- Healthpeak expects over $1B in proceeds from asset sales and recapitalizations, including a major outpatient portfolio and a Salt Lake City lab campus.
- Q3 earnings came in at $705.9M, topping last year’s figures and slightly ahead of expectations.
- Leasing volume hit 1.5M SF across outpatient and lab spaces, while occupancy and rental activity rose modestly.
- Despite a quarterly loss, Healthpeak remains bullish on its lab investments, supported by a $4.5B Cambridge development and improving biopharma sector fundamentals.
Outpatient Assets Lead The Way
Healthpeak Properties is moving forward with a strategic plan to shed select assets and unlock capital, reports Bisnow. The company has more than $1B in deals either closed or in progress. This comes as outpatient medical buildings continue to outperform other healthcare segments, offering steady occupancy and strong investor demand.
Deals In Motion
The REIT has a pending sale of four fully leased outpatient buildings worth $136M, expected to close before year-end. Additional dispositions include a pair of medical office buildings that brought in $31M. A $68M ground lease sale tied to a Salt Lake City lab campus is expected to close in January.
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Steady Leasing, Strong Demand
Healthpeak signed 1.5M SF in new and renewed leases during Q3, including 1.2M SF in the outpatient sector. Leasing activity climbed 3%, and occupancy ticked up by 10 basis points. The company’s continuing care retirement communities also showed strong performance, with income growth exceeding 50% since 2019.
Looking To Labs For Long-Term Growth
Despite posting a net loss of $0.17 per share in the third quarter—and a 2.3% dip in after-hours trading—Healthpeak is optimistic about its life sciences portfolio. The company expects a rebound in lab leasing over the next two years, backed by improving market sentiment, increased biopharma deal activity, and stabilizing interest rates.
Major Development In The Works
Healthpeak is moving ahead with a $4.5B mixed-use project in Cambridge, Massachusetts, alongside Hines. The development will include 1.3M SF of lab space and reflects the REIT’s broader strategy to double down on high-growth life science hubs.
Why It Matters
Healthcare real estate—especially outpatient and lab properties—continues to attract capital even in a higher-rate environment. Healthpeak’s pivot toward selective sales and reinvestment in key markets underscores a broader shift in the REIT space. The focus is on optimizing the portfolio and doubling down on what’s working.
What’s Next
As Healthpeak finalizes its asset sales, expect continued reinvestment into lab and outpatient sectors. The company’s long-term bet hinges on sustained demand for healthcare and life sciences space—especially in knowledge-economy cities like Cambridge.
