Healthcare Realty Trust reports 5.5% NOI growth and $1.2B in asset sales for 2025
Healthcare Realty Trust has released its financial results for the fourth quarter and full year of 2025. The company reported steady growth in key metrics, including same-store cash net operating income and strong leasing activity. Leadership changes and cost-cutting measures were also highlighted in the latest update.
In the fourth quarter of 2025, the company achieved same-store cash net operating income (NOI) growth of 5.5%. This improvement was supported by tenant retention of 82.7% and cash leasing spreads of 3.7%. For the full year, same-store cash NOI rose by 4.8%, driven by a 103-basis-point increase in occupancy and tenant retention of 81.5%.
The company's financial performance included GAAP net income of $0.04 per share in Q4, alongside NAREIT FFO of $0.36 per share and normalised FFO of $0.40 per share. Funds from operations (FAD) reached $113.9 million for the quarter. Over the full year, GAAP net loss was $0.71 per share, while NAREIT FFO came in at $1.38 per share and normalised FFO at $1.61 per share. FAD for 2025 totalled $448.3 million.
Cost-saving efforts reduced general and administrative expenses by $10 million. The company also completed $682 million in asset sales during the fourth quarter and early 2026, bringing the total for the period to $1.2 billion. These sales were executed at a blended cap rate of 6.7%.
Leasing activity remained strong, with 1.5 million square feet of leases signed in Q4, including 316,000 square feet of new agreements. Moody's Investors Service affirmed the company's Baa2 credit rating in December 2025 and revised its outlook to stable.
Recent leadership appointments include Peter Scott as President and CEO, along with Daniel Gabbay as CFO. Additional experienced executives have joined the team to strengthen operations.
The latest financial results show Healthcare Realty Trust maintaining growth in occupancy and leasing activity. With cost reductions, asset sales, and leadership changes in place, the company's net debt to adjusted EBITDA ratio stands at 5.4x. No immediate changes in market capitalisation or stock price have been recorded since the earnings release.
