (75% renewals, 25% new), with a positive 6% re-leasing spread and no tenant downsizing upon renewal. The company also highlighted a more favorable escalator profile in new outpatient leases (typical 3% escalators) and meaningful progress in the internalization of the outpatient and lab platform, which now represents roughly half of Healthpeak’s outpatient and lab business by year-end. In capital allocation, Healthpeak completed $853 million of outpatient asset sales at a blended 6.8% cap rate, deployed a new $500 million stock-repurchase authorization, and expanded its liquidity buffer, while signaling a continued emphasis on recycling capital into accretive growth and high-quality development with Partners such as health systems. Taken together, these actions support a constructive long-term earnings trajectory, a stronger balance sheet, and a differentiated value proposition for investors in a volatile real estate cap-rate environment.