Financial Analysis

Commitments and Contingencies Legal Proceedings From time to time, the Company is 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 Companys consolidated financial position, results of operations or cash flows. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Notes and Bonds Payable The table below details the Companys notes and bonds payable as of June 30, 2026 and December 31, 2025. MATURITY DATE 1 BALANCE AS OF 2 EFFECTIVE INTEREST RATE as of 6/30/2026 Dollars in thousands 6/30/2026 12/31/2025 $1.5 billion Revolving Facility 3 7/29 $ $ 120,000 4.47 % Commercial Paper Program 4 7/29 275,823 4.07 % $200 million Unsecured Term Loan 7/27 199,751 199,635 4.42 % $300 million Unsecured Term Loan 1/28 299,283 299,055 4.27 % $400 million Unsecured Delayed Draw Term Loan 5/29 N/A Senior Notes due 2026 5 8/26 595,026 4.94 % Senior Notes due 2027 7/27 495,071 492,693 4.76 % Senior Notes due 2028 1/28 298,973 298,653 3.85 % Senior Notes due 2030 2/30 602,994 597,188 5.30 % Senior Notes due 2030 3/30 297,824 297,610 2.72 % Senior Notes due 2031 3/31 297,131 296,866 2.25 % Senior Notes due 2031 3/31 695,559 685,873 5.13 % Exchangeable Senior Notes due 2032 1/32 681,380 3.53 % Mortgage notes payable 6 7/26-12/26 23,155 28,824 3.6% - 4.08% $ 4,166,944 $ 3,911,423 1 Maturity date does not include extension options. 2 Balance is presented net of discounts and issuance costs and inclusive of premiums, where applicable. 3 As of June 30, 2026, the Company had $1.2 billion available to be drawn on its $1.5 billion Revolving Facility after Commercial Paper Program borrowings. 4 Commercial Paper Program borrowings are backstopped by the availability under the Revolving Facility. As such, the Company uses the maturity date of the Revolving Facility. As …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Below is a detail of the amounts by category: THREE MONTHS ENDED June 30, SIX MONTHS ENDED June 30, in thousands 2026 2025 2026 2025 Type of Revenue Parking income $ 2,432 $ 2,369 $ 4,501 $ 4,231 Management fee income/other 1 5,601 4,614 11,235 9,140 $ 8,033 $ 6,983 $ 15,736 $ 13,371 1 Includes the recovery of certain expenses under the financing receivable as outlined in the management agreement

DisaggregationOfRevenueTableTextBlock

Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practical to estimate that value. Cash and cash equivalents - The carrying amount approximates fair value (level 1 inputs) due to the short-term maturity of these investments. Real estate notes receivable - Real estate notes receivable are recorded in other assets on the Company's Condensed Consolidated Balance Sheets. Fair value is estimated using cash flow analyses, based on current interest rates for similar types of arrangements using level 2 inputs in the hierarchy. Borrowings under the revolving facility, commercial paper program, and the term loans - The carrying amount approximates fair value because the borrowings are based on variable market interest rates. Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Companys current interest rates for similar types of borrowing arrangements. Interest rate swap agreements - Interest rate swap agreements are recorded in other assets/liabilities on the Company's Condensed Consolidated Balance Sheets at fair value. Fair value is estimated by utilizing pricing models, level 2 inputs, which consider forward yield curves and discount rates. See Note 5 for additional information. The table below details the fair values and carrying values for notes and bonds payable and real estate notes …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Leases Lessor Accounting The Companys properties generally are leased pursuant to non-cancelable, fixed-term operating leases with expiration dates through 2054. Some leases provide tenants with fixed rent renewal terms while others have market rent renewal terms. Some leases provide the lessee, during the term of the lease, with an option or right of first refusal to purchase the leased property. The Companys single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property. The Company's leases have escalators that are predominately based on a stated percentage, while others are based on an index such as the Consumer Price Index (""CPI""). In addition, most of the Company's leases include non-lease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment. The Company adopted an accounting policy to combine lease and non-lease components. Rent escalators based on indices and reimbursements of operating expenses that are not included in the lease rate are considered variable lease payments. Variable payments are recognized in the period earned. Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2026 was $270.6 million and $538.1 million, respectively. Lease income for the Company's oper …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Disaggregation of Income Statement Expenses, which will require entities to provide more detailed information in the notes to the financial statements related to certain expense captions on the face of the income statement. The ASU aims to increase transparency and provide investors with more detailed information about the nature of expenses reported on the face of the income statement. The new standard does not change the requirements for the presentation of expenses on the face of the income statement. Under this ASU, entities are required to disaggregate, in a tabular format, expense captions presented on the face of the income statement excluding earnings or losses from equity method investments if they include any of the following expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation or depletion. For any remaining items within each relevant expense caption, entities must provide a qualitative description of the nature of those expenses. The new ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of the adoption of this ASU on its consolidated financial statements and compliance with these new …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company is a REIT that owns, leases, acquires, invests in joint ventures, manages, finances, develops and redevelops its medical outpatient properties and reports the operating results in the accompanying Condensed Consolidated Financial Statements as one reportable segment. The CODM assesses performance and allocates resources based on consolidated net income (loss) as reported on the Company's Condensed Consolidated Statements of Operations. The Company uses net income (loss) to monitor expected versus actual results to assess the segment's performance. The measure of the Company's reportable segment assets is reported on the Company's Condensed Consolidated Balance Sheets as total assets. Pursuant to ASU 2023-07, Segment Reporting (Topic 280), public entities are required to disclose more detailed information about significant reportable segment expenses that are regularly provided to the CODM. The table below details the significant expenses for the three and six months ended June 30, 2026 and 2025. THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, Dollars in thousands 2026 2025 2026 2025 Significant Segment Expenses: Property taxes $ 25,463 $ 29,029 $ 51,488 $ 57,839 Personnel 26,154 24,221 50,715 48,600 Utilities 20,750 22,189 41,792 44,140 Maintenance 24,369 24,746 50,117 53,493 Totals $ 96,736 $ 100,185 $ 194,112 $ 204,072 The following schedule reconciles net loss t o segment expenses for the three and six months ended June 30, 2026 and 2025 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Business Overview Healthcare Realty Trust Incorporated (the ""Company"") is a real estate investment trust (""REIT"") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of June 30, 2026, the Company had gross investments of approximately $ 10.3 billion in 501 cons olidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding assets held for sale. In addition, as of June 30, 2026, the Company had a weighted average ownership interest of approxima tel y 30% i n 62 real estate properties, excluding assets held for sale, held in unconsolidated joint ventures. See Note 2 below for more details regarding the Company's unconsolidated joint ventures. The Company's consolidated re al estate properties are located in 26 states and total approximately 28.9 million square feet. The Company provided leasing and property management services to 92% of its portfolio nationwide as of June 30, 2026. The Company is structured as an umbrella partnership REIT under which substantially all of its business is conducted through the operating partnership, Healthcare Realty Holdings, L.P. (the OP) , the day-to-day management of which is exclusively controlled by t …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Stockholders' Equity Common Stock The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2026, and the twelve months ended December 31, 2025: SIX MONTHS ENDED JUNE 30, 2026 TWELVE MONTHS ENDED DECEMBER 31, 2025 Balance, beginning of period 351,603,138 350,532,006 Conversion of OP units to common stock 22,228 Shares Repurchased (9,579,095) Non-vested share-based awards, net of withheld shares and forfeitures 695,717 1,048,904 Balance, end of period 342,719,760 351,603,138 Common Stock Dividends During the six months ended June 30, 2026, the Company declared and paid common stock dividends totaling $0.48 per share. On July 30, 2026, the Company declared a quarterly common stock dividend in the amount of $0.24 per share payable on August 26, 2026 to stockholders of record on August 11, 2026. Common Stock Repurchases On October 28, 2025, the Company's Board of Directors authorized the repurchase of up to $500.0 million of outstanding shares of the Company's common stock, superseding the previous $300.0 million stock repurchase authorization. The stock repurchase authorization expires on October 27, 2026, and the Company may suspend or terminate repurchases at any time without prior notice. Under the Maryland General Corporation Law, outstanding shares of common stock acquired by a corporation become authorized but unissued shares, which may be re-issued. During the three months ended March 31 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing