Janus Living Inc.: 1Q26 Model Updates

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Janus Living Inc.: 1Q26 Model Updates

Barclays | Janus Living Inc.

Earnings Call Summary & Model Updates

Strong entrance fee momentum underpins RevPOR growth, while

continued capital deployment and operator expansion drive external

growth.

On the earnings call, management highlighted that 1Q26 marked the strongest first quarter for

entrance fee sales despite a softer housing backdrop, a positive leading indicator RevPOR given

the amortization of entrance fees into future revenues. Operationally, the transition of 18

properties from Brookdale to Ciel and Pegasus is tracking in line with expectations one month

in, while the platform continues to scale, with six operators as of March 31 (up from three pre-

IPO), two additional operators under contract, and several more in the pipeline.

On capital deployment, the company expects to invest approximately $750 million in

acquisitions and $100mm in revenue-enhancing initiatives, partially deploying its $1.5 billion of

liquidity, including roughly $950mm of unrestricted cash and no debt. JAN's assumptions

include going-in cap rates in the low-6% range, stabilized yields of 8–9% within two to three

years, and unlevered IRRs in the low- to mid-teens. The current acquisition mix skews toward

rental assets focused on high-growth, low-tax markets given greater transaction liquidity. JAN

continues to pursue life plan communities and intends to shift refundable entrance fee

structures to nonrefundable over time. However, JAN sees fewer LPC opportunities given less

LPC transaction activity and liquidity than traditional rental.

Upward revisions to internal growth and a stepped-up acquisition outlook

drive higher earnings power and expanded valuation.

Internal Growth Assumptions