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Healthpeak buys out partner's interest in lab buildings

EditorLina Guerrero
Published 05/07/2024, 05:32 PM
DOC
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DENVER - Healthpeak Properties, Inc. (NYSE: NYSE:DOC), a real estate investment trust (REIT), has fully acquired King Street Properties' minority stake in their joint venture, which includes eight laboratory buildings located in Cambridge and Lexington, Massachusetts. With this acquisition, Healthpeak will begin directly managing the properties following a brief transition period.

The partnership between Healthpeak and King Street Properties dates back to 2017 and has since expanded to encompass 900,000 square feet of space across four campuses. The acquisition of King Street's interest is a strategic move for Healthpeak, boosting its greater Boston portfolio to a total of 2.7 million square feet. Scott Brinker, Healthpeak's President and CEO, expressed gratitude to King Street for a successful partnership that has now positioned Healthpeak to internalize operations.

Thomas Ragno, Founder/Principal of King Street Properties, reflected on the seven-year joint venture's achievements, highlighting the successful development of Class A life science projects. The acquisition marks the end of this joint venture, which both parties regard as having been mutually beneficial.

Healthpeak Properties is an S&P 500 company that focuses on owning, operating, and developing real estate for healthcare discovery and delivery.

InvestingPro Insights

As Healthpeak Properties, Inc. (NYSE: DOC) expands its footprint in the strategic life sciences real estate market, the latest financial metrics from InvestingPro provide a snapshot of the company's current valuation and performance. Healthpeak's market capitalization stands at a robust $13.66 billion, reflecting the scale of its real estate portfolio. Despite a high earnings multiple with a P/E ratio of 55.7, the company's commitment to shareholder returns is evident, having maintained dividend payments for 40 consecutive years. The dividend yield is notably attractive at 6.33%, with the last dividend's ex-date being May 3, 2024.

InvestingPro Tips suggest that analysts are optimistic about Healthpeak's sales growth in the current year, which aligns with the company's strategic acquisitions and management internalization. However, there is caution in the air, as 2 analysts have revised their earnings expectations downwards for the upcoming period. Additionally, the company is trading at a high EBIT valuation multiple, which may be reflective of the premium market position and growth prospects within the life sciences real estate sector.

For those considering an investment in Healthpeak Properties, there are additional InvestingPro Tips available that delve deeper into the company's financial health and future outlook. By using the promo code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights. Visit https://www.investing.com/pro/DOC to explore further, and discover the full range of data points and analytics that InvestingPro has to offer.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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