Jim Kammert

Jim Kammert asked about Healthpeak's appetite for additional opportunistic lab acquisitions following the Gateway transaction, given the $1 billion acquisition guidance for 2026. He also inquired about the status of synergies from the Physicians Realty merger, specifically if they are already in the run rate or if further margin implications are expected for Outpatient Medical in 2026.

Answer

President and CEO Scott Brinker stated that with $800 million of the $1 billion acquisition/stock buyback guidance already closed or under contract, there is limited dry powder. However, a large pipeline of asset recycling could provide additional capital for opportunistic, disciplined Life Science investments in core markets, similar to Gateway. Brinker confirmed that most of the $70+ million in synergies from the Physicians Realty merger are already included in the Q4 2025 run rate and 2026 guidance, with only a small, immaterial opportunity remaining for property management internalization.

Jim Kammert asked about Healthpeak's appetite for additional opportunistic lab acquisitions in 2026, given the Gateway transaction and the $1 billion acquisition guidance. He also inquired if most of the Physicians Realty Trust merger synergies on the outpatient medical side were already in the run rate by late 2025.

Answer

President and CEO Scott Brinker noted that $800 million of the $1 billion acquisition/stock buyback guidance is already closed or under contract, leaving limited dry powder. He added that a large asset recycling pipeline could generate additional capital for opportunistic, disciplined life science investments in core markets. Mr. Brinker confirmed that most of the $70+ million in Physicians Realty Trust merger synergies were included in the Q4 2025 run rate and 2026 guidance, with only a small, immaterial portion remaining for future internalization.

Jim Kammert questioned whether public biotechs, even with increased capital, might already have sufficient space, or if Alexandria Real Estate Equities anticipates a need for expansion space from this critical segment to kickstart demand. He also sought clarification on Peter Moglia's comment about potentially seeing a 'five-handle' cap rate on core asset capital recycling in 2026, asking if this would apply to a joint venture (JV) or an outright sale.

Answer

Joel Marcus, Executive Chairman and Founder, and Hallie Kuhn, SVP of Life Science and Capital Markets, emphasized that public biotech has historically been the industry's mainstay, but recent financings primarily benefited commercial-stage companies, not driving R&D expansion. They stressed the need for earlier-stage venture companies to go public to fuel R&D space needs. Peter Moglia, CEO and CIO, clarified that any core asset capital recycling at a 'five-handle' cap rate would 'very likely' be a joint venture, as outright sales of core assets are not planned unless under special circumstances.

Jim Kammert sought clarification on Peter Moglia's comment about potentially seeing a 'five handle' on some core asset capital recycling in 2026, asking if this would apply to a joint venture (JV) or an outright sale.

Answer

Peter Moglia, CEO and CIO, clarified that such a transaction would 'very likely' be a joint venture. He stated that Alexandria Real Estate Equities is not planning on selling any core assets outright unless a special situation arises.

Jim Kammert asked for visibility into the 2026 and 2027 lease expirations, specifically what percentage is actively being discussed with tenants versus those left until the last moment. He also inquired about any organic tilting towards industrial or retail across those two years.

Answer

Head of Asset Management Brooks Gordon confirmed that virtually all 2026 and 2027 expiring ABR is actively being worked on, as the company engages with tenants three to five years out. He noted that both years have a similar property type breakdown, with approximately 60% warehouse and industrial. Mr. Gordon highlighted opportunities in 2026 to re-lease high-quality warehouses in the Lehigh Valley at significantly higher rents, while other leases may have renewal options at continuing rents.

Jim Kammert asked for clarification on the accounting mechanics and calculation of the $1.1 billion non-cash charge related to the new compensation plan.

Answer

Co-President and CFO Tim McHugh explained that the $1.1 billion charge is an upfront expense piece of the plan, as detailed in the 10-Q, with an additional $200 million to be amortized over the subsequent 10 years of the plan.