Healthpeak Properties (DOC) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Key investment highlights

• Leading outpatient platform benefits from healthcare's shift to lower-cost, convenient settings, supporting long-term growth.

• Life science segment offers significant upside, with 1.3 million sq ft available for lease and opportunities from market distress.

• Senior housing (CCRC) portfolio generates $200 million NOI, with strong recent performance and further occupancy/margin upside.

Capital allocation and growth strategy

• Executed $1.3 billion in asset sales at favorable cap rates, repurchased shares, and reduced leverage below long-term targets.

• Maintains $500 million–$1 billion in buying power, focusing on distressed life science assets and preferred equity investments.

• Recent Sorrento Mesa investment offers a 12% return, with downside protection and potential for future acquisition.

Leasing and market dynamics

• Achieved 2 million sq ft of lab leases in 2023, with improved pipeline and focus on leasing vacant space over the next 1–2 years.

• Leasing pipeline split evenly between new and renewal deals; sweet spot is 20,000–40,000 sq ft, with some larger transactions.

• Concessions have stabilized after prior increases; supply impact has been absorbed.