Healthpeak Properties, Inc.

Good morning, and welcome to the HealthPeak Properties, Inc. second quarter 2026 conference call. All participants will be in 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 then one on your touchtone phone. To withdraw your question, please press star then one again. Please note, this event is being recorded. I would now like to turn the conference over to Andrew Johns, Senior Vice President, Investor Relations. Please go ahead.

Welcome. Today's conference call contains certain forward-looking statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to risk and uncertainties that may cause actual results to differ immaterially from our expectations. A discussion of risk and risk factors is included in our press release and details of our filings to the SEC. We do not undertake a duty to update any forward-looking statements. Certain non-GAAP measures we discussed on this call in an 8K that we filed with STC yesterday, we have reconciled all non-GAAP financial measures, the most directly comparable GAAP measures, in accordance with the 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 second quarter earnings call. We CARE is the acronym we use for our core values, with the W representing our winning mindset. That's easy to do when demand exceeds supply and fundamentals are in your favor. Everyone's happy and looks really smart. It's a lot harder to do when supply exceeds demand, but that's exactly when a winning mindset is needed the most. As the life science pendulum finally starts to swing back in our favor, I want to say thank you to the team here who live up to our core values and maintain a winning mindset these past four years. It absolutely paid off and we're stronger because of it. The downturn also provided a window to redefine our company and reset the competitive landscape. We were bold and strategic, including a $5 billion merger and a billion dollar IPO. Today, we're a bigger and better company because of those decisive actions. Even more important, we added capabilities, including strategic new hires and internalizing property management in much of our renewal leasing. Now we're in the process of rolling out our agentic operating platform. This modern version of HealthPeak is an on-the-ground operator who generates superior results with our people and platform. We're already seeing a payoff from this strategy. In the past two quarters, two of the largest and most respected real estate investors in the world chose HealthPeak as their operating partner. Neither Blackstone nor Brookfield had any meaningful prior exposure to the outpatient medical sector. Both joint ventures allow us to maintain control of strategic buildings and tenant relationships while providing an alternative source of equity capital. We're excited to grow both of those partnerships in the future. Our balance sheet is stronger than it's ever been. Leverage is below five times, and we have flexibility to pursue a number of capital allocation alternatives. We're funding highly pre-leased outpatient development projects sourced directly through our relationships, such as the project in Atlanta that we announced last evening. We can also do outpatient acquisitions in our joint ventures with Blackstone and Brookfield, where the deal structures generate additional returns to HealthPeak as the operating partner. We also see a unique opportunity in LifeScience to create value via acquisition. LifeScience has been a development game for the past decade, but for the next few years it will be an acquisition game, and we have the platform and balance sheet to capitalize on the opportunity. We can also do stock buybacks if and when the stock price is well below intrinsic value. Today that's less attractive, But we did buy back $100 million in April at a 10-plus percent FFO yield when the stock was less than $17 per share. And finally, we could maintain leverage below our 5.5 times long-term target, given the cost of debt today isn't much lower than the fair market cap rate of our real estate. This is not the right environment to have elevated leverage. With our strong balance sheet, we can afford to be patient and utilize our dry powder when it's most impactful. A few comments on operating results and the underlying environment. The strong fundamentals in outpatient medical that we spoke to with the merger announcement three years ago continue to be validated. Last quarter, we had plus 5% cash releasing spreads and modest TIs that continue to be materially lower than peers. Total occupancy increased 20 basis points sequentially, and our leasing pipeline suggests that an internal growth in the outpatient portfolio will accelerate in 2027. In life science, public capital raising last quarter was the highest since 2Q21. The IPO market is healthy but measured, with 13 later-stage companies raising more than $5 billion in proceeds in the first half of the year. This week alone, we could see five biotechs price IPOs. M&A has been record-breaking, with more than $250 billion in announcements in the last three quarters, which recycles capital back into the ecosystem. Most important, the science continues to advance, and year-to-date FDA approvals are above the five-year trend. The building blocks are in place for occupancy in the sector to inflect, led by HealthBeat. In Senior Housing, we'll provide all the details on the Janus Living call, but happy to report that same store portfolio had 260 basis points of occupancy growth and 19% NOI growth. We have an active and accretive acquisition pipeline sourced through our deep relationships in the sector, including $1.8 billion closed since January 1. Our senior housing portfolio will essentially double in size this year, and the number of operating partners will increase from two to more than 10. We're on pace to accomplish a three-year business plan in 12 months. Janus Living's success is also driving earnings growth at HealthPeak, given our unique and creative deal structure that aligns the interests of both companies. I'll turn it to Kelvin.