Key Highlights

  • Revenues were $286.6 million in the third quarter, down from $297.8 million a year earlier.
  • Net loss attributable to common stockholders was $15.8 million, or $0.05 per share, versus $57.7 million, or $0.17.
  • Normalized FFO was $145.9 million, or $0.42 per diluted share, compared with $0.41.
  • Impairment charges fell to $16.2 million from $104.4 million a year ago.
  • A quarterly Dividend of $0.24 per share was declared on October 29, 2026.

A smaller loss on lower impairments and lower interest costs

Healthcare Realty Trust (NYSE:HR) is a real estate Investment trust that owns, leases, manages, develops and redevelops outpatient healthcare properties across the United States. As of September 30, 2026, it had gross investments of about $10.2 billion in 495 consolidated properties covering roughly 28.7 million square feet in 25 states. It filed its Quarterly Report for the period on October 29, 2026.

Net loss was $15.9 million, compared with $58.5 million a year earlier, and the loss attributable to common stockholders was $0.05 per share against $0.17. The improvement came mainly from Impairment charges of $16.2 million, versus $104.4 million, and from interest expense that fell 14.8% to $44.8 million.

Revenue slips about 3.7% as dispositions outweigh leasing

Total revenues were $286.6 million, down from $297.8 million, which is a decline of about 3.7% on a calculated basis. Rental income fell $9.8 million, or 3.4%. Dispositions in 2025 and 2026 removed $28.7 million, while leasing activity added $15.6 million.

Property operating expenses decreased $5.2 million, or 4.8%, to $102.4 million. General and administrative expense was $12.4 million, down from $21.8 million.

FFO edges higher on lower costs

FFO attributable to common stockholders was $131.7 million, or $0.38 per diluted share, compared with $118.9 million, or $0.34. Normalized FFO was $145.9 million, or $0.42 per share, versus $145.3 million, or $0.41.

For the nine months, Normalized FFO was $1.25 per share compared with $1.20. Same store cash NOI for 462 properties was $459.8 million against $434.6 million for the first nine months of 2025, a rise of about 5.8% on a calculated basis.

Portfolio activity and occupancy

Across the nine months the company sold 10 properties and four land parcels for $81.3 million, with net proceeds of $74.8 million. After quarter end, on October 22, 2026, it sold a medical office building and a garage in Atlanta for $36.0 million. Capital spending for the nine months totaled $159.5 million.

Occupancy across the total portfolio was 91.2% at September 30, 2026, with same store occupancy at 93.1%.

Balance sheet, Buybacks and the dividend

Notes and bonds payable were $4.25 billion, up from $3.91 billion at year end, while cash was $17.5 million. The company had $1.6 billion available under its delayed draw term Loan and revolving facility, net of Commercial Paper borrowings and cash. In May 2026 it issued $700.0 million of 3.00% exchangeable senior notes due 2032.

During the quarter it repurchased 2.8 million shares for $49.9 million, and bought another 1.5 million shares for $24.9 million in October. On October 26, 2026 the board authorized a new repurchase program of up to $500.0 million. The quarterly dividend of $0.24 per share is payable November 20, 2026 to holders of record on November 10, 2026.

What to watch after the quarter

The filing flags continuing effects of the Prospect Medical Bankruptcy and the exposure of its leases to health system finances. Further dispositions, redevelopment lease-up and the pace of buybacks against Debt levels are the items that will shape later quarters.