Healthcare Realty Trust (HR) Q1 2026 earnings summary

Executive summary

• Achieved record leasing activity in Q1 2026, executing over 2 million sq ft and 290 leases, with 93.5% tenant retention and improved lease economics.

• Reported GAAP net loss of $0.00 per share, NAREIT FFO of $0.35 per share, and Normalized FFO of $0.41 per share.

• Raised full-year 2026 Normalized FFO guidance to $1.59–$1.65 per share and Same Store Cash NOI growth guidance to 3.75%–4.75%.

• Completed $125 million in transactions, including an $89 million JV acquisition and $33 million in dispositions.

• Repurchased 5.7 million shares for $100 million and secured $400 million in new term loan commitments.

Financial highlights

• Q1 2026 revenues were $279.0 million, with property operating expenses of $100.1 million and G&A expenses of $17.3 million.

• Normalized FFO totaled $144.4 million ($0.41/share); FAD was $112.9 million (75% payout ratio).

• Same Store Cash NOI growth reached 6.9% year-over-year, with occupancy at 92.3%.

• Cash leasing spreads averaged 4.2%, with one in four leases above 5%.

• Net Debt to Adjusted EBITDA stood at 5.5x; liquidity of $1.2 billion as of March 31, 2026.

Outlook and guidance

• Increased full-year Normalized FFO per share guidance by $0.01 to $1.59–$1.65 per share.

• Raised Same Store Cash NOI growth guidance by 25 basis points to 3.75%–4.75%.

• Guidance excludes impacts from future acquisitions, developments, or share repurchases not already discussed.

• Management expects to fund 2026 dividends from operations or other liquidity sources.

• Approximately 10-15% of leases are expected to expire annually, with a typical tenant retention rate of 75-90%.