Healthcare Realty Reports Fourth Quarter 2025 Results

Rhea-AI Summary

Healthcare Realty (NYSE:HR) reported Q4 2025 results and provided 2026 guidance. Q4 GAAP net income was $0.04 per share, NAREIT FFO was $0.36 per share, Normalized FFO $0.40, and FAD totaled $113.9M (75% payout). Full-year 2025 Normalized FFO was $1.61. The company completed $1.2B of asset sales, reduced Net Debt/Adjusted EBITDA to 5.4x, repaid significant debt, authorized a $0.24 dividend and established a $600M commercial paper program.

Positive

• Completed $1.2 billion of asset sales through 34 transactions
• Net Debt to Adjusted EBITDA improved to 5.4x from 6.1x
• Repaid approximately $900 million of term loans and senior notes
• Declared $0.24 per share dividend payable March 11, 2026
• Established inaugural $600 million commercial paper program
• Repurchased 2.9 million shares for $50 million in January 2026

Negative

• Full-year GAAP net loss of $0.71 per share in 2025
• FAD payout ratio of 87% for full-year 2025
• Leverage remains elevated at Net Debt to Adjusted EBITDA of 5.4x

Key Figures

Q4 2025 GAAP EPS: $0.04 per share Q4 2025 NAREIT FFO: $0.36 per share Q4 2025 Normalized FFO: $0.40 per share +5 more

8 metrics

Q4 2025 GAAP EPS $0.04 per share Fourth quarter 2025 GAAP net income

Q4 2025 NAREIT FFO $0.36 per share Fourth quarter 2025 NAREIT FFO, diluted

Q4 2025 Normalized FFO $0.40 per share Fourth quarter 2025 Normalized FFO, diluted

Q4 2025 FAD $113.9M (75% payout) Fourth quarter 2025 Funds Available for Distribution and payout ratio

2025 GAAP EPS ($0.71) per share Full year 2025 GAAP net loss per share

2025 Normalized FFO $1.61 per share Full year 2025 Normalized FFO per share

2025 Same Store Cash NOI +4.8% growth Full year 2025 same store cash NOI growth

Asset sales 2025–Feb 2026 $1.2 billion Dispositions during 2025 and through February 2026

Market Reality Check

Price: $17.49 Vol: Volume 5,232,911 is 35% a...

normal vol

$17.49 Last Close

Volume Volume 5,232,911 is 35% above the 20-day average of 3,877,876, signaling elevated interest into earnings. normal

Technical Shares at $17.39 are trading above the 200-day MA $16.77 and sit about 8.33% below the 52-week high.

Peers on Argus

HR gained 0.17% with strong earnings detail. Key healthcare REIT peers were also...

HR gained 0.17% with strong earnings detail. Key healthcare REIT peers were also positive (e.g., CTRE +1.05%, SBRA +1.87%, NHI +1.86%), and CTRE/SBRA reported earnings, but no momentum scanner signal suggests a stock-specific reaction.

Common Catalyst Multiple healthcare REITs, including CTRE and SBRA, reported earnings and 2026 guidance, framing HR’s release within a broader earnings cycle for the subsector.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Q3 2025 earnings	Positive	-0.2%	Improved NOI, asset sales and raised 2025 guidance with stronger metrics.
Jul 31	Q2 2025 earnings	Neutral	+7.7%	Higher NOI and guidance alongside restructuring and a dividend reduction.
Oct 30	Q3 2024 earnings	Neutral	-2.8%	Net loss offset by rising Normalized FFO and steady dividend guidance.
Aug 02	Q2 2024 earnings	Positive	+2.1%	JV and asset sales, buybacks and solid Same Store NOI growth supported FFO.
May 07	Q1 2024 earnings	Neutral	+2.8%	Large loss but new JV, transactions and repurchases shaped the outlook.

Pattern Detected

Earnings releases have generally produced modest moves, with one notable positive reaction when guidance and restructuring steps were emphasized.

Recent Company History

Over the last few earnings cycles, Healthcare Realty emphasized portfolio optimization, asset sales, and balance sheet repair. Prior updates highlighted rising same-store cash NOI, improved occupancy, and leverage trending toward 5.4x–5.7x Net Debt/EBITDA, along with dividend reset actions. Today’s Q4 and full-year 2025 results continue that theme with higher same-store growth, sizable $1.2 billion dispositions, governance changes, and detailed 2026 FFO and NOI guidance, extending the operational and capital allocation narrative.

Historical Comparison

earnings

+1.9 %

Average Historical Move

Historical Analysis

Past earnings releases for HR moved the stock about 1.91% on average. Today’s 0.17% change looks comparatively muted versus those prior reactions.

Typical Pattern

Earnings releases since early 2024 trace a shift toward portfolio pruning, higher same-store cash NOI, and leverage reduction, with 2025 results and 2026 guidance extending that earnings-led balance sheet improvement storyline.

Market Pulse Summary

This announcement outlines a year of portfolio pruning, stronger same-store cash NOI, and sizable $1...

Analysis

This announcement outlines a year of portfolio pruning, stronger same-store cash NOI, and sizable $1.2 billion asset sales that brought Net Debt to Adjusted EBITDA to 5.4x. Investors may focus on the balance between persistent GAAP losses and solid Normalized FFO of $1.61 per share, the sustainability of the $0.24 dividend, and execution against 2026 FFO and 3.5–4.5% same-store NOI growth guidance.

Key Terms

nareit ffo, normalized ffo, fad, noi, +4 more

8 terms

nareit ffo financial

"GAAP Net Income of $0.04 per share, NAREIT FFO of $0.36 per share"

NAREIT FFO is a standardized measure of operating performance for real estate companies that starts with net income, removes gains or losses from property sales, and adds back depreciation and amortization tied to real estate. Investors use it like a clearer view of recurring cash-earning ability—similar to checking a store’s everyday sales rather than one‑time clearance events—so it helps compare profitability and dividend capacity across property firms.

normalized ffo financial

"NAREIT FFO of $0.36 per share, Normalized FFO of $0.40 per share"

Normalized FFO is a cash-focused measure of a real estate company's recurring operating performance, adjusted to remove one-time gains, losses, or unusual items so results reflect what the business typically earns. Think of it like reporting a restaurant’s average monthly sales after removing a single big catering event or a rare repair bill: it gives investors a clearer, apples-to-apples view of ongoing cash generation used to pay dividends and value the company.

fad financial

"Normalized FFO of $0.40 per share, and FAD of $113.9 million"

A fad is a short-lived surge in attention or popularity for a product, idea, sector, or investment that spreads quickly but fades just as fast—like a toy or fashion item that everyone wants for a season and then forgets. For investors, fads matter because they can drive rapid price spikes and elevated expectations that aren’t supported by lasting demand or fundamentals, creating heightened risk of sharp declines when the trend ends.

noi financial

"Same store cash NOI growth of +5.5% was driven by tenant retention"

Net operating income (NOI) is the total profit a business makes from its core operations, after subtracting expenses directly related to running the business but before accounting for taxes, interest, or investments. It shows how well the company’s main activities generate earnings and helps investors assess its financial health and profitability without the influence of external factors. Think of it as the money a store earns from sales minus the costs to keep it open.

basis points financial

"was driven by 103 basis points in occupancy gain and tenant retention"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

cap rate financial

"through 34 separate transactions at a blended cap rate of 6.7%"

The cap rate is a way to estimate how much money a real estate investment might generate relative to its purchase price. Think of it as a measure of the property's annual income divided by its value, helping investors compare different properties quickly. A higher cap rate generally indicates a potentially higher return but may also come with more risk.

commercial paper program financial

"announced the establishment of its inaugural commercial paper program, with a total size"

A commercial paper program is a formal way a company issues very short-term IOUs to raise quick cash, typically for days to months, without using a bank loan. Investors care because it shows how the company manages short-term funding and how trustworthy it appears—like watching whether someone keeps using and repaying a credit card; frequent use or higher costs can signal cash strain, while smooth issuance suggests healthy liquidity.

operating partnership units financial

"eligible holders of operating partnership units will receive a distribution of $0.24 per unit"

Operating partnership units are ownership stakes in a limited partnership that typically sits under a real estate investment trust or similar corporate structure; each unit represents a claim on the partnership’s cash flow and assets and is often convertible into the parent company’s common shares. For investors, these units matter because they convey economic interest and potential voting influence, can be used to compensate managers, and may dilute or change the value of common shares — think of them as second-layer shares that interact with the main stock like shares in a holding company.

AI-generated analysis. Not financial advice.

NASHVILLE, Tenn., Feb. 12, 2026 (GLOBE NEWSWIRE) -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the fourth quarter ended December 31, 2025 and introduced full year 2026 guidance.

“2025 represented a transformational year for Healthcare Realty,” commented Peter Scott, the Company’s President and Chief Executive Officer. “Our operational team delivered same-store growth that continues to exceed historical levels while our transactions team exceeded targets with $1.2 billion in dispositions at attractive pricing levels. We are encouraged by secular long-term trends driving demand for outpatient medical services, tenant space and assets across the country. We have strategically strengthened our corporate governance, leadership team and balance sheet over the past nine months, and I would like to thank the entire Healthcare Realty team for their strong efforts as we position the Company for sustainable long-term growth.”

FOURTH QUARTER 2025 HIGHLIGHTS

• GAAP Net Income of $0.04 per share, NAREIT FFO of $0.36 per share, Normalized FFO of $0.40 per share, and FAD of $113.9 million (payout ratio of 75%)
• Same store cash NOI growth of +5.5% was driven by tenant retention of 82.7% with +3.7% cash leasing spreads
• Fourth quarter lease executions totaled 1.5 million square feet including 316,000 square feet of new lease executions
  • Sequential lease up of over 500 bps in redevelopment projects versus prior quarter
  • Significant leasing momentum in early 2026 with nearly 1 million square feet of new and renewal leases executed year-to-date
• During the fourth quarter and through February, completed asset sales of $682 million, inclusive of one transaction expected to close later this month
• Net Debt to Adjusted EBITDA of 5.4x
• In December, Moody's Investors Service revised outlook to Stable and affirmed a Baa2 credit rating

FULL YEAR 2025 HIGHLIGHTS

• GAAP Net Loss of $0.71 per share, NAREIT FFO of $1.38 per share, Normalized FFO of $1.61 per share, and FAD of $448.3 million (payout ratio of 87%)
• Same store cash NOI growth of +4.8% was driven by 103 basis points in occupancy gain and tenant retention of 81.5% with +3.1% cash leasing spreads
• Full year lease executions totaled approximately 5.8 million square feet including 1.6 million square feet of new lease executions
• During 2025 and through February 2026, completed asset sales of $1.2 billion, inclusive of one transaction expected to close later this month, through 34 separate transactions at a blended cap rate of 6.7%
• Net Debt to Adjusted EBITDA was 5.4x at December 31, 2025, down from 6.1x at prior year end
• Repaid approximately $650 million of term loans and $250 million of senior notes. Extended $1.5 billion revolver to mature in July 2030 (inclusive of extension options) and added 1 to 2 years of additional extension options on outstanding term loans
• Reduced run-rate G&A expense by $10 million through cost saving implementations
• Appointed Peter Scott as President & Chief Executive Officer, Daniel Gabbay as Chief Financial Officer and supplemented leadership team with experienced industry executives

FOURTH QUARTER AND FULL YEAR 2025 RESULTS

	THREE MONTHS ENDED													YEAR ENDED
	DECEMBER 31, 2025						DECEMBER 31, 2024							DECEMBER 31, 2025						DECEMBER 31, 2024
(in thousands, except per share amounts)	AMOUNT			PER SHARE			AMOUNT			PER SHARE				AMOUNT			PER SHARE			AMOUNT			PER SHARE
GAAP Net income (loss)	$	14,391		$	0.04		$	(106,846	)	$	(0.31	)		$	(246,071	)	$	(0.71	)	$	(654,485	)	$	(1.81	)
NAREIT FFO, diluted	$	126,981		$	0.36		$	105,642		$	0.30			$	490,048		$	1.38		$	193,257		$	0.52
Normalized FFO, diluted	$	142,147		$	0.40		$	143,414		$	0.40			$	568,946		$	1.61		$	576,785		$	1.56

LEASING ACTIVITY

During the fourth quarter, the Company executed 292 new and renewal leases for 1.5 million square feet with a weighted average lease term of 6.2 years and average annual escalators of 3.0%.

Key leasing highlights:

• Memphis, TN. 166,000 square feet of renewals with our health system partner, Baptist Memorial Health, maintaining 100% occupancy across four on-campus medical office buildings
• Austin, TX. 92,100 square feet of renewals with Baylor Scott & White Health in two fully occupied on-campus assets
• Hartford, CT. 65,500 square feet of new leases with Hartford Health (A rated) expanding our existing relationship, which also resulted in a substantial credit upgrade from the former tenant, Prospect Health
• Charlotte, NC. 15,500 square foot new lease with a leading multi-specialty healthcare provider aligned with Novant Health

CAPITAL ALLOCATION

Dispositions

During the fourth quarter and through February, the Company successfully completed most of its previously identified dispositions for a total of $682 million, inclusive of one transaction expected to close later this month. A summary of the significant sale transactions is as follows:

• Portfolio Sale/Various Markets. Completed strategic market exits of the El Paso, TX; Des Moines, IA; Fort Wayne, IN; Cincinnati, OH; Salt Lake City, UT; Las Vegas, NV; and Kokomo, IN MSAs with the sale of a 25-property portfolio for $348.9 million to a single private purchaser, reducing exposure to non-priority markets and further refining the Company's core operating portfolio
• Phoenix, AZ. Disposed of two unaffiliated, off-campus properties to private market purchasers for $27.5 million. One asset was fully vacant at the time of the sale
• Atlanta, GA. Opportunistic sale of one fully stabilized asset to the affiliated health system at a premium valuation of $21.9 million
• Jacksonville, FL. Completed strategic market exit of the Jacksonville, FL MSA with the $18.6 million sale of two fully-leased MOBs at attractive market pricing

Development and Redevelopment

During the fourth quarter, the Company added five new redevelopments and made significant progress on its development and redevelopment pipeline, advancing several key projects across major markets. Highlights of new projects commenced include:

• Houston, TX. Part of a two-MOB cluster in the growing Clear Lake submarket located between two major hospitals, HCA Houston Clear Lake and Houston Methodist Clear Lake. The $10.4 million redevelopment will transform the large user space layouts into modern, multi-tenant clinical suites
• Denver, CO. A two-MOB cluster located in a rapidly growing submarket between UC Highlands Ranch hospital and Advent Health Littleton hospital. The $10.2 million redevelopment project will modernize the properties and deliver an expected return on investment through lease up of 31,000 square feet at strong rental rates

Balance Sheet

• Debt paydown from asset sales reduced Net Debt to Adjusted EBITDA to 5.4x. At year-end, the Company has approximately $1.4 billion of liquidity on the line of credit and cash on hand
• In the fourth quarter, the Company fully repaid $542 million of term loans due in 2027
• In January 2026, the Company repurchased 2.9 million shares of its common stock at an average price of $17.27 per share for a total of $50 million
• In addition, on February 12, 2026, Healthcare Realty announced the establishment of its inaugural commercial paper program, with a total size of up to $600 million, further diversifying the Company’s range of financing alternatives

DIVIDEND

The Board unanimously approved a common stock dividend in the amount of $0.24 per share to be paid on March 11, 2026, to Class A common stockholders of record on February 24, 2026. Additionally, the eligible holders of operating partnership units will receive a distribution of $0.24 per unit, equivalent to the Company's Class A common stock dividend.

GUIDANCE

The Company's 2026 per share estimated guidance ranges are as follows:

	ACTUAL			2026 GUIDANCE
		2025		LOW			HIGH
Earnings per share	$	(0.71	)	$	(0.05	)	$	0.05
NAREIT FFO per share	$	1.38		$	1.44		$	1.50
Normalized FFO per share	$	1.61		$	1.58		$	1.64
Same Store Cash NOI growth		4.8	%		3.5	%		4.5	%

The 2026 annual guidance range reflects the Company's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, and operating and general and administrative expenses. The Company's guidance does not contemplate impacts from gains or losses from dispositions, potential impairments, or debt extinguishment costs, if any. The Company's guidance also does not include any future acquisitions, developments or share issuances or repurchases, other than as discussed in the detailed guidance assumptions on page 30 of the 4Q 2025 Supplemental. There can be no assurance that the Company's actual results will not be materially higher or lower than these expectations. If actual results or timing vary from these assumptions, the Company's expectations may change. See page 30 of the 4Q 2025 Supplemental for additional details and assumptions.

EARNINGS CALL

On Friday, February 13, 2026, at 9:00 a.m. Eastern Time, Healthcare Realty Trust has scheduled a conference call to discuss earnings results, quarterly activities, general operations of the Company and industry trends.

Simultaneously, a webcast of the conference call will be available to interested parties at https://investors.healthcarerealty.com/corporate-profile/webcasts under the Investor Relations section. A webcast replay will be available following the call at the same address.

Live Conference Call Access Details:

• Domestic Dial-In Number: +1 800-715-9871 access code 4950066
• All Other Locations: +1 646-307-1963 access code 4950066

Replay Information:

• Domestic Dial-In Number: +1 800-770-2030 access code 4950066
• All Other Locations: +1 609-800-9909 access code 4950066

ABOUT HEALTHCARE REALTY

Healthcare Realty Trust Incorporated (NYSE: HR) is the largest public, pure-play owner, operator and developer of medical outpatient buildings in the United States.

Additional information regarding the Company, including this quarter's operations, can be found at www.healthcarerealty.com. In addition to the historical information contained within, this press release contains certain forward-looking statements with respect to the Company. Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “target,” “intend,” “plan,” “estimate,” “project,” “continue,” “should,” “could," "budget" and other comparable terms. These forward-looking statements are based on the Company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Such risks and uncertainties include, among other things, the following: the Company’s expected results may not be achieved; risks related to future opportunities and plans for the Company, including the uncertainty of expected future financial performance and results of the Company; pandemics or other health crises; increases in interest rates; the availability and cost of capital at expected rates; competition for quality assets; negative developments in the operating results or financial condition of the Company's tenants, including, but not limited to, their ability to pay rent; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to release space at similar rates as vacancies occur; the Company's ability to renew expiring leases; government regulations affecting tenants' Medicare and Medicaid reimbursement rates and operational requirements; unanticipated difficulties and/or expenditures relating to future acquisitions and developments; changes in rules or practices governing the Company's financial reporting; the Company may be required under purchase options to sell properties and may not be able to reinvest the proceeds from such sales at rates of return equal to the return received on the properties sold; uninsured or underinsured losses related to casualty or liability; the incurrence of impairment charges on its real estate properties or other assets; other legal and operational matters; and other risks and uncertainties affecting the Company, including those described from time to time under the caption “Risk Factors” and elsewhere in the Company’s filings and reports with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Moreover, other risks and uncertainties of which the Company is not currently aware may also affect the Company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this communication are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law. Stockholders and investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in the Company’s filings and reports, including, without limitation, estimates and projections regarding the performance of development projects the Company is pursuing. For a detailed discussion of the Company’s risk factors, please refer to the Company's filings with the SEC, including this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Balance Sheet

AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA

ASSETS
	4Q 2025			3Q 2025			2Q 2025			1Q 2025			4Q 2024
Real estate properties
Land	$	1,060,254		$	1,066,616		$	1,105,231		$	1,134,635		$	1,143,468
Buildings and improvements		8,514,165			8,557,270			9,199,089			9,729,912			9,707,066
Lease intangibles		455,254			504,309			567,244			631,864			664,867
Personal property		7,056			6,854			6,944			9,938			9,909
Investment in financing receivables, net		123,249			123,346			124,134			123,813			123,671
Financing lease right-of-use assets		75,083			75,462			76,574			76,958			77,343
Construction in progress		—			—			40,421			35,101			31,978
Land held for development		57,535			57,203			49,110			52,408			52,408
Total real estate investments		10,292,596			10,391,060			11,168,747			11,794,629			11,810,710
Less accumulated depreciation and amortization		(2,397,795	)		(2,381,297	)		(2,494,169	)		(2,583,819	)		(2,483,656	)
Total real estate investments, net		7,894,801			8,009,763			8,674,578			9,210,810			9,327,054
Cash and cash equivalents		26,172			43,345			25,507			25,722			68,916
Assets held for sale, net		143,580			604,747			358,207			6,635			12,897
Operating lease right-of-use assets		204,906			209,291			243,910			259,764			261,438
Investments in unconsolidated joint ventures		453,607			458,627			463,430			470,418			473,122
Other assets, net		487,795			533,874			469,940			522,920			507,496
Total assets	$	9,210,861		$	9,859,647		$	10,235,572		$	10,496,269		$	10,650,923
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND STOCKHOLDERS' EQUITY
	4Q 2025			3Q 2025			2Q 2025			1Q 2025			4Q 2024
Liabilities
Notes and bonds payable	$	3,911,423		$	4,485,706		$	4,694,391		$	4,732,618		$	4,662,771
Accounts payable and accrued liabilities		211,071			173,784			194,076			144,855			222,510
Liabilities of properties held for sale		15,160			69,808			30,278			422			1,283
Operating lease liabilities		162,922			166,231			203,678			224,117			224,499
Financing lease liabilities		73,130			72,654			73,019			72,585			72,346
Other liabilities		160,530			146,618			158,704			174,830			161,640
Total liabilities		4,534,236			5,114,801			5,354,146			5,349,427			5,345,049
Redeemable non-controlling interests		3,252			4,332			4,332			4,627			4,778
Stockholders' equity
Preferred stock, $0.01 par value; 200,000 shares authorized		—			—			—			—			—
Common stock, $0.01 par value; 1,000,000 shares authorized		3,516			3,516			3,516			3,510			3,505
Additional paid-in capital		9,137,257			9,134,486			9,129,338			9,121,269			9,118,229
Accumulated other comprehensive (loss) income		(5,174	)		(6,461	)		(9,185	)		(7,206	)		(1,168	)
Cumulative net income attributable to common stockholders		128,238			113,847			171,585			329,436			374,309
Cumulative dividends		(4,646,944	)		(4,562,454	)		(4,477,940	)		(4,368,739	)		(4,260,014	)
Total stockholders' equity		4,616,893			4,682,934			4,817,314			5,078,270			5,234,861
Non-controlling interest		56,480			57,580			59,780			63,945			66,235
Total equity		4,673,373			4,740,514			4,877,094			5,142,215			5,301,096
Total liabilities, redeemable non-controlling interests, and stockholders' equity	$	9,210,861		$	9,859,647		$	10,235,572		$	10,496,269		$	10,650,923

Statements of Income

AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA

	4Q 2025			3Q 2025			2Q 2025			1Q 2025			4Q 2024
Revenues
Rental income	$	274,731		$	287,399		$	287,070		$	288,857		$	300,065
Interest income		3,614			3,480			3,449			3,731			4,076
Other operating		7,958			6,886			6,983			6,389			5,625
		286,303			297,765			297,502			298,977			309,766
Expenses
Property operating		110,732			113,456			109,924			114,963			114,415
General and administrative		13,787			21,771			23,482			13,530			34,208
Normalizing items1		(3,469	)		(12,046	)		(10,302	)		(502	)		(22,991	)
Normalized general and administrative		10,318			9,725			13,180			13,028			11,217
Transaction costs		300			125			593			1,011			1,577
Depreciation and amortization		127,408			137,841			147,749			150,969			160,330
		252,227			273,193			281,748			280,473			310,530
Other income (expense)
Interest expense before merger-related fair value		(37,337	)		(41,927	)		(42,766	)		(44,366	)		(47,951	)
Merger-related fair value adjustment		(10,852	)		(10,715	)		(10,580	)		(10,446	)		(10,314	)
Interest expense		(48,189	)		(52,642	)		(53,346	)		(54,812	)		(58,265	)
Gain on sales of real estate properties and other assets		135,711			76,771			20,004			2,904			32,082
Loss on extinguishment of debt		(165	)		(286	)		—			—			(237	)
Impairment of real estate assets and credit loss reserves		(105,806	)		(104,362	)		(142,348	)		(12,081	)		(81,098	)
Equity (loss) income from unconsolidated joint ventures		(634	)		287			158			1			224
Interest and other (expense) income, net		(402	)		(2,884	)		(366	)		95			(154	)
		(19,485	)		(83,116	)		(175,898	)		(63,893	)		(107,448	)
Net income (loss)	$	14,591		$	(58,544	)	$	(160,144	)	$	(45,389	)	$	(108,212	)
Net (income) loss attributable to non-controlling interests		(200	)		806			2,293			516			1,366
Net income (loss) attributable to common stockholders	$	14,391		$	(57,738	)	$	(157,851	)	$	(44,873	)	$	(106,846	)
Basic earnings per common share	$	0.04		$	(0.17	)	$	(0.45	)	$	(0.13	)	$	(0.31	)
Diluted earnings per common share	$	0.04		$	(0.17	)	$	(0.45	)	$	(0.13	)	$	(0.31	)
Weighted average common shares outstanding - basic		350,052			349,964			349,628			349,539			351,560
Weighted average common shares outstanding - diluted2		350,052			349,964			349,628			349,539			351,560

1. Normalizing items primarily include restructuring, severance-related costs and non-routine advisory fees associated with shareholder engagement.
2. Potential common shares are not included in the computation of diluted earnings per share when a loss exists (or when dividends paid are greater than income), as the effect would be an antidilutive per share amount. As a result, the outstanding limited partnership units in the Company's operating partnership ("OP"), totaling 4,280,972 units were not included.
   
   

FFO, Normalized FFO and FAD 1,2,3

AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA

	4Q 2025			3Q 2025			2Q 2025			1Q 2025			4Q 2024
Net income (loss) attributable to common stockholders	$	14,391		$	(57,738	)	$	(157,851	)	$	(44,873	)	$	(106,846	)
Net income (loss) attributable to common stockholders/diluted share3	$	0.04		$	(0.17	)	$	(0.45	)	$	(0.13	)	$	(0.31	)
Gain on sales of real estate assets		(135,711	)		(76,771	)		(20,004	)		(2,904	)		(32,082	)
Impairments of real estate assets		105,706			104,362			140,877			10,145			75,423
Real estate depreciation and amortization		134,736			143,187			152,936			155,288			164,656
Non-controlling income (loss) from operating partnership units		200			(806	)		(2,293	)		(599	)		(1,422	)
Unconsolidated JV depreciation, amortization and impairment		7,659			6,688			6,706			6,717			5,913
FFO adjustments	$	112,590		$	176,660		$	278,222		$	168,647		$	212,488
FFO adjustments per common share - diluted	$	0.32		$	0.50		$	0.79		$	0.48		$	0.60
NAREIT FFO	$	126,981		$	118,922		$	120,371		$	123,774		$	105,642
NAREIT FFO per common share - diluted	$	0.36		$	0.34		$	0.34		$	0.35		$	0.30
Transaction costs		300			125			593			1,011			1,577
Lease intangible amortization		(698	)		(203	)		(222	)		(228	)		(2,348	)
Non-routine tax and legal matters		(682	)		9			478			77			306
Debt financing costs4		1,614			3,493			—			—			237
Restructuring and severance-related charges		3,469			12,046			10,302			502			22,991
Credit losses and (gains) losses on other assets, net		100			—			1,471			1,936			4,582
Merger-related fair value adjustment		10,852			10,715			10,580			10,446			10,314
Unconsolidated JV normalizing items5		211			233			163			204			113
Normalized FFO adjustments	$	15,166		$	26,418		$	23,365		$	13,948		$	37,772
Normalized FFO adjustments per common share - diluted	$	0.04		$	0.07		$	0.07		$	0.04		$	0.11
Normalized FFO	$	142,147		$	145,340		$	143,736		$	137,722		$	143,414
Normalized FFO per common share - diluted	$	0.40		$	0.41		$	0.41		$	0.39		$	0.40
Non-real estate depreciation and amortization		2,522			1,139			1,184			1,269			1,385
Non-cash interest amortization, net6		1,396			1,384			1,130			1,217			1,239
Rent reserves, net		582			146			130			94			(369	)
Straight-line amortization, net		(6,554	)		(6,924	)		(8,022	)		(7,891	)		(8,032	)
Stock-based compensation		3,308			3,386			3,887			3,028			3,028
Unconsolidated JV non-cash items7		(348	)		(463	)		(356	)		(253	)		(277	)
Normalized FFO adjusted for non-cash items	$	143,053		$	144,008		$	141,689		$	135,186		$	140,388
2nd generation TI		(11,120	)		(9,398	)		(12,036	)		(14,885	)		(20,003	)
Leasing commissions paid		(7,645	)		(7,438	)		(5,187	)		(11,394	)		(11,957	)
Building capital		(10,413	)		(10,319	)		(9,112	)		(6,687	)		(8,347	)
Total maintenance capex	$	(29,178	)	$	(27,155	)	$	(26,335	)	$	(32,966	)	$	(40,307	)
FAD	$	113,875		$	116,853		$	115,354		$	102,220		$	100,081
Quarterly dividends and OP distributions	$	85,506		$	85,536		$	110,486		$	109,840		$	110,808
FFO wtd avg common shares outstanding - diluted8		354,914			354,690			354,078			353,522			355,874

1. Funds from operations (“FFO”) and FFO per share are operating performance measures adopted by NAREIT. NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.”
2. FFO, Normalized FFO and Funds Available for Distribution ("FAD") do not represent cash generated from operating activities determined in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered alternatives to net income attributable to common stockholders as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity.
3. Potential common shares are not included in the computation of diluted earnings per share when a loss exists (or when dividends paid are greater than income), as the effect would be an antidilutive per share amount.
4. Includes loss on debt extinguishment, loss on derivatives, and legal fees related to the amended and restated credit facility.
5. Includes the Company's proportionate share of normalizing items related to unconsolidated joint ventures such as lease intangibles and transaction costs.
6. Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.
7. Includes the Company's proportionate share of straight-line rent, net and rent reserves, net related to unconsolidated joint ventures.
8. The Company utilizes the treasury stock method, which includes the dilutive effect of nonvested share-based awards outstanding of 581,073 for the three months ended December 31, 2025. Also includes the diluted impact of 4,280,972 OP units outstanding.
   

Reconciliation of Non-GAAP Measures

DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED

Management considers funds from operations ("FFO"), FFO per share, normalized FFO, normalized FFO per share, and funds available for distribution ("FAD") to be useful non-GAAP measures of the Company's operating performance. A non-GAAP financial measure is generally defined as one that purports to measure historical financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable measure determined in accordance with GAAP. Set forth below are descriptions of the non-GAAP financial measures management considers relevant to the Company's business and useful to investors.

The non-GAAP financial measures presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income (determined in accordance with GAAP), as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs.

FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”). NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.” The Company defines Normalized FFO as FFO excluding acquisition-related expenses, lease intangible amortization and other normalizing items that are unusual and infrequent in nature. FAD is presented by adding to Normalized FFO non-real estate depreciation and amortization, deferred financing fees amortization, share-based compensation expense and rent reserves, net; and subtracting maintenance capital expenditures, including second generation tenant improvements and leasing commissions paid and straight-line rent income, net of expense. The Company's definition of these terms may not be comparable to that of other real estate companies as they may have different methodologies for computing these amounts. FFO, Normalized FFO and FAD do not represent cash generated from operating activities determined in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity. FFO, Normalized FFO and FAD should be reviewed in connection with GAAP financial measures.

Management believes FFO, FFO per share, Normalized FFO, Normalized FFO per share, and FAD provide an understanding of the operating performance of the Company’s properties without giving effect to certain significant non-cash items, including depreciation and amortization expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. The Company believes that by excluding the effect of depreciation, amortization, gains or losses from sales of real estate, and other normalizing items that are unusual and infrequent, FFO, FFO per share, Normalized FFO, Normalized FFO per share and FAD can facilitate comparisons of operating performance between periods. The Company reports these measures because they have been observed by management to be the predominant measures used by the REIT industry and by industry analysts to evaluate REITs and because these measures are consistently reported, discussed, and compared by research analysts in their notes and publications about REITs.

Cash NOI and Same Store Cash NOI are key performance indicators. Management considers these to be supplemental measures that allow investors, analysts and Company management to measure unlevered property-level operating results. The Company defines Cash NOI as rental income plus interest from financing receivables less property operating expenses. Cash NOI excludes non-cash items such as above and below market lease intangibles, straight-line rent, lease inducements, lease termination fees, financing receivable amortization, tenant improvement amortization and leasing commission amortization. Cash NOI is historical and not necessarily indicative of future results.

Same Store Cash NOI compares Cash NOI for stabilized properties. Stabilized properties are properties that have been included in operations for the duration of the year-over-year comparison period presented. Accordingly, stabilized properties exclude properties that were recently acquired or disposed of, properties classified as held for sale, properties undergoing redevelopment, and newly redeveloped or developed properties.

The Company utilizes the redevelopment classification for properties where management has approved a change in strategic direction through the application of additional resources, including an amount of capital expenditures significantly above routine maintenance and capital improvement expenditures.

Any recently acquired property will be included in the same store pool once the Company has owned the property for five full quarters. Newly developed or redeveloped properties will be included in the same store pool five full quarters after substantial completion.

Ron Hubbard
Vice President, Investor Relations
P: 615.269.8290

FAQ

What were Healthcare Realty (HR) Q4 2025 earnings and FFO results?

Q4 2025 GAAP net income was $0.04 per share with NAREIT FFO of $0.36. According to the company, Normalized FFO was $0.40 per share and FAD totaled $113.9 million, representing a 75% FAD payout ratio.

How much in assets did Healthcare Realty (HR) sell in 2025 and through February 2026?

The company completed $1.2 billion of asset sales across 34 transactions. According to the company, dispositions included a 25-property portfolio sale for $348.9 million and additional single-asset sales.

What is Healthcare Realty's (HR) 2026 EPS and FFO guidance range?

2026 guidance ranges project EPS between $(0.05) and $0.05 and NAREIT FFO of $1.44 to $1.50. According to the company, guidance excludes gains/losses from dispositions and other nonrecurring items.

When and how much is Healthcare Realty's (HR) dividend for March 2026?

The Board approved a common dividend of $0.24 per share payable March 11, 2026 to shareholders of record February 24, 2026. According to the company, operating partnership units receive an equivalent distribution.

How did Healthcare Realty (HR) change its leverage and liquidity in Q4 2025?

Net Debt to Adjusted EBITDA improved to 5.4x from 6.1x year-over-year and liquidity is about $1.4 billion. According to the company, debt paydown and asset sales drove the improvement.

What capital actions did Healthcare Realty (HR) announce in early 2026?

In January 2026 the company repurchased 2.9 million shares for $50 million and established a $600 million commercial paper program. According to the company, these steps diversify financing and return capital to shareholders.