Healthpeak Properties

NYSE: DOC · USD

Healthpeak Properties (DOC) Economic Moat Analysis—

Competitive advantages, dated evidence and erosion risks.

Uncertain economic moat

Healthpeak demonstrates contractual tenant stickiness, repeat leasing demand and positive realized renewal pricing. However, the passages do not establish that these strengths create a durable advantage over competing landlords. Claimed benefits from scale, relationships and irreplaceable locations remain insufficiently demonstrated. Lab vacancy and declining same-store property earnings show current pressure, but do not establish generally low barriers or interchangeable offerings sufficient for a no-moat verdict.

Switching costs

Existing leases provide bounded contractual stickiness: certain early terminations carry economically disadvantageous penalties, an executed renewal extends leases through December 2035, and reported renewals demonstrate repeat demand. This establishes current customer friction, but its differentiation from competing landlords is unproven.

Durability: Protection lasts within applicable lease terms. The long extension supports persistence for those leases, without establishing portfolio-wide durability or protection after expiration.
Competitors: Comparison not established
Erosion risks: Market-based extension options and negotiated space-reduction rights limit protection. Tenant financial distress can weaken enforceability or require concessions. Lab occupancy of 78.5% and negative same-store growth indicate current operating pressure despite renewals.
What would invalidate the thesis: The stickiness thesis would weaken if subsequent disclosures showed sustained renewal-volume deterioration, material use of reduction rights, widespread penalty waivers or rent concessions, or declining occupancy alongside negative renewal spreads.

Evidence (4) · Counterevidence (5)

Changes since the previous analysis

Retain the previous uncertain moat verdict after re-examining current catalog evidence; all four moat criteria remain null.
Newly considered first-quarter 2026 cash renewal spreads of 5.4% in outpatient medical and 3.5% in Lab strengthen direct pricing evidence. Realized pricing remains graded 2 because coverage is limited, particularly the small Lab renewal sample.
Second-quarter renewals and the fifth Northside development add evidence of repeat demand. Conversely, Lab occupancy of 78.5% and a 3.2% same-store NOI decline add realized erosion evidence.
Completed IPO proceeds and debt repayments using joint venture proceeds broaden the capital-management evidence. Management grades remain mixed overall, with incentive alignment supported by actual program disclosures.

Evidence limitations

No supplied passage establishes named entities as competitors. Named tenants, transaction partners, acquired entities and directors' other companies are not treated as competitors; competitor arrays are therefore empty.
The catalog lacks comparative landlord pricing, local supply barriers, replacement costs and demonstrated portfolio-level cost advantages. Issuer claims about scale, relationships and irreplaceability do not establish those advantages.
Renewal volumes demonstrate repeat demand but are not retention rates; expiring-area denominators and portfolio-wide renewal economics are absent.
Reported operating achievements and contractual terms support numerical pricing and management grades, but remain issuer disclosures. Non-GAAP NOI and adjusted FFO have different scopes and do not independently establish margin stability or a moat.
Actual compensation program terms are supplied, but complete executive ownership amounts and ownership-guideline compliance are not established. Proposed Janus Living director awards are not treated as adopted or vested awards.
Source dates are filing dates, retaining dateKind filed. Completed transactions, contractual commitments, LOIs and guidance are distinguished; forecasts and unsigned future outcomes are not counted as realized performance.

Financial indicators to test against the thesis

Calculated from annual filings. Missing data remains unavailable. Detailed financial charts remain in the other topics.

Financial indicators to test against the thesis
Period	Gross margin	Operating margin	ROIC	FCF margin
2021	-64.1%	—	—	7.5%
2022	-74.4%	—	—	-12.5%
2023	-71.0%	—	—	34.4%
2024	-89.1%	—	—	58.7%
2025	—	—	—	59.1%

Pricing power56

Pricing outcomes
First-quarter 2026 renewal cash spreads were positive at 5.4% in outpatient medical and 3.5% in Lab, while higher resident rates contributed to 2025 senior housing NOI growth. These are observed pricing outcomes, but the Lab renewal sample was only 12,000 square feet and sustained portfolio-wide pricing superiority is unproven.
Customer demand
Outpatient medical renewals of 868,000 square feet in the first quarter and 916,000 in the second quarter, substantial early termination penalties and the long lease extension provide strong evidence of repeat demand and contractual friction. Repeated Northside projects reinforce the relationship evidence. No portfolio retention rate is inferred, and reduction rights qualify the protection.
Margin resilience
Janus Living reported 250 basis points of same-store margin expansion, and total second-quarter same-store NOI grew 1.8%. However, Lab same-store NOI declined 3.2%; first-half adjusted FFO fell while recurring capital expenditures rose. Resilience is mixed and assessed partly from indirect earnings evidence rather than a complete portfolio margin series.
Pricing freedom
Negotiated higher escalations, positive renewal spreads and termination penalties provide meaningful contractual pricing protection. Existing terms, market-based extension options and space-reduction rights constrain unilateral repricing. The direction of the initial market rent reset in the long extension is undisclosed.

Management56

Capital discipline
Completed $100 million repurchases, approximately $880 million of IPO proceeds and joint venture proceeds used to repay $650 million of notes and approximately $375 million of commercial paper demonstrate actual financing and capital recycling. The $178 million investment impairment and rising recurring capital expenditures temper the record. Long-term acquisition returns and repurchase value creation remain unproven.
Incentive alignment
The actual 2025 compensation program links cash incentives to FFO and leverage metrics and performance equity to three-year relative shareholder returns. Objective payouts were based on actual performance without discretion, and hedging and pledging are prohibited. This supports strong program alignment, without establishing complete ownership compliance or exceptional long-term outcomes.
Execution
Completed IPO funding, debt repayments, repeat leasing and substantial pre-leasing of another Northside development demonstrate execution. Assessment uses operating and transaction outcomes rather than executive scorecard praise. Lab vacancy and declining same-store NOI, lower first-half adjusted FFO and investment impairments offset the achievements; development completion and long-term transaction returns remain unproven.
Governance
Adopted proxy access, mandatory auditor-service pre-approval and trading restrictions provide concrete safeguards. Charter ownership limits and provisions capable of preventing otherwise beneficial transactions constrain shareholder influence. The disclosures support a mixed assessment, not exceptional demonstrated oversight effectiveness.

Sources and methodology

Current publication · Updated 19/10/2026 · Version 6

AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.

Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 19/10/2026

Moat—

Insufficient evidence for every rubric criterion; no category score is inferred.

structural advantage · — · Contractual penalties and hospital-linked locations identify plausible mechanisms, but the passages do not establish a differentiated structural advantage over competing landlords. Scale and relationship advantages are issuer assertions.

durability · — · The extension through December 2035 demonstrates contract duration for particular leases, not durable portfolio-wide competitive superiority. Market-based renewals and reduction rights leave the moat position unresolved.

customer dependency · — · Penalties, substantial renewals and repeated Northside projects establish customer stickiness. They do not establish dependency specifically on Healthpeak rather than available competing properties sufficient to resolve the moat assessment.

erosion resilience · — · Positive outpatient and senior housing same-store results coexist with Lab weakness. Without established differentiation or comparative performance, resilience of an economic moat cannot be determined.

Pricing power56

Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.

realized pricing · 2/4 · First-quarter 2026 renewal cash spreads were positive at 5.4% in outpatient medical and 3.5% in Lab, while higher resident rates contributed to 2025 senior housing NOI growth. These are observed pricing outcomes, but the Lab renewal sample was only 12,000 square feet and sustained portfolio-wide pricing superiority is unproven.

retention · 3/4 · Outpatient medical renewals of 868,000 square feet in the first quarter and 916,000 in the second quarter, substantial early termination penalties and the long lease extension provide strong evidence of repeat demand and contractual friction. Repeated Northside projects reinforce the relationship evidence. No portfolio retention rate is inferred, and reduction rights qualify the protection.

margin resilience · 2/4 · Janus Living reported 250 basis points of same-store margin expansion, and total second-quarter same-store NOI grew 1.8%. However, Lab same-store NOI declined 3.2%; first-half adjusted FFO fell while recurring capital expenditures rose. Resilience is mixed and assessed partly from indirect earnings evidence rather than a complete portfolio margin series.

contractual freedom · 2/4 · Negotiated higher escalations, positive renewal spreads and termination penalties provide meaningful contractual pricing protection. Existing terms, market-based extension options and space-reduction rights constrain unilateral repricing. The direction of the initial market rent reset in the long extension is undisclosed.

Predictability70

Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.

Nondeclining revenue years (%): 100.00
Revenue growth volatility (pp): 0.99
Positive FCF years (%): 80.00
FCF margin volatility (pp): 28.28

Source 1 Source 2 Source 3

Financial strength—

Missing required inputs: currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.

debtFcfGrade: 0.00
netDebtEbitGrade: 0.00
interestCoverageGrade: 8.47
Debt / FCF (x): 27.58
Net debt / operating income (x): 15.91

Source 1 Source 2 Source 3

Capital allocation53

Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.

3-year pre-tax operating return (%): 3.56
3-year average dilution (%): 9.35
3-year average SBC / revenue (%): 2.62
cashConversionGrade: 100.00

Source 1 Source 2 Source 3

Management56

Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.

capital discipline · 2/4 · Completed $100 million repurchases, approximately $880 million of IPO proceeds and joint venture proceeds used to repay $650 million of notes and approximately $375 million of commercial paper demonstrate actual financing and capital recycling. The $178 million investment impairment and rising recurring capital expenditures temper the record. Long-term acquisition returns and repurchase value creation remain unproven.

incentive alignment · 3/4 · The actual 2025 compensation program links cash incentives to FFO and leverage metrics and performance equity to three-year relative shareholder returns. Objective payouts were based on actual performance without discretion, and hedging and pledging are prohibited. This supports strong program alignment, without establishing complete ownership compliance or exceptional long-term outcomes.

execution · 2/4 · Completed IPO funding, debt repayments, repeat leasing and substantial pre-leasing of another Northside development demonstrate execution. Assessment uses operating and transaction outcomes rather than executive scorecard praise. Lab vacancy and declining same-store NOI, lower first-half adjusted FFO and investment impairments offset the achievements; development completion and long-term transaction returns remain unproven.

governance · 2/4 · Adopted proxy access, mandatory auditor-service pre-approval and trading restrictions provide concrete safeguards. Charter ownership limits and provisions capable of preventing otherwise beneficial transactions constrain shareholder influence. The disclosures support a mixed assessment, not exceptional demonstrated oversight effectiveness.

Evidence

Certain operating leases contain early termination options that require advance notice and payment of a penalty, which in most cases is substantial enough to be deemed economically disadvantageous by a tenant to exercise.
Lease accounting disclosures: early termination penalties · Filed 03/02/2026

The renewal, which is subject to a master agreement, extended the weighted average lease term of existing leases from July 2027 to December 2035, amended the contractual rents to current market rates, and increased the annual contractual lease escalations from 2.5% to 3.0%.
Lease renewal: extended term and contractual escalations · Filed 03/02/2026

In connection with this extension, CommonSpirit was provided the right to reduce the amount of space leased by up to approximately 200,000 square feet at any time after the original lease maturity dates.
Lease renewal: CommonSpirit space-reduction rights · Filed 03/02/2026

The Company’s operating leases generally contain options to extend lease terms at prevailing market rates at the time of expiration.
Lease accounting disclosures: market-based extension options · Filed 03/02/2026

If widespread default or nonpayment of outstanding obligations from our tenants, operators, or borrowers occurs at a time when terminating our agreements with them and replacing them would be difficult or impossible, we could elect instead to amend our agreements on materially less favorable terms to us.
Risk factors: possible unfavorable amendments during widespread defaults · Filed 03/02/2026

•Outpatient Medical new lease executions totaled 195,000 square feet and renewal lease executions totaled 868,000 square feet, with +5.4% cash releasing spreads on renewals
First-quarter 2026 outpatient medical lease executions and renewal spreads · Filed 05/05/2026

•Outpatient Medical new lease executions totaled 327,000 square feet and renewal lease executions totaled 916,000 square feet
Second-quarter 2026 outpatient medical new leases and renewals · Filed 04/08/2026

–Total occupancy increased sequentially by +20 basis points ("bps") in Outpatient Medical to 90.7% and by +80 bps in Lab to 78.5%
Second-quarter 2026 occupancy by property segment · Filed 04/08/2026

To learn more and view the Corporate Impact Report, please visit www.healthpeak.com/corporate-impact SECOND QUARTER RESULTS Three Months Ended June 30, 2026 2025 Diluted Net income (loss) per common share $ 0.08 $ 0.05 Diluted FFO as Adjusted per common share 0.46 0.46 Page 1 Year-Over-Year Same-Store ("SS") Adjusted NOI Growth Three Month SS Growth % % of SS Outpatient Medical 2.5 % 56.4 % Lab (3.2 %) 34.0 % Senior Housing 19.2 % 9.6 % Total 1.8 % 100.0 % Page 2 JANUS LIVING SECOND QUARTER FINANCIAL AND OPERATING HIGHLIGHTS
Second-quarter 2026 same-store adjusted NOI growth by segment · Filed 04/08/2026

•Lab new lease executions totaled 129,000 square feet and renewal lease executions totaled 12,000 square feet and +3.5% cash releasing spreads on renewals
First-quarter 2026 Lab lease executions and renewal spreads · Filed 05/05/2026

•an increase in Adjusted NOI generated from our senior housing segment related to: (i) increased rates for resident fees and (ii) higher occupancy;
2025 operating results: senior housing resident rates and occupancy · Filed 03/02/2026

We have built scale and fostered deep industry relationships, two unique factors that provide us with a competitive advantage.
Business strategy: issuer claim concerning scale and relationships · Filed 05/08/2026

Because we rely on our proximity to, and affiliations with, these hospitals to create tenant demand for space in our outpatient medical buildings, their inability to remain competitive or financially viable, or to attract physicians and physician groups, could adversely affect our outpatient medical building operations and have a material adverse effect on us.
Risk factors: outpatient demand depends on hospital proximity and affiliations · Filed 03/02/2026

YEAR-OVER-YEAR TOTAL MERGER-COMBINED SS CASH (ADJUSTED) NOI GROWTH Full Year SS GROWTH % Outpatient Medical 3.8% Lab 1.5% Senior Housing 12.6% Total Merger-Combined SS Cash (Adjusted) NOI 3.9% 2026 PROXY STATEMENT 97 Table of Contents Appendix A Definitions Cash (Adjusted) Net Operating Income (“NOI”).
Appendix A: 2025 same-store cash adjusted NOI growth · Filed 12/03/2026

Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) applicable to common shares $ 52,668 $ 31,558 $ 246,152 $ 73,922 Real estate related depreciation and amortization 283,390 265,916 573,124 534,462 Healthpeak’s share of real estate related depreciation and amortization from unconsolidated joint ventures 7,644 12,530 14,856 24,730 Noncontrolling interests’ share of real estate related depreciation and amortization (15,421) (4,426) (20,123) (8,879) Loss (gain) on sales of depreciable real estate, net (9,988) (1,636) (60,657) (1,636) Healthpeak’s share of loss (gain) on sales of depreciable real estate, net, from unconsolidated joint ventures 1,793 — 1,793 — Noncontrolling interests’ share of gain (loss) on sales of depreciable real estate, net 973 — 973 — Loss (gain) upon change of control, net(1) (226) — (138,343) — Taxes associated with real estate dispositions (1,863) (335) (1,805) (335) Nareit FFO applicable to common shares 318,970 303,607 615,970 622,264 Distributions on dilutive convertible units and other 4,384 4,560 8,930 9,183 Diluted Nareit FFO applicable to common shares $ 323,354 $ 308,167 $ 624,900 $ 631,447 Impact of adjustments to Nareit FFO: Transaction, merger, and restructuring-related costs(2) $ 7,734 $ 10,215 $ 28,302 $ 15,749 Other impairments (recoveries) and other losses (gains), net(3) (1,479) 3,499 (3,754) 179 Loss (gain) on debt extinguishments — — 302 — Casualty-related charges (recoveries), net(4) (4,191) 3,919 (4,381) 8,145 Recognition (reversal) of valuation allowance on deferred tax assets(5) — — (3,058) — Total adjustments $ 2,064 $ 17,633 $ 17,411 $ 24,073 FFO as Adjusted applicable to common shares $ 321,034 $ 321,240 $ 633,381 $ 646,337 Distributions on dilutive convertible units and other 4,382 4,545 8,916 9,161 Diluted FFO as Adjusted applicable to common shares $ 325,416 $ 325,785 $ 642,297 $ 655,498 Other operating data: Amortization of deferred financing costs and debt discounts (premiums) $ 8,900 $ 7,875 $ 17,264 $ 15,727 Non-refundable entrance fee sales in excess of (less than) the related GAAP amortization 12,866 19,042 20,621 23,739 Stock-based compensation amortization expense 4,351 1,738 8,853 6,365 Deferred income taxes 48 2,597 3,101 5,168 AFFO capital expenditures (42,105) (25,729) (66,061) (48,864) Straight-line rents (12,183) (5,401) (23,088) (16,554) Amortization of above (below) market lease intangibles, net (6,308) (10,085) (12,905) (20,296) Other items(6) (3,055) (1,069) (5,662) 381 Refer to footnotes on the next page.
FFO reconciliation: first-half 2026 adjusted FFO and AFFO capital expenditures · Filed 05/08/2026

◦Same-store Adjusted NOI increased 19.2% and margin expanded 250 basis points
Janus Living second-quarter same-store NOI and margin results · Filed 04/08/2026

During the three and six months ended June 30, 2026, the Company repurchased 5.95 million shares of its common stock under the 2024 Share Repurchase Program at a weighted average price of $16.81 per share for a total of $100 million.
Equity disclosures: completed first-half 2026 repurchases · Filed 05/08/2026

The Company concluded that the decline in fair value of certain equity method investments was other-than-temporary and recorded impairment charges of $178 million for the year ended December 31, 2025, which is included in “Equity income (loss) from unconsolidated joint ventures” within the Consolidated Statements of Operation.
Investment impairment disclosures: 2025 joint venture impairments · Filed 03/02/2026

Subsequent to the end of the second quarter, Healthpeak used proceeds from the Brookfield joint venture to repay $650 million of 3.25% senior notes at maturity and approximately $375 million of borrowings under its commercial paper program.
Post-quarter capital recycling: use of joint venture proceeds for debt repayment · Filed 04/08/2026

The net proceeds from the IPO were approximately $880 million, after deducting underwriting discounts and expenses payable by Janus Living.
Completed Janus Living IPO: net proceeds · Filed 05/05/2026

Key Compensation Elements BASE SALARY ANNUAL CASH INCENTIVE OPPORTUNITIES LONG-TERM EQUITY INCENTIVE OPPORTUNITIES ● Competitive base salary to attract and retain talent based on experience, job scope, market data and individual performance ● Annually reviewed against similarly situated executives at peer companies to maintain competitive levels ● Based on the achievement of objective Company performance metrics to align compensation with strategic goals ● Includes primarily objective financial performance metrics of Normalized FFO per share, and Net Debt to Adjusted EBITDAre, which are common REIT performance measures and help advance our business strategy ● Includes quantitative and qualitative corporate impact metrics ● A limited portion of the annual cash incentive, or bonus, is based on individual performance to reward individual achievements and contributions and ensure that executives are driving execution of our business strategy ● Performance-based awards and service-based awards with a performance hurdle (granted in the form of RSUs or profits interest units) ● Performance-based awards earned by achieving 3-year Company TSR performance relative to constituents in two select indices comprised of REIT peers ● Service-based awards encourage retention by vesting ratably over three years, subject to a performance hurdle requiring achievement of a minimum Normalized FFO per share threshold in the grant year 2026 PROXY STATEMENT 41 Table of Contents Compensation Discussion and Analysis Pay-for-Performance Philosophy Our executive compensation program rewards successful annual performance and encourages long-term value creation for our stockholders.
2025 compensation program: cash metrics and equity performance conditions · Filed 12/03/2026

Compensation decisions with respect to objective performance criteria were based on actual performance against the pre-established goals and were not discretionary.
Compensation practices: objective payouts based on actual performance · Filed 12/03/2026

No pledging or hedging of our securities by directors, officers or other employees
Compensation safeguards: prohibition on hedging and pledging · Filed 12/03/2026

Proxy Access Our Bylaws permit a stockholder, or group of up to 25 stockholders, owning at least 3% of our outstanding common stock continuously for three years to nominate up to the greater of two directors or a number of directors constituting up to 20% of our Board for inclusion in our proxy materials for an annual meeting of stockholders, subject to complying with the requirements contained in our Bylaws.
Corporate governance: adopted proxy access · Filed 12/03/2026

The Audit Committee must pre-approve all audit and non-audit services performed by Deloitte, including the types of services to be provided and the estimated fees relating to those services.
Auditor independence: mandatory service pre-approval · Filed 12/03/2026

•ownership limits in our charter that restrict ownership in our stock, and provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders;
Governance risks: ownership limits and transaction restrictions · Filed 05/08/2026

The development represents Healthpeak’s fifth ground-up project totaling 565,000 square feet supporting Northside Hospital’s continued outpatient expansion in the Atlanta market.
Northside development: repeated project relationship · Filed 04/08/2026

The development is 84% pre-leased to Northside Hospital and affiliated physician groups supporting a range of clinical services and extends Northside’s network in a high-growth submarket connecting its Forsyth and Gwinnett hospital campuses.
Northside development: disclosed pre-leasing · Filed 04/08/2026

Publication history

Publication history
Version	Updated	Competitive advantage
6	19/10/2026	uncertain
5	19/10/2026	uncertain
4	18/10/2026	uncertain
3	18/10/2026	uncertain
2	18/10/2026	uncertain
1	18/10/2026	Unavailable

Sources

Research methodology and limitations · What is an economic moat?