Financial Data and Key Metrics Changes - For Q4 2025, the company reported FFO as adjusted of $0.47 per share and AFFO of $0.40 per share, with total same-store cash NOI growth of 3.9% [15] - For the full year 2025, FFO as adjusted was $1.84 per share and AFFO was $1.69 per share, with total same-store cash NOI growth of 4% [16] - The company ended the year with a net debt to adjusted EBITDA ratio of 5.2x and $2.4 billion in liquidity [19] Business Line Data and Key Metrics Changes - Outpatient medical segment represented over 50% of portfolio income, achieving 3.9% same-store growth and 91% total occupancy [3][16] - The lab segment ended the year with 1.5% same-store growth and total occupancy of 77%, impacted by the recent Gateway acquisition [17] - Senior housing segment reported 12.6% same-store growth, with 16.7% growth in Q4, driven by favorable supply and demand fundamentals [18] Market Data and Key Metrics Changes - The outpatient sector is benefiting from a shift in care delivery to lower-cost outpatient settings, supported by policy changes from CMS [4] - The Bay Area led all life science markets in Q4 2025 in absorption and leasing activity, with significant tenant demand [8] Company Strategy and Development Direction - The company is focused on strengthening its portfolio through strategic acquisitions, including the Gateway acquisition and the formation of a pure-play senior housing REIT, Janus Living [10][11] - The company plans to recycle capital through $1 billion or more in asset sales and recapitalizations in 2026 [21] - The company aims to leverage its strong market position and relationships to capture demand as the life science sector recovers [6] Management's Comments on Operating Environment and Future Outlook - Management noted an improvement in capital raising and M&A activity, indicating early signs of a recovery in the life science sector [5] - The company expects FFOs adjusted to range from $1.70 to $1.74 per share for 2026, with total same-store NOI growth forecasted between -1% to +1% [19] - Management highlighted the importance of maintaining a strong balance sheet and disciplined capital allocation to pursue strategic investments [19] Other Important Information - The company has $360 million of additional relationship-driven acquisitions in its senior housing pipeline, expected to close in Q1 2026 [12] - The company filed a confidential S-11 with the SEC for the Janus Living IPO, with expectations to close the offering in the first half of 2026 [13] Q&A Session Summary Question: Can you discuss the Gateway acquisition and its complement to the existing portfolio? - Management expressed excitement about the Gateway acquisition, viewing it as an opportunity rather than just taking on vacancy, and highlighted the strategic fit within their existing footprint [25][26] Question: What is the outlook for lab segment occupancy throughout the year? - Management indicated that total occupancy should improve by year-end 2026, contingent on continued positive trends in capital markets [28][30] Question: Can you provide details on the lab leasing activity under execution or LOI? - Management noted that the current pipeline is significantly improved compared to the previous year, with a shift towards new leasing [34][35] Question: What is the impact of lab occupancy losses on 2026 FFO? - Management clarified that the $0.12 impact on earnings is due to various factors, including occupancy losses and higher refinancing costs [41][42] Question: How is the company addressing the 2026 expirations for life science? - Management stated that a substantial majority of expirations are in South San Francisco, where they have strong tenant relationships, and they are optimistic about capturing renewals [61][62]