Healthpeak Properties Reports 15.9% Revenue Increase to $702.9 Million in Q1 2025

Healthpeak Properties, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $702.9 million, up from $606.6 million in the same period last year, marking a 15.9% increase. The company’s net income applicable to common shares also saw a substantial rise, climbing to $42.4 million, compared to $6.5 million in the prior year. This improvement in profitability was attributed to a decrease in transaction and merger-related costs, increased Adjusted NOI from the outpatient medical and lab segments, and a reduction in loan loss reserves.

The company experienced notable changes in its operational metrics, particularly following its merger with Physicians Realty Trust, which was completed on March 1, 2024. The merger expanded Healthpeak's portfolio to include 299 outpatient medical buildings, contributing to a 5% increase in Adjusted NOI for the outpatient medical segment. Additionally, the company reported a total of 700 properties in its portfolio as of March 31, 2025, with 527 in outpatient medical, 139 in lab, and 15 in continuing care retirement communities (CCRC).

Healthpeak's strategic developments included the acquisition of a lab land parcel in Cambridge, Massachusetts for $20 million and a portfolio of three outpatient medical buildings in New York for $17 million in February 2025. The company also repaid $348 million in senior unsecured notes and issued $500 million in new senior unsecured notes during the quarter. These actions reflect Healthpeak's ongoing commitment to managing its capital structure effectively while pursuing growth opportunities.

Operationally, Healthpeak reported an increase in occupancy rates across its segments, with the outpatient medical segment achieving an average occupancy of 92.4%. The company’s total cash and cash equivalents decreased to $70.6 million from $119.8 million at the end of the previous year, primarily due to increased investments in real estate and development activities. The company’s employee headcount also increased, reflecting its growth and expansion efforts.

Looking ahead, Healthpeak Properties, Inc. anticipates continued growth driven by its diversified portfolio and strategic investments. The company remains focused on enhancing its competitive advantages in the healthcare real estate sector while managing its financial position to support future acquisitions and developments. The outlook for the remainder of 2025 suggests a commitment to maintaining strong operational performance and delivering value to shareholders through consistent dividend payments and strategic growth initiatives.