DOC

A month has gone by since the last earnings report for Healthpeak (DOC). Shares have lost about 3.5% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Healthpeak due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Healthpeak Properties reported second-quarter 2026 FFO, as adjusted, of 46 cents per share, which topped the Zacks Consensus Estimate of 44 cents by 4.6%. The figure was unchanged year over year. Total revenues of $771.6 million rose 11.1% year over year and beat the consensus mark of $726.2 million by 6.3%. The results reflected solid leasing across outpatient medical and lab properties, along with stronger senior housing operations. Combined new and renewal lease executions totaled 1.6 million square feet, while total same-store adjusted NOI increased 1.8%. Outpatient medical leasing remained the largest contributor. New lease executions totaled 327,000 square feet, while renewal leases reached 916,000 square feet. Total outpatient medical occupancy improved 20 basis points sequentially to 90.7%. Lab leasing also advanced, with 222,000 square feet of new leases and 159,000 square feet of renewal leases. Total lab occupancy increased 80 basis points sequentially to 78.5%. Healthpeak also entered into additional leases after the second quarter-end and reported a substantial pipeline under signed letters of intent. Outpatient medical same-store adjusted NOI grew 2.5% year over year to $189.1 million. Same-store cash real estate revenues increased 3.2%, while same-store cash operating expenses rose 4.4%. Same-store occupancy was 91.9%, down 50 basis points year over year. Lab same-store adjusted NOI declined 3.2% to $114.2 million as revenues fell 2.1%. Same-store occupancy was 90.3%, down 410 basis points. Senior housing was the standout, with same-store adjusted NOI rising 19.2% to $32.1 million. Occupancy in that portfolio increased 260 basis points to 88.6%. Outpatient medical adjusted NOI slipped 1.8% to $198 million, while lab adjusted NOI was nearly flat at $142.6 million. Senior housing adjusted NOI increased 25.4% to $45.9 million. Janus Living, Healthpeak’s senior housing spin-off, generated second-quarter revenues of $216 million, up 45%, while adjusted EBITDAre rose 34% to $79 million. Healthpeak owned a 73.6% equity interest in Janus Living as of June 30, 2026. Property operating expenses increased 20.6% year over year to $333.1 million. Depreciation and amortization rose to $283.4 million from $265.9 million, while general and administrative expenses increased to $22.5 million from $20.8 million. Interest expense climbed 22.9% to $92.3 million. The largest transaction was the sale of a 49% interest in an 86-property outpatient medical portfolio to Brookfield in July 2026. The portfolio was valued at $2.1 billion, and the deal generated approximately $1.025 billion in proceeds. Healthpeak retained a 51% interest and will continue to provide asset and property management services. After quarter-end, Healthpeak used the Brookfield transaction proceeds to repay $650 million of senior notes and around $375 million of commercial paper borrowings. Healthpeak generated $1.4 billion of proceeds from outpatient medical recapitalizations, seller financing loan repayments and dispositions during the second quarter and through Aug. 3, bringing year-to-date proceeds to $1.75 billion. Available liquidity totaled $4.13 billion as of June 30. Cash and cash equivalents were $1.63 billion, up from $467.5 million at the end of 2025. Net Debt to Adjusted EBITDAre improved to 4.7X from 5.4X in the preceding quarter. Management increased its 2026 FFO, as adjusted, guidance to $1.73-$1.77 per share from $1.71-$1.75. Total same-store cash adjusted NOI growth is now expected between 0% and 1.5% compared with the prior range of a 1% decline to 1% growth. In the past month, investors have witnessed a flat trend in estimates review. At this time, Healthpeak has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Healthpeak has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Healthpeak belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Welltower (WELL), has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Welltower reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.61 for the same period compares with $1.28 a year ago. Welltower is expected to post earnings of $1.64 per share for the current quarter, representing a year-over-year change of +22.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Welltower has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Healthpeak Properties, Inc. (DOC) : Free Stock Analysis Report Welltower Inc. 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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET President and Chief Executive Officer - Scott Brinker Chief Financial Officer - Kelvin Moses Senior Vice President, Investor Relations - Andrew Johns Senior Vice President - Scott Bohn Operator: Good morning, and welcome to the Healthpeak Properties, Inc. Second Quarter 2026 Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President, Investor Relations. Please go ahead. Andrew Johns: Welcome. Today's conference call contains certain forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations. A discussion of risk and risk factors is included in our press release and detailed in our filings with the SEC. We do not undertake a duty to update any forward-looking statements. Certain non-GAAP measures will be discussed on this call. In an 8-K that we filed with SEC yesterday, we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with regulatory requirements. The exhibit is also available on our website at healthpeak.com. I'll now turn the call over to our President and Chief Executive Officer, Scott Brinker. Scott Brinker: Thanks, A.J., and welcome to Healthpeak's second quarter earnings call. WE CARE is the acronym we use for our core values with the W representing our winning mindset. That's easy to do when demand exceeds supply and fundamentals are in your favor. Everyone's happy and looks really smart. It's a lot harder to do when supply exceeds demand, but that's exactly when a winning mindset is needed the most. As the life science pendulum finally starts to swing back in our favor, I want to say thank you to the team here who live up to our core values and maintain a winning mindset these past four years. It absolutely paid off, and we're stronger because of it. The downturn also provided a window to redefine our company and reset the competitive landscape. We were bold and strategic, including a $5 billion merger and $1 billion IPO. Today, we're a bigger and better company because of those decisive actions. Even more important, we added capabilities, including strategic new hires and internalizing property management in much of our renewal leasing. Now we're in the process of rolling out our agentic operating platform. This modern version of Healthpeak is an on-the-ground operator who generates superior results with our people and platform. We're already seeing a payoff from this strategy. In the past two quarters, two of the largest and most respected real estate investors in the world chose Healthpeak as their operating partner. Neither Blackstone or Brookfield had any meaningful prior exposure to the outpatient medical sector. Both joint ventures allow us to maintain control of strategic buildings and tenant relationships, while providing an alternative source of equity capital. We're excited to grow both of those partnerships in the future. Our balance sheet is stronger than it's ever been. Leverage is below 5x, and we have flexibility to pursue a number of capital allocation alternatives. We're funding highly pre-leased outpatient development projects sourced directly through our relationships such as the project in Atlanta that we announced last evening. We can also do outpatient acquisitions in our joint ventures with Blackstone and Brookfield, where the deal structures generate additional returns to Healthpeak as the operating partner. We also see a unique opportunity in life science to create value via acquisition. Life science has been a development game for the past decade, but for the next few years, it will be an acquisition game, and we have the platform and balance sheet to capitalize on the opportunity. We can also do stock buybacks if and when the stock price is well below intrinsic value. Today, that's less attractive, but we did buy back $100 million in April at a 10-plus percent FFO yield when the stock was less than $17 per share. And finally, we could maintain leverage below our 5.5x long-term target given the cost of debt today isn't much lower than the fair market cap rate of our real estate. This is not the right environment to have elevated leverage. With our strong balance sheet, we can afford to be patient and utilize our dry powder when it's most impactful. A few comments on operating results and the underlying environment. The strong fundamentals in outpatient medical that we spoke to with the merger announcement 3 years ago continued to be validated. Last quarter, we had plus 5% cash re-leasing spreads and modest TIs that continue to be materially lower than peers. Total occupancy increased 20 basis points sequentially, and our leasing pipeline suggests that an internal growth in the outpatient portfolio will accelerate in 2027. In life science, public capital raising last quarter was the highest since 2Q '21. The IPO market is healthy but measured with 13 later-stage companies raising more than $5 billion in proceeds in the first half of the year. This week alone, we could see 5 biotech priced IPOs. M&A has been record-breaking with more than $250 billion of announcements in the last 3 quarters, which recycles capital back into the ecosystem. Most important, the science continues to advance and year-to-date FDA approvals are above the 5-year trend. The building blocks are in place for occupancy in the sector to inflect, led by Healthpeak. In Senior Housing, we'll provide all the details on the Janus Living call, but happy to report that same-store portfolio had 260 basis points of occupancy growth and 19% NOI growth. We have an active and accretive acquisition pipeline sourced through our deep relationships in the sector, including $1.8 billion closed since January 1. Our Senior Housing portfolio will essentially double in size this year, and the number of operating partners will increase from 2 to more than 10. We're on pace to accomplish a 3-year business plan in 12 months. Janus Living success is also driving earnings growth at Healthpeak, given our unique and creative deal structure that aligns the interest of both companies. I'll turn it to Kelvin. Kelvin Moses: Thank you, Scott. We continue to execute our plan and have made tremendous progress year-to-date in our leasing and capital allocation objectives. I'll take a moment on our outpatient medical recapitalization with Brookfield. We're pleased to complete this strategic partnership as the proceeds raised exceed our capital recycling target for the year in a single transaction. With the leadership from our investment's team, we have demonstrated our ability to execute scale transactions and partner with leading institutional investment managers. From a structure perspective, Healthpeak will retain a 51% ownership interest in a 5.6 million square foot outpatient medical portfolio and raise $1 billion of cash proceeds. We will utilize our best-in-class platform and expertise to provide asset management, property management and leasing services maintaining day-to-day control of the real estate and preserving our client relationship. Economically, the transaction represents a trailing cash cap rate of 5.9% and after 7 years, we'll have a finite number of call rights to repurchase the noncontrolling interest at a price sufficient to provide Brookfield a 6.5% unlevered rate of return. Most importantly, this partnership expands our access to alternative sources of equity capital with a framework we can replicate to pursue growth opportunities across our business. Now turning to the second quarter results. We reported FFO as adjusted of $0.46 per share and net debt-to-EBITDA of 4.7x. Now starting with outpatient medical. We had another strong quarter of leasing as we continue to see demand for our real estate. For the quarter, we executed 1.2 million square feet of leases, including approximately 327,000 square feet of new leasing, bringing our year-to-date total to 2.3 million square feet. We achieved 80% tenant retention and cash re-leasing spreads of 5%, which is in line with our average of 5% over the last 10 quarters and above our pre-Physician Realty merger averages of 2% to 3%. We ended the quarter with total occupancy up 20 basis points sequentially to 90.7%. Since July 1, we have an additional 204,000 square feet of lease execution and approximately 882,000 square feet under LOI. I'd like to highlight our partnership with Northside in Atlanta as it's proven to be a source of strategic growth for our outpatient portfolio. We have now entered into another development agreement for the ground up construction of a new outpatient medical project to support their expansion in Atlanta, where we have #1 market share. This will be the fifth development project with Northside, totaling approximately 565,000 square feet. Moving to Lab. We continue to make progress towards net absorption and total occupancy capture through year-end. For the quarter, we executed 381,000 square feet of leases, of which approximately 60% was new leasing and 30% on vacant space. We ended the quarter with total occupancy increasing by 80 basis points sequentially to 78.5%. That is a 140 basis points increase since year-end 2025. And since July, we've entered into approximately 20,000 square feet of leases and have another 480,000 square feet under LOI. As a result of this activity, we anticipate a modest improvement in total occupancy by year-end from where we stand as of June 30. These results reflect our focus on driving leasing volumes at our properties, which I would like to highlight by sharing our progress in Torrey Pines, the premier lab submarket in San Diego. The activity we've seen in Torrey is a testament to our team on the ground and our high-quality portfolio as tenants are seeking core assets and core locations with experienced landlords. This is allowing us to capture an outsized share of the deal volume. When accounting for executed leases and LOIs, our leased percentage in the submarket increases to 97% from approximately 65% at year-end 2025. [ And ending with Senior Housing. ] Healthpeak's ownership interest in Janus Living is now 74%, which represents approximately $6.5 billion of equity value. For the second quarter, Janus Living delivered total revenue growth of 45%, adjusted EBITDA growth of 34% and ended the period with cash on the balance sheet and no outstanding debt. Now moving to the balance sheet. We had significant activity during the second quarter into the third quarter against the backdrop of elevated borrowing costs. We have taken prudent steps to manage our debt maturities and maintain flexibility in accessing the capital markets. Through year-end, we now expect to generate $1.9 billion of gross proceeds from capital recycling initiatives, and to date, we have completed $1 billion of acquisitions and buybacks. Through August 4, we have repaid $900 million of debt, including $650 million of senior unsecured notes in July. We ended the second quarter with net debt to adjusted EBITDA of 4.7x and $4.1 billion of available liquidity. And quickly ending with guidance before we open up for Q&A. We raised our FFO's adjusted guidance range by $0.02 to $1.73 to $1.77 per share. The raise was driven by a 75 basis point increase in total same-store NOI from midpoint which includes a 200 basis points increase in both Lab and Senior Housing and the recognition of the low market interest amortization related to the $400 million seller note repayment. To recap, we've made significant progress across the business through the first half of the year, and our balance sheet has never been stronger. We have ample capacity available to deploy into new investments as we find opportunities. And with that, operator, please open the line for questions. Operator: Your first question is from the line of Ronald Kamdem from Morgan Stanley. Ronald Kamdem: I just wanted to add about the Lab portfolio, looked like occupancy picked up as you mentioned sequentially and still expecting sort of improvement in the back half of the year. I guess I'm just curious, as you're sort of putting it all together with the environment with the leasing pipeline, when do you think you'll have line of sight to be able to see sort of same-store inflect to the positive? Kelvin Moses: Hi, Ron, this is Kelvin. I'll start there. I mean I think what's most important that we've been really focused on is capturing more than our share of the demand in the market and driving net absorption through the portfolio. And we've been able to do that through the first half of the year. We started with 77% occupancy coming into the year and now we're at 78.5% total occupancy, which I think is a testament to the team doing a really phenomenal job on the ground to capture that demand, and it will certainly translate. We improved our same-store guidance for Lab by 200 basis points at the midpoint, and that's certainly trending in the right direction. That's driven by the improvement in occupancy and just the overall health that we're seeing in the sector. So I think it's probably a little too soon to predict exactly which quarter we'll see that inflection, but we're certainly trending in the right direction. Scott Brinker: Ron, I just want to add, same-store is less relevant. The real key is total occupancy and moving NOI in that segment higher. That's what generates earnings growth and ultimately share price. So that's all we talk about internally. That's the number we're reporting on. We report same-store because we have to. That's not the number we focus on. The key is we're growing total occupancy, and that's going to grow total NOI and ultimately earnings. So we're making progress already in the first half of this year. Operator: Your next question comes from the line of Juan Sanabria from BMO Capital Markets. Juan Sanabria: I appreciate how succinct the prepared remarks were. Just on the Lab and the competitive environment for leasing, you obviously have different players out there with different motivations, highly motivated to push up leasing as you guys are. But just curious if anything has changed with regards to the rate environment, free rent, build-out costs, et cetera? And maybe as part of that, if you can comment on any changes in the size of tenants out there, small, medium, large and where the improvements have been? Kelvin Moses: Hi, Juan, this is Kelvin. I'll start there. What I'd say is the pipeline continues to be fairly robust. We've seen since September 25, strong demand just continue in the portfolio. We've had a 2 million square foot leasing pipeline. And we've been capturing that demand and translating it into executed LOIs and leases. So as of the earnings call, we had 500,000 square feet under LOI, which is within our 2 million square feet of pipeline. And I'd say the characteristics of that pipeline hasn't changed dramatically. It's disproportionately wet lab space. It's biotech tenants that are really attracted to core assets in core locations. So we're certainly a recipient of all of the positive momentum we've seen in the biotech sector. From a rates and concession standpoint, I'd say that the rates continue to be in line generally with our portfolio averages. Free rent has trended to be 1 month per year up to 2 months per year of lease term. And that's been fairly consistent. So it's really -- it's use dependent. It's a condition of the quality of the space, how much capital needs to be invested that's really driving the economics around these deals. And each situation is fairly unique. But most importantly, our portfolio can accommodate a wide variety of uses, and we've seen the benefit of that in our results. We've had fairly low capital deployed to capture that occupancy, just given the quality of our spaces for second-generation leases. And in certain instances where we have redevelopments, CapEx could be more elevated as we have to improve spaces that have been occupied for multiple decades by a single tenant. So I think the pipeline continues to be strong, and the team is doing a phenomenal job converting it. Scott Bohn: Juan, this is Scott Bohn. The only thing I'd add on that, too, is the, from a size perspective, we have seen more in that 25,000 to 75,000 square foot range, both in the execution as well as the LOI and pipeline bucket. So I think that size range is normalizing as we see the funding environment continue to improve. Operator: Your next question is from the line of John Kilichowski Wells Fargo. William John Kilichowski: Scott, in the opening remarks, you talked about the outlook for Lab getting more attractive here. I'm curious, are we getting back into an environment, where the distressed lab opportunity is looking more attractive to you? And what's the opportunity set today there? Scott Brinker: Yes. The building blocks for the sector recovery are definitely there, and we're starting to translate that into leasing pipeline and leasing execution and growing occupancy. So things are definitely getting better. Obviously, there was some work that needed to be done with vacancy. So it's not going to happen overnight, but the trajectory is clearly positive. I think the incumbents like Healthpeak are definitely capturing market share. So we're focused on core markets, buildings we want to own long term and particularly situations where we think our platform can bring something to the table and lease up a building that's otherwise not doing very well. So I think we've got the team and the balance sheet and the credibility to do all those things. The pipeline is active. It may end up not doing anything, we'll see. These deals take time to play out. Sometimes they're quite complicated, lenders involved, et cetera. But we're working on a number of situations. We obviously did the one at Gateway over the new year. It's doing phenomenally well. Scott, Natalia and the team are leasing it up, signed something like 125,000 feet of leases or LOIs since that purchase and active discussions on another 200,000 feet or so. So like really making good progress on that at a great basis. So hopefully, it's -- situations like that, that we're focused on core submarket in a situation where we can really add value with our platform and balance sheet and relationships. So we're working on a number of them, but no promises that any of them get done, but I think we'll end up being a consolidator over the next 24 months, which should prove to be a great time to grow the portfolio. Operator: Your next question is from the line of Austin Wurschmidt from KeyBanc Capital Markets. Austin Wurschmidt: Kelvin, I think you had said that about 30% of the new leasing in the second quarter was for vacant space. I'm just wondering if you can give us some sense about the difference between leased versus occupied today and kind of how that's trended versus last quarter? And what kind of a commencement schedule looks like across those leases that have been signed and are expected to take occupancy over the next 6 months or so? Kelvin Moses: Yes. Thanks, Austin, for that question. Without giving very specific guidance in terms of occupancy in the forward quarters, what I can simply say is that we have commencements in the back half of the year that exceed our expirations, and we continue to expect a modest improvement in total occupancy for the lab portfolio. We've talked about the pipeline. It continues to be healthy. And these leases have the potential to commence starting in 2026 that are within our LOI bucket. I wouldn't say it's a substantial share of that 500,000 square feet that we mentioned, but we do have the potential for some of our recent executions to benefit 2026 and into 2027. So we continue to focus on just capturing demand. We're only midway through the year. So there's plenty of time, no pressure on the team here to go out there and further improve the conversion of that pipeline that will drive incremental occupancy into 2027. Operator: Your next question is from the line of Seth Bergey from Citi. Seth Bergey: It sounds like the kind of activity in the market has certainly improved, and you're seeing kind of more tenants. I'm just wondering how is that conversion time line kind of changed just given the amount of the available lab space? Are you seeing a pickup between kind of when tenants come to market and getting across that finish line and signing a lease? Scott Bohn: Sure, Seth. It's Scott Bohn. I mean, we're still in an environment where folks are a little cautious, right? I mean, there's a little scar tissue out there. So I think people and groups are taking their time and doing the diligence they need to do, which they should in a lease process. So from initial tour to execution, depending on the deal, it could be 3 months, it could be 9 months, right? There's a lot of factors at play, size, organization, things like that, but it's been relatively consistent over the past 12 months. Operator: Your next question is from the line of Connor Mitchell from UBS. Connor Mitchell: You guys mentioned some CapEx that's required for second-generation leasing or spaces that have been occupied now turning over. Can you just expand on that a bit and maybe how much CapEx we should expect over the near or medium term just based on the known move-outs and the leasing pipeline? Kelvin Moses: Hi, Connor. This is Kelvin. I'll start there. What I would say is, generally speaking, as you look through the available space in our portfolio, we've done a great job over the year to invest in capital and preparing for these second-generation leases. So we've done a great job keeping capital costs low to obtain the occupancy that we've been able to achieve. So I think on our redevelopment assets, in certain instances, you'll see a more elevated capital need to get spaces that were occupied for multiple decades by a single tenant to be prepared for multi-tenant occupancy or to be modernized for the current user's requirements. So those spaces will require some elevated capital. But generally speaking, with our availabilities, we're looking at pretty modest capital cost across the board to get tenants in. We don't have much space in our portfolio that needs to be built out from shell. I think that's a huge advantage, both from a timing standpoint of getting a tenant to occupancy, but also from a capital spend standpoint. So we're certainly taking advantage of the quality of our space right now to be able to capture the demand. Scott Brinker: Yes. If you're looking for numbers too, I'd just say around 10% for renewals, probably 20%, 25% for new leasing. It's probably just a good rule of thumb, some higher, some lower, but just as an average, it's about what it's been over the last decade. Operator: Your next question is from the line of Rich Anderson at Cantor Fitzgerald. Richard Anderson: Very nice quarter. Last quarter, you guided to 100 basis point uptick in -- for the year in Life Science, and you've achieved that and then some so far. You have not made a commitment going forward necessarily on what that number will look like. And I can appreciate it's a lumpy business and so on. But is -- I guess, the question is 100 basis points up despite being 150 basis points up for the first half. Is that still in the range of possible, meaning like you could have some volatility in terms of timing of leasing, chunky assets that are coming -- that are expiring so on? Or is 100 basis points up the full year, meaning some giveback in the second half is probably off the table at this point? Kelvin Moses: Yes, Rich, maybe I'll try to answer that simplistically. When we had articulated the 100 basis points, that was off of year-end 2025, total occupancy at 77%, and we've already exceeded that. And I think for the balance of the year, I mentioned a few times that we have commencements that will exceed our expirations. Every quarter is unique in terms of the timing of when those vacates occur. So there could be some lumpiness, but we've anticipated modest improvement in total occupancy through year-end from here. So we've already captured the 100 basis points that we had articulated previously, and there's still room to capture some incremental occupancy through the balance of the year. Operator: Your next question comes from the line of Rich Hightower at Barclays. Richard Hightower: I guess shifting to outpatient for a minute. I noticed that, I guess, cash spreads decelerated a little bit in the second quarter versus the first quarter. So maybe just help us understand a window into that? And where would you estimate sort of the mark-to-market opportunity in outpatient? And I guess, thirdly, are you looking at growing that portfolio, maybe even via the JVs. Scott Brinker: Yes. Thanks for the question, Rich. Mark and the team are doing a great job taking advantage of solid fundamentals in that business. So the re-leasing spreads, I don't know they might have been down 20 basis points from last quarter, but they're up like 50% from the last decade at plus 5%. That's a phenomenal result in that business. And even better, we're doing it with very modest TIs. And we're getting 3% escalators on essentially all the leasing that's being done. So the re-leasing spreads only half the story, to couple that with low TIs and really strong escalators, just a phenomenal result. So we're actually really pleased with it. Operator: Your next question comes from the line of Farrell Granath from Bank of America. Farrell Granath: Staying on the MOB topic, I was curious if you can expand on your appetite for potentially doing more JVs, especially in this recap structure. And also, if you could just touch on what led you to do this Brookfield transaction, especially keeping the call option on the go forward. Scott Brinker: Yes. Adam and the team did a fantastic job with Brookfield. That's a great organization to work with. We've done some things with them over the years. Happy to have them as a partner going forward. They obviously have a huge balance sheet and appetite to grow as does Blackstone. So really two amazing partners to add to our portfolio over the last few quarters. And I would expect us to do more with each. The deal structures are a little different. We're 51% owner with Brookfield. We're a 20% owner with Blackstone. And they each have their own unique things that they're trying to pursue, but the common thread is they're looking to partner with Healthpeak as their GP in this business. We do have a fantastic existing portfolio that we can recap at what we think are strong prices. Obviously, they're getting the returns that they need. But from our perspective, these are strong prices. And with Brookfield, that buyback option, I mean, when this team joined Healthpeak, I don't know, 8 years ago, we inherited contracts that the tenants had a lot of purchase options that were in the money. I think we've created a purchase option here that will be in the money for Healthpeak. After 7 years, obviously, we'll make that decision at the time, but the 6.5% unlevered return with the quality of the portfolio, we think that's certainly achievable. So a great price upfront from our perspective, but also the ability to acquire assets in the future at a strong price, maintain the hospital relationships, control of the decision-making. I mean, it's really a phenomenal outcome. It just puts our balance sheet in the best position it's ever been with leverage below 5x. We're seeing a lot of opportunity across all three business segments that we're excited to take advantage of, but we'll be patient and make sure that when we actually use the dry powder that it's as impactful as possible. Operator: Your next question comes from the line of Michael Carroll at RBC Capital Markets. Michael Carroll: I know, Scott, you touched on this throughout the call, but I wanted to circle back on the lab acquisition opportunities what markets are most interesting? And should we think about this as more of a fee simple type acquisition, or are you still interested in the structured finance type deals that you guys done in the past? Scott Brinker: Yes. We'll focus on the core markets where we have a competitive advantage, people on the ground that can actually make a difference. We're already capturing more than our fair share of the leasing. So I think that will be a common thread in anything that we do is we can bring our platform to the table and create value in addition to our balance sheet. In terms of deal structure, we did some loans, I don't know, 2 years ago because owners hadn't really capitulated, so the pricing didn't make sense from our perspective. But I think we're getting closer to the point that pricing has come down. Gateway is a good example where fee simple made more sense. So I'd say the majority of what we're looking at today is feasible. But there may be unique situations where we'd still look to a loan structure with an option to buy. But pathway to ownership in any event, we're not here to make loans. Operator: Your next question comes from the line of Michael Stroyeck from Green Street. Michael Stroyeck: Can you maybe just provide some color on which lab markets are seeing the strongest demand today? And maybe related to that, where is pricing power holding up the best across those markets if there is differentiation? Kelvin Moses: Yes. Maybe I'll start, Michael. Thanks for the question. And I might ask Scott to jump in here as well. But we're certainly seeing the demand the strongest in the Bay Area. No surprise that the biotech ecosystem in that market just continues to thrive. And we're positioning our portfolio to be able to capture that demand. San Diego has also been tremendously productive. We talked about Torrey Pines and what we've seen there. And a good amount of that demand has been homegrown. These are existing clients that have had successful outcomes in their businesses and are seeking more space. That's the story that you like to hear across the sector, and that's happened quite frequently in the Torrey submarket that's driven those outcomes that we talked about getting from high 60s to high 90s, lease percentage is pretty phenomenal in a short amount of time. So great execution from our team, but also just the strength of what we're seeing in that market. Boston is probably the most challenged just given the supply overhang across that marketplace. I think where we're positioned in West Cambridge and Lexington, we have an opportunity to continue to capture demand that's kind of seeking that kind of suburban urban product, and we've done a phenomenal job there. We're also very well leased in that market. So with regards to our available spaces, we've been chasing a subset of the demand. There's other submarkets that are proving to become alternatives outside of biotech in life sciences. So as the supply overhang gets managed, that should probably improve over time. But Scott, I don't know if you'd add anything specifically... Scott Bohn: Yes. I think in Boston, one thing I would note is in the second quarter, we saw 80% of the market activity that we saw in all 2025, right? So you're certainly seeing signs of light there. I mean as Kelvin mentioned, there's the biggest supply-demand imbalance there. So a lot to work through, but our relative position there is important to remember, too. I mean, if you look at the Route 128 West market, I mean, overall, it's 30% vacant, but our assets are 11% vacant, right? So it really comes down to what is the quality of your assets within that particular submarket. And your question on pricing power, we talked about it a lot, but our portfolio of scale, especially in markets like Bay Area or Torrey allow us to see a lot of deals that aren't widely marketed, whether those are just relationships we have with tenants within the portfolio or otherwise or the VCs and many of those are groups who are growing within the portfolio. So we tend to have a little bit more pricing power on deals like that than you would on widely marketed deal. Operator: Your next question is from the line of Mike Mueller at JPMorgan. Michael Mueller: Scott, you touched on outpatient spreads. Was there anything out of the ordinary driving the weaker lapse rent spread in the quarter? Was it just spreads bouncing around, trying to drive occupancy or something else? Scott Brinker: It's just a unique situation. We've had very positive spreads for the last couple of years, plus or minus 5%, 6%, 7%. In most quarters, there's always going to be an outlier quarter, up or down. This was one where it was a little bit down. We had a lease in Boston. The team did a great job renewing at actually really strong terms. It's a 10-year lease, not much TI, but the rent was a little bit lower and ended up being a bit competitive, but the team did a great job winning that deal. So still a great outcome, but it's really just the one big lease that drove that outcome. I think Kelvin spoke earlier to the mark-to-market across the whole portfolio, plus or minus in line. But there are obviously going to be outliers on either side of that depending on specific building or when that lease was signed, nothing to read into this specific quarter though. Operator: We have reached the end of the Q&A session. The conference has now concluded. Thanks for attending today's presentation. You may now disconnect. Before you buy stock in Healthpeak Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Healthpeak Properties wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy. Healthpeak Properties (DOC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Healthpeak Properties has delivered a 35.1% return over the past year, yet the valuation checks send mixed messages, with the Discounted Cash Flow (DCF) intrinsic value estimate suggesting meaningful upside while earnings-based multiples point to a richer price tag. Over the last 12 months, Healthpeak Properties is up 35.1%, which puts more focus on whether the current share price still leaves a margin of safety. Future cash flow growth from its property portfolio can support the DCF-based upside case, although any pressure on rental income or funding costs may weigh on what investors are prepared to pay. The stock only passes 2 of 6 valuation checks, which means that on the broader set of measures Healthpeak Properties does not screen as a clear bargain despite the intrinsic value signal, and the low score of 2 highlights that split. The stock's next move may depend on whether the DCF-style intrinsic value or the richer market multiples end up being the better guide to what Healthpeak Properties is really worth. Find out why Healthpeak Properties' 35.1% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model used here is based on projected adjusted funds from operations that are discounted back to today. For Healthpeak Properties, the latest twelve-month free cash flow is about $1.29b, and the projections assume broadly growing cash flows rather than sharp swings. On those inputs, the model points to an intrinsic value of about $38.03 per share. That compares with a current share price that sits roughly 43.7% below the DCF estimate. This implies Healthpeak Properties screens as significantly undervalued on this cash flow view. The key question for investors is whether the relatively steady free cash flow assumptions hold up against any changes in rental income or funding costs over time. On this DCF set up, the stock appears undervalued relative to the cash flows currently included in the model. Our Discounted Cash Flow (DCF) analysis suggests Healthpeak Properties is undervalued by 43.7%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Healthpeak Properties. P/E is often a useful cross check for Healthpeak Properties because earnings capture how much investors are paying for each dollar of profit, not just cash flow. On this yardstick, Healthpeak Properties trades on a P/E of about 60.8x. That sits well above the Health Care REITs industry average of roughly 17.4x and also above the peer group average of about 49.0x. The Fair Ratio model, which blends factors such as size, risk profile and sector norms, points to a much lower reference P/E of about 18.9x. The gap between this and the current 60.8x is very wide, and the model is heavily penalising the stock for its risk and earnings profile. That does not mean 18.9x is a precise target. It is better read as a signal that Healthpeak Properties currently appears expensive on this earnings based framework. On the P/E multiple, Healthpeak Properties looks overvalued compared with both its industry and the more tailored fair value range suggested by the model. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Healthpeak Properties pick up where this valuation puzzle leaves off and explain what mix of future growth, margins and earnings would need to occur for the stock to be worth materially more or less than today’s price. Each Narrative treats fair value as a thesis about Healthpeak Properties' business that you can track over time, rather than a single static snapshot, and these Narratives are available on the company’s Community page. The Healthpeak Properties community is split between a bullish view built on technology and demographics and a bearish view focused on tenant and balance sheet risk. Bull case: 21% undervalued Read the full Bull Case to see why Healthpeak Properties could be undervalued Bear case: 21% overvalued Read the full Bear Case to see why Healthpeak Properties could be overvalued Do you think there's more to the story for Healthpeak Properties? Head over to our Community to see what others are saying! Healthpeak Properties screens as undervalued on the Discounted Cash Flow (DCF) intrinsic value estimate, yet clearly overvalued on earnings-based multiples. The gap comes from a cash flow model that looks through capital needs and timing, while the market multiple view is heavily discounting the stock for its risk profile and current earnings power. Broader valuation checks remain weak despite the DCF signal, so this is not a straightforward bargain. The key question is whether Healthpeak Properties can translate its cash flow potential into earnings that justify the current P/E, rather than leaving the stock as a value trap priced for its balance sheet and tenant risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DOC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Healthpeak Properties, Inc.? Here are five stocks we like better. Healthpeak raised its full-year adjusted FFO guidance by $0.02 to $1.73–$1.77 per share after reporting $0.46 in second-quarter adjusted FFO per share, supported by improved expectations for lab and senior housing NOI. Outpatient medical leasing remained solid, with 1.2 million square feet leased during the quarter and occupancy rising to 90.7%. A Brookfield recapitalization generated $1 billion in cash while Healthpeak retained a 51% stake in the 5.6 million-square-foot portfolio. Lab occupancy increased to 78.5% as leasing activity continued, particularly in San Diego and the Bay Area. Healthpeak also strengthened its balance sheet, repaid $900 million of debt, and expanded senior housing through $1.8 billion of acquisitions, with Janus Living reporting strong revenue, EBITDA and NOI growth. Catching the AI Wave: DigitalOcean Reels in AI Whales Healthpeak Properties (NYSE:DOC) reported second-quarter adjusted funds from operations of $0.46 per share and raised its full-year adjusted FFO guidance by $0.02 to a range of $1.73 to $1.77 per share, citing improved same-store net operating income expectations in its lab and senior housing businesses. Chief Executive Officer Scott Brinker said the company’s strategy during the life science downturn—including a $5 billion merger, a $1 billion IPO and additions to its operating platform—has positioned Healthpeak to benefit as sector fundamentals improve. He said the company has also internalized property management in much of its portfolio and is rolling out an agentic operating platform. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Tech ETFs That Could Bounce Back After the AI Selloff “As the life science pendulum finally starts to swing back in our favor,” Brinker said, the company is stronger and has additional capabilities to pursue growth. Healthpeak reported continued strength in its outpatient medical portfolio. During the second quarter, the company executed 1.2 million square feet of leases, including about 327,000 square feet of new leasing, bringing year-to-date leasing volume to 2.3 million square feet. Tenant retention was 80%, while cash re-leasing spreads were 5%. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling DigitalOcean’s AI Surge: How Far Can This Rally Go? Total outpatient medical occupancy increased 20 basis points sequentially to 90.7%. Since July 1, Healthpeak has executed another 204,000 square feet of leases and has about 882,000 square feet under letters of intent, according to Chief Financial Officer Kelvin Moses. The company also announced another development agreement with Northside in Atlanta for a new outpatient medical project. It will be the fifth project Healthpeak has undertaken with Northside, with the projects totaling approximately 565,000 square feet. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Healthpeak completed an outpatient medical recapitalization with Brookfield, retaining a 51% interest in a 5.6 million-square-foot portfolio while raising $1 billion in cash proceeds. Moses said the transaction represented a trailing cash capitalization rate of 5.9%. After seven years, Healthpeak will have a limited number of rights to repurchase Brookfield’s noncontrolling interest at a price designed to provide Brookfield with a 6.5% unlevered return. Healthpeak will continue to provide asset management, property management and leasing services for the portfolio. Brinker said the Brookfield partnership and a separate arrangement with Blackstone expand the company’s alternative sources of equity capital. Healthpeak holds a 20% interest in its Blackstone venture, compared with 51% in the Brookfield venture. Brinker said he expects Healthpeak to pursue further opportunities with both partners. Healthpeak’s lab portfolio executed 381,000 square feet of leases during the quarter, with about 60% representing new leasing and 30% involving vacant space. Total occupancy increased 80 basis points sequentially to 78.5%, up 140 basis points from year-end 2025. Since July, the company has entered leases for about 20,000 square feet and has another 480,000 square feet under letters of intent. Moses said Healthpeak expects a modest improvement in total lab occupancy by year-end from its June 30 level, as anticipated commencements in the second half exceed expirations. Management emphasized that it is focused on total occupancy and total NOI rather than the timing of same-store NOI turning positive. Brinker said higher total occupancy is the key driver of earnings growth in the segment. Healthpeak cited particular progress in the Torrey Pines lab submarket in San Diego. Including executed leases and letters of intent, the company’s leased percentage in the submarket has risen to 97% from approximately 65% at the end of 2025. Moses said demand has been strongest in the Bay Area and San Diego, while Boston remains the company’s most challenged market because of supply. In Boston’s Route 128 West market, Brinker said overall vacancy is about 30%, while Healthpeak’s assets are 11% vacant. Chief Development Officer and Head of Lab Scott Bohn said tenant demand has been more concentrated in the 25,000- to 75,000-square-foot range. Moses said lease rates have generally remained in line with portfolio averages, while free rent has typically ranged from one to two months per lease year, depending on the property and required investment. Brinker said Healthpeak is evaluating lab acquisition opportunities in core markets where it has local operating capabilities. He said the company expects most potential investments to be fee-simple acquisitions, though it may consider loan structures with paths to ownership in select situations. Healthpeak ended the second quarter with net debt to adjusted EBITDA of 4.7 times and $4.1 billion of available liquidity. Moses said the company expects to generate $1.9 billion of gross proceeds from capital recycling initiatives through year-end. Through Aug. 4, Healthpeak had repaid $900 million of debt, including $650 million of senior unsecured notes in July. The company also completed $1 billion of acquisitions and buybacks. Brinker said Healthpeak repurchased $100 million of stock in April when shares traded below $17 and the company saw an FFO yield above 10%. In senior housing, Healthpeak said its ownership interest in Janus Living reached 74%, representing approximately $6.5 billion of equity value. Janus Living posted 45% total revenue growth and 34% adjusted EBITDA growth in the second quarter, while ending the period with cash on its balance sheet and no debt. Brinker said Janus Living’s same-store portfolio delivered 260 basis points of occupancy growth and 19% NOI growth. Healthpeak has closed $1.8 billion of senior housing acquisitions since Jan. 1 and expects its senior housing portfolio to nearly double in size this year. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Healthpeak Properties Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. FFO as Adjusted: $0.46 per share for the second quarter. Net Debt-to-EBITDA: 4.7 times at the end of the second quarter. Outpatient Medical Leasing: Executed 1.2 million square feet of leases, including 327,000 square feet of new leasing. Outpatient Medical Tenant Retention: 80% for the quarter. Outpatient Medical Cash Re-leasing Spreads: 5% for the quarter. Outpatient Medical Occupancy: Total occupancy increased 20 basis points sequentially to 90.7%. Lab Leasing: Executed 381,000 square feet of leases, with approximately 60% new leasing and 50% on vacant space. Lab Occupancy: Total occupancy increased 80 basis points sequentially to 78.5%, a 140 basis point increase since year-end 2025. Senior Housing Same-Store NOI Growth: 19% for the quarter. Senior Housing Same-Store Occupancy Growth: 260 basis points for the quarter. Janus Living Revenue Growth: 45% for the second quarter. Janus Living Adjusted EBITDA Growth: 34% for the second quarter. Capital Recycling Proceeds: Expected to generate $1.9 billion of gross proceeds through year-end. Acquisitions and Buybacks: Completed $1 billion to date. Debt Repayment: Repaid $900 million of debt as of August 4, including $650 million of senior unsecured notes in July. Available Liquidity: $4.1 billion at the end of the second quarter. FFO as Adjusted Guidance: Raised by $0.02 to a range of $1.73 to $1.77 per share. Same-Store NOI Guidance: Increased by 75 basis points at the midpoint, including a 200 basis point increase in both lab and senior housing. Warning! GuruFocus has detected 10 Warning Signs with DOC. Is DOC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Healthpeak Properties Inc (NYSE:DOC) reported strong outpatient medical leasing with 5% cash re-leasing spreads and modest tenant improvements, outperforming pre-merger averages. The company successfully completed a $1 billion Brookfield joint venture, strengthening its balance sheet and providing alternative equity capital for growth. Life science portfolio showed significant improvement, with total occupancy up 140 basis points since year-end 2025 and strong leasing momentum in key markets like Torrey Pines. Senior housing portfolio is on track to double in size this year, with $1.8 billion in acquisitions closed and strong NOI growth of 19%. The company raised its FFO guidance by $0.02 per share, driven by improved same-store NOI expectations across lab and senior housing segments. Life science same-store NOI is still negative, and the company cannot predict when it will inflect positively, indicating ongoing sector challenges. Boston lab market remains challenged due to supply overhang, which could pressure leasing and pricing in that region. Outpatient medical cash re-leasing spreads decelerated slightly in Q2, partly due to a competitive lease renewal in Boston. Elevated borrowing costs are prompting the company to manage debt maturities carefully, limiting near-term capital deployment flexibility. The company's stock buyback activity is limited, as current prices are not sufficiently below intrinsic value, reducing shareholder return options. Q: When will the lab portfolio's same-store NOI inflect to positive, given the improving occupancy and leasing pipeline? A: Kelvin Moses (EVP - Investments and Portfolio Management) noted that the focus is on capturing more than their share of demand and driving net absorption, which has increased total occupancy from 77% at the start of the year to 78.5%. They raised lab same-store guidance by 200 basis points at the midpoint. Scott Brinker (CEO) added that total occupancy and total NOI growth are the key metrics, not same-store, and progress is already being made in the first half of the year. Q: What is the current competitive environment for lab leasing regarding rates, free rent, and build-out costs, and has the size of tenants changed? A: Kelvin Moses stated the pipeline remains robust at 2 million square feet, with 500,000 square feet under LOI. Demand is disproportionately for wet lab space from biotech tenants seeking core assets. Rates are in line with portfolio averages, and free rent is trending at one to two months per year of lease term. Scott Brinker added that they are seeing more tenants in the 25,000 to 75,000 square foot range as the funding environment improves. Q: Is the distressed lab acquisition opportunity becoming more attractive, and what does the opportunity set look like? A: Scott Brinker confirmed the building blocks for sector recovery are in place, and they are focused on core markets and situations where their platform can add value. The pipeline is active, and they are working on a number of situations, including the Gateway acquisition which is performing well with 125,000 square feet of leases or LOIs signed. He expects Healthpeak to be a consolidator over the next 24 months. Q: Can you provide a sense of the difference between leased versus occupied lab space and the commencement schedule for signed leases? A: Kelvin Moses explained that commencements in the back half of the year exceed expirations, and they expect modest improvement in total occupancy. Some recent executions and LOIs have the potential to commence in 2026 and into 2027, but he declined to give specific forward occupancy guidance. Q: Has the conversion timeline for lab tenants changed given the amount of available space? A: Scott Brinker noted that tenants remain cautious, and the timeline from initial tour to execution can range from 3 to 9 months depending on the deal's size and complexity. This has been relatively consistent over the past 12 months. Q: How much CapEx should be expected for second-generation lab leasing and known move-outs? A: Kelvin Moses stated that capital costs have been kept low to obtain occupancy, with modest capital costs for most availabilities. Elevated capital is only needed for redevelopment assets occupied by a single tenant for decades. Scott Brinker provided a rule of thumb: around 10% of rent for renewals and 20% to 25% for new leasing. Q: Is the 100 basis point occupancy increase for Life Science still the full-year target, given the 150 basis point increase in the first half? A: Kelvin Moses clarified that the 100 basis point target was off year-end occupancy of 77%, which has already been exceeded. They anticipate modest improvement in total occupancy through year-end from the current 78.5%, with potential for incremental gains despite possible quarterly lumpiness. Q: What led to the deceleration in outpatient cash re-leasing spreads, and what is the mark-to-market opportunity? A: Scott Brinker explained that the slight deceleration was due to one large lease in Boston, which was still a strong 10-year renewal win. He emphasized that the plus 5% spreads are up 50% from the last decade's average, achieved with modest TIs and 3% escalators, making it a phenomenal result. Q: What is the appetite for more outpatient JVs like the Brookfield recap, and what led to that transaction? A: Scott Brinker stated they expect to do more with both Brookfield and Blackstone, as both are great partners with huge balance sheets. The Brookfield deal, where Healthpeak retains 51% ownership and a call option to repurchase at a 6.5% unlevered return, provides strong upfront pricing and future acquisition opportunities while maintaining control of hospital relationships. Q: Which lab markets are seeing the strongest demand, and where is pricing power holding up best? A: Kelvin Moses identified the Bay Area and San Diego (specifically Torrey Pines) as the strongest markets, with Boston being the most challenged due to supply. Scott Brinker added that in Boston, Q2 market activity was 80% of all 2025 activity, and their relative position in Route 128 West is strong despite the submarket being 30% vacant. Their portfolio scale provides pricing power on off-market deals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management credits their 'winning mindset' as a core value maintained throughout the supply-heavy downturn, which is now yielding results as market fundamentals and life science demand begin to improve. The company has transitioned to an active 'on the ground' operator model through the internalization of property management and the rollout of the AGNext operating platform. Strategic joint ventures with Blackstone and Brookfield are being utilized to maintain control of core assets while accessing alternative equity capital for growth without increasing leverage. Outpatient medical performance is being driven by high tenant retention and cash re-leasing spreads of 5%, which significantly exceed pre-merger historical averages. The life science sector is shifting from a 'development game' to an 'acquisition game,' where Healthpeak intends to use its balance sheet to consolidate distressed or high-quality assets. Senior housing growth is accelerating via the Janus Living partnership, with management reporting a three-year business plan is being accomplished within a 12-month timeframe. Performance attribution for the quarter was led by 260 basis points of occupancy growth and 19% NOI growth in the senior housing portfolio. Guidance for FFO was raised by $0.02 based on a 75-basis-point increase in total same-store NOI expectations, particularly within the lab and senior housing segments. Management anticipates a modest improvement in total lab occupancy by year-end 2026, with leasing commencements expected to exceed expirations in the second half of the year. The company plans to maintain leverage below its 5.5x long-term target, citing that the current cost of debt does not justify elevated leverage relative to real estate cap rates. Future capital allocation will prioritize highly pre-leased outpatient developments and opportunistic life science acquisitions over stock buybacks at current price levels. The outpatient medical leasing pipeline suggests that internal growth for that portfolio will see further acceleration into 2027. Completed a $1 billion outpatient medical recapitalization with Brookfield at a 5.9% trailing cash cap rate, including a 7-year call right for Healthpeak to repurchase the interest. The company executed $100 million in stock buybacks in April at a 10+% FFO yield when the share price was below $17. Management flagged that while the lab sector is recovering, some redevelopment assets will require elevated capital expenditures to modernize spaces occupied by single tenants for decades. The senior housing portfolio is expected to double in size this year, increasing the number of operating partners from 2 to more than 10. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that total occupancy and total NOI growth are more critical metrics for earnings than same-store figures, which they view as less relevant in the current recovery phase. While declining to predict a specific quarter for same-store inflection, they confirmed the trajectory is positive with occupancy rising from 77% to 78.5% year-to-date. Demand is concentrated in the 25,000 to 75,000 square foot range, primarily for 'wet lab' space in core submarkets. Concessions have stabilized at approximately 1 to 2 months of free rent per year of lease term, with rates remaining generally in line with the existing portfolio. Healthpeak expects to be a 'consolidator' over the next 24 months, focusing on core submarkets where their operating platform can add value to underperforming buildings. Management noted that these deals are often complex involving lenders and take 3 to 9 months to move from initial tour to execution.

Healthpeak Properties, Inc. DOC is slated to report its second-quarter 2026 results on Aug. 4, after market close. While the company’s quarterly results are likely to display a rise in revenues year over year, funds from operations as adjusted (FFOA) per share is expected to decline. In the last reported quarter, this healthcare real estate investment trust (REIT) posted an FFOA per share of 45 cents, which beat the Zacks Consensus Estimate by 4.7%. Results reflected better-than-anticipated revenues. The quarter’s performance benefited from steady leasing activity, along with the Janus Living IPO and active capital allocation. In the preceding four quarters, Healthpeak’s FFOA per share, surpassed the Zacks Consensus Estimate on three occasions and met in the remaining period, with the average beat being 2.83%. The graph below depicts this surprising history: Healthpeak Properties, Inc. price-eps-surprise | Healthpeak Properties, Inc. Quote Long-term growth in biopharma research and drug development supports the demand outlook for specialized lab real estate. Healthpeak’s focus on the lab segment is strategically aligned with this tailwind and may have aided its performance in the to-be-reported quarter. Moreover, the senior citizen population is on the rise, and the healthcare expenditure for this age cohort is generallly higher than that of the overall population. Healthpeak’s life plan communities, formerly known as continuing care retirement communities, are anticipated to have benefited from this positive expenditure trend, supporting the segment’s quarterly performance. However, high interest expenses during the second quarter are likely to have been a spoilsport for Healthpeak. The company’s operators contend with peers for occupancy. This would have likely hurt Healthpeak’s power to raise rents and affect revenues and profitability. The Zacks Consensus Estimate for second-quarter total revenues is pegged at $726.16 million, indicating a rise of 4.6% from the year-ago reported number. Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFOA per share has remained unchanged at 44 cents over the past three months. The figure suggests a 4.4% fall from the year-ago quarter’s tally. Our proven model does not conclusively predict a surprise in terms of FFOA per share for DOC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFOA beat, which is not the case here. Healthpeak currently has an Earnings ESP of 0.00% and a Zacks Rank of #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT industry — Host Hotels & Resorts HST and Lamar Advertising LAMR — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter. Host Hotels is slated to report quarterly numbers on Aug. 5. HST has an Earnings ESP of +1.73% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. LAMR is scheduled to report quarterly numbers on Aug. 6. The company has an Earnings ESP of +0.22% and a Zacks Rank of 3. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Healthpeak Properties, Inc. (DOC) : Free Stock Analysis Report Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report Lamar Advertising Company (LAMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With a market cap of around $15 billion, Healthpeak Properties, Inc. (DOC) is a leading healthcare real estate investment trust (REIT), focused on owning, operating, and developing high-quality healthcare properties across the United States. It maintains a diversified portfolio spanning outpatient medical facilities, laboratory buildings, and continuing care retirement communities (CCRCs). The Denver, Colorado-based company is expected to release its fiscal Q2 2026 results after the market closes on Tuesday, Aug. 4. Ahead of this event, analysts project DOC to report an FFO as Adjusted of $0.44 per share, a decline of 4.4% from $0.46 per share in the year-ago quarter. However, it has surpassed or met Wall Street's bottom-line estimates in the last four quarterly reports. Dear Google Stock Fans, Mark Your Calendars for July 13 Oracle Stock Crashes to a 52-Week Low. Here’s Why It Might Be Time to Buy. Costco vs. Walmart: 1 Dividend-Paying Retail Giant Stands Above the Other Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2026, analysts forecast Healthpeak Properties to report FFO as Adjusted of $1.75 per share, down 4.9% from $1.84 in fiscal 2025. However, FFO as Adjusted is anticipated to rise 1.1% year-over-year to $1.77 per share in fiscal 2027. DOC stock has increased 17.8% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 20.1% gain. However, it has outpaced the State Street Real Estate Select Sector SPDR ETF's (XLRE) 7.5% return over the same time frame. Shares of Healthpeak Properties surged 18.1% following its Q1 2026 results on May 5 as the company reported adjusted FFO of $0.45 per share and revenue rose to $753 million, beating analyst expectations. Investor sentiment was further boosted after the company slightly raised its full-year 2026 adjusted FFO guidance to $1.71 per share - $1.75 per share and highlighted strong leasing activity, including 1.2 million square feet of outpatient medical and lab lease executions with positive cash releasing spreads of +5.4% for outpatient renewals and +3.5% for lab renewals. The successful IPO of Janus Living (JAN) at the high end of its valuation range, which generated approximately $880 million in net proceeds, also strengthened investor confidence despite higher quarterly operating expenses of $747.4 million. Analysts' consensus view on DOC stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 22 analysts covering the stock, six suggest a "Strong Buy," one gives a "Moderate Buy," and 15 recommend a "Hold." As of writing, it is slightly trading above the average analyst price target of $21.71. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com