Healthcare Realty Trust (HR) Q4 2025 earnings summary

Executive summary

• 2025 was a transformational year with a revamped leadership team, improved asset management, and execution ahead of the three-year strategic plan, including strong same-store growth and $1.2 billion in asset dispositions at attractive pricing.

• The company exited 14 non-core markets, improved its geographic footprint to high-growth MSAs, and strengthened governance and balance sheet.

• Appointed new CEO and CFO, and enhanced leadership team with experienced industry executives.

• Dividend was right-sized, now offering a nearly 6% yield and is well-covered.

• Normalized FFO for 2025 was $1.61 per share, exceeding guidance midpoint by $0.03.

Financial highlights

• Q4 2025 normalized FFO per share was $0.40; full-year normalized FFO per share was $1.61.

• Same-store cash NOI growth for Q4 was 5.5%; full-year was 4.8%.

• FAD per share for 2025 was $1.26; quarterly dividend payout ratio was 75%.

• G&A expense achieved $10 million run-rate savings, now at $45 million.

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

Outlook and guidance

• 2026 normalized FFO per share guidance is $1.58-$1.64, midpoint $1.61.

• Same-store cash NOI growth expected at 3.5%-4.5% for 2026.

• G&A expected between $43 million and $47 million.

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

• Modest asset sales and $100 million free cash flow post-dividends anticipated.