Healthcare Realty Trust Incorporated reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with total revenues of $1.18 billion, down 6.9% from $1.27 billion in 2024. The company experienced a net loss attributable to common stockholders of $246.1 million, compared to a loss of $654.5 million in the previous year. This loss was primarily driven by a decrease in rental income, which fell by $94.7 million, or 7.7%, largely due to property dispositions and the impact of the Prospect Medical bankruptcy, which affected approximately 80,912 square feet of leased space.
In 2025, Healthcare Realty disposed of 70 properties for a total sales price of approximately $1.1 billion, yielding net cash proceeds of about $1 billion after closing costs. The weighted average capitalization rate for these sales was 6.7%. The company also invested $136.6 million in the development and redevelopment of properties during the year. As of December 31, 2025, Healthcare Realty's total gross investments in real estate properties amounted to approximately $10.3 billion, encompassing 502 consolidated properties and a weighted average ownership interest of 30% in 61 properties held in unconsolidated joint ventures.
Operationally, the company managed to maintain a high occupancy rate of 90.4% across its portfolio, with 93% of its properties under leasing and property management services. The weighted average remaining lease term was approximately 4.4 years, with 15% of leases expected to expire annually. The company reported a total employee headcount of 539 as of the end of 2025, reflecting its commitment to maintaining a skilled workforce to support its operations.
Looking ahead, Healthcare Realty Trust expressed confidence in its liquidity and capital resources, which it expects to meet through cash on hand, cash flows from operations, asset sales, and joint venture contributions. The company has also authorized a $500 million stock repurchase program, which it may utilize to enhance shareholder value. However, the ongoing economic conditions, including rising interest rates and potential regulatory changes in the healthcare sector, may pose challenges to its operational and financial performance in the future.
About Healthcare Realty Trust Inc
Healthcare Realty Trust Incorporated is a self-managed REIT specializing in owning, leasing, managing, and developing outpatient healthcare properties across the U.S. Its portfolio includes medical offices, outpatient facilities, and specialized healthcare buildings, primarily leased to healthcare providers and systems. The company focuses on high-growth markets, diversified tenant bases, and integrated services to generate stable income and support healthcare delivery in outpatient settings.
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