Janus Living (JAN) is expected to deliver strong growth, supported by its 100% senior housing operating portfolio, or SHOP, and "better external" growth opportunities, leading to "high-teens" earnings growth over the next three years, RBC Capital Markets said in a report Tuesday.

While peer, pure-play real estate investment trusts typically hold a median of 72% in SHOP, "[Janus] will be the first REIT with 100% SHOP concentration including 73% life plan communities and 27% traditional SHOP," RBC said.

The portfolio is anchored by "life plan communities," which offer stable growth due to younger, healthier residents and longer-than-average stays, the report said.

Looking ahead, the firm expects Janus to deploy its excess liquidity into $750 million worth of new deals through early 2027, followed by a $600 million annual acquisition run-rate. The strategy targets a "best fundamental outlook" for the senior housing sector, according to the report.

RBC initiated coverage on Janus Living with an Outperform rating and a $27 price target.

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