8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8‑K

CURRENT REPORT

Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 2, 2016 (November 2, 2016)

HEALTHCARE REALTY TRUST INCORPORATED

(Exact Name of Registrant as Specified in Charter)

MARYLAND	001-11852	62-1507028
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

3310 West End Avenue, Suite 700, Nashville, Tennessee 37203

(Address of principal executive offices) (Zip Code)

(615) 269-8175

(Registrant's telephone number, including area code)

Not Applicable

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

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 (see General Instruction A.2. below):

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

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

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

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

Item 2.02Results of Operations and Financial Condition

On November 2, 2016, Healthcare Realty Trust Incorporated (the “Company”) issued a press release announcing its earnings for the third quarter ended September 30, 2016. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.

Item 7.01        Regulation FD Disclosure

The Company is furnishing its Supplemental Information for the three months ended September 30, 2016, which is also contained on its website (www.healthcarerealty.com). See Exhibit 99.2 to this Current Report on Form 8-K.

Item 9.01        Financial Statements and Exhibits

99.1    Third quarter earnings press release, dated November 2, 2016.

99.2    Supplemental Information for the three months ended September 30, 2016.

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
	By:	/s/ B. Douglas Whitman, II
		B. Douglas Whitman, II
		Executive Vice President - Corporate Finance
November 2, 2016

EX-99.1

Carla Baca

Director of Corporate Communications

P: 615.269.8175

News Release

HEALTHCARE REALTY TRUST REPORTS RESULTS FOR THE THIRD QUARTER

NASHVILLE, Tennessee, November 2, 2016-Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the third quarter ended September 30, 2016. The Company reported net income of $11.8 million or $0.10 per diluted common share for the quarter. Normalized FFO for the three months ended September 30, 2016 totaled $0.39 per diluted common share.

Salient highlights include:

• Normalized FFO for the third quarter grew 10.7% year-over-year to $45.1 million.

• For the trailing twelve months ended September 30, 2016, same store revenue grew 4.1%, operating expenses increased 3.8%, and same store NOI grew 4.3%:

◦ Same store revenue per average occupied square foot increased 3.6%.

◦ Average same store occupancy increased to 89.9% from 89.4%.

• Leasing activity totaled 561,000 square feet related to 173 leases:

◦ 399,000 square feet of renewals

◦ 162,000 square feet of new and expansion leases

◦ 52,000 square feet of net absorption

• Tenant improvement commitments for leases in second generation space at the multi-tenant properties were:

◦ $1.04 per square foot per lease-year for renewal leases in the third quarter, and $1.45 for the trailing twelve months

◦ $5.54 per square foot per lease-year for new tenant leases in the third quarter, and $4.16 for the trailing twelve months

• Four predictive growth measures in the same store multi-tenant portfolio:

◦ Contractual rent increases occurring in the quarter averaged 2.8%, and contractual rent increases for leases commencing in the quarter will average 3.2%.

◦ Cash leasing spreads were 4.3% on 314,000 square feet renewed: 1% of square feet (<0% spread), 15% (0-3%), 57% (3-4%) and 27% (>4%).

◦ Tenant retention was 90.1%.

◦ The average yield on renewed leases increased 60 basis points.

• In September 2016, the Company acquired a 100% leased, 87,000 square foot medical office building in Seattle, Washington for a purchase price of $53.1 million. The property is located on UW Medicine's Valley Medical Center campus and is adjacent to a 47,000 square foot medical office building the Company purchased in April.

	HEALTHCAREREALTY.COM | PAGE 1 OF 5

• Also in September 2016, the Company acquired a 100% leased, 104,000 square foot medical office building in suburban Washington, D.C. for a purchase price of $45.2 million. The property is located on Inova Health System's Loudoun campus.

• In October 2016, the Company purchased three on-campus medical office buildings totaling 143,000 square feet for a total purchase price of $46.0 million. Two properties on the University of Maryland Medical System's Upper Chesapeake Health Medical Center campus in Baltimore, Maryland are 92% leased, and the third, on Providence Health's Swedish Edmonds campus in Seattle, Washington, is 96% leased.

• In October 2016, the Company sold two medical office buildings totaling 116,000 square feet for $23.9 million.

• On July 5, 2016, the Company completed the sale of 9.2 million shares of common stock for net proceeds of approximately $304.6 million to fund investment activity and repay indebtedness.

• In July 2016, the Company renewed its $700 million unsecured credit facility. The new credit facility includes 14 banks and matures in July 2020 with options to extend the facility for an additional year.

• In July 2016, S&P Global Ratings upgraded the Company's senior unsecured debt rating to BBB.

• A dividend of $0.30 per common share was declared, which is equal to 76.9% of normalized FFO per share.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2016, the Company had investments of approximately $3.5 billion in 202 real estate properties in 29 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.1 million square feet nationwide.

__________________________________________________________________________________________________________

Additional information regarding the Company, including this quarter's operations, can be found at www.healthcarerealty.com. Please contact the Company at 615.269.8175 to request a printed copy of this information.

In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2015 under the heading "Risk Factors," and as updated in its Quarterly Reports on Form 10-Q filed thereafter. Forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims any obligation to update forward-looking statements.

HEALTHCAREREALTY.COM | PAGE 2 OF 5

HEALTHCARE REALTY TRUST INCORPORATED

Condensed Consolidated Balance Sheets ⁽¹⁾ 

(amounts in thousands, except per share data)

ASSETS
Real estate properties:	9/30/2016			12/31/2015
Land		$206,647			$198,585
Buildings, improvements and lease intangibles	3,322,293			3,135,893
Personal property	10,124			9,954
Construction in progress	45,734			19,024
Land held for development	17,438			17,452
Total real estate properties	3,602,236			3,380,908
Less accumulated depreciation and amortization	(835,276		)	(761,926		)
Total real estate properties, net	2,766,960			2,618,982
Cash and cash equivalents	12,649			4,102
Assets held for sale and discontinued operations, net	14,732			724
Other assets, net	197,380			186,416
Total assets		$2,991,721			$2,810,224
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Notes and bonds payable		$1,239,062			$1,424,992
Accounts payable and accrued liabilities	71,052			75,489
Liabilities of properties held for sale and discontinued operations	572			33
Other liabilities	46,441			66,963
Total liabilities	1,357,127			1,567,477
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 50,000 shares authorized; none issued and outstanding	—			—
Common stock, $.01 par value; 150,000 shares authorized; 115,878 and 101,517 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	1,160			1,015
Additional paid-in capital	2,916,816			2,461,376
Accumulated other comprehensive income	(1,443		)	(1,569		)
Cumulative net income attributable to common stockholders	942,819			909,685
Cumulative dividends	(2,224,758		)	(2,127,760		)
Total stockholders' equity	1,634,594			1,242,747
Total liabilities and stockholders' equity		$2,991,721			$2,810,224

(1) The Condensed Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

HEALTHCAREREALTY.COM | PAGE 3 OF 5

HEALTHCARE REALTY TRUST INCORPORATED

Condensed Consolidated Statements of Income ⁽¹⁾ 

(amounts in thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenues
Rental income		$102,534			$95,383			$302,746			$285,867
Mortgage interest	—			29			—			91
Other operating	1,125			1,313			3,576			3,931
	103,659			96,725			306,322			289,889
Expenses
Property operating	37,504			35,247			109,173			103,437
General and administrative	8,724			6,258			27,098			19,709
Depreciation	29,273			26,571			85,494			79,511
Amortization	2,712			2,386			8,174			7,528
Bad debts, net of recoveries	(47		)	(21		)	(8		)	(202		)
	78,166			70,441			229,931			209,983
Other Income (Expense)
Gain on sales of real estate assets	—			5,915			1			47,464
Interest expense	(13,759		)	(15,113		)	(43,512		)	(50,649		)
Loss on extinguishment of debt	—			—			—			(27,998		)
Pension termination	—			—			(4		)	(5,260		)
Impairment of real estate assets	—			(310		)	—			(3,638		)
Impairment of internally-developed software	—			—			—			(654		)
Interest and other income, net	123			72			301			311
	(13,636		)	(9,436		)	(43,214		)	(40,424		)
Income From Continuing Operations	11,857			16,848			33,177			39,482
Discontinued Operations
Income (loss) from discontinued operations	(23		)	61			(50		)	725
Gain on sales of real estate properties	—			10,571			7			10,571
Income (Loss) From Discontinued Operations	(23		)	10,632			(43		)	11,296
Net Income		$11,834			$27,480			$33,134			$50,778
Basic Earnings Per Common Share:
Income from continuing operations		$0.10			$0.17			$0.31			$0.40
Discontinued operations	0.00			0.11			0.00			0.11
Net income		$0.10			$0.28			$0.31			$0.51
Diluted Earnings Per Common Share:
Income from continuing operations		$0.10			$0.17			$0.31			$0.40
Discontinued operations	0.00			0.10			0.00			0.11
Net income		$0.10			$0.27			$0.31			$0.51
Weighted Average Common Shares Outstanding—Basic	114,152			99,337			106,552			98,994
Weighted Average Common Shares Outstanding—Diluted	115,052			99,997			107,366			99,694

(1) The Condensed Consolidated Statements of Income do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

HEALTHCAREREALTY.COM | PAGE 4 OF 5

HEALTHCARE REALTY TRUST INCORPORATED

Reconciliation of FFO and Normalized FFO ⁽¹⁾  

(amounts in thousands, except per share data)

(Unaudited)

Non-GAAP Measures

Management considers funds from operations ("FFO"), FFO per share, normalized FFO, and normalized FFO per share 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 or future 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.

Three Months Ended September 30,
	2016		2015
Net Income		$11,834		$27,480
Gain on sales of real estate properties	—		(16,486		)
Impairments of real estate assets	—		310
Real estate depreciation and amortization	32,557		29,317
Total adjustments	32,557		13,141
Funds From Operations		$44,391		$40,621
Acquisition costs	649		121
Write-off of deferred financing costs upon amendment of line of credit facility	81		—
Normalized Funds From Operations		$45,121		$40,742
Funds from Operations per Common Share—Diluted		$0.39		$0.41
Normalized Funds From Operations Per Common Share—Diluted		$0.39		$0.41
FFO Weighted Average Common Shares Outstanding	115,052		99,997

(1) 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 the most commonly accepted and reported measure of a REIT’s operating performance equal to “net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization (including amortization of leasing commissions), and after adjustments for unconsolidated partnerships and joint ventures.” The Company defines Normalized FFO as FFO excluding acquisition-related expenses and other normalizing items that are unusual and infrequent in nature. FFO does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs. FFO 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.

Management believes FFO, FFO per share, Normalized FFO, and Normalized FFO per share 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, and Normalized FFO per share 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. However, these measures 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, FFO per share, Normalized FFO, and Normalized FFO per share should not be considered as an alternative to net income attributable to common stockholders as an indicator of the Company’s operating performance or as an alternative to cash flow from operating activities as a measure of liquidity.

HEALTHCAREREALTY.COM | PAGE 5 OF 5

EX-99.2

3Q| 2016

Supplemental Information

FURNISHED AS OF NOVEMBER 2, 2016 (UNAUDITED)

Table of Contents

3	Corporate Information
5	Balance Sheet Information
6	Statements of Income Information
7	Historical Reconciliation of FFO
8	Debt Metrics
9	Investment Activity
10	Portfolio by Market
11	Square Feet by Provider
12	Square Feet by Proximity
13	Lease Maturity, Size and Building Square Feet
14	Occupancy Information
15	Same Store Properties
16	Reconciliation of Non-GAAP Measures
17	Same Store Leasing Statistics
18	Components of Net Asset Value
19	Components of Expected 2016 FFO

Copies of this report may be obtained at www.healthcarerealty.com or by contacting Investor Relations at 615.269.8175 or communications@healthcarerealty.com.

Forward looking statements and 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,” “annualized,” “expect,” “expected,” “future cash or NOI,” “deferred revenue,” “rent increases,” “range of expectations,” "budget," “components of expected 2016 FFO,” and other comparable terms in this report. These forward-looking statements are made as of the date of this report and are not guarantees 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: changes in the economy; increases in interest rates; the availability and cost of capital at expected rates; changes to facility-related healthcare regulations; 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 and repay loans; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to re-lease space at similar rates as vacancies occur; the Company's ability to renew expiring long-term single-tenant net leases; the Company's ability to timely reinvest proceeds from the sale of assets at similar yields; 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 Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2015 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.

HEALTHCARE REALTY 2 3Q 2016 SUPPLEMENTAL INFORMATION

Corporate Information

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2016, the Company had investments of approximately $3.5 billion in 202 real estate properties in 29 states totaling approximately 14.5 million square feet. The Company provided leasing and property management services to approximately 10.1 million square feet nationwide.

Corporate Headquarters

Healthcare Realty Trust Incorporated

3310 West End Avenue, Suite 700

Nashville, Tennessee 37203

Phone: 615.269.8175

Fax: 615.269.8461

E-mail: communications@healthcarerealty.com

Website: www.healthcarerealty.com

Executive Officers

David R. Emery	Chairman of the Board and Chief Executive Officer
John M. Bryant, Jr.	Executive Vice President and General Counsel
J. Christopher Douglas	Executive Vice President and Chief Financial Officer
Todd J. Meredith	Executive Vice President - Investments
B. Douglas Whitman, II	Executive Vice President - Corporate Finance

Board of Directors

David R. Emery	Chairman of the Board and Chief Executive Officer, Healthcare Realty Trust Incorporated
Nancy H. Agee	President and Chief Executive Officer, Carilion Clinic
C. Raymond Fernandez, M.D.	Retired Chief Executive Officer, Piedmont Clinic
Peter F. Lyle	Vice President of Health Systems, Pharma and Medical Practice Services, Medical Management Associates, Inc.
Edwin B. Morris III	Managing Director, Morris & Morse Company, Inc.
J. Knox Singleton	President and Chief Executive Officer, Inova Health System
Bruce D. Sullivan	Retired Audit Partner, Ernst & Young LLP
Christann M. Vasquez	President, Dell Seton Medical Center at University of Texas
Dan S. Wilford	Retired Chief Executive Officer, Memorial Hermann Healthcare System

HEALTHCARE REALTY 3 3Q 2016 SUPPLEMENTAL INFORMATION

Corporate Information

Professional Services

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BDO USA, LLP

414 Union Street, Suite 1800, Nashville, Tennessee 37219

TRANSFER AGENT

Wells Fargo N.A., Shareowner Services

1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120-4100

Stock Exchange, Symbol and CUSIP Number

SECURITY DESCRIPTION	STOCK EXCHANGE	SYMBOL	CUSIP NUMBER
Common Stock	NYSE	HR	421946104
Senior Notes due 2021	OTC	HR	421946AG9
Senior Notes due 2023	OTC	HR	421946AH7
Senior Notes due 2025	OTC	HR	421946AJ3

Dividend Reinvestment Plan

Through the Company’s transfer agent, Wells Fargo, named stockholders of record can re-invest dividends in shares at a 5% discount and may also purchase up to $60,000 of HR common stock per calendar year without a service or sales charge. For information, write Wells Fargo Shareowner Services, P.O. Box 64856, St. Paul, Minnesota 55164-0856, or call 1.800.468.9716. Information may also be obtained at the transfer agent’s website, www.shareowneronline.com.

Direct Deposit of Dividends

Direct deposit of dividends is offered as a convenience to stockholders of record. For information, write Wells Fargo Shareowner Services, P.O. Box 64856, St. Paul, Minnesota 55164-0856, or call 1.800.468.9716. Information may also be obtained at the transfer agent’s website, www.shareowneronline.com.

Dividends Declared

On November 1, 2016, the Company declared a dividend of $0.30 per share, payable on November 30, 2016, to stockholders of record on November 16, 2016.

Analyst Coverage

BTIG, LLC	Morgan Stanley
Cantor Fitzgerald, L.P.	KeyBanc Capital Markets Inc.
Goldman, Sachs & Co.	Mizuho Securities USA Inc.
Green Street Advisors, Inc.	Stifel, Nicolaus & Company, Inc.
J.J.B. Hilliard W.L. Lyons, LLC	SunTrust Robinson Humphrey, Inc.
J.P. Morgan Securities LLC	Wells Fargo Securities, LLC
JMP Securities LLC

HEALTHCARE REALTY 4 3Q 2016 SUPPLEMENTAL INFORMATION

Balance Sheet Information ⁽¹⁾ 

(dollars in thousands, except per share data)

ASSETS
				2016						2015
Real estate properties:	Q3			Q2			Q1			Q4			Q3
Land		$206,647			$208,386			$201,157			$198,585			$186,108
Buildings, improvements and lease intangibles	3,322,293			3,235,744			3,181,748			3,135,893			3,042,367
Personal property	10,124			10,032			9,881			9,954			9,833
Construction in progress	45,734			35,174			31,669			19,024			15,455
Land held for development	17,438			17,438			17,434			17,452			17,475
Total real estate properties	3,602,236			3,506,774			3,441,889			3,380,908			3,271,238
Less accumulated depreciation and amortization	(835,276		)	(819,744		)	(790,819		)	(761,926		)	(737,398		)
Total real estate properties, net	2,766,960			2,687,030			2,651,070			2,618,982			2,533,840
Cash and cash equivalents	12,649			9,026			2,174			4,102			8,497
Assets held for sale and discontinued operations, net	14,732			710			706			724			6,380
Other assets, net (2)	197,380			185,298			187,665			186,416			186,221
Total assets		$2,991,721			$2,882,064			$2,841,615			$2,810,224			$2,734,938
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Notes and bonds payable (2)		$1,239,062			$1,414,739			$1,418,347			$1,424,992			$1,374,537
Accounts payable and accrued liabilities	71,052			70,408			66,013			75,489			65,839
Liabilities of properties held for sales and discontinued operations	572			17			20			33			216
Other liabilities	46,441			46,452			64,236			66,963			65,648
Total liabilities	1,357,127			1,531,616			1,548,616			1,567,477			1,506,240
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 50,000 shares authorized; none issued and outstanding	—			—			—			—			—
Common stock, $.01 par value; 150,000 shares authorized	1,160			1,067			1,042			1,015			1,005
Additional paid-in capital	2,916,816			2,609,880			2,533,130			2,461,376			2,435,849
Accumulated other comprehensive loss	(1,443		)	(1,485		)	(1,527		)	(1,569		)	(1,611		)
Cumulative net income attributable to common stockholders	942,819			930,985			918,841			909,685			891,027
Cumulative dividends	(2,224,758		)	(2,189,999		)	(2,158,487		)	(2,127,760		)	(2,097,572		)
Total stockholders' equity	1,634,594			1,350,448			1,292,999			1,242,747			1,228,698
Total liabilities and stockholders' equity		$2,991,721			$2,882,064			$2,841,615			$2,810,224			$2,734,938

CAPITAL FUNDING
Re/development	$10,939	$8,542	$16,758	$9,322	$7,103
1st generation TI & planned capital expenditures for acquisitions (3)	4,471	5,486	1,298	4,686	4,073
2nd generation TI	6,013	5,559	4,202	3,081	3,627
Leasing commissions paid	1,514	1,587	1,079	1,856	1,050
Capital expenditures	5,088	5,653	2,098	3,918	3,402

(1) The balance sheet information is presented as of the last day of the quarter indicated.

(2) The Company adopted a new accounting standard (ASU 2015-03 - "Simplifying the Presentation of Debt Issuance Costs") on January 1, 2016 which resulted in a reclassification of deferred financing costs from Other assets to the Notes and bonds payable line item.

(3) Planned capital expenditures for acquisitions include expected fundings that were contemplated as part of the acquisition.

HEALTHCARE REALTY 5 3Q 2016 SUPPLEMENTAL INFORMATION

Statements of Income Information

(dollars in thousands)

	2016									2015												2014
	Q3			Q2			Q1			Q4			Q3			Q2			Q1			Q4
Revenues
Rental income		$102,534			$101,472			$98,740			$97,466			$95,383			$95,450			$95,034			$93,648
Mortgage interest	—			—			—			—			29			31			31			32
Other operating	1,125			1,170			1,281			1,116			1,313			1,227			1,391			1,320
	103,659			102,642			100,021			98,582			96,725			96,708			96,456			95,000
Expenses
Property operating	37,504			36,263			35,406			36,758			35,247			33,927			34,263			33,386
General and administrative	8,724			8,129			10,246			7,216			6,258			6,713			6,738			5,990
Depreciation	29,273			28,528			27,693			27,019			26,571			26,552			26,387			25,881
Amortization	2,712			2,762			2,700			2,556			2,386			2,474			2,667			2,630
Bad debts, net of recoveries	(47		)	78			(39		)	9			(21		)	27			(207		)	(92		)
	78,166			75,760			76,006			73,558			70,441			69,693			69,848			67,795
Other Income (Expense)
Gain on sales of real estate properties	—			1			—			9,138			5,915			41,549			—			—
Interest expense	(13,759		)	(14,815		)	(14,938		)	(14,885		)	(15,113		)	(17,213		)	(18,322		)	(18,237		)
Loss on extinguishment of debt	—			—			—			—			—			(27,998		)	—			—
Pension termination	—			(4		)	—			—			—			(5,260		)	—			—
Impairment of real estate assets	—			—			—			(1		)	(310		)	—			(3,328		)	—
Impairment of internally-developed software	—			—			—			—			—			(654		)	—			—
Interest and other income, net	123			93			86			78			72			147			91			91
	(13,636		)	(14,725		)	(14,852		)	(5,670		)	(9,436		)	(9,429		)	(21,559		)	(18,146		)
Income From Continuing Operations	11,857			12,157			9,163			19,354			16,848			17,586			5,049			9,059
Discontinued Operations
Income (loss) from discontinued operations	(23		)	(19		)	(7		)	(10		)	61			330			333			729
Impairments of real estate assets	—			—			—			(686		)	—			—			—			(995		)
Gain on sales of real estate properties	—			7			—			—			10,571			—			—			9,280
Income (Loss) From Discontinued Operations	(23		)	(12		)	(7		)	(696		)	10,632			330			333			9,014
Net Income		$11,834			$12,145			$9,156			$18,658			$27,480			$17,916			$5,382			$18,073

HEALTHCARE REALTY 6 3Q 2016 SUPPLEMENTAL INFORMATION

Historical Reconciliation of FFO ^{(1) (2)} 

(amounts in thousands, except for share data)

	2016							2015											2014
	Q3		Q2			Q1		Q4			Q3			Q2			Q1		Q4
Net Income Attributable to Common Stockholders		$11,834		$12,145			$9,156		$18,658			$27,480			$17,916			$5,382		$18,073
Gain on sales of real estate properties	—		(8		)	—		(9,138		)	(16,486		)	(41,549		)	—		(9,280		)
Impairments of real estate assets	—		—			—		687			310			—			3,328		995
Real estate depreciation and amortization	32,557		31,716			30,800		29,907			29,317			29,388			29,370		28,707
Total adjustments	32,557		31,708			30,800		21,456			13,141			(12,161		)	32,698		20,422
Funds from Operations Attributable to Common Stockholders		$44,391		$43,853			$39,956		$40,114			$40,621			$5,755			$38,080		$38,495
Acquisition costs	649		232			1,618		1,068			121			167			38		471
Write-off of deferred financing costs upon amendment of line of credit facility	81		—			—		—			—			—			—		—
Pension termination	—		4			—		—			—			5,260			—		—
Loss on extinguishment of debt	—		—			—		—			—			27,998			—		—
Impairment of internally-developed software	—		—			—		—			—			654			—		—
Severance expense	—		—			—		—			—			—			141		—
Security deposit recognized upon sale	—		—			—		—			—			—			—		(407		)
Reversal of restricted stock amortization upon director / officer resignation	—		—			—		(40		)	—			—			—		(115		)
Revaluation of awards upon retirement	—		—			89		—			—			—			—		—
Normalized Funds from Operations Attributable to Common Stockholders		$45,121		$44,089			$41,663		$41,142			$40,742			$39,834			$38,259		$38,444
Funds from Operations per Common Share—Diluted		$0.39		$0.42			$0.39		$0.40			$0.41			$0.06			$0.38		$0.39
Normalized Funds from Operations Per Common Share—Diluted		$0.39		$0.42			$0.41		$0.41			$0.41			$0.40			$0.39		$0.39
FFO Weighted Average Common Shares Outstanding	115,052		104,770			102,165		100,474			99,997			99,945			99,137		98,086

(1) Funds from operations (“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 the most commonly accepted and reported measure of a REIT’s operating performance equal to “net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization (including amortization of leasing commissions), and after adjustments for unconsolidated partnerships and joint ventures.”

(2) FFO does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs. FFO 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.

HEALTHCARE REALTY 7 3Q 2016 SUPPLEMENTAL INFORMATION

Debt Metrics

(dollars in thousands)

SUMMARY OF INDEBTEDNESS
	Q3 2016 Interest Expense (1)	Balance as of 9/30/2016 (2)	Weighted Months to Maturity	Effective Interest Rate
Senior Notes due 2021, net of discount	$5,831	$396,980	52	5.97	%
Senior Notes due 2023, net of discount	2,391	247,196	79	3.95	%
Senior Notes due 2025, net of discount (3)	2,469	247,764	103	4.08	%
Total Senior Notes Outstanding	$10,691	$891,940	73	4.89	%
Unsecured credit facility due 2020 (4)	71	81,000	46	1.53	%
Unsecured term loan facility due 2019	659	149,432	29	1.72	%
Mortgage notes payable, net	1,609	116,804	84	5.14	%
Total Outstanding Notes and Bonds Payable	$13,030	$1,239,176	67	4.31	%
Interest cost capitalization	(377)
Unsecured credit facility fee and deferred financing costs	1,106
Total Quarterly Consolidated Interest Expense	$13,759

SELECTED FINANCIAL DEBT COVENANTS (5)
	Calculation	Requirement	Trailing Twelve Months Ended 9/30/2016
Revolving Credit Facility and Term Loan
Leverage Ratio	Total Debt / Total Capital	Not greater than 60%	33.5	%
Secured Leverage Ratio	Total Secured Debt / Total Capital	Not greater than 30%	3.1	%
Unencumbered Leverage Ratio	Unsecured Debt / Unsecured Real Estate	Not greater than 60%	34.0	%
Fixed Charge Coverage Ratio	EBITDA / Fixed Charges	Not less than 1.50x	3.6x
Unsecured Coverage Ratio	Unsecured EBITDA / Unsecured Interest	Not less than 1.75x	4.0x
Construction and Development	CIP / Total Assets	Not greater than 15%	1.5	%
Asset Investments	Mortgages & Unimproved Land / Total Assets	Not greater than 20%	0.6	%
Senior Notes
Incurrence of Total Debt	Total Debt / Total Assets	Not greater than 60%	32.6	%
Incurrence of Debt Secured by Any Lien	Secured Debt / Total Assets	Not greater than 40%	3.0	%
Maintenance of Total Unsecured Assets	Unencumbered Assets / Unsecured Debt	Not less than 150%	312.1	%
Debt Service Coverage	EBITDA / Interest Expense	Not less than 1.5x	4.0x
Other
Net Debt to adjusted EBITDA (6)	Net debt (debt less cash) / adjusted EBITDA	Not required	5.0x
Debt to Enterprise Value (7)	Total Debt / Enterprise Value	Not required	25.6	%

(1) The Company adopted a new accounting standard (ASU 2015-03 - "Simplifying the Presentation of Debt Issuance Costs") on January 1, 2016 which resulted in a reclassification of deferred financing costs from Other assets to the Notes and bonds payable line item. The Company adjusted the effective interest rates to reflect this change.

(2) Balance includes $0.1 million of a mortgage note payable included in Liabilities of properties held for sale and discontinued operations.

(3) The effective interest rate includes the impact of the $1.7 million settlement of a forward-starting interest rate swap that is included in accumulated other comprehensive income on the Company's Condensed Consolidated Balance Sheets.

(4) As of July 5, 2016, the balance of the unsecured credit facility due 2017, which on July 29, 2016 was amended and extended through July 2020, was repaid with proceeds from the issuance of 9.2 million shares resulting in proceeds of $304.6 million. The average daily balance outstanding on the unsecured credit facility due 2017 for the third quarter of 2016 was $17.7 million.

(5) Does not include all financial and non-financial covenants and restrictions that are required by the Company's various debt agreements.

(6) Adjusted EBITDA is based on the current quarter results, annualized. See page 16 for a reconciliation of adjusted EBITDA.

(7) Based on the closing price of $31.33 on October 28, 2016 and 115,878,537 shares outstanding.

HEALTHCARE REALTY 8 3Q 2016 SUPPLEMENTAL INFORMATION

Investment Activity

(dollars in thousands)

2016 ACQUISITION ACTIVITY
Location	Campus Location	Distance to Campus	Health System Affiliation	Closing	Purchase Price	Acquisition Costs	Square Feet	Aggregate Leased %		Cap Rate (2)
Seattle, WA (1)	ADJ	0.24 miles	UW Medicine	3/31/2016	$38,259	$1,618	69,712	100	%	5.5	%
Seattle, WA	ON	0.00 miles	UW Medicine	4/29/2016	21,615	362	46,637	100	%	5.9	%
Los Angeles, CA	ON	0.00 miles	HCA	5/13/2016	20,000	232	63,012	80	%	5.1	%
Seattle, WA	ON	0.00 miles	UW Medicine	9/12/2016	53,065	618	87,462	100	%	5.5	%
Washington, DC	ON	0.00 miles	Inova Health System	9/26/2016	45,225	31	103,783	100	%	5.6	%
Baltimore, MD	ON	0.00 miles	University of Maryland	10/11/2016	36,275	452	113,631	92	%	5.7	%
Seattle, WA	ON	0.00 miles	Providence Health	10/17/2016	9,750	206	29,753	96	%	5.6	%
Total					$224,189	$3,519	513,990	96	%	5.6	%

HISTORICAL INVESTMENT ACTIVITY
	Acquisitions (3)		Mortgage Funding		Construction Mortgage Funding		Re/Development Funding		Total Investments		Dispositions
2012	$94,951		—		$78,297		$5,608		$178,856		$91,384
2013	216,956		—		58,731		—		275,687		101,910
2014	85,077		1,900		1,244		4,384		92,605		34,840
2015	187,216		—		—		27,859		215,075		157,975
2016 (4)	224,189		—		—		36,239		260,428		24,575
Total	$808,389		$1,900		$138,272		$74,090		$1,022,651		$410,684
% of Total	79.1	%	0.2	%	13.5	%	7.2	%	100	%

RE/DEVELOPMENT ACTIVITY
Location	Type (5)	Campus Location	Square Feet	Budget	Amount Funded Q3 2016	Total Amount Funded Through 9/30/2016	Estimated Remaining Fundings	Aggregate Leased %		Estimated Completion Date
Construction activity
Nashville, TN (6)	Redev	On	294,000	$51,800	$6,545	$45,775	$6,025	83	%	Q1 2017
Denver, CO	Dev	On	98,000	26,500	4,394	7,388	19,112	35	%	Q2 2017
Total construction activity			392,000	$78,300	$10,939	$53,163	$25,137	71	%

(1) Acquisition costs in Q1 2016 include seller credits related to a loan prepayment, brokerage commission and excise taxes.

(2) Represents the forecasted first year NOI / purchase price plus acquisition costs and expected capital additions.

(3) Net of mortgage notes receivable payoffs upon acquisition.

(4) Acquisitions and dispositions include activity through November 2, 2016.

(5) Redev - Redevelopment; Dev - Development

(6) Includes $15.2 million for the addition of 70,000 rentable square feet, $18.9 million for a 907-space parking garage and associated land and $17.7 million for existing building upgrades and tenant improvement allowances associated with newly executed leases.

HEALTHCARE REALTY 9 3Q 2016 SUPPLEMENTAL INFORMATION

Portfolio by Market

(dollars in thousands)

BY MARKET
		SQUARE FEET
		MOB/OUTPATIENT (89.4%)				INPATIENT (7.0%)				OTHER (3.6%)
	Investment(1)	Multi-tenant		Single-tenant Net Lease		Rehab		Surgical		Other		Total		% of Total
Dallas - Fort Worth, TX	$483,509	2,149,939				42,627		156,245				2,348,811		16.2	%
Seattle - Bellevue, WA	388,555	839,729		67,510								907,239		6.2	%
Charlotte, NC	167,617	820,457										820,457		5.6	%
Nashville, TN	93,849	717,434										717,434		4.9	%
Los Angeles, CA	160,491	551,383				63,000						614,383		4.2	%
Houston, TX	129,635	591,027										591,027		4.1	%
Richmond, VA	144,852	548,801										548,801		3.8	%
Des Moines, IA	133,829	233,413		146,542						152,655		532,610		3.7	%
San Antonio, TX	103,814	483,811				39,786						523,597		3.6	%
Memphis, TN	91,744	515,876										515,876		3.5	%
Roanoke, VA	48,965			334,454						126,427		460,881		3.2	%
Austin, TX	131,350	354,481				66,095				12,880		433,456		3.0	%
Indianapolis, IN	77,329	382,695										382,695		2.6	%
Denver, CO	109,825	346,335				34,068						380,403		2.6	%
Honolulu, HI	137,416	298,427										298,427		2.1	%
Washington, DC	75,212	286,619										286,619		2.0	%
Oklahoma City, OK	109,089	68,860		200,000								268,860		1.8	%
Chicago, IL	57,809	243,491										243,491		1.7	%
Miami, FL	53,553	241,980										241,980		1.7	%
Colorado Springs, CO	51,765	241,224										241,224		1.7	%
Phoenix, AZ	64,436	179,963				51,903						231,866		1.6	%
Detroit, MI	25,432	199,749								11,308		211,057		1.5	%
San Francisco, CA	86,485	210,621										210,621		1.4	%
South Bend, IN	43,985	205,573										205,573		1.4	%
Springfield, MO	111,293							186,000				186,000		1.3	%
Other (30 markets)	451,665	1,253,224		296,623		373,722				214,864		2,138,433		14.6	%
Total	$3,533,504	11,965,112		1,045,129		671,201		342,245		518,134		14,541,821		100.0	%
Number of Properties		165		14		11		2		10		202
Percent of Square Feet		82.2	%	7.2	%	4.6	%	2.4	%	3.6	%	100.0	%
Investment (1)		$2,800,544		$251,862		$191,815		$208,725		$80,558		$3,533,504
% of Investment		79.3	%	7.1	%	5.4	%	5.9	%	2.3	%	100.0	%

MSA BY RANK (% of total SF)
Rank	MOB / Outpatient		Total
Top 25	59	%	56	%
Top 50	83	%	78	%
Top 75	87	%	81	%
Top 100	92	%	87	%

(1) Excludes gross assets held for sale, land held for development, construction in progress and corporate property.

HEALTHCARE REALTY 10 3Q 2016 SUPPLEMENTAL INFORMATION

Square Feet by Provider ⁽¹⁾ 

MOB SQUARE FEET
	System Rank (3)	Credit Rating	ASSOCIATED (93.3%) (2)								Total MOB SF	% of Total MOB SF
Top Health Systems			On		Adjacent (4)		Anchored (5)		Off
Baylor Scott & White Health	19	AA-/Aa3	1,834,256		129,879		163,188		—		2,127,323	16.4	%
Ascension Health	3	AA+/Aa2	967,996		148,356		30,096		—		1,146,448	8.8	%
Catholic Health Initiatives	7	A-/--	769,471		132,617		95,486		—		997,574	7.7	%
Carolinas HealthCare System	27	--/Aa3	353,537		98,066		313,513		—		765,116	5.9	%
HCA	2	BB/B1	389,931		185,904		157,388		—		733,223	5.6	%
Tenet Healthcare Corporation	6	B/B1	570,264		67,790		—		—		638,054	4.9	%
Bon Secours Health System	49	A-/A3	548,801		—		—		—		548,801	4.2	%
Baptist Memorial Health Care	105	A-/--	424,306		—		39,345		—		463,651	3.6	%
Indiana University Health	22	AA-/Aa3	280,129		102,566		—		—		382,695	2.9	%
University of Colorado Health	73	AA-/Aa3	150,291		161,099		33,850		—		345,240	2.7	%
Trinity Health	8	AA-/Aa3	205,573		73,331		—		—		278,904	2.1	%
University of Washington	90	AA+/Aa1	194,536		69,712		—		—		264,248	2.0	%
Providence Health & Services	9	AA-/Aa3	126,361		129,181		—		—		255,542	2.0	%
Medstar Health	31	A-/A2	241,739		—		—		—		241,739	1.9	%
Advocate Health Care	26	AA/Aa2	142,955		95,436		—		—		238,391	1.8	%
Memorial Hermann	43	A+/A1	—		206,090		—		—		206,090	1.6	%
Community Health	4	B/B2	201,574		—		—		—		201,574	1.5	%
Mercy (St. Louis)	30	AA-/Aa3	—		—		200,000		—		200,000	1.5	%
Overlake Health System	343	A/A2	191,051		—		—		—		191,051	1.5	%
Other credit rated			799,056		560,499		90,607		—		1,450,162	11.1	%
Subtotal - credit rated (6)			8,391,827		2,160,526		1,123,473		—		11,675,826	89.7	%
Non-credit rated			269,506		192,418		—		872,491		1,334,415	10.3	%
Total			8,661,333		2,352,944		1,123,473		872,491		13,010,241	100.0	%
% of Total			66.6	%	18.1	%	8.6	%	6.7	%

HEALTH SYSTEM (2)(3) BY RANK (% of total SF)
Rank	MOB / Outpatient		Total
Top 25	54	%	51	%
Top 50	72	%	68	%
Top 75	76	%	72	%
Top 100	79	%	77	%

LEASED SQUARE FEET
					LEASED SQUARE FEET
Top Health Systems	System Rank (3)	Credit Rating	# of Buildings	# of Leases	MOB	Inpatient / Other	Total	% of Total Leased SF		% of Total Revenue
Baylor Scott & White Health	19	AA-/Aa3	23	161	998,331	156,245	1,154,576	9.0	%	10.1	%
Mercy (St. Louis)	30	AA-/Aa3	2	2	200,000	186,000	386,000	3.0	%	4.5	%
Catholic Health Initiatives	7	A-/--	14	81	544,132	—	544,132	4.2	%	4.4	%
Carolinas HealthCare System	27	--/Aa3	16	78	587,193	—	587,193	4.6	%	4.4	%
Baptist Memorial Health Care	105	A-/--	6	17	105,419	—	105,419	0.8	%	2.6	%
HealthSouth	89	BB-/Ba3	5	5	—	351,989	351,989	2.7	%	2.5	%
Bon Secours Health System	49	A-/A3	7	63	269,315	—	269,315	2.1	%	2.2	%
HCA	2	BB/B1	14	15	413,346	—	413,346	3.2	%	2.2	%
Ascension Health	3	AA+/Aa2	16	50	302,306	—	302,306	2.4	%	2.0	%
Tenet Healthcare Corporation	6	B/B1	10	35	121,887	63,000	184,887	1.4	%	1.7	%
Total								33.4	%	36.6	%

(1) Excludes mortgage notes receivable, construction in progress and assets classified as held for sale.

(2) Includes total square feet of buildings located on-campus, adjacent and off-campus/anchored by healthcare systems.

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

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

(5) Includes buildings where health systems lease 40% or more of the property.

(6) Based on square footage, 89.7% of HR's MOB portfolio is associated with a credit-rated healthcare provider and 77.4% is associated with an investment-grade rated healthcare provider.

HEALTHCARE REALTY 11 3Q 2016 SUPPLEMENTAL INFORMATION

Square Feet by Proximity ⁽¹⁾⁽²⁾ 

MEDICAL OFFICE BUILDINGS BY LOCATION
	2016 (3)						2015
	Q3		Q2		Q1		Q4		Q3		Q2
On campus	67	%	66	%	66	%	67	%	67	%	68	%
Adjacent to campus (3)	18	%	18	%	18	%	13	%	13	%	12	%
Total on/adjacent	85	%	84	%	84	%	80	%	80	%	80	%
Off campus - anchored by hospital system (4)	8	%	9	%	9	%	9	%	9	%	9	%
Off campus	7	%	7	%	7	%	11	%	11	%	11	%
	100	%	100	%	100	%	100	%	100	%	100	%

MEDICAL OFFICE BUILDINGS BY DISTANCE TO HOSPITAL CAMPUS
Greater than	Less than or equal to	Number of Buildings	Square Feet	% of Total		Cumulative %		Campus Proximity
	0.00	108	8,661,333	67	%	67	%	On campus
0.00	250 yards	19	1,231,736	9	%	76	%	Adjacent (3)
250 yards	0.25 miles	19	1,121,208	9	%	85	%
0.25 miles	0.50	3	143,690	1	%	86	%	Off campus
0.50	1.00	2	291,328	2	%	88	%
1.00	2.00	8	608,486	5	%	93	%
2.00	5.00	10	476,633	4	%	97	%
5.00	10.00	6	332,359	2	%	99	%
10.00		4	143,468	1	%	100	%
Total		179	13,010,241	100	%

(1) Excludes mortgage notes receivable, construction in progress and assets classified as held for sale.

(2) Hospitals include 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.

(3) Beginning in Q1 2016, the Company adopted a definition of an adjacent property as being no more than 0.25 miles from a hospital campus.

(4) Includes total square feet of buildings located on-campus, adjacent and off-campus/anchored by healthcare systems.

HEALTHCARE REALTY 12 3Q 2016 SUPPLEMENTAL INFORMATION

Lease Maturity, Size and Building Square Feet ⁽¹⁾ 

(dollars in thousands)

LEASE MATURITY SCHEDULE
	MULTI-TENANT				SINGLE-TENANT NET LEASE				TOTAL
	Number of Leases	Square Feet	% of Square Feet		Number of Leases	Square Feet	% of Square Feet		Number of Leases	Square Feet	% of Total Square Feet
2016	182	542,977	5.3	%	—	—	—	%	182	542,977	4.3	%
2017	416	1,737,427	17.0	%	5	334,454	14.6	%	421	2,071,881	16.6	%
2018	338	1,540,765	15.1	%	—	—	—	%	338	1,540,765	12.4	%
2019	340	1,527,025	14.9	%	9	371,805	16.3	%	349	1,898,830	15.2	%
2020	247	1,319,613	13.0	%	1	83,318	3.6	%	248	1,402,931	11.2	%
2021	185	792,810	7.8	%	2	143,868	6.3	%	187	936,678	7.5	%
2022	93	681,845	6.7	%	2	137,016	6.0	%	95	818,861	6.6	%
2023	109	817,518	8.0	%	1	75,000	3.3	%	110	892,518	7.1	%
2024	57	410,729	4.0	%	1	51,903	2.3	%	58	462,632	3.7	%
2025	40	400,199	3.9	%	2	91,561	4.0	%	42	491,760	3.9	%
Thereafter	50	443,990	4.3	%	11	995,822	43.6	%	61	1,439,812	11.5	%

BY LEASE SIZE
	NUMBER OF LEASES
Square Footage	Multi-Tenant Properties (2)	Single-Tenant Net Lease Properties
0 - 2,500	964	—
2,501 - 5,000	570	—
5,001 - 7,500	187	1
7,501 - 10,000	112	1
10,001 +	224	32
Total Leases	2,057	34

BY BUILDING SQUARE FEET
Size Range by Square Feet	% of Total		Total Square Footage	Average Square Feet	Number of Properties
>100,000	43.6	%	6,338,911	144,066	44
<100,000 and >75,000	23.6	%	3,428,941	85,724	40
<75,000 and >50,000	18.1	%	2,633,672	62,706	42
<50,000	14.7	%	2,140,297	28,162	76
Total	100.0	%	14,541,821	71,989	202

(1) Excludes mortgage notes receivable, land held for development, construction in progress, corporate property and assets classified as held for sale.

(2) The average lease size in the multi-tenant properties is 4,966 square feet.

HEALTHCARE REALTY 13 3Q 2016 SUPPLEMENTAL INFORMATION

Occupancy Information ⁽¹⁾ 

^{(dollars in thousands)} 

OCCUPANCY
								2016		2015
	Investment at  9/30/2016		Square Feet at 9/30/2016	Q3		Q2		Q1		Q4		Q3
Multi-Tenant
Same store properties		$2,300,520	10,288,750	87.8	%	87.8	%	87.9	%	87.6	%	87.4	%
Acquisitions	402,267		1,003,876	95.0	%	95.0	%	91.8	%	89.7	%	89.9	%
Development completions (2)	5,057		12,880	100.0	%	15.2	%	N/A		N/A		N/A
Reposition (3)	148,489		951,568	59.3	%	57.0	%	56.5	%	56.7	%	51.4	%
Total		$2,856,333	12,257,074	86.2	%	85.7	%	85.6	%	85.3	%	84.2	%
Single-Tenant Net lease
Same store properties		$677,171	2,284,747	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Acquisitions	—		—	—		—		100.0	%	100.0	%	100.0	%
Total		$677,171	2,284,747	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total
Same store properties		$2,977,691	12,573,497	90.0	%	90.0	%	90.0	%	89.8	%	89.6	%
Acquisitions	402,267		1,003,876	95.0	%	95.0	%	93.3	%	91.4	%	91.7	%
Development completions (2)	5,057		12,880	100.0	%	15.2	%	N/A		N/A		N/A
Reposition (3)	148,489		951,568	59.3	%	57.0	%	56.5	%	56.7	%	51.4	%
Total		$3,533,504	14,541,821	88.4	%	88.0	%	87.9	%	87.6	%	86.8	%
# of Properties
Same store properties				170		169		166		166		160
Acquisitions				15		15		16		16		17
Development completions (2)				1		1		N/A		N/A		N/A
Reposition (3)				16		17		17		16		18
Total				202		202		199		198		195

(1) Excludes mortgage notes receivable, land held for development, construction in progress, corporate property and assets classified as held for sale.

(2) Development completions consist of one property that was completed in April 2016 and is currently 100% leased.

(3) Reposition includes properties that are not stabilized based on specific criteria that are further discussed in the Company's Form 10-Q.

HEALTHCARE REALTY 14 3Q 2016 SUPPLEMENTAL INFORMATION

Same Store Properties

(dollars in thousands)

QUARTERLY (1)
	Q3 2016		Q2 2016		Q1 2016		Q4 2015		Q3 2015		Q2 2015		Q1 2015		Q4 2014
Multi-tenant
Revenues	$74,258		$73,040		$72,025		$71,820		$70,503		$69,680		$69,059		$68,420
Expenses	31,686		30,783		30,274		32,342		30,926		29,639		30,161		29,824
NOI	$42,572		$42,257		$41,751		$39,478		$39,577		$40,041		$38,898		$38,596
Occupancy	87.8	%	87.6	%	87.8	%	87.6	%	87.2	%	87.5	%	87.1	%	87.2	%
Number of properties	136		136		136		136		136		136		136		136
Single-tenant net lease
Revenues	$16,459		$16,457		$16,529		$16,518		$16,451		$16,345		$16,370		$16,167
Expenses	445		389		456		481		419		396		395		434
NOI	$16,014		$16,068		$16,073		$16,037		$16,032		$15,949		$15,975		$15,733
Occupancy	100.0	%	100.0	%	100.0	%	100.0	%	98.4	%	98.4	%	98.4	%	89.7	%
Number of properties	34		34		34		34		34		34		34		34
Total
Revenues	$90,717		$89,497		$88,554		$88,338		$86,954		$86,025		$85,429		$84,587
Expenses	32,131		31,172		30,730		32,823		31,345		30,035		30,556		30,258
Same Store NOI	$58,586		$58,325		$57,824		$55,515		$55,609		$55,990		$54,873		$54,329
Occupancy	90.0	%	89.9	%	90.0	%	89.9	%	89.5	%	89.7	%	89.4	%	89.3	%
Number of properties	170		170		170		170		170		170		170		170
% NOI year-over-year growth	5.4	%	4.2	%	5.4	%	2.2	%

TRAILING TWELVE MONTHS (1)
	Twelve Months Ended September 30,
	2016		2015		% Change
Multi-tenant
Revenues	$291,143		$277,662		4.9	%
Expenses	$125,085		$120,550		3.8	%
NOI	$166,058		$157,112		5.7	%
Revenue per average occupied square foot	$32.30		$30.94		4.4	%
Average occupancy	87.6	%	87.2	%
Number of properties	136		136
Single-tenant net lease
Revenues	$65,963		$65,333		1.0	%
Expenses	$1,771		$1,644		7.7	%
NOI	$64,192		$63,689		0.8	%
Revenue per average occupied square foot	$28.87		$28.78		0.3	%
Average occupancy	100.0	%	99.4	%
Number of properties	34		34
Total
Revenues	$357,106		$342,995		4.1	%
Expenses	$126,856		$122,194		3.8	%
Same Store NOI	$230,250		$220,801		4.3	%
Revenue per average occupied square foot	$31.61		$30.51		3.6	%
Average occupancy	89.9	%	89.4	%
Number of Properties	170		170

(1) Excludes recently acquired or disposed properties, mortgage notes receivable, development completions, construction in progress, land held for development, corporate property, reposition properties and assets classified as held for sale.

HEALTHCARE REALTY 15 3Q 2016 SUPPLEMENTAL INFORMATION

Reconciliation of Non-GAAP Measures

(dollars in thousands)

QUARTERLY NOI
	Q3 2016			Q2 2016			Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014
Rental income (a)		$102,534			$101,472			$98,740			$97,466			$95,383			$95,450			$95,034			$93,648
Property lease guaranty revenue (b)	817			885			1,002			851			999			937			1,102			1,029
Exclude straight-line rent revenue	(1,223		)	(2,091		)	(2,132		)	(1,929		)	(2,309		)	(2,475		)	(2,832		)	(3,122		)
Revenue	102,128			100,266			97,610			96,388			94,073			93,912			93,304			91,555
Property operating expense	(37,504		)	(36,263		)	(35,406		)	(36,758		)	(35,247		)	(33,927		)	(34,263		)	(33,386		)
NOI		$64,624			$64,003			$62,204			$59,630			$58,826			$59,985			$59,041			$58,169
Less:
Acquisitions / Development completions	(4,638		)	(4,227		)	(3,065		)	(2,646		)	(1,660		)	(1,165		)	(1,202		)	(327		)
Reposition	(841		)	(903		)	(825		)	(962		)	(835		)	(766		)	(805		)	(1,358		)
Dispositions / other	(559		)	(548		)	(490		)	(507		)	(722		)	(2,064		)	(2,161		)	(2,155		)
Same store NOI		$58,586			$58,325			$57,824			$55,515			$55,609			$55,990			$54,873			$54,329
(a) Rental income reconciliation:
Property operating		$85,264			$83,283			$80,501			$79,466			$76,960			$75,470			$74,654			$73,153
Single-tenant net lease	16,047			16,098			16,107			16,071			16,114			17,505			17,548			17,373
Straight-line rent	1,223			2,091			2,132			1,929			2,309			2,475			2,832			3,122
Total consolidated rental income		$102,534			$101,472			$98,740			$97,466			$95,383			$95,450			$95,034			$93,648
(b) Other operating income reconciliation:
Property lease guaranty revenue		$817			$885			$1,002			$851			$999			$937			$1,102			$1,029
Interest income	129			115			123			123			144			156			157			163
Other	179			170			156			142			170			134			132			128
Total consolidated other operating income		$1,125			$1,170			$1,281			$1,116			$1,313			$1,227			$1,391			$1,320

TRAILING TWELVE MONTHS NOI
	Twelve Months Ended September 30,
	2016		2015		% Change
Same store NOI	$230,250		$220,801		4.3	%
Reposition	3,531		3,764		(6.2	)%
Subtotal	$233,781		$224,565		4.1	%
Acquisitions / Development completions	14,576		4,354		234.8	%
Dispositions / other	2,104		7,102		(70.4	)%
NOI		$250,461		$236,021	6.1	%

EBITDA
	Q3 2016		Q2 2016		Q1 2016		Q4 2015		Trailing Twelve Months
Net income	$11,834		$12,145		$9,156		$18,658		$51,793
Interest expense	13,759		14,815		14,938		14,885		58,397
Depreciation and amortization	31,984		31,290		30,393		29,575		123,242
Acquisition costs	649		232		1,618		1,068		3,567
Gain on sales of real estate properties	—		(8)		—		(9,138)		(9,146)
Impairments on real estate assets	—		—		—		687		687
EBITDA		$58,226		$58,474		$56,105		$55,735		$228,540
Timing impact of acquisitions and dispositions (1)	1,284		190		547		577		2,598
Stock based compensation	1,851		1,850		1,859		1,471		7,031
Adjusted EBITDA		$61,361		$60,514		$58,511		$57,783		$238,169

(1) Adjusted to reflect quarterly EBITDA from properties acquired or disposed in the quarter.

HEALTHCARE REALTY 16 3Q 2016 SUPPLEMENTAL INFORMATION

Same Store Leasing Statistics ⁽¹⁾ 

					2016								2015		2014
	Q3		Q2		Q1		Q4		Q3		Q2		Q1		Q4
Contractual rent increases occurring in the quarter
Multi-tenant properties	2.8	%	2.9	%	2.9	%	3.0	%	2.9	%	3.1	%	3.0	%	2.9	%
Single-tenant net lease properties	1.7	%	2.2	%	1.0	%	1.6	%	2.6	%	2.2	%	0.7	%	6.9	%
Total	2.5	%	2.7	%	2.5	%	2.8	%	2.8	%	2.9	%	2.6	%	4.0	%
Multi-tenant renewals
Cash leasing spreads	4.3	%	6.3	%	7.2	%	3.7	%	2.1	%	5.0	%	3.6	%	4.0	%
Tenant retention rate	90.1	%	81.2	%	87.2	%	91.2	%	82.4	%	87.3	%	83.1	%	88.6	%

	As of 9/30/2016
	Multi-tenant		Single-tenant Net Lease
Contractual Rental Rate Increases by Type
Annual increase
CPI	2.1	%	57.6	%
Fixed	83.8	%	26.6	%
Non-annual increase
CPI	2.2	%	5.3	%
Fixed	4.1	%	10.5	%
No increase
Term < 1 year	4.6	%	—	%
Term > 1 year	3.2	%	—	%
Tenant Type
Hospital	44.9	%	82.6	%
Physician and other	55.1	%	17.4	%
Lease Structure
Gross	15.1	%	—	%
Modified gross	29.7	%	—	%
Net	55.2	%	100.0	%
Ownership Type
Ground lease	63.4	%	10.9	%
Fee simple	36.6	%	89.1	%

(1) Excludes recently acquired or disposed properties, mortgage notes receivable, construction in progress, land held for development, corporate property, reposition properties and assets classified as held for sale.

HEALTHCARE REALTY 17 3Q 2016 SUPPLEMENTAL INFORMATION

Components of Net Asset Value

(dollars in thousands)

Asset Type	Q3 2016 Same Store NOI(1)	Q3 2016 Acquisitions/Development Completions NOI (2)	Q3 2016 Reposition NOI(3)	Timing Adjustments(4)	Q3 2016 Adjusted NOI	Annualized Adjusted NOI	% of Adjusted NOI
MOB / Outpatient	$47,570	$4,638	$954	$1,743	$54,905	$219,620	83.2	%
Inpatient rehab	4,672	—	—	—	4,672	18,688	7.1	%
Inpatient surgical	4,481	—	—	—	4,481	17,924	6.8	%
Other	1,863	—	68	—	1,931	7,724	2.9	%
Total NOI	$58,586	$4,638	$1,022	$1,743	$65,989	$263,956	100.0	%

TOTAL SHARES OUTSTANDING (AS OF OCTOBER 28, 2016) 115,878,537

DEVELOPMENT PROPERTIES
	Land held for development		$17,438
	Construction in progress	45,734
	Subtotal		$63,172
OTHER ASSETS
	Assets held for sale(5)		$24,526
	Reposition properties (net book value)(3)	14,411
	Cash and other assets(6)	97,253
	Subtotal		$136,190
DEBT
	Unsecured credit facility		$81,000
	Unsecured term loan	150,000
	Senior notes	900,000
	Mortgage notes payable	115,944
	Other liabilities(7)	83,698
	Subtotal		$1,330,642

(1) See Same Store Properties schedule on page 15 for details on same store NOI.

(2) Adjusted to reflect quarterly NOI from properties acquired or developments completed during the full eight quarter period that are not included in same store NOI.

(3) Reposition properties includes 16 properties which comprise 951,568 square feet. The NOI table above includes 10 of these properties comprising 701,710 square feet that have generated positive NOI totaling approximately $1.0 million. The remaining 6 properties, comprising 249,858 square feet, have generated negative NOI of approximately $0.2 million and are reflected at a net book value of $14.4 million in the table above.

(4) Timing adjustments related to current quarter acquisitions and the difference between leased and occupied square feet on previous developments.

(5) Assets held for sale includes three real estate properties that are excluded from same store NOI and reflect net book value or the contractual purchase price, if applicable.

(6) Includes cash of $12.6 million and other assets of $84.7 million that are expected to generate future cash or NOI and assets that are currently causing non-cash reductions to NOI. Other assets include prepaid assets of $66.5 million and above-market intangible assets (net) of $18.2 million.

(7) Includes 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 $71.4 million, security deposits of $6.9 million, market-rate lease intangibles of $3.4 million, and deferred operating expense reimbursements of $2.0 million. Also, excludes deferred revenue of $34.3 million.

HEALTHCARE REALTY 18 3Q 2016 SUPPLEMENTAL INFORMATION

Components of Expected 2016 FFO

(dollars in thousands, except per square foot data)

SAME STORE QUARTERLY RANGE OF EXPECTATIONS
	Low			High
Occupancy
Multi-Tenant	87.5		%	89.0		%
Single-Tenant Net Lease	100.0		%	100.0		%
TTM Revenue per Occupied Square Foot (1)
Multi-Tenant		$31.00			$33.00
Single-Tenant Net Lease		$28.00			$29.00
Multi-Tenant TTM NOI Margin (1)	56.0		%	58.0		%
Multi-Tenant Contractual Rent Increases by Type (% of SF)
Annual Increase	80.0		%	90.0		%
Non-annual Increase	6.0		%	8.0		%
No Increase (term < 1 year)	4.0		%	6.0		%
No Increase (term > 1 year)	3.0		%	5.0		%
Contractual Increases Occurring in the Quarter
Multi-Tenant	2.8		%	3.0		%
Single-Tenant Net Lease	1.0		%	3.0		%
Multi-Tenant Cash Leasing Spreads	3.0		%	6.5		%
Multi-Tenant Lease Retention Rate	75.0		%	90.0		%
TTM NOI Growth (1)
Multi-Tenant (2)	4.5		%	6.5		%
Single-Tenant Net Lease	0.0		%	3.0		%
ANNUAL RANGE OF EXPECTATIONS
	Low			High
Normalized G&A (3)	$30,500			$32,500
Funding Activity
Acquisitions	$225,000			$250,000
Dispositions	(50,000)			(75,000)
Re/Development	40,000			50,000
1st Generation TI and Planned Capital Expenditures for Acquisitions	12,000			18,000
2nd Generation Tenant Improvements	15,000			25,000
Leasing Commissions	4,000			8,000
Capital Expenditures	14,000			22,000
Cash Yield
Acquisitions	5.50		%	6.00		%
Dispositions	7.50		%	8.50		%
Development (stabilized)	6.75		%	8.00		%
Redevelopment (stabilized)	7.50		%	8.50		%
Leverage (Debt/Cap)	32.0		%	36.0		%

(1) TTM = Trailing Twelve Months

(2) Long-term same store NOI Growth, excluding changes in occupancy, is expected to range between 2% and 4%.

(3) Normalized G&A excludes acquisition expenses and includes amortization of non-cash share-based compensation awards of $7.4 million inclusive of $2.4 million related to 2015 performance awards.

HEALTHCARE REALTY 19 3Q 2016 SUPPLEMENTAL INFORMATION