DOC Stock Forecast & Price Target

Healthpeak Properties maintains a robust and diversified healthcare portfolio, including approximately 700 properties primarily focused on medical office and life sciences, which positions it favorably in the growing healthcare real estate market. The company's strategy of expanding its medical office building (MOB) portfolio through new developments, totaling $148 million, shows strong execution certainty and potential for attractive yields, with around 80% pre-leased and an expected stabilization yield in the mid-7% range. This focus on strategic growth and the strong demand for healthcare facilities contribute positively to the financial outlook for Healthpeak Properties.

Healthpeak Properties is facing a negative outlook primarily due to increased tenant credit risk associated with its Lab assets, which could adversely affect earnings in 2026. Furthermore, the company has reported weak leasing activity in Q2, leading to a downgrade in projected compound annual growth rates for Funds From Operations (FFOPS) and Adjusted Funds From Operations (AFFOPS) to a range of +1% to -1% for 2026-2027, down from a previous forecast of +2% to +1%. Additionally, potential headwinds related to Lab occupancy are anticipated in the latter half of 2025, stemming from challenges in capital raising, further contributing to concerns regarding the company’s financial stability.