What Healthpeak Properties (DOC) Said on Its Q3 Earnings Call

Key Points

• Healthpeak raised its 2026 outlook for the third time. Adjusted FFO guidance increased to $1.76–$1.78 per share, while total same-store cash NOI guidance rose to 0.5%–2%; quarterly adjusted FFO was $0.44 per share.
• Senior housing was a major growth driver, led by Janus Living. Janus posted 26% same-store NOI growth, and Healthpeak lifted its senior housing same-store growth outlook to 16%–19%.
• Leasing improved across outpatient medical and life science. Outpatient medical leasing supported a higher 2.5%–3% growth outlook, while life science occupancy rose to 79.8% and its same-store outlook improved, though it remains a projected decline of 3%–6%.

Healthpeak Properties NYSE: DOC raised its full-year earnings outlook for the third time in 2026 after reporting what President and Chief Executive Officer Scott Brinker described as a strong operational quarter across outpatient medical, life science and senior housing.

The company reported third-quarter funds from operations as adjusted of $0.44 per share, total same-store cash net operating income growth of 3.6%, and net debt to adjusted EBITDA of 4.7 times, according to Chief Financial Officer Kelvin Moses.

Healthpeak increased its full-year FFO as adjusted guidance by $0.02 at the midpoint to a range of $1.76 to $1.78 per share. Brinker said the company has now raised guidance by a cumulative $0.05 per share at the midpoint this year, primarily reflecting operating performance across its portfolio and the impact of Janus Living.

Outpatient Medical Leasing Remains Strong

In Healthpeak’s outpatient medical business, the company executed 846,000 square feet of leases during the quarter, including 218,000 square feet of new leasing and 628,000 square feet of renewals. Year-to-date lease executions reached 3.2 million square feet.

Moses said the company recorded another quarter of positive net absorption, while new lease commencements averaged terms of more than 11 years. Tenant retention rose to 81.7%, and cash releasing spreads were approximately 5% above historical averages. Renewal leasing costs averaged 9.5% of rents.

Outpatient medical occupancy ended the quarter at 90.3%, including a 50-basis-point negative impact from the Brookfield recapitalization and asset sales. On a comparable basis, occupancy increased sequentially, Moses said. The company entered the fourth quarter with another 269,000 square feet of executed leases and 1.03 million square feet under signed letters of intent.

Brinker said Healthpeak expects internal growth in outpatient medical to accelerate in 2027, supported by recent lease activity, fewer major lease expirations and the existing pipeline. The company raised its outpatient medical same-store outlook to growth of 2.5% to 3%.

Life Science Occupancy Gains and Acquisitions

Healthpeak’s life science portfolio recorded 480,000 square feet of executed leases in the third quarter, its strongest leasing quarter in more than a year. About 70% of the quarter’s leasing was new leasing, more than 80% involved biotechnology and research-and-development tenants, and over 40% was for previously vacant space.

Total life science occupancy rose 130 basis points sequentially to 79.8%, bringing the year-to-date increase to 270 basis points. The company has posted three consecutive quarters of positive net absorption in the segment.

Brinker said life science job growth turned positive during the third quarter, while some properties designated for laboratory use have been converted to alternative uses. He also pointed to growing demand from AI-adjacent users, including robotics companies, drawn to lab buildings’ power capacity, floor loads and ceiling heights.

Chief Development Officer and Head of Lab Scott Bohn said biotechnology remains Healthpeak’s core demand source, representing more than 75% of its pipeline, but AI and robotics demand has increased across the company’s three major markets. He said this demand is incremental in certain cases and is also removing some peripheral buildings from prospective lab supply.

The company announced three life science acquisitions with current occupancy of 41%, an in-place yield of 5%, and expected stabilized yields of 9% to 10%. Brinker said Healthpeak has leasing activity on roughly 70% of the acquired vacancy and is generally underwriting a two- to three-year lease-up period. The company expects the acquisitions to reset its reported life science occupancy lower initially because of their current vacancy.

Healthpeak has closed or has in its pipeline approximately $1 billion of life science acquisitions, Brinker said. The company is focusing on assets in submarkets where it already has a footprint, rather than entering new markets. It underwrote the recent acquisitions using current market rents and tenant-improvement assumptions, he said.

Healthpeak raised its life science same-store outlook to a decline of 3% to 6%, an improvement of 100 basis points from its prior outlook. Moses said lease executions typically require 12 to 15 months before they contribute to NOI and earnings, depending on build-out requirements and free-rent periods.

Janus Living Drives Senior Housing Results

In senior housing, Janus Living produced same-store NOI growth of 26%, revenue growth of 78%, and adjusted EBITDAre growth of 101% during the quarter. Brinker said Healthpeak’s same-store senior housing portfolio posted 300 basis points of occupancy growth and 26% NOI growth, while entry-fee sales reached a quarterly record.

Janus Living acquired 39 communities totaling approximately $2.1 billion during the quarter and through October, bringing its year-to-date acquisitions to $2.9 billion. Healthpeak owned 69% of Janus Living’s outstanding shares, representing approximately $6.1 billion of market value, Moses said.

Healthpeak raised its senior housing same-store guidance by 250 basis points to growth of 16% to 19%.

Balance Sheet and Refinancing Plans

Healthpeak ended the quarter with approximately $3.8 billion of liquidity as of Oct. 30. The company arranged two delayed-draw term loans during the year: a $400 million facility expected to be drawn in the fourth quarter and a $500 million facility expected to be drawn in the first quarter of 2027. Both loans are priced at SOFR plus 80 basis points.

Moses said the financing is intended to reduce commercial paper balances and provide flexibility as the company addresses $1.4 billion of 2027 debt maturities, including about $1.1 billion due in the first quarter. He noted that maturing debt carries an average borrowing cost of roughly 3%, below current market borrowing costs.

While management does not expect capital expenditures to rise dramatically from current levels, Moses said additional tenant improvements will accompany the company’s leasing activity as newly signed tenants build out and occupy space.

Healthpeak raised its total same-store guidance by 50 basis points at the midpoint to a range of 0.5% to 2%. Moses said the revised outlook reflects stronger leasing performance, delayed timing of remaining dispositions, and operating results that have exceeded the company’s initial expectations.

About Healthpeak Properties (NYSE:DOC)

Healthpeak Properties, Inc NYSE: DOC is a real estate investment trust that owns, operates and develops healthcare-related real estate in the United States. The company primarily serves healthcare providers, research organizations and senior-care operators through a portfolio of specialized properties.

Its main activities include the ownership and leasing of outpatient medical office buildings, life science facilities and senior housing properties. These assets support services such as physician practices, ambulatory care, medical research and senior living.

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