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In 2021, Healthpeak Properties (NYSE: DOC), then awash in challenges associated to Covid-19, virtually exited senior dwelling. Now, the REIT is again, and the transfer has implications for the well being of the trade.
Earlier this week, the corporate introduced the formation of Janus Dwelling, an actual property funding belief (REIT) spin-off launching with 34 senior housing properties in Florida, Houston, Philadelphia, Chicago and the Washington, D.C. space. The corporate goals to amass and construct communities underneath RIDEA administration buildings.
The corporate is planning an preliminary public providing (IPO) for the brand new REIT and can function its exterior supervisor whereas holding “substantial majority curiosity” in it. Its pipeline of acquisition alternatives for Janus at the moment sits at about roughly $675 million of investments already underneath signed letters of intent or buy agreements.
Healthpeak – as soon as referred to as HCP – is taken into account among the many “huge three” well being care REITs, together with Welltower (NYSE: WELL) and Ventas (NYSE: VTR), and its return to senior housing indicators an energetic M&A market forward as all three firms search to develop their senior housing working portfolios this yr.
That the REIT considerably exited senior dwelling trade – promoting billions of {dollars} value of communities since 2021 – after which dove again in 4 years later speaks to the massive development alternative that traders and house owners see forward with the oldest child boomers turning 80 this yr.
I consider that Healthpeak, together with Welltower and Ventas, will proceed to aggressively search for acquisition targets this yr, particularly as new growth stays frozen for now. The REIT “SHOP-ing spree” was fervent in 2025 as considerably all the REITs that transact in senior housing added communities and working companions to their rising working portfolios, and I feel Healthpeak’s re-entry into the trade is a sign that these traits will proceed and maybe even speed up this yr on condition that there are nonetheless many properties available on the market left to alter fingers.
Whereas Janus Dwelling is beginning comparatively small in comparison with its different REIT friends, with 15 persevering with care retirement communities (CCRCs) and 19 senior housing communities in its whole holdings, Healthpeak shouldn’t be a small participant with greater than 520 medical workplace buildings and 115 lab properties in its portfolio. The corporate can also be no stranger to senior housing, and it has the buying energy and liquidity to upsize its holdings to that finish in brief order.
This isn’t the primary time Healthpeak has spun off a part of its portfolio into a brand new firm. In 2016, the corporate spun off its expert nursing and assisted dwelling belongings into an organization referred to as High quality Care Properties. Two years later, the phase was acquired by Welltower and ProMedica in a three way partnership.
On this members-only SHN+ Replace, I analyze the current Healthpeak information and different offers and provide the next takeaways:
- Inside Healthpeak’s senior housing historical past
- Why Healthpeak is once more considering rising its senior housing holdings
- What Healthpeak’s return to senior housing means for M&A in 2026
Return to senior dwelling comes after $4 billion selloff
With its formation of Janus Dwelling, Healthpeak is returning to senior dwelling, believing that substantial development and worth lies forward. However the firm has not at all times had such an upbeat perspective in regards to the trade or its instant fortunes.
Simply earlier than the Covid-19 pandemic and months earlier than it modified its identify to Healthpeak, the REIT was a vital holder and acquirer of senior dwelling properties with 92 communities leased underneath triple-net agreements and 128 in a senior housing working portfolio (SHOP) phase, in accordance with a 3Q19 monetary disclosure.
On the time, the corporate was within the midst of a senior dwelling revamp, with expectations that the technique would bear fruit within the years to comply with. Then got here Covid-19 and all its disastrous results.
Though firm management burdened the communities weren’t considerably underperforming in 2020, then-CEO Tom Herzog stated the REIT was getting ready to promote communities forward of what he noticed as a “bumpy journey” forward for the senior dwelling trade.
The corporate started promoting the portfolio in chunks. Lower than a yr later, Healthpeak had made substantial headway on its $4 billion selloff and redeployed the proceeds from these gross sales again into its medical workplace and life sciences segments. By the third quarter of 2021, the corporate had slimmed down to only 15 CCRCs and 9 senior housing properties.
Within the years that adopted, Healthpeak reported constructive operational traits and stronger entrance charge income for its portfolio of CCRCs, and expanded a number of campuses. The corporate’s main CCRC working companions embody LCS, which manages 13 such communities for the REIT.
In 2023, Healthpeak merged with Physicians Realty Belief in an all-stock transaction which was on the time valued at roughly $21 billion.
Primarily based on current feedback from leaders of different publicly traded senior housing REITs, I don’t suppose it’s a giant thriller as to why Healthpeak is leaping again into the senior housing trade with its Janus Dwelling spinoff.
Since 2023, considerably each main senior housing and care REIT has latched onto SHOP segments and RIDEA administration buildings, together with Nationwide Well being Buyers (NYSE: NHI) and LTC Properties (NYSE: LTC), which had earlier than the pandemic expressed some skepticism relating to the administration format.
Low development begins imply fewer new entrants within the instant future, and in 2026 demand from the child boomer era is rapidly – and at last – rising. Desirous to make their very own destinies, REITs are taking an ever-growing position managing and overseeing operations with their SHOP companions.
Corporations like Welltower and Ventas now have subtle instruments to assist operators carry out of their markets, and a perception that REITs can finest compete within the trade with deep regional portfolios and strongly aligned working companions.
As CEO Scott Brinker famous within the firm’s announcement of the Janus Dwelling spinoff, the launch and IPO “is meant to allow Healthpeak to … extra successfully pursue our energetic pipeline of senior housing acquisition alternatives.”
I took observe of the truth that Healthpeak said Janus will pursue “accretive acquisitions and different value-creation initiatives.” That can also be a method different REITs are endeavor in 2026 as they appear to assemble portfolios of well-performing communities by shopping for them at reductions to alternative price.
Return of Healthpeak underscores REIT SHOP-ing spree pattern
To me, the largest takeaway from Healthpeak’s return to senior dwelling is the way it underscores the feeding frenzy underway for well-performing properties. An organization the scale of Healthpeak doesn’t simply get again into an trade after a considerably dramatic $4 billion exit, and to me that speaks to an nearly irresistible acquisition alternative that leaders of REITs see proper now.
As I tuned into earnings calls in 2025, many times I heard themes of how REITs have basically the wind at their backs for future acquisitions. Communities are nonetheless buying and selling at low cost to alternative prices, and that has resulted in REITs inserting more and more giant bets on rising their senior housing companies.
Final fall, Welltower introduced a “transformative” shift towards senior dwelling with a $14 billion deal to amass greater than 700 communities. Three days later, Ventas introduced that its SHOP comprised greater than half of its annual NOI thanks partly to its $2.2 billion slate of acquisitions in 2025.
“We consider that re-doubling our efforts within the seniors housing enterprise represents the surest and quickest path to attaining our mission of elevating each the resident and site-level worker expertise, whereas additionally enhancing our alternative to ship long-term compounding of per share development for our current traders,” Welltower CEO Shankh Mitra stated after the corporate’s blockbuster acquisition final yr.
In lots of circumstances, REITs are shopping for up teams of communities that aren’t really a part of the identical portfolio, with the intention of piecing them out to totally different regional companions. These sorts of transactions are driving a better variety of whole offers – in September 2025, there have been 733 publicly traded offers, in comparison with 717 and 518 in 2024 and 2023, respectively.
To me, the Healthpeak-Janus Dwelling spinoff solely factors to a doubtlessly extra energetic M&A yr forward. I feel that the chance should be extraordinarily robust to draw an organization like Healthpeak again off the sidelines, and consider that this will probably be a defining yr for the trade reshaping itself.
Not solely does it sign a warmer M&A market, however extra potential consumers competing for offers, a pattern that would drive up bids and assist sellers and working companions entry capital through tendencies.
I’m additionally struck by the corporate’s identify. Though I’m not sure if that is the direct inspiration for it, Janus was the Roman god of starting, transitions and endings, amongst different issues. In impact, Healthpeak’s return to senior dwelling might be the start of a brand new interval for M&A. And whereas that is but to be seen, it additionally might sign that Covid’s lingering results on trade development are lastly beginning to finish.
