Healthpeak Properties increases 2024 FFO forecast owing to higher demand
(Reuters) - Healthpeak Properties raised its annual funds from operations (FFO) forecast on Thursday, banking on resilient demand for its medical office and life science properties.
The U.S. healthcare-centric real estate investment trust (REIT) mainly owns medical office and life science assets, as well as a handful of senior housing, hospital and post-acute care assets.
The company now sees its 2024 adjusted FFO, a key performance measure for REITs, in the range of $1.76 to $1.80 per share, raised from its previous outlook of $1.73 to $1.79 per share for the full year.
The outlook also fell in line with analysts' average estimate for 2024 adjusted FFO pegged at $1.77 per share, according to LSEG data.
Healthpeak, which has a lab portfolio concentrated in the leading biotech markets of South San Francisco, Boston and San Diego, witnessed healthy demand during the quarter, aiding leasing activity.
The REIT posted adjusted FFO of 45 cents per share in the first quarter, compared with analysts' estimate of 44 cents per share.
Healthpeak recently completed its merger with Physicians Realty Trust, creating a healthcare properties operator that would manage clinics, hospitals and surgery centers.
The Denver, Colorado-based company recorded total revenue of $606.6 million for the quarter ended March 31, above estimates of $588.3 million.
(Reporting by Unnamalai L and Pratik Jain in Bengaluru; Editing by Alan Barona)