Environmental

Through operational efficiency, strategic capital planning and data monitoring, we continue to improve our portfolio’s overall performance. These efforts are critical to our sustainable business strategy, mitigating climate risk and reducing utility costs, one of our largest operating expenses. In turn, our tenants, hospital system partners and shareholders benefit from cost savings and higher-performing properties.

Partners

As a proud ENERGY STAR® partner since 2004, 98% of our managed buildings were benchmarked in ENERGY STAR® Portfolio Manager® in 2020.

Since 2015, we have partnered with Mechanical Resource Group (MRG) to install EnergyLogiX real-time electricity monitoring technology in buildings throughout our portfolio.

In 2019, we partnered with Black Bear Energy to evaluate renewable energy opportunities across our portfolio and identify the best properties for solar installation. In California, we are currently underway on five solar projects at our buildings that will generate up to 3.3 megawatts (mW) of energy annually.

In 2020, we began using Measurabl’s sustainability platform to expand collection, management, benchmarking, and reporting of environmental data and efficiency projects. Measurabl is also used to identify and understand physical climate risks in our portfolio.

Environmental Performance Highlights(1)

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(1) Healthcare Realty’s 2020 data was impacted by reduced utilization due to the COVID-19 pandemic, particularly during March and April. While all of our buildings remained open and operational throughout 2020, lower foot traffic and utilization reduced water consumption, energy utilization and greenhouse gas (GHG) emissions. Compared to general office buildings, most medical office buildings saw a faster rebound in utilization and resource consumption. Consumption has normalized in 2021.

(2) Year-over-year energy, GHG and water comparisons include 158 managed properties totaling 12.5M SF with data coverage. This includes properties owned since January 2019 and excludes redevelopment projects, assets held for sale and dispositions.

(3) Baseline includes properties owned since January 2016 and excludes redevelopment projects, assets held for sale and dispositions. Energy and GHG baselines include 121 managed properties totaling 9.7M SF with energy data coverage. Water baseline includes 122 managed properties totaling 9.8M SF with water data coverage. The Company will report on a water reduction goal in 2022.

Sustainability Capital Investments

In 2020, Healthcare Realty invested $12 million on more than 200 efficiency projects throughout its portfolio including HVAC updates and replacements, reflective roofing, real-time metering, LED lighting, energy management systems, drip irrigation, and drought-resistant landscaping.
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Green Building Certifications

At December 31, 2021, Healthcare Realty owned six LEED® certified properties totaling 758,000 square feet. In 2021, we began planning a new 106,000 square foot, on-campus LEED redevelopment project in Nashville.

In 2021, we established a new goal to increase green building certifications (LEED, ENERGY STAR®, IREM® CSP, or similarly recognized third party certification) to 45 buildings by 2025. This initiative is supported by a sustainability-linked interest rate discount incorporated into our $150 million term loan due June 2026.

The Company’s pursuit of IREM Certified Sustainable Property (CSP) designations earned five new certifications in 2021 totaling 303,000 square feet.

Overlake Medical Pavilion

LEED Silver
Seattle, Washington
191,000 SF
2011 Development

Valley Medical Pavilion

LEED Certified
Seattle, Washington
151,000 SF
2020 Development

Medical Arts III

LEED Certified
Houston, Texas
97,000 SF
2012 Development

St. Joseph Regional Medical

LEED Gold
South Bend, Indiana
206,000 SF
2013 Acquisition

Penrose Pavilion

LEED Certified
Colorado Springs, Colorado
70,000 SF
2012 Acquisition

Highmark Medical Center

LEED Gold
Seattle, Washington
44,000 SF
2019 Acquisition

St. Thomas Midtown Mid-State

LEED Redevelopment Project
Nashville, Tennessee
106,000 SF
Construction to begin in 2022

Jefferson MOB

Austin, Texas
98,000 SF
Certified 2021

West Hills Medical Center

Los Angeles, California
63,000 SF
Certified 2021

Macomb POB

Detroit, Michigan
57,000 SF
Certified 2021

Fountain Valley II

Los Angeles, California
43,000 SF
Certified 2021

Park Hill Medical Plaza

Los Angeles, California
43,000 SF
Certified 2021