Senior Housing REIT Janus Living Planning IPO

Pure-play senior housing real estate investment trust Janus Living is gearing up to go public.

The Healthpeak Properties spinoff is aiming to raise up to $740 million in an IPO, Bloomberg reported. The offering could price as soon as Thursday and the stock will trade under “JAN” on the New York Stock Exchange.

The Denver-based REIT will market 37 million shares, each between $18 and $20, according to a recent Securities and Exchange Commission filing. At the high end of that range, Janus’ market value could top out near $5 billion.

CenterSquare Investment Management, DWS Group, MFS Investment Management and PGIM already agreed to purchase up to $300 million worth of shares in the aggregate at the onset of the offering. Healthpeak is expected to retain a controlling share of voting power in the REIT.

The firm invests in health-care related real estate properties. That can mean anything from senior housing to life sciences facilities, medical offices, hospitals and nursing homes.

Its initial portfolio for the IPO will comprise 34 senior housing communities across a handful of states, largely centered around Florida and Texas. The portfolio will feature both traditional rentals and continuing care retirement communities.

Senior housing was battered by pandemic-driven distress, but has recovered in recent years. After occupancy rates plunged and development halted due to the pandemic, the tide has turned.

With construction at record lows and baby boomers nearing their 80s, demand for quality senior living is surging. That has fostered merger interest as well; just days ago, Sonida Senior Living completed an acquisition of CNL Healthcare Properties in a $1.8 billion stock-and-cash deal, making it the eighth-largest senior housing company in the country.

Last year, Janus reported a net income of $6.3 million and revenue of $604 million; the prior year, the company had a net loss of $50.5 million and generated $568 million in revenue.

— Holden Walter-Warner