CG Oncology (CGON) Bank of America Global Healthcare Conference 2026 summary

Strategic initiatives and portfolio transformation

• Completed the carve-out and IPO of Janus, a senior housing REIT, raising $900 million and positioning it for rapid growth with low leverage and significant cash for M&A.

• Healthpeak now manages two REITs, retaining 80% ownership of Janus, and is seeing improved valuation multiples and embedded value in its stock price.

• Outpatient medical buildings remain the largest business segment, with a focus on high-quality, hospital-affiliated assets and ongoing portfolio optimization through selective sales and reinvestment.

• Lab/life science real estate is a core growth area, with recent acquisitions in South San Francisco and significant undeveloped land in Cambridge and San Francisco for future expansion.

• Senior housing, through Janus, benefits from a unique 100% RIDEA/SHOP model, enabling higher growth and direct participation in operational performance.

Market trends and operational performance

• Outpatient medical buildings have demonstrated 22 years of NOI growth and high rent collection, with strong demand driven by the shift of care from hospitals to outpatient settings.

• Lab business faced occupancy declines due to overbuilding but is showing signs of recovery, with recent positive net absorption and long-term upside from strategic acquisitions.

• Senior housing experienced a post-COVID rebound, with supply constraints and rising demand creating a favorable environment for NOI and revenue growth.

• Cap rates for outpatient medical buildings remain attractive, especially for hospital-affiliated and ASC-anchored properties, with high liquidity and institutional interest.

• Healthpeak’s dividend yield stands at 7%, with a 70% payout ratio and underlying cash flow growth of about 10%.

Growth outlook and capital allocation

• Janus is positioned to double or triple in size over the next two years, leveraging IPO proceeds and debt capacity for acquisitions and development.

• Healthpeak may eventually spin off or monetize its Janus stake, with both businesses potentially operating independently as they grow.

• Outpatient medical and lab segments are focused on growth in major markets, with new developments pre-leased to investment-grade health systems and ongoing portfolio pruning.

• Lab real estate strategy includes acquiring underperforming assets at attractive prices and capitalizing on long-term demand in core markets.

• The company is well-positioned to benefit from demographic trends, healthcare delivery shifts, and real estate market dynamics.