Healthpeak Properties reported fourth-quarter funds from operations of $0.47 per share, surpassing consensus estimates of $0.46 and up from $0.46 in Q4 2024. Same-store net operating income increased by 3.2% year-over-year, driven by growth in life science and medical office rents. Total revenues rose 1.8% to $612 million, bolstered by new lease commencements and lease renewals averaging 5.5% rental escalations. Leasing volume in the quarter reached 1.2 million square feet, with an average tenant retention rate of 78%.

During the call, management outlined the planned spin-off of senior housing assets into the newly formed Janus Living vehicle, targeting an initial portfolio value of $4.5 billion. Healthpeak will retain a 20% stake in Janus Living, with external management by a third-party operator. The company highlighted expected annual run-rate cost savings of $15 million by streamlining corporate functions post-transaction. However, dual-CEO oversight in the new structure and transition to external management introduce execution risk that could delay projected stabilization of cash flows from the senior housing segment.

Credit Suisse downgraded Healthpeak to HOLD, citing poor capital allocation decisions and a 7% dividend yield that appears well covered but insufficient to offset risks. The REIT currently trades at a 15–20% discount to net asset value, having underperformed its peer index by nearly 60% since 2019. The firm missed its targeted funds from operations growth in two of the last three years, raising questions about its ability to deliver on long-term guidance. Analysts highlight that until the spin-off is fully executed and senior housing stabilizes, share volatility may persist.