Healthcare Realty Trust raises 2026 normalized FFO guidance

Overview

• US medical office REIT reported Q3 net loss per share of $0.05 and normalized FFO per share of $0.42

• Company raised 2026 normalized FFO and same store cash NOI growth guidance

• Company repurchased 4.2 mln shares and renewed $500 mln buyback authorization

Outlook

• Company raises 2026 Normalized FFO guidance to $1.65-$1.67 per share

• Company lifts 2026 Same Store Cash NOI growth guidance to 5.00%-5.25%

• Company says 2026 guidance reflects assumptions on rental rates, occupancy, and interest rates

Result Drivers

• SAME STORE NOI - Co reported 5.1% same store cash NOI growth, with tenant retention at 88% and average cash leasing spreads of 8.6%

• LEASING ACTIVITY - Co executed 1.5 mln sq ft of new and renewal leases in Q3, with average annual rent escalators of 3.1%

• ACQUISITIONS - Co acquired $211 mln of assets in strategic JV with KKR since last quarter

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Healthcare Realty Trust Inc is $22.00, about 25.5% above its October 28 closing price of $17.53

Reuters Recommended Reads

• Oct 27 - Ventas Q3 normalized FFO per share rises 10% on senior housing strength

• Oct 26 - Welltower Q3 normalized FFO per share rises 25%, guidance raised

• Oct 27 - Universal Health Realty Income Trust Q3 profit rises, helped by lower interest costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)