Healthcare Realty (HR) Earnings Call Transcript
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Friday, Oct. 31, 2025, at 9 a.m. ET
Healthcare Realty Trust (NYSE:HR) reported $500 million in year-to-date dispositions as of fiscal Q3 2025 (period ended Sept. 30, 2025), with the remaining $700 million disposition pipeline primarily under binding agreement, shifting portfolio quality and market concentration. As a result of robust expense controls and occupancy gains, the company delivered a 5% year-over-year increase in normalized FFO per share and raised both FFO and same-store cash NOI growth guidance for 2025. Transaction activity is driving deleveraging, as net debt to EBITDA fell to 5.8x, while management expects further balance sheet improvement as additional sales close and term loans are repaid, as discussed in the earnings call. The new $1 billion ATM program and refreshed $500 million buyback authorization expand capital allocation options, although management stated there are no immediate plans to use the ATM at current stock levels. Looking ahead, the company highlighted significant redevelopment and development contributions that are expected to enhance NOI. Health system leasing comprised nearly 50% of total activity, up almost 20% from the low point in 2023, and is near its highest level in recent memory. Annual lease escalators averaged 3.1% across new and renewal contracts.
Source Fool.com
