# Healthpeak Properties (DOC)

Sector: Healthcare REIT

| Field | Value |
|---|---|
| Price | $18.98 |
| Fair value (Analysts) | $27.50 |
| Discount to fair value | 31% |
| Fair value uncertainty (Analysts) | Medium |
| Economic moat (Analysts) | None |
| LSEG analyst rating (1 strong buy to 5 strong sell) | 2.55 |
| Data as of | 2026-10-16 |
| Next earnings | 2026-11-02 (confirmed) |

## In short

The market prices Healthpeak for empty lab space and weak biotech demand, and a steady rise in lab occupancy with stable outpatient medical income over two to three years can close the gap.

## Themes and gap

- Themes: Interest rates (interest-rates), High debt (leverage)
- Gap type: Slow (slow)
- Why: The gap closes only when lab demand recovers and lab occupancy rises again, which depends on biotech funding and can take several years.

## About

Healthpeak Properties is a real estate investment trust (REIT) based in Denver. It owns, operates and develops outpatient medical buildings, often on or near hospital campuses, and lab buildings for life science companies. It also controls Janus Living, a senior housing REIT that listed on the New York Stock Exchange in March 2026, and owned 73.6% of it at June 30, 2026. In Q2 2026, outpatient medical made about 56% of same-store income, lab about 34% and senior housing about 10%. Occupancy was 90.7% in outpatient medical and 78.5% in lab at June 30, 2026. Healthpeak pays its dividend monthly, at an annual rate of $1.22 per share.

## Thesis

The market prices Healthpeak for empty lab space and weak demand from biotech tenants. Lab occupancy was 78.5% at June 30, 2026, and same-store lab income fell 3.2% in Q2 2026 from a year earlier. Lab demand depends on funding for biotech companies, and many tenants lease less space when funding is scarce. Total same-store income is expected to grow only 0% to 1.5% in 2026. Healthpeak has answered with asset sales and a new structure. It listed Janus Living in March 2026, sold 49% of an outpatient medical portfolio to Brookfield in July 2026 for about $1.0 billion and bought back shares. For the gap to close, three things must be true. Lab occupancy must keep rising, as the 480,000 square feet of lab leases under signed letters of intent after Q2 suggest. Outpatient medical income must keep growing, as it did by 2.5% in Q2 2026. FFO as adjusted must reach the 2026 guidance of $1.73 to $1.77 per share. The Q3 2026 report on November 2, 2026 gives the next test. The full-year report in early 2027 shows the lab trend and the 2027 guidance. A full recovery in lab demand can take two to three years. The main reason the gap may not close is a long period of weak biotech funding, which keeps lab space empty.

## Checkpoints

- Nov 2, 2026: Q3 2026 earnings: lab occupancy. Status: Pending. Watch: Higher lab occupancy, more signed lab leases and FFO as adjusted on track for the $1.73 to $1.77 guidance pass; lower lab occupancy or lower guidance fails.
- Feb 2027 (estimate): Full-year 2026 results and 2027 guidance. Status: Pending. Watch: Lab occupancy above the 78.5% of June 2026 and 2027 guidance for growth in same-store income pass; a further fall in lab occupancy or flat guidance fails.

## Balance sheet

- Cash: $1.6B
- Debt: $10.0B
- Net debt: $8.4B
- Net debt / EBITDA: 4.7× (high)

Healthpeak funds its properties with senior unsecured notes, term loans, commercial paper and a bank line of credit. At June 30, 2026, debt was $10.0 billion: $6.79 billion of senior unsecured notes, $1.65 billion of term loans, $1.50 billion under the bank line of credit and commercial paper, and $104 million of mortgage debt. Cash was $1.63 billion, which includes cash that Janus Living holds. In July 2026, Healthpeak used the Brookfield proceeds to repay $650 million of 3.25% notes at maturity and about $375 million of commercial paper. The company states net debt to adjusted EBITDAre of 4.7 times for Q2 2026. At August 3, 2026, Healthpeak had $3.4 billion of liquidity, including cash and available credit capacity.

As of 2026-06-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/765880/000162828026052608/ex99106302026.htm
- https://www.sec.gov/Archives/edgar/data/765880/000162828026053373/peak-20260630.htm
- https://www.sec.gov/Archives/edgar/data/765880/000110465926033312/tm269577d1_8k.htm

## Recent events

- 2026-08-04: Healthpeak reported Q2 2026 results. FFO as adjusted was $0.46 per share, the same as a year earlier. Occupancy rose 0.2 percentage points to 90.7% in outpatient medical and 0.8 percentage points to 78.5% in lab. Healthpeak raised its 2026 guidance for FFO as adjusted to $1.73 to $1.77 per share and authorized a new $500 million share buyback.
- 2026-07-20: Healthpeak formed a joint venture with Brookfield for an 86-property outpatient medical portfolio valued at about $2.1 billion. Brookfield bought 49% for about $1.025 billion, which implies a cash capitalization rate of about 5.9%. Healthpeak used the money to repay $650 million of 3.25% notes and about $375 million of commercial paper.
- 2026-03-23: Janus Living, Healthpeak's senior housing REIT, completed its initial public offering of 48.3 million shares at $20.00 per share, with net proceeds of about $878 million. Healthpeak also closed a new $400 million delayed-draw term loan.

## Risks

- High: Lab demand depends on funding for biotech companies. Lab occupancy was 78.5% at June 30, 2026, and same-store lab income fell 3.2% in Q2 2026. A long funding slowdown keeps space empty and lowers rents.
- Medium: Higher interest rates increase the cost of new debt and lower the value of real estate. Healthpeak has about $10.0 billion of debt, including commercial paper and floating-rate term loans.
- Medium: Janus Living is now a separate public company that Healthpeak controls. Its growth depends on senior housing acquisitions, such as about $1.0 billion of purchases in July 2026, and Healthpeak's results now include a large noncontrolling interest.

## Links

- Page: https://picks.kamadorueda.com/company/DOC/
- History of changes: https://picks.kamadorueda.com/company/DOC/history/
- JSON with full history: https://picks.kamadorueda.com/data/company/DOC.json

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