SEC Filings

Healthcare Realty Lifts 2026 Profit Outlook To $1.65-$1.67 A Share After Same-Store Income Climbs 5.1%

The medical office landlord also narrowed its quarterly loss to $0.05 a share and renewed a buyback authorization of up to $500 million.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Healthcare Realty Lifts 2026 Profit Outlook To $1.65-$1.67 A Share After Same-Store Income Climbs 5.1%

Healthcare Realty Trust, a real estate investment trust that owns medical outpatient buildings across the U.S., raised its full-year 2026 outlook for Normalized FFO to $1.65 to $1.67 per diluted share, a $0.02 gain at the midpoint from July, in an 8-K filed Thursday. It also lifted its same-store cash income growth forecast to 5.00%-5.25%.

A higher range, a narrower loss

The July range for same-store cash net operating income growth, the property-level income measure, was 4.25% to 5.00%, according to the earnings release. The low end rose 75 basis points, or 0.75 percentage points, and the high end 25 basis points.

Third-quarter same-store cash NOI grew 5.1%. Tenant retention reached 88.0%, and cash leasing spreads on renewals averaged 8.6%. The company signed 329 leases covering 1.5 million square feet, 430,000 of it new.

The GAAP net loss narrowed to $0.05 per share from $0.17 a year earlier. Normalized FFO, a real-estate profit measure that strips out depreciation, property gains and other items, edged up to $0.42 from $0.41. Quarterly revenue was $286.6 million, down from $297.8 million.

Recycling capital with KKR

Healthcare Realty owned 560 properties as of the quarter's end, counting joint ventures, according to its supplemental report. It has been trading buildings: since last quarter it bought $211 million of assets, about $42 million at its share, through its joint venture with KKR. Deals included two Charleston, South Carolina, buildings for $56 million and a Seattle building for $17 million.

It sold $68 million of assets over the same stretch, lifting dispositions this year to $136 million. Among them was a $36 million Atlanta building sold to the affiliated hospital. The company sold two Chicago properties for $23 million and has a contract to sell its last one there, which would end its presence in that market.

Buyback renewed at $500 million

The company repurchased 4.2 million shares at an average $17.74, for $75 million, through early October. On October 26 it renewed its repurchase program for 12 months with up to $500 million of authorization, replacing the one from October 2025.

Net debt to adjusted EBITDA stood at 5.5x, versus 5.6x in the second quarter, and liquidity was about $1.6 billion. The board approved a $0.24 quarterly dividend payable November 20 to holders of record November 10.

Management hosts its earnings call Friday at 9:00 a.m. Eastern to walk through the quarter and the raised outlook.

Sources

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