DOC Stock Forecast & Price Target

Healthpeak Properties maintains a strong position within its diversified healthcare portfolio, which encompasses approximately 700 properties primarily centered on medical office and life science assets. The company's strategic expansions, including recent development projects totaling $148 million, are showing promise with high pre-leasing rates of around 80% and expected stabilized yields in the mid-7% range, indicating robust demand for its real estate offerings. Overall, these operational metrics reinforce a positive outlook for Healthpeak Properties due to its solid financial fundamentals and growth potential in the healthcare sector.

The negative outlook on Healthpeak Properties's stock is influenced by an increase in tenant credit risk for Lab properties, leading to a downward adjustment of the estimated P/AFFOPS multiple from 13.0x to 12.0x and a reduction in the forecasted 2026 earnings. Additionally, weak leasing performance in Q2 has prompted a downgrade in projected compound annual growth rates for FFOPS/AFFOPS to +1%/-1% from a prior projection of +2%/+1% for 2026-2027. Management has acknowledged potential headwinds for Lab occupancy due to slow capital raising efforts expected in the second half of 2025, heightening concerns about future earnings stability.