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Jun 30
Healthcare Realty Q2 2025 Earnings Report
Healthcare Realty reported a net loss but delivered strong leasing activity and improved same-store cash NOI during Q2 2025.
Key Takeaways
Despite posting a GAAP net loss for Q2 2025, Healthcare Realty showed operational improvements, including a rise in occupancy and same-store cash NOI growth, while continuing to dispose of non-core assets to improve balance sheet flexibility.
GAAP net loss was $157.9 million or $(0.45) per share
Normalized FFO per share was $0.41
FAD totaled $115.4 million with a 96% payout ratio
Same-store cash NOI grew by 5.1%, and occupancy rose to 90%
Healthcare Realty
Healthcare Realty
Healthcare Realty Revenue by Segment
Revenue by Segment
Rental Income Revenue
CapyFin.comInterest Income Revenue
CapyFin.comOther Operating Revenue
CapyFin.com Forward Guidance
Healthcare Realty raised its full-year Normalized FFO and same-store cash NOI growth guidance, while focusing on deleveraging and improving operational efficiency.
Positive Outlook
- Normalized FFO guidance increased to $1.57–$1.61 per share
- Same store cash NOI growth guidance raised to 3.25%–4.00%
- Asset sales expected to reach $900M including those under LOI
- Net Debt to Adjusted EBITDA expected to improve to 5.4x–5.7x
- Strong leasing momentum with 1.5M sq. ft. executed
Challenges Ahead
- GAAP EPS guidance revised lower to $(0.78) to $(0.73)
- Continued net losses driven by impairments and restructuring
- Interest expenses remain high amid refinancing risk
- Tenant retention, though strong, still implies some churn
- Dividend was reduced by 23% to improve payout sustainability