Public REIT valuations have lagged behind the stock market overall, but that didn't stop Healthpeak Properties from beating targets on the debut of a new senior living REIT Friday.

Janus Living outperformed expectations after its initial pubic offering on the New York Stock Exchange and opened with shares trading at $23.50, well ahead of the senior living REIT's $20-per-share target.

The IPO attracted significant interest, leading Healthpeak to boost the price target and number of shares it was offering ahead of the listing.

Strong demand pushed the price for the 42 million available shares above the target price after Janus Living distributed shares at $20 each and pulled in more than $800M in capital that the REIT plans to use on new acquisitions.

Healthpeak, itself a public REIT, is maintaining majority ownership in Janus Living, which is trading under the ticker JAN and starts with a portfolio of 34 senior housing communities. After the IPO, it will own roughly 84% of the REIT, it said in a release announcing the share pricing after markets closed Thursday.

The IPO quickly became oversubscribed after marketing began Monday, and by Wednesday, investors had been told to bid at the top of the range to secure shares, Bloomberg reported.

Healthpeak said before the IPO that most Janus Living shares would be distributed to large institutional investors and existing Healthpeak shareholders, anonymous sources told Bloomberg.

Large firms including CenterSquare Investment Management, DWS Group, MFS Investment Management and PGIM had previously expressed interest in buying up to $300M in combined shares, according to a March 16 filing with the U.S. Securities and Exchange Commission.

Healthpeak announced its plan in January to carve out its senior living holdings into a standalone REIT. Prior to the launch of Janus Living, Healthpeak’s more than 600-property portfolio included senior housing, lab space and medical office.

The firm’s life sciences exposure has dragged down its public valuation, and Healthpeak CEO Scott Brinker said in January the split would allow investors to recognize the value in its senior living platform, which spans 10,422 beds.

Senior housing is attracting growing interest from investors of all types and sizes leaning into a demographic investment thesis that the outsized and aging baby boomer population will fuel demand for the sector in the decades ahead.

New York-based alternative asset investment giant Fortress Investment Group rolled out a new fund this month that aims to tap baby boomers to raise capital through 1031 exchanges to acquire senior housing, student housing and multifamily assets.

Kayne Anderson Real Estate has pulled in at least $2.5B as part of an ongoing fund-raise targeting needs-based sectors like senior housing, medical offices and student living. An executive at Clarion Partners told Bisnow in October the investment firm plans to spend $1B per year moving forward on senior housing assets.

Transaction volume for senior living assets jumped 50% quarter-over-quarter and 30% year-over-year at the end of 2025, according to Cushman & Wakefield.

UPDATE, MARCH 20, 2:31 P.M. ET: This story has been updated with details about the Janus Living IPO.