Janus Living NYSE: JAN raised its 2026 outlook after reporting third-quarter gains in revenue, profitability and same-store operating performance, while continuing to expand its senior housing portfolio through acquisitions.
President and Chief Executive Officer Scott Brinker said the company more than doubled its asset base during the year and ended the quarter with no debt. Janus Living’s same-store portfolio consists entirely of life plan communities, which Brinker described as serving active seniors with average stays of eight to 10 years and high barriers to entry.
“We more than doubled the asset base this year without sacrificing quality or returns, and consistently increased guidance,” Brinker said. He added that the midpoint of the company’s same-store growth outlook has risen 750 basis points from the guidance implied in February.
Third-Quarter Operating Results
Senior Vice President of Finance and Investor Relations Jonathan Hughes said consolidated revenue increased 78% year over year in the third quarter, while adjusted EBITDAre rose 101% and FFO as Adjusted per share increased 46%.
Same-store revenue grew 9.8% from a year earlier and 2.4% sequentially. The year-over-year increase was supported by 300 basis points of occupancy growth, led by independent living, while same-store occupancy increased 110 basis points from the second quarter. Hughes said occupancy was approaching 90% in the same-store portfolio.
Revenue per occupied room, or RevPOR, increased 6.5% year over year, or 4.4% excluding non-refundable entrance fee amortization. Same-store expenses rose 4.6%, although expenses per occupied unit increased 1.7%.
Same-store net operating income increased 25.9% year over year, with margins expanding 360 basis points from a year earlier and 80 basis points sequentially. Brinker noted that the third quarter benefited in part from a comparatively low prior-year base, when same-store growth was about 10%.
Janus Living recorded $47 million of non-refundable entrance fee sales, a third-quarter record. Brinker said both the number of entry-fee sales and average pricing set records, with average prices 11% above the prior year. The company said cash entry fees have exceeded the amortized amount recognized in earnings for 22 consecutive quarters, including by $17 million in the third quarter.
Brinker said the company’s entry fees are broadly affordable, with net entry fees equal to about 60% of median local home values. He also said the company’s cash flow measure, AFFO, has consistently exceeded FFO because of the excess of cash entry fees over amortized entry-fee revenue.
Acquisitions and Operator Partnerships
Janus Living completed $2.9 billion of acquisitions year to date, including $1.75 billion during the third quarter. After quarter-end, the company completed another $370 million of acquisitions and had $82 million under binding purchase agreements, according to Hughes.
The company said its completed acquisitions are being underwritten at year-one cash NOI yields in the low-6% range, improving to 7.5% or higher by year three. Brinker said the company’s acquisition cost basis was about $350,000 per unit, below replacement cost.
Janus Living has expanded to 13 operating partners, with additional relationships in the pipeline. Brinker said the company seeks to acquire individual properties and smaller portfolios, allowing it to assess the quality and expected returns of each asset. He said the company expects to work with roughly 20 operators in the near term rather than pursuing a much larger operator base.
About 80% of acquisitions completed year to date did not involve an operator transition because the operating partner was already managing the property and sought a recapitalization, Brinker said. For acquisitions involving management changes, the company assumes more conservative first-year occupancy levels in its underwriting.
Occupancy in the non-same-store portfolio was approximately 84%, including communities acquired this year and properties undergoing transitions. Hughes said occupancy is beginning to stabilize across an 18-community transition portfolio. Brinker said management expects progress through year-end and into 2027, though transitions can require time for technology conversions, leadership changes and community-specific business plans.
Balance Sheet and Updated Outlook
In August, Janus Living completed a follow-on offering of Class A-1 common stock that generated $513 million in net proceeds. In September, the company increased its unsecured revolving credit facility to $1.25 billion and terminated a $100 million delayed-draw term loan.
As of Oct. 30, Janus Living had about $1.2 billion of available liquidity, including unrestricted cash and available revolver capacity. Chief Financial Officer Kelvin Moses said equity remains the company’s primary source of capital for external growth, though it intends to use its balance sheet strategically and pursue an investment-grade credit rating in 2027.
Moses said a swapped term loan would likely price in the mid-5% range, which he said would remain accretive relative to acquisition initial yields around 6%.
Janus Living increased its 2026 FFO as Adjusted guidance to a range of $0.97 to $0.99 per share, from a prior range of $0.95 to $0.98. It also increased its same-store adjusted NOI growth outlook to 16% to 19%, representing a 250-basis-point increase at the midpoint.
Looking ahead, management did not provide 2027 guidance but said current operating trends have remained similar. Brinker said occupancy across the company’s entire portfolio was 86.5% in the third quarter, leaving what he characterized as meaningful upside from further occupancy gains.
About Janus Living (NYSE:JAN)
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