Healthcare Realty Trust (HR) Q4 2025 earnings summary

Executive summary

• 2025 was a transformational year with a revamped leadership team, improved asset management, and a focus on long-term shareholder value, including new CEO and CFO appointments.

• Completed $1.2 billion in asset sales, exited 14 non-core markets, and refined the core portfolio.

• Strengthened balance sheet, reduced leverage, and implemented $10 million in annual G&A cost savings.

• Dividend was right-sized, now well-covered and yielding nearly 6%.

• Board streamlined to seven members, enhancing governance and strategic direction.

Financial highlights

• Full year 2025: Normalized FFO of $1.61 per share, NAREIT FFO of $1.38, GAAP net loss of $0.71 per share, and FAD of $448.3 million (87% payout ratio).

• Q4 2025: Normalized FFO per share of $0.40, NAREIT FFO of $0.36, GAAP net income of $0.04 per share, and FAD of $113.9 million (75% payout ratio).

• Same-store NOI growth was 4.8% for 2025, with Q4 same-store cash NOI growth of 5.5%.

• Property NOI margins improved by 60 basis points; G&A expense reduced to $45 million.

• Net debt to adjusted EBITDA improved to 5.4x at year-end, down from 6.1x prior year.

Outlook and guidance

• 2026 guidance: Normalized FFO per share of $1.58–$1.64 (midpoint $1.61), NAREIT FFO per share of $1.44–$1.50, EPS between $(0.05) and $0.05, and same-store cash NOI growth of 3.5%–4.5%.

• G&A projected between $43 million and $47 million; maintenance capex for 2026 guided at $105–$125 million.

• Guidance assumes no additional acquisitions, developments, or share repurchases beyond those already executed.

• Full-year leverage expected in the mid-5x net debt to EBITDA range.

• Quarterly dividend of $0.24 per share approved for March 2026.