Healthpeak Properties (DOC): Evaluating Valuation After $500 Million Senior Notes Boosts Financial Flexibility

If you’ve had your eye on Healthpeak Properties (DOC) lately, you know the company just pulled off a major move. On August 14, it completed a $500 million senior notes offering. The plan is to use much of this fresh capital to pay down short-term debt and generally shore up financial flexibility. This step could matter not just for the company’s balance sheet, but also for its ability to act on acquisitions and development in the future. This headline comes as Healthpeak Properties works to steady itself after a tough period. Shares have drifted over the past year, shedding 16%, and momentum hasn’t quite returned even as the market has rebounded elsewhere. Still, with revenue and net income both showing single-digit annual growth, this debt refinancing could be a pivotal moment for the company by helping it clean up its liabilities and potentially unlock value going forward. The big question is whether investors looking at Healthpeak’s recent slide and new funding see a bargain, or if the market is already factoring in all the growth this move could bring. Is there an opportunity here, or has Wall Street already done the math?

Most Popular Narrative: 23.1% Undervalued

According to the community narrative, Healthpeak Properties appears to be undervalued based on optimistic assumptions about its future earnings growth, margins, and the potential for recovery in its business segments.

The accelerating shift of surgical and specialty care from inpatient hospital settings to outpatient centers, supported by anticipated regulatory changes (CMS inpatient-only default reversal), is expected to drive sustained tenant demand and pricing power for Healthpeak's modern, high-acuity outpatient medical buildings. This should contribute to increased occupancy rates and same-store NOI growth.

Why are analysts expecting such a rebound in value? The narrative relies on some bold growth assumptions and ambitious profit targets. Interested in how the projections compare and whether Healthpeak’s profit engine could recover? Learn what combination of revenue growth and future margins could support this notable undervaluation.

Result: Fair Value of $22.41 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent credit risk among biotech tenants and regional sector downturns could still undermine Healthpeak’s revenue growth and long-term asset values.

Find out about the key risks to this Healthpeak Properties narrative.

Another Perspective: Testing the Undervaluation Case

While analyst targets suggest Healthpeak Properties is undervalued, our DCF model comes to a similar verdict using future cash flows instead of earnings multiples. However, does this approach truly capture all risks the company faces?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Healthpeak Properties for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Healthpeak Properties Narrative

If you have a different take on Healthpeak’s outlook or want to dig deeper, you can quickly assemble your own analysis and viewpoint, do it your way.

A great starting point for your Healthpeak Properties research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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