- Outpatient Medical Leasing Success: Achieved 4.9 million sq ft of leasing, including record 1 million sq ft new leasing, with 5% cash spreads on renewals and 79% tenant retention.
- Senior Housing Growth Exceeds Guidance: 12.6% same-store growth in senior housing, surpassing high-end guidance, alongside a planned Janus Living IPO for a pure-play REIT.
- Lab Segment Stability: 1.5% same-store NOI growth with 77% occupancy, executing 1.5 million sq ft of leases (562k sq ft new) and 5% renewal spreads.
- 2026 Acquisition Strategy: $464M in planned acquisitions, including a $314M JV buyout and South San Francisco Gateway Lab portfolio, with $360M in senior housing investments under LOI.
Segment Performance
The lab segment reported 1.5% same-store growth and 77% total occupancy. The company completed nearly 1.5 million square feet of lease execution, including 562,000 square feet of new leasing, and achieved positive 5% cash releasing spreads on renewals. The senior housing segment experienced 12.6% same-store growth, above the high end of the original guidance range.
Guidance and Outlook
For 2026, Healthpeak forecasts FFO as adjusted to range from $1.70 to $1.74 per share and total same-store NOI growth in the range of down 1% to up 1%. The company's guidance suggests a relatively stable performance, with a potential for growth in the senior housing segment.
Valuation
With a P/E Ratio of 160.51 and a Dividend Yield of 8.03%, the market seems to be pricing in a relatively stable and income-generating profile for Healthpeak Properties. The EV/EBITDA ratio of 12.92 suggests a moderate level of leverage. Analysts estimate next year's revenue growth at 3.5%, which is slightly above the current valuation multiples.
Operational Highlights
As Scott Brinker mentioned, "We expect occupancy declines in the near term as the new operators take over the assets held in the sovereign wealth JV, but we don't think it's material. We see significant upside, 50% plus NOI growth potential over the next two to three years." This suggests that the company is confident in its ability to create value through its operational expertise.