A real estate investment trust that owns and manages outpatient medical buildings — the clinics, doctors' offices, and surgery centers people visit without staying overnight. Founded in 1992 as the first REIT devoted solely to medical outpatient buildings, it grew through a 2022 merger with Healthcare Trust of America and now holds hundreds of properties, mostly on or near hospital campuses across the United States.
Same-store cash NOI grew 6.1% in H1 2026 while impairments fell to $42.8M from $140.9M, narrowing the net loss.
The pace of property impairments slowed sharply, and that changed the . fell 5.8% to $270.6 million as asset sales continued to shrink the top line, but the net loss narrowed to $43.5 million from $157.9 million a year ago because charges dropped to $42.8 million and fell 17.7%. The core portfolio is performing better than ever, but the company is still selling itself smaller.
Key takeaways
A net loss of $43.5 million was driven by $42.8 million in real estate impairments recognized in the quarter, down from $140.9 million in Q2 2025, as the volume of properties reclassified for sale moderated.
fell 5.8% to $270.6 million, as $65.2 million in rental income lost from property dispositions over the first half outweighed $26.0 million from leasing gains.
Same-store cash grew 6.1% to $308.5 million for the first six months of 2026, driven by leasing activity and contractual rent increases across the stabilized portfolio.
Section summaries
Management's Discussion and Analysis
Healthcare Realty Trust's Q2 2026 results show lower net loss driven by reduced impairment charges and interest expense, while same-store cash NOI grew 6.1%.
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increased 6.1% to $308.5 million for the first half of 2026, driven by leasing activity and contractual rent increases.
decreased 17.7% to $19.1 million for the first half, primarily from lower contractual interest due to reduced unsecured term loan balances and the repayment of Senior Notes due 2025.
The company issued $700 million in 3.00% due 2032, and liquidity stood at $1.6 billion available under the Delayed Draw Term Loan and Revolving Facility.
was $142.2 million for the quarter, down 12.9% but up 168.9% from Q1 2026 due to the timing of interest payments.
What changed
The $42.8 million in Q2 2026 impairments is the lowest quarterly charge since at least Q1 2025, suggesting the multi-year wave of asset sale-related write-downs flagged in every prior filing may be receding.
Same-store cash growth of 6.1% for the first half of 2026 sustained the acceleration first noted in Q1 2026 (7.1%), confirming the 5.0% full-year 2025 rate was not a one-time effect but a genuine improvement in the remaining portfolio's organic performance.
The $700 million issuance addresses the $1.3 billion in 2026–2027 debt maturities flagged in prior filings, though the 3.00% rate and exchangeable feature introduce a new dimension to the capital structure.
What to watch
Whether the $42.8 million in Q2 impairments results in actual realized losses upon sale, and whether the pace of impairments continues to moderate in Q3 2026.
Whether same-store cash growth can sustain the 6.1% rate in the second half of 2026 as the portfolio shrinks to fewer, higher-quality properties.
The impact of the $700 million on future and potential , and how the remaining 2026–2027 debt maturities are refinanced.
Whether full-year covers the , after Q1's $52.9 million and Q2's $142.2 million, with the H1 total still below a full dividend coverage run rate.
Rental income fell 6.6% to $37.8 million for the six months ended June 30, 2026, primarily due to $65.2 million from property dispositions, partially offset by $26.0 million from leasing gains.
Total decreased 17.7% to $19.1 million for the first half of 2026, mainly from lower contractual interest due to reduced unsecured term loan balances.
The company recognized $42.8 million in real estate impairments in Q2 2026, significantly down from $140.9 million in the prior-year period.
Liquidity remains strong with $1.6 billion available under the Delayed Draw Term Loan and Revolving Facility, and the company issued $700 million in 3.00% Exchangeable Senior Notes due 2032.
Property operating expenses decreased 7.0% for the six-month period, largely from a $24.7 million reduction tied to dispositions, partially offset by higher utilities and maintenance costs.
Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to market risk in the form of changing interest rates on its debt and mortgage notes. Management uses regular monitoring of market conditions and analysis techniques to manage this risk. During the six months ended June 30, 2026, there were no material cha…
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The Company is exposed to market risk in the form of changing interest rates on its debt and mortgage notes. Management uses regular monitoring of market conditions and analysis techniques to manage this risk. During the six months ended June 30, 2026, there were no material changes in the quantitative and qualitative disclosures about market risks presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financ…
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The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
There have been no material changes to our risk factors and other risks and uncertainties as described in Part I, "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes to our risk factors and other risks and uncertainties as described in Part I, "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.