Healthpeak Boosts 2026 Outlook Amid Portfolio Sales

Healthpeak Properties reported second-quarter results on August 4, simultaneously raising its full-year 2026 guidance for the second time this year. The healthcare real estate owner now projects diluted earnings per share between $0.48 and $0.52, an increase from the previous range of $0.46 to $0.50. Diluted FFO as Adjusted is also expected to rise by two cents at the midpoint to $1.73-$1.77, reflecting a business that is performing strongly across most of its core segments.

The positive trajectory is driven by sustained activity in outpatient medical and lab leasing, where the company signed 1.6 million square feet of new and renewal leases. Outpatient medical occupancy increased by 20 basis points to 90.7%, while lab occupancy climbed 80 basis points to 78.5%. This momentum was further reinforced by 882,000 square feet of outpatient medical space under letter of intent as of August 3, indicating that leasing velocity continues well beyond the quarter-end.

Janus Living Drives Revenue Growth

A significant portion of Healthpeak’s growth is attributed to Janus Living, the senior housing operator in which Healthpeak holds a 73.6% stake. Janus Living’s revenue surged 45% year-over-year to $216 million, while Adjusted EBITDA rose 34% to $79 million. Same-store margins expanded by 250 basis points, demonstrating improved operational efficiency. This growth is backed by substantial capital deployment, with Janus Living closing approximately $1.0 billion in senior housing acquisitions between quarter-end and August 3, funded entirely with cash.

Balance Sheet Reshaping Through Dispositions

Healthpeak utilized the quarter to restructure its balance sheet rather than simply expand its debt load. In July, the company sold a 49% stake in an 86-property outpatient medical portfolio to Brookfield, generating roughly $1.025 billion at a 5.9% cap rate. Combined with other asset sales and loan repayments, total proceeds reached $1.4 billion through August 3. The company applied these funds to retire $650 million of 3.25% senior notes and approximately $375 million of commercial paper, while the board authorized a new $500 million share buyback program.

Lab Segment NOI Decline Persists

Despite improved occupancy, the lab segment remains a drag on overall performance. Lab same-store net operating income fell 3.2% in the quarter, making it the only core business to shrink. This decline capped total company-wide same-store NOI growth at 1.8%, significantly lagging the 19.2% growth posted by Janus Living. Consequently, FFO as Adjusted per share remained flat at $0.46 compared to the prior year, and net debt to Adjusted EBITDAre stood at 4.7 times, indicating that balance sheet optimization is an ongoing process.