Healthcare Realty Trust Incorporated (HR) — ESG & Values Scores

Environment story

Healthcare Realty Trust operates medical office and outpatient facilities with no disclosed direct Scope 1 or 2 emissions data, renewable energy percentages, or net-zero targets in the 10-K filing. The company acknowledges environmental risks including hazardous substance liability, underground storage tanks, asbestos-containing materials, and radioactive isotope handling at nuclear medicine facilities. Environmental site assessments have been conducted on substantially all properties, but the company does not control tenant operations or monitor compliance. Climate change impact on property damage and increased operating costs is recognized. No verified decarbonization infrastructure investments or Scope 3 emissions reporting identified. The 2025 Corporate Responsibility Report is referenced but not provided for detailed ESG metrics. Absence of disclosed emissions targets and mitigation strategies constitutes a material data gap in environmental performance assessment.

Criticisms on file

Unmitigated Hazardous Substance Liability: Company owns properties with underground storage tanks, asbestos-containing materials, and radioactive isotope handling at nuclear medicine facilities. Limited monitoring of tenant compliance and no operational control over tenant environmental practices.
Source: SEC 10-K Item 1A Risk Factors - Environmental Matters section, page 5-6
Climate Change Operational Impact: Properties located in areas susceptible to wildfires, hurricanes, earthquakes, tornadoes, and floods. Potential for increased insurance costs and property damage above historical expectations.
Source: SEC 10-K Item 1A Risk Factors - Damage from catastrophic weather section, page 11
Legislative Climate Cost Pressure: Enacted or proposed legislation to address climate change could increase utility and operating costs without corresponding revenue increases.
Source: SEC 10-K Item 7 MD&A - Costs of complying with governmental laws section, page 18

Disclosed initiatives

Environmental Site Assessments

Company has conducted environmental site assessments on substantially all owned properties to evaluate potential environmental conditions.

Limited scope; assessments evaluate potential conditions but do not provide ongoing compliance monitoring of tenant operations.
Lease Indemnification Provisions

Company seeks indemnification from tenants relating to environmental liabilities or conditions where lease provisions exist.

Risk mitigation strategy; however, tenant ability to fulfill obligations is not assured.
ESG Framework Integration

Company references participation in GRESB Assessment, SASB reporting alignment, SDG goal-setting, and TCFD climate risk strategy expansion.

Framework adoption stated; detailed metrics and targets not disclosed in 10-K.

Social story

Healthcare Realty Trust employs 539 people as of December 31, 2025, comprised of accountants, maintenance engineers, property managers, leasing personnel, architects, and administrative staff. The company states commitment to diversity and inclusion and offers employee benefits including first-day health coverage, 401(k) matching up to $2,800 annually, fully paid long-term disability and life insurance, and tuition reimbursement up to $3,000 annually. No CEO-to-median-worker pay ratio disclosed. No disclosed workforce diversity metrics (gender, race/ethnicity percentages) for total workforce or leadership. No documented union activity, strikes, or labor disputes in the past 24 months identified. No supply-chain human rights audits or unmitigated hazards flagged. The company acknowledges dependency on talent attraction and retention in a tight labor market but provides limited quantitative DEI transparency.

Criticisms on file

Labor Market Pressure: Company acknowledges rising labor costs, increased competition for talent, and tight labor market make it difficult to hire and retain skilled and unskilled employees.
Source: SEC 10-K Item 1A Risk Factors - The Company's success depends section, page 13
Prospect Medical Bankruptcy Tenant Impact: Prospect Medical Holdings filed Chapter 11 bankruptcy in January 2025, leasing approximately 80,912 square feet from the Company. Hartford HealthCare assumed 65,477 square feet effective January 1, 2026, with remaining space relet status uncertain.
Source: SEC 10-K Item 1A Risk Factors - The Company's results of operations section, page 7

Disclosed initiatives

Diversity and Inclusion Culture

Company states commitment to fostering, cultivating, and preserving culture of diversity and inclusion, embracing differences in race, color, religion, sex, sexual orientation, national origin, age, disability, veteran status, and other characteristics.

Policy statement; no quantified representation metrics or DEI program details disclosed in 10-K.
Comprehensive Employee Benefits Package

Health benefits and 401(k) eligibility from first day; dollar-for-dollar 401(k) match up to $2,800; 100% premium coverage for long-term disability and life insurance; tuition reimbursement up to $3,000 annually.

Competitive benefits structure designed to attract and retain talented workforce.
Employee and Community Engagement

Company references employee and community engagement programs detailed in 2025 Corporate Responsibility Report.

Details not disclosed in 10-K filing; report accessible on company website.

Governance story

Healthcare Realty Trust is a Maryland corporation organized as a REIT with a Board of Directors overseeing ESG integration and three board committees: Audit Committee, Compensation and Human Capital Committee, and Nominating and Corporate Governance Committee. The 10-K filing does not disclose board independence percentage, total board size, or composition details. No dual-class share structure identified; however, the company's articles of incorporation contain 9.8% ownership transfer restrictions to maintain REIT qualification. No specific annual lobbying expenditures disclosed in the 10-K. The company faces extensive healthcare industry lobbying exposure through participation in trade associations and industry coordination on reimbursement and regulatory matters. No active antitrust proceedings, consumer-safety litigation, or financial-fraud regulatory actions identified in the 10-K. The Board has adopted written charters for all committees and Corporate Governance Principles posted on the company website. Cybersecurity risk oversight delegated to Audit Committee with annual reviews and quarterly briefings.

Criticisms on file

Healthcare Industry Regulatory Scrutiny: Company acknowledges federal and state legislative proposals to restrict REIT ownership of healthcare facilities, impose additional government oversight on healthcare transactions, and heightened antitrust review of health system consolidation.
Source: SEC 10-K Item 1 Legislative Developments section, pages 3-4
Cybersecurity Breaches History: Company discloses prior security breaches, though breaches to date have not had material impact. Audit Committee receives quarterly cybersecurity briefings and annual meetings with head of technology.
Source: SEC 10-K Item 1A Risk Factors - Cyber attacks section and Item 1C Cybersecurity section, pages 11, 23
Transfer Tax Rate Increases: Multiple jurisdictions where company owns assets (Los Angeles, San Francisco, Seattle, Washington D.C., Boston) have implemented or increased real estate transfer taxes, reducing property sale values and increasing transaction costs.
Source: SEC 10-K Item 7 MD&A - New and increased transfer tax rates section, page 20

Disclosed initiatives

Board Committee Structure and Charters

Audit Committee, Compensation and Human Capital Committee, and Nominating and Corporate Governance Committee established with written charters. Audit Committee oversees cybersecurity, internal audit, and risk management.

Governance framework in place; specific independence metrics and committee composition not disclosed.
ESG Performance Metrics in Executive Incentive Program

Named executive officer incentive program includes ESG performance measures as component of compensation.

Aligns management compensation with ESG objectives; specific metrics and weighting not disclosed.
GRESB Assessment Participation and SASB Alignment

Company participates in annual GRESB Assessment, reports in alignment with Sustainability Accounting Standards Board, and establishes goals under Sustainable Development Goals framework.

Third-party ESG benchmarking and standardized reporting; detailed performance metrics referenced in 2025 Corporate Responsibility Report not provided in 10-K.
REIT Compliance and Tax Governance

Company maintains complex compliance infrastructure for REIT qualification under Internal Revenue Code, including asset tests, income composition management, distribution requirements, and stockholder ownership limits.

Compliance framework mitigates tax disqualification risk; operational flexibility constrained by REIT requirements.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Healthcare Realty Trust Incorporated. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Healthcare Realty Trust Incorporated in the app for interactive charts and portfolio building.

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