Healthpeak Properties stock holds Neutral rating at Cantor on improving biopharma outlook

Healthpeak Properties Inc (DOC) reported a significant third-quarter 2025 earnings per share miss of -$0.17 against a projected $0.0586, despite exceeding revenue expectations with $705.87 million, leading to a notably negative market reaction. Cantor Fitzgerald maintained a Neutral rating and $20 price target, noting positive trends in the biopharma sector and improving Medical Office Building pricing that could strengthen the REIT's "outstanding" balance sheet. While anticipating a "choppy" recovery in the life science portfolio, the firm is now focused on the company's 2026 funds from operations growth potential.

Analysis

Healthpeak Properties Inc (DOC) reported a significant third-quarter 2025 earnings per share (EPS) miss of -$0.17, falling short of the projected $0.0586 by 390.1%. Despite this, the healthcare REIT surpassed revenue expectations, achieving $705.87 million against an anticipated $686.88 million, yet the market reacted notably negatively to the overall results.

Cantor Fitzgerald maintained its Neutral rating and $20.00 price target on DOC, acknowledging positive developments in the biopharma sector and improving Medical Office Building (MOB) pricing. The firm noted these trends could strengthen Healthpeak's "already outstanding" balance sheet through accelerated dispositions, aligning with its in-house biotech team's view.

However, Cantor Fitzgerald anticipates a "choppy and difficult to pinpoint" recovery in Healthpeak's Life Science portfolio. The company reiterated its full-year 2025 guidance, with Cantor now shifting its focus to the REIT's funds from operations (FFO) growth potential for 2026 as a key performance indicator.

Key Decisions for Investors

• Investors should carefully evaluate the divergence between Healthpeak's significant Q3 2025 EPS miss and its revenue beat, considering the negative market reaction despite positive sector commentary.
• Monitor the pace and stability of recovery in the Life Science portfolio and the execution of MOB dispositions, as these are key drivers for balance sheet strength and future growth.
• Focus on the company's funds from operations (FFO) growth potential for 2026, as highlighted by Cantor Fitzgerald, as a primary metric for assessing long-term value.