Healthcare Realty Trust (HR) Q3 2026 earnings summary

Executive summary

• Phase I of the multi-phase strategy is complete, Phase II is underway and Phase III is in early stages; priorities include leasing, portfolio optimization, disciplined growth and shareholder value.

• Q3 2026 Normalized FFO was $0.42 per diluted share, and Same Store Cash NOI grew 5.1%.

• Q3 same-store occupancy was 93.1%, tenant retention was 88.0%, and cash leasing spreads averaged 8.6%.

• Portfolio included 560 properties and 33M owned sq. ft.; 90% of properties were in the top 50 MSAs.

Financial highlights

• Q3 revenue was $286.6M versus $297.8M in Q3 2025; 9M revenue was $847.5M versus $894.2M.

• Q3 net loss was $15.9M versus $58.5M; net loss attributable to common stockholders was $15.8M versus $57.7M.

• Q3 NAREIT FFO was $131.7M, or $0.38 per diluted share, versus $118.9M, or $0.34; Normalized FFO was $145.9M, or $0.42, versus $145.3M, or $0.41.

• Q3 real estate impairments were $16.2M versus $104.4M; gains on sales were $2.5M versus $76.8M.

• Q3 FAD was $110.2M; quarterly dividends and OP distributions were $83.3M, a 76% payout ratio.

Outlook and guidance

• 2026 Normalized FFO guidance rose to $1.65–$1.67 per diluted share from $1.62–$1.66; midpoint increased $0.02 from July guidance.

• Same Store Cash NOI growth guidance increased to 5.00%–5.25%; NAREIT FFO guidance is $1.48–$1.52 per share.

• Strategic-plan targets include a 2027 FFO payout ratio of 75%–80%, total occupancy of 92%–93% and NOI margin of 65%–66%; Q3 occupancy was 91.2% and YTD NOI margin was 64.2%.

• Year 3 run-rate Normalized FFO per share target is ~$1.75, ahead of schedule against the strategic-plan range of $1.65–$1.85; redevelopment targets 9%–12% returns on cost.

• Guidance assumes specified rental rates, occupancy, interest rates, operating costs and G&A; it excludes potential disposition gains or losses, impairments and debt extinguishment costs.