Healthpeak Properties (NYSE: DOC) ended the trading week on a down note, with shares sliding 1.85% to $19.15 on Friday. The decline capped a weekly loss of approximately 2.9%, as the healthcare real estate investment trust (REIT) reversed sharply from a 52-week high reached just days earlier. Trading volume was notably heavy, with roughly 61.9 million shares changing hands, far exceeding the 50-day average of 8.6 million shares.
The stock had hit a 52-week high of $20.27 on Tuesday, May 27, before losing ground for three consecutive sessions. Friday's drop stood out against a broader market that saw the S&P 500 and Dow Jones Industrial Average finish the day in positive territory. The short trading week, which included the Memorial Day holiday on Monday, May 25, compressed market activity into just four days.
Healthpeak's decline was part of a broader pullback among healthcare and life science landlords. Ventas slipped 1.60% on Friday, Alexandria Real Estate Equities lost 0.76%, and Welltower dropped 2.36%, keeping the sector under pressure.
Earnings and Guidance Update
The company reported first-quarter results in early May, posting net income of $0.28 per share, Nareit funds from operations (FFO) of $0.42 per share, and adjusted FFO of $0.45 per share. FFO is a standard profitability metric for REITs that adds back property depreciation and adjusts for certain property-sale items.
Healthpeak raised its 2026 adjusted FFO outlook to a range of $1.71 to $1.75 per share, up from the prior forecast of $1.70 to $1.74 per share. However, the company left its same-store cash net operating income (NOI) guidance unchanged at -1% to +1%. Same-store NOI measures property-level income for assets owned in both periods.
CEO Scott Brinker highlighted "excellence in execution" during the quarter, citing the Janus Living IPO, the Blackstone outpatient medical joint venture, and $100 million in share buybacks completed in April as key catalysts for the guidance increase.
Analyst Reactions
Analysts have offered mixed views following Healthpeak's recent run-up. Baird analyst Wesley Golladay raised his price target to $21 from $19 while maintaining an Outperform rating. In contrast, Evercore ISI downgraded the stock to In Line from Outperform, though it also lifted its target to $21, citing limited upside after the post-earnings rally.
Dividend and Yield
Healthpeak continues to offer income to investors with a monthly dividend of $0.10167 per share for April, May, and June. The next record date is June 15, with payment on June 26. Based on Friday's closing price, the annualized dividend yield stands at approximately 6.4%. Dividend yields increase when the share price declines.
Key Risks and Catalysts Ahead
Investors are closely watching the upcoming U.S. payrolls report on June 5, which is expected to show 85,000 new jobs and an unemployment rate of 4.3%, according to a Reuters poll. A stronger-than-expected jobs number could push Treasury yields higher, putting pressure on rate-sensitive sectors such as REITs. Rising bond yields make dividend-paying stocks like Healthpeak less attractive relative to fixed-income alternatives.
Additional risks flagged by management include potential weakness in lab leasing and delays in deploying cash from the Janus Living transaction. The company's guidance assumes certain deal timing and market conditions, which may not materialize as expected. If the May rally loses momentum, Healthpeak could face further headwinds from rising yields or operational challenges.
