2Q 2026 | ||
| Supplemental Information | ||
| FURNISHED AS OF JULY 30, 2026 (UNAUDITED) | ||
 | ||
| Table of Contents | ||
| FORWARD LOOKING STATEMENTS & RISK FACTORS | ||
| This Supplemental Information report contains disclosures that are “forward-looking statements.” Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “target,” “intend,” “plan,” “estimate,” “project,” “continue,” “should,” “could," "budget" and other comparable terms. These forward-looking statements are based on the Company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Such risks and uncertainties include, among other things, the following: the Company’s expected results may not be achieved; risks related to future opportunities and plans for the Company, including the uncertainty of expected future financial performance and results of the Company; pandemics or other health crises; increases in interest rates; the availability and cost of capital at expected rates; competition for quality assets; negative developments in the operating results or financial condition of the Company's tenants, including, but not limited to, their ability to pay rent; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to release space at similar rates as vacancies occur; the Company's ability to renew expiring leases; government regulations affecting tenants' Medicare and Medicaid reimbursement rates and operational requirements; unanticipated difficulties and/or expenditures relating to future acquisitions and developments; changes in rules or practices governing the Company's financial reporting; the Company may be required under purchase options to sell properties and may not be able to reinvest the proceeds from such sales at rates of return equal to the return received on the properties sold; uninsured or underinsured losses related to casualty or liability; the incurrence of impairment charges on its real estate properties or other assets; other legal and operational matters; and other risks and uncertainties affecting the Company, including those described from time to time under the caption “Risk Factors” and elsewhere in the Company’s filings and reports with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Moreover, other risks and uncertainties of which the Company is not currently aware may also affect the Company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this communication are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law. Stockholders and investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in the Company’s filings and reports, including, without limitation, estimates and projections regarding the performance of development projects the Company is pursuing. For a detailed discussion of the Company’s risk factors, please refer to the Company's filings with the SEC, including this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. See the Glossary herein for further information regarding definitions and important discussions regarding the usefulness and limitations of the non-GAAP measures used in this Supplemental Report. | ||
| 2Q EARNINGS RELEASE | ||||||||
| SUPPLEMENTAL INFORMATION | ||||||||
Lease Maturity Schedule | ||||||||
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 2 | |||||||
| Earnings Highlights | ||
HEALTHCARE REALTY REPORTS SECOND QUARTER 2026 RESULTS AND FURTHER INCREASES FULL YEAR 2026 GUIDANCE
NASHVILLE, Tennessee, July 30, 2026. Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the second quarter ended June 30, 2026. In addition, the Company announced an increased 2026 Normalized FFO guidance range of $1.62 to $1.66 per share (diluted), a $0.02 increase at the midpoint from April guidance, and an increased Same Store Cash NOI growth guidance range of 4.25% to 5.00% (+50bps increase at the low end and +25bps at the high end from April guidance).
SECOND QUARTER 2026 HIGHLIGHTS
•GAAP Net loss of $(0.13) per share, NAREIT FFO of $0.36 per share, Normalized FFO of $0.41 per share, and FAD of $109 million (payout ratio of 76%)
•Same store cash NOI growth of 5.1%, tenant retention of 88.5% and 4.8% cash leasing spreads
•Second quarter lease executions totaled 1.5 million square feet, including 350,000 square feet of new lease executions
•Since last quarter, closed or under contract/LOI on approximately $200 million of joint venture acquisitions (approximately $40 million at share) at a blended cash yield to the Company of approximately 7.5%
•Since last quarter, closed or under contract on $83 million (at share) of dispositions at a sub-5% cap rate
•Run Rate Net Debt to Adjusted EBITDA of 5.6x
•Issued $700 million of 3.00% Exchangeable Senior Notes due 2032. Proceeds were primarily used to repay the Company’s $600 million Senior Notes due 2026
•Repurchased 3.8 million shares of common stock in connection with the Exchangeable Senior Notes offering
•Entered into a $400 million unsecured delayed draw term loan agreement with a May 15, 2029 maturity date
SECOND QUARTER 2026 RESULTS
| SECOND QUARTER ENDED | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| (in thousands, except per share amounts) | AMOUNT | PER SHARE | AMOUNT | PER SHARE | |||||||||||||
| GAAP Net loss | $(43,514) | $(0.13) | $(157,851) | $(0.45) | |||||||||||||
| NAREIT FFO, diluted | $126,142 | $0.36 | $120,371 | $0.34 | |||||||||||||
| Normalized FFO, diluted | $143,703 | $0.41 | $143,736 | $0.41 | |||||||||||||
LEASING ACTIVITY
During the second quarter, the Company executed 323 new and renewal leases for 1.5 million square feet with a weighted average lease term of 5.7 years and average annual escalators of 3.0%. Key highlights include:
•CommonSpirit Health. 157,000 square feet of new and renewal leases, maintaining occupancy of more than 90% across five markets
•Wellstar Health System. 66,000 square feet of new and renewal leases in the Atlanta market across three properties that are 94% occupied
•Baylor Scott & White Health. 57,000 square feet of new and renewal leases in the Dallas/Ft. Worth market across seven properties that are 90% occupied
•Ascension Health. Renewed approximately 66,000 square feet across four on campus properties
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 3 | |||||||
| Earnings Highlights | ||
Acquisition Activity
Since last quarter, the Company has closed or is under contract/LOI to acquire approximately $200 million of assets (approximately $40 million at share) in its strategic joint venture with KKR:
•Port St. Lucie, FL. Acquired a newly constructed, surgery center-anchored MOB attached to a vibrant hospital for $21 million ($4 million investment at share). The Company now owns three properties totaling 110,000 square feet in the market
•Greenwich, CT. Acquired an exceptionally well-located, health system anchored MOB for $65 million ($13 million investment at share). The 106,000 square foot acquisition complements the Company’s 10 other assets in the market and expands our relationship with “A+” rated Yale New Haven Health and “BBB+” rated Stamford Health
•Other Acquisitions. Under LOI to acquire four additional assets in Charleston, SC, Seattle, WA and Denver, CO for $111 million ($22 million at share). The assets are located in attractive sub-markets adjacent to existing Company properties. The transactions are expected to close in the third quarter
Disposition Activity
Since last quarter, the Company has closed or is under contract to sell approximately $83 million (at share) of assets. Selected transactions include:
•Atlanta, GA. The Company is under contract for the opportunistic $36 million direct sale of a 59,000 square foot MOB to the affiliated hospital. The closing is expected to occur in the fourth quarter
•Austin, TX. During the quarter, the Company monetized a non-core retail property for $9 million
•Denver, CO. The Company is under contract for the sale of three land sites direct to the affiliated health system for $16 million. The sale is expected to occur by year-end 2026
Development and Redevelopment
During the second quarter, the Company leased approximately 60,000 square feet and invested approximately $25 million across its redevelopment portfolio.
In early July, the Company executed an LOI with Ascension Saint Thomas to launch a comprehensive redevelopment at the Ascension Saint Thomas West campus in Nashville, TN. Located in the heart of one of the most vibrant submarkets in Nashville, the hospital and health campus will undergo a $120 million modernization led by Ascension. Ascension's investment will include meaningful upgrades to clinical infrastructure, operating rooms, cardiac catheterization labs, as well as a new Heart and Kidney Transplant Center and a new Thoracic Surgery and Chest & Lung Center. Ascension is a Top 10 U.S. health system by revenue, and recently closed on its acquisition of AmSurg, a leading owner/operator of outpatient ambulatory surgery centers across the U.S.
Healthcare Realty will invest $35 million to modernize its three buildings and agreed to over 200,000 square feet of new and renewal leases across three campuses in the greater Nashville market with Ascension. These leases are expected to be signed in the third quarter.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 4 | |||||||
| Earnings Highlights | ||
As of June 30, 2026, the Company had approximately $1.6 billion of liquidity across the revolving facility (net of commercial paper issuance), delayed draw term loan, and cash on hand. Key capital market activity during the quarter includes:
•Issued $700 million of 3.00% Exchangeable Senior Notes due 2032. Proceeds were primarily used to repay the Company’s $600 million Senior Notes that was due to mature in August 2026 and concurrently repurchased 3.8 million shares of common stock for $75 million. The Notes are exchangeable at an initial exchange rate of 43.466 shares of the Company's common stock per $1,000 principal amount of Notes, which represents an initial exchange price of $23.01 per share. Additionally, the Company entered into capped call transactions for $29 million, with an initial cap price of $27.41 per share, to reduce potential future share dilution
•Entered into a $400 million unsecured delayed draw term loan with a May 15, 2029 maturity date. The Company has the ability to draw the proceeds at any time through May 15, 2027. As of June 30, 2026 there were no outstanding borrowings
DIVIDEND
The Board unanimously approved a common stock dividend in the amount of $0.24 per share to be paid on August 26, 2026, to Class A common stockholders of record on August 11, 2026. Additionally, the eligible holders of operating partnership units will receive a distribution of $0.24 per unit, equivalent to the Company's Class A common stock dividend.
GUIDANCE
The Company further increased full year 2026 guidance ranges as follows:
| 2026 GUIDANCE | |||||||||||||||||
| ACTUAL | PRIOR | CURRENT | |||||||||||||||
| 2Q 2026 | LOW | HIGH | LOW | HIGH | |||||||||||||
| Earnings per share | $(0.13) | $(0.05) | $0.05 | $(0.15) | $(0.11) | ||||||||||||
| NAREIT FFO per share | $0.36 | $1.45 | $1.51 | $1.45 | $1.51 | ||||||||||||
| Normalized FFO per share | $0.41 | $1.59 | $1.65 | $1.62 | $1.66 | ||||||||||||
| Same Store Cash NOI growth | 5.1 | % | 3.75 | % | 4.75 | % | 4.25 | % | 5.00 | % | |||||||
The 2026 annual guidance range reflects the Company's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, and operating and general and administrative expenses. The Company's guidance does not contemplate impacts from gains or losses from dispositions, potential impairments, or debt extinguishment costs, if any. The Company's guidance also does not include any future acquisitions, developments or share issuances or repurchases, other than as discussed in the detailed guidance assumptions on Page 11 of the 2Q 2026 Supplemental. There can be no assurance that the Company's actual results will not be materially higher or lower than these expectations. If actual results or timing vary from these assumptions, the Company's expectations may change. See Page 11 of the 2Q 2026 Supplemental for additional details and assumptions.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 5 | |||||||
| Earnings Highlights | ||
EARNINGS CALL
On Friday, July 31, 2026, at 9:00 a.m. Eastern Time, Healthcare Realty Trust has scheduled a conference call to discuss earnings results, quarterly activities, general operations of the Company and industry trends.
Simultaneously, a webcast of the conference call will be available to interested parties at https://investors.healthcarerealty.com/corporate-profile/webcasts under the Investor Relations section. A webcast replay will be available following the call at the same address.
Live Conference Call Access Details:
•Domestic Dial-In Number: +1 833-461-5787
•All Other Locations: +1 585-542-9983
•Conference ID Number: 911 922 894
ABOUT HEALTHCARE REALTY
Healthcare Realty Trust Incorporated (NYSE: HR) is the largest public, pure-play owner, operator and developer of medical outpatient buildings in the United States.
For additional information contact [email protected].
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 6 | |||||||
| Balance Sheet | ||
| AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
| ASSETS | |||||||||||
| 2Q 2026 | 4Q 2025 | ||||||||||
| Real estate properties | |||||||||||
| Land | $1,055,183 | $1,060,254 | |||||||||
| Buildings and improvements | 8,696,204 | 8,514,165 | |||||||||
| Lease intangibles | 412,116 | 455,254 | |||||||||
| Personal property | 7,515 | 7,056 | |||||||||
| Investment in financing receivables, net | 6,003 | 123,249 | |||||||||
| Financing lease right-of-use assets | 74,273 | 75,083 | |||||||||
| Land held for development | 52,942 | 57,535 | |||||||||
| Total real estate investments | 10,304,236 | 10,292,596 | |||||||||
| Less accumulated depreciation and amortization | (2,559,332) | (2,397,795) | |||||||||
| Total real estate investments, net | 7,744,904 | 7,894,801 | |||||||||
| Cash and cash equivalents | 18,987 | 26,172 | |||||||||
| Assets held for sale, net | 95,895 | 143,580 | |||||||||
| Operating lease right-of-use assets | 201,916 | 204,906 | |||||||||
| Investments in unconsolidated joint ventures | 457,033 | 453,607 | |||||||||
| Other assets, net | 482,416 | 487,795 | |||||||||
| Total assets | $9,001,151 | $9,210,861 | |||||||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND STOCKHOLDERS' EQUITY | |||||||||||
| Liabilities | |||||||||||
| Notes and bonds payable | $4,166,944 | $3,911,423 | |||||||||
| Accounts payable and accrued liabilities | 159,728 | 211,071 | |||||||||
| Liabilities of properties held for sale | 14,099 | 15,160 | |||||||||
| Operating lease liabilities | 161,462 | 162,922 | |||||||||
| Financing lease liabilities | 74,099 | 73,130 | |||||||||
| Other liabilities | 151,845 | 160,530 | |||||||||
| Total liabilities | 4,728,177 | 4,534,236 | |||||||||
| Redeemable non-controlling interests | 3,435 | 3,252 | |||||||||
| Stockholders' equity | |||||||||||
| Preferred stock, $0.01 par value; 200,000 shares authorized | — | — | |||||||||
| Common stock, $0.01 par value; 1,000,000 shares authorized | 3,427 | 3,516 | |||||||||
| Additional paid-in capital | 8,940,542 | 9,137,257 | |||||||||
| Accumulated other comprehensive income (loss) | 1,598 | (5,174) | |||||||||
| Cumulative net income attributable to common stockholders | 84,668 | 128,238 | |||||||||
| Cumulative dividends | (4,813,087) | (4,646,944) | |||||||||
| Total stockholders' equity | 4,217,148 | 4,616,893 | |||||||||
| Non-controlling interest | 52,391 | 56,480 | |||||||||
| Total equity | 4,269,539 | 4,673,373 | |||||||||
| Total liabilities, redeemable non-controlling interests, and stockholders' equity | $9,001,151 | $9,210,861 | |||||||||
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 7 | |||||||
| Income Statements | ||
| AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
| SECOND QUARTER ENDED | YEAR TO DATE | FULL YEAR | |||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| Rental income | $270,550 | $287,070 | $538,125 | $575,927 | $1,138,056 | ||||||||||||||||||||||||
| Interest income | 3,266 | 3,449 | 6,978 | 7,180 | 14,275 | ||||||||||||||||||||||||
| Other operating | 8,033 | 6,983 | 15,736 | 13,371 | 28,215 | ||||||||||||||||||||||||
| Total revenues | 281,849 | 297,502 | 560,839 | 596,478 | 1,180,546 | ||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||
| Property operating | 98,981 | 104,197 | 199,039 | 214,094 | 424,855 | ||||||||||||||||||||||||
| General and administrative | 14,361 | 23,482 | 31,704 | 37,011 | 72,569 | ||||||||||||||||||||||||
Normalizing items 1 | (1,899) | (10,302) | (9,461) | (10,804) | (26,318) | ||||||||||||||||||||||||
| Normalized general and administrative | 12,462 | 13,180 | 22,243 | 26,207 | 46,251 | ||||||||||||||||||||||||
| Transaction costs | 1,473 | 593 | 2,410 | 1,604 | 2,029 | ||||||||||||||||||||||||
| Depreciation and amortization | 128,065 | 153,476 | 257,051 | 309,510 | 588,186 | ||||||||||||||||||||||||
| Total expenses | 242,880 | 281,748 | 490,204 | 562,219 | 1,087,639 | ||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||
| Interest expense before merger-related fair value | (34,992) | (42,766) | (67,891) | (87,131) | (166,396) | ||||||||||||||||||||||||
| Merger-related fair value adjustment | (10,154) | (10,580) | (21,145) | (21,026) | (42,593) | ||||||||||||||||||||||||
| Interest expense | (45,146) | (53,346) | (89,036) | (108,157) | (208,989) | ||||||||||||||||||||||||
| Gain on sales of real estate properties and other assets | 3,713 | 20,004 | 14,490 | 22,907 | 235,389 | ||||||||||||||||||||||||
| Loss on extinguishment of debt | (1,698) | — | (1,718) | — | (451) | ||||||||||||||||||||||||
| Impairment of real estate assets and credit loss recoveries (reserves) | (42,741) | (142,348) | (41,757) | (154,429) | (364,598) | ||||||||||||||||||||||||
| Equity income (loss) from unconsolidated joint ventures | 2,929 | 158 | 3,425 | 159 | (188) | ||||||||||||||||||||||||
| Interest and other income (expense), net | 19 | (366) | 27 | (271) | (3,555) | ||||||||||||||||||||||||
| Total other income (expense) | (82,924) | (175,898) | (114,569) | (239,791) | (342,392) | ||||||||||||||||||||||||
| Net loss | $(43,955) | $(160,144) | $(43,934) | $(205,532) | $(249,485) | ||||||||||||||||||||||||
| Net loss attributable to non-controlling interests | 441 | 2,293 | 364 | 2,808 | 3,414 | ||||||||||||||||||||||||
| Net loss attributable to common stockholders | $(43,514) | $(157,851) | $(43,570) | $(202,724) | $(246,071) | ||||||||||||||||||||||||
| Basic earnings per common share | $(0.13) | $(0.45) | $(0.13) | $(0.58) | $(0.71) | ||||||||||||||||||||||||
| Diluted earnings per common share | $(0.13) | $(0.45) | $(0.13) | $(0.58) | $(0.71) | ||||||||||||||||||||||||
| Weighted average common shares outstanding - basic | 342,301 | 349,628 | 344,856 | 349,584 | 349,798 | ||||||||||||||||||||||||
Weighted average common shares outstanding - diluted 2 | 342,301 | 349,628 | 344,856 | 349,584 | 349,798 | ||||||||||||||||||||||||
1Normalizing items primarily include restructuring, severance-related costs and other.
2Potential common shares are not included in the computation of diluted earnings per share when a loss exists (or when dividends paid are greater than income), as the effect would be an antidilutive per share amount. As a result, the outstanding limited partnership units in the Company's operating partnership ("OP"), totaling 4,247,299 units were not included.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 8 | |||||||
| FFO, Normalized FFO, & FAD | ||
| AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
| SECOND QUARTER ENDED | YEAR TO DATE | FULL YEAR | |||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2025 | |||||||||||||||||||||||||
| Net loss attributable to common stockholders | $(43,514) | $(157,851) | $(43,570) | $(202,724) | $(246,071) | ||||||||||||||||||||||||
| Net loss attributable to common stockholders per diluted share | $(0.13) | $(0.45) | $(0.13) | $(0.58) | $(0.71) | ||||||||||||||||||||||||
| Gain on sales of real estate assets | (3,713) | (20,004) | (14,490) | (22,907) | (235,389) | ||||||||||||||||||||||||
| Impairments of real estate assets | 42,741 | 140,877 | 42,757 | 151,022 | 361,090 | ||||||||||||||||||||||||
| Real estate depreciation and amortization | 126,955 | 152,936 | 254,876 | 308,224 | 586,146 | ||||||||||||||||||||||||
| Non-controlling loss from operating partnership units | (537) | (2,293) | (547) | (2,892) | (3,497) | ||||||||||||||||||||||||
| Unconsolidated JV depreciation, amortization, gain and impairment | 4,210 | 6,706 | 10,814 | 13,422 | 27,769 | ||||||||||||||||||||||||
| NAREIT FFO | $126,142 | $120,371 | $249,840 | $244,145 | $490,048 | ||||||||||||||||||||||||
| NAREIT FFO per common share - diluted | $0.36 | $0.34 | $0.71 | $0.69 | $1.38 | ||||||||||||||||||||||||
| Transaction costs | 1,473 | 593 | 2,410 | 1,604 | 2,029 | ||||||||||||||||||||||||
| Debt financing costs | 1,776 | — | 1,892 | — | 5,107 | ||||||||||||||||||||||||
| Restructuring and severance-related charges | 3,021 | 10,302 | 10,583 | 10,804 | 26,318 | ||||||||||||||||||||||||
| Merger-related fair value adjustment | 10,154 | 10,580 | 21,145 | 21,025 | 42,593 | ||||||||||||||||||||||||
| Other | 1,137 | 1,890 | 2,215 | 3,880 | 2,851 | ||||||||||||||||||||||||
Normalized FFO | $143,703 | $143,736 | $288,085 | $281,458 | $568,946 | ||||||||||||||||||||||||
| Normalized FFO per common share - diluted | $0.41 | $0.41 | $0.82 | $0.80 | $1.61 | ||||||||||||||||||||||||
| Non-real estate depreciation and amortization | 789 | 1,184 | 1,452 | 2,452 | 6,114 | ||||||||||||||||||||||||
| Non-cash interest amortization, net | 1,380 | 1,130 | 2,747 | 2,348 | 5,126 | ||||||||||||||||||||||||
| Straight-line amortization, net | (13,716) | (8,022) | (24,007) | (15,913) | (29,392) | ||||||||||||||||||||||||
| Stock-based compensation | 4,420 | 3,887 | 8,348 | 6,915 | 13,609 | ||||||||||||||||||||||||
| Unconsolidated JV non-cash items | (164) | (356) | (254) | (609) | (1,420) | ||||||||||||||||||||||||
| Other | — | 130 | — | 224 | 952 | ||||||||||||||||||||||||
| Maintenance capex | (27,052) | (26,335) | (54,153) | $(59,301) | (115,633) | ||||||||||||||||||||||||
| FAD | $109,360 | $115,354 | $222,218 | $217,574 | $448,302 | ||||||||||||||||||||||||
| Quarterly dividends and OP distributions | $83,354 | $110,486 | $168,168 | $220,326 | $391,368 | ||||||||||||||||||||||||
FFO wtd avg common shares outstanding - diluted 1 | 347,161 | 354,078 | 349,672 | 353,814 | 354,454 | ||||||||||||||||||||||||
1The Company utilizes the treasury stock method, which includes the dilutive effect of nonvested share-based awards outstanding of 613,021 for the three months ended June 30, 2026. Also includes the diluted impact of 4,247,299 OP units outstanding.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 9 | |||||||
| At a Glance | ||
| DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE DATA | ||
| PROPERTIES |  | ||||||||||||||||
| Total Properties | 562 | ||||||||||||||||
| Total Square Feet (in millions) | 32.8 | ||||||||||||||||
| Number of markets | 49 | ||||||||||||||||
| % of Cash NOI in Company's Top 20 Markets | 77 | % | |||||||||||||||
| KEY CREDIT METRICS (SENIOR UNSECURED DEBT) | |||||||||||||||||
| Moody's | Baa2 | ||||||||||||||||
| S&P Global | BBB | ||||||||||||||||
| Run Rate Net Debt to Adjusted EBITDA | 5.6x | ||||||||||||||||
| Net Debt to Enterprise Value | 37 | % | |||||||||||||||
| TOTAL CAPITALIZATION AS OF JUNE 30, 2026 | |||||||||||||||||
| Common Stock (NYSE: HR) | 342,720 | ||||||||||||||||
| OP Units | 4,238 | ||||||||||||||||
| Fully Diluted Shares and Units | 346,958 | ||||||||||||||||
| Share Price as of 6/30/2026 | $20.17 | ||||||||||||||||
| Market Capitalization | $6,998,143 | ||||||||||||||||
| Consolidated Net Debt | $4,147,957 | ||||||||||||||||
| Share of Unconsolidated JV Net Debt | $33,278 | ||||||||||||||||
| Enterprise Value | $11,179,378 | ||||||||||||||||
All figures represent Total Properties. See Glossary for additional information on terms and definitions.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 10 | |||||||
| 2026 Guidance | ||
| DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE DATA | ||
| 2026 EARNINGS GUIDANCE | PRIOR (APRIL 2026) | CURRENT | ||||||||||||||||||
| LOW | HIGH | LOW | HIGH | |||||||||||||||||
| Earnings per share | $(0.05) | $0.05 | $(0.15) | $(0.11) | ||||||||||||||||
| NAREIT FFO per share | $1.45 | $1.51 | $1.45 | $1.51 | ||||||||||||||||
Normalized FFO per share | $1.59 | $1.65 | $1.62 | $1.66 | ||||||||||||||||
| Same store cash NOI growth | 3.75 | % | 4.75 | % | 4.25 | % | 5.00 | % | ||||||||||||
| KEY ASSUMPTIONS | PRIOR (APRIL 2026) | CURRENT | ||||||||||||||||||
| LOW | HIGH | LOW | HIGH | |||||||||||||||||
| Normalized general and administrative | $43 | $47 | $43 | $47 | ||||||||||||||||
Interest expense, net of capitalized interest 1 | $135 | $145 | $130 | $140 | ||||||||||||||||
| Total maintenance capex | $105 | $125 | $105 | $125 | ||||||||||||||||
SOURCES AND USES 2 | PRIOR (APRIL 2026) | CURRENT | ||||||||||||||||||
| MIDPOINT | MIDPOINT | |||||||||||||||||||
| Asset sales and loan receivable repayments | $175 | $265 | ||||||||||||||||||
| Debt issuance (net proceeds) and RCF/CP Drawdowns | 675 | 700 | ||||||||||||||||||
| FAD less dividends | 100 | 100 | ||||||||||||||||||
| Total Sources | $950 | $1,065 | ||||||||||||||||||
| Bond repayments | $600 | $600 | ||||||||||||||||||
Investments and share repurchases 3 | 125 | 240 | ||||||||||||||||||
| Development, redevelopment, and 1st gen capital | 225 | 225 | ||||||||||||||||||
| Total Uses | $950 | $1,065 | ||||||||||||||||||
| Target adjusted net debt to EBITDA | mid-5x | mid-5x | ||||||||||||||||||
Diluted shares outstanding 4 | 351 | 348 | ||||||||||||||||||
The 2026 annual guidance range reflects the Company's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, and operating and general and administrative expenses. The Company's guidance does not contemplate impacts from gains or losses from dispositions, potential impairments, or debt extinguishment costs, if any. The Company's guidance also does not include any future acquisitions, developments or share issuances or repurchases, other than as discussed above. There can be no assurance that the Company's actual results will not be materially higher or lower than these expectations. If actual results or timing vary from these assumptions, the Company's expectations may change.
1Excludes the merger-related fair value adjustment and interest expense associated with unconsolidated joint ventures.
2Based on approximate midpoints.
3Includes year-to-date announced investments and share repurchases.
4Includes the diluted impact of the OP units and 2026 share repurchases.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 11 | |||||||
| Portfolio Overview | ||
| DOLLARS IN THOUSANDS | ||
| TOTAL PORTFOLIO BY MARKET | |||||||||||||||||||||||||||||
| COUNT | WHOLLY-OWNED | JOINT VENTURES | TOTAL PORTFOLIO | ||||||||||||||||||||||||||
| MARKET | MSA RANK | TOTAL SQUARE FEET | % OF TTM CASH NOI | TOTAL SQUARE FEET | % OF TTM CASH NOI | TOTAL SQUARE FEET | % OF TTM CASH NOI | ||||||||||||||||||||||
| Dallas, TX | 4 | 47 | 2,874,187 | 10.1 | % | 581,096 | 15.8 | % | 3,455,283 | 10.4 | % | ||||||||||||||||||
| Seattle, WA | 15 | 29 | 1,315,777 | 7.3 | % | 257,035 | 5.8 | % | 1,572,812 | 7.2 | % | ||||||||||||||||||
| Charlotte, NC | 21 | 31 | 1,722,661 | 5.7 | % | — | — | % | 1,722,661 | 5.4 | % | ||||||||||||||||||
| Houston, TX | 5 | 27 | 1,815,173 | 5.4 | % | 249,158 | 3.8 | % | 2,064,331 | 5.3 | % | ||||||||||||||||||
| Denver, CO | 19 | 29 | 1,344,797 | 5.0 | % | 306,949 | 5.4 | % | 1,651,746 | 5.0 | % | ||||||||||||||||||
| Los Angeles, CA | 2 | 27 | 840,371 | 4.1 | % | 786,520 | 17.3 | % | 1,626,891 | 4.7 | % | ||||||||||||||||||
| Atlanta, GA | 6 | 25 | 1,231,491 | 4.4 | % | 96,108 | 2.3 | % | 1,327,599 | 4.3 | % | ||||||||||||||||||
| Phoenix, AZ | 10 | 33 | 1,251,557 | 3.2 | % | 101,086 | 9.5 | % | 1,352,643 | 3.6 | % | ||||||||||||||||||
| Raleigh, NC | 41 | 27 | 978,218 | 3.5 | % | 198,485 | 2.9 | % | 1,176,703 | 3.4 | % | ||||||||||||||||||
| Boston, MA | 11 | 13 | 718,196 | 3.5 | % | — | — | % | 718,196 | 3.3 | % | ||||||||||||||||||
| Indianapolis, IN | 33 | 37 | 1,057,909 | 2.9 | % | 357,915 | 10.8 | % | 1,415,824 | 3.3 | % | ||||||||||||||||||
| Nashville, TN | 35 | 12 | 1,146,231 | 3.1 | % | 106,981 | 1.9 | % | 1,253,212 | 3.0 | % | ||||||||||||||||||
| Washington, DC | 7 | 9 | 692,107 | 2.7 | % | — | — | % | 692,107 | 2.6 | % | ||||||||||||||||||
| Miami, FL | 8 | 11 | 746,463 | 2.6 | % | 52,178 | 1.0 | % | 798,641 | 2.5 | % | ||||||||||||||||||
| Austin, TX | 25 | 11 | 644,695 | 2.5 | % | 129,879 | 2.1 | % | 774,574 | 2.5 | % | ||||||||||||||||||
| Tampa, FL | 17 | 17 | 830,843 | 2.6 | % | — | — | % | 830,843 | 2.4 | % | ||||||||||||||||||
| San Francisco, CA | 13 | 9 | 448,033 | 2.3 | % | 110,865 | 4.6 | % | 558,898 | 2.4 | % | ||||||||||||||||||
| Orlando, FL | 20 | 7 | 416,475 | 2.1 | % | — | — | % | 416,475 | 2.0 | % | ||||||||||||||||||
| New York, NY | 1 | 14 | 556,986 | 2.1 | % | 57,411 | 1.1 | % | 614,397 | 2.0 | % | ||||||||||||||||||
| Colorado Springs, CO | 79 | 13 | 594,497 | 2.0 | % | 51,466 | 1.5 | % | 645,963 | 2.0 | % | ||||||||||||||||||
| Other (29 Markets) | 134 | 7,361,457 | 22.9 | % | 813,470 | 14.2 | % | 8,174,927 | 22.7 | % | |||||||||||||||||||
| Total | 562 | 28,588,124 | 100.0 | % | 4,256,602 | 100.0 | % | 32,844,726 | 100.0 | % | |||||||||||||||||||
| SUMMARY METRICS | |||||||||||||||||||||||||||||
| WHOLLY-OWNED | JOINT VENTURES | TOTAL PORTFOLIO | |||||||||||||||||||||||||||
| Number of properties | 498 | 64 | 562 | ||||||||||||||||||||||||||
| Square feet | 28,588,124 | 4,256,602 | 32,844,726 | ||||||||||||||||||||||||||
| % of square feet | 87.0% | 13.0% | 100% | ||||||||||||||||||||||||||
| Investment (at share) | $10,014,330 | $629,550 | $10,643,880 | ||||||||||||||||||||||||||
| Quarterly cash NOI (at share) | $160,792 | $9,208 | $170,000 | ||||||||||||||||||||||||||
| % of quarterly cash NOI (at share) | 94.6% | 5.4% | 100.0% | ||||||||||||||||||||||||||
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 12 | |||||||
| Lease Maturity Schedule | ||
| LEASE MATURITY SCHEDULE | |||||||||||||||||||||||||||||
| WHOLLY-OWNED | JOINT VENTURES | TOTAL | |||||||||||||||||||||||||||
| # OF LEASES | OCCUPIED SF | % OF TOTAL | # OF LEASES | OCCUPIED SF | % OF TOTAL | OCCUPIED SF | % OF TOTAL | % OF TOTAL (AT SHARE) | |||||||||||||||||||||
| Month-to-month | 75 | 127,050 | 0.5 | % | 5 | 13,399 | 0.3 | % | 140,449 | 0.5 | % | 0.5 | % | ||||||||||||||||
| 3Q 2026 | 106 | 277,042 | 1.1 | % | 16 | 56,035 | 1.5 | % | 333,077 | 1.1 | % | 1.2 | % | ||||||||||||||||
| 4Q 2026 | 144 | 430,866 | 1.7 | % | 11 | 24,355 | 0.6 | % | 455,221 | 1.5 | % | 1.7 | % | ||||||||||||||||
| 2026 | 250 | 707,908 | 2.8 | % | 27 | 80,390 | 2.1 | % | 788,298 | 2.6 | % | 2.9 | % | ||||||||||||||||
| 2027 | 909 | 3,150,128 | 12.1 | % | 88 | 414,480 | 10.8 | % | 3,564,608 | 12.0 | % | 12.2 | % | ||||||||||||||||
| 2028 | 906 | 3,196,301 | 12.3 | % | 78 | 264,385 | 6.9 | % | 3,460,686 | 11.6 | % | 12.3 | % | ||||||||||||||||
| 2029 | 773 | 3,349,582 | 12.9 | % | 101 | 592,521 | 15.4 | % | 3,942,103 | 13.2 | % | 13.2 | % | ||||||||||||||||
| 2030 | 668 | 3,052,441 | 11.8 | % | 73 | 311,206 | 8.1 | % | 3,363,647 | 11.3 | % | 11.7 | % | ||||||||||||||||
| 2031 | 599 | 2,735,267 | 10.5 | % | 93 | 385,934 | 10.0 | % | 3,121,201 | 10.5 | % | 10.6 | % | ||||||||||||||||
| 2032 | 354 | 2,203,793 | 8.5 | % | 43 | 372,133 | 9.7 | % | 2,575,926 | 8.6 | % | 8.6 | % | ||||||||||||||||
| 2033 | 266 | 1,125,394 | 4.3 | % | 30 | 212,576 | 5.5 | % | 1,337,970 | 4.5 | % | 4.4 | % | ||||||||||||||||
| 2034 | 226 | 1,322,483 | 5.1 | % | 46 | 262,175 | 6.8 | % | 1,584,658 | 5.3 | % | 5.1 | % | ||||||||||||||||
| 2035 | 250 | 1,544,212 | 6.0 | % | 27 | 148,140 | 3.9 | % | 1,692,352 | 5.7 | % | 5.8 | % | ||||||||||||||||
| Thereafter | 414 | 3,428,976 | 13.2 | % | 59 | 790,165 | 20.5 | % | 4,219,141 | 14.2 | % | 12.8 | % | ||||||||||||||||
| Total occupied | 5,690 | 25,943,535 | 100.0 | % | 670 | 3,847,504 | 100.0 | % | 29,791,039 | 100.0 | % | 100.0 | % | ||||||||||||||||
| WALT (months) | 62.9 | 74.4 | 64.4 | ||||||||||||||||||||||||||
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 13 | |||||||
| Tenant Overview | ||
| TOTAL PORTFOLIO BY HEALTH SYSTEM (INCLUDING JVs) | ||||||||||||||||||||||||||||||||
| FULL BUILDING METRICS | DIRECT LEASED BY HEALTH SYSTEM | |||||||||||||||||||||||||||||||
| HEALTH SYSTEM | SYSTEM RANK 1 | CREDIT RATING | ON/ADJACENT | OFF-CAMPUS AFFILIATED | TOTAL SQUARE FEET | # OF BUILDINGS | % OF TTM CASH NOI | SQUARE FEET | % OF LEASED SF | # OF LEASES | ||||||||||||||||||||||
| HCA | 1 | BBB/Baa2 | 2,051,033 | 769,842 | 2,820,875 | 41 | 7.3 | % | 719,427 | 2.4 | % | 127 | ||||||||||||||||||||
| Baylor Scott & White | 21 | AA-/Aa2 | 2,359,530 | 66,376 | 2,425,906 | 31 | 7.0 | % | 1,321,740 | 4.4 | % | 178 | ||||||||||||||||||||
| CommonSpirit | 4 | A-/A3 | 1,442,804 | 535,300 | 1,978,104 | 37 | 6.9 | % | 779,544 | 2.6 | % | 144 | ||||||||||||||||||||
| Ascension Health | 3 | AA/Aa3 | 1,609,984 | 97,551 | 1,707,535 | 17 | 4.4 | % | 739,512 | 2.5 | % | 105 | ||||||||||||||||||||
| Advocate Health | 14 | AA/Aa2 | 751,444 | 240,910 | 992,354 | 17 | 3.9 | % | 851,868 | 2.9 | % | 84 | ||||||||||||||||||||
| Wellstar Health System | 75 | A+/A1 | 918,394 | — | 918,394 | 18 | 3.1 | % | 607,612 | 2.0 | % | 81 | ||||||||||||||||||||
| UW Medicine (Seattle) | 91 | AA+/Aa1 | 461,363 | 162,057 | 623,420 | 10 | 2.9 | % | 296,643 | 1.0 | % | 32 | ||||||||||||||||||||
| AdventHealth | 11 | AA/Aa2 | 638,562 | 115,585 | 754,147 | 12 | 2.7 | % | 442,605 | 1.5 | % | 111 | ||||||||||||||||||||
| MultiCare Health System | 82 | A/-- | 492,249 | — | 492,249 | 8 | 2.1 | % | 197,180 | 0.7 | % | 24 | ||||||||||||||||||||
| Providence Health & Services | 5 | A/A3 | 602,504 | 31,601 | 634,105 | 12 | 2.0 | % | 247,027 | 0.8 | % | 44 | ||||||||||||||||||||
| Tenet Healthcare Corporation | 6 | BB-/Ba2 | 545,035 | 235,399 | 780,434 | 13 | 1.8 | % | 134,402 | 0.5 | % | 22 | ||||||||||||||||||||
| WakeMed | 185 | --/A2 | 374,207 | 101,597 | 475,804 | 13 | 1.7 | % | 152,831 | 0.5 | % | 23 | ||||||||||||||||||||
| Indiana University Health | 26 | AA/Aa2 | 416,978 | 301,320 | 718,298 | 11 | 1.7 | % | 387,649 | 1.3 | % | 51 | ||||||||||||||||||||
| Banner Health | 24 | AA-/-- | 749,075 | 65,322 | 814,397 | 25 | 1.7 | % | 118,225 | 0.4 | % | 33 | ||||||||||||||||||||
| Baptist Memorial Health Care | 89 | A-2/-- | 482,065 | 150,228 | 632,293 | 9 | 1.6 | % | 437,635 | 1.5 | % | 47 | ||||||||||||||||||||
| Novant Health | 42 | A+/A1 | 473,471 | 138,035 | 611,506 | 10 | 1.6 | % | 193,957 | 0.7 | % | 26 | ||||||||||||||||||||
| University of California Health | 9 | AA/Aa2 | 377,163 | — | 377,163 | 7 | 1.5 | % | 25,280 | 0.1 | % | 8 | ||||||||||||||||||||
| Select Specialty Hospital | None | B+/B3 | 224,812 | — | 224,812 | 4 | 1.5 | % | 190,847 | 0.6 | % | 9 | ||||||||||||||||||||
| Tufts Medicine | 162 | BBB-/Aa3 | 252,087 | — | 252,087 | 2 | 1.4 | % | 254,680 | 0.9 | % | 3 | ||||||||||||||||||||
| Sutter Health | 12 | A+/A1 | 173,918 | 96,987 | 270,905 | 4 | 1.4 | % | 110,448 | 0.4 | % | 24 | ||||||||||||||||||||
| Other (64 Credit Rated) | 7,027,851 | 3,170,645 | 10,198,496 | 192 | 32.3 | % | 4,647,984 | 15.6 | % | 605 | ||||||||||||||||||||||
| Subtotal - credit rated | 22,424,529 | 6,278,755 | 28,703,284 | 493 | 90.5 | % | 12,857,096 | 43.3 | % | 1,781 | ||||||||||||||||||||||
| Other non-credit rated | 659,954 | 378,071 | 1,038,025 | 19 | 2.5 | % | 351,854 | 1.2 | % | |||||||||||||||||||||||
| Off-campus non-affiliated | — | 3,103,417 | 3,103,417 | 50 | 7.0 | % | — | — | % | |||||||||||||||||||||||
| Total | 23,084,483 | 9,760,243 | 32,844,726 | 562 | 100.0 | % | 13,208,950 | 44.5 | % | |||||||||||||||||||||||
1Ranked by revenue based on Modern Healthcare's Healthcare Systems Financials Database.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 14 | |||||||
| Same Store Statistics | ||
| DOLLARS AND SQUARE FEET IN THOUSANDS | ||
| PORTFOLIO CASH NOI AND OCCUPANCY | ||||||||||||||||||||
| OCCUPANCY % | ||||||||||||||||||||
| COUNT | SF | 2Q 2026 CASH NOI | 2Q 2026 | 2Q 2025 | 1Q 2026 | |||||||||||||||
| Wholly-owned | 469 | 26,003 | $155,112 | 92.6 | % | 91.5 | % | 92.2 | % | |||||||||||
| Joint venture | 58 | 3,725 | 7,638 | 93.6 | % | 92.1 | % | 93.8 | % | |||||||||||
| Same store | 527 | 29,728 | $162,750 | 92.7 | % | 91.6 | % | 92.4 | % | |||||||||||
| Acquisitions | 1 | 144 | 282 | 100.0 | % | — | % | 100.0 | % | |||||||||||
| Developments | 2 | 224 | 694 | 60.5 | % | 45.1 | % | 60.5 | % | |||||||||||
| Development completions | 2 | 107 | 899 | 89.6 | % | 82.1 | % | 89.6 | % | |||||||||||
| Redevelopments | 24 | 2,131 | 4,024 | 67.8 | % | 78.2 | % | 70.7 | % | |||||||||||
| Redevelopment completions | 6 | 511 | 1,351 | 80.5 | % | 72.4 | % | 79.9 | % | |||||||||||
| Total portfolio | 562 | 32,845 | $170,000 | 90.7 | % | 90.2 | % | 90.6 | % | |||||||||||
| Joint ventures | 64 | 4,257 | 9,208 | 90.4 | % | 88.2 | % | 90.5 | % | |||||||||||
| Total wholly-owned | 498 | 28,588 | $160,792 | 90.7 | % | 90.5 | % | 90.6 | % | |||||||||||
| SAME STORE CASH NOI | |||||||||||||||||||||||||||||
| QUARTER ENDED | YEAR TO DATE | ||||||||||||||||||||||||||||
| Based on current same store pool of 527 properties | 2Q 2026 | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | YOY Growth | 2026 | 2025 | YOY Growth | ||||||||||||||||||||
| Rental revenues | $191,694 | $189,899 | $187,324 | $185,455 | $182,962 | 4.8% | $381,593 | $363,055 | 5.1% | ||||||||||||||||||||
| Cash NOI | $162,750 | $160,897 | $158,303 | $156,308 | $154,794 | 5.1% | $323,647 | $305,135 | 6.1% | ||||||||||||||||||||
| Period end occupancy | 92.7 | % | 92.4 | % | 92.4 | % | 92.2 | % | 91.6 | % | +110.0 | bps | 92.7 | % | 91.6 | % | +110.0 | bps | |||||||||||
| SAME STORE METRICS | OTHER KEY SAME STORE METRICS | ||||||||||||||||||||||||||||
| 2Q 2026 | YTD 2026 | FY 2025 | AS OF JUNE 30, 2026 | ||||||||||||||||||||||||||
| Tenant retention rate (renewals) | 88.5 | % | 91.4 | % | 81.5 | % | Ownership type | Lease structure | |||||||||||||||||||||
| Cash leasing spreads (renewals) | 4.8 | % | 4.4 | % | 3.1 | % | Ground lease | 43.5 | % | Gross | 6.8 | % | |||||||||||||||||
| NOI Margin (Gross Recovery Method) | 64.6 | % | 64.4 | % | 64.2 | % | Fee simple | 56.5 | % | Modified gross | 24.5 | % | |||||||||||||||||
| NOI Margin (Net Recovery Method) | 84.9 | % | 84.8 | % | 84.2 | % | Tenant type | Net & Absolute Net | 68.7 | % | |||||||||||||||||||
| Hospital | 51.4 | % | |||||||||||||||||||||||||||
| Physician and other | 48.6 | % | Escalators | 2.9 | % | ||||||||||||||||||||||||
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 15 | |||||||
| Capital Funding & Commitments | ||
| DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA | ||
| ACQUISITION AND RE/DEVELOPMENT FUNDING | |||||||||||||||||
| SECOND QUARTER ENDED | YEAR TO DATE | FULL YEAR | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2025 | |||||||||||||
Acquisitions 1 | $3,670 | $— | $21,490 | $— | $— | ||||||||||||
| Re/development | 24,230 | 42,040 | 49,335 | 75,476 | 140,859 | ||||||||||||
| 1st generation TI/LC/Capital & acquisition capex | 20,157 | 33,369 | 40,536 | 48,508 | 107,195 | ||||||||||||
| MAINTENANCE CAPITAL EXPENDITURES FUNDING | |||||||||||||||||
| SECOND QUARTER ENDED | YEAR TO DATE | FULL YEAR | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2025 | |||||||||||||
| 2nd generation TI | $7,227 | $12,036 | $15,936 | $26,921 | $47,439 | ||||||||||||
| Leasing commissions paid | 10,264 | 5,187 | 24,440 | 16,581 | 31,663 | ||||||||||||
| Building capital | 9,561 | 9,112 | 13,777 | 15,799 | 36,531 | ||||||||||||
| Maintenance Capital Expenditures | $27,052 | $26,335 | $54,153 | $59,301 | $115,633 | ||||||||||||
| % of Cash NOI | 15.9 | % | 14.1 | % | 15.9 | % | 16.1 | % | 15.8 | % | |||||||
| TOTAL COMPANY LEASE EXECUTIONS | |||||||||||||||||
| SECOND QUARTER ENDED | YEAR TO DATE | FULL YEAR | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2025 | |||||||||||||
| Renewals (SF) | 1,148,847 | 1,025,747 | 2,874,498 | 1,799,033 | 4,152,880 | ||||||||||||
| 2nd generation TI/square foot/lease year | $2.79 | $2.42 | $2.61 | $2.33 | $2.43 | ||||||||||||
| Leasing commissions/square foot/lease year | $2.13 | $1.73 | $1.76 | $1.65 | $1.46 | ||||||||||||
| Renewal commitments as a % of annual net rent | 16.7 | % | 17.0 | % | 14.2 | % | 16.2 | % | 15.3 | % | |||||||
| WALT (in months) | 66.1 | 51.8 | 84.6 | 52.6 | 60.8 | ||||||||||||
| New leases (SF) | 349,763 | 452,088 | 636,077 | 822,406 | 1,579,998 | ||||||||||||
| 2nd generation TI/square foot/lease year | $8.04 | $9.83 | $8.44 | $9.43 | $9.08 | ||||||||||||
| Leasing commissions/square foot/lease year | $1.97 | $2.12 | $1.98 | $2.11 | $2.05 | ||||||||||||
| New lease commitments as a % of annual net rent | 37.0 | % | 54.6 | % | 41.1 | % | 50.9 | % | 47.6 | % | |||||||
| WALT (in months) | 78.5 | 92.2 | 78.5 | 92.9 | 90.8 | ||||||||||||
| All (SF) | 1,498,610 | 1,477,835 | 3,510,575 | 2,621,439 | 5,732,878 | ||||||||||||
| Leasing commitments as a % of annual net rent | 21.7 | % | 32.1 | % | 18.1 | % | 30.7 | % | 26.2 | % | |||||||
| WALT (in months) | 69.0 | 64.2 | 83.5 | 65.2 | 69.1 | ||||||||||||
1Acquisitions include properties acquired through joint ventures at the Company's ownership percentage. Excludes acquisitions that occurred subsequent to quarter end.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 16 | |||||||
| Investment Activity | ||
| DOLLARS IN THOUSANDS | ||
| ACQUISITION ACTIVITY DETAIL | |||||||||||||||||||||||
| LOCATION | COUNT | CLOSING | SQUARE FEET | OCCUPIED % | ACQUISITION PRICE | % OWNERSHIP | PRICE AT SHARE | ||||||||||||||||
| Acquisitions | |||||||||||||||||||||||
| Birmingham, AL | 1 | 3/27/2026 | 143,576 | 100 | % | $89,100 | 20 | % | $17,820 | ||||||||||||||
Charlotte, NC 1 | — | 4/24/2026 | 12,418 | 100 | % | 3,670 | 100 | % | 3,670 | ||||||||||||||
| 2Q YTD Total | 1 | 155,994 | 100% | $92,770 | $21,490 | ||||||||||||||||||
| Greenwich, CT | 1 | 7/28/2026 | 106,032 | 97 | % | 64,700 | 20 | % | 12,940 | ||||||||||||||
| Port St. Lucie, FL | 1 | 7/28/2026 | 41,175 | 94 | % | 21,425 | 20 | % | 4,285 | ||||||||||||||
| Total 2026 acquisition activity | 3 | 303,201 | 98 | % | $178,895 | $38,715 | |||||||||||||||||
| Acquisition Initial Cash Yield: 6.5%-7.5% | |||||||||||||||||||||||
| DISPOSITION ACTIVITY DETAIL | |||||||||||||||||||||||
| LOCATION | COUNT | CLOSING | SQUARE FEET | OCCUPIED % | SALES PRICE | % OWNERSHIP | PRICE AT SHARE | ||||||||||||||||
| Dispositions | |||||||||||||||||||||||
| Atlanta, GA | 1 | 1/14/2026 | 60,039 | 91 | % | $21,900 | 100 | % | $21,900 | ||||||||||||||
| Oklahoma City, OK | 2 | 3/3/2026 | 186,301 | 41 | % | 11,500 | 100 | % | 11,500 | ||||||||||||||
| Minneapolis, MN | 1 | 4/27/2026 | 92,139 | 86 | % | 18,700 | 50 | % | 9,350 | ||||||||||||||
| Atlanta, GA | Land | 5/27/2026 | — | — | % | 2,750 | 100 | % | 2,750 | ||||||||||||||
| Austin, TX | 1 | 6/12/2026 | 12,880 | 100 | % | 8,900 | 100 | % | 8,900 | ||||||||||||||
| Amarillo, TX | 1 | 6/18/2026 | 64,756 | 32 | % | 4,000 | 100 | % | 4,000 | ||||||||||||||
| 2Q YTD Total | 6 | 416,115 | 59 | % | $67,750 | $58,400 | |||||||||||||||||
| Dallas, TX | Land | 7/2/2026 | — | — | % | 5,464 | 100 | % | 5,464 | ||||||||||||||
Denver, CO 2 | Land | Under Contract | — | — | % | 16,000 | 100 | % | 16,000 | ||||||||||||||
Atlanta, GA 2 | 1 | Under Contract | 59,427 | 100 | % | 36,000 | 100 | % | 36,000 | ||||||||||||||
| Total 2026 disposition activity | 7 | 475,542 | 64 | % | $125,214 | $115,864 | |||||||||||||||||
Disposition Cash Yield: 5.0%-5.5% | |||||||||||||||||||||||
| MORTGAGE NOTE RECEIVABLE REPAYMENT | |||||||||||||||||||||||
| LOCATION | PAYOFF DATE | INTEREST RATE | PRINCIPAL REPAYMENT | ||||||||||||||||||||
| Los Angeles, CA | 4/30/2026 | 6.50 | % | $45,000 | |||||||||||||||||||
1Represents a condominium unit fully leased by Novant Health under a long-term lease in an existing building, bringing the Company's ownership to 93%.
2Under contract and expected to transact in 2026.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 17 | |||||||
| Joint Ventures | ||
| DOLLARS IN THOUSANDS | ||
| JOINT VENTURE PORTFOLIOS | |||||||||||||||||||||||||||||||||||||||||
| WA OWNERSHIP INTEREST | 2Q 2026 | BALANCE SHEET AS OF 6/30/2026 | |||||||||||||||||||||||||||||||||||||||
| JOINT VENTURE | # OF PROPERTIES | SQUARE FEET | OCCUPANCY | CASH NOI | CASH NOI AT SHARE | SAME STORE NOI AT SHARE | REAL ESTATE INVESTMENT 1 | DEBT 1 | NET DEBT | DEBT AT SHARE | NET DEBT AT SHARE | INTEREST RATE | |||||||||||||||||||||||||||||
| KKR | 20 | % | 24 | 1,863,047 | 96.4 | % | $14,816 | $2,963 | $2,682 | $839,030 | $— | $(22,315) | $— | $(4,463) | — | % | |||||||||||||||||||||||||
| Nuveen | 41 | % | 26 | 1,386,043 | 88.2 | % | 7,812 | 2,942 | 2,942 | 576,141 | 74,679 | 71,022 | 14,936 | 13,484 | 5.9 | % | |||||||||||||||||||||||||
| CBRE | 20 | % | 4 | 283,880 | 62.5 | % | 1,290 | 258 | 208 | 135,210 | — | (3,660) | — | (732) | — | % | |||||||||||||||||||||||||
Other 2 | 58 | % | 10 | 723,632 | 90.2 | % | 5,420 | 3,045 | 1,806 | 345,674 | 67,743 | 62,970 | 27,097 | 24,989 | 5.3 | % | |||||||||||||||||||||||||
| Total | 64 | 4,256,602 | 90.4 | % | $29,338 | $9,208 | $7,638 | $1,896,055 | $142,422 | $108,017 | $42,033 | $33,278 | 5.6 | % | |||||||||||||||||||||||||||
1.Represents 100% of the real estate assets and debt of the joint ventures.
2.Ownership percentages are weighted based on investment.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 18 | |||||||
| Re/development Activity | ||
| DOLLARS IN THOUSANDS | ||
| DEVELOPMENTS | |||||||||||||||||
| MARKET | ASSOCIATED HEALTH SYSTEM | SQUARE FEET | CURRENT LEASED % | BUDGET | COST TO COMPLETE | ||||||||||||
| Raleigh, NC | UNC REX Health | 122,991 | 51 | % | $58,000 | $9,151 | |||||||||||
| Fort Worth, TX | Baylor Scott & White | 101,279 | 72 | % | 48,200 | 3,840 | |||||||||||
| Total development | 224,270 | 60 | % | $106,200 | $12,991 | ||||||||||||
| Projected stabilized yield: 7.0%-8.5% | |||||||||||||||||
| Estimated stabilization period post completion: 12 - 36 months. | |||||||||||||||||
| REDEVELOPMENTS | ||||||||||||||||||||
| MARKET | COUNT | SQUARE FEET | PROJECT SQUARE FEET | PROJECT LEASED % | BUDGET | COST TO COMPLETE | ||||||||||||||
| Houston, TX | 2 | 314,861 | 152,172 | 39 | % | $30,000 | $2,827 | |||||||||||||
| Boston, MA | 1 | 154,528 | 154,528 | 100 | % | 25,300 | 20,888 | |||||||||||||
| White Plains, NY | 1 | 65,726 | 44,634 | 85 | % | 24,900 | 242 | |||||||||||||
| Charlotte, NC | 1 | 122,388 | 83,581 | 52 | % | 19,200 | 17,401 | |||||||||||||
| Washington, DC | 1 | 57,323 | 24,034 | 82 | % | 15,200 | 664 | |||||||||||||
| Seattle, WA | 1 | 70,636 | 31,872 | 29 | % | 13,600 | 13,385 | |||||||||||||
| Raleigh, NC | 1 | 40,400 | 40,400 | 100 | % | 10,800 | 3,202 | |||||||||||||
| Houston, TX | 1 | 40,214 | 40,214 | 66 | % | 10,400 | 9,226 | |||||||||||||
| Denver, CO | 2 | 75,691 | 48,149 | 44 | % | 10,200 | 8,852 | |||||||||||||
| Port St. Lucie, FL | 1 | 36,076 | 34,734 | 20 | % | 9,400 | 6,991 | |||||||||||||
| Dallas, TX | 1 | 126,121 | 22,152 | 100 | % | 8,600 | 7,829 | |||||||||||||
| Denver, CO | 1 | 55,978 | 28,832 | 53 | % | 7,300 | 6,473 | |||||||||||||
| Other | 10 | 971,440 | 749,730 | 69 | % | 100,800 | 67,915 | |||||||||||||
| Total redevelopment | 24 | 2,131,382 | 1,455,032 | 67 | % | $285,700 | $165,895 | |||||||||||||
| Projected stabilized yield: 9.0%-12.0% | ||||||||||||||||||||
| Estimated stabilization period post completion: 12 - 36 months. | ||||||||||||||||||||
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 19 | |||||||
| Debt Metrics | ||
| DOLLARS IN THOUSANDS | ||
| SUMMARY OF INDEBTEDNESS | DEBT MATURITIES SCHEDULE AS OF JUNE 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||
| PRINCIPAL BALANCE | BALANCE 1 | MATURITY DATE | MONTHS TO MATURITY | CONTRACTUAL RATE | EFFECTIVE RATE | BANK LOANS/CP | SENIOR NOTES | MORTGAGE NOTES | TOTAL | |||||||||||||||||||||||||||||||||||
| SENIOR NOTES | $500,000 | $495,071 | 7/1/2027 | 12 | 3.75 | % | 4.76 | % | (3) | 2026 | $— | $— | $23,167 | $23,167 | ||||||||||||||||||||||||||||||
| 300,000 | 298,973 | 1/15/2028 | 19 | 3.63 | % | 3.85 | % | 2027 | — | 500,000 | — | 500,000 | ||||||||||||||||||||||||||||||||
| 650,000 | 602,994 | 2/15/2030 | 44 | 3.10 | % | 5.30 | % | (3) | 2028 | — | 300,000 | — | 300,000 | |||||||||||||||||||||||||||||||
| 299,500 | 297,824 | 3/15/2030 | 45 | 2.40 | % | 2.72 | % | 2029 | 500,000 | — | — | 500,000 | ||||||||||||||||||||||||||||||||
| 299,785 | 297,131 | 3/15/2031 | 57 | 2.05 | % | 2.25 | % | Thereafter | 276,000 | 2,749,285 | — | 3,025,285 | ||||||||||||||||||||||||||||||||
| 800,000 | 695,559 | 3/15/2031 | 57 | 2.00 | % | 5.13 | % | (3) | Total | $776,000 | $3,549,285 | $23,167 | $4,348,452 | |||||||||||||||||||||||||||||||
| 700,000 | 681,380 | 1/15/2032 | 67 | 3.00 | % | 3.53 | % | |||||||||||||||||||||||||||||||||||||
| $3,549,285 | $3,368,932 | 46 | 2.82 | % | 4.20 | % | ||||||||||||||||||||||||||||||||||||||
TERM LOANS 2 | $300,000 | 299,283 | 1/20/2029 | 30 | SOFR + 0.95% | 4.27 | % | (4) | ||||||||||||||||||||||||||||||||||||
| 200,000 | 199,751 | 7/20/2029 | 36 | SOFR + 0.95% | 4.42 | % | (4) | |||||||||||||||||||||||||||||||||||||
| — | — | 5/15/2029 | 34 | SOFR + 0.90% | N/A | (5) | ||||||||||||||||||||||||||||||||||||||
| $500,000 | $499,034 | 32 | 4.33 | % | ||||||||||||||||||||||||||||||||||||||||
$1.5B REVOLVING FACILITY & COMMERCIAL PAPER 2 | $276,000 | $275,823 | 7/25/2030 | 48 | various | 4.07 | % | (6) | ||||||||||||||||||||||||||||||||||||
| MORTGAGES | $23,167 | $23,155 | various | 4 | 3.81 | % | 3.94 | % | ||||||||||||||||||||||||||||||||||||
| $4,348,452 | $4,166,944 | 44 | 3.08 | % | 4.21 | % | ||||||||||||||||||||||||||||||||||||||
| SELECTED FINANCIAL COVENANTS | LIQUIDITY SOURCES | |||||||||||||||||||
| REQUIREMENT | PER DEBT COVENANTS | Cash | $18,987 | |||||||||||||||||
| Revolving facility and term loans | Revolving facility availability | 1,500,000 | ||||||||||||||||||
| Leverage ratio | Not greater than 60% | 39.0 | % | Delayed draw term loan availability | 400,000 | |||||||||||||||
| Secured leverage ratio | Not greater than 30% | 0.2 | % | Less: Commercial paper borrowings (principal) | (276,000) | |||||||||||||||
| Unencumbered leverage ratio | Not greater than 60% | 42.0 | % | Total liquidity | $1,642,987 | |||||||||||||||
| Fixed charge coverage ratio | Not less than 1.50x | 3.6x | ||||||||||||||||||
| Unsecured coverage ratio | Not less than 1.75x | 3.6x | OTHER METRICS | |||||||||||||||||
| % Variable Rate Debt | 8.6 | % | ||||||||||||||||||
| Share of Unconsolidated JV Net Debt | $33,278 | |||||||||||||||||||
| Capitalized interest | $3,465 | |||||||||||||||||||
1Balances are reflected net of discounts, fair value adjustments, and deferred financing costs and include premiums.
2Includes extension options.
3Fair value merger adjusted in 2022.
4Effective interest rate reflects the swapped rate plus 0.95%.
5$400 million delayed draw term loan remained undrawn as of the reporting date.
6Commercial Paper Program borrowings are backstopped by the availability under the Revolving Facility. As such, the Company uses the maturity date of the Revolving Facility.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 20 | |||||||
| Components of Net Asset Value | ||
| DOLLARS IN THOUSANDS | ||
| CASH NOI | |||||
| 2Q 2026 | |||||
Same store 1 | $162,750 | ||||
| Acquisition & Re/development Completions | 2,532 | ||||
| Total | $165,282 | ||||
Management fee income and other 2 | 5,244 | ||||
| Total Cash NOI | $170,526 | ||||
| DEVELOPMENT & REDEVELOPMENT PROPERTIES | ||||||||||||||
PROJECTED STABILIZED ANNUAL CASH NOI 3 | ||||||||||||||
| COST TO COMPLETE | BUDGET | LOW | HIGH | |||||||||||
| Developments | $12,991 | $106,200 | $7,000 | $8,000 | ||||||||||
Redevelopments 4 | 165,895 | 285,700 | 46,000 | 50,000 | ||||||||||
| Total | $178,886 | $391,900 | $53,000 | $58,000 | ||||||||||
| LAND HELD FOR DEVELOPMENT, CASH, & OTHER ASSETS | |||||
| Land held for development | $52,942 | ||||
Disposition pipeline 5 | 103,243 | ||||
Unstabilized properties 6 | 144,842 | ||||
Cash, Other Assets & Liabilities (net) 7,8 | (70,323) | ||||
| Total | $230,704 | ||||
| DEBT (PRINCIPAL) | |||||
| Unsecured credit facility and commercial paper | $276,000 | ||||
| Unsecured term loans | 500,000 | ||||
| Senior notes | 3,549,285 | ||||
| Mortgage notes payable | 23,167 | ||||
| Share of unconsolidated JV net debt | 33,278 | ||||
| Total | $4,381,730 | ||||
| TOTAL SHARES AND OP UNITS OUTSTANDING | ||||||||||||||
| As of June 30, 2026 | 346,957,746 | |||||||||||||
1See Same Store statistics on page 15 for details on Same Store NOI. Includes same store JV assets at share.
2Other adjustments include adjustments for management fee income of $5.5 million and timing adjustments as if we have owned acquisitions for the full quarter, less $0.3 million of positive NOI for unstabilized properties, which are shown in other assets.
3Represents total building projected stabilized NOI for properties in development and redevelopment at project stabilization.
4Estimated total cost includes only the incremental capital to complete the redevelopment.
5Includes 15 properties identified as assets held for sale that are excluded from Same Store Cash NOI and reflects net book value or sales price, if applicable.
6Includes 15 properties at their gross book value. These properties were comprised of 0.5 million square feet that generated positive NOI of $0.5 million.
7Other assets include notes receivable of $43.5 million, prepaid assets of $44.0 million, accounts receivable of $25.4 million, and prepaid ground leases of $10.9 million. In addition, it includes the Company's gross investment of its corporate headquarters in Nashville of $48.9 million.
8Other liabilities include only liabilities that are expected to reduce future cash or NOI and that are currently producing non-cash benefits to NOI. Included are accounts payable and accrued liabilities of $152.8 million, security deposits of $30.7 million, financing right of use liabilities of $74.1 million, and deferred operating expense reimbursements of $4.4 million.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 21 | |||||||
| Glossary | ||
Funds from operations (“FFO”) and FFO per share are operating performance measures adopted by NAREIT. NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.”
FFO, Normalized FFO and Funds Available for Distribution ("FAD") do not represent cash generated from operating activities determined in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered alternatives to net income attributable to common stockholders as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity.
CASH NET OPERATING INCOME
Rental income plus interest from financing receivables less property operating expenses. Excludes lease termination fees and non-cash items such as above and below market lease intangibles, straight-line rent, lease inducements, financing receivable amortization, tenant improvement amortization and leasing commission amortization.
BUILDING METRICS
Gross investment and cash NOI are reflected at the Company's ownership percentage. Lease and building level related metrics such as building square feet and occupancy are reflected at 100% of the buildings. Excludes assets held for sale, land held for development, and corporate property.
ACQUISITIONS
Acquisitions include properties acquired through joint ventures at the Company's ownership percentage.
RE/DEVELOPMENT FUNDING
Re/development funding includes capital spend on re/developments, re/development completions and unstabilized properties.
1ST GENERATION TI/LC/CAPITAL & ACQUISITION CAPEX
Acquisition capex includes near-term fundings underwritten as part of recent acquisitions. 1st generation tenant improvements, capital, and leasing commissions for re/developments are excluded.
LEASING COMMITMENTS
Excludes recently acquired or disposed properties, re/development completions, construction in progress, land held for development, corporate property, redevelopment properties, unstabilized properties, planned dispositions and assets classified as held for sale.
TOTAL PROPERTIES
Excludes assets held for sale, land held for development, dispositions, and corporate property.
TOTAL COMPANY
Includes assets held for sale, land held for development, dispositions, and corporate property.
ON CAMPUS/ADJACENT
Includes on campus properties and adjacent properties as being no more than 0.25 miles from a hospital campus.
OFF CAMPUS AFFILIATED
Includes off-campus buildings where health systems lease 20% or more of the property and/or are located within 2 miles of a hospital campus.
OFF CAMPUS NON-AFFILIATED
Includes off-campus buildings that are not 20% or more leased by a health system and are more than two miles from a hospital campus.
SAME STORE
Same store properties are properties that have been included in operations for the duration of the year-over-year comparison period presented. Accordingly, same store properties exclude properties that were recently acquired or disposed of, properties classified as held for sale or intended for sale, properties undergoing redevelopment, and newly redeveloped or developed properties.
DISPOSITION CASH YIELD
Represents the in-place cash NOI divided by sales price. Includes disposition activity subsequent to quarter end.
ACQUISITION INITIAL CASH YIELD
Represents the forecasted first year NOI divided by the purchase price. For joint venture acquisitions, the cash yield is inclusive of fees received from the joint venture. Includes acquisition activity subsequent to quarter end.
NOI MARGIN (GROSS RECOVERY METHOD)
Cash NOI divided by operating revenues.
NOI MARGIN (NET RECOVERY METHOD)
Cash NOI divided by rental revenue.
RENTAL REVENUE
Rental income plus interest from financing receivables. Excludes lease termination fees and non-cash items such as above and below market lease intangibles, straight-line rent, lease inducements, financing receivable amortization, tenant improvement amortization and operating expense reimbursements.
OTHER TERMS
Medical Outpatient Building (MOB)
Commercial Paper (CP)
Weighted Average Lease Term Remaining (WALT)
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 22 | |||||||
| Reconciliations | ||
| DOLLARS IN THOUSANDS | ||
| NET INCOME (LOSS) TO NOI | |||||||||||||||||
| QUARTER ENDED | |||||||||||||||||
| 2Q 2026 | 1Q 2026 | 4Q 2025 | 3Q 2025 | 2Q 2025 | |||||||||||||
| Net income (loss) | ($43,955) | $21 | $14,591 | ($58,544) | ($160,144) | ||||||||||||
| Other expense (income) | 82,924 | 31,646 | 19,485 | 83,116 | 175,898 | ||||||||||||
| General and administrative expense | 14,361 | 17,343 | 13,787 | 21,771 | 23,482 | ||||||||||||
| Depreciation and amortization expense | 128,065 | 128,985 | 135,036 | 143,640 | 153,476 | ||||||||||||
Other expenses 1 | 3,309 | 2,995 | 1,907 | 1,491 | 2,094 | ||||||||||||
| Straight-line rent expense | 318 | 563 | 788 | 842 | 859 | ||||||||||||
| Straight-line rent revenue | (11,239) | (8,459) | (4,753) | (6,741) | (7,904) | ||||||||||||
Other revenue 2 | (13,164) | (11,980) | (10,998) | (9,542) | (9,345) | ||||||||||||
| Joint venture property cash NOI (at share) | 9,272 | 8,560 | 8,616 | 8,380 | 8,225 | ||||||||||||
| Cash NOI | $169,891 | $169,674 | $178,459 | $184,413 | $186,641 | ||||||||||||
| Developments | (694) | (289) | (268) | (84) | 74 | ||||||||||||
| Development completions | (899) | (831) | (839) | (799) | (788) | ||||||||||||
| Redevelopments | (4,024) | (4,918) | (7,320) | (8,040) | (8,839) | ||||||||||||
| Redevelopment completions | (1,351) | (1,376) | (1,200) | (963) | (984) | ||||||||||||
| Acquisitions (wholly-owned and joint venture) | (282) | (10) | — | — | — | ||||||||||||
| Completed dispositions & assets held for sale | 109 | (1,353) | (10,529) | (18,219) | (21,310) | ||||||||||||
| Same store cash NOI | $162,750 | $160,897 | $158,303 | $156,308 | $154,794 | ||||||||||||
| Same store joint venture properties | (7,638) | (7,479) | (7,512) | (7,253) | (7,219) | ||||||||||||
| Same store excluding JVs | $155,112 | $153,418 | $150,791 | $149,055 | $147,575 | ||||||||||||
1Includes transaction costs, rent reserves, above and below market ground lease intangible amortization, leasing commission amortization, non-cash adjustments for financing receivables, and ground lease straight-line rent.
2Includes management fee income, interest, above and below market lease intangible amortization, lease inducement amortization, lease termination fees, deferred financing cost amortization and principal related to investment in financing receivable, and tenant improvement overage amortization.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 23 | |||||||
| Reconciliations (cont'd) | ||
| DOLLARS IN THOUSANDS | ||
| NET INCOME (LOSS) TO EBITDA | |||||||||||
| QUARTER ENDED | |||||||||||
| 2Q 2026 | 1Q 2026 | 4Q 2025 | |||||||||
| Net income (loss) | ($43,955) | $21 | $14,591 | ||||||||
| Interest expense | 45,146 | 43,890 | 48,189 | ||||||||
| Income taxes | 298 | 296 | 300 | ||||||||
Depreciation and amortization 1 | 128,065 | 128,985 | 135,036 | ||||||||
| Unconsolidated JV depreciation, amortization, and interest | 7,255 | 8,130 | 8,121 | ||||||||
| EBITDA | $136,809 | $181,322 | $206,237 | ||||||||
| Transaction costs | 1,473 | 937 | 300 | ||||||||
| Gain on sales of assets | (3,713) | (10,777) | (135,711) | ||||||||
| Impairments on real estate assets | 42,741 | 16 | 105,706 | ||||||||
| Restructuring and severance-related charges | 3,021 | 7,562 | 588 | ||||||||
Debt financing costs 2 | 1,776 | 116 | 1,614 | ||||||||
Timing impact 3 | (7) | 878 | (2,089) | ||||||||
| Stock based compensation | 4,420 | 3,927 | 3,308 | ||||||||
| Other | 202 | 508 | 1,441 | ||||||||
| Unconsolidated JV adjustments | (2,190) | 339 | 319 | ||||||||
| Adjusted EBITDA | $184,532 | $184,828 | $181,713 | ||||||||
| Annualized Adjusted EBITDA | $738,128 | $739,312 | $726,852 | ||||||||
| RECONCILIATION OF NET DEBT TO ADJUSTED EBITDA | |||||||||||
| Debt | $4,166,944 | $4,103,918 | $3,911,423 | ||||||||
| Share of Unconsolidated JV Net Debt | 33,278 | 34,031 | 31,751 | ||||||||
| Cash | (18,987) | (26,235) | (26,172) | ||||||||
| Net debt | $4,181,235 | $4,111,714 | $3,917,002 | ||||||||
| Net debt to adjusted EBITDA | 5.7x | 5.6x | 5.4x | ||||||||
Run Rate Net debt to adjusted EBITDA 4 | 5.6x | ||||||||||
1Leasing commission amortization is included in the real estate depreciation and amortization add-back for FFO.
2Includes loss on debt extinguishment, loss on derivatives, and legal fees related to the amended and restated credit facility.
3Timing adjustments to represent a full quarter impact of acquisitions and dispositions. Properties contributed into a joint venture are adjusted at the Company's share. Timing adjustments also include non-recurring impacts due to one-time items recognized in the quarter.
4Includes the pro forma impact of acquisitions and dispositions closed subsequent to quarter end and under contract.
HEALTHCARE REALTY | 2Q 2026 SUPPLEMENTAL INFORMATION 24 | |||||||
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