JAN — Janus Living, Inc.

Summary of Janus Living, Inc. Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Consolidated Revenues: Increased by 45% year-over-year.
• Adjusted EBITDA: Rose by 34%.
• FFO (Funds From Operations) as Adjusted per Share: Increased by 40%.
• Same-Store Revenues: Grew by 8.4% year-over-year.
• Same-Store NOI (Net Operating Income): Increased by 19.2% year-over-year, with a margin expansion of 250 basis points.
• Occupancy Rates: Same-store occupancy increased by 10 basis points sequentially; independent living occupancy improved by 50 basis points.
• RevPOR (Revenue Per Occupied Room): Increased by 5.1% year-over-year.
• Acquisitions: Closed $1.8 billion year-to-date, with an additional $1 billion completed post-quarter end.
• Balance Sheet: $558 million in unrestricted cash and no debt, providing $1.2 billion in available liquidity.

2. Strategic Updates and Business Highlights:

• Janus Living is focused on a 100% SHOP (Senior Housing Operating Portfolio) strategy, emphasizing high-growth states with favorable business conditions.
• The company has expanded its operating partners from 2 to 10 since going public, enhancing its acquisition capabilities.
• A follow-on offering generated $690 million in net proceeds for further acquisitions.
• The company aims to double its portfolio size within the year without sacrificing asset quality or returns.

3. Forward Guidance and Outlook:

• FFO as Adjusted Guidance: Increased to a range of $0.95 to $0.98 per share, up from $0.93 to $0.97.
• Same-Store Adjusted NOI Growth Guidance: Raised by 200 basis points to a range of 13% to 17%.
• The company anticipates continued occupancy gains and improved margins as operational efficiencies are realized.

4. Bad News, Challenges, or Points of Concern:

• Seasonality Impact: Same-store NOI margins saw a sequential decline of 40 basis points due to typical seasonal labor increases and lower sales.
• Occupancy Challenges: Non-same-store portfolio occupancy was around 80.5%, reflecting ongoing lease-up challenges in 18 transition communities.
• Market Risks: The competitive landscape remains challenging, and while demand is growing, new supply could eventually impact occupancy and pricing dynamics.

5. Notable Q&A Insights:

• Operator Scaling: Management discussed the importance of diversifying operator relationships to maximize growth opportunities, emphasizing the need for high-quality partners.
• Long-term Occupancy Expectations: Management believes occupancy could reach the 90% range in the next few years, driven by strong demand and limited supply.
• Acquisition Strategy: The focus remains on high-quality, accretive deals rather than a high volume of transactions, with management expressing a disciplined approach to capital deployment.
• Transition Performance: New operators are expected to improve occupancy and NOI in recently transitioned communities, drawing parallels to past successes with other operators.
• Asset Sale Rationale: A recent asset sale with negative NOI was described as a one-off situation, with no other similar assets anticipated for sale in the near term.

Overall, Janus Living demonstrated strong financial performance in Q2 2026, with a clear strategy for growth and a robust acquisition pipeline, despite facing some operational challenges and market risks.