Healthpeak Properties

Methodology

Healthpeak Properties is a REIT where EPS has limited meaning—FFO (Funds From Operations) is the proper earnings metric for healthcare real estate. Depreciation distorts GAAP earnings while FFO better reflects cash generation from medical office, lab, and senior housing properties. Investors should use FFO-based valuation methods rather than traditional P/E ratios.

Methodology

PEG ratios based on EPS are inappropriate for Healthpeak—FFO growth is the relevant metric for REIT valuation. The healthcare REIT typically delivers low-to-mid single-digit FFO growth from development and acquisitions. Healthcare REITs trade more on implied cap rates and dividend yields than earnings multiples given their long-term lease structures.

Methodology

Healthpeak pays a substantial dividend yielding 5-6%, making total return analysis important, though PEGY using EPS is still flawed for REITs. The dividend represents a sustainable portion of FFO from stable healthcare tenant cash flows. Investors should evaluate total return using FFO growth plus dividend yield rather than EPS-based metrics.