Healthcare Realty Trust (HT0) Q3 2026 Earnings Report
DE:HT0 Q3 2026 EPS Results
- Actual EPS
- -EUR 0.04
- Consensus EPS
- EUR 0.01
- Beat/Miss
- Missed by -EUR 0.05
- One Year Ago EPS
- -EUR 0.15
DE:HT0 Q3 2026 Revenue Results
- Actual Revenue
- EUR 255.80M
- Expected Revenue
- EUR 245.65M
- Beat/Miss
- Beat by +EUR 10.15M
- YoY Revenue Growth
- -3.74%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
DE:HT0 Upcoming Earnings
Healthcare Realty Trust's next earnings date is estimated for February 12, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:HT0 Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported solid operating performance, improving occupancy and leasing spreads, raised full-year guidance, maintained a flexible balance sheet, and continued disciplined share repurchases, acquisitions, and dispositions. The principal challenges were higher interest rates, potential transaction-volume moderation, uneven market conditions, higher redevelopment costs, and lower expected fourth-quarter absorption, but these issues were presented as manageable within an otherwise favorable operating environment.
Company Guidance
Healthcare Realty raised full-year normalized FFO per share guidance to $1.65-$1.67, with a midpoint of $1.66, and raised full-year same-store cash NOI growth guidance to 5%-5.25%; sources and uses of capital increased by $85 million to reflect incremental share repurchases and JV acquisitions at share, while disposition guidance increased by the same amount. The company said guidance only reflects acquisitions, redevelopments, or other uses of capital announced to date, is going to keep trying to get cash leasing spreads in the 5% area, if not better, and expects its average disposition yield for the year to be in the mid-5% range; its $50 million-$100 million acquisition range remains applicable, leverage is consistent with the mid-5x target in its 2026 guidance, retention for 2027 expiring square footage is expected to be in the mid to high 80s, the SNO pipeline could bring same-store occupancy closer to 94%, total occupancy is trending towards right around 91%, and $40 million of the $50 million of NOI targeted for recapture is expected over the course of the three-year plan, more backend weighted.
- Strong Third-Quarter Operating ResultsNormalized FFO was $0.42 per share, same-store NOI grew 5.1%, the company signed 1.5 million sq ft of leases including 430,000 sq ft of new leases, redevelopment portfolio lease rate reached 72%—up 500 basis points sequentially—and same-store occupancy improved to 93.1%. Cash leasing spreads were 8.6%, and guidance was raised for the third time this year.
- Robust Leasing Momentum and Occupancy PipelineThe company completed approximately 1.5 million sq ft of new and renewal leasing, generated more than 85,000 sq ft of positive same-store absorption, increased occupancy by 30 basis points sequentially to 93.1%, and achieved 88% retention. Signed-but-not-occupied leases totaled more than 480,000 sq ft, providing a path to further occupancy gains in the fourth quarter and into 2027.
- Record-High Cash Leasing SpreadsCash leasing spreads of 8.6% were the highest level for the company in nearly a decade. Management said spreads were still above 6% excluding the benefit from the West Campus and Ascension leases, and stated that it will continue trying to achieve results in the 5% area or better.
- Health System Leasing and Strategic Redevelopment ProgressHealth systems accounted for more than 600,000 sq ft of leasing during the quarter. Ascension Saint Thomas signed 18,000 sq ft of new leases and renewed 185,000 sq ft for 10 years. Healthcare Realty also plans a $35 million redevelopment of three Ascension Saint Thomas West Campus properties, alongside the health system's $120 million investment in the same campus.
- Redevelopment Portfolio Leasing ImprovedNew leasing in the redevelopment portfolio exceeded 110,000 sq ft, nearly twice the second-quarter level, increasing the portfolio's lease rate from 67% to 72%.
- Raised Full-Year Financial GuidanceFull-year normalized FFO per share guidance increased to $1.65-$1.67, with the midpoint up two cents to $1.66. Full-year same-store cash NOI growth guidance increased to 5%-5.25%, with the bottom end raised by 75 basis points and the upper end raised by 25 basis points.
- Disciplined Balance Sheet and Liquidity PositionThe company completed $1.1 billion of debt refinancings earlier in the year at a blended interest rate of approximately 4%. Leverage was 5.5x as of September 30, consistent with the mid-5x target in 2026 guidance. Healthcare Realty had over $1.2 billion of liquidity on its line of credit after commercial paper balances and an additional $400 million delayed-draw term loan supporting its July 2027 bond maturity.
- Significant Share RepurchasesThe company repurchased $75 million of shares during the quarter and through October at an average price of approximately $17.75, bringing year-to-date repurchases to $250 million. Management said the repurchases represented an accretive FFO yield in excess of 9%.
- Joint Venture Acquisition ActivityYear to date, Healthcare Realty acquired eight medical office buildings and had one additional property under contract for a total purchase price of $338 million, or $67 million at the company's share. The investment was within the previously outlined $50 million-$100 million range and carried a mid-7% initial cash yield to Healthcare Realty before additional platform benefits.
- Asset Dispositions Supporting Capital AllocationThe company monetized more than $200 million of assets year to date, with over $100 million more under contract or letter of intent. Average disposition yield for the year is expected to be in the mid-5% range. Management said proceeds are being used to fund stock buybacks and joint venture acquisitions.
- Favorable Medical Office Supply and Demand TrendsManagement said tenant demand continues to rise with the needs of an aging population, care continues shifting from inpatient to lower-cost outpatient settings, and new medical office supply remains muted because of elevated construction and debt financing costs. Sector-wide occupancy was described as nearly 93%, at historical peaks.
- Improved Leasing EconomicsSince introducing its new economics-driven leasing model, lease IRRs have improved nearly 3,000 basis points and payback periods have declined 25%. Management said 3% escalators are now the floor rather than the ceiling, with select deals approaching 4%, while retention has averaged in the high 80s.
- Strong Future Leasing PipelineThe new and renewal leasing pipeline exceeded 3 million sq ft, with health systems representing approximately half of the opportunity. Management said the current signed-but-not-occupied pipeline could move same-store occupancy closer to 94% as leases commence.
- Progress on Strategic Plan NOI RecoveryManagement reiterated its plan to recover $40 million of the $50 million of NOI identified in the strategic plan as having been lost in certain assets after the merger. The recovery is expected to be back-end weighted over the three-year plan, with more of the benefit coming online in late 2027 and 2028.
- Longer Lease Duration and Expected FAD Catch-UpThe weighted average lease term increased from approximately 50 months a year and a half ago to approximately 65 months. Management said the company expects FAD growth to catch up to FFO growth, following the initial FFO benefit from accelerating large lease renewals.
- Deep Private-Market Demand for Medical Office AssetsCore cap rates were described as being in the 5.5%-6% area and core-plus cap rates in the 6%-6.5% area. Management said the private bid for medical office buildings remains deep and is increasing, with transaction volumes rising as private buyers respond to the sector's fundamentals.
- Positive Health System Consolidation TrendsManagement said health system consolidation has shown almost no market overlap or shutdown activity and is primarily focused on expanding within markets and achieving cost synergies. The company views the trend as complementary to its business and potentially supportive of stronger lease negotiations.
- Growth in Outpatient Care and Mark-to-Market OpportunityManagement said the shift from inpatient to outpatient care is accelerating, with procedures coming off the inpatient-only list moving into outpatient facilities. The remaining mark-to-market opportunity was estimated at mid-single digits, if not slightly better, and the spread between new-construction rental rates and in-place rents was said to be widening.
- Strategic Focus on Medical OfficeHealthcare Realty emphasized that it is the only public REIT focused exclusively on medical office, with its capital, people, and attention dedicated to the sector. Management said this focus is contributing to better results across the business.
DE:HT0 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 12, 2027 | 2026 (Q4) | 0.01- | 0.04 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 0.01-0.04 | -0.15 | 70.59% (+0.11) | |
| Jul 30, 2026 | 2026 (Q2) | -0.00-0.12 | -0.4 | 71.11% (+0.29) | |
| Apr 30, 2026 | 2026 (Q1) | -0.030.00 | -0.12 | 100.00% (+0.12) | |
| Feb 12, 2026 | 2025 (Q4) | -0.010.04 | -0.28 | 112.90% (+0.31) | |
| Oct 30, 2025 | 2025 (Q3) | -0.02-0.15 | -0.23 | 34.62% (+0.08) | |
| Jul 31, 2025 | 2025 (Q2) | -0.06-0.40 | -0.35 | -15.38% (-0.05) | |
| May 01, 2025 | 2025 (Q1) | -0.07-0.12 | -0.73 | 84.15% (+0.62) | |
| Feb 19, 2025 | 2024 (Q4) | -0.06-0.28 | -0.1 | -181.82% (-0.18) | |
| Oct 30, 2024 | 2024 (Q3) | -0.05-0.23 | -0.16 | -44.44% (-0.07) |
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