Healthcare Realty Lifts 2026 Outlook Again as Same-Store Cash NOI Grows 5.1%

Healthcare Realty raised its 2026 guidance again on Thursday, lifting its normalized funds from operations forecast to $1.65 to $1.67 per share, as same-store cash net operating income grew 5.1% in the third quarter, according to its earnings release filed with an 8-K.

The new range, up $0.02 at the midpoint from July guidance of $1.62 to $1.66, came as the medical outpatient building owner also renewed its share buyback program at up to $500 million and kept its quarterly dividend at $0.24 a share.

The Nashville-based real estate investment trust, which describes itself as the largest public, pure-play owner, operator and developer of medical outpatient buildings in the U.S., also raised its same-store cash NOI growth outlook to 5.00% to 5.25% from 4.25% to 5.00%.

Results for the quarter

Normalized FFO was $145.9 million, or $0.42 per diluted share, compared with $145.3 million, or $0.41, a year earlier. NAREIT FFO rose to $0.38 per share from $0.34.

The company posted a GAAP net loss of $15.8 million, or $0.05 per share, narrower than the $57.7 million, or $0.17 per share, loss in the third quarter of 2025.

Funds available for distribution were $110 million, for a payout ratio of 76%, according to the filing.

By the numbers

• Normalized FFO: $0.42 per share, vs. $0.41
• GAAP net loss: $0.05 per share, vs. $0.17
• Same-store cash NOI growth: 5.1%
• Tenant retention: 88.0%
• Net debt to adjusted EBITDA: 5.5 times

Leasing with health systems

Healthcare Realty executed 329 new and renewal leases covering 1.5 million square feet, including 430,000 square feet of new leases, with a weighted average term of 5.9 years and annual escalators averaging 3.1%. Cash leasing spreads averaged 8.6%.

Large deals included 203,000 square feet of new and renewal leases with Ascension Health across five on-campus properties in Nashville, and 59,000 square feet of renewals each with Cedars-Sinai Medical Center in Los Angeles and Mount Carmel Health System in Columbus, Ohio.

Buying, selling and buying back

Since last quarter, the company's joint venture with KKR acquired $211 million of assets, about $42 million at Healthcare Realty's share, including two health system-anchored medical office buildings in Charleston, South Carolina, for $56 million.

The REIT sold $68 million of assets over the same period, bringing year-to-date dispositions to $136 million. It said it entered into a contract to sell its remaining Chicago-area property, which would complete its exit from that market.

Through early October, Healthcare Realty repurchased 4.2 million shares at an average price of $17.74, for a total of $75 million. On Oct. 26, it renewed its repurchase program for the next 12 months with authorization of up to $500 million, replacing the authorization from October 2025 that was expiring.

The board approved a dividend of $0.24 per share, payable Nov. 20 to Class A common stockholders of record on Nov. 10. The company ended September with about $1.6 billion of liquidity.

Sources

1. Healthcare Realty Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001360604-26-000069)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.