DOC Stock Forecast & Price Target

Healthpeak Properties benefits from a robust and diversified healthcare portfolio, consisting of approximately 700 properties primarily in medical office and life science assets. The company is poised for growth, especially with new development projects totaling $148 million, which are largely pre-leased at approximately 80% and are expected to yield mid-7% upon stabilization. This strategic expansion underscores Healthpeak's potential for solid revenue growth and enhances its overall attractiveness as a stable investment in the healthcare sector.

Healthpeak Properties is facing a rating downgrade due to an increase in Lab tenant credit risk and weak Q2 leasing performance, leading to a revised forecast of a compound annual growth rate (CAGR) for FFOPS/AFFOPS of +1%/-1% for 2026-2027, down from +2%/+1%. The adjustment in the applied P/AFFOPS multiple to 12.0x reflects these concerns, alongside the anticipated challenges in Lab occupancy attributed to slow capital raising projected for the latter half of 2025. Overall, these factors contribute to a negative financial outlook for Healthpeak Properties, indicating potential downside risks to its earnings in the coming years.