Jun 30, 2024

Healthcare Realty Q2 2024 Earnings Report

Healthcare Realty's financial performance was marked by a net loss, offset by progress in capital allocation and operational efficiency.

Key Takeaways

Healthcare Realty Trust reported a net loss attributable to common stockholders of $(143.8) million, or $(0.39) per diluted common share, for the second quarter ended June 30, 2024. Normalized FFO per share totaled $0.38. The company generated $400 million from JV and asset sale transactions and repurchased 18.5 million shares. Multi-tenant absorption reached 183,000 square feet year-to-date, and new leasing momentum remained strong with 432,000 square feet of new leases signed.

Generated approximately $400 million of proceeds from JV and asset sale transactions through the second quarter.

Repurchased 18.5 million shares to date, totaling $294.5 million.

Delivered multi-tenant absorption of 183,000 square feet year-to-date, or 55 basis points.

Signed new leases totaling approximately 432,000 square feet in the quarter.

Total Revenue
$316M
Previous year: $338M
-6.5%
EPS
$0.38
Previous year: $0.39
-2.6%
Occupancy Rate
87.6%
Previous year: 89%
-1.6%
Gross Profit
$25.1M
Previous year: $213M
-88.2%
Cash and Equivalents
$41.8M
Previous year: $35.9M
+16.3%
Free Cash Flow
$168M
Total Assets
$11.8B
Previous year: $13.4B
-11.9%

Healthcare Realty

Healthcare Realty

Healthcare Realty Revenue by Segment

Forward Guidance

The Company affirms its 2024 Normalized FFO per share guidance.

Positive Outlook

  • Activities outlined in the Components of Expected FFO on page 30 of the Supplemental Information
  • Completed share repurchases and expected debt repayment from JV and asset sale transactions. The partial-year net accretion is expected to be approximately $0.01 per share of normalized FFO in 2024
  • Seasonal utilities are expected to increase by approximately $2.0 million in the third quarter
  • Previously disclosed single-tenant vacate in the third quarter is expected to reduce rental revenue by $0.6 million in the third quarter and an additional $0.3 million in the fourth quarter
  • Steward Health rental income reduction of $3.6 million, comprised of $3.0 million of second quarter revenue reserves and loss of $0.6 million of straight-line rent income for the second through the fourth quarter

Revenue & Expenses

Visualization of income flow from segment revenue to net income