Left to Right: Peter Scott, CFO; Lisa Alonso, chief human resources officer; Scott Brinker, president & CIO; Tom Herzog, CEO; Thomas Klaritch, chief development & operating officer; Troy McHenry, chief legal officer, general counsel & corporate secretary.
If you haven't heard of Healthpeak Properties, Inc. (NYSE: PEAK) before, that's because the company underwent a relaunch in late 2019 that included a new name, ticker, and website. With a multi-billion-dollar portfolio rationalization, Healthpeak has solidified its position as a leading player in the real estate investment trust (REIT) industry.
A Well-Positioned Company
Based in Irvine, California, Healthpeak boasts over $20 billion of managed assets. CEO Tom Herzog confidently states that the company is "well-positioned to create consistent long-term growth opportunities for our investors." Healthpeak focuses on the life science, medical office building (MOB), and senior housing private-pay segments within the premium healthcare space. With approximately 650 assets spread across over 40 states, Healthpeak's strategic mix of assets within these segments ensures stability in future earnings and dividend growth.
Discovery Village, Palm Beach Gardens, Florida
A Rich History
Healthpeak's journey began in 1985 as Health Care Property Investors. After an initial public offering on the New York Stock Exchange, the company experienced tremendous growth under the leadership of Ken Roath. In 2005, the company changed its name to HCP and, three years later, made it onto the prestigious S&P 500 index.
Weathering the Storms
Although Healthpeak has experienced choppy same-store/total net operating income (NOI) growth in recent years, its life science and MOB portfolios have been strong positive counterweights to its challenged senior housing and previously-owned skilled nursing (SNF) portfolios. With a portfolio rationalization totaling over $14 billion completed in early 2019, Healthpeak has achieved an improved balance sheet through prudent capital allocation decisions.
Thoughtful Evolution
So, why the name change? According to CEO Tom Herzog, the rebranding to Healthpeak Properties signifies a culmination of efforts to reposition the company's strategy, team, portfolio, and balance sheet. Over the past few years, Healthpeak has become more disciplined in its investment approach, focusing on the three primary private-pay healthcare segments. As an innovative company at the forefront of providing high-quality real estate to the evolving healthcare industry, Healthpeak is committed to delivering value to its shareholders, customers, and employees.
Senior analyst Lukas Hartwich from Green Street Advisors praises the current management team, including CEO Tom Herzog, for successfully overcoming the challenges they inherited. The company has made significant progress in right-sizing tenant relationships, improving portfolio quality, repairing the balance sheet, and making smart capital allocation decisions. This progress has not gone unnoticed, as investors have rewarded Healthpeak with a higher valuation.
With a fresh brand and a strong foundation, Healthpeak Properties is poised for a promising future. As the company continues to navigate the ever-changing healthcare landscape, investors can expect consistent growth and long-term value creation.
Note: Images used in this article are provided by Healthpeak Properties, Inc.
