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Mar 31
Healthcare Realty Q1 2025 Earnings Report
Healthcare Realty reported a decrease in revenue and net loss, with a significant reduction in impairment charges compared to the prior year.
Key Takeaways
Healthcare Realty Trust Incorporated reported a net loss of $45.389 million for the three months ended March 31, 2025, an improvement from a net loss of $315.220 million in the prior year. Total revenues decreased to $298.977 million from $326.805 million, primarily due to dispositions. The company's EPS was -$0.13, consistent with the prior year.
Net loss significantly improved to $45.389 million from $315.220 million year-over-year.
Total revenues decreased by 8.5% to $298.977 million, mainly due to property dispositions.
Impairment of real estate properties and credit loss reserves decreased substantially to $12.081 million from $15.937 million.
The company recognized gains on sales of real estate properties and other assets of $2.904 million, compared to $0.022 million in the prior year.
Healthcare Realty
Healthcare Realty
Healthcare Realty Revenue by Segment
Revenue by Segment
Rental Income Revenue
CapyFin.comInterest Income Revenue
CapyFin.comOther Operating Revenue
CapyFin.com Forward Guidance
The company expects to continue to meet its liquidity needs through cash flows from operations and its unsecured credit facility. Management believes these sources are adequate to satisfy cash requirements, including funding additional investments, paying dividends, and funding debt service.
Positive Outlook
- Company expects cash flows from operations to generate sufficient cash flows to fund dividends for the full year 2025.
- The company has $1.4 billion available to be drawn on its unsecured credit facility.
- The company expects to retain 75% to 90% of tenants upon lease expiration.
- The majority of expiring leases are for space in buildings on or adjacent to hospital campuses, indicating stable demand.
- The company's leases allow for significant recovery of operating expenses, mitigating cost increases.
Challenges Ahead
- Rising interest rates and increased volatility in capital markets could adversely impact the company's cost and availability of debt and equity capital.
- Limited availability and increases in the cost of capital could hinder the company's ability to finance operations and acquire/develop properties.
- Increased interest rates may result in less liquid property markets, limiting the company's ability to sell assets or obtain joint venture capital.
- The company cannot assure that sources of funds will be available at a time and upon terms acceptable to meet liquidity needs.
- The company's results of operations have been and will continue to be impacted negatively by the Steward Health and Prospect Medical bankruptcies.