hr-20240802

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2024 (August 2, 2024)

Healthcare Realty Trust Incorporated

(Exact name of registrant as specified in its charter)

Maryland

(Healthcare Realty Trust Incorporated)

001-35568

20-4738467

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

3310 West End Avenue, Suite 700

Nashville,

Tennessee

37203

(615)

269-8175

(Address of Principal Executive Office and Zip Code)

(Registrant’s telephone number, including area code)


www.healthcarerealty.com
(Internet address)

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.01 par value per share

New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):


Healthcare Realty Trust Incorporated			☐			Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Healthcare Realty Trust Incorporated			☐


Item 2.02			Results of Operations and Financial Condition.

On August 2, 2024, Healthcare Realty Trust Incorporated (the “Company”) filed an 8-K reporting its second quarter earnings press release (the “Original Report”). Included in the Original Report as Exhibit 99.1 was the Company’s second quarter earnings press release, dated August 2, 2024 (the “Earnings Release”). The Earnings Release stated that the Company affirms its 2024 Normalized FFO per share guidance range and contained a mislabeled header in a table on page 3 under the “Guidance” section. The Company corrected the language to state that it increased its 2024 Normalized FFO per share guidance range, and the second column header in the table has been corrected. The Earnings Release with these corrections is furnished as Exhibit 99.1 to this Current Report on Form 8-K/A and is incorporated herein by reference in its entirety. There were no other changes to the Earnings Release included in the Original Report.


Item 7.01			Regulation FD Disclosure

On August 2, 2024, the Company furnished its Supplemental Information for the second quarter ended June 30, 2024, which is also contained on its website (www.healthcarerealty.com). The Supplemental Information with the corrections identified above within the "Guidance" section on page 6 is furnished as Exhibit 99.2 to this Current Report on Form 8-K/A. There were no other changes to the Supplemental Information included in the Original Report.


Item 9.01			Financial Statements and Exhibits.

(d) Exhibits.


99.1			Second quarter earnings press release, dated August 2, 2024.
99.2			Supplemental Information for the second quarter ended June 30, 2024.
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




	Healthcare Realty Trust Incorporated
Date: August 2, 2024	By:	/s/ J. Christopher Douglas
		Name: J. Christopher Douglas
		Title: Executive Vice President - Chief Financial Officer

Document

Ron Hubbard

Vice President, Investor Relations

P: 615.269.8290

News Release

HEALTHCARE REALTY TRUST REPORTS RESULTS FOR THE SECOND QUARTER

The Company is focused on its top priorities of capital allocation and operational momentum to accelerate FFO growth and improve dividend coverage.

CAPITAL ALLOCATION MOMENTUM

•Generated approximately $400 million of proceeds from JV and asset sale transactions through the second quarter

•Additional transactions under contract or LOI that are expected to increase proceeds to more than $1 billion, with the majority of these transactions occurring by the end of the third quarter

•Repurchased 18.5 million shares to date, totaling $294.5 million

OPERATIONAL MOMENTUM

•Delivered multi-tenant absorption of 183,000 square feet year-to-date, or 55 basis points, exceeding expectations for the first half of 2024

•Generated strong new leasing momentum with new leases of approximately 432,000 square feet, the fourth consecutive quarter above 400,000

•Improved tenant retention to 85.5%, compared to 84.8% in first quarter 2024 and 79.3% for full year 2023

NASHVILLE, Tennessee, August 2, 2024 - Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the second quarter ended June 30, 2024. Net (loss) income attributable to common stockholders for the three months ended June 30, 2024 was $(143.8) million, or $(0.39) per diluted common share. Normalized FFO per share totaled $0.38 for the three months ended June 30, 2024, and $0.39 excluding approximately $3.0 million of Steward revenue reserves.

CAPITAL ALLOCATION

•The Company generated approximately $400 million of proceeds from JV and asset sale transactions through the second quarter, which included the following:

◦$271 million from the previously disclosed KKR JV

◦$126 million from asset sales

•The Company has additional transactions under contract and letters of intent that are expected to increase proceeds to more than $1 billion, including the following:

◦Property contributions into the Company's existing KKR and Nuveen joint ventures expected to generate proceeds of approximately $400 million

◦Additional asset sales expected to generate proceeds of approximately $250 million

◦Expect majority of the transactions to occur in the third quarter.


			HEALTHCAREREALTY.COM \| PAGE 1 OF 8

•Year-to-date, the Company has repurchased 18.5 million shares totaling $294.5 million at an average price of $15.89 per share.

MULTI-TENANT OCCUPANCY AND ABSORPTION

•Multi-tenant sequential occupancy gains exceeded expectations provided in the February 2024 Investor Presentation as shown below:

2Q 2024 ACTUAL

Absorption (SF)

121,924

Change in occupancy (bps)

+ 37

•The multi-tenant portfolio leased percentage was 87.6% at June 30, which was 170 basis points greater than occupancy of 85.9%.

•Multi-tenant occupancy has increased by 112 basis points since third quarter of 2023. For the Legacy HTA properties, multi-tenant occupancy has increased by 172 basis points for the same period.

•An updated multi-tenant occupancy and NOI bridge can be found on page 5 of the Key Highlights Investor Presentation located on the Company's website.

LEASING

•Portfolio leasing activity that commenced in the second quarter totaled 1,301,000 square feet related to 369 leases:

◦934,000 square feet of renewals

◦367,000 square feet of new and expansion lease commencements

•The Company signed new leases totaling approximately 432,000 square feet in the quarter.

SAME STORE

•Same Store cash NOI for the second quarter increased 2.3% over the same quarter in the prior year, and 3.5% excluding Steward revenue reserves.

•Tenant retention for the second quarter was 85.5%

•Operating expense decreased 0.9% over the same quarter in the prior year

•Second quarter predictive growth measures in the Same Store portfolio include:

◦Average in-place rent increases of 2.8%

◦Future annual contractual increases of 3.1% for leases commencing in the quarter.

◦Weighted average MOB cash leasing spreads of 2.9% on 789,000 square feet renewed:

▪10% (<0% spread)

▪5% (0-3%)

▪61% (3-4%)

▪24% (>4%)



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 2 OF 8

BALANCE SHEET

•Net debt to adjusted EBITDA was 6.6 times as of June 30, 2024 and is expected to be approximately 6.4 times once additional joint ventures and dispositions are completed.

•In June 2024, the Company repaid $100 million of the $350 million Unsecured Term Loan and exercised its second option to extend the maturity date for one year to July 2025 for a fee of approximately $0.3 million.

DIVIDEND

•The Company is focused on its top priorities of capital allocation and operational momentum to accelerate earnings growth and improve dividend coverage.

•A dividend of $0.31 per share was paid in May 2024. A dividend of $0.31 per share will be paid on August 28, 2024 to stockholders and OP unitholders of record on August 12, 2024.

GUIDANCE

•The Company increased its 2024 Normalized FFO per share guidance as shown below:


	ACTUAL		EXPECTED 3Q 2024			EXPECTED 2024
	2Q 2024	YTD		LOW	HIGH		LOW	HIGH
Earnings per share	$(0.39)	$(1.22)		$(0.11)	$(0.10)		$(1.50)	$(1.40)
NAREIT FFO per share	$0.33	$0.03		$0.35	$0.36		$0.77	$0.82
Normalized FFO per share	$0.38	$0.77		$0.38	$0.39		$1.53	$1.58

•The Company's 2024 guidance range includes:

◦Activities outlined in the Components of Expected FFO on page 30 of the Supplemental Information

◦Completed share repurchases and expected debt repayment from JV and asset sale transactions. The partial-year net accretion is expected to be approximately $0.01 per share of normalized FFO in 2024

◦Seasonal utilities are expected to increase by approximately $2.0 million in the third quarter

◦Previously disclosed single-tenant vacate in the third quarter is expected to reduce rental revenue by $0.6 million in the third quarter and an additional $0.3 million in the fourth quarter

◦Steward Health rental income reduction of $3.6 million, comprised of $3.0 million of second quarter revenue reserves and loss of $0.6 million of straight-line rent income for the second through the fourth quarter

The 2024 annual guidance range reflects the Company's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, and operating and general and administrative expenses. The Company's guidance does not contemplate impacts from gains or losses from

dispositions, potential impairments, or debt extinguishment costs, if any. There can be no assurance that the Company's actual results will not be materially higher or lower than these expectations. If actual results vary from these assumptions, the Company's expectations may change.



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 3 OF 8

EARNINGS CALL

•On Friday, August 2, 2024, at 12:00 p.m. Eastern Time, Healthcare Realty Trust has scheduled a conference call to discuss earnings results, quarterly activities, general operations of the Company and industry trends.

•Simultaneously, a webcast of the conference call will be available to interested parties at https://investors.healthcarerealty.com/corporate-profile/webcasts under the Investor Relations section. A webcast replay will be available following the call at the same address.

•Live Conference Call Access Details:

◦Domestic Toll-Free Number: +1 404-975-4839 access code 445920;

◦All Other Locations: +1 833-470-1428 access code 445920.

•Replay Information:

◦Domestic Toll-Free Number: +1 929-458-6194 access code 752070;

◦All Other Locations: +1 866-813-9403 access code 752070.

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes nearly 700 properties totaling over 40 million square feet concentrated in 15 growth markets.

Additional information regarding the Company, including this quarter's operations, can be found at www.healthcarerealty.com. In addition to the historical information contained within, this press release contains certain forward-looking statements with respect to the Company. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, plans or predictions of the future, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially and in adverse ways from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, without limitation, the following: the Company's expected results may not be achieved; failure to realize the expected benefits of the Merger; significant transaction costs and/or unknown or inestimable liabilities; risks related to future opportunities and plans for the Company, including the uncertainty of expected future financial performance and results of the Company; the possibility that, if the Company does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline; general adverse economic and local real estate conditions; changes in economic conditions generally and the real estate market specifically; legislative and regulatory changes, including changes to laws governing the taxation of REITs and changes to laws governing the healthcare industry; the availability of capital; changes in interest rates; competition in the real estate industry; the supply and demand for operating properties in the Company’s proposed market areas; changes in accounting principles generally accepted in the US; policies and guidelines applicable to REITs; the availability of properties to acquire; the availability of financing; pandemics and other health concerns, and the measures intended to prevent their spread, including the currently ongoing COVID-19 pandemic; and the potential material adverse effect these matters may have on the Company’s business, results of operations, cash flows and financial condition. Additional information concerning the Company and its business, including additional factors that could materially and adversely affect the Company’s financial results, include, without limitation, the risks described under Part I, Item 1A - Risk Factors, in the Company’s 2023 Annual Report on Form 10-K and in its other filings with the SEC.



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 4 OF 8


Consolidated Balance Sheets
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


ASSETS
	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Real estate properties
Land	$1,287,532	$1,342,895	$1,343,265	$1,387,821	$1,424,453
Buildings and improvements	10,436,218	10,902,835	10,881,373	11,004,195	11,188,821
Lease intangibles	764,730	816,303	836,302	890,273	922,029
Personal property	12,501	12,720	12,718	12,686	12,615
Investment in financing receivables, net	122,413	122,001	122,602	120,975	121,315
Financing lease right-of-use assets	81,401	81,805	82,209	82,613	83,016
Construction in progress	97,732	70,651	60,727	85,644	53,311
Land held for development	59,871	59,871	59,871	59,871	78,411
Total real estate investments	12,862,398	13,409,081	13,399,067	13,644,078	13,883,971
Less accumulated depreciation and amortization	(2,427,709)	(2,374,047)	(2,226,853)	(2,093,952)	(1,983,944)
Total real estate investments, net	10,434,689	11,035,034	11,172,214	11,550,126	11,900,027
Cash and cash equivalents 1	137,773	26,172	25,699	24,668	35,904

Assets held for sale, net	34,530	30,968	8,834	57,638	151
Operating lease right-of-use assets	261,976	273,949	275,975	323,759	333,224
Investments in unconsolidated joint ventures	374,841	309,754	311,511	325,453	327,245
Other assets, net and goodwill	559,818	605,047	842,898	822,084	797,796
Total assets	$11,803,627	$12,280,924	$12,637,131	$13,103,728	$13,394,347

LIABILITIES AND STOCKHOLDERS' EQUITY
	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Liabilities
Notes and bonds payable	$5,148,153	$5,108,279	$4,994,859	$5,227,413	$5,340,272
Accounts payable and accrued liabilities	195,884	163,172	211,994	204,947	196,147
Liabilities of properties held for sale	1,805	700	295	3,814	222
Operating lease liabilities	230,601	229,223	229,714	273,319	278,479
Financing lease liabilities	75,199	74,769	74,503	74,087	73,629
Other liabilities	177,293	197,763	202,984	211,365	219,694
Total liabilities	5,828,935	5,773,906	5,714,349	5,994,945	6,108,443


Redeemable non-controlling interests	3,875	3,880	3,868	3,195	2,487

Stockholders' equity
Preferred stock, $0.01 par value; 200,000 shares authorized	—	—	—	—	—
Common stock, $0.01 par value; 1,000,000 shares authorized	3,643	3,815	3,810	3,809	3,808
Additional paid-in capital	9,340,028	9,609,530	9,602,592	9,597,629	9,595,033
Accumulated other comprehensive income (loss)	6,986	4,791	(10,741)	17,079	9,328
Cumulative net income attributable to common stockholders	574,178	717,958	1,028,794	1,069,327	1,137,171
Cumulative dividends	(4,037,693)	(3,920,199)	(3,801,793)	(3,684,144)	(3,565,941)
Total stockholders' equity	5,887,142	6,415,895	6,822,662	7,003,700	7,179,399
Non-controlling interest	83,675	87,243	96,252	101,888	104,018
Total Equity	5,970,817	6,503,138	6,918,914	7,105,588	7,283,417
Total liabilities and stockholders' equity	$11,803,627	$12,280,924	$12,637,131	$13,103,728	$13,394,347

12Q 2024 cash and cash equivalents includes $96.0 million of proceeds held in a cash escrow account from a portfolio disposition that closed on June 28, 2024 and was received by the Company on July 1, 2024.



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 5 OF 8


Consolidated Statements of Income
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA



	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Revenues
Rental income 1	$308,135	$318,076	$322,076	$333,335	$329,680
Interest income	3,865	4,538	4,422	4,264	4,233
Other operating	4,322	4,191	3,943	4,661	4,230
	316,322	326,805	330,441	342,260	338,143
Expenses
Property operating	117,719	121,078	121,362	131,639	125,395
General and administrative	14,002	14,787	14,609	13,396	15,464
Normalizing items 2	—	—	(1,445)	—	(275)
Normalized general and administrative	14,002	14,787	13,164	13,396	15,189
Transaction costs	431	395	301	769	669
Merger-related costs	—	—	1,414	7,450	(15,670)
Depreciation and amortization	173,477	178,119	180,049	182,989	183,193
	305,629	314,379	317,735	336,243	309,051
Other income (expense)
Interest expense before merger-related fair value	(52,393)	(50,949)	(52,387)	(55,637)	(54,780)
Merger-related fair value adjustment	(10,064)	(10,105)	(10,800)	(10,667)	(10,554)
Interest expense	(62,457)	(61,054)	(63,187)	(66,304)	(65,334)
Gain on sales of real estate properties and other assets	38,338	22	20,573	48,811	7,156
Gain on extinguishment of debt	—	—	—	62	—
Impairment of real estate assets and credit loss reserves	(132,118)	(15,937)	(11,403)	(56,873)	(55,215)
Impairment of goodwill	—	(250,530)	—	—	—
Equity loss from unconsolidated joint ventures	(146)	(422)	(430)	(456)	(17)
Interest and other (expense) income, net	(248)	275	65	139	592
	(156,631)	(327,646)	(54,382)	(74,621)	(112,818)
Net (loss) income	$(145,938)	$(315,220)	$(41,676)	$(68,604)	$(83,726)
Net loss (income) attributable to non-controlling interests	2,158	4,384	1,143	760	967
Net (loss) income attributable to common stockholders	$(143,780)	$(310,836)	$(40,533)	$(67,844)	$(82,759)


Basic earnings per common share	$(0.39)	$(0.82)	$(0.11)	$(0.18)	$(0.22)
Diluted earnings per common share	$(0.39)	$(0.82)	$(0.11)	$(0.18)	$(0.22)

Weighted average common shares outstanding - basic	372,477	379,455	379,044	378,925	378,897
Weighted average common shares outstanding - diluted 3	372,477	379,455	379,044	378,925	378,897

1Rental income was reduced by $3.0 million for Steward Health revenue reserves. This consisted of $2.2 million for April and prepetition rent for May as well as $0.8 million for March. In addition, the Company reversed $2.2 million of straight-line rent receivable against rental income.

24Q 2023 normalizing items include severance costs and 2Q 2023 includes non-routine legal costs.

3Potential common shares are not included in the computation of diluted earnings per share when a loss exists, as the effect would be an antidilutive per share amount. As a result, the Company's OP totaling 3,657,682 units was not included.



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 6 OF 8


Reconciliation of FFO, Normalized FFO and FAD 1,2,3
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA



	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Net (loss) income attributable to common stockholders	$(143,780)	$(310,836)	$(40,533)	$(67,844)	$(82,759)
Net loss attributable to common stockholders/diluted share 3	$(0.39)	$(0.82)	$(0.11)	$(0.18)	$(0.22)

Gain on sales of real estate assets	(33,431)	(22)	(20,573)	(48,811)	(7,156)
Impairments of real estate assets	120,917	15,937	11,403	56,873	55,215
Real estate depreciation and amortization	177,350	181,161	182,272	185,143	185,003
Non-controlling loss from partnership units	(2,077)	(4,278)	(491)	(841)	(1,027)
Unconsolidated JV depreciation and amortization	4,818	4,568	4,442	4,421	4,412
FFO adjustments	$267,577	$197,366	$177,053	$196,785	$236,447
FFO adjustments per common share - diluted	$0.71	$0.51	$0.46	$0.51	$0.62
FFO	$123,797	$(113,470)	$136,520	$128,941	$153,688
FFO per common share - diluted 4	$0.33	$(0.30)	$0.36	$0.34	$0.40

Transaction costs	431	395	301	769	669
Merger-related costs	—	—	1,414	7,450	(15,670)
Lease intangible amortization	129	175	261	213	240

Non-routine legal costs/forfeited earnest money received	465	—	(100)	—	275
Debt financing costs	—	—	—	(62)	—
Severance costs	—	—	1,445	—	—
Credit losses and gains on other assets, net 5	8,525	—	—	—	—
Impairment of goodwill	—	250,530	—	—	—
Merger-related fair value adjustment	10,064	10,105	10,800	10,667	10,554
Unconsolidated JV normalizing items 6	89	87	89	90	93
Normalized FFO adjustments	$19,703	$261,292	$14,210	$19,127	$(3,839)
Normalized FFO adjustments per common share - diluted	$0.05	$0.68	$0.04	$0.05	$(0.01)
Normalized FFO	$143,500	$147,822	$150,730	$148,068	$149,849
Normalized FFO per common share - diluted	$0.38	$0.39	$0.39	$0.39	$0.39

Non-real estate depreciation and amortization	313	485	685	475	802
Non-cash interest amortization, net 7	1,267	1,277	1,265	1,402	1,618
Rent reserves, net 8	1,261	(151)	1,404	442	(54)
Straight-line rent income, net	(6,799)	(7,633)	(7,872)	(8,470)	(8,005)
Stock-based compensation	3,383	3,562	3,566	2,556	3,924
Unconsolidated JV non-cash items 9	(148)	(122)	(206)	(231)	(316)
Normalized FFO adjusted for non-cash items	142,777	145,240	149,572	144,242	147,818
2nd generation TI	(12,287)	(20,204)	(18,715)	(21,248)	(17,236)
Leasing commissions paid	(10,012)	(15,215)	(14,978)	(8,907)	(5,493)
Building capital	(12,835)	(5,363)	(17,393)	(14,354)	(8,649)
Total maintenance capex	(35,134)	(40,782)	(51,086)	(44,509)	(31,378)
FAD	$107,643	$104,458	$98,486	$99,733	$116,440
Quarterly/annual dividends	$118,627	$119,541	$118,897	$119,456	$119,444
FFO wtd avg common shares outstanding - diluted 10	376,556	383,413	383,326	383,428	383,409

1Funds from operations (“FFO”) and FFO per share are operating performance measures adopted by NAREIT. NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.”

2FFO, Normalized FFO and Funds Available for Distribution ("FAD") do not represent cash generated from operating activities determined in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered alternatives to net income attributable to common stockholders as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity.

3Potential common shares are not included in the computation of diluted earnings per share when a loss exists, as the effect would be an antidilutive per share amount.

4For 1Q 2024, basic weighted average common shares outstanding was the denominator used in the per share calculation.

5Comprised of $11.2 million of credit loss reserves and $2.2 million write-off of prior period Steward Health straight-line rent, offset by $4.9 million gain on other assets.

6Includes the Company's proportionate share of normalizing items related to unconsolidated joint ventures such as lease intangibles and acquisition and pursuit costs.

7Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.

82Q 2024 includes $0.8 million related to the Steward Health revenue reserve for March.

9Includes the Company's proportionate share of straight-line rent, net and rent reserves, net related to unconsolidated joint ventures.

10The Company utilizes the treasury stock method, which includes the dilutive effect of nonvested share-based awards outstanding of 420,687 for the three months ended June 30, 2024. Also includes the diluted impact of 3,657,682 OP units outstanding.



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 7 OF 8


Reconciliation of Non-GAAP Measures
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED

Management considers funds from operations ("FFO"), FFO per share, normalized FFO, normalized FFO per share, funds available for distribution ("FAD") to be useful non-GAAP measures of the Company's operating performance. A non-GAAP financial measure is generally defined as one that purports to measure historical financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable measure determined in accordance with GAAP. Set forth below are descriptions of the non-GAAP financial measures management considers relevant to the Company's business and useful to investors.

The non-GAAP financial measures presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income (determined in accordance with GAAP), as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs.

FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”). NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.” The Company defines Normalized FFO as FFO excluding acquisition-related expenses, lease intangible amortization and other normalizing items that are unusual and infrequent in nature. FAD is presented by adding to Normalized FFO non-real estate depreciation and amortization, deferred financing fees amortization, share-based compensation expense and rent reserves, net; and subtracting maintenance capital expenditures, including second generation tenant improvements and leasing commissions paid and straight-line rent income, net of expense. The Company's definition of these terms may not be comparable to that of other real estate companies as they may have different methodologies for computing these amounts. FFO, Normalized FFO and FAD do not represent cash generated from operating activities determined in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity. FFO, Normalized FFO and FAD should be reviewed in connection with GAAP financial measures.

Management believes FFO, FFO per share, Normalized FFO, Normalized FFO per share, and FAD provide an understanding of the operating performance of the Company’s properties without giving effect to certain significant non-cash items, including depreciation and amortization expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. The Company believes that by excluding the effect of depreciation, amortization, gains or losses from sales of real estate, and other normalizing items that are unusual and infrequent, FFO, FFO per share, Normalized FFO, Normalized FFO per share and FAD can facilitate comparisons of operating performance between periods. The Company reports these measures because they have been observed by management to be the predominant measures used by the REIT industry and by industry analysts to evaluate REITs and because these measures are consistently reported, discussed, and compared by research analysts in their notes and publications about REITs.

Cash NOI and Same Store Cash NOI are key performance indicators. Management considers these to be supplemental measures that allow investors, analysts and Company management to measure unlevered property-level operating results. The Company defines Cash NOI as rental income and less property operating expenses. Cash NOI excludes non-cash items such as above and below market lease intangibles, straight-line rent, lease inducements, lease termination fees, tenant improvement amortization and leasing commission amortization. Cash NOI is historical and not necessarily indicative of future results.

Same Store Cash NOI compares Cash NOI for stabilized properties. Stabilized properties are properties that have been included in operations for the duration of the year-over-year comparison period presented. Accordingly, stabilized properties exclude properties that were recently acquired or disposed of, properties classified as held for sale, properties undergoing redevelopment, and newly redeveloped or developed properties.

The Company utilizes the redevelopment classification for properties where management has approved a change in strategic direction for such properties through the application of additional resources including an amount of capital expenditures significantly above routine maintenance and capital improvement expenditures.

Any recently acquired property will be included in the same store pool once the Company has owned the property for eight full quarters. Newly developed or redeveloped properties will be included in the same store pool eight full quarters after substantial completion.



HEALTHCARE REALTY TRUST INCORPORATED			HEALTHCAREREALTY.COM \| PAGE 8 OF 8

Document


2Q2024
Supplemental Information
FURNISHED AS OF AUGUST 2, 2024 - UNAUDITED


FORWARD LOOKING STATEMENTS & RISK FACTORS

This Supplemental Information report contains disclosures that are “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words and phrases such as “can,” “may,” “payable,” “indicative,” "predictive," “annualized,” “expect,” “expected,” “range of expectations,” "would have been," "budget," and other comparable terms in this report, and include, but are not limited to, statements related to the merger between Healthcare Realty Trust Incorporated (the “Company” or "HR") and Healthcare Trust of America, Inc. (“Legacy HTA”) that closed on July 20, 2022 (the “Merger”). These forward-looking statements are made as of the date of this report and are not necessarily indicative of future performance. These statements are based on the current plans and expectations of Company management and are subject to a number of unknown risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those described in this release or implied by such forward-looking statements. Such risks and uncertainties include, among other things, the following: the Company’s expected results may not be achieved; failure to realize the expected benefits of the Merger; risks related to future opportunities and plans for the Company, including the uncertainty of expected future financial performance and results of the Company; the possibility that, if the Company does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline; pandemics or other health crises, such as COVID-19; increases in interest rates; the availability and cost of capital at expected rates; competition for quality assets; negative developments in the operating results or financial condition of the Company's tenants, including, but not limited to, their ability to pay rent; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to release space at similar rates as vacancies occur; the Company's ability to renew expiring leases; government regulations affecting tenants' Medicare and Medicaid reimbursement rates and operational requirements; unanticipated difficulties and/or expenditures relating to future acquisitions and developments; changes in rules or practices governing the Company's financial reporting; the Company may be required under purchase options to sell properties and may not be able to reinvest the proceeds from such sales at rates of return equal to the return received on the properties sold; uninsured or underinsured losses related to casualty or liability; the incurrence of impairment charges on its real estate properties or other assets; and other legal and operational matters. Other risks, uncertainties and factors that could cause actual results to differ materially from those projected are detailed under the heading “Risk Factors,” in the Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2023, under the heading "Risk Factors" and other risks described from time to time thereafter in the Company's SEC filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Table of Contents


4			Highlights
8			Salient Facts
9			Corporate Information
10			Balance Sheet
11			Statements of Income
12			FFO, Normalized FFO, & FAD
13			Capital Funding & Commitments
14			Debt Metrics
15			Debt Covenants & Liquidity
16			JV and Disposition Activity
17			Joint Ventures
18			Re/development Activity
19			Portfolio
20			Health Systems
21			MOB Proximity to Hospital
22			Lease Maturity & Occupancy
23			Leasing Statistics
24			Same Store
26			NOI Reconciliations
28			EBITDA Reconciliations
29			Components of Net Asset Value
30			Components of Expected FFO



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 3


Highlights

The Company is focused on its top priorities of capital allocation and operational momentum to accelerate FFO growth and improve dividend coverage.

CAPITAL ALLOCATION MOMENTUM

•Generated approximately $400 million of proceeds from JV and asset sale transactions through the second quarter

•Additional transactions under contract or LOI that are expected to increase proceeds to more than $1 billion, with the majority of these transactions occurring by the end of the third quarter

•Repurchased 18.5 million shares to date, totaling $294.5 million

OPERATIONAL MOMENTUM

•Delivered multi-tenant absorption of 183,000 square feet year-to-date, or 55 basis points, exceeding expectations for the first half of 2024

•Generated strong new leasing momentum with new leases of approximately 432,000 square feet, the fourth consecutive quarter above 400,000

•Improved tenant retention to 85.5%, compared to 84.8% in first quarter 2024 and 79.3% for full year 2023

NET INCOME AND NORMALIZED FFO

•Net (loss) income attributable to common stockholders for the three months ended June 30, 2024 was $(143.8) million or $(0.39) per diluted common share.

•Normalized FFO per share totaled $0.38 for the three months ended June 30, 2024, and $0.39 excluding approximately $3.0 million of Steward revenue reserves.

CAPITAL ALLOCATION

•The Company generated approximately $400 million of proceeds from JV and asset sale transactions through the second quarter, which included the following:

◦$271 million from the previously disclosed KKR JV

◦$126 million from asset sales

•The Company has additional transactions under contract and letters of intent that are expected to increase proceeds to more than $1 billion, including the following:

◦Property contributions into the Company's existing KKR and Nuveen joint ventures expected to generate proceeds of approximately $400 million

◦Additional asset sales expected to generate proceeds of approximately $250 million

◦Expect majority of the transactions to occur in the third quarter.

•Year-to-date, the Company has repurchased 18.5 million shares totaling $294.5 million at an average price of $15.89 per share.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 4


Highlights

MULTI-TENANT OCCUPANCY AND ABSORPTION

•Multi-tenant sequential occupancy gains exceeded expectations provided in the February 2024 Investor Presentation as shown below:

2Q 2024 ACTUAL

Absorption (SF)

121,924

Change in occupancy (bps)

+ 37

•The multi-tenant portfolio leased percentage was 87.6% at June 30, which was 170 basis points greater than occupancy of 85.9%.

•Multi-tenant occupancy has increased by 112 basis points since third quarter of 2023. For the Legacy HTA properties, multi-tenant occupancy has increased by 172 basis points for the same period.

•An updated multi-tenant occupancy and NOI bridge can be found on page 5 of the Key Highlights Investor Presentation located on the Company's website.

LEASING

•Portfolio leasing activity that commenced in the second quarter totaled 1,301,000 square feet related to 369 leases:

◦934,000 square feet of renewals

◦367,000 square feet of new and expansion lease commencements

•The Company signed new leases totaling approximately 432,000 square feet in the quarter.

SAME STORE

•Same Store cash NOI for the second quarter increased 2.3% over the same quarter in the prior year, and 3.5% excluding Steward revenue reserves.

•Tenant retention for the second quarter was 85.5%.

•Operating expense decreased 0.9% over the same quarter in the prior year.

•Second quarter predictive growth measures in the Same Store portfolio include:

◦Average in-place rent increases of 2.8%.

◦Future annual contractual increases of 3.1% for leases commencing in the quarter.

◦Weighted average MOB cash leasing spreads of 2.9% on 789,000 square feet renewed:

▪10% (<0% spread)

▪5% (0-3%)

▪61% (3-4%)

▪24% (>4%)



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 5


Highlights

BALANCE SHEET

•Net debt to adjusted EBITDA was 6.6 times as of June 30, 2024 and is expected to be approximately 6.4 times once additional joint ventures and dispositions are completed.

DIVIDEND

•The Company is focused on its top priorities of capital allocation and operational momentum to accelerate earnings growth and improve dividend coverage.

•A dividend of $0.31 per share was paid in May 2024. A dividend of $0.31 per share will be paid on August 28, 2024 to stockholders and OP unitholders of record on August 12, 2024.

GUIDANCE

•The Company increased its 2024 Normalized FFO per share guidance as shown below:


	ACTUAL		EXPECTED 3Q 2024			EXPECTED 2024
	2Q 2024	YTD		LOW	HIGH		LOW	HIGH
Earnings per share	$(0.39)	$(1.22)		$(0.11)	$(0.10)		$(1.50)	$(1.40)
NAREIT FFO per share	$0.33	$0.03		$0.35	$0.36		$0.77	$0.82
Normalized FFO per share	$0.38	$0.77		$0.38	$0.39		$1.53	$1.58

•The Company's 2024 guidance range includes:

◦Activities outlined in the Components of Expected FFO on page 30 of the Supplemental Information

◦Seasonal utilities are expected to increase by approximately $2.0 million in the third quarter

◦Previously disclosed single-tenant vacate in the third quarter is expected to reduce rental revenue by $0.6 million in the third quarter and an additional $0.3 million in the fourth quarter



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 6


Highlights

EARNINGS CALL

•Live Conference Call Access Details:

◦Domestic Toll-Free Number: +1 404-975-4839 access code 445920;

◦All Other Locations: +1 833-470-1428 access code 445920.

•Replay Information:

◦Domestic Toll-Free Number: +1 929-458-6194 access code 752070;

◦All Other Locations: +1 866-813-9403 access code 752070.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 7


Salient Facts 1
AS OF JUNE 30, 2024


			Properties

			673 properties totaling 39.7M SF
			67 markets in 35 states
			92% managed by Healthcare Realty
			93% outpatient medical facilities
			60% of NOI in Top 15 Markets


			Capitalization

			$11.7B enterprise value as of 7/26/24
			$6.6B market capitalization as of 7/26/24
			366.7M shares/units outstanding as of 7/26/24
			376.6M diluted WA shares outstanding
			$0.31 quarterly dividend per share
			BBB/Baa2 S&P/Moody's
			43.8% net debt to enterprise value at 7/26/24
			6.4x run rate net debt to adjusted EBITDA

http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.80048775.0001360604-24-000096salientfacts-q22024_map.jpg.ashx

1 Includes properties held in joint ventures.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 8


Corporate Information

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As of June 30, 2024, the Company was invested in 673 real estate properties in 35 states totaling 39.7 million square feet and had an enterprise value of approximately $11.2 billion, defined as equity market capitalization plus the principal amount of debt less cash. The Company provided leasing and property management services to 92% of its portfolio.


EXECUTIVE OFFICERS

Todd J. Meredith
President and Chief Executive Officer

John M. Bryant, Jr.
Executive Vice President and General Counsel

J. Christopher Douglas
Executive Vice President and Chief Financial Officer

Robert E. Hull
Executive Vice President - Investments

Julie F. Wilson
Executive Vice President - Operations


			ANALYST COVERAGE

			BMO Capital Markets
			BTIG, LLC
			Citi Research
			Deutsche Bank Securities
			Green Street Advisors, Inc.
			J.P. Morgan Securities LLC
			Jefferies LLC
			KeyBanc Capital Markets Inc.
			Raymond James & Associates
			Scotiabank
			Wedbush Securities
			Wells Fargo Securities, LLC


BOARD OF DIRECTORS

J. Knox Singleton

Chairman, Healthcare Realty Trust Incorporated

Retired Chief Executive Officer, Inova Health System

Todd J. Meredith

President and Chief Executive Officer

Healthcare Realty Trust Incorporated

John V. Abbott

Retired Chief Executive Officer

Aviation Asset Management Group, General Electric Company

Nancy H. Agee

President and Chief Executive Officer

Carilion Clinic

Thomas N. Bohjalian

Retired Head of U.S. Real Estate

Cohen & Steers

Vicki U. Booth

President and Board Chair

Ueberroth Family Foundation

Ajay Gupta

Chief Executive Officer

Physician Rehabilitation Network

James J. Kilroy

President and Portfolio Manager

Willis Investment Counsel

Jay P. Leupp

Managing Partner and Senior Portfolio Manager

Terra Firma Asset Management, LLC

Peter F. Lyle

Executive Vice President

Medical Management Associates, Inc.

Constance B. Moore

Retired President and CEO

BRE Properties, Inc.

Christann M. Vasquez

Retired Healthcare Executive

David R. Emery (1944-2019)

Chairman Emeritus

Healthcare Realty Trust Incorporated



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 9


Balance Sheet
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA


ASSETS

	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Real estate properties
Land	$1,287,532	$1,342,895	$1,343,265	$1,387,821	$1,424,453
Buildings and improvements	10,436,218	10,902,835	10,881,373	11,004,195	11,188,821
Lease intangibles	764,730	816,303	836,302	890,273	922,029
Personal property	12,501	12,720	12,718	12,686	12,615
Investment in financing receivables, net	122,413	122,001	122,602	120,975	121,315
Financing lease right-of-use assets	81,401	81,805	82,209	82,613	83,016
Construction in progress	97,732	70,651	60,727	85,644	53,311
Land held for development	59,871	59,871	59,871	59,871	78,411
Total real estate investments	12,862,398	13,409,081	13,399,067	13,644,078	13,883,971
Less accumulated depreciation and amortization	(2,427,709)	(2,374,047)	(2,226,853)	(2,093,952)	(1,983,944)
Total real estate investments, net	10,434,689	11,035,034	11,172,214	11,550,126	11,900,027
Cash and cash equivalents 1	137,773	26,172	25,699	24,668	35,904

Assets held for sale, net	34,530	30,968	8,834	57,638	151
Operating lease right-of-use assets	261,976	273,949	275,975	323,759	333,224
Investments in unconsolidated joint ventures	374,841	309,754	311,511	325,453	327,245
Other assets, net and goodwill	559,818	605,047	842,898	822,084	797,796
Total assets	$11,803,627	$12,280,924	$12,637,131	$13,103,728	$13,394,347

LIABILITIES AND STOCKHOLDERS' EQUITY

	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Liabilities
Notes and bonds payable	$5,148,153	$5,108,279	$4,994,859	$5,227,413	$5,340,272
Accounts payable and accrued liabilities	195,884	163,172	211,994	204,947	196,147
Liabilities of properties held for sale	1,805	700	295	3,814	222
Operating lease liabilities	230,601	229,223	229,714	273,319	278,479
Financing lease liabilities	75,199	74,769	74,503	74,087	73,629
Other liabilities	177,293	197,763	202,984	211,365	219,694
Total liabilities	5,828,935	5,773,906	5,714,349	5,994,945	6,108,443


Redeemable non-controlling interests	3,875	3,880	3,868	3,195	2,487

Stockholders' equity
Preferred stock, $0.01 par value; 200,000 shares authorized	—	—	—	—	—
Common stock, $0.01 par value; 1,000,000 shares authorized	3,643	3,815	3,810	3,809	3,808
Additional paid-in capital	9,340,028	9,609,530	9,602,592	9,597,629	9,595,033
Accumulated other comprehensive income (loss)	6,986	4,791	(10,741)	17,079	9,328
Cumulative net income attributable to common stockholders	574,178	717,958	1,028,794	1,069,327	1,137,171
Cumulative dividends	(4,037,693)	(3,920,199)	(3,801,793)	(3,684,144)	(3,565,941)
Total stockholders' equity	5,887,142	6,415,895	6,822,662	7,003,700	7,179,399
Non-controlling interest	83,675	87,243	96,252	101,888	104,018
Total equity	5,970,817	6,503,138	6,918,914	7,105,588	7,283,417
Total liabilities and stockholders' equity	$11,803,627	$12,280,924	$12,637,131	$13,103,728	$13,394,347



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 10


Statements of Income
DOLLARS IN THOUSANDS




	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Revenues
Rental income 1	$308,135	$318,076	$322,076	$333,335	$329,680
Interest income	3,865	4,538	4,422	4,264	4,233
Other operating	4,322	4,191	3,943	4,661	4,230
	316,322	326,805	330,441	342,260	338,143
Expenses
Property operating	117,719	121,078	121,362	131,639	125,395
General and administrative	14,002	14,787	14,609	13,396	15,464
Normalizing items 2	—	—	(1,445)	—	(275)
Normalized general and administrative	14,002	14,787	13,164	13,396	15,189
Transaction costs	431	395	301	769	669
Merger-related costs	—	—	1,414	7,450	(15,670)
Depreciation and amortization	173,477	178,119	180,049	182,989	183,193
	305,629	314,379	317,735	336,243	309,051
Other income (expense)
Interest expense before merger-related fair value	(52,393)	(50,949)	(52,387)	(55,637)	(54,780)
Merger-related fair value adjustment	(10,064)	(10,105)	(10,800)	(10,667)	(10,554)
Interest expense	(62,457)	(61,054)	(63,187)	(66,304)	(65,334)
Gain on sales of real estate properties and other assets	38,338	22	20,573	48,811	7,156
Gain on extinguishment of debt	—	—	—	62	—
Impairment of real estate assets and credit loss reserves	(132,118)	(15,937)	(11,403)	(56,873)	(55,215)
Impairment of goodwill	—	(250,530)	—	—	—
Equity loss from unconsolidated joint ventures	(146)	(422)	(430)	(456)	(17)
Interest and other (expense) income, net	(248)	275	65	139	592
	(156,631)	(327,646)	(54,382)	(74,621)	(112,818)
Net (loss) income	$(145,938)	$(315,220)	$(41,676)	$(68,604)	$(83,726)
Net loss (income) attributable to non-controlling interests	2,158	4,384	1,143	760	967
Net (loss) income attributable to common stockholders	$(143,780)	$(310,836)	$(40,533)	$(67,844)	$(82,759)

Basic earnings per common share	$(0.39)	$(0.82)	$(0.11)	$(0.18)	$(0.22)
Diluted earnings per common share	$(0.39)	$(0.82)	$(0.11)	$(0.18)	$(0.22)

Weighted average common shares outstanding - basic	372,477	379,455	379,044	378,925	378,897
Weighted average common shares outstanding - diluted 3	372,477	379,455	379,044	378,925	378,897


STATEMENTS OF INCOME SUPPLEMENTAL INFORMATION

	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Interest income
Financing receivables	$2,094	$2,117	$2,132	$2,002	$2,053
Interest on mortgage and mezzanine loans	1,771	2,421	2,290	2,262	2,180
Total	$3,865	$4,538	$4,422	$4,264	$4,233

Other operating income
Parking income	$2,463	$2,545	$2,392	$2,751	$2,370
Management fee and miscellaneous income	1,859	1,646	1,551	1,910	1,860
Total	$4,322	$4,191	$3,943	$4,661	$4,230

24Q 2023 normalizing items include severance costs and 2Q 2023 includes non-routine legal costs.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 11


FFO, Normalized FFO, & FAD 1,2,3
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA




	2Q 2024	1Q 2024	4Q 2023	3Q 2023	2Q 2023
Net loss attributable to common stockholders	$(143,780)	$(310,836)	$(40,533)	$(67,844)	$(82,759)
Net loss attributable to common stockholders per diluted share 3	$(0.39)	$(0.82)	$(0.11)	$(0.18)	$(0.22)

Gain on sales of real estate assets	$(33,431)	$(22)	$(20,573)	$(48,811)	$(7,156)
Impairments of real estate assets	120,917	15,937	11,403	56,873	55,215
Real estate depreciation and amortization	177,350	181,161	182,272	185,143	185,003
Non-controlling loss from partnership units	(2,077)	(4,278)	(491)	(841)	(1,027)
Unconsolidated JV depreciation and amortization	4,818	4,568	4,442	4,421	4,412
FFO adjustments	$267,577	$197,366	$177,053	$196,785	$236,447
FFO adjustments per common share - diluted	$0.71	$0.51	$0.46	$0.51	$0.62
FFO	$123,797	$(113,470)	$136,520	$128,941	$153,688
FFO per common share - diluted 4	$0.33	$(0.30)	$0.36	$0.34	$0.40

Transaction costs	431	395	301	769	669
Merger-related costs	—	—	1,414	7,450	(15,670)
Lease intangible amortization	129	175	261	213	240

Non-routine legal costs/forfeited earnest money received	465	—	(100)	—	275
Debt financing costs	—	—	—	(62)	—
Severance costs	—	—	1,445	—	—
Credit losses and gains on other assets, net 5	8,525	—	—	—	—
Impairment of goodwill	—	250,530	—	—	—
Merger-related fair value adjustment	10,064	10,105	10,800	10,667	10,554
Unconsolidated JV normalizing items 6	89	87	89	90	93
Normalized FFO adjustments	$19,703	$261,292	$14,210	$19,127	$(3,839)
Normalized FFO adjustments per common share - diluted	$0.05	$0.68	$0.04	$0.05	$(0.01)
Normalized FFO	$143,500	$147,822	$150,730	$148,068	$149,849
Normalized FFO per common share - diluted	$0.38	$0.39	$0.39	$0.39	$0.39

Non-real estate depreciation and amortization	313	485	685	475	802
Non-cash interest amortization, net 7	1,267	1,277	1,265	1,402	1,618
Rent reserves, net 8	1,261	(151)	1,404	442	(54)
Straight-line rent income, net	(6,799)	(7,633)	(7,872)	(8,470)	(8,005)
Stock-based compensation	3,383	3,562	3,566	2,556	3,924
Unconsolidated JV non-cash items 9	(148)	(122)	(206)	(231)	(316)
Normalized FFO adjusted for non-cash items	142,777	145,240	149,572	144,242	147,818
2nd generation TI	(12,287)	(20,204)	(18,715)	(21,248)	(17,236)
Leasing commissions paid	(10,012)	(15,215)	(14,978)	(8,907)	(5,493)
Building capital	(12,835)	(5,363)	(17,393)	(14,354)	(8,649)
Total maintenance capex	(35,134)	(40,782)	(51,086)	(44,509)	(31,378)
FAD	$107,643	$104,458	$98,486	$99,733	$116,440
Quarterly dividends and OP distributions	$118,627	$119,541	$118,897	$119,456	$119,444
FFO wtd avg common shares outstanding - diluted 10	376,556	383,413	383,326	383,428	383,409

3Potential common shares are not included in the computation of diluted earnings per share when a loss exists, as the effect would be an antidilutive per share amount.

4For 1Q 2024, basic weighted average common shares outstanding was the denominator used in the per share calculation.

5Comprised of $11.2 million of credit loss reserves and $2.2 million write-off of prior period Steward Health straight-line rent, offset by $4.9 million gain on other assets.

6Includes the Company's proportionate share of normalizing items related to unconsolidated joint ventures such as lease intangibles and acquisition and pursuit costs.

7Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.

82Q 2024 includes $0.8 million related to the Steward Health revenue reserve for March.

9Includes the Company's proportionate share of straight-line rent, net and rent reserves, net related to unconsolidated joint ventures.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 12


Capital Funding & Commitments
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


ACQUISITION AND RE/DEVELOPMENT FUNDING
	2Q 2024		1Q 2024		4Q 2023		3Q 2023		2Q 2023
Acquisitions 1	$—		$—		$—		$11,450		$—
Re/development 2	44,796		21,580		32,272		30,945		32,068
1st generation TI & acquisition capex 3	13,010		12,421		7,632		9,013		10,258

MAINTENANCE CAPITAL EXPENDITURES FUNDING
	2Q 2024		1Q 2024		4Q 2023		3Q 2023		2Q 2023

2nd generation TI	$12,287		$20,204		$18,715		$21,248		$17,236
Leasing commissions paid	10,012		15,215		14,978		8,907		5,493
Building capital	12,835		5,363		17,393		14,354		8,649
	$35,134		$40,782		$51,086		$44,509		$31,378
% of Cash NOI
2nd generation TI	6.2	%	10.1	%	9.2	%	10.4	%	8.3	%
Leasing commissions paid	5.0	%	7.6	%	7.3	%	4.4	%	2.6	%
Building capital	6.5	%	2.7	%	8.5	%	7.0	%	4.2	%
	17.7	%	20.4	%	25.0	%	21.8	%	15.1	%

LEASING COMMITMENTS 4
	2Q 2024		1Q 2024		4Q 2023		3Q 2023		2Q 2023
Renewals
Square feet	788,862		1,454,998		582,239		625,762		638,587
2nd generation TI/square foot/lease year	$1.81		$2.39		$1.89		$1.76		$1.64
Leasing commissions/square foot/lease year	$1.33		$0.90		$1.66		$1.48		$1.19
Renewal commitments as a % of annual net rent	13.6	%	13.8	%	12.7	%	13.1	%	12.8	%
WALT (in months) 5	52.3		60.5		43.1		42.1		56.7

New leases
Square feet	252,795		337,357		315,243		344,524		205,565
2nd generation TI/square foot/lease year	$6.90		$7.32		$5.98		$5.57		$7.11
Leasing commissions/square foot/lease year	$1.98		$1.68		$1.72		$1.81		$1.40
New lease commitments as a % of annual net rent	43.3	%	42.8	%	33.4	%	32.1	%	45.0	%
WALT (in months) 5	82.6		92.8		90.2		85.8		81.3

All
Square feet	1,041,657		1,792,355		897,482		970,286		844,152


Leasing commitments as a % of annual net rent	22.6	%	20.5	%	21.9	%	22.6	%	21.7	%
WALT (in months) 5	59.6		66.6		59.6		57.6		62.7

1Acquisitions include properties acquired through joint ventures at the Company's ownership percentage.

2Re/development funding includes capital spend on re/developments, development completions and unstabilized properties.

3Acquisition capex includes near-term fundings underwritten as part of recent acquisitions. 1st generation tenant improvements for re/developments are excluded.

4Reflects leases commencing in the quarter. Excludes recently acquired or disposed properties, development completions, construction in progress, land held for development, corporate property, redevelopment properties, unstabilized properties, planned dispositions and assets classified as held for sale.

5WALT = weighted average lease term.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 13


Debt Metrics1
DOLLARS IN THOUSANDS


SUMMARY OF INDEBTEDNESS AS OF JUNE 30, 2024
	PRINCIPAL BALANCE	BALANCE 1	MATURITY DATE 2	MONTHS TO MATURITY 2	INTEREST EXPENSE	CONTRACTUAL INTEREST EXPENSE	CONTRACTUAL RATE		EFFECTIVE RATE		FAIR VALUE MERGER ADJUSTED
SENIOR NOTES	$250,000	$249,674	5/1/2025	10	$2,470	$2,422	3.88	%	4.12	%
	600,000	582,873	8/1/2026	25	7,189	5,251	3.50	%	4.94	%	Y
	500,000	485,889	7/1/2027	36	5,775	4,688	3.75	%	4.76	%	Y
	300,000	297,726	1/15/2028	43	2,785	2,719	3.63	%	3.85	%
	650,000	580,666	2/15/2030	68	7,666	5,037	3.10	%	5.30	%	Y
	299,500	296,984	3/15/2030	69	1,928	1,797	2.40	%	2.72	%
	299,785	296,086	3/15/2031	81	1,592	1,536	2.05	%	2.25	%
	800,000	658,263	3/15/2031	81	8,400	4,000	2.00	%	5.13	%	Y
	$3,699,285	$3,448,161		53	$37,805	$27,450	2.97	%	4.44	%
TERM LOANS	$250,000	$249,659	7/20/2025	13	$5,434	$5,434	SOFR + 1.04%		6.37	%
	200,000	199,750	5/31/2026	23	3,217	3,217	SOFR + 1.04%		6.37	%
	150,000	149,716	6/1/2026	23	2,413	2,413	SOFR + 1.04%		6.37	%
	300,000	299,970	10/31/2026	28	4,825	4,825	SOFR + 1.04%		6.37	%
	200,000	199,571	7/20/2027	36	3,217	3,217	SOFR + 1.04%		6.37	%
	300,000	298,498	1/20/2028	42	4,825	4,825	SOFR + 1.04%		6.37	%
	$1,400,000	$1,397,164		28	$23,931	$23,931			6.37	%
$1.5B CREDIT FACILITY	$250,000	$250,000	10/31/2027	40	$2,081	$2,081	SOFR + 0.94%		6.28	%

MORTGAGES	$53,005	$52,828	various	19	$530	$539	4.05	%	4.18	%
	$5,402,290	$5,148,153		44	$64,347	$54,001	4.01	%	5.05	%	$2,550,000
Less cash	(137,773)
Net debt	$5,264,517
Interest rate swaps					(3,803)	(3,803)
Interest cost capitalization					(974)	—
Unsecured credit facility fee & deferred financing costs					1,945	758

Financing right-of-use asset amortization					942	—
					$62,457	$50,956


DEBT MATURITIES SCHEDULE AS OF JUNE 30, 2024
	PRINCIPAL PAYMENTS
	BANK LOANS	SENIOR NOTES	MORTGAGE NOTES		TOTAL	WA RATE
2024			$7,726		$7,726	4.10	%
2025	$250,000	$250,000	16,375		516,375	5.09	%
2026	650,000	600,000	28,904		1,278,904	4.95	%
2027	450,000	500,000			950,000	4.97	%
2028	300,000	300,000			600,000	5.00	%

Thereafter		2,049,285			2,049,285	2.41	%
Total	$1,650,000	$3,699,285	$53,005		$5,402,290	4.01	%
Net debt					$5,264,517
Fixed rate debt balance	$1,075,000	$3,699,285	$53,005		$4,827,290
% fixed rate debt, net of cash			92	%
Company share of JV net debt		$20,299


INTEREST RATE SWAPS
MATURITY	AMOUNT	FIXED SOFR RATE
May 2026	$275,000	3.74	%
June 2026	150,000	3.83	%
December 2026	150,000	3.84	%
June 2027	200,000	4.27	%
December 2027	300,000	3.93	%
As of 6/30/2024	$1,075,000	3.92	%

1Balances are reflected net of discounts, fair value adjustments, and deferred financing costs and include premiums.

2Includes extension options.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 14


Debt Covenants & Liquidity
DOLLARS IN THOUSANDS


SELECTED FINANCIAL DEBT COVENANTS YEAR ENDED JUNE 30, 2024 1
	CALCULATION	REQUIREMENT	PER DEBT COVENANTS
Revolving credit facility and term loan
Leverage ratio	Total debt/total capital	Not greater than 60%	39.3	%
Secured leverage ratio	Total secured debt/total capital	Not greater than 30%	0.4	%
Unencumbered leverage ratio	Unsecured debt/unsecured real estate	Not greater than 60%	42.6	%
Fixed charge coverage ratio	EBITDA/fixed charges	Not less than 1.50x	3.1x
Unsecured coverage ratio	Unsecured EBITDA/unsecured interest	Not less than 1.75x	3.1x
Asset investments	Unimproved land, JVs & mortgages/total assets	Not greater than 35%	9.9	%

Senior Notes
Incurrence of total debt	Total debt/total assets	Not greater than 60%	39.4	%
Incurrence of debt secured by any lien	Secured debt/total assets	Not greater than 40%	0.4	%
Maintenance of total unsecured assets	Unencumbered assets/unsecured debt	Not less than 150%	251.2	%
Debt service coverage	EBITDA/interest expense	Not less than 1.5x	3.1x

Other
Net debt to adjusted EBITDA 2	Net debt (debt less cash)/adjusted EBITDA	Not required	6.6x
Run-rate net debt to adjusted EBITDA 4	Run-rate net debt (debt less cash)/adjusted EBITDA 4	Not required	6.4x
Net debt to enterprise value 3	Net debt/enterprise value	Not required	45.8	%


LIQUIDITY SOURCES

Cash			$137,773
Unsecured credit facility availability			1,250,000
Consolidated unencumbered assets (gross) 5			12,752,707

1Does not include all financial and non-financial covenants and restrictions that are required by the Company's various debt agreements. Financial measures include the Company's proportionate share of unconsolidated joint ventures, as applicable.

2Net debt includes the Company's share of unconsolidated JV net debt. See page 25 for a reconciliation of adjusted EBITDA.

3Based on the closing price of $16.48 on June 28, 2024 and 367,984,916 shares outstanding including outstanding OP units.

4Run-rate net debt to adjusted EBITDA reflects expected proceeds from additional asset sales and JV transactions.

5Annualized second quarter 2024 unencumbered asset NOI was $764.0 million.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 15


JV & Disposition Activity
DOLLARS IN THOUSANDS


JV AND DISPOSITION ACTIVITY
LOCATION	COUNT	TYPE	CLOSING	SQUARE FEET	LEASED %		SALE PRICE		PROCEEDS	% OWNERSHIP RETAINED
Albany, NY	1	MOB	4/1/2024	14,800	—	%	$725		$725	—
San Angelo, TX	1	MOB	4/12/2024	24,580	100	%	5,085		5,085	—
Houston, TX	1	MOB	5/20/2024	37,040	5	%	250		250	—
KKR JV 1	10	MOB	5/23/2024	556,274	99	%	284,348		227,478	20	%
Denver, CO	1	MOB	5/30/2024	37,130	100	%	19,000		19,000	—
KKR JV 1	1	MOB	6/6/2024	129,879	100	%	54,858		43,886	20	%
Minneapolis, MN	1	MOB	6/21/2024	50,291	23	%	1,082		1,082	—
Greensboro/Raleigh, NC 2	9	MOB	6/28/2024	309,424	97	%	99,518		99,518	—
YTD total disposition activity	25			1,159,418	91	%	$464,866		$397,024
Average cap rate 3							6.6	%

1The Company sold the following MOBs into a joint venture, retaining 20% ownership: one in each of Raleigh, NC, New York, NY, Philadelphia, PA, Atlanta, GA and Austin, TX; two MOBs in Los Angeles and four in Seattle, WA.

2The Company sold seven MOBs in Greensboro, NC and two non-clustered single-tenant MOBs in Raleigh, NC to a single buyer in a single transaction.

3Cap rate represents the in-place cash NOI divided by sales price.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 16


Joint Ventures
DOLLARS IN THOUSANDS


PORTFOLIOS
				2Q 2024
JOINT VENTURE	OWNERSHIP INTEREST	# OF PROPERTIES	SQUARE FEET	OCCUPANCY		NOI	NOI AT SHARE	SAME STORE NOI AT SHARE
Nuveen	50%	21	1,053,773	85	%	$5,117	$2,562	$2,562
CBRE	20%	4	283,880	71	%	1,655	331	331
KKR	20%	11	686,153	99	%	2,635	527	—
Other 1	46%	9	611,747	95	%	4,471	2,084	1,960
Total		45	2,635,553	89	%	$13,878	$5,504	$4,853


BALANCE SHEET
JOINT VENTURE	REAL ESTATE INVESTMENT 2	DEBT 2	DEBT AT SHARE	INTEREST RATE
Nuveen	$448,979	$—	$—	—
CBRE	135,346	—	—	—
KKR	314,506	—	—	—
Other 1	244,407	69,100	27,640	5.3	%
Total	$1,143,238	$69,100	$27,640	5.3	%
Net debt at JV share	$20,299

1Includes one consolidated and two unconsolidated joint ventures. Ownership percentages are weighted based on investment.

2Represents 100% of the real estate assets and debt of the joint ventures.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 17


Re/development Activity
DOLLARS IN THOUSANDS


RE/DEVELOPMENT PROJECTS
MARKET	ASSOCIATED HEALTH SYSTEM		SQUARE FEET		CURRENT LEASED %		BUDGET	COST TO COMPLETE	ESTIMATED COMPLETION/INITIAL LEASE COMMENCEMENT
Active development
Raleigh, NC	UNC REX Health		120,694		42	%	$52,600	$11,767	4Q 2024
Phoenix, AZ	HonorHealth		101,000		80	%	58,000	16,525	4Q 2024
Fort Worth, TX 1	Baylor Scott & White		101,000		40	%	9,640	1,649	1Q 2026
Total development			322,694		53	%	$120,240	$29,941
Projected stabilized yield - 6.5%-8.0%
Estimated stabilization period post completion - 12 - 36 months

Active redevelopment
Washington, DC	Inova Health		259,290		85	%	$17,557	$7,082	4Q 2024
Houston, TX	HCA		314,861		62	%	30,000	21,860	4Q 2025
Charlotte, NC	Novant Health		169,135		76	%	18,700	9,869	1Q 2026
Washington, DC	Inova Health		57,323		66	%	10,078	3,864	1Q 2026
Total redevelopment			800,609		73	%	$76,335	$42,675
Occupied %					65	%
Projected stabilized yield - 9.0%-12.0%
Estimated stabilization period post completion - 12 - 36 months

Total active re/development projects		1,123,303	67	%	$196,575		$72,616

1Budget and cost to complete represent the Company's expected share of the development project. The total cost of the development is $48.2 million, of which approximately $38.6 million is expected to be funded by an institutional investor through a joint venture.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 18


Portfolio 1,2
DOLLARS IN THOUSANDS


MARKETS
		COUNT	SQUARE FEET										WHOLLY OWNED

MARKET	MSA RANK		MOB		INPATIENT		OFFICE		WHOLLY OWNED		JOINT VENTURES	TOTAL	% OF NOI		CUMULATIVE % OF NOI
Dallas, TX	4	50	3,230,488		146,519		199,800		3,576,807		226,076	3,802,883	9.4	%	9.4	%
Seattle, WA	15	29	1,402,890						1,402,890		189,611	1,592,501	5.7	%	15.1	%
Houston, TX	5	30	2,314,095		67,500				2,381,595			2,381,595	5.0	%	20.1	%
Charlotte, NC	22	32	1,792,908						1,792,908			1,792,908	4.6	%	24.7	%
Denver, CO	19	34	1,743,689				93,869		1,837,558		116,616	1,954,174	4.1	%	28.8	%
Atlanta, GA	9	27	1,375,178						1,375,178		47,963	1,423,141	3.9	%	32.7	%
Los Angeles, CA	2	30	950,269		63,000				1,013,269		786,520	1,799,789	3.8	%	36.5	%
Boston, MA	11	17	806,410						806,410			806,410	3.5	%	40.0	%
Miami, FL	7	18	1,196,531						1,196,531			1,196,531	3.3	%	43.3	%
Nashville, TN	36	13	1,241,872				108,691		1,350,563			1,350,563	3.1	%	46.4	%
Phoenix, AZ	10	35	1,512,304						1,512,304			1,512,304	3.1	%	49.5	%
Tampa, FL	18	19	971,975						971,975			971,975	2.8	%	52.3	%
Raleigh, NC	42	27	986,403						986,403		75,494	1,061,897	2.7	%	55.0	%
Indianapolis, IN	33	41	1,162,955		61,398				1,224,353		273,479	1,497,832	2.6	%	57.6	%
Memphis, TN	43	11	802,221		54,416				856,637			856,637	2.1	%	59.7	%
Chicago, IL	3	6	607,845						607,845			607,845	2.0	%	61.7	%
New York, NY	1	15	647,004						647,004		57,411	704,415	2.0	%	63.7	%
Austin, TX	29	12	657,575						657,575		129,879	787,454	2.0	%	65.7	%
San Francisco, CA	12	9	452,666						452,666		110,865	563,531	1.9	%	67.6	%
Honolulu, HI	56	6	439,500						439,500			439,500	1.9	%	69.5	%
Other (47 Markets)		212	10,235,057		540,974		1,228,363		12,004,394		621,639	12,626,033	30.5	%	100.0	%
Total		673	34,529,835		933,807		1,630,723		37,094,365		2,635,553	39,729,918	100.0	%
Number of properties			605		15		8		628		45	673
% of square feet			93.1	%	2.5	%	4.4	%	100.0	%
% multi-tenant			86.3	%	—	%	64.3	%	83.2	%
Investment			$11,781,285		$436,145		$470,992		$12,688,422
Quarterly cash NOI 2			$173,492		$8,182		$5,756		$187,430
% of cash NOI			92.6	%	4.4	%	3.0	%	100.0	%


BY OWNERSHIP AND TENANT TYPE
	WHOLLY OWNED				JOINT VENTURES
	MULTI-TENANT		SINGLE-TENANT			MULTI-TENANT		SINGLE-TENANT		TOTAL
Number of properties	511		117			33		12		673
Square feet	30,856,792		6,237,573			2,171,011		464,542		39,729,918
% of square feet	77.6	%	15.7	%		5.5	%	1.2	%	100.0	%
Investment 2	$10,104,760		$2,583,662			$329,843		$94,441		$13,112,706
Quarterly cash NOI 2	$147,528		$39,902			$4,113		$1,390		$192,933
% of cash NOI	76.5	%	20.7	%		2.1	%	0.7	%	100.0	%

1Gross investment and quarterly cash NOI are reflected at the Company's ownership percentage. Lease and building level related metrics such as building square feet and occupancy are reflected at 100% of the buildings.

2Excludes assets held for sale, land held for development, construction in progress and corporate property.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 19


Health Systems 1,2


MOB PORTFOLIO
			BUILDING SQUARE FEET			# OF BLDGS			LEASED BY HEALTH SYSTEM	% OF LEASED SF		# OF LEASES

HEALTH SYSTEM	SYSTEM RANK 3	CREDIT RATING	ON/ADJACENT 4	OFF-CAMPUS AFFILIATED 5	TOTAL		% OF NOI
HCA	1	BBB-/Baa3	2,068,375	779,288	2,847,663	42	9.1	%	813,694	2.7	%	130
CommonSpirit	4	A-/A3	1,801,813	540,834	2,342,647	42	6.5	%	728,994	2.4	%	140
Baylor Scott & White	21	AA-/Aa3	2,364,055	66,376	2,430,431	27	6.3	%	1,064,986	3.5	%	168
Ascension Health	3	AA+/Aa2	2,262,563	97,551	2,360,114	25	6.0	%	970,637	3.2	%	149
Advocate Health	None	AA/Aa3	790,317	496,198	1,286,515	20	4.4	%	1,083,740	3.6	%	101
Wellstar Health System	None	A+/A2	896,773	23,088	919,861	18	2.9	%	586,056	1.9	%	79
AdventHealth	11	AA/Aa2	758,638	118,585	877,223	13	2.7	%	384,529	1.3	%	82
UW Medicine (Seattle)	91	AA+/Aaa	461,363	125,543	586,906	9	2.6	%	282,014	0.9	%	31
Trinity Health	7	AA-/Aa3	830,772	184,318	1,015,090	14	2.5	%	542,027	1.8	%	73
Tenet Healthcare Corporation	6	B+/B1	884,029	238,375	1,122,404	17	2.4	%	300,723	1.0	%	58
Baptist Memorial Health Care	89	A-2/--	544,122	252,414	796,536	10	2.2	%	430,663	1.4	%	53
Community Health Systems	8	CCC+/Caa2	785,169	—	785,169	16	2.1	%	353,558	1.2	%	45
Tufts Medicine	None	BBB-/	252,087	—	252,087	2	1.8	%	252,087	0.8	%	2
University of California Health	None	AA/Aa2	477,272	—	477,272	9	1.6	%	30,080	0.1	%	11
Hawaii Pacific Health	181	--/A1	173,502	124,925	298,427	3	1.6	%	98,398	0.3	%	39
WakeMed	185	--/A2	380,141	101,597	481,738	14	1.5	%	144,265	0.5	%	21
Banner Health	24	AA-/--	749,075	31,039	780,114	24	1.5	%	126,553	0.4	%	33
Providence Health & Services	5	A/A2	277,474	31,601	309,075	7	1.5	%	111,557	0.4	%	24
Bon Secours Health System	22	A+/A2	405,945	—	405,945	6	1.4	%	242,817	0.8	%	50
Sutter Health	12	A+/A1	175,591	76,507	252,098	3	1.3	%	93,229	0.3	%	19
Overlake Health System	291	BBB+/Baa2	230,710	—	230,710	3	1.2	%	61,218	0.2	%	5
Other (69 Credit Rated)			6,129,159	3,661,590	9,790,749	190	27.6	%	4,109,395	13.6	%
Subtotal - credit rated 6			23,698,945	6,949,829	30,648,774	514	90.7	%	12,811,220	42.3	%
Other non-credit rated 7			1,042,749	470,851	1,513,600	34	4.3	%	878,872	2.9	%
Off-campus non-affiliated 8			—	2,367,461	2,367,461	57	5.0	%	—	—	%
Wholly-owned			24,741,694	9,788,141	34,529,835	605	100.0	%	13,690,092	45.2	%
Joint ventures			1,749,093	660,384	2,409,477
Total			26,490,787	10,448,525	36,939,312

2Excludes construction in progress and assets classified as held for sale.

3Ranked by revenue based on Modern Healthcare's Healthcare Systems Financials Database.

4The Company defines an adjacent property as being no more than 0.25 miles from a hospital campus.

5Includes off-campus buildings where health systems lease 20% or more of the property and/or are located within 2 miles from a hospital campus.

6Based on square footage, 82% is associated and 40% is leased by an investment-grade rated healthcare provider.

7Includes 34 properties associated with hospital systems that are not credit rated. Steward Health leases 580,000 square feet and represents 1.6% of total company ABR.

8Includes off-campus buildings that are not 20% or more leased by a health system and are more than two miles from a hospital campus.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 20


MOB Proximity to Hospital 1,2,3


MOB BY LOCATION

	# OF PROPERTIES	SQUARE FEET	TOTAL		% GROUND LEASED
On campus	232	17,984,131	48.7	%	77.6	%
Adjacent to campus 4	179	8,506,656	23.0	%	15.2	%
Total on/adjacent	411	26,490,787	71.7	%	57.6	%
Off campus - affiliated 5	172	7,947,703	21.5	%	17.5	%
Off campus	60	2,500,822	6.8	%	9.4	%
	643	36,939,312	100.0	%	45.7	%
Wholly-owned	605	34,529,835
Joint ventures	38	2,409,477


MOB BY CLUSTER 6

	TOTAL				HOSPITAL CENTRIC 7
	# OF PROPERTIES	SQUARE FEET	% OF MOB SQUARE FEET		# OF PROPERTIES	SQUARE FEET	% OF MOB SQUARE FEET
Clustered	466	25,905,434	70.1	%	383	22,585,090	72.4	%
Non-clustered	177	11,033,878	29.9	%	122	8,606,370	27.6	%
Total	643	36,939,312	100.0	%	505	31,191,460	100.0	%

2Includes joint venture properties and excludes construction in progress and assets classified as held for sale.

3Proximity to hospital campus includes acute care hospitals with inpatient beds. The Company does not consider inpatient rehab hospitals (IRFs), skilled nursing facilities (SNFs) or long-term acute care hospitals (LTACHs) to be hospital campuses for distance calculations.

4The Company defines an adjacent property as being no more than 0.25 miles from a hospital campus.

5Includes off-campus buildings where health systems lease 20% or more of the property and/or are located within 2 miles from a hospital campus.

6A cluster is defined as at least two properties within a geographic radius of two miles. The Company believes clusters provide operational efficiencies and greater local leasing knowledge that accelerate NOI growth.

7Includes buildings that are located within two miles of a hospital campus.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 21


Lease Maturity & Occupancy 1,2


LEASE MATURITY SCHEDULE
		SQUARE FEET												# OF WHOLLY-OWNED LEASES
		WHOLLY-OWNED AND JOINT VENTURE
		MULTI-TENANT 3		SINGLE-TENANT		TOTAL		% OF TOTAL		JOINT VENTURES		WHOLLY-OWNED
Month-to-month		457,605		24,996		482,601		1.4	%	13,136		469,465		181
3Q 2024		1,093,706		380,276		1,473,982		4.2	%	130,683		1,343,299		338
4Q 2024		1,039,667		104,517		1,144,184		3.3	%	41,074		1,103,110		300
2025		4,165,471		950,537		5,116,008		14.7	%	274,188		4,841,820		1,229
2026		3,951,704		304,579		4,256,283		12.2	%	184,641		4,071,642		1,061
2027		3,796,648		1,023,495		4,820,143		13.8	%	257,369		4,562,774		1,022
2028		3,179,896		610,332		3,790,228		10.9	%	161,658		3,628,570		848
2029		2,576,498		846,555		3,423,053		9.8	%	378,111		3,044,942		635
2030		1,884,093		729,095		2,613,188		7.5	%	159,421		2,453,767		364
2031		1,268,246		236,689		1,504,935		4.3	%	101,919		1,403,016		286
2032		1,848,475		368,172		2,216,647		6.4	%	168,109		2,048,538		298
2033		984,154		177,327		1,161,481		3.3	%	128,433		1,033,048		202
Thereafter		2,129,942		732,975		2,862,917		8.1	%	363,840		2,499,077		323
Total occupied		28,376,105		6,489,545		34,865,650		87.8	%	2,362,582		32,503,068		7,087
Total building		33,027,803		6,702,115		39,729,918				2,635,553		37,094,365
Occupancy		85.9	%	96.8	%	87.8	%			89.6	%	87.6	%
Leased %		87.6	%	97.6	%	89.3	%			90.0	%	89.3	%
WALTR (months) 4	49.3	63.9		52.0						50.5
WALT (months) 4	92.8	136.6		100.9						99.7


QUARTERLY LEASING ACTIVITY 5
	MULTI-TENANT		SINGLE-TENANT		TOTAL
	ABSORPTION ACTIVITY	SQUARE FEET	ABSORPTION ACTIVITY	SQUARE FEET	ABSORPTION ACTIVITY	SQUARE FEET
Occupied square feet, beginning of period		28,505,413		6,702,485		35,207,898
Dispositions and assets held for sale		(251,232)		(212,940)		(464,172)
Expirations and early vacates	(1,100,109)		(78,584)		(1,178,693)
Renewals, amendments and extensions	855,246		78,584		933,830
New lease commencements	366,787		—		366,787
Absorption		121,924		—		121,924
Occupied square feet, end of period		28,376,105		6,489,545		34,865,650

2Excludes land held for development, construction in progress, corporate property and assets classified as held for sale, unless noted otherwise.

3The average lease size in the wholly-owned multi-tenant portfolio is 3,895 square feet.

4WALTR = weighted average lease term remaining; WALT = weighted average lease term.

5Excludes month-to-month activity until such time that a term renewal is signed or the tenant vacates.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 22


Leasing Statistics 1,2


SAME STORE RENEWALS 2
	2Q 2024		YTD

MOB cash leasing spreads 3	2.9	%	3.4	%

MOB cash leasing spreads distribution
< 0% spread	9.7	%	6.2	%
0-3% spread	5.4	%	8.7	%
3-4% spread	60.5	%	56.3	%
> 4% spread	24.4	%	28.8	%
Total	100.0	%	100.0	%

MOB tenant retention rate	85.5	%	85.1	%


AVERAGE IN-PLACE CONTRACTUAL INCREASES 4
	MULTI-TENANT				SINGLE-TENANT				TOTAL
	% INCREASE		% OF BASE RENT		% INCREASE		% OF BASE RENT		% INCREASE		% OF BASE RENT
Same store 2	2.87	%	75.2	%	2.50	%	18.9	%	2.79	%	94.1	%
Acquisitions	2.91	%	2.1	%	2.38	%	0.6	%	2.79	%	2.8	%
Other 5	2.80	%	3.1	%	2.00	%	0.1	%	2.78	%	3.2	%
Total	2.87	%	80.4	%	2.50	%	19.6	%	2.79	%	100.1	%
Escalator type
Fixed	2.84	%	96.9	%	2.54	%	88.5	%	2.78	%	95.3	%
CPI	3.80	%	3.1	%	2.21	%	11.5	%	3.04	%	4.7	%


SAME STORE TYPE AND OWNERSHIP STRUCTURE 2
	MULTI-TENANT		SINGLE-TENANT		TOTAL
Tenant type
Hospital	46.3	%	68.5	%	50.5	%
Physician and other	53.7	%	31.5	%	49.5	%

Lease structure
Gross	9.0	%	1.3	%	7.6	%
Modified gross	30.9	%	10.5	%	27.1	%
Net	60.1	%	65.4	%	61.1	%
Absolute net 6	—	%	22.8	%	4.3	%

Ownership type
Ground lease	44.6	%	38.6	%	43.6	%
Fee simple	55.4	%	61.4	%	56.4	%


# OF LEASES BY SIZE 7
LEASED SQUARE FEET	# OF LEASES	WALT	WALTR
0 - 2,500	3,649	70.9	37.1
2,501 - 5,000	1,795	81.4	41.5
5,001 - 7,500	621	91.5	45.8
7,501 - 10,000	351	98.1	53.6
10,001 +	671	118.5	58.8
Total Leases	7,087	99.7	50.5

2Same store properties are properties that have been included in operations for the duration of the year-over-year comparison period presented. Accordingly, same store properties exclude properties that were recently acquired or disposed of, properties classified as held for sale or intended for sale, properties undergoing redevelopment, and newly redeveloped or developed properties.

3Year-to-date excludes non-MOB renewals of 67,500 square feet.

4Excludes leases with lease terms of one year or less.

5Includes redevelopment properties, development completion, and joint ventures.

6Tenant is typically responsible for operating expenses and capital obligations.

7Excludes joint ventures, land held for development, construction in progress, corporate property and assets classified as held for sale.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 23


Same Store 1,2
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA


TOTAL CASH NOI
	% of Total NOI		2Q 2024		1Q 2024		2Q 2023		Y-o-Y% CHANGE		YTD 2024		YTD 2023		% CHANGE
Multi-tenant	72	%	$	142,762	$	140,644	$	138,839	2.8	%	$	283,406	$	276,565	2.5	%
Single-tenant	20	%	39,990		42,173		39,863		0.3	%	82,163		79,924		2.8	%
Joint venture	2	%	4,853		4,833		4,714		2.9	%	9,686		9,277		4.4	%
Same store	94	%	$	187,605	$	187,650	$	183,416	2.3	%	$	375,255	$	365,766	2.6	%
Planned dispositions	—	%	90		92		(88)		(202.3	%)	182		502		(63.7	%)
Re/development	2	%	3,099		2,814		3,276		(5.4	%)	5,913		6,886		(14.1	%)
Wholly owned and joint venture acquisitions	1	%	1,368		835		651		110.1	%	2,203		799		175.7	%
Development completions	—	%	771		731		426		81.0	%	1,502		869		72.8	%
Completed dispositions & assets held for sale	3	%	5,969		8,256		20,059		(70.2	%)	14,225		42,392		(66.4	%)
Total cash NOI	100	%	$198,902		$200,378		$207,740		(4.3	%)	$399,280		$417,214		(4.3	%)

Same store cash NOI without Steward reserve			$189,756		$187,650		$183,416		3.5	%	$377,406		$365,766		3.2	%


PORTFOLIO OCCUPANCY AND ABSORPTION
			OCCUPANCY %						ABSORPTION (square feet in thousands)
	COUNT	SQUARE FEET	2Q 2024		1Q 2024		2Q 2023		SEQUENTIAL	Y-O-Y
Multi-tenant	486	28,878,272	87.5	%	87.2	%	86.8	%	89	183
Single-tenant	114	6,028,418	99.6	%	99.6	%	99.6	%	—	3
Joint venture	33	1,912,709	86.0	%	86.2	%	86.8	%	(3)	(15)
Same store	633	36,819,399	89.4	%	89.1	%	88.9	%	86	171
Planned dispositions	4	190,646	29.9	%	29.9	%	32.4	%	—	(5)
Re/development	18	1,502,989	53.5	%	51.7	%	55.7	%	27	(33)
Wholly owned and joint venture acquisitions	14	881,481	98.9	%	98.7	%	97.4	%	1	17
Development completions	4	335,403	66.7	%	64.5	%	60.2	%	8	86
Total portfolio	673	39,729,918	87.8	%	87.4	%	87.4	%	122	226
Joint ventures	45	2,635,553	89.6	%	89.7	%	89.8	%	(2)	(4)
Total wholly-owned	628	37,094,365	87.8	%	87.3	%	87.2	%	124	240

Multi-tenant	544	33,027,803	85.9	%	85.5	%	85.2	%	122	365



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 24


Same Store 1,2,3
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA


SAME STORE CASH NOI
	TOTAL
	2Q 2024		1Q 2024		2Q 2023		YTD 2024		YTD 2023
Base revenue	$224,157		$224,929		$221,006		$449,086		$440,326
Op. exp. recoveries	68,519		70,121		68,467		138,640		137,163
Revenues	$292,676		$295,050		$289,473		$587,726		$577,489
Expenses	105,071		107,400		106,057		212,471		211,723
Cash NOI	$187,605		$187,650		$183,416		$375,255		$365,766
Revenue per occ SF 4	$35.62		$35.98		$35.38		$35.80		$35.31
Margin	64.1	%	63.6	%	63.4	%	63.8	%	63.3	%
Average occupancy	89.3	%	89.1	%	88.9	%	89.2	%	88.8	%
Period end occupancy	89.4	%	89.1	%	88.9	%	89.2	%	88.9	%
Number of properties	633		633		633		633		633

Year-Over-Year Change
Revenue per occ SF 4	0.7	%					1.4	%
Avg occupancy (bps)	+40						+40
Revenues	1.1	%					1.8	%
Base revenue	1.4	%					2.0	%
Exp recoveries	0.1	%					1.1	%
Expenses	(0.9	%)					0.4	%
Cash NOI	2.3	%					2.6	%

Cash NOI without Steward reserve	3.5	%					3.2	%

3Excludes recently acquired or disposed properties, development completions, construction in progress, land held for development, corporate property, redevelopment properties, planned dispositions and assets classified as held for sale.

4Revenue per occ SF is calculated by dividing revenue by the average of the occupied SF for the period provided. Quarterly revenue per occ SF is annualized.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 25


NOI Reconciliations 1
DOLLARS IN THOUSANDS


BOTTOM UP RECONCILIATION
	2Q 2024	1Q 2024	2Q 2023	1Q 2023
Net loss	($145,938)	($315,220)	($83,726)	($88,078)
Other income (expense)	156,631	327,646	112,818	94,407
General and administrative expense	14,002	14,787	15,464	14,935
Depreciation and amortization expense	173,477	178,119	183,193	184,479
Other expenses 2	5,226	4,727	(11,969)	7,940
Straight-line rent expense	1,063	935	1,525	1,537
Straight-line rent revenue	(5,630)	(8,568)	(9,530)	(9,782)
Other revenue 3	(5,433)	(7,006)	(4,992)	(733)
Joint venture property cash NOI	5,504	4,958	4,957	4,769
Cash NOI	$198,902	$200,378	$207,740	$209,474
Planned dispositions	(90)	(92)	88	(590)
Redevelopment	(3,099)	(2,814)	(3,276)	(3,610)
Wholly owned and joint venture acquisitions	(1,368)	(835)	(651)	(148)
Development completions	(771)	(731)	(426)	(443)
Completed dispositions & assets held for sale	(5,969)	(8,256)	(20,059)	(22,333)
Same store cash NOI	$187,605	$187,650	$183,416	$182,350
Same store joint venture properties	(4,853)	(4,833)	(4,714)	(4,563)
Same store excluding JVs	$182,752	$182,817	$178,702	$177,787

TOP DOWN RECONCILIATION
	2Q 2024	1Q 2024	2Q 2023	1Q 2023
Rental income before rent concessions	$311,592	$321,833	$332,992	$328,115
Rent concessions	(3,457)	(3,757)	(3,312)	(4,022)
Rental income	308,135	318,076	329,680	324,093
Parking income	2,463	2,545	2,370	2,391
Interest from financing receivable, net	2,094	2,117	2,180	2,227
Exclude straight-line rent revenue	(5,630)	(8,568)	(9,530)	(9,782)
Exclude other non-cash revenue 4	(2,018)	(3,163)	(1,018)	3,594
Cash revenue	305,044	311,007	323,682	322,523
Property operating expense	(117,719)	(121,078)	(125,395)	(122,040)
Exclude non-cash expenses 5	6,073	5,491	4,496	4,222
Joint venture property cash NOI	5,504	4,958	4,957	4,769
Cash NOI	$198,902	$200,378	$207,740	$209,474
Planned dispositions	(90)	(92)	88	(590)
Redevelopment	(3,099)	(2,814)	(3,276)	(3,610)
Wholly owned and joint venture acquisitions	(1,368)	(835)	(651)	(148)
Development completions	(771)	(731)	(426)	(443)
Completed dispositions & assets held for sale	(5,969)	(8,256)	(20,059)	(22,333)
Same store cash NOI	$187,605	$187,650	$183,416	$182,350
Same store joint venture properties	(4,853)	(4,833)	(4,714)	(4,563)
Same store excluding JVs	$182,752	$182,817	$178,702	$177,787

2Includes transaction costs, merger-related costs, rent reserves, above and below market ground lease intangible amortization, leasing commission amortization, non-cash adjustments for financing receivables, and ground lease straight-line rent.

3Includes management fee income, interest, above and below market lease intangible amortization, lease inducement amortization, lease termination fees, deferred financing cost amortization and principal related to investment in financing receivable, and tenant improvement overage amortization.

4Includes above and below market intangibles, lease inducements, lease termination fees, deferred financing cost amortization, financing receivable, and TI amortization.

5Includes above and below market ground lease intangible amortization, leasing commission amortization, and ground lease straight-line rent.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 26


NOI Reconciliations 1
DOLLARS IN THOUSANDS


RECONCILIATION OF NOI TO FFO AND NORMALIZED FFO
	2Q 2024	1Q 2024
Cash NOI	$198,902	$200,378
General and administrative expense	(14,002)	(14,787)
Straight-line rent	5,630	8,568
Interest and other income (expense), net	(248)	275
Management fees and other income	1,858	1,646
Note receivable interest income	1,771	2,421
Other non-cash revenue 2	1,804	2,939
Other non-cash expenses 3	(5,858)	(5,268)
Non-real estate impairment	(11,201)	—
Income taxes	454	336
Unconsolidated JV adjustments	(443)	(427)
Debt Covenant EBITDA	$178,667	$196,081
Interest expense	(62,457)	(61,054)
Transaction costs	(431)	(395)

Leasing commission amortization 4	5,151	4,467
Non-real estate depreciation and amortization	(1,278)	(1,424)
Gain on non-real estate assets	4,907	—
Non controlling interest	81	106
Goodwill impairment	—	(250,530)
Income taxes	(454)	(336)
Unconsolidated JV adjustments	(389)	(385)
FFO	$123,797	($113,470)
Transaction costs	431	395

Lease intangible amortization	129	175
Significant non-recurring legal fees/forfeited earnest money received	465	—


Merger-related fair value adjustment	10,064	10,105

Credit losses and gains on other assets, net	8,525	—
Goodwill impairment	—	250,530
Unconsolidated JV normalizing items	89	87
Normalized FFO	$143,500	$147,822

2Includes above and below market lease intangibles, interest income related to sales-type leases, lease inducements, lease termination fees, deferred financing cost amortization, and principle related to investment in financing receivable and TI amortization.

3Includes above and below market ground lease intangible amortization, leasing commission amortization, and ground lease straight-line rent.

4Leasing commission amortization is included in the real estate depreciation and amortization add-back for FFO.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 27


EBITDA Reconciliations 1
DOLLARS IN THOUSANDS


RECONCILIATION OF EBITDA

	2Q 2024	1Q 2024
Net loss	($145,938)	($315,220)
Interest expense	62,457	61,054
Income taxes	454	336
Depreciation and amortization	173,477	178,119
Unconsolidated JV depreciation, amortization, and interest	5,207	4,952
EBITDA	$95,657	$(70,759)





Transaction costs	431	395

Gain on sales of assets	(38,338)	(22)
Impairments on real estate assets	120,917	15,937
Goodwill Impairment	—	250,530


Debt Covenant EBITDA	$178,667	$196,081
Leasing commission amortization 2	5,151	4,467
Lease intangibles, franchise taxes and prepaid ground amortization	980	975
Timing impact 3	(1,438)	—
Stock based compensation	3,383	3,562
Allowance for credit losses	11,201	—
Rent reserves, net	1,261	(151)
Unconsolidated JV adjustments	89	87
Adjusted EBITDA	$199,294	$205,021
Annualized Adjusted EBITDA	$797,176	$820,084

RECONCILIATION OF NET DEBT
Debt (principal balance)	$5,402,290	$5,372,710
Share of unconsolidated net debt	20,299	23,276
Cash 4	(137,773)	(26,172)
Net debt	$5,284,816	$5,369,814

Net debt to adjusted EBITDA	6.6x	6.5x



Run-rate adjusted EBITDA	6.4x

2Leasing commission amortization is included in the real estate depreciation and amortization add-back for FFO.

3Timing adjustments to represent a full quarter impact of acquisitions and dispositions. Properties contributed into a joint venture are adjusted at the Company's share. Timing adjustments also include non-recurring impacts due to one-time items recognized in the quarter.

42Q 2024 cash includes $96.0 million of proceeds from a portfolio disposition held in a cash escrow account as of June 30, 2024.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 28


Components of Net Asset Value 1
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


CASH NOI BY PROPERTY TYPE
	2Q 2024
ASSET TYPE	SAME STORE 2	ACQ./DEV. COMPLETIONS 3	REDEVELOPMENT	TIMING/OTHER ADJUSTMENTS 4	ADJUSTED CASH NOI	ANNUALIZED ADJUSTED NOI
MOB/Outpatient	$172,555	$1,441	$2,822	$3,554	$180,372	$721,488
Inpatient/Surgical	8,860	125	—	—	8,985	35,940
Office	6,235	—	(8)	—	6,227	24,908
Total Cash NOI	$187,650	$1,566	$2,814	$3,554	$195,584	$782,336


DEVELOPMENT PROPERTIES		TOTAL SHARES OUTSTANDING
Land held for development	$59,871	As of July 26, 2024 9		366,687,931
Re/development budget	196,575
	$256,446	IMPLIED CAP RATE
			STOCK PRICE	IMPLIED CAP RATE
		As of July 26, 2024	$17.96	7.0	%
OTHER ASSETS
Disposition pipeline 5	$106,764	2Q 2024 High	$16.63	7.3	%
Unstabilized properties 6	276,498	2Q 2024 Low	$13.70	8.1	%
Cash and other assets 7	533,908
	$917,170

DEBT
Unsecured credit facility	$250,000

Unsecured term loans	1,400,000
Senior notes	3,699,285
Mortgage notes payable	53,005
Company share of joint venture net debt	20,299
Remaining re/development funding	72,616
Other liabilities 8	310,852
	$5,806,057

2See Same Store schedule on pages 24 - 24 for details on Same Store NOI.

3Adjusted to reflect quarterly NOI from properties acquired or stabilized re/developments completed during the full five quarter period that are not included in same store NOI.

4Timing adjustments include adjustments to reflect full quarterly stabilized NOI of a recently completed development of $0.7 million, full quarter NOI for JV contributed assets of $0.7 million, Steward Health revenue reserve adjustment of $2.2 million, and management fee income of $1.7 million, offset by $1.8 million of positive NOI for unstabilized properties, which are shown in other assets.

5Includes assets held for sale and planned dispositions.

6Includes 33 properties at their gross book value. These properties were comprised of 1.2 million square feet that generated positive NOI of $1.8 million.

7Includes cash of $137.8 million, notes receivable of $166.0 million, prepaid assets of $134.3 million, accounts receivable of $52.2 million, prepaid ground leases of $19.7 million, and other investments of $6.0 million. In addition, includes the Company's occupied portion of its corporate headquarters in Nashville of $17.9 million.

8Includes only liabilities that are expected to reduce future cash or NOI and that are currently producing non-cash benefits to NOI. Included are accounts payable and accrued liabilities of $196.4 million, security deposits of $32.6 million, financing right of use liabilities of $75.2 million, and deferred operating expense reimbursements of $6.7 million.

9Total shares outstanding includes OP units.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 29


Components of Expected FFO
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA



	EXPECTED 2024				ACTUAL		ACTUAL
	LOW		HIGH		YTD 2024		2Q 2024







OPERATING METRICS
Multi-tenant absorption (bps)	100		150		55		37
Multi-tenant portfolio cash NOI growth 1	3.50	%	4.75	%	3.3	%	3.9	%
Single-tenant portfolio cash NOI growth 1	0.50	%	1.50	%	2.2	%	2.6	%

Same store cash NOI growth, including Company's share of JVs 1	2.50	%	3.50	%	3.2	%	3.5	%

Same store lease retention rate	75.0	%	85.0	%	85.1	%	85.5	%


Normalized G&A	$60,000		$62,000		$28,788		$14,002
Straight-line rent, net	26,000		30,000		14,432		6,799

CAPITAL FUNDING
Acquisitions	$—		$—		$—
JV and disposition proceeds	900,000		1,100,000		397,024
Re/development	100,000		130,000		66,376
1st generation TI and acq. capex	30,000		40,000		25,431
Maintenance capex
2nd generation TI	60,000		70,000		32,491
Leasing commissions paid	40,000		45,000		25,227
Building capital	40,000		45,000		18,198
Total maintenance capex	140,000		160,000		75,916

CASH YIELD
Acquisitions	—	%	—	%	—	%
Dispositions	6.0	%	7.0	%	6.6	%
Development (stabilized)	6.5	%	8.0	%
Redevelopment (stabilized)	9.0	%	12.0	%


EARNINGS AND LEVERAGE
Earnings per share	$(1.50)		$(1.40)		$(1.22)
Normalized FFO per share	$1.53		$1.58		$0.77
Run-rate net debt to adjusted EBITDA 2	6.0x		6.5x		6.4x

1Adjusted to exclude the impact of the Steward revenue reserves.

2Run-rate net debt to adjusted EBITDA reflects expected proceeds from additional asset sales and JV transactions. Net debt to adjusted EBITDA was 6.6x at June 30, 2024.



HEALTHCARE REALTY			2Q 2024 SUPPLEMENTAL INFORMATION 30