Healthpeak Properties
DOCBusiness Overview
ticker: PEAK step: 01 generated: 2026-05-13 source: quick-research note: Ticker changed from PEAK to DOC (NYSE:DOC) effective March 4, 2024, following merger with Physicians Realty Trust
Healthpeak Properties, Inc. (PEAK/DOC) — Business Overview
Business Description
Healthpeak Properties (NYSE: DOC, formerly PEAK) is a leading healthcare REIT and one of the largest in the United States, focused on life science and outpatient medical real estate. Following the March 2024 all-stock merger with Physicians Realty Trust, Healthpeak transformed into a pure-play healthcare real estate company with ~$20B in total assets. The combined portfolio generates net operating income from approximately 54% medical office buildings, 35% life science properties, and 11% CCRCs (Continuing Care Retirement Communities) and other assets. The merger also created $50–$70M in annual cost synergies through property management internalization and G&A consolidation.
Revenue Model
Revenue is generated from lease income on healthcare real estate under long-term leases. Medical office buildings (MOBs) use modified gross or triple-net structures with 5.8% average cash re-leasing spreads on renewals — a strong indicator of pricing power. Life science properties lease to biotech, pharmaceutical, and genomic research companies under long-term leases. The company is also the external manager of Janus Living, Inc. (a senior housing spinoff IPO), retaining 81.6% ownership and earning management fees.
Products & Services
- Medical Office Buildings (54% of NOI): Outpatient facilities, physician office buildings, ambulatory surgery centers — leased to health systems (Kaiser, HCA, Tenet), physician groups, and academic medical centers
- Life Science (35% of NOI): Laboratory and R&D facilities in Boston, San Francisco, San Diego — leased to biotech (Pfizer, Eli Lilly, BioNTech, AstraZeneca), genomics, and med-tech companies
- CCRCs/Other (11%): Senior living communities; Janus Living Inc. IPO platform (34 communities, 10,422 units) — Healthpeak retains 81.6% post-IPO
- Development Pipeline: $500M in 2025 investments at 8%+ weighted average yields
Customer Base & Go-to-Market
Medical office tenants are typically hospital systems, academic medical centers, and physician groups with long operational histories and strong credit profiles. Life science tenants range from investment-grade pharma majors to venture-backed biotech companies — the latter creating credit risk during downturns in biotech funding. No single tenant exceeds ~5% of NOI.
Competitive Position
Healthpeak competes with Ventas (VTR), Welltower (WELL), and Alexandria Real Estate Equities (ARE) in healthcare REIT. Post-merger scale (10M+ square feet of MOBs renewed; ~35M+ SF total portfolio) creates operating leverage advantages in property management. The medical office segment benefits from an aging U.S. population and the shift of care from inpatient (hospitals) to outpatient settings — a secular trend accelerating healthcare real estate demand.
Key Facts
- Founded: 1985 (as Health Care Properties of America)
- Headquarters: Denver, CO
- Employees: ~700
- Exchange: NYSE (DOC, formerly PEAK until March 2024)
- Sector / Industry: Real Estate / Healthcare REITs
- Market Cap: ~$12B
Financial Snapshot
ticker: PEAK step: 04 generated: 2026-05-13 source: quick-research note: Now trades as NYSE:DOC following March 2024 Physicians Realty Trust merger
Healthpeak Properties, Inc. (PEAK/DOC) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$2.18B | ~$2.18B | $2.70B | +23.8% |
| NOI Margin | ~55% | ~55% | ~57% | |
| FFO as Adjusted (total) | ~$750M | ~$770M | ~$1.27B | +65% |
| FFO as Adjusted/Share | ~$1.38 | ~$1.40 | $1.81 | +29% |
| Net Income/Share | ~$0.45 | ~$0.30 | $0.36 |
FY2024 revenue and FFO surged due to the March 2024 Physicians Realty Trust all-stock merger consolidation (roughly doubled the entity). FY2022–2023 figures are pre-merger Healthpeak only. Per-share metrics are more comparable due to significant share count increase from merger.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| FFO as Adjusted | ~$1.27B |
| AFFO/Share | $1.60 |
| Annual Dividend | ~$1.20/share annualized (~7.4% yield) |
| Total Debt | ~$8.5B |
| Net Debt / EBITDA | ~7.5x |
| Merger Synergies Realized (2024) | $50M+ (exceeded guidance midpoint by $10M) |
Total synergies targeted: $70M+. Healthcare REIT leverage of 7.5x is within normal range for the sector given long-lease, mission-critical asset profile.
Key Ratios (approximate)
- Price/FFO as Adjusted: ~9x | Implied Cap Rate: ~6.5% | Dividend Yield: ~7.4%
- MOB Cash Re-leasing Spreads: +5.8% (10M+ SF since merger) — strong pricing power indicator
- Life Science Occupancy: ~77.7% (2025) — well below historical; recovery targeted in 2026
- Q1 2026 FFO/share: $0.45 (+2 cents vs estimates)
Growth Profile
Pre-merger Healthpeak had stable but slow-growing revenues driven by life science and senior housing. The Physicians Realty Trust merger (closed March 2024) transformed scale: revenue jumped 23.8% to $2.7B in FY2024 with $50M in synergies achieved. FY2025 revenue reached $2.82B (+4.5%), with FFO/share of $1.80 (up from $1.62 in FY2024 on a like-for-like basis). 2026 faces headwinds from life science vacancy and $650M in maturing debt refinancing at higher rates.
Forward Estimates
- FY2026 FFO as Adjusted guidance: $1.71–$1.75/share (midpoint $1.73; raised $0.01 after Q1 beat)
- Janus Living IPO proceeds targeted for debt paydown and reinvestment — $0.04/share accretive after deployment
- $1B in 2026 asset sales, recapitalizations, and loan repayments targeted — portfolio rebalancing year
- $500M in 2025 developments at 8%+ weighted average yields add to 2026–2027 NOI
Deeper Financial Analysis
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