Healthcare Realty Trust (HR) Investor presentation summary

Portfolio overview and financial performance

• Owns 563 outpatient medical properties totaling 33 million sq. ft. with a $10.6B enterprise value and $6.4B market cap.

• Achieved 1Q 2026 normalized FFO per share of $0.41, up 5% YoY, and same store cash NOI growth of 6.9%.

• Maintains 92.3% same store occupancy and 93.5% tenant retention, with 2.0M sq. ft. of lease executions and average lease term of 7.7 years.

• Increased 2026 normalized FFO per share guidance to $1.59–$1.65 and raised same store cash NOI growth guidance to 3.75%–4.75%.

• Net debt to adjusted EBITDA stands at 5.5x, with $1.2B in liquidity and a BBB/Baa2 credit rating.

Strategic initiatives and capital allocation

• Completed $1.2B of planned 2025 dispositions at a blended 6.7% cap rate, exiting 14 non-core markets.

• Repurchased $100M of common stock in 1Q 2026 and completed new JV acquisition for $89M.

• Added two new redevelopment projects with an expected cost of $31M and received $400M in commitments for a new unsecured term loan.

• Right-sized quarterly dividend to $0.24/share, saving ~$100M annually, and returned $385M to shareholders in 2025 via dividends.

• Redevelopment portfolio is 60% leased, with ~1,000bps improvement since 3Q 2025 and targeted incremental yields of 9–12%.

Market positioning and sector trends

• Only REIT focused exclusively on the outpatient medical sector, benefiting from aging demographics and limited new supply.

• Sector occupancy at 93%, highest in over 7 years, with market rent growth above 3% and record rent escalators.

• Private markets recognize value, with ~$10B average annual investment volume and attractive risk-adjusted returns.

• Portfolio concentrated in top 50 MSAs, with deep relationships with leading national and regional health systems.

• Improved portfolio quality post-dispositions, with current portfolio occupancy at 92% and better market demographics.