Virginia Retirement Systems Slash Healthpeak Stake 84.8% to $2.22M; Q3 EPS Beats, Guides $1.81–1.87
Virginia Retirement Systems cut its Healthpeak stake by 84.8% to 115,940 shares ($2.22M) in 3Q, selling 647,400 shares. Healthpeak reported Q3 EPS of $0.46 beating estimates by $0.01 on revenue of $705.9M (+0.8% YoY) and set FY25 guidance of $1.81–$1.87 EPS while maintaining a 7.5% dividend yield.
1. Major Stake Reduction by Virginia Retirement Systems
In the third quarter, Virginia Retirement Systems and affiliated funds sold 647,400 shares of DOC, reducing their position by 84.8%. Following the divestment, the investor held 115,940 shares valued at approximately $2.22 million at quarter end. This dramatic reduction highlights shifting allocations among public pension plans, as DOC’s institutional ownership remains high at 93.57%, underscoring the significance of even modest portfolio adjustments by large holders. Several other funds—including Rexford Capital Inc., Sound Income Strategies LLC, Elevation Point Wealth Partners LLC, CYBER HORNET ETFs LLC and AlphaQuest LLC—established new positions during the same period, each acquiring stakes valued between $28,000 and $34,000.
2. Third-Quarter Earnings and Full-Year Guidance Update
DOC reported third-quarter revenue of $705.9 million, exceeding consensus estimates by $24.2 million, and delivered quarterly EPS of $0.46 versus the expected $0.45. While the REIT posted a negative net margin of 1.36% and a negative return on equity of 0.44%, top-line growth was modestly positive at 0.8% year-over-year. Management reaffirmed its full-year 2025 outlook, targeting EPS in a range of 1.810 to 1.870 and signaling confidence in underlying asset performance despite near-term sector headwinds. The company also declared its monthly dividend of $0.1017 per share, corresponding to a 7.5% yield on an annualized basis and reflecting a conservative payout ratio relative to earnings.
3. Recent Analyst Rating and Target Adjustments
Analysts have adjusted their assessments following the earnings release and repositioning of large shareholders. Evercore ISI maintained an outperform stance while trimming its target from $22.00 to $21.00, and Jefferies Financial Group moved from buy to hold, lowering its target to $17.00. Cantor Fitzgerald initiated coverage with a neutral rating and a $20.00 objective, while Raymond James Financial upgraded to outperform with a $20.00 target. Robert W. Baird also reaffirmed an outperform rating, setting its objective at $20.00. Collectively, twelve analysts cover DOC, splitting evenly between buy and hold recommendations, resulting in a consensus moderate-buy view and an average target around $20.18.