Healthpeak Properties, Inc. (DOC) Business Profile

What it does

Healthpeak Properties is a healthcare real-estate investment trust that owns, operates and develops properties used for healthcare discovery and delivery in the United States. It is organized as an UPREIT: substantially all assets and operations sit in Healthpeak OP, its operating subsidiary. Founded in 1985, it is headquartered in Long Beach.

The portfolio has three reportable property businesses. Outpatient medical includes medical office buildings and hospitals, generally rented to hospital systems, physician practices and other healthcare providers. These buildings have infrastructure for examination rooms, imaging equipment, diagnostic centers, rehabilitation clinics and outpatient surgery. Lab properties provide laboratory and office space for biotechnology, pharmaceutical, medical-device and research organizations. Senior housing consists of life plan communities and senior-housing properties operated through RIDEA structures, under which third-party managers run the day-to-day facilities.

At December 31, 2025, the investment portfolio, including interests in certain unconsolidated joint ventures, comprised 689 properties: 507 outpatient medical properties, 145 lab properties, 34 senior-housing properties and three other properties. Healthpeak also has loans receivable and a preferred-equity investment outside its reportable segments. It had 411 full-time employees at December 31, 2025.

Scott Brinker is President and Chief Executive Officer. Management said on the call that Healthpeak is rolling out an agentic operating platform.

How it makes money

Healthpeak primarily earns rental and related revenue from healthcare properties. Its outpatient medical buildings are usually multi-tenant and leased to healthcare providers; approximately 72% of outpatient medical buildings were triple-net leased at December 31, 2025, based on leased square feet. Under triple-net leases, tenants provide primary property, business-interruption and liability insurance, while lease terms can shift operating expenses to the tenant. All nine hospitals were triple-net leased.

Lab buildings are leased mainly to life-science tenants and were 89% triple-net leased on the same basis. Lab tenants often invest in fitting out their own space for research, while Healthpeak may also fund landlord improvements. Campus and business-park layouts can give tenants adjacent space for expansion.

Senior housing produces resident fees and services rather than conventional tenant rent alone. Through a taxable REIT subsidiary, Healthpeak leases a facility to the subsidiary, which engages an independent management company for a management fee. The company receives facility cash flow but bears most operating risks and liabilities. Life plan communities collect entrance fees and provide housing, services and healthcare across a campus; the structures are less reliant on Medicare and Medicaid than some other healthcare facilities.

Property-level performance is measured using Adjusted NOI, which starts with real-estate revenue and subtracts property-level operating expense while excluding items such as straight-line rents, lease-intangible amortization, termination fees, operator-transition costs and certain insurance reserves. Healthpeak uses cash flow, asset sales, debt, equity issuance and joint ventures to finance acquisitions, development and refinancing.

For the year ended December 31, 2025, reportable-segment Adjusted NOI was $795,843 for outpatient medical, $567,358 for lab and $176,741 for senior housing; in Q2 2026, FFO as adjusted was 46 cents per share.

Customers and how it sells

Outpatient medical customers include hospitals, physician practices, specialty physician groups and other healthcare-service providers. Approximately 79% of outpatient medical buildings were on or adjacent to hospital campuses at December 31, 2025, and 96% were affiliated with hospital systems, in each case based on total square feet. HCA Healthcare, Inc. represented 15% of outpatient-medical segment revenue and 7% of total revenue in 2025; CommonSpirit Health represented 6% and 3%, respectively. Other outpatient-medical tenants individually represented 1% or less of total revenue.

Lab customers include biotechnology, medical-device and pharmaceutical companies, scientific research institutions, government agencies and other life-science organizations. The lab portfolio was concentrated in established research markets: San Francisco accounted for 59% of total lab square feet, Boston for 22%, and San Diego for 17%.

Management said on the call that demand for lab space was strongest in the Bay Area and that San Diego had also been productive. Management identified Boston as its most challenged lab market because of supply overhang. Management also said that it had entered another development agreement with Northside for an outpatient-medical project supporting Northside’s Atlanta expansion, where Healthpeak has number one market share.

Suppliers and costs

Healthpeak does not manufacture products. Its cost base includes property-level operating expenses, property management, tenant improvements, leasing costs, development and redevelopment spending, insurance, real-estate taxes, utilities, labor and interest expense. Its senior-housing model also requires third-party manager-operators, which hire and train facility employees, enter contracts and provide resident care for management fees.

Construction and redevelopment costs can be affected by materials, transportation, environmental remediation, labor shortages, tariffs, financing conditions, permitting and zoning. Healthpeak reported increased tenant-improvement and construction costs, together with higher capital costs and tariff actions or potential tariff actions, affected construction starts and expected yields on capital projects.

The company regularly accesses public equity and debt markets because REIT rules require it to distribute at least 90% of REIT taxable income, excluding net capital gains. Its debt is primarily long-term fixed-rate debt with staggered maturities, though changes in credit ratings can affect borrowing costs, facility fees and commercial-paper pricing.

Competitive position

Healthpeak competes for healthcare real-estate investments with other REITs, investment companies, pension funds, private-equity investors, sovereign funds, healthcare operators, lenders, developers and other institutional investors. Some competitors may have greater flexibility, greater resources or lower costs of capital. Competition and elevated interest rates can compress capitalization rates and make it harder to find investments that meet the company’s objectives.

Competition also occurs at the property level. Tenant and operator income depends on their ability to compete on care quality, reputation, product or drug development, pricing, services, location, staffing, referral sources, local demographics, competing-property supply and financial condition. Lab tenants can face product-approval, funding and commercialization risks that affect their space needs.

No company competitors are named in the available information. Blackstone and Brookfield are investment partners rather than identified competitors: Healthpeak retained 20% ownership in its Blackstone partnership and 51% in its Brookfield partnership. Management said on the call that these arrangements maintain control of strategic buildings and tenant relationships while providing alternative equity capital.

Our reading: The location of outpatient assets near hospital campuses is a meaningful property-level moat because hospital affiliation and specialized building infrastructure can support tenant relationships, but it does not prevent competing owners from pursuing acquisitions or development.

Our reading: Scale in lab clusters, flexible adjacent space and the operating platform support leasing execution, though Boston’s supply overhang shows that these advantages do not remove market-cycle exposure.

Growth opportunities

Healthpeak’s internal-growth plan centers on renewing, extending and modifying leases, replacing tenants, raising occupancy, and helping customers expand or relocate within the portfolio. It also pursues acquisitions, development, redevelopment, secured financing, preferred equity and joint ventures. Capital recycling—selling assets and redeploying proceeds—is part of both its investment and financing approach.

In outpatient medical, management said on the call that it executed 1.2 million square feet of leases in Q2 2026, including approximately 327,000 square feet of new leasing, and had approximately 882,000 square feet under letters of intent after July 1. The company had entered its fifth development project with Northside, with the five projects totaling approximately 565,000 square feet.

In lab, management said on the call that Q2 2026 occupancy rose 80 basis points sequentially to 78.5%, and it had another 480,000 square feet under letters of intent after July. Management expects a modest improvement in total lab occupancy by year-end from the June 30 level. It also described a pipeline focused disproportionately on wet-lab space and biotech tenants seeking core assets and locations.

The company completed the Janus Living initial public offering in March 2026. Healthpeak’s ownership interest in Janus Living was 74% in Q2 2026. Management said on the call that Janus Living’s same-store portfolio had 260 basis points of occupancy growth and 19% NOI growth, and that Healthpeak had $1.8 billion of senior-housing acquisitions closed since January 1.

Structural risks

• Tenant and operator health: Inflation, recession, interest rates, financial-market conditions and life-science funding can constrain tenants’ and operators’ liquidity, financing and ability to make payments; occupancy can then be adversely affected.

• Life-science demand: Lab tenants face substantial funding, clinical-testing, product-approval, commercialization, technology and intellectual-property risks. Artificial intelligence and automation could reconfigure tenant space requirements or reduce long-term space demand.

• Healthcare regulation and reimbursement: Tenants and operators are subject to complex laws governing care quality, licensure, fraud and abuse, privacy, reimbursement and staffing. Changes in reimbursement rates, government funding, audits, enforcement or regulatory compliance can affect their operations and lease payments.

• Development and property costs: Projects can be canceled, delayed or fail to perform because of financing, demand, labor, materials, permitting, weather and other events. Costs can rise with interest rates, insurance, utilities, taxes, tariffs, labor and materials.

• Capital-market access: Elevated interest rates and uncertainty in debt and equity markets can raise borrowing costs, limit capital availability, reduce transaction volume and affect real-estate values. Lower credit ratings can increase financing costs.

• Senior-housing operating exposure: Under RIDEA structures, Healthpeak bears most operational risks and liabilities of facilities even though third-party managers control day-to-day operations, including staffing, care, contracts and regulatory compliance.

Bottom line

Our reading

Our reading: Healthpeak is a U.S. healthcare-property business whose recurring economics principally come from outpatient medical and lab leasing, with senior housing adding operational exposure through RIDEA structures.

Our reading: Its portfolio’s hospital-campus relationships, lab-market presence and joint-venture capital arrangements support leasing and capital deployment, while lab vacancy, tenant funding conditions, regulation and borrowing costs remain material determinants of results.

Our reading: The company is using leasing, development, acquisitions, disposals and partnerships to change its asset base, including the separate Janus Living senior-housing structure.