Healthpeak Properties Reports 26% Revenue Growth, Net Income Increase in Latest Quarter

Healthpeak Properties, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, a real estate investment trust (REIT) headquartered in Denver, Colorado, experienced a notable increase in total revenues, which reached $700.4 million, up from $556.2 million in the same period of 2023. This growth was primarily driven by a rise in rental and related revenues, which increased to $543.3 million from $417.1 million year-over-year.

The company's net income for the quarter was $92.7 million, compared to $68.7 million in the prior year, while net income attributable to Healthpeak Properties, Inc. rose to $85.9 million from $64.2 million. However, the nine-month results showed a net loss of $31.9 million for 2024, contrasting with a net income of $8.4 million for the same period in 2023. This decline was attributed to increased transaction and merger-related costs, particularly from the merger with Physicians Realty Trust, which was completed on March 1, 2024.

Total assets surged to $20.0 billion as of September 30, 2024, up from $15.7 billion at the end of 2023, largely due to the merger, which added 299 outpatient medical buildings to Healthpeak's portfolio. The company’s total liabilities also increased significantly to $10.7 billion from $8.8 billion, reflecting the debt assumed during the merger.

Healthpeak's strategic initiatives included a focus on expanding its outpatient medical segment, which generated $317.7 million in revenues for the quarter. The lab segment contributed $225.6 million, while the continuing care retirement community (CCRC) segment added $142.8 million. Adjusted net operating income (NOI) for the outpatient medical segment increased to $197.5 million, up from $114.0 million in the previous year.

The company also reported a substantial gain on the sale of real estate, totaling $62.3 million for the quarter, with cumulative gains for the nine months reaching $187.6 million. This was complemented by a significant increase in interest income from loans receivable, which rose to $14.3 million from $5.4 million year-over-year.

In terms of capital management, Healthpeak repurchased 1.0 million shares at an average price of $19.42 during the quarter, totaling $20 million. The company has a new share repurchase program approved for $500 million, which is set to expire in July 2026.

Overall, Healthpeak Properties, Inc. is navigating a transformative period marked by strategic acquisitions and operational adjustments, positioning itself for future growth in the healthcare real estate sector.