Healthcare Realty raises 2026 FFO forecast again, Q3 revenue edges above estimate

Healthcare Realty Trust Incorporated (NYSE: HR) raised its 2026 normalized FFO guidance on Oct. 29, 2026, and reported third-quarter revenue of $286.64 million, above the $283.08 million consensus estimate compiled by Finnhub.

The company said in a filing that it now expects 2026 normalized FFO of $1.65 to $1.67 per share, compared with the $1.62 to $1.66 range it gave on July 30.

Shares were little changed in after-hours trading as of 4:28 p.m. ET.

The company owns, operates and develops medical outpatient buildings in the United States. It reported the results in an earnings release and a supplemental information package, furnished under Items 2.02 and 7.01 of its Form 8-K.

Here's how the company did:

• Normalized FFO per share: 42 cents vs. 41 cents a year earlier
• NAREIT FFO per share: 38 cents vs. 34 cents a year earlier
• GAAP net loss per share: loss of 5 cents vs. loss of 17 cents a year earlier
• Revenue: $286.64 million vs. $297.77 million a year earlier

Same store cash NOI rose 5.1% from a year earlier, the company said. Tenant retention was 88.0%, and cash leasing spreads on renewals averaged 8.6%.

According to its SEC filings, net income swung from a loss of $57.7 million in the third quarter of 2025 to a profit of $14.4 million in the fourth quarter of 2025.

2026 guidance

The company raised its normalized FFO per share forecast to $1.65 to $1.67, from $1.62 to $1.66. It raised its NAREIT FFO per share forecast to $1.48 to $1.52, from $1.45 to $1.51, the company said in the filing.

Same store cash NOI growth guidance is now 5.00% to 5.25%, up from 4.25% to 5.00%. The filing says the forecast reflects the company's view of rental rates, occupancy, interest rates, and operating and general and administrative expenses.

The guidance does not include gains or losses from dispositions, potential impairments, or debt extinguishment costs. It also excludes future acquisitions, developments, share issuances or repurchases, and the company cautioned that actual results could be materially higher or lower.

Capital allocation

The company repurchased 4.2 million shares of common stock in the third quarter and early October at an average price of $17.74 per share, for a total of $75 million.

On Oct. 26, 2026, the company renewed its share repurchase program for the next 12 months, with total authorization of up to $500 million. The new program replaces the authorization that expired from October 2025.

The board unanimously approved a common stock dividend of 24 cents per share, payable Nov. 20, 2026, to Class A stockholders of record on Nov. 10, 2026. Holders of operating partnership units will receive a distribution of 24 cents per unit.

As of Sept. 30, 2026, the company had approximately $1.6 billion of liquidity across its revolving facility, delayed draw term loan and cash on hand. It reported net debt to adjusted EBITDA of 5.5x.

Portfolio activity

Since last quarter, the company acquired $211 million of assets, or about $42 million at its share, through its joint venture with KKR. Selected deals included two Class A medical office buildings in Charleston, S.C., for $56 million, and a 33,000-square-foot building in Seattle for $17 million.

The company sold $68 million of assets since last quarter, bringing year-to-date disposition activity to $136 million. It completed a previously announced $36 million sale of a 59,000-square-foot building in Atlanta to the affiliated hospital.

In Chicago, the company sold two properties for aggregate proceeds of $23 million and entered into a contract to sell the remaining property in the Chicago market. It said it will have fully exited Chicago once that sale is complete.

The company executed 1.5 million square feet of leases in the third quarter, including 430,000 square feet of new leases. Ascension Health took 203,000 square feet of new and renewal leases in Nashville across five on-campus properties.

The company will hold a conference call on Oct. 30, 2026, at 9:00 a.m. Eastern Time, with a webcast available on its investor relations site.