HCP Tops Q3 FFO Estimate, Changes Name To Healthpeak Properties
Zacks Investment Research | Oct 30, 2019 09:43PM ET
HCP Inc. (NYSE:HCP) — now renamed Healthpeak Properties, Inc. — reported third-quarter 2019 funds from operations (FFO) as adjusted of 44 cents per share, surpassing the Zacks Consensus Estimate by a whisker. Comparable FFO as adjusted in the prior-year quarter was 44 cents per share.
Notably, the company also announced that its shares are expected to begin trading under the new name and ticker symbol "PEAK" on the NYSE from Nov 5, 2019.
The healthcare real estate investment trust (REIT) generated revenues of approximately $538 million, beating the Zacks Consensus Estimate of $408.4 million. Further, the figure comes in higher than the year-ago number of $456 million.
Results were supported by decent performance of the company’s life-science and medical-office segments.
Behind the Headlines
Healthpeak witnessed 2.4% year-over-year rise in the three-month cash SPP net operating income (NOI). It registered 5.8% growth in life-science cash NOI, 2.5% rise in the medical office segment, 2.9% advancement in other non-reportable segments. However, senior-housing portfolio cash NOI edged down 1.3%.
In September, Healthpeak executed a binding agreement to acquire a 224,000-square-foot, LEED Gold laboratory building located at 35 CambridgePark Drive for $332.5 million. The transaction, expected to close around December 2019, will expand Healthpeak’s footprint in the Boston life-science market, consisting of three core campuses spanning more than 1.3 million square feet of space.
Moreover, it established an unsecured commercial paper program during the quarter.
Healthpeak had cash and cash equivalents of around $125 million as of Sep 30, 2019, up from $110.8 million recorded at the end of 2018.
Outlook
Healthpeak has revised its 2019 FFO as adjusted guidance to $1.74-$1.78 per share from $1.73-$1.77 per share. The Zacks Consensus Estimate for the same is pegged at $1.75.
Furthermore, the company expects 2019 SPP cash NOI growth for total portfolio to be 2.25-3.25%.
Conclusion
Healthpeak’s third-quarter performance is encouraging. Notably, the company executed strategic transaction during the quarter. In fact, as part of its development program with HCA (NYSE:HCA), Healthpeak announced two additional development projects for two Class A medical office building. Construction on these development projects is anticipated to start in 2020. This will help the company cater to the demand for new medical office buildings in the market.
HCP, Inc. Price, Consensus and EPS Surprise
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