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Overall the call conveyed constructive progress across multiple strategic fronts: outpatient medical fundamentals are strong (solid re-leasing spreads, high occupancy, low leasing costs), senior housing outperformance and the Janus Living IPO created clear value and near-term monetization optionality, and life science leasing momentum is building with targeted occupancy improvement guidance (+100 bps). Key near-term risks include lab rent pressure (quarterly re-leasing spreads softened), known vacates/expirations in life science that require conversion of pipeline, temporary earnings drag and public-company costs from the IPO, and refinancing/interest-rate headwinds. On balance, the company emphasized disciplined capital allocation (opportunistic acquisitions, recaps with Blackstone, share buybacks) and expects the recent transactions to be accretive over time.
Healthpeak raised its 2026 FFO as adjusted guidance to $1.71–$1.75 per share (up $0.01) after reporting 1Q FFOa of $0.45 and a net debt/EBITDA of 5.4x; same‑store NOI guidance is unchanged while interest expense is now expected to be about $20M higher and G&A about $5M higher. Management repurchased $100M of stock in April at an implied FFO yield >10% (accretive), paid >$200M of dividends in 1Q (a ~7.5% annualized yield), and expects the Janus Living IPO (Healthpeak ~81.6% owner, ~$5.7B implied market value) to be earnings‑neutral in 2026 and accretive thereafter—roughly $0.04 per share once proceeds are fully deployed—with plans to deploy roughly $750M of cash into acquisitions by year‑end. They also expect life‑science total occupancy to rise at least 100 bps versus year‑end 2025, supporting the outlook for earnings upside.
Reported FFO as adjusted of $0.45 per share for Q1 and raised full-year 2026 FFO guidance to a range of $1.71 to $1.75 per share (midpoint ~$1.73), supported by a $100M share repurchase in April (at an implied FFO yield >10%) and senior housing performance.
Completed the Janus Living IPO in March; Janus delivered 35% total revenue growth and 42% adjusted EBITDA growth in Q1. Healthpeak retains ~81.6% ownership (market value ~ $5.7B). Management expects the IPO to be earnings neutral in 2026 and accretive thereafter, with roughly $0.04 per-share run-rate accretion once IPO proceeds are fully invested and stabilized.
Since the Physicians merger >10 million sq ft of renewals signed with average cash re-leasing spreads of ~5.8% (5.4% in the quarter). Q1 outpatient metrics: 1.1 million sq ft executed, 79% tenant retention, 91% total occupancy, ~3% average escalators, and modest leasing costs at ~10% of annual rents. In-house renewals saved approximately $5 million in leasing commissions in Q1.
Closed a joint-venture recap with Blackstone on a fully occupied outpatient portfolio at a 6.1% cash cap rate, raising $170 million in proceeds. Management noted a pipeline of additional transactions that could generate $700M+ of proceeds at cap rates approximately 200 basis points tighter than what is implied by Healthpeak's stock price.
Life science total occupancy increased to 77.7% (from ~77%); executed 141,000 sq ft of leases in Q1 (92% new leasing). Approximately 355,000 sq ft under LOI (≈80% new leasing; ≈75% on currently vacant space), including 4 deals >50,000 sq ft. Company expects total life science occupancy to increase at least 100 basis points versus year-end 2025.
Completed opportunistic Gateway acquisition at attractive pricing in early January. Already signed/LOI activity includes 62,000 sq ft of signed leases/LOIs, plus 113,000 sq ft of active proposals/tours. Management said leasing and rents at-or-above underwriting and positioned for 2027+ earnings upside.
Senior housing entry fees set an all-time Q1 high. Healthpeak invested ~$714M of senior housing acquisitions on-balance-sheet pre-IPO, and expects the senior housing portfolio to generate strong returns and offset IPO impacts; $240M of current-year FFO from that portfolio was cited as being valued at a materially higher multiple in the IPO market.
Reported net debt-to-EBITDA of 5.4x. Actions in Q1 included repayment of $103M of secured mortgages, closing a $400M undrawn senior unsecured delayed-draw term loan, and executing a $100M share buyback. Management has been actively recycling capital with ~$1B of targeted recaps/sales and ~$1B of acquisitions (with ~$1B of acquisitions effectively completed).
Progress on mixed-use Alewife project: preliminary planning board initial approval received; entitlements targeted by Q4 2026 with potential residential groundbreaking in ~2027 (Hines as multifamily partner).
Good morning and welcome to the Healthpeak Properties, Inc. First Quarter 2026 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President of Investor Relations. Please go ahead.
Welcome. Today's conference call contains certain forward-looking statements. Although we believe expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations. A discussion of risks and risk factors is included in our press release and detailed in our filings with the SEC. We do not undertake a duty to update any forward-looking statements. Certain non-GAAP financial measures will be discussed on this call. In an exhibit to the 8-K we furnished to the SEC yesterday, we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. The exhibit is also available on our website at healthpeak.com.
I'll now turn the call over to our President, Chief Executive Officer, Scott Brinker.
Thanks, Aj and welcome to Healthpeak's first quarter earnings call. Grateful for our team who delivered a first quarter with excellence in execution, one of our WE CARE core values. In early January, we completed the once-in-a-decade buying opportunity at the Gateway campus in South San Francisco for a small fraction of replacement cost. We're already driving leasing momentum at the campus wi...