Healthcare Realty Trust (HR) Q3 2025 earnings summary

Executive summary

• Strategic plan execution is ahead of schedule, with strong investor engagement and a focus on exceeding a 3-year growth framework.

• Report covers Q3 2025 for a large healthcare REIT with 519 consolidated properties and $10.4 billion in gross investments, primarily in outpatient healthcare real estate across 28 states.

• Same-store NOI growth averaged 5.25% over the last two quarters, and occupancy increased by 180 basis points.

• Portfolio repositioning through $500 million in asset sales YTD, with $700 million more under contract or LOI, is nearly complete.

• No new acquisitions occurred during the period.

Financial highlights

• Normalized FFO per share rose 5% year-over-year to $0.41; same-store cash NOI growth was 5.4%.

• Q3 2025 GAAP net loss was $57.7 million, compared to a net loss of $93.0 million in Q3 2024.

• FFO for Q3 2025 was $118.9 million ($0.34/share), up from $77.3 million ($0.21/share) in Q3 2024.

• Quarterly payout ratio was 73% based on FAD per share of $0.33.

• Net debt to adjusted EBITDA fell below 6x for the first time since early 2022, now at 5.8x.

Outlook and guidance

• FFO per share guidance midpoint increased to $1.59–$1.61.

• Same-store cash NOI growth expected at 4%–4.75%; G&A guidance set at $46–$49 million.

• Margin improvement and occupancy gains are expected to continue, with a focus on organic leasing and expense controls.

• Management expects to meet liquidity needs through cash flows and a $1.4 billion undrawn credit facility.

• Guidance does not include impacts from gains/losses on dispositions or impairments.