DOC Stock Forecast & Price Target

Healthpeak Properties demonstrates a strong financial outlook due to its diversified healthcare portfolio, encompassing approximately 700 properties predominantly in medical offices and life sciences, which are expected to drive stable revenue streams. The company's strategic expansion, particularly in medical office buildings (MOB), alongside recent new development starts totaling $148 million—where approximately 80% of the space is already pre-leased—indicates robust demand and attractive yields projected at mid-7% when stabilized. Furthermore, the overall healthcare sector remains resilient, providing a favorable environment for Healthpeak's growth as it continues to capitalize on high-demand assets in a diversified portfolio.

Healthpeak Properties has encountered significant challenges, reflected by a decrease in its 2026 estimated price-to-adjusted funds from operations (P/AFFOPS) multiple from 13.0x to 12.0x, which indicates a rising concern over Lab tenant credit risk that poses a downside threat to future earnings. Additionally, the company's projected compound annual growth rate (CAGR) for funds from operations (FFOPS) and adjusted funds from operations (AFFOPS) has been revised down to a modest +1%/-1% from a prior forecast of +2%/+1% for 2026-2027, demonstrating weakened expectations for rental income. Compounding these issues, management has highlighted potential headwinds impacting Lab occupancy in the second half of 2025 due to sluggish capital raising efforts, further feeding into the negative outlook on the stock's performance.