"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
