Is Healthpeak Properties (DOC) Undervalued After Its Recent Share Price Slide?

Healthpeak Properties (DOC) has quietly slid about 12% over the past year and nearly 19% year to date. This has occurred even as annual revenue and net income have both grown, creating an interesting disconnect for income-focused investors. See our latest analysis for Healthpeak Properties. That steady slide in the share price over the past year contrasts with improving fundamentals. This suggests investors are still cautious on healthcare real estate REITs, even as Healthpeak’s cash flows look more resilient and long term total shareholder returns remain under pressure. If this shift in sentiment has you rethinking your REIT exposure, it might be worth exploring other income ideas across healthcare stocks that sit in a similar healthcare ecosystem. With the shares trading at a sizable discount to analyst targets despite healthier revenue and earnings trends, investors now face a key question: is Healthpeak a mispriced income play, or is the market already discounting limited future growth? Most Popular Narrative: 21.6% Undervalued With Healthpeak Properties closing at $16.40 against a narrative fair value near $20.92, the valuation case leans positive but depends heavily on specific growth assumptions. 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 set to drive sustained tenant demand and pricing power for Healthpeak's modern, high-acuity outpatient medical buildings. This trend may translate into increased occupancy rates and same-store NOI growth. Read the complete narrative. Want to see why a mature healthcare REIT gets a growth style valuation? The narrative leans on slow but steady revenue gains, rising margins, and a rich future earnings multiple that is usually reserved for faster growing sectors. The exact mix of growth, profitability, and discount rate assumptions might surprise you. Dive in to see how they add up to that fair value gap. Result: Fair Value of $20.92 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, elevated capital expenditure needs and ongoing tenant credit pressures in the lab segment could quickly undermine the optimistic margin and growth assumptions included in forecasts. Find out about the key risks to this Healthpeak Properties narrative. Build Your Own Healthpeak Properties Narrative If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way A great starting point for your Healthpeak Properties research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Ready for your next investing edge? Before you move on, lock in your next set of ideas by running a fresh screen on Simply Wall St and keep your watchlist ahead of the crowd. Capture income potential with these 13 dividend stocks with yields > 3% to complement or potentially outshine REIT yields in a diversified income strategy. Position for structural growth by targeting these 29 healthcare AI stocks where medical innovation and data intelligence intersect. Ride emerging themes and volatility with these 80 cryptocurrency and blockchain stocks that link equity markets to the expansion of digital assets. 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.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech