Healthpeak Properties, Inc. Q2 FY26 Earnings Analysis

- **Life Science Occupancy Growth:** Expect total life science occupancy to increase by at least 100 basis points by year-end 2026, driven by a robust leasing pipeline and continuing net absorption. - **Outpatient Medical:** Solid execution with consistent 5-6% cash re-leasing spreads on renewals and 3% escalators; occupancy and leasing pipelines remain strong supporting steady revenue growth. - **Senior Housing:** Phenomenal 1Q results with expected accretion from Janus Living IPO in 2027 and beyond; strong revenue and EBITDA growth reported. - **Leasing Activity:** Significant leasing activity post-1Q with 318,000 sq ft leases executed since April and 700,000 sq ft under LOI, indicating robust demand and revenue potential. - **Capital Deployment:** Aggressive ~$1 billion capital recycling targeting accretive acquisitions and growth-oriented investments, particularly in core markets like Bay Area and senior housing. - **Earnings Outlook:** Raised full-year FFO guidance slightly due to strong 1Q results and anticipated capital deployment benefits, signaling positive future earnings and revenue growth trajectory.

- Outpatient Medical: Continued strong leasing activity with 5-6% re-leasing spreads, 3% rent escalators, very modest leasing costs; supporting stable earnings growth. - Life Science: Occupancy expected to grow by at least 100 basis points in 2026, broad-based pipeline with positive leasing economics. Life science earnings poised for growth as occupancy improves. - Senior Housing: Janus Living IPO proceeds expected to be earnings neutral in 2026 but accretive by approximately $0.04 per share once fully invested. Senior housing acquisitions expected to contribute ~$0.03 EPS in 2027. - Capital Deployment: $714 million invested in senior housing acquisitions pre-IPO, with $750 million planned for acquisition deployment. - Stock Buybacks: $100 million repurchase at >10% FFO yield, accretive and supporting raised 2026 FFO guidance to $1.71–$1.75 per share. - Overall: Positive earnings trajectory with solid pipeline, lease renewals, and capital recycling expected to drive growth throughout 2026 and into 2027.

- $1 billion of capital invested in the past 12 months, including $714 million in senior housing acquisitions. - Progress toward the $1 billion capital recycling target with $270 million proceeds already received. - Gateway acquisition (late December/early January) is performing well, with upside expected in 2027 and beyond. - $650 million of senior notes maturing in June to be refinanced, impacting second half 2026. - $400 million senior unsecured delayed draw term loan secured, undrawn, available through December 2026. - Focus on disciplined capital allocation, prioritizing core markets with high thresholds for new investments. - No current intention for additional life science portfolio dispositions; capital mainly deployed into leasing, development, and acquisitions. - Mixed-use project (5 million sq.ft.) expected to advance entitlements in 2026, with residential groundbreaking possible in 2027. - Janus Living IPO proceeds to be deployed: $750 million per year expected in acquisitions, accretive to earnings from 2027 onward.

- In March, Healthpeak closed a new senior unsecured delayed draw term loan totaling $400 million, which remains undrawn, with availability through December 2026 for drawdown. (Page 3) - The company plans capital deployment of $750 million per year into acquisitions, with $1 billion of capital already invested in the first quarter. (Page 6) - They repurchased $100 million of stock in April at an implied FFO yield of over 10%, supporting earnings and suggesting no immediate need for equity raising. (Page 3) - There is no explicit mention of immediate plans for new equity fundraising; IPO-related impacts from Janus Living are expected to be earnings neutral in 2026 and accretive thereafter. (Page 3) - Regarding debt, $650 million senior notes at 3.5% are due for refinancing in June, representing an upcoming refinancing event. (Page 7)

- The life science segment has a strong and broad-based leasing pipeline, including venture-backed biotech to large-cap pharma tenants. - Approximately 700,000 square feet of leases are under Letter of Intent (LOI). - In the lab portfolio, approximately 355,000 square feet is under LOI, with about 80% new leasing and 75% on currently vacant space. - There is robust leasing activity, including several deals greater than 50,000 square feet. - There is significant new leasing pipeline in both outpatient and life science businesses, driving expectations for occupancy growth through year-end. - New leasing commencements plus signed but not occupied leases support positive occupancy trajectory. - Pipeline momentum supports at least 100 basis points occupancy increase year-over-year by the end of 2026.