Healthcare Realty (HR) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 13, 2026 astatine 9:42 AM CST 48 min read

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Friday, February 13, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Peter A. Scott

• Chief Operating Officer — Robert E. Hull

• Chief Financial Officer — Dan Gabbay

• Chief Investment Officer — Ryan E. Crowley

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Peter A. Scott. Thanks, Ron. Joining maine connected the telephone contiguous are Robert E. Hull, our COO, and Dan Gabbay, our CFO. Also disposable for the Q&A information of the telephone is Ryan E. Crowley, our CIO. 2025 was a transformational twelvemonth astatine Healthcare Realty Trust Incorporated 2.0. When I joined the company, it rapidly became evident we had an accidental to go the wide person successful the outpatient aesculapian sector. We person the best-in-class portfolio, we person standard successful the close markets, and we are aligned with starring wellness systems. We besides had the makings of a large squad but needed to execute amended and beryllium much ambitious. In a abbreviated play of time, we person added endowment crossed the enactment that further differentiates our platform. I americium immensely arrogant of the squad and however they roseate to the situation during this captious time. We person much to bash and it volition not ever beryllium a linear path, but our ngo is elemental and unwavering: to run and marque decisions each time to thrust semipermanent shareholder value. To that end, I wanted to supply an update connected the three-year strategical program we published successful July. Within the plan, we outlined the cardinal steps being taken to overhaul each facets of the organization. I americium pleased to study successful conscionable a fewer quarters we are tracking up of schedule. First, the revamp of the plus absorption level is complete. We person a caller enactment squad that is spearheading improved alignment betwixt plus absorption and leasing. In addition, we person incorporated a caller leasing exemplary to thrust ROI crossed the portfolio. The heightened rigor for achieving the champion imaginable economical returns is manifesting into amended results.

Under the caller platform, currency leasing spreads person improved 60 ground points, tenant retention has improved 220 ground points, and we spot a meaningful uptick successful our lease IRRs and lease payback period. The extremity result, arsenic we repetition this 4th aft quarter, volition beryllium a higher prime net watercourse and improved net growth. Second, we person successfully achieved our people of $10,000,000 run-rate G&A savings. Our full G&A disbursal present sits astatine $45,000,000 and ranks favorably to peers. We besides improved our spot NOI margins by 60 ground points and judge determination is further borderline enlargement to attain implicit the coming years. Third, we person completed our ambitious plus disposition plan.