HRHIGH SIGNALOPERATIONAL10-K

Healthcare Realty underwent significant portfolio contraction, reducing total assets from $10.7B to $9.2B while divesting 87 properties and cutting gross real estate investments by $1.5B.

This represents a major strategic restructuring where the company appears to be streamlining operations and potentially divesting non-core assets. The 15% reduction in total assets combined with improved operating performance suggests a deliberate portfolio optimization rather than financial distress.

Comparing 2026-02-13 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

The company executed a substantial balance sheet contraction with total assets declining 13.5% to $9.2B while simultaneously reducing debt by $800M and improving operating income 21.3% to $123.6M. Despite a 76% surge in interest expense to $258.6M, net losses narrowed significantly from -$654.5M to -$246.1M, indicating the restructuring is yielding operational efficiencies. The 62% drop in cash to $26.2M alongside reduced share buybacks suggests the company is prioritizing debt reduction and operational focus over capital returns, which aligns with the strategic portfolio rationalization evidenced by the property divestments.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+76.3%
$146.7M→$258.6M

Interest expense surged 76.3% — significant debt increase or rising rates materially impacting earnings.

Net Income
P&L
+62.4%
-$654.5M→-$246.1M

Net income grew 62.4% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
-62%
$68.9M→$26.2M

Cash declined 62% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Share Buybacks
Cash Flow
-54.9%
$8.9M→$4.0M

Buyback activity reduced 54.9% — capital being redeployed elsewhere or cash conservation underway.

Operating Income
P&L
+21.3%
$101.9M→$123.6M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Total Debt
Balance Sheet
-16.1%
$4.7B→$3.9B

Debt reduced 16.1% — deleveraging strengthens balance sheet and reduces financial risk.

Total Liabilities
Balance Sheet
-15.2%
$5.3B→$4.5B

Liabilities reduced 15.2% — deleveraging improves balance sheet strength and financial flexibility.

Total Assets
Balance Sheet
-13.5%
$10.7B→$9.2B

Total assets contracted 13.5% — asset sales, write-downs, or balance sheet optimization underway.

Stockholders Equity
Balance Sheet
-11.8%
$5.2B→$4.6B

Equity decreased 11.8% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2026-02-13
PRIOR — 2025-02-19
ADDED
As of February 5, 2026, there were 348,849,902 shares of the Registrant s common stock outstanding.
All references in this report to "Healthcare Realty," the "Company," "we," "us," or "our" mean Healthcare Realty Trust Incorporated together with its consolidated subsidiaries, including Healthcare Realty Holdings, L.P., or operating partnership (the "OP").
Real Estate Properties The Company had gross investments of approximately $10.3 billion in 502 consolidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property as of December 31, 2025, excluding held for sale assets.
The Company had a weighted average ownership interest of approximately 30% in 61 real estate properties, excluding held for sale assets, held in unconsolidated joint ventures as of December 31, 2025.
The Company provided leasing and property management services to approximately 93% of its portfolio nationwide as of December 31, 2025.
Square feet, number of properties, and occupancy excludes two properties that are classified as held for sale.
1 Expiring Leases As of December 31, 2025, the weighted average remaining years to expiration pursuant to the Company s leases was approximately 4.4 years, with expirations through 2052.
EXPIRATION YEAR NUMBER OF LEASES LEASED SQUARE FEET PERCENTAGE OF LEASED SQUARE FEET 2026 (1) 1,155 3,885,553 14.9 % 2027 949 4,363,442 16.8 % 2028 906 3,463,342 13.3 % 2029 683 3,060,019 11.8 % 2030 634 3,021,085 11.6 % 2031 329 1,663,709 6.4 % 2032 301 1,969,215 7.6 % 2033 190 751,017 2.9 % 2034 190 1,061,192 4.1 % 2035 206 1,274,194 4.9 % Thereafter 187 1,475,890 5.7 % 5,730 25,988,658 100.0 % 1 Includes 85 leases totaling 238,548 square feet that expired prior to December 31, 2025, and were on month-to-month terms.
2025 Investment Activity The Company disposed of 70 properties in 2025 for sales prices totaling approximately $1.1 billion.
These transactions yielded net cash proceeds of approximately $1.0 billion, net of approximately $77.6 million of closing costs and related adjustments, and $11.8 million in Company financed notes.
REMOVED
As of February 14, 2025, there were 350,820,406 shares of the Registrant s common stock outstanding.
The combined company operates under the name Healthcare Realty Trust Incorporated and its shares of class A common stock, $0.01 par value per share, trade on the New York Stock Exchange under the ticker symbol HR .
For purposes of this Annual Report on Form 10-K, references to Healthcare Realty Trust , the Company , we , us , and our are to Legacy HTA after giving effect to the Merger and, unless the context requires otherwise, to its consolidated subsidiaries, including the OP.
Additionally, any references to the Company for periods prior to the Merger are to Legacy HR.
Real Estate Properties The Company had gross investments of approximately $11.8 billion in 589 consolidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property as of December 31, 2024.
The Company had a weighted average ownership interest of approximately 31% in 63 real estate properties held in unconsolidated joint ventures as of December 31, 2024.
The Company provided leasing and property management services to 92% of its portfolio nationwide as of December 31, 2024.
There were three properties excluded from the table above that were classified as held for sale as of December 31, 2024.
Expiring Leases As of December 31, 2024, the weighted average remaining years to expiration pursuant to the Company s leases was approximately 4.2 years, with expirations through 2052.
EXPIRATION YEAR NUMBER OF LEASES LEASED SQUARE FEET PERCENTAGE OF LEASED SQUARE FEET 2025 (1) 1,418 5,264,353 17.5 % 2026 1,029 3,947,479 13.1 % 2027 1,071 4,553,597 15.1 % 2028 814 3,400,507 11.3 % 2029 804 3,548,010 11.8 % 2030 351 2,213,933 7.4 % 2031 315 1,606,677 5.3 % 2032 290 1,891,102 6.3 % 2033 179 765,997 2.5 % 2034 197 1,109,560 3.7 % Thereafter 197 1,803,299 6.0 % 6,665 30,104,514 100.0 % 1 Includes 109 leases totaling 257,954 square feet that expired prior to December 31, 2024, and were on month-to-month terms.
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