(Reuters) – Healthpeak Properties topped market expectations for fourth-quarter funds from operations (FFO) on Thursday, on the back of strong demand for its medical office and life science properties.
The U.S. healthcare-centric real estate investment trust (REIT) mainly owns medical office and life science assets, as well as a handful of senior housing, hospital and post-acute care assets.
The company expects its 2024 adjusted FFO, a key performance measure for REITs, in the range of $1.73 to $1.79 per share, the mid-point of which is below analysts’ average estimate of $1.78 per share, according to LSEG data.
The REIT posted adjusted FFO of 46 cents per share in the fourth quarter, compared with analysts’ estimate of 45 cents.
Healthpeak, which has a lab portfolio concentrated in the leading biotech markets of South San Francisco, Boston and San Diego, witnessed healthy demand during the quarter, aiding leasing activity.
The Denver, Colorado-based company recorded total revenue of $553.65 million for the quarter ended Dec. 31, above estimates of $551.73 million.
Healthpeak and Physicians Realty Trust last year merged in an all-stock deal to create a $21 billion healthcare properties operator that would manage clinics, hospitals and surgery centers.
(Reporting by Pratik Jain in Bengaluru; Editing by Shilpi Majumdar)
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