Operator: Good morning. Welcome to the Healthpeak Properties, Inc. Second Quarter 26 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 * then 1 on your touch tone phone. To withdraw your question, please press * then 1 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.

Andrew Johns: 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 risks and uncertainties that may cause actual results to differ materially from our expectations. A discussion of risks and risk factors is included in our press release and detailed in our filings with the SEC. We do not undertake a duty to update any forward looking statements. Certain non GAAP measures we discuss on this call. In an 8-K ks that we filed with SEC yesterday, we have reconciled all non GAAP financial measures most directly comparable GAAP measures accordance with regulatory requirements. The exhibit is also available on our website at healthpeak.com. I will now turn the call over to our President and Chief Executive Officer, Scott Brinker.

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 our winning mindset. that is easy to do when demand exceeds supply and fundamentals are in your favor. Everyone's happy and looks really smart. it is a lot harder to do when supply exceeds demand, but that is 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 4 years. It absolutely paid off, and we are 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 $1 billion IPO. Today, we are 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 are in the process of rolling out our AGNext operating platform. This modern version of Healthpeak is an on the ground operator who generates superior results with our people and platform. We are already seeing a payoff in the strategy. In the past 2 quarters, 2 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 are excited to grow both of those partnerships in the future. Our balance sheet is stronger than it is ever been. Leverage is below 5x, and we have flexibility to pursue a number of capital allocation alternatives. We are funding highly preleased 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 life science to create value via acquisition. Life science has been a development game for the past decade, 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 is less attractive, but we did buy back $100 million in April at a 10+% FFO yield when the stock was less than $17 per share. And finally, we could maintain leverage below our 5.5x long term target given the cost of debt today is not 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, utilize our dry powder when it is 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 3 years ago continue to be validated. Last quarter, we had plus 5% cash re-leasing 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 into 2027. In life science, public capital raising last quarter was the highest since Q2 2021. 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 5 biotechs price IPOs. M&A has been record breaking with more than $250 billion of announcements in the last 3 quarters, which recycles capital back into the ecosystem. Most important, the science continues to advance, year to date FDA approvals are above the 5-year trend. The building blocks are in place for occupancy in the sector to inflect, led by Healthpeak. In senior housing, we will provide all the details on the Janus Living call, 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 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 2 to more than 10. We are on pace to accomplish a 3 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 interest of both companies. I will turn it to Kelvin.

Kelvin O. Moses: Thank you, Scott. We continue to execute our plan, and have made tremendous progress year to date in our leasing and capital allocation objectives. I will take a moment on our outpatient medical recapitalization with Brookfield. We are pleased to complete this strategic partnership as the proceeds raised exceed our capital recycling target for the year in a single transaction. With the leadership from our investments team, we have demonstrated our ability to execute scale transactions and partner with leading institutional investment managers. From a structure perspective, Healthpeak will retain a 51% ownership interest in a 5.6 million-square-foot outpatient medical portfolio. and raise $1 billion of cash proceeds. We will utilize our best in class platform and expertise to provide asset management, property management, and leasing services. Maintaining day to day control of the real estate, and preserving our client relationships. Economically, the transaction represents a trailing cash cap rate of 5.9%, And after 7 years, we will have a finite number of call rights to repurchase the noncontrolling interest at a price sufficient to provide Brookfield a 6.5% unlevered rate of return. Most importantly, this partnership expands our access to alternative sources of equity capital with a framework we can replicate to pursue growth opportunities across our business. Now turning to the second quarter results. We reported FFO as adjusted of $0.46 per share and net debt to EBITDA of 4.7x. Now starting with outpatient medical, we had another strong quarter of leasing as we continue to see demand for our real estate. For the quarter, we executed 1.2 million square feet of leases, including approximately 327 thousand square feet of new leasing bringing our year to date total to 2.3 million square feet. We achieved 80% tenant retention, and cash re-leasing spreads of 5%, which is in line with our average of 5% over the last 10 quarters and above our pre-Physicians Realty merger averages of 2% to 3%. We ended the quarter with total occupancy up 20 basis points sequentially to 90.7%. Since July 1, we have an additional 204 thousand square feet of lease executions and approximately 882 thousand square feet under LOI. I would like to highlight our partnership with Northside in Atlanta as it is proven to be a source of strategic growth for our outpatient portfolio. We have now entered into another development agreement for the ground up construction of a new outpatient medical project to support their expansion in Atlanta. Where we have the number 1 market share. This will be the fifth development project with Northside, totaling approximately 565 thousand square feet. Moving to lab, we continue to make progress toward net absorption and total occupancy capture through year-end. For the quarter, we executed 381 thousand square feet of leases, of which approximately 60% was new leasing and 30% on vacant space. We ended the quarter with total occupancy increasing by 80 basis points sequentially to 78.5%. That is a 140-basis-point increase since year-end 2025. And since July, we have entered into approximately 20 thousand square feet of leases, and another 480 thousand square feet under LOI. As a result of this activity, we anticipate a modest improvement in total occupancy by year end, from where we stand as of June 30. These results reflect our focus on driving leasing volumes at our properties which I would like to highlight by sharing our progress in Torrey Pines. The premier lab submarket in San Diego. The activity we have seen in Torrey Pines is a testament to our team on the ground, and our high quality portfolio. As tenants are seeking core assets and core locations, with experienced landlords. This is allowing us to capture an outsized share of the deal volume. When accounting for executed leases and LOIs, our leased percentage in the submarket increases to 97% from approximately 65% at year-end 2025. And ending with senior housing, Healthpeak's ownership interest in Janus Living is now 74% which represents approximately $6.5 billion of equity value. For the second quarter, Janus Living delivered total revenue growth of 45% adjusted EBITDA growth of 34%, and ended the period with cash on the balance sheet and no outstanding debt. Now moving to the balance sheet. We had significant activity during the second quarter, into the third quarter against a backdrop of elevated borrowing costs. We have taken prudent steps to manage our debt maturities and maintain flexibility and accessing the capital market. Through year end, we now expect generate $1.9 billion of gross proceeds from capital recycling initiative, And to date, we have completed $1 billion of acquisitions and buybacks. Through August 4, we have repaid $900 million of debt including $650 million of senior unsecured notes in July. We ended the second quarter with net debt to adjusted EBITDA of 4.7x, and $4.1 billion of available liquidity. And quickly ending with guidance before we open up for Q&A. We raised our FFO as adjusted guidance range by $0.02 to $1.73 to $1.77 per share. The rate was driven by a 75-basis-point increase in total same store NOI at the midpoint, which includes a 200-basis-point increase in both lab and senior housing, and the recognition of the low market interest amortization related to the $400 million seller note repayment. To recap, we have made significant progress across the business through the first half of the year, and our balance sheet has never been stronger. We have ample capacity available to deploy into new investments, as we find opportunities. And with that, operator, please open the line for questions.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 1 again. In the interest of time, callers will be limited to 1 question. At this time, we will pause momentarily to assemble our roster. Your first question is from the line of Ronald Kamdem from Morgan Stanley. Your line is now open. Please go ahead.

Ronald Kamdem: Great. Just wanted to ask about the lab portfolio. Looked like occupancy picked up, as you mentioned, sequentially. And still expecting sort of an improvement in the back half of the year. I guess I am just curious as you are sort of putting it all together, with the environment, with the leasing pipeline, when do you think you will have line of sight to be able to see sort of same store inflect to the positive? Thanks.

Kelvin O. Moses: Hey, Ronald. This is Kelvin. I will start there. I mean, I think what is most important that we have been really focused on is capturing more than our share of the demand in the market and driving net absorption through the portfolio. And we have been able to do that through the first half of the year We started with 77% occupancy coming into the year. And now we are at 78.5% total occupancy. I think it is a testament to the team doing a really phenomenal job. On the ground to capture that demand. And it will certainly translate. We improved our same store guidance for lab by 200 basis points at the midpoint. that is certainly trending in the right direction. that is driven by the improvement in occupancy and just the overall health that we are seeing in the sector. So I think it is probably a little too soon to predict exactly which quarter We will see that inflection, but we are certainly trending in the right direction.

Scott Brinker: Hey, Ronald. I just want to add same store is less relevant. The real key is total occupancy and moving NOI in that segment higher. that is what generates earnings growth and ultimately share price. So that is all we talk about internally. that is the number we are reporting on. We report same store because we have to. that is not the number we focus on. The key is we are growing total occupancy. And that is gonna grow total NOI and ultimate earnings. So we are making progress already. In the first half of this year. Next question.

Operator: Your next question comes from the line of Juan Sanabria from BMO Capital Markets. Your line is now open. Please go ahead.

Juan Sanabria: Hi. Good morning, and thanks for the time. I appreciate how succinct the prepared remarks were. Just on the lab and the competitive environment for leasing, you obviously have different players out there with different motivations highly motivated to push up leasing as you guys are. But just curious if anything has changed with regards to the rate environment, free rent, build out costs, etcetera, and maybe as part of that, if you can comment on any changes in the size of tenants out there small, medium, large, and where the improvements have been? Hey, Juan.

Kelvin O. Moses: This is Kelvin. I will start there. What I would say is the pipeline continues to be fairly robust. We have seen since September 2025, demand just continue in the portfolio. We have had a 2 million-square-foot leasing pipeline and we have been capturing that demand and translating it into LOIs and leases. So as of the earnings call, have 500 thousand square feet under LOI, which is within our 2 million square feet of pipeline And I would say that the characteristics of that pipeline has not changed dramatically. it is disproportionately wet lab space. it is biotech tenants that are really attracted to core assets and core locations. So we are certainly a recipient of all of the positive momentum we have seen in the biotech sector. From a rates and concession standpoint I would say that the rates continue to be in line generally with our portfolio Free rent has trended to be 1 month per year up to 2 months per year of lease term. And that is been fairly consistent So it is really it is use dependent. it is a condition of the quality of the space, how much capital needs to be invested that is really driving the economics around these deals. And each situation is fairly unique. But most importantly, our portfolio can accommodate a wide variety of uses and we have seen the benefit of that in our results We have had fairly low capital deployed to capture that occupancy. Just given the quality of our spaces for second generation leases. And in certain instances where we have redevelopments, CapEx could be more elevated as we have to, you know, improve spaces that had been occupied for multiple decades by a single tenant. So I think the pipeline continues to be strong, and the team's doing a phenomenal job converting Hey, Juan.

Scott Brinker: This is Scott. The only thing I would add on that, too, is that from a size perspective, we have seen more in that 25 thousand to 75 thousand-square-foot range. You know, both in the in the executions as well as the you know, the LOI and pipeline bucket. So, you know, I think that size range is normalizing as we see the funding environment continue to improve.

Operator: Next question is from the line of John Pawlowski from Wells Fargo. Your line is now open. Please go ahead.

John Pawlowski: Good morning. Scott, in the opening remarks, you talked about the outlook for lab being more attractive here. I am curious, are we getting back into an environment where the distressed lab opportunity is looking more attractive to you and what is the opportunity set today there?

Scott Brinker: Yeah. The building blocks for the sector recovery are definitely there. And we are starting to translate that into leasing pipeline and leasing growing occupancy. So things are definitely getting better. Obviously, there was some work that needed to be done with vacancy, so it is not gonna happen overnight, but the trajectory is clearly positive. Think the incumbents like Healthpeak are definitely capturing market share. So we are focused on core markets, buildings we want to own long term, and particularly situations where we think our platform can bring something to the table. And lease up a building that is otherwise not doing very well. So I think we have got the team and the balance sheet and the credibility to do all those things. The pipeline is active. It may end up that we are not doing anything. We will see. These deals take time to play out. Sometimes they are quite complicated. Lenders involved, etcetera. But we are working on a number of situations. We obviously did the 1 at Gateway over the New Year. it is doing phenomenally well. Scott and Natalia and the team are leasing it up, signed something like 125 thousand feet of leases and LOIs since that purchase and active discussions on another 200 thousand feet or so. Like, really making good progress on that at a great basis. So hopefully, it is situations like that we are focused on core submarket, in a situation where we can really add value with our platform and balance sheet and relationships. So we are working on a number of them, but no promises that any of them get done. But I think we will end up being a consolidator over the next 24 months, which should prove to be a great time to grow the portfolio.

Operator: Your next question? Your next question is from the line of Austin Wurschmidt from KeyBanc Capital Markets. Your line is now open. Please go ahead.

Austin Wurschmidt: Thanks. Good morning, everybody. Kelvin, I think you had said that about 30% of the new leasing in the second quarter was for vacant space. I am just wondering if you can give us some sense about the difference between leased versus occupied today and how that is trended versus last quarter and what the commencement schedule looks like, across those leases that have been signed and are expected to take occupancy over the next 6 months or so? Thanks.

Kelvin O. Moses: Yeah. Thanks, Austin, for that question. Without giving very specific guidance, in terms of occupancy in the 4 quarters, what I could simply say is that we have commencements in the back half of the year that exceed our expirations. And we continue to expect a modest improvement in total occupancy for the lab portfolio. We have talked about the pipeline. It continues to be healthy. And these leases have the potential to commence starting in 2026 that are within our LOI bucket. I would not say it is a substantial share of that 500 thousand square feet that we mentioned, but we do have the potential for some of our recent executions to benefit 2026 and into 2027 So we continue to focus on just capturing demand. We are only midway through the year, so there is plenty of time, no pressure on the team here to go out there and further improve the conversion of that pipeline. That will drive incremental occupancy into 2027.

Operator: Your next question is from the line of Seth Bergey from Citi. Your line is now open. Please go ahead.

Seth Bergey: Hi. Good morning. Thanks for taking my question. It sounds like the level of activity in the market and has certainly improved, and you are seeing more tenants I am just wondering how that conversion timeline has changed just given the amount of available lab space? Are you seeing a pickup between when tenants come to market and getting across that finish line of signing a lease?

Scott R. Bohn: Sure, Seth. it is Scott Bohn. I mean, we are still in an environment where folks are a little cautious. Right? I mean, there is still a little bit of scar tissue out there, so I think people in groups are taking their time and doing the diligence they need to do, which they should, in a lease process. So, you know, from initial tour to execution, you are depending on the deal, it could be 3 months. It could be 9 months. Right? there is a lot of factors at play, you know, size, organization, things like that. But it is been relatively consistent. I would say, over the past, 12 months.

Operator: Your next question is from the line of Connor Mitchell from UBS. Your line is now open. Please go ahead.

Connor Mitchell: Hey. Good morning. Thanks for taking my question. Guys mentioned some CapEx that is required for second generation leasing or space that is been occupied and now turning over. Can you just expand on that a bit? Maybe how much CapEx we should expect over the near or medium term just based on the known move outs and the leasing pipeline?

Kelvin O. Moses: Hey, Connor. This is Kelvin. I will start there. What I would say is, generally speaking, as you look through the available space in our portfolio, we have done a great job over the years of investing capital and preparing for these second generation leases. So we have done a great job keeping capital cost low to obtain the occupancy that we have been able to achieve. So I think on our redevelopment assets, in certain instances, you will see a more elevated capital need to get spaces that were occupied for multiple decades by a single tenant to be prepared for multi tenant occupancy or to, you know, be modernized for the current user's requirements. So those spaces will require some elevated capital But generally speaking, with our availabilities, you know, we are we are looking at pretty modest capital cost. Across the board to get tenants in. We do not have much space in our portfolio that needs to be built out from Shell. I think that is a huge advantage, both from a timing standpoint of getting a tenant to occupancy, but also from