For the quarter ended March 2025, Healthcare Realty Trust (HR) reported revenue of $298.98 million, down 8.5% over the same period last year. EPS came in at $0.39, compared to -$0.82 in the year-ago quarter.The reported revenue represents a surprise of -1.56% over the Zacks Consensus Estimate of $303.7 million. With the consensus EPS estimate being $0.39, the company has not delivered EPS surprise.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

分组1 - Healthcare Realty Trust (HR) reported quarterly funds from operations (FFO) of $0.39 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $298.98 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.56%, compared to $326.81 million in the same quarter last year [2] - Over the last four quarters, Healthcare Realty Trust has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed, losing about 8.4% since the beginning of the year, while the S&P 500 declined by 5.3% [3] - The current consensus FFO estimate for the coming quarter is $0.40 on revenues of $302.85 million, and for the current fiscal year, it is $1.59 on revenues of $1.22 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - Net loss attributable to common stockholders for Q1 2025 was $(44.9) million or $(0.13) per diluted share[6] - Net loss attributable to common stockholders for Q1 2025 was $(44,873), compared to $(106,846) in Q4 2024, showing an improvement of approximately 58%[27] - Net loss for Q1 2025 was ($45,389), an improvement from ($108,212) in Q4 2024[99] - EBITDA for Q1 2025 was $167,829, significantly higher than $117,376 in Q4 2024[99] - Total Cash NOI for Q1 2025 was $182,598,000, with same store NOI at $171,943,000[102] Revenue and Income - Rental income for Q1 2025 was $288,857, down from $300,065 in Q4 2024, a decrease of about 0.7%[27] - Total cash NOI for Q1 2025 was $182,098, a decrease of 9.1% compared to Q4 2024 and a decrease from $200,378 in Q1 2024[82] - Same store cash NOI increased by 2.3% year-over-year, reaching $171,942 in Q1 2025[86] - The company reported a year-over-year revenue increase of 3.0%, with base revenue rising by 2.8%[86] - The average revenue per occupied square foot increased by 2.0% year-over-year, reaching $36.75 in Q1 2025[86] Funds from Operations (FFO) - Normalized FFO per share for the quarter was $0.39, with a year-over-year cash NOI increase of 2.3%[8] - The company reaffirmed its 2025 guidance for normalized FFO per share between $1.56 and $1.60, with Q1 actual at $0.39[10] - Funds from operations (FFO) for Q1 2025 increased to $123,774 thousand, compared to $105,642 thousand in Q4 2024, representing a 17.4% growth[31] - Normalized FFO for Q1 2025 was $137,722 thousand, slightly down from $143,414 thousand in Q4 2024, indicating a 3.8% decrease[31] Occupancy and Leasing Activity - Same store occupancy increased to 89.3% from 89.2% in Q4 2024, with tenant retention rising to 84.8%[8] - The company signed new leases totaling 370,000 square feet in Q1 2025, with total leasing activity of 1,450,000 square feet across 377 leases[8] - The average occupancy rate for the total portfolio was 88.3%, slightly down from 88.4% in Q4 2024 but up from 87.8% in Q1 2024[83] - The MOB tenant retention rate was 84.8%, indicating strong tenant stability[77] Debt and Financial Ratios - The run rate net debt to adjusted EBITDA was 6.4 times, with net debt to enterprise value at 45.1%[14] - Total debt as of March 31, 2025, is $4,953,219, with net debt at $4,927,497[44] - The leverage ratio is 39.3%, well below the maximum requirement of 60%[46] - Fixed charge coverage ratio stands at 2.8x, exceeding the minimum requirement of 1.50x[46] - Net debt to adjusted EBITDA ratio for Q1 2025 was 6.5x, compared to 6.4x in Q4 2024[99] Assets and Equity - As of March 31, 2025, the company had an enterprise value of $10.9 billion and a market capitalization of $6.0 billion[14] - Total assets decreased to $10,496,269 from $10,650,923 in the previous quarter, representing a decline of approximately 1.45%[24] - Total stockholders' equity decreased to $5,078,270 from $5,234,861 in the previous quarter, a decline of approximately 2.97%[24] - The company has a total of $11,668,609 in consolidated unencumbered assets[47] Dividends and Shareholder Returns - A common stock cash dividend of $0.31 per share will be paid on May 23, 2025[7] - Total shares outstanding as of March 31, 2025, were 355,143,647[108] Development and Redevelopment Projects - Recently completed development projects total 325,077 square feet with an occupancy rate of 61% and a projected stabilized yield of 7.0%-8.5%[57] - Active major redevelopment projects encompass 647,570 square feet, achieving an occupancy rate of 79% and a projected stabilized yield of 9.0%-12.0%[57] - The total active major re/development projects amount to 972,647 square feet, with an overall occupancy rate of 73% and a total cost budget of $259 million[57] - The company has a projected stabilization period post-completion of 12 to 36 months for its development projects[57] Market and Property Overview - The company has a total of 31,718,533 square feet across 648 properties, with 93.3% of the space being wholly owned[58] - The cumulative percentage of net operating income (NOI) from the top markets includes Dallas (9.1%), Seattle (6.0%), and Charlotte (4.9%)[58] - The company holds 472 multi-tenant properties totaling 28,813,310 square feet, which accounts for 75.3% of the total square footage[59] - The total investment across all properties is $12,132,212 thousand, with a quarterly cash NOI of $182,315 thousand[59] Guidance and Projections - Same store cash NOI growth guidance for 2025 is between 3.00% and 3.75%, with Q1 2025 actual growth at 2.3%[111] - The company anticipates asset sales and joint venture contributions between $400,000,000 and $500,000,000 for 2025[111]

Core Points - Healthcare Realty Trust reported a net loss attributable to common stockholders of $(44.9) million, or $(0.13) per diluted common share for Q1 2025 [1][19] - The company declared a quarterly dividend of $0.31 per share, payable on May 23, 2025 [3] - The company reaffirmed its earnings per share guidance for 2025, with a range of $(0.28) to $(0.20) [4] Leasing - Portfolio leasing activity in Q1 2025 totaled 1,450,000 square feet across 377 leases, including 1,002,000 square feet of renewals and 448,000 square feet of new and expansion leases [5] - The company signed new leases totaling 370,000 square feet in the first quarter [5] Same Store Metrics - Same store occupancy increased to 89.3% as of the end of Q1 2025, up from 89.2% in Q4 2024 [5] - Tenant retention improved to 84.8% in Q1 2025, compared to 81.6% in Q4 2024 [5] Balance Sheet - Total assets decreased to $10.5 billion in Q1 2025 from $10.7 billion in Q4 2024 [14][15] - Total liabilities remained relatively stable at $5.3 billion in Q1 2025, compared to $5.3 billion in Q4 2024 [15] Leadership - Peter A. Scott was appointed as President & CEO effective April 15, 2025, succeeding Connie Moore, who served as Interim President and CEO [5] Dividend - The company will pay a cash dividend of $0.31 per share on May 23, 2025, to Class A common stockholders of record on May 12, 2025 [3] Guidance - The company provided guidance for 2025, with expected earnings per share ranging from $(0.28) to $(0.20) and NAREIT FFO per share between $1.44 and $1.48 [4]

Financial Performance - Rental income decreased to $288,857,000 in Q1 2025 from $318,076,000 in Q1 2024, a decline of approximately 9.1%[11] - Net loss attributable to common stockholders was $44,873,000 in Q1 2025 compared to $310,836,000 in Q1 2024, representing a significant reduction of 85.5%[11] - Comprehensive loss attributable to common stockholders was $50,827,000 in Q1 2025, down from $295,304,000 in Q1 2024, a decrease of 82.8%[12] - Revenue for the three months ended March 31, 2025, was $298,977 thousand, down from $326,805 thousand in the same period of 2024, representing a decrease of approximately 8.5%[97] - Net loss for the three months ended March 31, 2025, was $45,389 thousand, significantly improved from a net loss of $315,220 thousand in Q1 2024[97] Cash Flow and Operating Activities - Net cash provided by operating activities was $47,788,000 in Q1 2025, compared to $76,152,000 in Q1 2024, a decline of 37.2%[14] - The company reported a net cash provided by operating activities of $47,788 for Q1 2025, down from $76,152 in Q1 2024[14] Expenses and Cost Management - Total expenses decreased to $280,473,000 in Q1 2025 from $314,379,000 in Q1 2024, a reduction of approximately 10.8%[11] - Interest expense decreased to $54,812,000 in Q1 2025 from $61,054,000 in Q1 2024, a decrease of about 10.5%[11] - Significant segment expenses totaled $103,887 thousand in Q1 2025, a decrease from $111,269 thousand in Q1 2024, reflecting a reduction of about 6.6%[96] - Property taxes decreased from $32,929 thousand in Q1 2024 to $28,810 thousand in Q1 2025, a reduction of approximately 12.8%[96] - Personnel expenses remained relatively stable, decreasing slightly from $24,619 thousand in Q1 2024 to $24,379 thousand in Q1 2025[96] Real Estate and Investments - As of March 31, 2025, the Company had gross investments of approximately $11.8 billion in 587 consolidated real estate properties[15] - The Company's consolidated real estate properties total approximately 34.3 million square feet, with leasing and property management services provided to 92% of its portfolio[15] - The Company recognized real estate impairments totaling $10.2 million during the three months ended March 31, 2025, due to completed and planned disposition activity[33] - The Company had three consolidated variable interest entities (VIEs) as of March 31, 2025, with total assets of $106.9 million and total liabilities of $67.8 million[25] - The Company reported total dispositions of real estate assets amounting to $28.1 million for the three months ended March 31, 2025, with a net gain of $(5.4) million[57] Financing and Debt - The Company had $1.4 billion available to be drawn on its $1.5 billion Unsecured Credit Facility as of March 31, 2025[67] - As of March 31, 2025, the Company had total notes and bonds payable amounting to $4.73 billion, an increase from $4.66 billion as of December 31, 2024[66] - The carrying value of notes and bonds payable as of March 31, 2025, was $4,732.6 million, with a fair value of $4,670.1 million[91] - The Company had 15 outstanding interest rate derivatives designated as cash flow hedges with a total amount of $1.075 billion and a weighted average rate of 3.92%[72] Shareholder Returns and Equity - The company paid dividends of $108,809,000 in Q1 2025, compared to $118,269,000 in Q1 2024, a decrease of approximately 7.8%[14] - The Company declared and paid common stock dividends totaling $0.31 per share during the three months ended March 31, 2025[81] - The Company authorized a stock repurchase of up to $300.0 million, with $237.0 million remaining as of March 31, 2025[82] - The Company granted non-vested stock awards with a total fair value of $7.9 million during the first quarter of 2025, consisting of 477,226 shares[86] Joint Ventures and Partnerships - The Company had a weighted average ownership interest of approximately 30% in 63 real estate properties held in unconsolidated joint ventures[15] - The Company’s investment in unconsolidated joint ventures decreased to $470.4 million as of March 31, 2025, from $473.1 million at the beginning of the period[55] - The Company’s equity income from unconsolidated joint ventures was $1,000 for the three months ended March 31, 2025, compared to a loss of $(422,000) for the same period in 2024[55] Asset Management - The Company had two properties classified as assets held for sale, with a net value of $6.4 million, down from $12.3 million as of December 31, 2024[59] - The Company recognized an allowance for credit losses of $16.8 million as of March 31, 2025, which includes approximately $16.3 million of principal and $0.5 million of interest[40] - The fair value of real estate notes receivable as of March 31, 2025, was $110.3 million, down from $122.4 million as of December 31, 2024[91] Future Commitments - Future lease payments under non-cancelable operating leases as of March 31, 2025, total $4.6 billion, with the largest payment of $1.6 billion due in 2030 and thereafter[62] - The company had total undiscounted lease payments of $4,599,481 thousand as of March 31, 2025, with future payments scheduled through 2030 and beyond[62]

Group 1 - The investment group High Yield Landlord, led by Jussi Askola, provides real-time insights into a REIT portfolio, including buy/sell alerts and direct access to analysts [2] - Jussi Askola is the President of Leonberg Capital, which specializes in consulting hedge funds and private equity firms on REIT investing, and has a strong academic background in the field [2] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1]

Core Viewpoint - Healthcare Realty Trust has appointed Peter A. Scott as the new President and CEO, effective April 15, 2025, following a thorough search process [1][4]. Company Leadership - Peter A. Scott has served as CFO of Healthpeak Properties, Inc. since 2017, managing approximately $25 billion in assets focused on healthcare real estate [2][5]. - Connie Moore, who has been Interim President and CEO since November 2024, will continue to serve on the Board after transitioning out of the interim role [3]. Board's Perspective - Glenn Rufrano, chair of the Board's CEO search committee, expressed confidence in Scott's leadership and industry relationships, emphasizing his ability to build on Healthcare Realty's strong foundation [4]. - Thomas N. Bohjalian, Independent Chair of the Board, highlighted Scott's experience in corporate strategy and capital allocation, thanking Moore for her interim leadership [4]. Scott's Vision - Peter A. Scott expressed enthusiasm for leading Healthcare Realty, noting the company's strong outpatient medical real estate platform and favorable market trends [4]. Company Overview - Healthcare Realty is a REIT specializing in medical outpatient buildings, with a portfolio of over 650 properties totaling more than 38 million square feet across 15 growth markets [8].

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Group 1 - Healthcare Realty Trust Incorporated will participate in Citi's 2025 Global Property CEO Conference on March 3 – 4, 2025, and has published an updated investor presentation ahead of the event [1] - The company has partially collected rent payments from Prospect Medical for January and February 2025, totaling $0.4 million, following Prospect Medical's Chapter 11 bankruptcy filing on January 11, 2025 [2] - Prospect Medical leases 81,000 square feet from Healthcare Realty, contributing approximately $2.9 million in annual revenue, but the company cannot assure recovery of additional unpaid rent or timely reletting of space related to any leases rejected in bankruptcy [2] Group 2 - Healthcare Realty is a real estate investment trust (REIT) that specializes in owning and operating medical outpatient buildings, primarily located around leading hospital campuses [3] - The company has a portfolio of over 650 properties totaling 38.4 million square feet, concentrated in 15 growth markets [3]

Group 1 - REITs and real estate have been significantly impacted by rising interest rates, inflation, and changes in lifestyle over the past few years [1] - The last five years have seen an unusual amount of volatility in the real estate sector [1]