Healthpeak Properties, Inc.

Good morning and welcome to the HealthPeak Properties, Inc. first quarter 2026 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star 1 on your touchtone phone. To withdraw your question, press star 1 again. Please note, this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President of Investor Relations. Please go ahead.

Welcome. Today's conference call contains certain forward-looking statements. Although we believe expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to risks and uncertainties that may cause actual results to differ materially from our expectations. A discussion of risk and risk factors included our press release in detail on our filings of the SEC's We do not undertake a duty to update any forward-looking statements. Certain non-GAAP financial measures, we discussed on this call. In an exhibit to the 8K we furnished to the SEC yesterday, we have reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. The exhibit is also available on our website at healthpeak.com. I'll now turn the call over to our President, Chief Executive Officer, Scott Brinker.

Thanks, AJ, and welcome to HealthPeak's first quarter earnings call. Grateful for our team who delivered a first quarter with excellence in execution. one of our WeCare core values. In early January, we completed the once-in-a-decade buying opportunity at the Gateway Campus in South San Francisco for a small fraction of replacement cost. We're already driving leasing momentum at the campus with 62,000 square feet of signed leases and letters of intent. We also have 113,000 square feet of active proposals and tours at the campus. In March, we completed the IPO of our senior housing business in a unique and creative transaction. The $240 million of current year FFO from that portfolio is now being valued at a multiple that's roughly 20 turns higher than HealthPeak. That differential highlights the growth potential in Janus Living, but also the incredible opportunity in HealthPeak at the current stock price. Despite selling about 18% of the business in the IPO, Our exposure to senior housing is essentially unchanged from December 31 because we closed more than $700 million of acquisitions on our balance sheet prior to the IPO. The timing of the acquisitions was very intentional to capture the multiple arbitrage for our shareholders. Janus Living already has the cost of capital to do accretive acquisitions. As the 82% owner of the company, those acquisitions will benefit health peak earnings. As an example, we expect the IPO proceeds to be accreted to HealthPeak by roughly $0.04 per share once fully invested and stabilized. The value of our best-in-class outpatient platform is being rewarded in the private market by world-class institutions. In March, we closed a joint venture recap with Blackstone on a fully occupied outpatient portfolio at a 6.1% cash cap rate. The transaction raised $170 million in proceeds, and we now have a template for future recaps and acquisitions with Blackstone. We're progressing additional transactions that would generate proceeds of $700 million or more at cap rates about 200 basis points inside what's implied in our current stock price. We bought back $100 million of stock in April at a 10 plus percent FFO yield. The buyback was accretive and allowed us to increase our 2026 earnings guidance. Our stock price is clearly mispriced versus intrinsic value, so we'll continue to evaluate leverage neutral stock buybacks to drive earnings and value accretion. We also paid more than $200 million in dividends to shareholders in the first quarter, which equates to an outrageously high 7.5% annualized dividend yield, especially in light of the solid payout ratio. Turning to operating results, the strong fundamentals in outpatient medical that we spoke to with the merger announcement three years ago continue to be validated. Since closing the merger, we've signed more than 10 million square feet of renewals at cash releasing spreads of positive 5.8%. Last quarter, the spreads were positive 5.4%, and once again, with very modest TIs. Half of our renewals were done in-house, saving $5 million in leasing commissions last quarter alone. Our leasing costs continue to be substantially below the peer group, resulting in strong net effective rents, which drives superior cash flow and ultimately earnings growth. We've been successfully getting 3% escalators in the outpatient business on both new leases and renewals for about five years now. Over those five years, our same-store NOI growth has averaged positive 3.5%, which is 30% higher than the previous five-year average, so definitely an improvement in that business. We're advancing a number of strategic and highly pre-leased outpatient developments with our health system partners, but not yet far enough along to announce publicly. In senior housing, our 1Q results were phenomenal across the board. Entry fees set an all-time high for the first quarter. Incredible work by our team and operating partners, and we'll provide all the details on the Janus Living call. Turning to life science, M&A activity, biopharma stock prices, and capital raising are all trending positively. In fact, April was the most active month for biotech equity issuance since early 2021. HealthPeak total occupancy in life science increased sequentially and we still expect our year end 2026 total occupancy to increase versus the prior year. Our leasing pipeline is broad based from venture backed biotech to large cap pharma. Traditional wet lab accounts for the vast majority of the pipeline, but we do have flexibility. Our robust well located buildings allow us to capture alternative users when it makes economic sense. To summarize, Senior housing performance was outstanding, and we created enormous value with the IPO. Our outpatient portfolio and platform is being rewarded and richly valued in the private market, and our lab business has massive upside as the pendulum starts to swing in our favor. I'll turn it to Kelvin to review our first quarter results and our improved 2026 outlook.