Healthcare Realty (HR) Q4 2025 Earnings Transcript | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 13, 2026
AI-Generated Deep Dive Summary
Healthcare Realty (HR) delivered a strong Q4 2025 performance, exceeding expectations across key financial metrics and operational milestones. The company reported normalized FFO per share of $1.61 for the year, surpassing its guidance midpoint by $0.03, while same-store NOI growth came in at 4.8% annually and 5.5% quarterly, outperforming targets by 140 basis points. These results highlight HR’s ability to execute effectively on its strategic initiatives, including cost control measures that reduced G&A expenses by $10 million annually, bringing total annual G&A to $45 million.
Leasing activity was robust, with 5.8 million square feet of space executed in the year, including 1.6 million square feet from new leases. The weighted average lease term reached nearly six years, with portfolio escalators averaging 2.9% annually and cash leasing spreads at 3.7% in Q4. Tenant retention remained strong at 82%, marking the eighth consecutive quarter above 80%. Occupancy improved significantly, rising by over 100 basis points for the year and nearly 20 basis points in Q4, driven by redevelopment properties.
HR’s balance sheet strengthened as net debt to EBITDA dropped to 5.4x from 6.4x, supported by asset dispositions totaling $1.2 billion at a 6.7% cap rate. The company also extended its debt maturities and increased liquidity through a new $600 million commercial paper program. Despite flatlining normalized FFO per share guidance for 2026 ($1.58–$1.64 midpoint), HR emphasized that this reflects proactive deleveraging and asset disposals, positioning the company for sustained growth.
The article underscores Healthcare Realty’s strategic focus on repositioning its portfolio and improving operational efficiency. With a renewed emphasis on redevelopment projects—highlighted by a 1,000 basis point increase in lease percentages since Q3—and strong demand fundamentals from key health systems like Tufts Medicine and Baptist Health, the company is well-positioned to capitalize on future NOI growth. HR’s disciplined capital allocation strategy, including $50 million in share repurchases and a focus on high-return opportunities, further signals confidence in
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Originally published on The Motley Fool on 2/13/2026