Healthcare Realty Trust Reports Revenue Decline and Net Loss for Q2 and First Half of 2026

Healthcare Realty Trust Incorporated reported its financial results for the second quarter and first half of 2026, revealing a decline in revenue and net loss compared to the same periods in 2025. For the three months ended June 30, 2026, total revenues amounted to $281.8 million, down from $297.5 million in the prior year, primarily due to a decrease in rental income, which fell to $270.6 million from $287.1 million. The company recorded a net loss of $43.5 million, or $(0.13) per share, compared to a net loss of $160.1 million, or $(0.45) per share, in the same quarter of 2025. For the six months ended June 30, 2026, total revenues were $560.8 million, down from $596.5 million, with a net loss of $43.9 million compared to a loss of $205.5 million in the prior year.

The company experienced significant changes in its financial performance, with rental income decreasing by $37.8 million, or 6.6%, for the first half of 2026. This decline was attributed to property dispositions totaling $65.2 million, partially offset by an increase in leasing activity that contributed $26 million. Other operating income increased by 17.7% to $15.7 million, driven by management fees related to unconsolidated joint ventures. The company also reported a decrease in property operating expenses, which fell by 7.0% to $199 million, largely due to the impact of property sales.

In terms of strategic developments, Healthcare Realty Trust engaged in several acquisitions and dispositions during the first half of 2026. The company acquired a condominium unit in Charlotte, North Carolina, for $3.7 million, while disposing of five properties for a total of $49.1 million. As of June 30, 2026, the company had 501 consolidated real estate properties across 26 states, totaling approximately 28.9 million square feet. The company also reported a weighted average ownership interest of about 30% in 62 properties held in unconsolidated joint ventures.

Operationally, the company’s total assets decreased to $9 billion from $9.2 billion at the end of 2025, with total liabilities increasing to $4.7 billion from $4.5 billion. The company’s cash and cash equivalents also declined to $19 million from $26 million. The company’s employee headcount remained stable, and it continues to manage 92% of its portfolio nationwide. The company’s outlook remains cautious, as it anticipates ongoing challenges related to market conditions, including interest rate volatility and the financial health of its tenants, particularly in light of the recent bankruptcy of Prospect Medical.

Looking ahead, Healthcare Realty Trust expects to continue focusing on its core operations while managing its capital structure and liquidity needs. The company has $1.6 billion available to be drawn on its delayed draw term loan and revolving facility, which it plans to utilize for future investments and operational expenses. The management remains committed to maintaining its dividend payments and exploring opportunities for growth through strategic acquisitions and property management efficiencies.