Janus Living (JAN) is a pure-play senior housing real estate investment trust, with a "compelling" growth story driven by strategic acquisitions and efficient scaling, Morgan Stanley said in a note Tuesday.

The firm said after its initial public offering in March, which raised $878 million, Janus is in a strong financial position to grow. It has already used these proceeds to acquire full ownership stakes in some properties and purchase additional communities.

The company is externally managed by Healthpeak Investment Management, which still holds a large ownership share. "This ownership stake meaningfully aligns capital allocation and growth decisions with long-term shareholder value creation," the bank added.

Janus is projected to grow funds from operations per share by around 18% annually in 2026 and 2027, driven by its smaller asset base and about $674 million of acquisitions completed while its Life Plan communities remain crucial to its initial portfolio, the firm said.

Morgan Stanley initiated Janus Living at overweight with a $28 price target.

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