Healthcare Realty Trust Incorporated reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and net income compared to the same periods in 2024. For the three months ended June 30, 2025, total revenues amounted to $297.5 million, down from $316.3 million in the prior year, primarily due to a decrease in rental income, which fell to $287.1 million from $308.1 million. The company recorded a net loss of $160.1 million, compared to a loss of $145.9 million in the same quarter of 2024. For the first half of 2025, total revenues were $596.5 million, down from $643.1 million, with a net loss of $205.5 million compared to a loss of $461.2 million in the previous year.
The company's financial performance was impacted by several factors, including property dispositions and impairments. Healthcare Realty Trust recognized impairments totaling $140.9 million in the second quarter, primarily related to changes in expected holding periods for certain properties. Additionally, the company reported a significant increase in general and administrative expenses, which rose by 67.7% to $23.5 million in the second quarter, largely due to restructuring and severance-related charges. The company also noted a decrease in property operating expenses, which fell by 6.6% to $109.9 million, reflecting the impact of property sales.
In terms of operational developments, Healthcare Realty Trust's portfolio consisted of 559 consolidated real estate properties across 32 states, totaling approximately 32.2 million square feet. The company provided leasing and property management services to 93% of its portfolio as of June 30, 2025. The company did not engage in any real estate acquisitions during the first half of 2025 but disposed of eight medical outpatient properties for a total sales price of $81.2 million, generating net proceeds of $66.8 million after seller financing and closing credits.
Looking ahead, Healthcare Realty Trust has expressed cautious optimism regarding its liquidity and capital resources. As of June 30, 2025, the company had $1.2 billion available to be drawn on its unsecured credit facility. The company anticipates that cash flows from operations will be sufficient to meet its liquidity needs, including funding additional investments and paying dividends. However, management acknowledged the potential impact of rising interest rates and economic conditions on its operations and financial performance, emphasizing the importance of monitoring market trends and tenant performance.
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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