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Healthcare Realty Trust (HR)
NYSE:HR
Earnings Data
Report Date
May 12, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.03Last Year’s EPS
-0.13Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong operational and strategic turnaround story: asset-management overhaul, meaningful leasing volume and pipeline, successful $1.2B disposition program at attractive cap rates, G&A and margin improvements, debt reduction and improved ratings outlook, and clear redevelopment and capital-allocation priorities. Offsetting items included flat 2026 reported FFO at the midpoint (reflecting dilution from dispositions and deleveraging), a rightsized dividend, refinancing at higher coupon assumptions, continued mid-5x leverage, and constrained near-term acquisition activity due to cost-of-capital considerations. On balance, highlights around execution, leasing momentum, margin and balance sheet repair significantly outweigh the lowlights.Company Guidance
Same-Store NOI and FFO Outperformance
Full-year same-store NOI growth of 4.8% (2025) and Q4 same-store cash NOI growth of 5.5%; full-year normalized FFO per share of $1.61, exceeding the midpoint of prior guidance by $0.03; Q4 normalized FFO of $0.40.
Material Leasing Activity and Improved Leasing Metrics
Executed ~5,800,000 square feet of leasing in 2025 (including 1,600,000 sq ft of new leases); Q4 leasing ~1,500,000 sq ft; annual escalators on lease activity averaged 3.1% (portfolio average 2.9%, +7 bps YoY); weighted average lease term ~6 years; tenant retention improved to 82% for the year and ~83% in Q4 (eight consecutive quarters >80%).
Asset Management Revamp Driving Better Economics
New asset management platform delivered a 60 bps improvement in cash leasing spreads, a 220 bps improvement in tenant retention, improved lease IRRs and payback periods, and early signs of stronger lease economics across the portfolio.
Redevelopment Program with Attractive Yields
Redevelopment yields on cost targeted at ~10%; redevelopment portfolio saw ~1,000 bps increase in lease percentage since Q3; identified roughly $15M of the targeted $50M redevelopment NOI upside to date with ongoing lease-up momentum (example: 64k sq ft St. Peter’s lease).
Successful Dispositions and Geographic Repositioning
Completed $1,200,000,000 of asset sales at a blended 6.7% cap rate (exceeding expectations); exited 14 noncore markets and improved geographic exposure to higher-growth MSAs; Q4 dispositions ~ $700,000,000 contributing to debt paydown.
Balance Sheet Repair and Liquidity Improvements
Net debt to EBITDA reduced from 6.4x to 5.4x; repaid ~$900,000,000 of debt (including bond repayment and term loan payoffs); extended maturities and increased liquidity; rating outlook improved to Stable from Moody’s and S&P.
G&A and Margin Savings
Achieved target run-rate G&A savings of $10,000,000; total G&A now $45,000,000; property NOI margins improved by 60 bps with further margin expansion expected.
Capital Return and Share Repurchases
Dividend right-sized to a level generating ~6% current yield; Q4 FAD per share $0.32 (full-year FAD $1.26) with a quarterly dividend payout ratio of 75%; repurchased $50,000,000 of stock in January (2,900,000 shares) with $450,000,000 remaining authorization.
Prudent 2026 Guidance with Embedded Core Growth
2026 normalized FFO guidance $1.58–$1.64 (midpoint $1.61) with same-store cash NOI growth guidance of 3.5%–4.5%; company notes ~5% core earnings growth embedded in midpoint that offsets dilution from 2025 dispositions/deleveraging.
Access to Short-Term Capital and Refinancing Plan
Launched $600,000,000 commercial paper program to diversify capital sources and improve cost of funds; assume refinancing $600,000,000 bonds due August at roughly low-5% coupon (planned midyear).
Robust Leasing Pipeline and Health System Relationships
Active 1,300,000 square foot pipeline with strong demand from health systems; notable renewals/extensions (e.g., Tufts 154k sq ft, Advocate 142k sq ft) and very high occupancy in some relationships (Baptist portfolio ~99% leased).
HR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HR Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $17.26 | $17.73 | +2.69% |
Oct 30, 2025 | $17.30 | $17.26 | -0.23% |
Jul 31, 2025 | $14.74 | $15.88 | +7.68% |
May 01, 2025 | $14.95 | $14.30 | -4.28% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Healthcare Realty Trust (HR) report earnings?
Healthcare Realty Trust (HR) is schdueled to report earning on May 12, 2026, After Close (Confirmed).
What is Healthcare Realty Trust (HR) earnings time?
Healthcare Realty Trust (HR) earnings time is at May 12, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HR EPS forecast?
HR EPS forecast for the fiscal quarter 2026 (Q1) is -0.03.