Monthly Dividend Stock In Focus: Healthpeak Properties

Printed on August twenty first, 2025 by Bob Ciura

Month-to-month dividend shares have on the spot enchantment for a lot of revenue buyers. Shares that pay their dividends every month supply extra frequent payouts than conventional quarterly or semi-annual dividend payers.

For that reason, we created a full listing of over 80 month-to-month dividend shares.

You possibly can obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter like dividend yields and payout ratios) by clicking on the hyperlink under:

Monthly Dividend Stock In Focus: Healthpeak Properties

Healthpeak Properties (DOC) switched to a month-to-month dividend payout schedule in April 2025. This probably makes the inventory extra enticing for revenue buyers searching for extra frequent dividend payouts.

This text will analyze Healthpeak Properties in better element.

Enterprise Overview

Healthpeak Properties is the biggest healthcare REIT within the U.S., with 774 properties. It was the primary healthcare REIT that was included within the S&P 500. The 37-year previous REIT invests in life science amenities, senior homes, and medical places of work, with 97% of its portfolio based mostly on private-pay sources. It has a market capitalization of $12 billion.

Healthpeak Properties posted declining FFO for six consecutive years, till 2022. Nonetheless, Healthpeak Properties has bought a number of belongings and has used the proceeds to scale back its debt. In consequence, the REIT has obtained credit standing upgrades from S&P and Fitch (to BBB+) in addition to Moody’s (to Baa1).

Supply: Investor Presentation

On July twenty fourth 2025, the REIT reported second-quarter monetary outcomes. Quarterly income of $694.35 million was in-line with analyst estimates, and represented a year-over-year decline of 0.2%. Adjusted funds-from-operation (FFO) was $0.46 per share, up 2.2% from the identical quarter final yr. Adjusted FFO-per-share was additionally in-line with estimates. Identical-store money internet working revenue development was 3.5% for the second quarter.

Funding exercise for the quarter included two new growth agreements with a mixed projected price of $148 million to help Northside Hospital’s continued outpatient growth within the Atlanta market. Healthpeak Properties additionally bought one outpatient medical land parcel in June 2025 and two outpatient medical buildings in July 2025 for mixed proceeds of roughly $35 million.

For 2025, Healthpeak Properties confirmed its forecast for adjusted diluted FFO-per-share to be in a spread of $1.81 to $1.87. As well as, same-store money (Adjusted) NOI development is predicted to be 3.0% to 4.0% for the complete yr.

Progress Prospects

Healthpeak Properties advantages from favorable secular tendencies. Because the child boomer era ages and the typical life expectancy is on the rise, the senior inhabitants of the U.S. is predicted to develop considerably within the upcoming years. The 80+ age group is predicted to develop by about 5% per yr on common till 2030.

As well as, this age group has immense spending energy. Thanks to those tendencies, healthcare spending within the U.S. is predicted to develop by about 5% per yr on common till 2030.

Though Healthpeak Properties posted declining FFO for six consecutive years, till 2022, and the restructuring course of will preserve burdening the REIT within the close to future, many of the harm has already been carried out. We additionally anticipate the belief to enter a sustainable development trajectory.

Nonetheless, because of the hefty issuance of latest shares for the above merger and excessive curiosity expense amid excessive rates of interest, we anticipate 3% annual development of FFO per share over the subsequent 5 years.

Dividend & Valuation Evaluation

The efficiency of Healthpeak Properties has been poor within the final 9 years and the REIT lower its dividend by -19% in 2021, because of the impacts of the coronavirus pandemic. As this was the second dividend lower within the final decade, it’s evident that the REIT is weak to downturns.

As well as, curiosity expense has elevated 85% since 2021 attributable to excessive rates of interest and the merger.

Then again, we word that the payout ratio is standing at a virtually 10-year low whereas the REIT doesn’t have any debt maturities this yr.

Supply: Investor Presentation

DOC has a 2025 anticipated dividend payout ratio of 66%, based mostly on the midpoint of the REIT’s adjusted FFO-per-share steering for 2025. This means a sustainable dividend payout backed by adequate FFO.

We additionally view the REIT as undervalued. Primarily based on anticipated adjusted FFO-per-share of $1.84 for 2025, shares of DOC at the moment commerce for a price-to-FFO ratio of 9.3. That is considerably under the 10-year common P/FFO ratio of 15.1, which we view as honest worth.

If the valuation a number of had been to broaden to fifteen.1, it might increase annual shareholder returns by 10.2% per yr over the subsequent 5 years. This means the inventory is considerably undervalued.

Including in 3% anticipated FFO-per-share development per yr, in addition to the 7.1% present dividend yield, whole returns might exceed 20% per yr for DOC.

Ultimate Ideas

Healthpeak Properties is a comparatively new month-to-month dividend inventory, having began paying its dividend on a month-to-month foundation in April 2025.

The REIT has recovered from the varied challenges confronted throughout the pandemic, and will supply excessive common annual returns over the subsequent 5 years, due to development of FFO per share, its 7.1% dividend yield, and a major growth of the valuation a number of. Usually, we might price such a excessive degree of anticipated returns as a purchase.

Nonetheless, because of the risky efficiency file and the excessive debt load of the REIT, we price it as a maintain for affected person, risk-tolerant buyers who can endure prolonged durations of inventory worth strain.