1Q Execution Rewarded in Valuation Re-Rate; Moving to In Line, $21 PT

Research evidence excerpt

1Q Execution Rewarded in Valuation Re-Rate; Moving to In Line, $21 PT

May 11, 2026

1Q Operational, Strategic Initiative, & Financial Updates:

◼ Strategic Initiatives Recap: The previously detailed spin-out of Janus Living (JAN) - thoughts here and here) -

and the December/January opportunistic lab investment in South San Francisco (our take here) constitute

intermediate to long-term constructive strategic moves, in our view. These marquee transactions set the stage

for 2026, complemented by other activity summarized below. In short, DOC has already accomplished much of

its FY26 investment ambitions and will likely capture $1bn+/- of capital recycling (including loan repayments)

across the year which we have incorporated in our model.

Given DOC’s 81.6% retained ownership of Janus (JAN), the senior housing company’s financials are consolidated

into DOC’s quarterly results. JAN’s external growth/spread investing potential (leveraging of its competitive cost

of capital and post IPO cash on hand of $950mn) has yet to manifest as Janus just listed in mid-March. Over

time, we anticipate JAN’s external investment volume will be meaningful and contribute to DOC’s overall earnings

profile given its high retained ownership.

◼ Recent Acquisitions/Investments/Dispositions: DOC’s investing and capital recycling volume was elevated in

4Q and lapping into early 2026. The key transactions are summarized below.

a. In January 2026, DOC acquired its JV partner’s 46.5% interest in the previously unconsolidated JV, which held

a portfolio of 19 senior housing communities, for $314mn. The low 80s% occupied portfolio embeds

operational upside. DOC transitioned the management contracts from Brookdale (NYSE: BKD, Rated) to

Pegasus Senior Living and Ciel Senior Living.