Healthpeak Properties Q4 Earnings Call Highlights
by Mitch Edgeman · The Markets DailyHealthpeak Properties (NYSE:DOC) executives emphasized resiliency in the company’s diversified healthcare real estate platform during the fourth-quarter 2025 earnings call, pointing to strong Outpatient Medical and Senior Housing performance that helped offset a difficult multiyear Life Science environment. Management also outlined significant portfolio repositioning, including asset sales in Outpatient Medical, a major Life Science acquisition in South San Francisco, and plans to create a standalone Senior Housing REIT through an IPO of Janus Living.
Fourth-quarter and full-year 2025 results
Chief Financial Officer Kelvin Moses said Healthpeak reported fourth-quarter FFO as adjusted of $0.47 per share and AFFO of $0.40 per share, with total portfolio same-store cash NOI growth of 3.9%. For the full year, the company posted FFO as adjusted of $1.84 per share, AFFO of $1.69 per share, and total same-store cash NOI growth of 4%.
On leverage and liquidity, Moses said Healthpeak ended the year at 5.2x net debt to Adjusted EBITDA with $2.4 billion of liquidity.
Outpatient Medical: leasing milestone, property sales, and synergy benefits
Chief Executive Officer Scott Brinker said Outpatient Medical now represents just over half of portfolio income and highlighted benefits from Healthpeak’s prior merger with Physicians Realty Trust. Brinker said the merger supported the internalization of property management across Outpatient and Life Science and produced more than $70 million of synergies, which helped offset Life Science headwinds.
Moses said Outpatient Medical delivered “sector-leading results” in 2025, including 4.9 million square feet of leasing and a company record 1.0 million square feet of new leasing. Healthpeak reported 5% cash re-leasing spreads on renewals, 79% tenant retention, 91% total occupancy, and 3.9% same-store growth for the year, which Moses said was above the high end of the company’s original guidance range.
Brinker also described strong private-market demand for outpatient assets, noting that cap rates have been compressing. He said Healthpeak sold $325 million of fully stabilized, less-core Outpatient Medical assets in the fourth quarter at a low 6% cap rate, recycling proceeds into Life Science opportunities with greater upside potential.
Life Science/Lab: early recovery signals, occupancy pressure, and the Gateway campus acquisition
Management characterized the Life Science environment as historically challenging, with Brinker noting the operating intensity peaked in the first half of 2025 and is now “fully impacting earnings.” Still, he said the company has seen continued improvement in capital raising and M&A activity in recent months, and that new deliveries are expected to fall toward zero for several years. Brinker added that some Life Science buildings are pivoting to alternative uses, which he said helps address supply overhang.
Moses said the lab segment ended 2025 with 1.5% same-store growth and 77% total occupancy, including the impact of the Gateway portfolio acquisition in South San Francisco, which he said reduced total occupancy by more than 150 basis points. For the year, Healthpeak completed nearly 1.5 million square feet of lease executions, including 562,000 square feet of new leasing, and posted positive 5% cash re-leasing spreads on renewals. Since year-end, the company reported an additional 100,000 square feet of leasing activity either executed or under letter of intent.
On the Gateway acquisition, Brinker described the property as a highly strategic 1.4 million-square-foot campus in South San Francisco with more than 500,000 square feet of vacancy. He said Healthpeak now owns and controls 210 acres in South San Francisco—roughly one-third of the land in the submarket—and owns 6.5 million square feet there in total, enabling what he called “unmatched solutions” for tenants. Brinker cited a broker report showing the Bay Area led Life Science markets in fourth-quarter and full-year 2025 absorption and leasing activity and has the largest volume of current tenant demand, which he said aligns with Healthpeak’s pipeline.
In Q&A, management said Gateway was underwritten to be roughly break-even on day one, with incremental upside expected over the next two to three years. Brinker said the company is seeing improving tenant demand but cautioned that Life Science leasing is “chunky,” with average deal sizes around 60,000 square feet. Management also said less than 10% of lab segment ABR comes from preclinical tenants.
Senior Housing strength and the planned Janus Living IPO
Healthpeak reported strong Senior Housing results, with Moses citing 12.6% same-store growth for 2025, including 16.7% growth in the fourth quarter. Brinker said fourth-quarter Senior Housing results were “outstanding,” pointing to three drivers: amenitized full-continuum campuses, active asset management with operating partners, and favorable supply-demand fundamentals.
Brinker also detailed the company’s plan to form a pure-play Senior Housing REIT, Janus Living, via an IPO. He said Healthpeak intends to contribute its entire Senior Housing portfolio to Janus Living in exchange for all shares of the new company, then sell shares to the public in the offering, which would dilute Healthpeak’s ownership. Janus Living would own 100% of its properties in a REIT structure, while Healthpeak would serve as manager. Brinker said Healthpeak’s economics would be driven by Janus Living’s operating results and stock price.
Following the Janus Living announcement, Brinker said Healthpeak closed the purchase of its joint venture partner’s 46.5% interest in a 3,400-unit Senior Housing portfolio for $314 million, giving Healthpeak full control of 19 communities. The company expects to transition 11 communities to Pegasus Senior Living and eight to Ciel Senior Living under management contracts. Healthpeak also disclosed $360 million of additional relationship-driven Senior Housing acquisitions in its pipeline, expected to close in the first quarter and be contributed to Janus Living. Brinker said the company filed a confidential S-11 with the SEC in December and expects the IPO could close in the first half of the year, subject to the SEC process.
2026 outlook: FFO guidance lowered on lab impact, capital recycling and refinancing ahead
For 2026, Moses guided FFO as adjusted of $1.70 to $1.74 per share. Total same-store NOI growth is forecast at -1% to +1%, with segment assumptions of:
- Outpatient Medical: 2% to 3%
- Lab: -5% to -10%
- Senior Housing: 8% to 12%
Moses said the earnings reduction is primarily attributable to lab occupancy losses, which have a lagging effect on earnings. He quantified $0.12 of earnings impact from lost base rent, higher operating expense exposure, and re-leasing capital, and noted the figure includes the impact of a $68 million contractual purchase option exercised in Salt Lake City at an 11% cap rate. Executives also cited headwinds from refinancing at higher rates, as well as a $150 million loan at approximately 10% interest rate and drag from redevelopment and development activity.
On 2026 transactions, Moses said the company has completed $464 million of acquisitions so far, including the Senior Housing JV buyout and the remaining South San Francisco Gateway lab portfolio. Healthpeak also has an additional $360 million of Senior Housing investments under LOI or purchase agreement. To fund activity, management said it is pursuing $1 billion or more of asset sales, recapitalizations, and loan repayments in 2026, and noted the strong private market for Outpatient Medical as a potential funding source.
Healthpeak also outlined approximately $1.1 billion of refinancing activity in 2026, including $650 million of senior unsecured notes maturing in July and $440 million of secured mortgages maturing throughout the year. Management said it does not currently plan to pull forward 2027 maturities into 2026, but intends to remain opportunistic.
Finally, Moses said the planned Janus Living IPO is not reflected in supplemental materials or earnings guidance and that the company does not anticipate a meaningful impact on 2026 guidance from the transaction.
About Healthpeak Properties (NYSE:DOC)
Healthpeak Properties, Inc is a real estate investment trust (REIT) specializing in healthcare-related real estate. Headquartered in Irvine, California, the company owns, develops and acquires a diversified portfolio of properties that cater to the evolving needs of the healthcare industry. Its investments span life science research facilities, medical office buildings and senior housing communities, positioning Healthpeak as a key provider of specialized real estate assets.
Within its life science segment, Healthpeak develops and leases laboratory and research space to biotechnology, pharmaceutical and other life science companies.