Healthpeak Properties, Inc. DOC reported third-quarter 2026 funds from operations as adjusted (FFOA) per share of 44 cents, beating the Zacks Consensus Estimate by 2.3% but declining 4.3% year over year. Total revenues were $820.9 million, up 16.3% year over year, surpassing the consensus mark by 8.3%.
The quarter’s performance reflected solid outpatient medical leasing, improving lab occupancy and strong senior housing contributions from Janus Living. Total same-store adjusted net operating income (NOI) grew 3.6% year over year, supported by particularly robust senior housing performance.
DOC's Outpatient Leasing Momentum Remains Solid
Outpatient medical leasing remained healthy during the third quarter. New and renewal lease executions totaled 846,000 square feet, bringing year-to-date activity to 3.2 million square feet. Subsequent to quarter-end, another 1.3 million square feet of leases were executed or were under letters of intent (LOI).
Same-store adjusted NOI for outpatient medical increased 3.1% year over year to $173.2 million. Same-store occupancy remained steady at 91.7%. Trailing 12-month renewals achieved approximately 5% cash-release spreads, with tenant retention of 82%, reflecting consistent demand across the portfolio.
DOC's Lab Leasing Gains Despite NOI Pressure
Lab leasing activity improved, with new and renewal executions totaling 480,000 square feet during the third quarter, bringing year-to-date leasing to 1 million square feet. Another 643,000 square feet of leases were executed or under LOI following quarter-end.
Total lab occupancy improved to 79.8%, up 130 basis points sequentially and 270 basis points from year-end 2025. However, same-store adjusted NOI declined 0.7% year over year to $113.6 million. Same-store occupancy fell 210 basis points year over year to 90.6%, highlighting lingering pressure despite improving leasing momentum.
DOC's Janus Living Drives Senior Housing Growth
Janus Living delivered strong operating results, with third-quarter revenues of $268 million, increasing 78% year over year. Adjusted EBITDAre climbed 101% to $105 million, while total adjusted NOI advanced 81% to $76 million.
Same-store adjusted NOI grew 25.9%, accompanied by a 360-basis-point margin expansion. Same-store occupancy increased 300 basis points year over year to 89.7%. Janus also completed $1.75 billion of senior housing acquisitions during the third quarter and approximately $370 million more subsequent to quarter-end through Oct. 30, 2026. Healthpeak retained a 69% ownership interest in Janus Living as of Sept. 30, 2026.
Healthpeak's Expenses Rise Amid Portfolio Expansion
Operating expenses increased 30% year over year to $379.4 million, outpacing revenue growth. Depreciation and amortization rose to $298.9 million from $262.3 million, adding to the company’s overall expense burden.
Interest expenses increased to $83.9 million from $76.8 million a year earlier. General and administrative expenses rose to $23.6 million from $19.9 million, while transaction costs reached $9.7 million against $2.4 million.
DOC's Capital Recycling Supports New Investments
Healthpeak continued repositioning its portfolio through acquisitions and joint ventures. In July, the company completed the contribution of an 86-property outpatient medical portfolio valued at approximately $2.1 billion to a joint venture with Brookfield, receiving approximately $1.03 billion from the sale of a 49% interest.
The company also acquired or entered into agreements to acquire four life science buildings totaling approximately 510,000 square feet for $233 million. In October, Healthpeak acquired a Houston outpatient medical facility for $38 million at an initial capitalization rate of approximately 7.4%.
DOC’s Balance Sheet Reflects Solid Liquidity
The company maintained a strong liquidity position, with $4.17 billion available as of Sept. 30, 2026, including cash, credit facility availability and commercial paper balance. Cash and cash equivalents came in at $514.3 million.
Its net debt to adjusted EBITDAre stood at 4.7X at quarter-end, unchanged sequentially but improving from 5.3X a year earlier.
DOC Raises Its 2026 FFO Outlook
Healthpeak increased its 2026 FFOA per-share guidance to $1.76-$1.78 from $1.73-$1.77. The Zacks Consensus Estimate is pinned at $1.77 per share.
Management also raised its total same-store cash-adjusted NOI growth outlook to 0.5-2% from the previous 0-1.5% range, reflecting improving operational expectations.
Healthpeak currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Healthpeak Properties, Inc. Price, Consensus and EPS Surprise
Healthpeak Properties, Inc. price-consensus-eps-surprise-chart | Healthpeak Properties, Inc. Quote
Performance of Other REITs
BXP, Inc. BXP reported third-quarter 2026 funds from operations (FFO) of $1.89 per share, beating the Zacks Consensus Estimate of $1.80 by 5%. FFO increased 8.6% from the year-ago quarter. Lease revenues increased 4.5% year over year to $846.2 million, surpassing the consensus mark of $839.9 million by 0.7%. Total revenues rose 4.6% to $911.4 million.
BXP’s results reflected better-than-projected portfolio performance, higher occupancy and growth in same-property net operating income (NOI), which supported the FFO and revenue beat.
Welltower Inc. WELL reported third-quarter 2026 normalized FFO of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 by 1.8%. The metric increased 24.6% year over year. Total revenues of $3.72 billion surpassed the consensus mark of $3.63 billion by 2.5% and rose 38.4% year over year.
WELL’s results benefited from robust senior housing operating portfolio performance, with same-store NOI growth and improvement in average occupancy.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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