Dec 31, 2023

Healthcare Realty Q4 2023 Earnings Report

Announced results for the fourth quarter ended December 31, 2023.

Key Takeaways

Healthcare Realty Trust reported a net loss attributable to common stockholders of $(40.5) million, or $(0.11) per diluted common share, for the quarter ended December 31, 2023. Normalized FFO for the three months ended December 31, 2023 totaled $150.7 million, or $0.39 per diluted common share. Merger Combined Same Store cash NOI for the fourth quarter increased 2.7% over the prior year.

Net loss attributable to common stockholders was $(40.5) million or $(0.11) per diluted common share.

Normalized FFO per share totaled $0.39.

Merger Combined Same Store cash NOI increased 2.7% over the prior year.

Multi-tenant portfolio had sequential occupancy improvement of 175,000 square feet, or 53 basis points.

Total Revenue
$330M
Previous year: $338M
-2.3%
EPS
$0.39
Previous year: $0.42
-7.1%
Occupancy Rate
85.2%
Previous year: 89.3%
-4.6%
Gross Profit
$29M
Previous year: $221M
-86.9%
Cash and Equivalents
$25.7M
Previous year: $61M
-57.8%
Free Cash Flow
$127M
Total Assets
$12.6B
Previous year: $13.8B
-8.8%

Healthcare Realty

Healthcare Realty

Healthcare Realty Revenue by Segment

Forward Guidance

The Company's 2024 guidance range represents the in-place portfolio as of February 16, 2024, and does not include any assumptions for prospective acquisitions, joint venture seed portfolios or other related balance sheet activities that have not closed unless otherwise noted.

Positive Outlook

  • Multi-tenant cash NOI 3.5% to 4.75% growth
  • Single-tenant cash NOI 0.5% to 1.5% growth
  • Return to run-rate Performance based compensation
  • January 2024 expiration of 1.21% Interest rate swap maturity
  • Expected normalized FFO $584,500 to $604,000

Challenges Ahead

  • Straight-line rent
  • Interest rate swap maturity
  • Re/development and other capital funding $150-$250 million of dispositions
  • Expected normalized FFO per share $1.52 to $1.58
  • The Company's guidance does not contemplate impacts from gains or losses from dispositions, potential impairments, or debt extinguishment costs, if any.

Revenue & Expenses

Visualization of income flow from segment revenue to net income