Healthpeak Properties, Inc.

Healthpeak reported second-quarter FFO as adjusted of $0.46 per share and net debt-to-EBITDA of 4.7x. In outpatient medical, the company executed 1.2 million square feet of leases, including about 327,000 square feet of new leasing, with 80% tenant retention, 5% cash re-leasing spreads, and total occupancy up 20 basis points sequentially to 90.7%. In lab, it executed 381,000 square feet of leases and ended the quarter with total occupancy up 80 basis points sequentially to 78.5%; this was 140 basis points higher than year-end 2025. Janus Living delivered 45% total revenue growth and 34% adjusted EBITDA growth, and ended the period with cash on the balance sheet and no outstanding debt. Management raised full-year FFO as adjusted guidance by $0.02 to $1.73-$1.77 per share, citing a 75 basis point increase in total same-store NOI from midpoint, including 200 basis points increases in both Lab and Senior Housing and the recognition of low market interest amortization related to the $400 million seller note repayment. Through year-end, the company expects $1.9 billion of gross proceeds from capital recycling initiatives, and it has completed $1 billion of acquisitions and buybacks to date.

Scott Brinker framed the quarter as evidence that Healthpeak's repositioning is paying off after several difficult years, emphasizing that the company now has more scale, stronger capabilities, and a more flexible capital platform. He said the firm is acting as an 'on-the-ground operator' and highlighted the Brookfield and Blackstone partnerships as proof that major institutional investors want Healthpeak as a partner. His tone was confident and opportunistic, stressing that the balance sheet is stronger than ever and that the company can be patient in deploying capital into outpatient development, lab acquisitions, and buybacks when conditions are attractive.

Kelvin Moses focused on execution and balance sheet strength. He said Healthpeak raised $1 billion of cash proceeds from the Brookfield outpatient medical recapitalization, while retaining a 51% ownership interest in a 5.6 million square foot portfolio; he also noted the transaction implies a 5.9% trailing cash cap rate and a potential 6.5% unlevered return for Brookfield after 7 years. He reported $1.9 billion of gross proceeds expected from capital recycling through year-end, $1 billion of acquisitions and buybacks completed to date, $900 million of debt repaid through August 4 including $650 million of senior unsecured notes in July, $4.1 billion of available liquidity, and net debt to adjusted EBITDA of 4.7x. He also pointed to the FFO as adjusted guidance increase to $1.73-$1.77 per share.

Analysts focused heavily on the lab recovery, asking when same-store or occupancy would inflect more clearly, how competitive leasing terms are changing, and whether the company would pursue distressed lab acquisitions. Management said the key metric is total occupancy, not same-store, and argued the portfolio is already trending positively with commencements expected to exceed expirations in the back half of the year; they also said any deal activity will focus on core markets where Healthpeak can add value with its platform, and that some opportunities may be complex or take time. On outpatient, questions centered on why spreads were slightly lower sequentially and whether more JV activity is likely; management said the quarter's spread result was driven by one larger Boston lease and that the underlying mark-to-market remains strong, while also saying they expect to do more with Brookfield and Blackstone because both want Healthpeak as their GP in this space.