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Research · S&P 500 · Real Estate

DOC · Healthpeak Properties

The numbers, the scorecard and what analysts say, with the source for each. Information, not advice.

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Value Scorecard · REIT version · run 2026-10-19

13 value checks for REITs: 12 scored 1 to 5, plus moat evidence

49/60
high value scoreREIT version

Why this card is different. REITs must pay out most of their taxable income, and depreciation on their buildings lowers the earnings they report. So this card scores funds from operations (FFO) in place of earnings for five of its checks, and capital allocation uses REIT tests. Compare a REIT’s score with other REITs’ scores, not with other companies’: six of its checks are different.

What’s different
EPS trend→FFO per share trend ROE trend→FFO payout ratio ROIC→Debt to total assets Retained earnings→FFO kept after distributions Graham value→Price-to-FFO Capital allocation→Capital allocation, REIT tests

Margin of safety uses the DCF value alone. Everything else is the same as on every card.

What is FFO?

Funds from operations. In short: net income with property depreciation added back, and gains or losses from selling property and property write-downs taken out. It is the standard measure REITs report, defined by Nareit, the REIT industry association.

Valerius uses Nareit FFO. Companies also report adjusted versions (AFFO, “normalized” FFO) under their own definitions, which can be higher or lower, so a figure in the news can differ from the one here.

Scored with the REIT version since Oct 2026. The earlier score, 29 of 55, used the standard version, whose checks don't fit how a REIT works. The two scores are not comparable: the method changed.

Earnings & returns

FFO per Share Trend REIT measure

4/5

Nareit FFO per share (FFO from the 10-Ks divided by year-end shares outstanding, yfinance, where the 10-K prints no per-share figure): $1.66 (2022), $1.80 (2023), $1.56 (2024), $1.83 (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Nareit FFO applicable to common shares 1,268,981 1,092,730 985,180 Found by AI, checked by codeFrom the company’s 10-K for 2025, filed 2026-02-03 · View the filing
How this figure was checked

AI found this line in the 10-K. Valerius then checked in code that the line appears in the filing word for word, that it is the plain FFO line (not an adjusted one), and that FFO per share times the diluted share count matches the reported total, or, where no per-share figure is printed, that it is close to FFO built from the filed figures. The score is a fixed rule applied to that figure. No AI sets a score.

FFO Payout Ratio REIT measure

5/5

Distributions paid (yfinance) over Nareit FFO (10-K): 72% (2022), 67% (2023), 73% (2024), 67% (2025). 67% in 2025; the framework scores 70% or less as 5.

Nareit FFO applicable to common shares 1,268,981 1,092,730 985,180 Found by AI, checked by codeFrom the company’s 10-K for 2025, filed 2026-02-03 · View the filing
How this figure was checked

AI found this line in the 10-K. Valerius then checked in code that the line appears in the filing word for word, that it is the plain FFO line (not an adjusted one), and that FFO per share times the diluted share count matches the reported total, or, where no per-share figure is printed, that it is close to FFO built from the filed figures. The score is a fixed rule applied to that figure. No AI sets a score.

Profit Margins

3/5

Net margin of 8.2%; the framework scores 5-10% as 3; gross margin 57.6%, operating margin 16.0%.

Balance sheet & cash

Debt to Total Assets REIT measure

3/5

Total debt over total assets (yfinance balance sheets): 42.5% (2022), 45.1% (2023), 45.3% (2024), 49.9% (2025). 49.9% in 2025; the framework scores 40-50% as 3.

Debt-to-Equity

3/5

Debt-to-equity of 1.09; the framework scores 0.8-1.5 as 3 (total debt $10.32B, total cash $1.64B).

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $900.26M (2022), $956.24M (2023), $1.07B (2024), $1.25B (2025). It rose every year; the framework scores that as 5.

FFO Kept after Distributions REIT measure

4/5

FFO kept after distributions (Nareit FFO from the 10-Ks minus distributions paid, yfinance): $247.12M (2022), $328.16M (2023), $297.95M (2024), $419.89M (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Nareit FFO applicable to common shares 1,268,981 1,092,730 985,180 Found by AI, checked by codeFrom the company’s 10-K for 2025, filed 2026-02-03 · View the filing
How this figure was checked

AI found this line in the 10-K. Valerius then checked in code that the line appears in the filing word for word, that it is the plain FFO line (not an adjusted one), and that FFO per share times the diluted share count matches the reported total, or, where no per-share figure is printed, that it is close to FFO built from the filed figures. The score is a fixed rule applied to that figure. No AI sets a score.

Valuation models

Price-to-FFO REIT measure

5/5

Price $18.40 over 2025 FFO per share of $1.83 (derived from the 10-K FFO) = 10.1; the framework scores under 12 as 5.

Nareit FFO applicable to common shares 1,268,981 1,092,730 985,180 Found by AI, checked by codeFrom the company’s 10-K for 2025, filed 2026-02-03 · View the filing
How this figure was checked

AI found this line in the 10-K. Valerius then checked in code that the line appears in the filing word for word, that it is the plain FFO line (not an adjusted one), and that FFO per share times the diluted share count matches the reported total, or, where no per-share figure is printed, that it is close to FFO built from the filed figures. The score is a fixed rule applied to that figure. No AI sets a score.

DCF Value

5/5

FCF/share = $2.386, stage 1 growth = 13.8% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $13.22, PV of terminal value = $41.60, DCF value = $54.83. Current price $18.40; price is 66.4% below the model value.

Margin of Safety

5/5

From the DCF value alone in the REIT version: DCF value $54.83; price is 66.4% below the model value.

Price-to-Book

3/5

P/B of 1.62; the framework scores 1.5-3.0 as 3.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Not available: the 10-K financial data has no standard figures for operating income, total assets and current liabilities in the same years, as is common for banks, insurers and REITs.

Gross margin, each year

Between -180.8% and 65.3% over 9 years (a range of 246.1 points).

2016: 65.3%, 2017: -27.1%, 2018: -162.6%, 2019: -180.8%, 2020: -79.3%, 2021: -64.1%, 2022: -74.4%, 2023: -71.0%, 2024: -89.1%

Competition, in the company’s own words · 10-K filed Feb 3, 2026

Investing in real estate serving the healthcare industry is highly competitive. We face competition from other REITs, investment companies, pension funds, private equity investors, sovereign funds, healthcare operators, lenders, developers, and other institutional investors, some of whom may have greater flexibility (e.g., non-REIT competitors), greater resources, and lower costs of capital than we do. Increased

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

4/5

Capital allocation (REIT), 2022-2025: distributions paid in every year (pass); distributions covered by FFO every year (pass); debt to total assets 42.5% to 49.9% (fail: up more than 5 points); shares outstanding up 27.1%, FFO per share $1.66 to $1.83 (pass). 3 of 4 tests passed; the framework scores that as 4.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

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These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the DCF value was calculated (the Graham value is not used in the REIT version)
  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $0.35, g = 0.0%, Y = 4.5
    g floored at 0.0% (3-year EPS CAGR was -57.7%; below -4.25% the formula returns a negative value)
    IV = $2.91
    Current price $18.40 vs Graham value $2.91 — price is 532.5% above the model value.

  DCF:
    FCF/share = $2.386
    Stage 1 growth = 13.8% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $2.715 → PV $2.468
      Y2: $3.090 → PV $2.554
      Y3: $3.516 → PV $2.642
      Y4: $4.001 → PV $2.733
      Y5: $4.554 → PV $2.827
    Stage 1 PV sum = $13.22
    Terminal value at end of Y5 = $67.00
    PV of terminal value = $41.60
    DCF value = $54.83
    Current price $18.40 vs DCF value $54.83 — price is 66.4% below the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $18.40. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: FFO per share trend, FFO payout ratio, debt to total assets, debt-to-equity, free cash flow, profit margins, FFO kept after distributions, price-to-FFO, DCF value, margin of safety, price-to-book and capital allocation (the REIT version). FFO figures were found in the 10-K filings by AI and checked in code before use; no AI sets a score. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

Recent headlines · third-party publishers · not investment advice

In the news

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The 8 newest headlines whose title names the company, shown automatically and never chosen by Valerius. From third-party publishers via Yahoo Finance, linked to the source. Valerius doesn't write or endorse them. Not investment advice.