DOC · 10-Q · 2026Q2 · Full report
Interest Rate Environment
HEALTHPEAK PROPERTIES, INC. · 2026-08-05 · Importance 38 · Surprise 24 · In source text
Elevated interest rates and uncertainty in public and private equity and fixed-income markets increased Healthpeak’s borrowing costs and limited capital availability. These conditions adversely affected the fair value of fixed-rate instruments, transaction volume, and real estate values. The company also reported higher interest expense from $500 million of 4.75% senior unsecured notes issued in August 2025 and increased commercial paper borrowings, partly offset by debt repayments.
Key facts
- As of June 30, 2026, Healthpeak had swapped to fixed rates through interest rate swap instruments the $750 million 2029 Term Loan, the $500 million 2027 Term Loans, and the $400 million 2028 Term Loan. source
- Approximately 84% and 90% of consolidated debt was fixed rate debt as of June 30, 2026 and June 30, 2025, respectively. source
- At June 30, 2026, fixed rate debt had a weighted average effective interest rate of 4.17% and variable rate debt had a weighted average effective interest rate of 4.24%. source
- Healthpeak stated elevated interest rates have directly led to increased costs and limitations on the availability of capital and have adversely impacted borrowing costs, fair value of fixed rate instruments, transaction volume, and real estate values. source
- At June 30, 2025, fixed rate debt had a weighted average effective interest rate of 4.15% and variable rate debt had a weighted average effective interest rate of 4.90%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | unclear | realized | — | As of June 30, 2026, Healthpeak had swapped to fixed rates through interest rate swap instruments the $750 million 2029 Term Loan, the… |
| net_income | negative | contingent | — | Approximately 84% and 90% of consolidated debt was fixed rate debt as of June 30, 2026 and June 30, 2025, respectively. |