Outpatient Medical Sector Growth
The outpatient medical sector has shown strong performance, with leasing volumes totaling 3.2 million square feet year-to-date, and occupancy up 10 basis points to 91%. New leasing for Q3 was the highest in the company's history, with positive cash re-leasing spreads of 5.4%.
CCRC Business Performance
The Continuing Care Retirement Community (CCRC) business is performing well, with NOI up more than 50% since acquiring the remaining interest in the portfolio six years ago. Sequential occupancy was up 70 basis points, and cash NOI increased by 9.4% for the quarter.
Technology and Efficiency Gains
Healthpeak has advanced its strategic plan to enhance capabilities as an AI-enabled real estate owner. G&A expenses are projected at $90 million, less than five years ago despite inflation and a $5 billion merger.
Balance Sheet and Liquidity
Issued $500 million in senior unsecured notes at 4.75%, one of the tightest investment-grade REIT 7-year spreads year-to-date, ending the quarter with $2.7 billion in liquidity.