Healthcare Realty Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP Net loss was $(0.05) per share for the third quarter ended September 30, 2026, compared to $(0.17) per share in the prior year period.
• NAREIT FFO was $0.38 per share (diluted) for the quarter, up from $0.34 per share in the prior year period.
• Normalized FFO was $0.42 per share (diluted) for the quarter, up from $0.41 per share in the prior year period.
• Funds Available for Distribution (FAD) totaled $110 million for the quarter, representing a payout ratio of 76%.
• Total revenues for the quarter were $286.6 million, down from $297.8 million in the prior year period.
• Net loss attributable to common stockholders was $(15.8) million for the quarter, compared to $(58.5) million in the prior year period.
• Net loss attributable to common stockholders for the year-to-date period was $(59.3) million, compared to $(260.5) million in the prior year period.
• Net Debt to Adjusted EBITDA was 5.5x as of September 30, 2026.

Guidance and Future Outlook:

• Full year 2026 Normalized FFO guidance was increased to a range of $1.65 to $1.67 per share (diluted), a $0.02 increase at the midpoint from July guidance.
• Full year 2026 Same Store Cash NOI growth guidance was increased to a range of 5.00% to 5.25%, representing a +75 basis point increase at the low end and +25 basis points at the high end from July guidance.
• Guidance assumptions include expectations for rental rates, occupancy levels, interest rates, and operating and general and administrative expenses.
• Guidance excludes impacts from gains or losses from dispositions, potential impairments, debt extinguishment costs, and future acquisitions, developments, or share issuances/repurchases.

Business Segments and Product Lines:

• Third quarter lease executions totaled 1.5 million square feet, including 430,000 square feet of new lease executions.
• Leasing activity included 329 new and renewal leases with a weighted average lease term of 5.9 years and average annual escalators of 3.1%.
• Same store cash NOI growth was 5.1% for the quarter.
• Tenant retention rate was 88.0% for the quarter.
• Cash leasing spreads averaged 8.6% for the quarter.
• Specific leasing activity included 203,000 square feet with Ascension Health in Nashville, 59,000 square feet with Cedars Sinai Medical Center in Los Angeles, 59,000 square feet with Mount Carmel Health System in Columbus, OH, and 38,000 square feet with Indiana University Health in Indianapolis.
• The Company leased approximately 112,000 square feet and invested approximately $25 million across its redevelopment portfolio during the quarter.
• The Company completed the redevelopment of a 40,400 square foot MOB in Raleigh, NC and commenced the redevelopment of a 60,500 square foot MOB in Austin, TX.

Market and Competitive Landscape:

• The Company acquired $211 million of assets in its strategic joint venture with KKR since the last quarter.
• Acquisitions included two health system anchored, Class A MOB in Charleston, SC for $56 million (bringing total ownership in the market to 10 properties and 436,000 square feet) and a 33,000 square foot health system anchored MOB in Seattle, WA for $17 million.
• The Company disposed of $68 million of assets since the last quarter, bringing year-to-date disposition activity to $136 million ($187 million including loan receivable repayments).
• Selected dispositions included a $36 million sale of a 59,000 square foot MOB in Atlanta, GA, and the sale of two properties in Chicago, IL for $23 million, with a contract to sell the remaining property to fully exit the Chicago market.

Risks and Challenges:

• Forward-looking statements involve risks including uncertainty of expected future financial performance, pandemics or health crises, increases in interest rates, and the availability and cost of capital.
• Risks include competition for quality assets, negative developments in tenant operating results or ability to pay rent, and the ability to reposition or sell facilities profitably.
• Risks include the ability to renew expiring leases, government regulations affecting Medicare and Medicaid reimbursement rates, and unanticipated difficulties relating to future acquisitions and developments.
• Risks include the potential requirement to sell properties under purchase options without being able to reinvest proceeds at equal rates of return, uninsured losses, and impairment charges.

Management Commentary and Tone:

• The Company announced an increase in full year 2026 guidance ranges, reflecting confidence in current and future market conditions.
• Management highlighted the strategic joint venture with KKR and continued asset optimization through acquisitions and dispositions.
• The Board unanimously approved a common stock dividend of $0.24 per share.

Other Key Points:

• The Company repurchased 4.2 million shares of common stock through early October at an average price of $17.74 per share for a total of $75 million.
• On October 26, 2026, the Company renewed its share repurchase program for the next 12 months with a total authorization up to $500 million.
• The Company had approximately $1.6 billion of liquidity as of September 30, 2026, across the revolving facility (net of commercial paper issuance), delayed draw term loan, and cash on hand.
• A conference call to discuss earnings results was scheduled for October 30, 2026, at 9:00 a.m. Eastern Time.
• The common stock dividend of $0.24 per share will be paid on November 20, 2026, to Class A common stockholders of record on November 10, 2026.