Healthcare Realty's Revolving CFO Door: Wall Street Veteran Gabbay In, Helfrich Out After 3 Months
January 7, 2026 · by Fintool Agent
Healthcare Realty Trust-1.04% is replacing its CFO just three months after making the position permanent—the latest in a sweeping executive overhaul driven by activist pressure and a struggling stock. Daniel Gabbay, a 20-year Wall Street dealmaker with deep healthcare REIT expertise, will assume the role on January 12, 2026, replacing Austen Helfrich who is departing to "pursue new business opportunities."
The transition carries a $5 million severance charge and represents the second CFO departure in 15 months at the nation's largest pure-play medical outpatient REIT.
HR shares closed at $17.06 today, down 1.7% on the announcement.
The Healthpeak Connection
Gabbay's appointment isn't just a finance hire—it's a strategic reunion. New CEO Peter Scott, who joined Healthcare Realty in April 2025 after nine years as CFO at Healthpeak Properties+0.80%, has known Gabbay for "over two decades."
The connection runs deep: Gabbay recently advised Healthpeak on its $5 billion merger with Physicians Realty Trust—the same deal Scott orchestrated from inside the company.
"I am incredibly excited to welcome Dan to Healthcare Realty," Scott said. "Dan brings an exceptional blend of strategic insight, analytical rigor, and capital markets expertise, not to mention deep experience in our sector."
Gabbay's credentials are formidable for a healthcare REIT finance chief:
| Background | Details |
|---|---|
| Most Recent Role | Managing Director, RBC Capital Markets (2024-2026) |
| Prior Experience | Managing Director, Barclays Real Estate IB |
| Career Start | Lehman Brothers, 2001 |
| Education | Harvard MBA, Wharton BS, UPenn BA |
| Notable Deals | Healthpeak-Physicians Realty $5B merger, Sonida-CNL $3B combination |
Ask Fintool AI AgentA Year of Chaos
Gabbay inherits a company that has cycled through three CFOs and two CEOs since September 2024. The churn traces directly to activist investor Starboard Value, which acquired a 5.9% stake and forced dramatic boardroom changes.
The turbulence began in September 2024 when long-time CFO Kris Douglas departed after 21 years. Two months later, CEO Todd Meredith—who spent 23 years at the company including eight as chief executive—was ousted.
Starboard's intervention in December 2024 resulted in three new board members with "deep industry and leadership experience" and reduced board size from 12 to 7.
Now, Helfrich—who was promoted from interim to permanent CFO just weeks after the Starboard deal—is out after barely warming the seat.
Why Starboard Swooped In
Healthcare Realty's troubles stem from its 2022 acquisition of Healthcare Trust of America in an $18 billion megadeal. While 92% of shareholders approved the merger, execution faltered badly.
Property operating expenses ballooned from 31% to 37%—several percentage points above peers. The FFO yield sits at 9%, far above the 5-6% range of competitors. And the cap rate expanded to 7% from the 4.85% blended rate implied in the merger.
| Metric | Q4 2023 | Q3 2025 | Trend |
|---|---|---|---|
| Revenues | $322M | $287M | ↓ 11% |
| EBITDA | $205M | $174M | ↓ 15% |
| Net Debt | $5.29B | $4.69B | ↓ 11% |
| Same-Store Occupancy | — | 91.2% | Improving |
Source: S&P Global
The company's strategic response under Scott has been aggressive: a 23% dividend cut, $1 billion in asset sales, balance sheet deleveraging, and an operational pivot from a "transactions-oriented culture" to an "operations-oriented culture."
Ask Fintool AI AgentHelfrich's Quiet Exit
The circumstances around Helfrich's departure remain diplomatically vague. His separation is governed by "termination other than for cause" provisions—meaning he'll receive full severance and accelerated equity vesting.
The company expects to record approximately $5 million in charges related to Helfrich's exit in Q1 2026.
Scott offered measured praise: "Since joining the Company in 2019, Austen made significant contributions across the organization. I am grateful for his partnership and strong financial leadership during a critical time for Healthcare Realty."
Helfrich's tenure was brief but consequential. He led the formation of joint venture partnerships with KKR, Nuveen, and CBRE Investment Management that became central to the company's capital recycling strategy.
What Gabbay Inherits
The incoming CFO faces a company in transition but no longer in crisis. The balance sheet has materially improved:
| Balance Sheet Metric | Q1 2024 | Q3 2025 |
|---|---|---|
| Total Debt | $5.42B | $4.73B |
| Net Debt / EBITDA | — | 6.0x |
| Near-Term Maturities (through 2026) | $1.5B | $600M |
Sources: S&P Global; company filings
Healthcare Realty maintained its 2025 Normalized FFO guidance of $1.57-$1.61 per share following the announcement—a modest positive given the disruption.
Gabbay's compensation package signals the company's commitment: $500,000 base salary, $625,000 annual bonus target (guaranteed at target for 2026), $1.375 million in equity awards, plus a $2.75 million make-whole restricted stock grant vesting over four years. Relocation benefits add another $300,000.
In a change of control, Gabbay would receive 2.5x his base salary and average bonus with full equity acceleration.
Ask Fintool AI AgentThe Bigger Picture
The Scott-Gabbay pairing represents a deliberate strategy to import the Healthpeak playbook to Healthcare Realty. Scott's track record at Healthpeak included the Physicians Realty merger, $12 billion in asset recycling, and reducing leverage by roughly two turns.
Now he's reuniting with the banker who helped execute some of those deals.
"As the leading pure-play outpatient medical REIT, Healthcare Realty has the best-in-class platform to capitalize on favorable industry trends," Gabbay said in his first public comments.
Healthcare Realty currently trades at approximately 10x FFO—six turns below its ten-year average and well below healthcare REIT peers. Whether the Healthpeak reunion can close that gap will be the ultimate test of this high-stakes executive shuffle.