HR · Healthcare Realty Trust Incorporated

Healthcare Realty Trust delivered a strong first quarter in 2026, marked by operational outperformance and active capital management. The company reported Normalized FFO of $0.41 per share, an improvement from $0.39 in the prior year period, driven by robust same store cash NOI growth of 6.9% and high tenant retention of 93.5%. Leasing activity remained vigorous, with 2.0 million square feet executed at a weighted average lease term of 7.7 years and positive cash leasing spreads of 4.2%, indicating healthy demand for medical outpatient buildings. Management raised full-year 2026 guidance, narrowing and lifting the Normalized FFO range to $1.59–$1.65 per share, reflecting confidence in the underlying business momentum. On the capital allocation front, the company was highly active, repurchasing 5.7 million shares for $100 million at an average price of $17.38, which is accretive to shareholders given the current trading environment. Additionally, the balance sheet remains well-positioned with approximately $1.2 billion in liquidity and a Net Debt to Adjusted EBITDA of 5.5x. The company also secured commitments for a new $400 million unsecured delayed draw term loan, further enhancing financial flexibility. A common stock dividend of $0.24 per share was declared, maintaining a consistent payout. Finally, the announced retirement of director Jay Leupp aligns with the company's ongoing board refreshment initiatives.