DOC Stock Forecast & Price Target

Healthpeak Properties boasts a diversified healthcare portfolio comprising approximately 700 properties, predominantly focused on medical office and life science assets, which positions it well within the growing healthcare sector. The company’s strategy includes expanding its medical office building (MOB) portfolio through recent development starts totaling $148 million, offering high certainty of execution and projected stabilized yields in the mid-7% range, with about 80% of the space already pre-leased. These factors contribute to a positive financial outlook, driven by a strong demand for healthcare facilities and potential revenue growth from strategic expansions.

Healthpeak Properties faces a negative outlook due to increased credit risk associated with lab tenants, which has led to a reduction in the applied P/AFFOPS multiple and overall earnings forecasts for 2026. The company has experienced weak leasing performance in Q2, prompting a downgrade in projections to a compound annual growth rate (CAGR) of +1%/-1% for FFOPS/AFFOPS from a previous outlook of +2%/+1%. Additionally, management has acknowledged potential headwinds to lab occupancy in the second half of 2025 stemming from challenges in capital raising, further contributing to uncertainty in the company's financial stability.