1Q2025 Supplemental Information FURNISHED AS OF MAY 1, 2025 - UNAUDITED FORWARD LOOKING STATEMENTS & RISK FACTORS This Supplemental Information report contains disclosures that are "forward-looking statements." 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 such as "may," "will," "expect," "believe," "anticipate," "target," "intend," "plan," "estimate," "project," "continue," "should," "could," "budget" and ...

Financial Data and Key Metrics Changes - Normalized FFO per share for Q1 2025 was $0.39, aligning with expectations and marking a strong start to the year [22] - Same store cash NOI growth was 2.3%, impacted by higher operating expenses and weather volatility, with expectations for acceleration in growth for the remainder of the year [22][23] - Net debt to adjusted EBITDA remained unchanged at 6.4 times, with expectations to decrease to a range of 6 to 6.25 times as the year progresses [24] Business Line Data and Key Metrics Changes - Same store occupancy at the end of Q1 was 89.3%, with expectations for sequential growth throughout 2025 [11] - The company commenced nearly 1,500,000 square feet of new and renewal leases during the quarter, with a solid signed non-occupied pipeline of over 630,000 square feet [17][20] - Tenant retention improved by over 300 basis points to almost 85%, contributing to the slight uptick in occupancy [20] Market Data and Key Metrics Changes - The demand for outpatient medical space remains robust, with health systems experiencing improving revenue and margin trends, driving further growth and space needs [20] - The company’s on-campus portfolio received an A+ score in a recent industry research piece, indicating a resilient outpatient portfolio compared to peers [20] Company Strategy and Development Direction - The new CEO emphasized a focus on leasing, portfolio optimization, balance sheet improvement, organizational efficiency, and financial discipline as initial strategic priorities [11][14] - The company plans to exit markets with limited scale and focus on selling assets rather than contributing them to joint ventures [13][31] - The dividend will be an output of the strategic plan, with discussions ongoing at the Board level regarding its future [16][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of outpatient medical real estate, with muted new supply and steadily increasing demand [7] - The company anticipates occupancy growth throughout 2025, with a target of 75 to 125 basis points of absorption by year-end [21] - Management is cautious about potential federal healthcare budget cuts but noted that outpatient medical assets may benefit indirectly from such changes [45] Other Important Information - The company maintained its dividend at $0.31 per share for the quarter, with discussions ongoing regarding its future based on earnings clarity [16] - The company sold four buildings for $28 million in Q1, with plans for further dispositions as part of its strategy [23] Q&A Session Summary Question: Did the areas of focus listed by the new CEO represent a priority order? - The CEO indicated that while not in perfect order of priority, portfolio optimization and deleveraging are immediate focuses, while leasing improvements may take two to three years [30] Question: How does the company view the joint venture model? - The CEO expressed a preference for maintaining existing joint ventures but emphasized the need to sell assets rather than contribute more to these ventures [31] Question: Is the current guidance for 2025 confirmed? - The CEO reaffirmed the guidance after reviewing the 2025 forecast, indicating comfort with the numbers presented [35] Question: How will dispositions impact earnings and dividend coverage? - The CEO acknowledged that while there may be a negative impact from asset sales, efforts are being made to offset dilution through efficiencies and leasing upside [104][105] Question: What is the outlook for rent collection from tenants? - The CFO reported full rent collection from a key tenant for February, March, and April, indicating stability despite ongoing bankruptcy processes [62] Question: How does the company plan to utilize retained cash flow? - The CEO highlighted redevelopment opportunities as a priority for retained cash flow, aiming for higher returns on reinvested capital [115]

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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