NASHVILLE, Tenn., Jan. 07, 2026 (GLOBE NEWSWIRE) -- Healthcare Realty Trust Incorporated (NYSE:HR) (“Healthcare Realty” or the “Company”) today announced the appointment of Daniel Gabbay as Executive Vice President and Chief Financial Officer (“CFO”). He will be based at the Company’s Nashville headquarters and assume his new role on January 12, 2026. Since 2024, Mr. Gabbay served as a Managing Director in the Real Estate Investment Banking Group of RBC Capital Markets (“RBC”), with primary coverage respons ...

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group emphasizes high-yield, dividend growth investment ideas, targeting dividend yields up to 10% [2] Investment Strategy - The group specializes in research on REITs, ETFs, closed-end funds, preferred stocks, and dividend champions across various asset classes [2] - It aims to help investors achieve dependable monthly income and portfolio diversification [2] Experience and Expertise - The investment group is led by individuals with significant experience in the investment field, including over 14 years of experience and an MBA in Finance [2]

Core Viewpoint - Resolution Capital's investment in Healthcare Realty Trust indicates a belief that valuation and cash flow are more significant than short-term interest rate discussions [1][7]. Company Overview - Healthcare Realty Trust is a leading healthcare-focused REIT that specializes in acquiring, developing, and managing outpatient medical properties across the United States [3][4]. - The company generates revenue primarily through long-term lease agreements with healthcare providers, focusing on outpatient healthcare real estate [4][5]. Financial Metrics - As of November 13, 2025, Healthcare Realty Trust's share price was $18.08, reflecting a 9.91% increase over the past year, although it underperformed the S&P 500 by 2.48 percentage points [2]. - The company reported trailing twelve months (TTM) revenue of $1.17 billion and a dividend yield of 6.07% [2][8]. - The market capitalization of Healthcare Realty Trust is $6.38 billion [2]. Investment Insights - Resolution Capital's new position in Healthcare Realty Trust, comprising 2.2462% of its reportable assets under management, suggests confidence in the stability of the REIT's income stream despite broader market challenges [2][7]. - The REIT's portfolio is designed for long-term leases and steady usage, which has helped maintain cash flow stability even amid rising interest rates [8]. - The ongoing question for investors is whether Healthcare Realty Trust can sustain its dividend funding as financing conditions stabilize [9].

Core Viewpoint - Healthcare Realty Trust (HR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade for Healthcare Realty Trust reflects an improvement in its earnings outlook, which is expected to positively affect its stock price [3][5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Healthcare Realty Trust is projected to earn $1.60 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 0.8% over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - Healthcare Realty Trust's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

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Financial Performance - Rental income for Q3 2025 was $287,399,000, a decrease of 6.9% from $306,499,000 in Q3 2024[12] - Total revenues for the nine months ended September 30, 2025, were $894,243,000, down 6.7% from $958,550,000 in the same period of 2024[12] - Net loss for Q3 2025 was $58,544,000, compared to a net loss of $94,535,000 in Q3 2024, representing a 38.0% improvement[13] - Basic earnings per common share for Q3 2025 were $(0.17), an improvement from $(0.26) in Q3 2024[12] - Comprehensive loss for the nine months ended September 30, 2025, was $269,441,000, compared to $562,022,000 in the same period of 2024, indicating a significant reduction[13] - For the nine months ended September 30, 2025, the net loss was $264,076,000, compared to a net loss of $555,692,000 for the same period in 2024, representing a 52% improvement[17] - The Company reported a net loss of $(58,544) thousand for the three months ended September 30, 2025, resulting in a basic and diluted earnings per share of $(0.17)[102] Revenue and Income Sources - Gain on sales of real estate properties for Q3 2025 was $76,771,000, an increase of 95.5% from $39,310,000 in Q3 2024[12] - Total revenue from contracts with customers for Q3 2025 was $6.886 million, an increase of 37% from $5.020 million in Q3 2024[52] - Management fee income and other for Q3 2025 was $4.707 million, up 77% from $2.657 million in Q3 2024[52] - Revenue from parking income for the three months ended September 30, 2025, was $2.179 million, a decrease from $2.363 million in 2024[52] Expenses and Costs - Property operating expenses for Q3 2025 were $113,456,000, down 5.9% from $120,232,000 in Q3 2024[12] - Total expenses for the nine months ended September 30, 2025, were $835,412,000, a decrease of 9.6% from $924,309,000 in the same period of 2024[12] - Total significant segment expenses for the three months ended September 30, 2025, were $101.4 million, a decrease of 6.8% from $108.6 million in 2024[120] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $324,756,000, a decrease from $363,605,000 in 2024[17] - The company had net cash used in financing activities of $534,519,000 for the nine months ended September 30, 2025, compared to $845,294,000 in 2024[17] - The company had net cash provided by investing activities of $184,344 thousand for the nine months ended September 30, 2025, down from $482,149 thousand in 2024, a decline of about 62%[17] Assets and Liabilities - The Company had total assets of $113.05 million and total liabilities of $72.64 million as of September 30, 2025, compared to total assets of $108.15 million and total liabilities of $63.00 million as of December 31, 2024[29] - The Company had $4.49 billion in notes and bonds payable as of September 30, 2025[72] - The Company had $1.4 billion available to be drawn on its $1.5 billion Unsecured Credit Facility as of September 30, 2025[73] Real Estate and Property Management - Total gross investments as of September 30, 2025, amounted to approximately $10.4 billion across 519 consolidated real estate properties[19] - The company provided leasing and property management services to 93% of its portfolio nationwide as of September 30, 2025[19] - The Company had 178 ground leases covering 12.8 million square feet as of September 30, 2025[68] - As of September 30, 2025, the company had 43 properties and two land parcels classified as assets held for sale, compared to three properties as of December 31, 2024[62] Shareholder Information - Total dividends paid for the nine months ended September 30, 2025, were $302,528,000, compared to $348,064,000 in 2024[17] - The Company declared and paid common stock dividends totaling $0.86 per share during the nine months ended September 30, 2025[98] - The Company had a balance of 351,604,207 shares of common stock outstanding as of September 30, 2025, an increase from 350,532,006 shares at the beginning of the period[97] Credit and Impairment - Impairment of real estate properties and credit loss reserves for the nine months ended September 30, 2025, totaled $258,791,000, up from $232,450,000 in the same period of 2024[12] - The allowance for credit losses increased to $18.27 million as of September 30, 2025, up from $16.80 million at the end of 2024[46] - The Company recorded a credit loss reserve of $1.5 million in the second quarter of 2025 due to increased risk of credit loss on a mortgage note receivable[46] Debt and Financing Activities - The Company entered into a new $1.5 billion Unsecured Credit Facility on July 25, 2025, which includes a revolving credit facility and multiple term loan tranches[78] - The Company repaid $250 million of Senior Notes due 2025 at maturity, including $4.8 million of accrued interest[74] - The Company had seven outstanding interest rate swaps with a total notional amount of $500,000 and a weighted average rate of 3.65%[88] Future Outlook and Changes - The company is evaluating the impact of the new accounting standards update (ASU 2024-03) on its financial statements, effective for annual reporting periods beginning after December 15, 2026[54] - The company expects future amortization of non-vested share-based awards to total $27.8 million, with $3.2 million in 2025 and $11.3 million in 2026[114]

Financial Data and Key Metrics Changes - Normalized FFO was $0.41 per share, representing a 5% year-over-year increase [20] - Same-store cash NOI growth was 5.4% for the quarter [20] - Net debt to adjusted EBITDA is now at 5.8 times, down from over six times [7][21] - The company raised both its FFO and same-store guidance for the year [6][22] Business Line Data and Key Metrics Changes - Same-store NOI growth averaged 5.25% over the last two quarters [4] - Same-store occupancy increased by 180 basis points, reaching 91.1% [5][17] - Tenant retention improved to nearly 89%, the highest in six years [16] Market Data and Key Metrics Changes - Demand in the top 100 MSAs outstripped supply by over 740,000 square feet [17] - The leasing pipeline stands at 1.1 million square feet, with two-thirds in the LOI phase [5] - The transaction market for outpatient medical is heating up, with cap rate compression observed [8] Company Strategy and Development Direction - The company is focusing on exceeding its three-year growth framework and improving earnings [4] - There is a strategic shift towards maximizing economic returns rather than volume [5] - The company is actively pursuing redevelopment opportunities and has added five assets to its redevelopment portfolio [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tailwinds for Healthcare Realty Trust, citing improving secular trends in outpatient medical [5] - The company is transitioning to an operations-oriented culture and is excited about future growth prospects [13] - Management noted that the balance sheet initiatives are nearly complete, allowing for potential future investments [13] Other Important Information - The company has sold $500 million of assets year-to-date at a blended cap rate of 6.5% [9] - A $1 billion ATM equity program and up to $500 million in share buybacks have been authorized [22] Q&A Session Summary Question: Impact of NOI on the portfolio over the next quarters - Management indicated a stabilized year-over-year growth rate of 3 to 4% for the portfolio, with potential upside from redevelopments [26] Question: Health system share of leasing - The increase in health system leasing is attributed to improved tenant relations and a shift towards outpatient settings [30] Question: Cap rate assumptions for dispositions - The cap rate for remaining dispositions is expected to be higher due to the mix of assets, which includes more value-add components [33] Question: Buyer pool changes since dispositions began - The buyer demand remains strong, with a notable improvement in the lending environment fueling appetite [58] Question: Future strategic investments - The company is focusing on joint ventures and selective acquisitions, leveraging existing relationships in priority markets [62]

Core Insights - Healthcare Realty Trust (HR) reported a revenue of $297.77 million for the quarter ended September 2025, reflecting a year-over-year decline of 5.6% [1] - The earnings per share (EPS) for the same period was $0.41, a significant improvement from -$0.26 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $295.43 million, resulting in a surprise of +0.79% [1] - The company also delivered an EPS surprise of +2.5%, with the consensus EPS estimate being $0.40 [1] Revenue Breakdown - Rental income was reported at $287.4 million, which is a -6.2% change compared to the year-ago quarter and below the average estimate of $291.28 million by two analysts [4] - Interest income amounted to $3.48 million, representing a -10.9% change year-over-year and also below the average estimate of $3.69 million [4] - Other operating revenues were reported at $6.89 million, exceeding the average estimate of $5.72 million and showing a year-over-year increase of +37.2% [4] Stock Performance - Over the past month, shares of Healthcare Realty Trust have returned -3.4%, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Healthcare Realty Trust (HR) reported quarterly funds from operations (FFO) of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.40 per share and up from $0.39 per share a year ago [1][2] - The company achieved an FFO surprise of +2.50% and has surpassed consensus FFO estimates three times in the last four quarters [2] - Revenues for the quarter ended September 2025 were $297.77 million, surpassing the Zacks Consensus Estimate by 0.79%, but down from $315.42 million year-over-year [3] Financial Performance - The FFO for the quarter was $0.41 per share, compared to the expected $0.40, indicating a positive surprise [2] - Revenue of $297.77 million was reported, which is a decrease from the previous year's $315.42 million [3] - The company has topped consensus revenue estimates two times over the last four quarters [3] Market Performance - Healthcare Realty Trust shares have increased by approximately 4.7% since the beginning of the year, while the S&P 500 has gained 17.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.40 on revenues of $292.82 million, and for the current fiscal year, it is $1.59 on revenues of $1.18 billion [8] - The estimate revisions trend for Healthcare Realty Trust was mixed ahead of the earnings release, which may change following the recent report [7] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Performance - GAAP Net loss for Q3 2025 was $(57,738) thousand, or $(0.17) per share, compared to a net loss of $(93,023) thousand, or $(0.26) per share in Q3 2024[9]. - NAREIT FFO for Q3 2025 was $118,922 thousand, or $0.34 per share, up from $77,288 thousand, or $0.21 per share in the same quarter last year[9]. - Normalized FFO for Q3 2025 was $145,340 thousand, or $0.41 per share, compared to $142,049 thousand, or $0.39 per share in Q3 2024[9]. - The net loss attributable to common stockholders in Q3 2025 was $(57,738) thousand, an improvement from $(157,851) thousand in Q2 2025[36]. - Funds from Operations (FFO) for 3Q 2025 was $118,922 thousand, consistent with $120,371 thousand in 2Q 2025, while FFO per diluted share remained stable at $0.34[40]. - Normalized FFO for 3Q 2025 increased to $145,340 thousand, compared to $143,736 thousand in 2Q 2025, with normalized FFO per diluted share at $0.41[40]. - Net loss for Q3 2025 was $58,544,000, an improvement from a loss of $160,144,000 in Q2 2025[103]. - Cash NOI for Q3 2025 was $184,413,000, slightly down from $186,641,000 in Q2 2025[108]. - Same store cash NOI increased to $157,928,000 in Q3 2025 from $156,872,000 in Q2 2025, reflecting a growth of 0.7%[108]. Asset Management - The company executed 333 new and renewal leases totaling 1.6 million square feet during Q3 2025[10]. - The company completed asset sales totaling $404 million through 15 transactions in Q3 2025, with year-to-date sales reaching $486 million at a blended cap rate of 6.5%[11]. - Total assets decreased to $9,859,647 thousand in Q3 2025 from $10,235,572 thousand in Q2 2025, representing a decline of approximately 3.7%[33]. - Total liabilities decreased to $5,114,801 thousand in Q3 2025 from $5,354,146 thousand in Q2 2025, a reduction of approximately 4.5%[33]. - The company held $604,747 thousand in assets held for sale, net, in Q3 2025, an increase from $358,207 thousand in Q2 2025, reflecting a rise of 68.8%[33]. - The company has identified 43 properties as assets held for sale, which are excluded from same store cash NOI[120]. Liquidity and Debt - The company has approximately $1.3 billion of liquidity as of October 2025[15]. - Run-rate Net Debt to Adjusted EBITDA was 5.8x, expected to be between 5.4x and 5.7x by year-end[11]. - As of September 30, 2025, the total principal balance of debt is $4,684,130, with a net debt of $4,640,785 after accounting for cash[51]. - The company has a leverage ratio of 39.2%, which is below the maximum requirement of 60%[55]. - The fixed charge coverage ratio stands at 3.3x, exceeding the minimum requirement of 1.50x[55]. - Total debt as of Q3 2025 was $4,485,706,000, down from $4,694,391,000 in Q2 2025[112]. - The company reported a net debt to adjusted EBITDA ratio of 5.8x for Q3 2025, consistent with prior guidance[122]. Revenue and Income - Rental income for Q3 2025 was $287,399 thousand, slightly up from $287,070 thousand in Q2 2025, indicating a growth of 0.1%[36]. - Total cash NOI for Q3 2025 reached $184,413, with same store cash NOI contributing $157,928[94]. - Year-over-year revenue growth for same store properties was 4.1%, with base revenue increasing by 4.2%[98]. - Multi-tenant properties accounted for 65% of total cash NOI, generating $120,762 in Q3 2025[94]. - Cash NOI for same store properties increased by 5.4% year-over-year, reaching $157,928 in Q3 2025[98]. Expenses and Costs - General and administrative expenses decreased to $21,771,000 in Q3 2025 from $23,482,000 in Q2 2025, a reduction of approximately 7.3%[108]. - Total maintenance capital expenditures for 3Q 2025 amounted to $(27,155) thousand, representing 14.7% of Cash NOI[45]. - The company incurred restructuring and severance-related charges of $12,046 thousand in 3Q 2025, up from $10,302 thousand in 2Q 2025[40]. - Depreciation and amortization expenses were $137,841 thousand in Q3 2025, down from $147,749 thousand in Q2 2025, a decrease of 6.1%[36]. Leasing and Occupancy - Same store cash NOI growth was +5.4%, driven by a 90 basis points increase in occupancy and tenant retention of 88.6%[11]. - The weighted average lease term (WALT) for all leasing commitments in 3Q 2025 was 60.0 months, an increase from 43.8 months in 2Q 2025[46]. - The occupancy rate for wholly-owned properties is 89.4%, with a weighted average lease term (WALT) of 116 months[83]. - The number of leases in the multi-tenant category was 393, with an occupancy rate of 89.5%[95]. - Tenant retention rate improved to 88.6% in Q3 2025, compared to 83.1% year-to-date[89]. Future Projections - The company increased its 2025 guidance for Normalized FFO per share to a range of $1.59 - $1.61 and Same Store Cash NOI growth to 4.00% - 4.75%[11]. - The company projects same store cash NOI growth for 2025 to be between 4.00% and 4.75%, with a year-to-date growth of 4.6%[122]. - Year-end same store net absorption is projected to be between 75 and 125 basis points, with a current year-to-date figure of 77 basis points[122].