Healthpeak Properties (NYSE:DOC), now trading under the familiar ticker DOC following its acquisition of Physicians Realty Trust, looks a lot different than the company that once focused on nursing homes and hospitals. By combining Healthpeak’s life sciences and CCRC platforms with
Healthpeak Offers An Attractive Dividend Yield With Room For Growth
Summary
- Healthpeak offers a nearly 7% yield, strong dividend coverage, and trades at a deep discount to private market value, making it a compelling buy.
- The merger with Physicians Realty Trust created a diversified, cost-efficient REIT with reliable income from medical offices and upside from labs and senior housing.
- Risks like soft lab demand and higher rates are cushioned by long leases, fixed debt, and strong outpatient/CCRC performance, ensuring dividend security.
- With steady cash flow, limited competition, and demographic tailwinds, I see 25-30% upside plus dividends as the market re-rates Healthpeak.
I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DOC over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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