HEALTHPEAK PROPERTIES (DOC)·Q4 2025 Earnings Summary
Healthpeak Beats Revenue, Announces Senior Housing Spinoff as Life Science Recovery Begins
February 3, 2026 · by Fintool AI Agent
Healthpeak Properties (NYSE: DOC) delivered Q4 2025 results that beat revenue expectations by 5.7%, reporting total revenues of $719.4 million against consensus of $680.9 million . The healthcare REIT posted FFO as Adjusted of $0.47 per share, flat sequentially but up 2.2% year-over-year . The headline story, however, was the announced formation and planned IPO of Janus Living, Inc.—a spinoff of Healthpeak's senior housing portfolio intended to unlock value from a segment the public markets have struggled to properly price .
Did Healthpeak Beat Earnings?
Yes, Healthpeak beat on revenue and delivered in-line FFO results:
The AFFO decline reflects higher AFFO capital expenditures of $57.8M in Q4 2025 versus $39.0M in Q4 2024 , as Healthpeak invested in property improvements.
Ask Fintool AI AgentWhat Changed From Last Quarter?
Three material shifts stand out:
1. Janus Living Spinoff Announced
Healthpeak announced the formation of Janus Living, Inc., a dedicated senior housing REIT, with an IPO expected in H1 2026 . Management stated the public markets have "had difficulty properly valuing our senior housing portfolio and platform" given its relative scale within the broader Healthpeak portfolio . The spinoff is designed to unlock value immediately while maintaining alignment through stock ownership.
2. Life Science Inflection Point
Management struck an notably optimistic tone on life science fundamentals, stating they believe the sector is "at or near an inflection point" . Supporting evidence includes:
- Improvement in biopharma M&A and capital markets activity starting Fall 2025
- Minimal new lab deliveries
- Certain buildings pivoting to alternative uses, reducing supply
3. Aggressive Capital Recycling
Healthpeak is executing a $1 billion capital recycling plan in 2026, including asset sales, recapitalizations, and loan repayments . This provides flexibility to:
- Fund highly pre-leased outpatient medical developments at higher returns
- Acquire assets with significant upside
- Repurchase shares opportunistically
How Did Segments Perform?
Segment performance was mixed, with Life Plan Communities the clear outperformer:
Outpatient Medical delivered another strong quarter with record new lease executions of 1 million square feet for the full year and renewal retention of 79% with +5.0% cash releasing spreads .
Lab remains the weak link but showed signs of stabilization. Total occupancy ended at 77%, including 150 bps of drag from the Gateway acquisition . The leasing pipeline is now 1.5 million sq ft, 50% higher than a year ago, with the mix shifting toward new leasing versus renewals . Since year-end, an additional 100,000 sq ft of leasing activity is either executed or under LOI .
Life Plan Communities were the star performer with +16.7% same-store NOI growth and record non-refundable entry fee cash collections of $153 million for the full year—the fourth consecutive year of records .
What Did Management Guide?
2026 guidance reflects continued life science headwinds offset by outpatient medical strength:
The FFO guidance decline reflects the ongoing life science environment that "peaked in intensity in the first half of 2025" . Management acknowledged that while fundamentals are improving, "a full recovery will take time."
Ask Fintool AI AgentKey Transactions This Quarter
Gateway Crossing Acquisition
Healthpeak acquired a 1.4 million square foot campus in South San Francisco for $600 million at a low-6% going-in yield . The seven-building campus is 63% occupied with additional development density potential. This deepens Healthpeak's footprint in South San Francisco to approximately 6.5 million square feet across 210 acres .
Senior Housing Portfolio Consolidation
Healthpeak acquired its joint venture partner's 46.5% interest in a 19-community senior housing portfolio for $314 million . The portfolio comprises 3,355 units with 81.7% occupancy, concentrated in high-growth markets including Houston and Denver. An additional $360 million senior housing acquisition pipeline is expected to close in Q1 2026, targeting 8-9% stabilized cash NOI yields .
Dispositions
Q4 2025 saw $325 million of outpatient medical sales at a low-6% cash cap rate, plus $24 million in loan repayments . In January 2026, Healthpeak executed an LOI for an 80% JV interest sale in a six-property outpatient medical portfolio valued at $212 million .
How Did the Stock React?
Healthpeak shares closed down 2.8% to $16.45 following the earnings release and conference call, trading between a low of $16.33 and high of $16.80 on volume of 8 million shares. The decline likely reflects:
- 2026 guidance below 2025 levels — FFO guidance of $1.70-$1.74 represents a step down from $1.84 in 2025
- Lab earnings pressure becoming real — Q1 FFO expected ~$0.43 vs Q4's $0.47 as occupancy losses hit income
- Janus Living uncertainty — Spinoff execution risk and unknown valuation
- Life science recovery timeline — Management acknowledging "full recovery will take time"
At $16.45, Healthpeak trades at 9.5x the midpoint of 2026 FFO guidance ($1.72) and offers a 7.4% dividend yield based on the $1.22 annualized dividend.
Balance Sheet and Leverage
In January 2026, Healthpeak repaid $103 million of senior housing secured mortgage debt, leaving the entire senior housing portfolio unencumbered .
Key Management Quotes
On the Janus Living spinoff:
"Given its relative scale within Healthpeak, the public markets have had difficulty properly valuing our senior housing portfolio and platform. The IPO is intended to enable Healthpeak to unlock value immediately, and leverage our industry expertise and relationships."
On life science fundamentals:
"We believe improvement in biopharma M&A and capital markets activity that started in Fall 2025 has continued into early 2026, new deliveries are minimal, and certain life science buildings are pivoting to alternative uses. This backdrop supports our view that life science real estate fundamentals are at or near an inflection point."
On Gateway acquisition (from Q&A):
"We're using proceeds from our outpatient sales, where there's a really deep market... to buy a campus that would have been untouchable at the peak. Five, 10 years from now, people will look at and say, 'Wow, that's an amazing buy at a time when there was really no one else at the table.'"
On 2026 being the earnings trough:
"Two-thirds of the portfolio is doing really well... The outpatient fundamentals are very strong. If anything, the growth outlook in 2027 looks even more favorable... The building blocks of the actual portfolio sure feel like, 26 absolutely would be a bottom."
Forward Catalysts
Ask Fintool AI AgentThe Bottom Line
Healthpeak delivered a solid Q4 with revenue beating by 5.7% and FFO meeting expectations, but the real story is strategic positioning for recovery. The earnings call reinforced management's confidence that 2026 "absolutely would be a bottom" for FFO, with lab occupancy expected to inflect higher by year-end and senior housing delivering 8-12% same-store growth.
The Janus Living spinoff addresses long-standing valuation concerns, while the $1 billion capital recycling program and Gateway acquisition position Healthpeak to capture life science upside when fundamentals fully recover. The lab leasing pipeline at 1.5M sq ft (50% higher than last year) and tenant mix diversifying into AI and tech adjacent users suggest the recovery is real, even if earnings lag the fundamentals.
With a 7.4% dividend yield at current prices and management's clearest guidance yet that the trough is here, Healthpeak offers income-oriented investors an entry point—though Q1's expected FFO decline to ~$0.43/share and spinoff execution risk warrant continued monitoring.
Q&A Highlights From the Call
The Q&A session revealed several key insights not covered in prepared remarks:
On Lab Occupancy Trajectory
Management expects total lab occupancy to improve from year-end 2025 to year-end 2026 . The current 77% occupancy includes ~200 basis points of signed leases not yet commenced, which should start in 2027 . Q1 2026 FFO is expected around $0.43/share, down from $0.47 in Q4, as lower occupancy flows through to income .
On Lab Tenant Watch List
The watch list has "reduced considerably" as tenants raised capital following improved biotech capital markets activity since Labor Day 2025 . Less than 10% of lab ABR comes from preclinical tenants . The FDA approved 52 drugs in 2025, in line with the 10-year average, providing reassurance the agency is functioning normally .
On Lab Tenant Mix Evolution
The leasing pipeline includes a diverse mix: Series A startups through established public biopharma, office-related users, GMP manufacturing, and even a $600M drone manufacturer valued at $6B . This underscores the flexibility of lab assets to capture demand from AI and AI-adjacent users, particularly in the Bay Area.
On Gateway Acquisition Strategy
Management emphasized the acquisition is break-even on day one with upside captured over 2-3 years . They see potential for high single-digit unlevered returns as the market stabilizes . With 6.5 million sq ft across 210 acres in South San Francisco, Healthpeak can "park your car once and walk to the whole thing" .
On Senior Housing Operator Transitions
The 19-community portfolio acquired from the JV partner will transition to Pegasus and Ciel Senior Living by April 1, 2026 . Management sees potential for 50%+ NOI growth over 2-3 years under the new operators . There may be a small occupancy decline during transition, but it's not expected to be material.
On 2027 Outlook
When asked if 2026 would be the bottom for earnings, CEO Scott Brinker stated: "The building blocks of the actual portfolio sure feel like, 26 absolutely would be a bottom" . Key drivers include strong outpatient fundamentals, lab occupancy expected to increase, and senior housing momentum.
Ask Fintool AI AgentThis analysis was generated by Fintool AI Agent based on Healthpeak's Q4 2025 8-K filing, supplemental materials, and earnings call transcript released February 2-3, 2026.
Related: Healthpeak Company Profile | Q4 2025 Earnings Transcript | Q3 2025 Earnings