Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Investor Presentation (July 2025)
30 slides from Healthcare Realty Trust's investor presentation, Jul 31, 2025
Slide 1: Committed to Maximizing Value for All Shareholders
JULY 2025 Committed to Maximizing Value for All Shareholders
Slide 2: Premier Outpatient Medical Portfolio
Premier Outpatient Medical Portfolio Overlake Medical Pavilion 2100 Church Street East Pavilion Seattle, WA Nashville, TN Seattle, WA St Anthony’s Plaza III Baylor All Saints I Morehead Medical Pavilion Denver, CO Fort Worth, TX Charlotte, NC McAuley Medical Center North Cypress I WakeMed Medical Pa
Slide 3: Strong 2Q Performance & Increased 2025 Guidance
Strong 2Q Performance & Increased 2025 Guidance Collaborative Team Focus Driving Operational and Earnings Improvements Quarterly Highlights Key Operating and Financial Metrics Sequential Improvement Across All Key Metrics ✓ NFFO and FAD per share sequentially improved by $0.02 and $0.04, respectivel
Slide 4: Assessment of Situation
Assessment of Situation
Slide 5: Overall Assessment
Overall Assessment Consistent underperformance has eroded trust and credibility in Healthcare Realty 1.0. We are implementing a complete overhaul of all facets of the organization Healthcare Realty 1.0 | Transaction Oriented Healthcare Realty 2.0 | Operations Oriented Lack of executive stewardship
Slide 6: The Strategic Plan
The Strategic Plan
Slide 7: Strategic Plan to Deliver Superior Returns
Strategic Plan to Deliver Superior Returns Decisive Actions Taken By New Leadership to Maximize Value for Shareholders 1 ▪ New CEO and revamped Board of 7 highly qualified individuals with fresh perspectives and critical Corporate Governance experience to support HR’s initiatives and focus on shareh
Slide 8: Corporate Governance | New, Reconstituted Board of Directors
1. Corporate Governance | New, Reconstituted Board of Directors The Board is Committed to Further Enhance Shareholder Value Thoughtful Construction of New Board Our Directors Possess the Key Skills to Drive Value The go-forward Board will bring fresh perspectives ’25 ’24 ’24 while leveraging decades
Slide 9: Platform Restructuring | Creation of Asset Management Platform
2. Platform Restructuring | Creation of Asset Management Platform On-the-Ground and Accountable Asset Management Platform Empowered to Drive ROI Across the Portfolio Healthcare Realty 1.0 | National Healthcare Realty 2.0 | Localized Total Platform: 410 | Leadership: 27 Employees Total Platform: ~350
Slide 10: Platform Restructuring | Enhancing Health System Relationships
2. Platform Restructuring | Enhancing Health System Relationships More Direct Engagement With Hospital CEOs and Local Real Estate Teams Healthcare Realty 1.0 Select Top Investment Grade Health System Relationships % Directly Leased Indirect, uncoordinated focus has led Total SF (1) to mixed qualit
Slide 11: Platform Restructuring | G&A Efficiencies
2. Platform Restructuring | G&A Efficiencies Rapid Enhancements to Streamline Corporate Overhead Healthcare Realty 2.0 G&A Savings • $10M of target G&A reduction with 100% already identified – including headcount savings, Board reduction, office expense savings, etc. • ~$5M expected reduction in 202
Slide 12: Portfolio Optimization | Assessment of Existing Assets
3. Portfolio Optimization | Assessment of Existing Assets Segmented all ~650 Assets into Three Distinct Buckets Following Thorough Assessment of Portfolio Stabilized Portfolio (1) Lease-Up Portfolio (1) Disposition Portfolio (1) Portfolio Breakdown ~75% of total portfolio (2) ~13% of total portfolio
Slide 13: Portfolio Optimization | Stabilized Portfolio
3. Portfolio Optimization | Stabilized Portfolio Favorable Demographics Coupled with Strong Health System Relationships Driving Robust Operating Performance Stabilized Portfolio Key Statistics One Scottsdale ~95% $22 Phoenix, AZ Occupancy Net Rent PSF (1)(2) 8 65% WALT (2) NOI Margin Kennestone Phys
Slide 14: Portfolio Optimization | Lease-Up Portfolio
3. Portfolio Optimization | Lease-Up Portfolio Lease-Up Portfolio is Concentrated in Priority Markets With Significant Occupancy Upside Through ROI-Focused Investments Lease-Up Overview (1) Portfolio Geographic Comparison ~95 ~$90M Assets NOI ~15% Existing Redevelopment v ~10% Future Redevelopment P
Slide 15: Portfolio Optimization | Lease-Up Portfolio Upside
3. Portfolio Optimization | Lease-Up Portfolio Strategic Investment in Lease-Up Portfolio Unlocks Up to $50M of NOI Upside Over Time Occupancy Net Rent PSF(2) • Meaningful opportunity to ~90% $22 generate upside in $18 ~70% under-managed assets in the Lease- Up portfolio by increasing occupancy and
Slide 16: Portfolio Optimization | Disposition Portfolio
3. Portfolio Optimization | Disposition Portfolio Significant Progress on $1.2B of Dispositions Has Already Been Achieved Disposition Overview Portfolio Geographic Comparison ~85 ~$1.2B ~7% Assets Dispositions Cap Rate (1) ~$200M Closed ~$700M Under Contract or LOI Priority Markets Disposition Prope
Slide 17: Stabilized Portfolio vs. Disposition Portfolio
3. Portfolio Optimization | Stabilized Portfolio vs. Disposition Portfolio Strategic Dispositions Significantly Improve Portfolio Quality Across All Key Metrics Occupancy NOI Margin NOI Growth (1) Improved Portfolio Quality Disposition portfolio 65% 5% ~95% operating performance lags Stabilized port
Slide 18: Portfolio Optimization | The End Result
3. Portfolio Optimization | The End Result Clear Value Creation Through Strategic Lease-Up and Dispositions Opportunity Portfolio Statistics Occupancy NOI Margin Portfolio optimization is expected to drive around 400- Portfolio optimization is expected to drive around 200- 500 bps of occupancy gain
Slide 19: Reprioritized Capital Allocation | Targeting High ROI Opportunities
4. Reprioritized Capital Allocation | Targeting High ROI Opportunities Prudent Allocation of Capital Towards Highest and Best Return Opportunities Category Opportunities Yield Description Near Term Ready to Occupy ~15% ▪ Strategic investment of TIs in vacant suites to Priority “Spec” Suites IRR driv
Slide 20: Reprioritized Capital Allocation | Ready-to-Occupy Program
4. Reprioritized Capital Allocation | Ready-to-Occupy Program Embedded Growth Opportunities Through Focused Capital Investment into Underutilized Spaces Expected Spend and Ready-to-Occupy (RTO) Examples Returns Spaces were previously unoccupied and unleasable in their prior condition. The RTO Progra
Slide 21: Reprioritized Capital Allocation | Redevelopment Program
4. Reprioritized Capital Allocation | Redevelopment Program Re-Investment of Capital into Lease-Up Assets that Have Strong Repositioning Potential Given Underlying Demand Drivers Expected Spend and Redevelopment Examples Returns Reinvesting capital into the existing portfolio to unlock leasing and o
Slide 22: Reprioritized Capital Allocation | Redevelopment Deep Dive
4. Reprioritized Capital Allocation | Redevelopment Deep Dive Example of Successful Redevelopment with 222 Westchester Ave: $20M Investment with 10% Incremental Yield on Cost Before After Impact Before Occupancy 58% 100% +42% Anchor Tenant 12K SF 37K SF +25K Montefiore / White Plains Hospital 19% To
Slide 23: Balance Sheet Management | Extend Maturities and Reduce Leverage
5. Balance Sheet Management | Extend Maturities and Reduce Leverage Creating Financial Flexibility Through De-Levering and Maturity Extensions Balance Sheet Management Results from Active Balance Sheet Management Key Priorities 6/30/25 PF Phase 1 PF Phase 2 Phase 1: Extend Maturities Already Complet
Slide 24: Dividend Assessment
Dividend Assessment
Slide 25: Dividend Assessment | Decision an Output Not an Input
Dividend Assessment | Decision an Output Not an Input Right-Sizing the Dividend to $0.24 per Share on a Quarterly Basis As a final part of the Strategic Plan formulation, the Board of Healthcare Realty completed a thorough and careful evaluation of the dividend given the elevated payout ratio. The e
Slide 26: Dividend Assessment | Financial Impact
Dividend Assessment | Financial Impact Right-Sizing the Dividend Creates the Ability to Recycle Cash Flow Accretively Three-Year Sources & Uses Dividend Yield Reduction in Dividend to Fund Accretive Uses of Capital ~8% Per Share Annual Dividend Adjustment $0.28 ~6% 5% (x) Share Count (M) ~355 Annual
Slide 27: Value Creation Opportunity
Value Creation Opportunity
Slide 28: Value Creation Opportunity | 3-Year Growth Framework
Value Creation Opportunity | 3-Year Growth Framework Clear Path to Create NFFO per Share Growth Over Time We have formulated a high-level framework for potential earnings in 3 years as a result of the Strategic Plan. The analysis focuses on the key earnings drivers and is not intended to represent e
Slide 29: Value Creation Opportunity | The End Result
Value Creation Opportunity | The End Result Significant Total Return Potential From Execution of Strategic Plan and Recovery From Depressed Multiple While HR Trades Well Below Peers and Its Long- …There are Many Reasons to See a Positive Go-Forward Opportunity Term Average Today… with HR 2.0 NTM NFF
Slide 30: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer This presentation contains disclosures that are “forward-looking statements” relating to Healthcare Realty Trust Incorporated (the “Company”). Forward-looking statements include all statements that do not relate solely to historical or current facts and can be id
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