Here are 1-3 brief analogies to describe Healthcare Realty Trust (HR):

• Imagine McDonald's, but instead of owning the land and buildings for fast-food restaurants, HR owns and leases out properties for hospitals, clinics, and doctor's offices.
• Like Realty Income (O), but specifically focused on owning and leasing medical office buildings and other healthcare facilities.

Healthcare Realty Trust (HR) primarily provides the following services:

• Medical Office Space Leasing: Leasing of specialized medical office spaces within their portfolio of high-quality properties to various healthcare providers.
• Property Management Services: Management and maintenance of their leased medical office buildings, ensuring a functional and professional environment for tenants and their patients.

Healthcare Realty Trust (symbol: HR) primarily leases medical office buildings and healthcare facilities to other companies and organizations within the healthcare sector.

Due to its highly diversified tenant base, Healthcare Realty Trust does not publicly disclose the specific names of its individual "major customers" (tenants). According to its public filings, no single tenant accounted for more than 2.8% of its total annualized rent as of December 31, 2023. This indicates a strategy of mitigating risk through a broad array of lessees rather than reliance on a few dominant ones.

Therefore, while HR sells primarily to other companies, specific names of major customer companies are not publicly available from the company. However, Healthcare Realty Trust categorizes its customer companies into the following types:

• Physician Groups: These comprise a significant portion of HR's tenants, including independent medical practices, multi-specialty clinics, and single-specialty groups covering a wide range of medical disciplines (e.g., cardiology, orthopedics, primary care). These can range from small local practices to larger regional groups.
• Hospital Systems: These are larger integrated healthcare networks, academic medical centers, and regional hospital systems that lease space for outpatient services, physician offices, and specialized clinics, often located adjacent to or on their campuses. While HR leases to various hospital systems, no single system is identified as a major customer in their public disclosures. Examples of such systems in the broader healthcare landscape include HCA Healthcare (symbol: HCA) and Tenet Healthcare (symbol: THC), but these are not necessarily named major tenants of HR.
• Other Healthcare-Related Organizations: This broad category includes various specialized healthcare service providers such as diagnostic imaging centers, urgent care clinics, rehabilitation centers, outpatient surgery centers, dialysis clinics, and other specialized treatment facilities.

Peter A. Scott, President and Chief Executive Officer

Peter A. Scott was appointed President and Chief Executive Officer of Healthcare Realty Trust in April 2025. Prior to this role, he served as Chief Financial Officer of Healthpeak Properties, Inc., an S&P 500 company with approximately $25 billion in assets, from 2017. Before joining Healthpeak, Mr. Scott was a Managing Director in the Real Estate Investment Banking Group at Barclays from 2014 to 2017. While at Barclays, he advised Healthpeak (then HCP) on its $4 billion spin-off of Quality Care Properties, which included $1.85 billion of debt financing. His extensive experience also includes various positions of increasing responsibility at financial services firms such as Credit Suisse from 2011 to 2014, Barclays from 2008 to 2011, and Lehman Brothers from 2002 to 2008.

Austen Helfrich, Executive Vice President and Chief Financial Officer

Austen Helfrich was appointed permanent Executive Vice President and Chief Financial Officer of Healthcare Realty Trust in December 2024, after serving as Interim CFO since October 2024. He previously held the position of First Vice President, Portfolio Strategy for the company since 2019, where he was responsible for the company's joint venture and dispositions strategy. Mr. Helfrich was instrumental in forming and expanding the company's joint venture program, which includes partnerships with Nuveen, CBRE Investment Management, and KKR. Before joining Healthcare Realty, he worked at Point72 Asset Management, focusing on investments in the healthcare services sector. His prior experience also includes roles at Columbus Hill Capital Management and in Citigroup's investment banking division.

Rob Hull, Executive Vice President and Chief Operating Officer

Rob Hull became Executive Vice President and Chief Operating Officer of Healthcare Realty Trust in October 2024. In this role, his responsibilities include overseeing the company's portfolio performance through the coordinated leadership of leasing, project management, asset management, and property operations. Mr. Hull served as Executive Vice President, Investments since 2017, and assumed responsibility for the company's portfolio leasing in late 2021.

Ryan Crowley, Executive Vice President and Chief Investment Officer

Ryan Crowley was promoted to Executive Vice President and Chief Investment Officer of Healthcare Realty Trust in October 2024. He is responsible for acquisitions, dispositions, and re/development, and also oversees joint venture relationships. Mr. Crowley has been with the company for over 18 years, serving as Senior Vice President, Investments since 2021, and leading the company's acquisition efforts since 2018, completing over $2.3 billion of acquisitions and involved in more than $5 billion in investment transactions.

Julie Wilson, Chief Administrative Officer

Julie Wilson became Chief Administrative Officer of Healthcare Realty Trust in October 2024. In her role, she leads the company's technology, marketing, corporate responsibility, and human resources teams. Ms. Wilson previously served as Executive Vice President, Operations since 2021, where she oversaw the largest portion of the company's over 550 employees and led its successful merger integration efforts.

The key risks to Healthcare Realty Trust (HR) include persistent unprofitability and slow revenue growth, a high debt load coupled with interest rate sensitivity, and the execution risks associated with its strategic overhaul.

1. Persistent Unprofitability and Slow Revenue Growth: Healthcare Realty Trust has faced persistent unprofitability, with net losses reportedly deepening at an annual rate of 70.2% over the past five years, and no clear path to profitability is forecasted before 2028. Revenue growth is also projected to be very low, or even decline, over the next few years. This ongoing unprofitability raises concerns about the company's dividend safety and its overall future financial performance.

2. High Debt Load and Interest Rate Sensitivity: HR carries a heavier-than-average debt load and exhibits weak interest coverage. The company, like many REITs, has been challenged by rising interest rates and economic volatility, impacting its financial stability. Healthcare Realty Trust has initiated efforts toward debt reduction and deleveraging to address this concern.

3. Execution Risks of Strategic Overhaul: Healthcare Realty Trust is undergoing a significant strategic overhaul, which includes asset dispositions, share repurchases, and a shift towards a more operations-focused model. However, there are multiple execution risks associated with this restructuring, and slower-than-expected progress in leasing or setbacks in implementing operational improvements could dilute projected earnings gains and delay the company's turnaround.

The addressable markets for Healthcare Realty Trust (HR) primarily revolve around the ownership, management, acquisition, and development of outpatient medical facilities, specifically medical office buildings (MOBs), across the United States.

Addressable Markets:

• U.S. Healthcare Real Estate Market: This market was valued at approximately $1.32 trillion in 2024 and is projected to reach $1.87 trillion by 2030, demonstrating a compound annual growth rate (CAGR) of 6.2% from 2024 to 2030. Other estimates suggest the market could reach US$2,270.40 billion by 2030.
• U.S. Medical Office Buildings (MOB) Market: The medical office buildings market in the United States generated revenues of approximately $14.08 billion in 2023 and is expected to reach $22.04 billion by 2030, with a CAGR of 6.6% from 2024 to 2030. Another projection indicates the MOB market is predicted to grow from $42.17 billion in 2024 to $79.16 billion by 2034, with a CAGR exceeding 6.5% from 2025 to 2034.

Healthcare Realty Trust (HR) is expected to drive future revenue growth over the next two to three years through several key initiatives and favorable market trends:

1. Increased Occupancy Rates and Robust Leasing Activity: The company anticipates continued growth in occupancy across its portfolio. Same-store occupancy has shown significant improvement, with a 90-basis point increase in Q3 2025, reaching 91.1% over the past two quarters. This momentum is supported by a robust leasing pipeline of 1.1 million square feet, with a high probability of completion for two-thirds of these leases. Management expects occupancy to build throughout 2025, with absorption gains in the second half of the year.
2. Strategic Redevelopment and Development Projects: Healthcare Realty Trust is focusing on value-add redevelopment and development initiatives. Two notable projects in Fort Worth and Raleigh are projected to generate approximately $8 million in stabilized Net Operating Income (NOI). Additionally, five new assets have been added to the redevelopment portfolio, with an anticipated incremental NOI contribution of nearly $8 million. These projects are part of the company's efforts to enhance its portfolio and optimize performance.
3. Portfolio Optimization and Strategic Dispositions: Under its "Healthcare Realty 2.0" strategic plan, the company is shifting towards an operations-driven model and optimizing its portfolio. This involves divesting non-core assets to focus on higher-growth, multi-tenant, on-campus medical outpatient buildings. As of Q3 2025, the company had sold $500 million of assets year-to-date at a blended cap rate of 6.5%, with approximately $700 million in additional dispositions almost entirely under binding contract or Letter of Intent (LOI), which is expected to enhance the NOI growth profile.
4. Rent Escalations and Strong Pricing Power: The company benefits from contractual rent escalators embedded in its leases. Annual lease escalators averaged 3.1% across new and renewal contracts in Q3 2025. Furthermore, cash leasing spreads were 3.9% in Q3 2025, indicating the ability to achieve higher rents on new and renewed leases.
5. Favorable Demographics and Strong Demand for Outpatient Medical Facilities: Healthcare Realty Trust operates in a sector driven by strong secular tailwinds. The aging U.S. population and persistent growth in healthcare spending contribute to long-term, inelastic demand for outpatient medical services. Management has emphasized that demand for outpatient medical space continues to exceed supply, with occupancy approaching a record 93% across the top 100 metros. This robust market environment provides a solid foundation for sustained revenue growth.

Share Repurchases

• Healthcare Realty Trust authorized a $500 million share repurchase program in October 2025, which remains valid until October 27, 2026.
• In 2024, the company repurchased approximately 31 million shares totaling $510 million at an average price of $16.56 per share.
• Through October 2024, the company repurchased 27.1 million shares totaling $446.8 million at an average price of $16.48 per share.

Share Issuance

• The number of shares outstanding for Healthcare Realty Trust significantly increased by 77.89% in 2022 from 2021 and by 49.26% in 2023 from 2022, primarily due to the all-stock merger with Healthcare Trust of America (HTA) in July 2022.
• In Q3 2025, the company's board authorized a $1 billion At-The-Market (ATM) equity program.

Outbound Investments

• In 2024, Healthcare Realty Trust generated approximately $1.3 billion in proceeds from joint venture and asset sale transactions, comprising $770 million from joint ventures and $491 million from asset sales.
• During Q3 2025 and through October 2025, the company completed asset sales totaling $404 million, contributing to year-to-date sales of $486 million at a blended 6.5% cap rate.
• As of October 2025, approximately $700 million of additional asset sales were under contract or Letter of Intent (LOI).

Capital Expenditures

• Healthcare Realty Trust anticipates approximately $300 million in capital investment for redevelopments over the three years following Q2 2025.
• The primary focus of these capital expenditures is to reposition buildings, aiming to achieve higher rental rates, improved occupancy, and increased cash-on-cash returns.
• In Q3 2025, five new assets were added to the redevelopment portfolio with an expected incremental Net Operating Income (NOI) of nearly $8 million.