Healthcare Realty Trust (HR) Q2 2026 earnings summary

Executive summary

• Outperformed all key strategic plan objectives, including NOI growth, occupancy, retention, and leverage reduction over the past year, with a GAAP net loss of $0.13 per share for Q2 2026, NAREIT FFO at $0.36, and Normalized FFO at $0.41 per share.

• Leasing momentum remained strong, with 1.5 million sq ft executed in Q2 2026 (3.5 million sq ft year-to-date), including 350,000 sq ft of new leases, and limited near-term expiration risk.

• Strategic health system partnerships drove major lease renewals, asset sales, and future development rights, supporting operational and financial goals.

• Capital allocation focused on redevelopments, joint venture acquisitions, and disciplined balance sheet management.

• The company operates as a single segment, managing most of its portfolio in-house across 26 states and 501 consolidated properties.

Financial highlights

• Q2 2026 Normalized FFO per share was $0.41; FAD per share was $0.32, with a 76% payout ratio; same-store cash NOI grew 5.1% year-over-year.

• Net loss attributable to common stockholders was $43.5 million for Q2 2026.

• Same-store occupancy reached nearly 93%, with tenant retention at 88.5% and cash leasing spreads at 4.8%.

• Q2 2026 revenues totaled $287.1 million, with rental income at $270.6 million.

• $1.1 billion in capital raised through convertible bond issuance and delayed draw term loan at a blended 4% interest rate.

Outlook and guidance

• Full-year 2026 Normalized FFO per share guidance raised to $1.62–$1.66, with same-store cash NOI growth guidance increased to 4.25%–5.00%.

• Guidance reflects assumptions on rental rates, occupancy, interest rates, and expenses, excluding impacts from future acquisitions, developments, or share issuances/repurchases not already announced.

• Strong leasing outcomes and 4%-5% cash re-leasing spreads expected to continue.

• Management targets mid-single digit earnings growth and stabilized same-store NOI growth of 4%+.