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    JAN
    Earnings call· Mar 2026(Q1 FY26)

    Janus Living Q1 FY26 earnings call JAN

    May 6, 2026 Source

    Executive summary

    Janus Living Q1 FY26 — Strong Operational Start and Robust Acquisition Pipeline

    Janus Living, a newly public Health Care REIT, reported a strong Q1 FY26 with significant revenue, EBITDA, and FFO per share growth, driven by organic performance and recent acquisitions. The company highlighted its differentiated 100% SHOP portfolio, robust acquisition pipeline, and strong balance sheet with substantial liquidity. Management expressed confidence in continued growth, leveraging its expertise and relationships in the senior housing sector.

    Highlights

    5

    • Consolidated revenue increased 35% year-over-year.

    • Adjusted EBITDA increased 42% year-over-year.

    • FFO as adjusted per share increased 35% year-over-year.

    • Same-store NOI increased 13.8% year-over-year.

    • Ended the quarter with $1.5 billion of available liquidity and no debt.

    Concerns

    3

    • Expected earnings drag from cash on the balance sheet until capital is fully deployed.

    • Housing market not "all that strong" impacting entry fees (though company outperformed).

    • First couple of months for operator transitions expected to be "a little choppy".

    Guidance & targets

    3
    CategoryTargetConfidence
    FFO as adjusted per share
    $0.93 to $0.97
    high materiality
    High
    Same-store adjusted NOI growth
    11% to 15%
    high materiality
    High
    Capital deployment for acquisitions
    $750 million
    high materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Senior Housing Operating Partnership (SHOP)
    Strong organic growth and accretion from over $700 million of senior housing acquisitions. Expects continued operating leverage as occupancy grows.
    Adjusted EBITDA growth: 42%FFO as adjusted per share growth: 35%Same-store revenues growth: 7.6% YoYSame-store expenses growth: 5.5% YoYSame-store NOI margin expansion: 150 bpsSequential occupancy growth: 110 bps
    		—35%——

    Operational metrics

    8
    Available liquidity
    $1.5 billion
    Q1 FY26

    Includes approximately $950 million of unrestricted cash and undrawn credit facilities.

    Unrestricted cash
    $950 million
    Q1 FY26

    Part of total available liquidity.

    Unsecured revolving credit facility
    $500 million
    Q1 FY26

    New facility closed.

    Unsecured delayed draw term loan facility
    $100 million
    Q1 FY26

    New facility closed, draw down period until Dec 2026.

    Initial yields on acquisitions
    low 6%
    FY26

    Expected for acquisitions in pipeline.

    Unlevered return on cost target
    7.5% or better
    null

    Target for acquisitions, even lease-up deals.

    Unlevered IRRs target
    low to mid-teens
    null

    Target for acquisitions.

    Nonrefundable percentage of entry fees
    80%+dramatically higher since 6 years ago
    null

    Increased since taking full control of portfolio, broadening the demand pool and improving cash flow.

    Industry KPIs

    7
    MetricValueDetails
    Exppor growth2.6%%
    Revpor growth4.7%%
    Senior housing occupancy88.5%%
    Revpor minus exppor spread—
    Operator tenant concentration3operators
    Same store noi growth by segment13.8%%
    Investment volume and sourcing mix$700 millionUSD

    Orderbook & backlog

    2
    Acquisitions under signed contract$400 million2026-05-06

    Expected to close on or around June 30, 2026.

    Acquisition pipelineSeveral multiples of $400 million2026-05-06

    Primarily direct deals with targeted operating partners.

    Deals & partnerships

    6
    HealthpeakInaugural IPO and spin-off transaction

    IPO generated approximately $880 million in net proceeds. Healthpeak retains a significant stake.

    Multiple sellersSenior housing acquisitions completed before IPO$700 million

    Accretive acquisitions contributing to Q1 2026 performance.

    Multiple sellersSenior housing acquisitions under signed contract$400 million

    Part of the robust acquisition pipeline, primarily rental properties.

    Former joint venture partnersAcquired partners' interest in 19 communities

    18 of 19 communities transitioned to new operators on April 1.

    Ciel and PegasusNew operators for 18 transitioned communities

    Operator transitions went smoothly, performing in line with expectations.

    3 targeted operatorsAdded new operating partners to the portfolio

    Added in the last 45 days, with 2 more under contract and several more in pipeline. Focus on integrity, culture, alignment, track record and capabilities.

    Risks & headwinds

    4
    Earnings drag from un-deployed cashFY26

    until that capital is fully deployed

    Mitigation: Deployment of $750 million in acquisitions throughout 2026.

    Housing market weaknessQ1 FY26

    housing market really not being all that strong

    Mitigation: Company's entry fee business outperformed expectations despite this.

    Choppy period for operator transitionsQ2 FY26

    expected the first couple of months to be a little choppy

    Mitigation: Transitions went smoothly and are performing better than expected; momentum expected by H2 or Q4 2026.

    Senior housing cycle not growing indefinitelyLong-term

    Nothing in real estate grows to the sky though

    Mitigation: Thoughtful and disciplined approach to partners, pricing, and promises.

    What to watch in Q2 FY26

    4

    Performance of transitioned properties

    by the second half or at least the fourth quarter of 2026
    Currentperforming in line with expectations
    Targetstart to capture some of that momentum

    Why it matters

    Indicates successful integration of new operators and realization of embedded NOI growth.

    While only a month in, the recent operator transitions are performing in line with expectations, as is performance in the other 6 communities we acquired in March. We're not expecting a big ramp-up in occupancy near term. Hopefully💬, by the second half or at least the fourth quarter of 2026, we start to capture some of that momentum.

    Q&A highlights

    6

    Details on the $400M under contract and broader pipeline (AL vs IL, cap rates, IRR), and color on record entrance fees.

    The $400M under contract is all rental, but life plan communities are also pursued. The pipeline is built on strong relationships. Entry fee performance was record-breaking for Q1, driven by strong fundamentals and capital deployment, with pricing power on high-occupancy properties.

    “The entry fee business outperformed the traditional rental business through the cycle because of higher barriers to entry and longer length of stay.”

    asked by Ronald Kamdem · answered by Scott Brinker

    2 min read6 chapters

    Detailed Narrative

    01

    IPO and Differentiated Strategy

    Janus Living completed its inaugural Q1 FY26 earnings call following a unique IPO transaction that created a differentiated company built for growth. The company is positioned as a 100% SHOP (Senior Housing Operating Partnership) REIT with a strong balance sheet, including $1 billion cash and no debt. Its portfolio primarily consists of large-scale communities with entry-fee models, which historically outperform traditional rental businesses due to higher barriers to entry and longer length of stay, offering investors access to a unique and attractive business model.

    02

    Operational Performance

    The company reported a strong operational start in Q1 FY26, exceeding forecasts for occupancy, rate, margin, and entry fees. Consolidated revenue grew 35% year-over-year, adjusted EBITDA 42%, and FFO as adjusted per share 35%. Same-store revenues increased 7.6% year-over-year, driven by 230 basis points of occupancy growth and record first quarter entrance fee sales. Same-store NOI increased 13.8% year-over-year, with margin expansion of 150 basis points.

    03

    Acquisition Pipeline and Strategy

    Janus Living has a robust acquisition pipeline, having completed over $700 million in acquisitions before the IPO and currently having $400 million under signed contract. The broader pipeline is "several multiples" of this amount, primarily direct deals with target partners. The company focuses on single assets and small portfolios in pro-business, high-growth states, preferring larger properties (over 100 units) and continuum of care models. Initial yields on acquisitions are expected to be in the low 6% range, moving towards 8% within 2-3 years, with unlevered IRRs in the low to mid-teens.

    04

    Balance Sheet and Liquidity

    The company ended Q1 FY26 with $1.5 billion of available liquidity, including approximately $950 million of unrestricted cash, and no debt. The March IPO generated $880 million in net proceeds, and Janus Living also closed on a new $500 million unsecured revolving credit facility and a $100 million unsecured delayed draw term loan facility, both of which are currently undrawn. The term loan facility can be drawn until December 2026.

    05

    Operator Transitions

    Eighteen of 19 communities acquired from a former joint venture were transitioned to new operators (Ciel and Pegasus) on April 1. These transitions went smoothly and are performing in line with expectations, positioning the communities to capture embedded occupancy and NOI growth. The non-same-store portfolio, which includes these transitioned assets, has an occupancy of approximately 82%, reflecting significant lease-up opportunities.

    06

    Entry Fee Business Performance

    The entry fee business saw record first-quarter sales, despite a generally soft housing market. The company has successfully increased the nonrefundable percentage of entry fees to over 80% since taking full control of the portfolio six years ago, which broadens the demand pool and improves cash flow. Management expects continued strong performance, especially in properties with high occupancy, where they are actively pushing entry fee pricing.

    AI-generated summary of the company’s earnings call. Not investment advice.