We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Healthcare Realty Trust Incorporated | NYSE:HR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.22 | 1.37% | 16.25 | 16.24 | 15.92 | 16.11 | 5,856,192 | 00:17:01 |
(Healthcare Realty Trust Incorporated) | |||||||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Office and Zip Code) | (Registrant’s telephone number, including area code) | ||||||||||||||||||||||||||||||||||
www.healthcarerealty.com | ||
(Internet address) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Healthcare Realty Trust Incorporated | Emerging growth company |
Healthcare Realty Trust Incorporated | ☐ |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits. |
99.1 | |||||
99.2 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Healthcare Realty Trust Incorporated | |||||||||||
Date: November 3, 2023 | By: | /s/ J. Christopher Douglas | |||||||||
Name: J. Christopher Douglas | |||||||||||
Title: Executive Vice President - Chief Financial Officer |
HEALTHCAREREALTY.COM | PAGE 1 OF 7 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 2 OF 7 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 3 OF 7 |
Consolidated Balance Sheets | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
ASSETS | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
Real estate properties | |||||||||||||||||
Land | $1,387,821 | $1,424,453 | $1,412,805 | $1,439,798 | $1,449,550 | ||||||||||||
Buildings and improvements | 11,004,195 | 11,188,821 | 11,196,297 | 11,332,037 | 11,439,797 | ||||||||||||
Lease intangibles | 890,273 | 922,029 | 929,008 | 959,998 | 968,914 | ||||||||||||
Personal property | 12,686 | 12,615 | 11,945 | 11,907 | 11,680 | ||||||||||||
Investment in financing receivables, net | 120,975 | 121,315 | 120,692 | 120,236 | 118,919 | ||||||||||||
Financing lease right-of-use assets | 82,613 | 83,016 | 83,420 | 83,824 | 79,950 | ||||||||||||
Construction in progress | 85,644 | 53,311 | 42,615 | 35,560 | 43,148 | ||||||||||||
Land held for development | 59,871 | 78,411 | 69,575 | 74,265 | 73,321 | ||||||||||||
Total real estate investments | 13,644,078 | 13,883,971 | 13,866,357 | 14,057,625 | 14,185,279 | ||||||||||||
Less accumulated depreciation and amortization | (2,093,952) | (1,983,944) | (1,810,093) | (1,645,271) | (1,468,736) | ||||||||||||
Total real estate investments, net | 11,550,126 | 11,900,027 | 12,056,264 | 12,412,354 | 12,716,543 | ||||||||||||
Cash and cash equivalents | 24,668 | 35,904 | 49,941 | 60,961 | 57,583 | ||||||||||||
Assets held for sale, net | 57,638 | 151 | 3,579 | 18,893 | 185,074 | ||||||||||||
Operating lease right-of-use assets | 323,759 | 333,224 | 336,112 | 336,983 | 321,365 | ||||||||||||
Investments in unconsolidated joint ventures | 325,453 | 327,245 | 327,746 | 327,248 | 327,752 | ||||||||||||
Other assets, net and goodwill | 822,084 | 797,796 | 795,242 | 693,192 | 587,126 | ||||||||||||
Total assets | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 | $14,195,443 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
Liabilities | |||||||||||||||||
Notes and bonds payable | $5,227,413 | $5,340,272 | $5,361,699 | $5,351,827 | $5,570,139 | ||||||||||||
Accounts payable and accrued liabilities | 204,947 | 196,147 | 155,210 | 244,033 | 231,018 | ||||||||||||
Liabilities of properties held for sale | 3,814 | 222 | 277 | 437 | 10,644 | ||||||||||||
Operating lease liabilities | 273,319 | 278,479 | 279,637 | 279,895 | 268,840 | ||||||||||||
Financing lease liabilities | 74,087 | 73,629 | 73,193 | 72,939 | 72,378 | ||||||||||||
Other liabilities | 211,365 | 219,694 | 232,029 | 218,668 | 203,398 | ||||||||||||
Total liabilities | 5,994,945 | 6,108,443 | 6,102,045 | 6,167,799 | 6,356,417 | ||||||||||||
Redeemable non-controlling interests | 3,195 | 2,487 | 2,000 | 2,014 | — | ||||||||||||
Stockholders' equity | |||||||||||||||||
Preferred stock, $0.01 par value; 200,000 shares authorized | — | — | — | — | — | ||||||||||||
Common stock, $0.01 par value; 1,000,000 shares authorized | 3,809 | 3,808 | 3,808 | 3,806 | 3,806 | ||||||||||||
Additional paid-in capital | 9,597,629 | 9,595,033 | 9,591,194 | 9,587,637 | 9,586,556 | ||||||||||||
Accumulated other comprehensive income (loss) | 17,079 | 9,328 | (8,554) | 2,140 | 5,524 | ||||||||||||
Cumulative net income attributable to common stockholders | 1,069,327 | 1,137,171 | 1,219,930 | 1,307,055 | 1,342,819 | ||||||||||||
Cumulative dividends | (3,684,144) | (3,565,941) | (3,447,750) | (3,329,562) | (3,211,492) | ||||||||||||
Total stockholders' equity | 7,003,700 | 7,179,399 | 7,358,628 | 7,571,076 | 7,727,213 | ||||||||||||
Non-controlling interest | 101,888 | 104,018 | 106,211 | 108,742 | 111,813 | ||||||||||||
Total Equity | 7,105,588 | 7,283,417 | 7,464,839 | 7,679,818 | 7,839,026 | ||||||||||||
Total liabilities and stockholders' equity | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 | $14,195,443 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 4 OF 7 |
Consolidated Statements of Income | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Revenues | ||||||||||||||
Rental income | $333,335 | $329,680 | $324,093 | $329,399 | ||||||||||
Interest income | 4,264 | 4,233 | 4,214 | 4,227 | ||||||||||
Other operating | 4,661 | 4,230 | 4,618 | 4,436 | ||||||||||
342,260 | 338,143 | 332,925 | 338,062 | |||||||||||
Expenses | ||||||||||||||
Property operating | 131,639 | 125,395 | 122,040 | 117,009 | ||||||||||
General and administrative | 13,396 | 15,464 | 14,935 | 14,417 | ||||||||||
Acquisition and pursuit costs 1 | 769 | 669 | 287 | 92 | ||||||||||
Merger-related costs | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||
Depreciation and amortization | 182,989 | 183,193 | 184,479 | 185,275 | ||||||||||
336,243 | 309,051 | 326,596 | 327,570 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense before merger-related fair value | (55,637) | (54,780) | (52,895) | (52,464) | ||||||||||
Merger-related fair value adjustment | (10,667) | (10,554) | (10,864) | (11,979) | ||||||||||
Interest expense | (66,304) | (65,334) | (63,759) | (64,443) | ||||||||||
Gain on sales of real estate properties | 48,811 | 7,156 | 1,007 | 73,083 | ||||||||||
Gain on extinguishment of debt | 62 | — | — | 119 | ||||||||||
Impairment of real estate assets and credit loss reserves | (56,873) | (55,215) | (31,422) | (54,452) | ||||||||||
Equity(loss) gain from unconsolidated joint ventures | (456) | (17) | (780) | 89 | ||||||||||
Interest and other income (expense), net | 139 | 592 | 547 | (1,168) | ||||||||||
(74,621) | (112,818) | (94,407) | (46,772) | |||||||||||
Net loss | $(68,604) | $(83,726) | $(88,078) | $(36,280) | ||||||||||
Net loss attributable to non-controlling interests | 760 | 967 | 953 | 516 | ||||||||||
Net loss attributable to common stockholders | $(67,844) | $(82,759) | $(87,125) | $(35,764) | ||||||||||
Basic earnings per common share | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||
Diluted earnings per common share | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||
Weighted average common shares outstanding - basic | 378,925 | 378,897 | 378,840 | 378,617 | ||||||||||
Weighted average common shares outstanding - diluted 2 | 378,925 | 378,897 | 378,840 | 378,617 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 5 OF 7 |
Reconciliation of FFO, Normalized FFO and FAD 1,2,3 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Net loss attributable to common stockholders | $(67,844) | $(82,759) | $(87,125) | $(35,764) | ||||||||||
Net loss attributable to common stockholders per diluted share 3 | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||
Gain on sales of real estate assets | (48,811) | (7,156) | (1,007) | (73,083) | ||||||||||
Impairments of real estate assets | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||
Real estate depreciation and amortization | 185,143 | 185,003 | 186,109 | 186,658 | ||||||||||
Non-controlling loss from partnership units | (841) | (1,027) | (1,067) | (382) | ||||||||||
Unconsolidated JV depreciation and amortization | 4,421 | 4,412 | 4,841 | 4,020 | ||||||||||
FFO adjustments | $196,785 | $236,447 | $215,103 | $171,665 | ||||||||||
FFO adjustments per common share - diluted | $0.51 | $0.62 | $0.56 | $0.45 | ||||||||||
FFO | $128,941 | $153,688 | $127,978 | $135,901 | ||||||||||
FFO per common share - diluted | $0.34 | $0.40 | $0.33 | $0.35 | ||||||||||
Acquisition and pursuit costs | 769 | 669 | 287 | 92 | ||||||||||
Merger-related costs | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||
Lease intangible amortization | 213 | 240 | 146 | 137 | ||||||||||
Non-routine legal costs/forfeited earnest money received | — | 275 | — | 194 | ||||||||||
Debt financing costs | (62) | — | — | 625 | ||||||||||
Allowance for credit losses 4 | — | — | 8,599 | — | ||||||||||
Merger-related fair value adjustment | 10,667 | 10,554 | 10,864 | 11,979 | ||||||||||
Unconsolidated JV normalizing items 5 | 90 | 93 | 117 | 96 | ||||||||||
Normalized FFO adjustments | $19,127 | $(3,839) | $24,868 | $23,900 | ||||||||||
Normalized FFO adjustments per common share - diluted | $0.05 | $(0.01) | $0.06 | $0.06 | ||||||||||
Normalized FFO | $148,068 | $149,849 | $152,846 | $159,801 | ||||||||||
Normalized FFO per common share - diluted | $0.39 | $0.39 | $0.40 | $0.42 | ||||||||||
Non-real estate depreciation and amortization | 475 | 802 | 604 | 624 | ||||||||||
Non-cash interest amortization, net 6 | 1,402 | 1,618 | 682 | 2,284 | ||||||||||
Rent reserves, net | 442 | (54) | 1,371 | (100) | ||||||||||
Straight-line rent income, net | (8,470) | (8,005) | (8,246) | (9,873) | ||||||||||
Stock-based compensation | 2,556 | 3,924 | 3,745 | 3,573 | ||||||||||
Unconsolidated JV non-cash items 7 | (231) | (316) | (227) | (316) | ||||||||||
Normalized FFO adjusted for non-cash items | 144,242 | 147,818 | 150,775 | 155,993 | ||||||||||
2nd generation TI | (21,248) | (17,236) | (8,882) | (13,523) | ||||||||||
Leasing commissions paid | (8,907) | (5,493) | (7,013) | (7,404) | ||||||||||
Capital expenditures | (14,354) | (8,649) | (8,946) | (25,669) | ||||||||||
Total maintenance capex | (44,509) | (31,378) | (24,841) | (46,596) | ||||||||||
FAD | $99,733 | $116,440 | $125,934 | $109,397 | ||||||||||
Quarterly dividends | $119,456 | $119,444 | $119,442 | $119,323 | ||||||||||
FFO wtd avg common shares outstanding - diluted 8 | 383,428 | 383,409 | 383,335 | 383,228 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 6 OF 7 |
Reconciliation of Non-GAAP Measures | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED | ||
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 7 OF 7 |
3Q2023 | ||
Supplemental Information | ||
FURNISHED AS OF NOVEMBER 3, 2023 - UNAUDITED | ||
FORWARD LOOKING STATEMENTS & RISK FACTORS | ||
Table of Contents | ||
Highlights | |||||
Salient Facts | |||||
Corporate Information | |||||
Balance Sheet | |||||
Statements of Income | |||||
FFO, Normalized FFO, & FAD | |||||
Capital Funding & Commitments | |||||
Debt Metrics | |||||
Debt Covenants & Liquidity | |||||
Investment Activity | |||||
Re/development Activity | |||||
Portfolio | |||||
Health Systems | |||||
MOB Proximity to Hospital | |||||
Lease Maturity & Occupancy | |||||
Leasing Statistics | |||||
Merger Combined Same Store | |||||
NOI Reconciliations | |||||
EBITDA Reconciliations | |||||
Components of Net Asset Value | |||||
Components of Expected FFO |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 3 |
Highlights | ||
QUARTERLY HIGHLIGHTS | ||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 4 |
Salient Facts 1 | ||
AS OF SEPTEMBER 30, 2023 |
Properties | |||||||||||
697 properties totaling 41.0M SF | |||||||||||
73 markets in 35 states | |||||||||||
93% managed by Healthcare Realty | |||||||||||
92% outpatient medical facilities | |||||||||||
60% of NOI in Top 15 Markets | |||||||||||
Capitalization | |||||||||||
$11.4B enterprise value as of 9/30/23 | |||||||||||
$5.9B market capitalization as of 9/30/23 | |||||||||||
384.9M shares outstanding (including OP units) | |||||||||||
$0.31 quarterly dividend per share | |||||||||||
BBB/Baa2 S&P/Moody's | |||||||||||
48.3% net debt to enterprise value at 9/30/23 | |||||||||||
6.6x net debt to adjusted EBITDA | |||||||||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 5 |
Corporate Information | ||
EXECUTIVE OFFICERS | ||
Todd J. Meredith | ||
President and Chief Executive Officer | ||
John M. Bryant, Jr. | ||
Executive Vice President and General Counsel | ||
J. Christopher Douglas | ||
Executive Vice President and Chief Financial Officer | ||
Robert E. Hull | ||
Executive Vice President - Investments | ||
Julie F. Wilson | ||
Executive Vice President - Operations | ||
ANALYST COVERAGE | |||||
BMO Capital Markets | |||||
BTIG, LLC | |||||
Citi Research | |||||
Green Street Advisors, Inc. | |||||
J.P. Morgan Securities LLC | |||||
Jefferies LLC | |||||
KeyBanc Capital Markets Inc. | |||||
Raymond James & Associates | |||||
Scotiabank | |||||
Stifel, Nicolaus & Company, Inc. | |||||
Wedbush Securities | |||||
Wells Fargo Securities, LLC | |||||
BOARD OF DIRECTORS | |||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 6 |
Balance Sheet | ||
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ASSETS | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
Real estate properties | |||||||||||||||||
Land | $1,387,821 | $1,424,453 | $1,412,805 | $1,439,798 | $1,449,550 | ||||||||||||
Buildings and improvements | 11,004,195 | 11,188,821 | 11,196,297 | 11,332,037 | 11,439,797 | ||||||||||||
Lease intangibles | 890,273 | 922,029 | 929,008 | 959,998 | 968,914 | ||||||||||||
Personal property | 12,686 | 12,615 | 11,945 | 11,907 | 11,680 | ||||||||||||
Investment in financing receivables, net | 120,975 | 121,315 | 120,692 | 120,236 | 118,919 | ||||||||||||
Financing lease right-of-use assets | 82,613 | 83,016 | 83,420 | 83,824 | 79,950 | ||||||||||||
Construction in progress | 85,644 | 53,311 | 42,615 | 35,560 | 43,148 | ||||||||||||
Land held for development | 59,871 | 78,411 | 69,575 | 74,265 | 73,321 | ||||||||||||
Total real estate investments | 13,644,078 | 13,883,971 | 13,866,357 | 14,057,625 | 14,185,279 | ||||||||||||
Less accumulated depreciation and amortization | (2,093,952) | (1,983,944) | (1,810,093) | (1,645,271) | (1,468,736) | ||||||||||||
Total real estate investments, net | 11,550,126 | 11,900,027 | 12,056,264 | 12,412,354 | 12,716,543 | ||||||||||||
Cash and cash equivalents | 24,668 | 35,904 | 49,941 | 60,961 | 57,583 | ||||||||||||
Assets held for sale, net | 57,638 | 151 | 3,579 | 18,893 | 185,074 | ||||||||||||
Operating lease right-of-use assets | 323,759 | 333,224 | 336,112 | 336,983 | 321,365 | ||||||||||||
Investments in unconsolidated joint ventures | 325,453 | 327,245 | 327,746 | 327,248 | 327,752 | ||||||||||||
Other assets, net and goodwill | 822,084 | 797,796 | 795,242 | 693,192 | 587,126 | ||||||||||||
Total assets | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 | $14,195,443 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
Liabilities | |||||||||||||||||
Notes and bonds payable | $5,227,413 | $5,340,272 | $5,361,699 | $5,351,827 | $5,570,139 | ||||||||||||
Accounts payable and accrued liabilities | 204,947 | 196,147 | 155,210 | 244,033 | 231,018 | ||||||||||||
Liabilities of properties held for sale | 3,814 | 222 | 277 | 437 | 10,644 | ||||||||||||
Operating lease liabilities | 273,319 | 278,479 | 279,637 | 279,895 | 268,840 | ||||||||||||
Financing lease liabilities | 74,087 | 73,629 | 73,193 | 72,939 | 72,378 | ||||||||||||
Other liabilities | 211,365 | 219,694 | 232,029 | 218,668 | 203,398 | ||||||||||||
Total liabilities | 5,994,945 | 6,108,443 | 6,102,045 | 6,167,799 | 6,356,417 | ||||||||||||
Redeemable non-controlling interests | 3,195 | 2,487 | 2,000 | 2,014 | — | ||||||||||||
Stockholders' equity | |||||||||||||||||
Preferred stock, $0.01 par value; 200,000 shares authorized | — | — | — | — | — | ||||||||||||
Common stock, $0.01 par value; 1,000,000 shares authorized | 3,809 | 3,808 | 3,808 | 3,806 | 3,806 | ||||||||||||
Additional paid-in capital | 9,597,629 | 9,595,033 | 9,591,194 | 9,587,637 | 9,586,556 | ||||||||||||
Accumulated other comprehensive income (loss) | 17,079 | 9,328 | (8,554) | 2,140 | 5,524 | ||||||||||||
Cumulative net income attributable to common stockholders | 1,069,327 | 1,137,171 | 1,219,930 | 1,307,055 | 1,342,819 | ||||||||||||
Cumulative dividends | (3,684,144) | (3,565,941) | (3,447,750) | (3,329,562) | (3,211,492) | ||||||||||||
Total stockholders' equity | 7,003,700 | 7,179,399 | 7,358,628 | 7,571,076 | 7,727,213 | ||||||||||||
Non-controlling interest | 101,888 | 104,018 | 106,211 | 108,742 | 111,813 | ||||||||||||
Total equity | 7,105,588 | 7,283,417 | 7,464,839 | 7,679,818 | 7,839,026 | ||||||||||||
Total liabilities and stockholders' equity | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 | $14,195,443 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 7 |
Statements of Income | ||
DOLLARS IN THOUSANDS | ||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Revenues | ||||||||||||||
Rental income | $333,335 | $329,680 | $324,093 | $329,399 | ||||||||||
Interest income | 4,264 | 4,233 | 4,214 | 4,227 | ||||||||||
Other operating | 4,661 | 4,230 | 4,618 | 4,436 | ||||||||||
342,260 | 338,143 | 332,925 | 338,062 | |||||||||||
Expenses | ||||||||||||||
Property operating | 131,639 | 125,395 | 122,040 | 117,009 | ||||||||||
General and administrative | 13,396 | 15,464 | 14,935 | 14,417 | ||||||||||
Acquisition and pursuit costs 1 | 769 | 669 | 287 | 92 | ||||||||||
Merger-related costs | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||
Depreciation and amortization | 182,989 | 183,193 | 184,479 | 185,275 | ||||||||||
336,243 | 309,051 | 326,596 | 327,570 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense before merger-related fair value | (55,637) | (54,780) | (52,895) | (52,464) | ||||||||||
Merger-related fair value adjustment | (10,667) | (10,554) | (10,864) | (11,979) | ||||||||||
Interest expense | (66,304) | (65,334) | (63,759) | (64,443) | ||||||||||
Gain on sales of real estate properties | 48,811 | 7,156 | 1,007 | 73,083 | ||||||||||
Gain on extinguishment of debt | 62 | — | — | 119 | ||||||||||
Impairment of real estate assets and credit loss reserves | (56,873) | (55,215) | (31,422) | (54,452) | ||||||||||
Equity (loss) gain from unconsolidated joint ventures | (456) | (17) | (780) | 89 | ||||||||||
Interest and other income (expense), net | 139 | 592 | 547 | (1,168) | ||||||||||
(74,621) | (112,818) | (94,407) | (46,772) | |||||||||||
Net loss | $(68,604) | $(83,726) | $(88,078) | $(36,280) | ||||||||||
Net loss attributable to non-controlling interests | 760 | 967 | 953 | 516 | ||||||||||
Net loss attributable to common stockholders | $(67,844) | $(82,759) | $(87,125) | $(35,764) | ||||||||||
Basic earnings per common share | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||
Diluted earnings per common share | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||
Weighted average common shares outstanding - basic | 378,925 | 378,897 | 378,840 | 378,617 | ||||||||||
Weighted average common shares outstanding - diluted 2 | 378,925 | 378,897 | 378,840 | 378,617 | ||||||||||
STATEMENTS OF INCOME SUPPLEMENTAL INFORMATION | ||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Interest income | ||||||||||||||
Financing receivables | $2,002 | $2,053 | $2,144 | $2,203 | ||||||||||
Interest on mortgage and mezzanine loans | 2,262 | 2,180 | 2,070 | 2,024 | ||||||||||
Total | $4,264 | $4,233 | $4,214 | $4,227 | ||||||||||
Other operating income | ||||||||||||||
Parking income | $2,751 | $2,370 | $2,391 | $2,413 | ||||||||||
Management fee income | 1,552 | 1,597 | 1,973 | 1,803 | ||||||||||
Miscellaneous | 358 | 263 | 254 | 220 | ||||||||||
Total | $4,661 | $4,230 | $4,618 | $4,436 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 8 |
FFO, Normalized FFO, & FAD 1,2,3 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Net loss attributable to common stockholders | $(67,844) | $(82,759) | $(87,125) | $(35,764) | ||||||||||
Net loss attributable to common stockholders per diluted share 3 | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||
Gain on sales of real estate assets | $(48,811) | $(7,156) | $(1,007) | (73,083) | ||||||||||
Impairments of real estate assets | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||
Real estate depreciation and amortization | 185,143 | 185,003 | 186,109 | 186,658 | ||||||||||
Non-controlling loss from partnership units | (841) | (1,027) | (1,067) | (382) | ||||||||||
Unconsolidated JV depreciation and amortization | 4,421 | 4,412 | 4,841 | 4,020 | ||||||||||
FFO adjustments | $196,785 | $236,447 | $215,103 | $171,665 | ||||||||||
FFO adjustments per common share - diluted | $0.51 | $0.62 | $0.56 | $0.45 | ||||||||||
FFO | $128,941 | $153,688 | $127,978 | $135,901 | ||||||||||
FFO per common share - diluted | $0.34 | $0.40 | $0.33 | $0.35 | ||||||||||
Acquisition and pursuit costs | 769 | 669 | 287 | 92 | ||||||||||
Merger-related costs | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||
Lease intangible amortization | 213 | 240 | 146 | 137 | ||||||||||
Non-routine legal costs/forfeited earnest money received | — | 275 | — | 194 | ||||||||||
Debt financing costs | (62) | — | — | 625 | ||||||||||
Allowance for credit losses 4 | — | — | 8,599 | — | ||||||||||
Merger-related fair value adjustment | 10,667 | 10,554 | 10,864 | 11,979 | ||||||||||
Unconsolidated JV normalizing items 5 | 90 | 93 | 117 | 96 | ||||||||||
Normalized FFO adjustments | $19,127 | $(3,839) | $24,868 | $23,900 | ||||||||||
Normalized FFO adjustments per common share - diluted | $0.05 | $(0.01) | $0.06 | $0.06 | ||||||||||
Normalized FFO | $148,068 | $149,849 | $152,846 | $159,801 | ||||||||||
Normalized FFO per common share - diluted | $0.39 | $0.39 | $0.40 | $0.42 | ||||||||||
Non-real estate depreciation and amortization | 475 | 802 | 604 | 624 | ||||||||||
Non-cash interest amortization, net 6 | 1,402 | 1,618 | 682 | 2,284 | ||||||||||
Rent reserves, net | 442 | (54) | 1,371 | (100) | ||||||||||
Straight-line rent income, net | (8,470) | (8,005) | (8,246) | (9,873) | ||||||||||
Stock-based compensation | 2,556 | 3,924 | 3,745 | 3,573 | ||||||||||
Unconsolidated JV non-cash items 7 | (231) | (316) | (227) | (316) | ||||||||||
Normalized FFO adjusted for non-cash items | 144,242 | 147,818 | 150,775 | 155,993 | ||||||||||
2nd generation TI | (21,248) | (17,236) | (8,882) | (13,523) | ||||||||||
Leasing commissions paid | (8,907) | (5,493) | (7,013) | (7,404) | ||||||||||
Capital expenditures | (14,354) | (8,649) | (8,946) | (25,669) | ||||||||||
Total maintenance capex | (44,509) | (31,378) | (24,841) | (46,596) | ||||||||||
FAD | $99,733 | $116,440 | $125,934 | $109,397 | ||||||||||
Quarterly dividends and OP distributions | $119,456 | $119,444 | $119,442 | $119,323 | ||||||||||
FFO wtd avg common shares outstanding - diluted 8 | 383,428 | 383,409 | 383,335 | 383,228 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 9 |
Capital Funding & Commitments 1 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ACQUISITION AND RE/DEVELOPMENT FUNDING | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
Acquisitions 2 | $11,450 | $— | $31,500 | $26,388 | $91,253 | ||||||||||||
Re/development 3 | 30,945 | 32,068 | 16,928 | 23,372 | 31,546 | ||||||||||||
1st generation TI & acquisition capex 4 | 9,013 | 10,258 | 11,870 | 21,218 | 12,596 | ||||||||||||
MAINTENANCE CAPITAL EXPENDITURES FUNDING | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
2nd generation TI | $21,248 | $17,236 | $8,882 | $13,523 | $11,763 | ||||||||||||
Leasing commissions paid | 8,907 | 5,493 | 7,013 | 7,404 | 8,739 | ||||||||||||
Capital expenditures | 14,354 | 8,649 | 8,946 | 25,669 | 17,461 | ||||||||||||
$44,509 | $31,378 | $24,841 | $46,596 | $37,963 | |||||||||||||
% of Cash NOI | |||||||||||||||||
2nd generation TI | 10.4 | % | 8.3 | % | 4.2 | % | 6.4 | % | 5.5 | % | |||||||
Leasing commissions paid | 4.4 | % | 2.6 | % | 3.3 | % | 3.5 | % | 4.1 | % | |||||||
Capital expenditures | 7.0 | % | 4.2 | % | 4.3 | % | 12.1 | % | 8.1 | % | |||||||
21.8 | % | 15.1 | % | 11.8 | % | 22.0 | % | 17.7 | % | ||||||||
LEASING COMMITMENTS 5 | |||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | |||||||||||||
Renewals | |||||||||||||||||
Square feet | 625,762 | 638,587 | 949,285 | 623,363 | 632,690 | ||||||||||||
2nd generation TI/square foot/lease year | $1.76 | $1.64 | $1.84 | $1.90 | $1.66 | ||||||||||||
Leasing commissions/square foot/lease year | $1.48 | $1.19 | $0.87 | $0.78 | $1.03 | ||||||||||||
Renewal commitments as a % of annual net rent | 13.1 | % | 12.8 | % | 11.5 | % | 11.7 | % | 10.5 | % | |||||||
WALT (in months) 5 | 42.1 | 56.7 | 56.8 | 51.7 | 50.1 | ||||||||||||
New leases | |||||||||||||||||
Square feet | 344,524 | 205,565 | 274,344 | 297,340 | 262,904 | ||||||||||||
2nd generation TI/square foot/lease year | $5.57 | $7.11 | $4.44 | $6.25 | $4.84 | ||||||||||||
Leasing commissions/square foot/lease year | $1.81 | $1.40 | $0.83 | $1.49 | $1.39 | ||||||||||||
New lease commitments as a % of annual net rent | 32.1 | % | 45.0 | % | 21.6 | % | 36.2 | % | 28.1 | % | |||||||
WALT (in months) 5 | 85.8 | 81.3 | 84.7 | 72.7 | 87.1 | ||||||||||||
All | |||||||||||||||||
Square feet | 970,286 | 844,152 | 1,223,629 | 920,703 | 895,594 | ||||||||||||
Leasing commitments as a % of annual net rent | 22.6 | % | 21.7 | % | 14.7 | % | 21.0 | % | 16.9 | % | |||||||
WALT (in months) 5 | 57.6 | 62.7 | 63.1 | 58.4 | 61.0 | ||||||||||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 10 |
Debt Metrics1 | ||
DOLLARS IN THOUSANDS | ||
SUMMARY OF INDEBTEDNESS AS OF SEPTEMBER 30, 2023 | |||||||||||||||||||||||||||||
PRINCIPAL BALANCE | BALANCE 1 | MATURITY DATE | MONTHS TO MATURITY 2 | INTEREST EXPENSE | CONTRACTUAL INTEREST EXPENSE | CONTRACTUAL RATE | EFFECTIVE RATE | FAIR VALUE MERGER ADJUSTED | |||||||||||||||||||||
SENIOR NOTES | $250,000 | $249,391 | 5/1/2025 | 19 | $2,470 | $2,422 | 3.88 | % | 4.12 | % | |||||||||||||||||||
600,000 | 577,124 | 8/1/2026 | 34 | 7,119 | 5,250 | 3.50 | % | 4.94 | % | Y | |||||||||||||||||||
500,000 | 482,665 | 7/1/2027 | 45 | 5,737 | 4,688 | 3.75 | % | 4.76 | % | Y | |||||||||||||||||||
300,000 | 297,283 | 1/15/2028 | 52 | 2,783 | 2,718 | 3.63 | % | 3.85 | % | ||||||||||||||||||||
650,000 | 572,883 | 2/15/2030 | 77 | 7,563 | 5,038 | 3.10 | % | 5.30 | % | Y | |||||||||||||||||||
299,500 | 296,679 | 3/15/2030 | 78 | 1,928 | 1,796 | 2.40 | % | 2.72 | % | ||||||||||||||||||||
299,785 | 295,706 | 3/15/2031 | 90 | 1,593 | 1,538 | 2.05 | % | 2.25 | % | ||||||||||||||||||||
800,000 | 645,232 | 3/15/2031 | 90 | 8,234 | 4,000 | 2.00 | % | 5.13 | % | Y | |||||||||||||||||||
$3,699,285 | $3,416,963 | 62 | $37,427 | $27,450 | 2.97 | % | 4.43 | % | |||||||||||||||||||||
TERM LOANS | $350,000 | $349,711 | 7/20/2025 | 22 | $5,638 | $5,638 | SOFR + 1.05% | 6.30 | % | ||||||||||||||||||||
200,000 | 199,845 | 5/31/2026 | 32 | 3,222 | 3,222 | SOFR + 1.05% | 6.30 | % | |||||||||||||||||||||
150,000 | 149,606 | 6/1/2026 | 32 | 2,416 | 2,416 | SOFR + 1.05% | 6.30 | % | |||||||||||||||||||||
300,000 | 299,952 | 10/31/2026 | 37 | 4,833 | 4,833 | SOFR + 1.05% | 6.30 | % | |||||||||||||||||||||
200,000 | 199,467 | 7/1/2027 | 45 | 3,222 | 3,222 | SOFR + 1.05% | 6.30 | % | |||||||||||||||||||||
300,000 | 298,184 | 1/12/2028 | 51 | 4,833 | 4,833 | SOFR + 1.05% | 6.30 | % | |||||||||||||||||||||
$1,500,000 | $1,496,765 | 36 | $24,164 | $24,164 | 6.30 | % | |||||||||||||||||||||||
$1.5B CREDIT FACILITY | $236,000 | $236,000 | 10/31/2027 | 49 | $5,827 | $5,827 | SOFR + 0.95% | 6.24 | % | ||||||||||||||||||||
MORTGAGES | $77,907 | $77,685 | various | 21 | $788 | $831 | 4.20 | % | 4.21 | % | |||||||||||||||||||
$5,513,192 | $5,227,413 | 54 | $68,206 | $58,272 | 4.03 | % | 5.05 | % | $2,550,000 | ||||||||||||||||||||
Interest rate swaps | (5,315) | (5,315) | |||||||||||||||||||||||||||
Interest cost capitalization | (795) | — | |||||||||||||||||||||||||||
Unsecured credit facility fee & deferred financing costs | 2,292 | 954 | |||||||||||||||||||||||||||
Amortization of fair value of swap maturing January 2024 | 988 | — | 1.21 | % | 3.21 | % | Y | ||||||||||||||||||||||
Financing right-of-use asset amortization | 928 | — | |||||||||||||||||||||||||||
$66,304 | $53,911 |
DEBT MATURITIES SCHEDULE AS OF SEPTEMBER 30, 2023 | ||||||||||||||||||||
PRINCIPAL PAYMENTS | ||||||||||||||||||||
BANK LOANS | SENIOR NOTES | MORTGAGE NOTES | TOTAL | WA RATE | ||||||||||||||||
2023 | $7,155 | $7,155 | 4.46 | % | ||||||||||||||||
2024 | 25,473 | 25,473 | 4.39 | % | ||||||||||||||||
2025 | $350,000 | $250,000 | 16,375 | 616,375 | 5.26 | % | ||||||||||||||
2026 | 650,000 | 600,000 | 28,904 | 1,278,904 | 4.92 | % | ||||||||||||||
2027 | 436,000 | 500,000 | 936,000 | 5.07 | % | |||||||||||||||
2028 | 300,000 | 300,000 | 600,000 | 4.96 | % | |||||||||||||||
Thereafter | 2,049,285 | 2,049,285 | 2.41 | % | ||||||||||||||||
Total | $1,736,000 | $3,699,285 | $77,907 | $5,513,192 | 4.03 | % | ||||||||||||||
Fixed rate debt balance 3 | $1,000,000 | $3,699,285 | $77,907 | $4,777,192 | ||||||||||||||||
% fixed rate debt to net debt (as of 9/30) | 87.0 | % | ||||||||||||||||||
Company share of JV net debt | $12,570 | |||||||||||||||||||
INTEREST RATE SWAPS | ||||||||
MATURITY | AMOUNT | FIXED SOFR RATE | ||||||
January 2024 | 200,000 | 1.21 | % | |||||
May 2026 | 100,000 | 2.15 | % | |||||
June 2026 | 150,000 | 3.83 | % | |||||
December 2026 | 150,000 | 3.84 | % | |||||
June 2027 | 150,000 | 4.13 | % | |||||
December 2027 | 250,000 | 3.79 | % | |||||
As of 9/30/2023 | $1,000,000 | 3.17 | % | |||||
Subsequent activity: | ||||||||
May 2026 | 100,000 | 4.73 | % | |||||
June 2027 | 50,000 | 4.71 | % | |||||
December 2027 | 50,000 | 4.67 | % | |||||
As of 11/3/2023 | $1,200,000 | 3.43 | % |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 11 |
Debt Covenants & Liquidity1 | ||
DOLLARS IN THOUSANDS | ||
SELECTED FINANCIAL DEBT COVENANTS YEAR ENDED SEPTEMBER 30, 2023 2 | |||||||||||
CALCULATION | REQUIREMENT | PER DEBT COVENANTS | |||||||||
Revolving credit facility and term loan | |||||||||||
Leverage ratio | Total debt/total capital | Not greater than 60% | 38.3 | % | |||||||
Secured leverage ratio | Total secured debt/total capital | Not greater than 30% | 0.5 | % | |||||||
Unencumbered leverage ratio | Unsecured debt/unsecured real estate | Not greater than 60% | 39.4 | % | |||||||
Fixed charge coverage ratio | EBITDA/fixed charges | Not less than 1.50x | 3.1x | ||||||||
Unsecured coverage ratio | Unsecured EBITDA/unsecured interest | Not less than 1.75x | 3.1x | ||||||||
Asset investments | Unimproved land, JVs & mortgages/total assets | Not greater than 35% | 8.5 | % | |||||||
Senior Notes | |||||||||||
Incurrence of total debt | Total debt/total assets | Not greater than 60% | 38.2 | % | |||||||
Incurrence of debt secured by any lien | Secured debt/total assets | Not greater than 40% | 0.5 | % | |||||||
Maintenance of total unsecured assets | Unencumbered assets/unsecured debt | Not less than 150% | 259.2 | % | |||||||
Debt service coverage | EBITDA/interest expense | Not less than 1.5x | 3.2x | ||||||||
Other | |||||||||||
Net debt to adjusted EBITDA 3 | Net debt (debt less cash)/adjusted EBITDA | Not required | 6.6x | ||||||||
Net debt to enterprise value 4 | Net debt/enterprise value | Not required | 48.3 | % |
LIQUIDITY SOURCES | |||||
Cash | $24,668 | ||||
Unsecured credit facility availability | 1,264,000 | ||||
Consolidated unencumbered assets (gross) 5 | 13,496,752 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 12 |
Investment Activity | ||
DOLLARS IN THOUSANDS | ||
MOB ACQUISITION ACTIVITY | ||||||||||||||||||||||||||
MARKET | COUNT | MILES TO CAMPUS | ASSOCIATED HEALTH SYSTEM | CLOSING | SQUARE FEET | LEASED % | PURCHASE PRICE 1 | % OWNERSHIP | ||||||||||||||||||
Tampa, FL | 1 | 0.06 | BayCare Health | 3/10/2023 | 115,867 | 98 | % | $31,500 | 100 | % | ||||||||||||||||
Colorado Springs, CO | 1 | 1.30 | UC Health | 7/28/2023 | 42,770 | 94 | % | 11,450 | 100 | % | ||||||||||||||||
YTD total | 2 | 158,637 | 97 | % | $42,950 | 100 | % | |||||||||||||||||||
YTD average cap rate 2 | 6.5 | % |
DISPOSITIONS TO REPAY ASSET SALE TERM LOAN | |||||||||||||||||
LOCATION | TYPE | CLOSING | SQUARE FEET | LEASED % | SALE PRICE | ||||||||||||
Tampa, FL & Miami, FL 3 | MOB | 1/12/2023 | 224,037 | 100 | % | $93,250 | |||||||||||
Dallas, TX 4 | INPATIENT | 1/30/2023 | 36,691 | 100 | % | 19,210 | |||||||||||
Total | 260,728 | 100 | % | $112,460 | |||||||||||||
ADDITIONAL DISPOSITION ACTIVITY | |||||||||||||||||
LOCATION | TYPE | CLOSING | SQUARE FEET | LEASED % | SALE PRICE | ||||||||||||
St. Louis, MO | MOB | 2/10/2023 | 6,500 | 100 | % | $350 | |||||||||||
Los Angeles, CA | MOB | 3/23/2023 | 37,165 | 100 | % | 21,000 | |||||||||||
Los Angeles, CA 5 | MOB | 3/30/2023 | 147,078 | 99 | % | 75,000 | |||||||||||
Los Angeles, CA 6 | LAND | 5/12/2023 | - | — | % | 3,300 | |||||||||||
Albany, NY | MOB | 6/30/2023 | 40,870 | 96 | % | 10,000 | |||||||||||
Houston, TX | OFFICE | 8/2/2023 | 57,170 | 88 | % | 8,320 | |||||||||||
Atlanta, GA | MOB | 8/22/2023 | 55,195 | 100 | % | 25,142 | |||||||||||
Dallas, TX | INPATIENT | 9/15/2023 | 161,264 | 100 | % | 115,000 | |||||||||||
Houston, TX | MOB | 9/18/2023 | 52,040 | — | % | 250 | |||||||||||
Chicago, IL | MOB | 9/27/2023 | 104,912 | 100 | % | 59,950 | |||||||||||
Total | 662,194 | 91 | % | $318,312 | |||||||||||||
Average cap rate 7 | 6.8 | % |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 13 |
Re/development Activity | ||
DOLLARS IN THOUSANDS | ||
RE/DEVELOPMENT PROJECTS | |||||||||||||||||||||||
MARKET | ASSOCIATED HEALTH SYSTEM | SQUARE FEET | CURRENT LEASED % | BUDGET | COST TO COMPLETE | PROJECT START | ESTIMATED COMPLETION/INITIAL LEASE COMMENCEMENT | ||||||||||||||||
Active development | |||||||||||||||||||||||
Nashville, TN | Ascension | 106,194 | 50 | % | $44,000 | $4,811 | 2Q 2021 | 3Q 2023 | |||||||||||||||
Orlando, FL 1 | Advent Health | 156,566 | 78 | % | 65,000 | 35,621 | 1Q 2022 | 4Q 2024 | |||||||||||||||
Raleigh, NC | UNC REX Health | 120,694 | 29 | % | 52,600 | 26,632 | 2Q 2022 | 4Q 2024 | |||||||||||||||
Orlando, FL | Exalt Health | 45,000 | 100 | % | 25,900 | 22,106 | 1Q 2023 | 1Q 2025 | |||||||||||||||
Phoenix, AZ | HonorHealth | 101,000 | 80 | % | 54,000 | 38,774 | 2Q 2023 | 2Q 2025 | |||||||||||||||
Total development | 529,454 | 64 | % | $241,500 | $127,944 | ||||||||||||||||||
Projected stabilized yield - 6.5%-8.0% | |||||||||||||||||||||||
Estimated stabilization period post completion - 12 - 36 months | |||||||||||||||||||||||
Active redevelopment | |||||||||||||||||||||||
Washington, DC | Inova Health | 259,290 | 82 | % | $21,200 | $13,009 | 1Q 2022 | 2Q 2024 | |||||||||||||||
Houston, TX | HCA | 314,861 | 61 | % | 30,000 | 27,918 | 2Q 2023 | 4Q 2025 | |||||||||||||||
Charlotte, NC | Novant Health | 169,135 | 53 | % | 18,700 | 16,390 | 3Q 2023 | 1Q 2026 | |||||||||||||||
Washington, DC | Inova Health | 57,323 | 64 | % | 10,078 | 7,263 | 3Q 2023 | 1Q 2026 | |||||||||||||||
Total redevelopment | 800,609 | 66 | % | $79,978 | $64,580 | ||||||||||||||||||
Occupied % | 60 | % | |||||||||||||||||||||
Projected stabilized yield - 9.0%-12.0% | |||||||||||||||||||||||
Estimated stabilization period post completion - 12 - 36 months | |||||||||||||||||||||||
Total active re/development projects | 1,330,063 | 65 | % | $321,478 | $192,524 | ||||||||||||||||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 14 |
Portfolio 1,2 | ||
DOLLARS IN THOUSANDS | ||
MARKETS | |||||||||||||||||||||||||||||||||||||||||
WHOLLY OWNED COUNT | SQUARE FEET | WHOLLY OWNED | |||||||||||||||||||||||||||||||||||||||
MARKET | MSA RANK | MOB | INPATIENT | OFFICE | WHOLLY OWNED | JOINT VENTURES3 | TOTAL | % OF NOI | CUMULATIVE % OF NOI | ||||||||||||||||||||||||||||||||
Dallas, TX | 4 | 44 | 3,308,315 | 146,519 | 199,800 | 3,654,634 | 226,076 | 3,880,710 | 8.9 | % | 8.9 | % | |||||||||||||||||||||||||||||
Seattle, WA | 15 | 29 | 1,592,501 | 1,592,501 | 1,592,501 | 6.1 | % | 15.0 | % | ||||||||||||||||||||||||||||||||
Boston, MA | 11 | 18 | 964,945 | 964,945 | 964,945 | 4.6 | % | 19.6 | % | ||||||||||||||||||||||||||||||||
Houston, TX | 5 | 31 | 2,351,135 | 67,500 | 2,418,635 | 2,418,635 | 4.5 | % | 24.1 | % | |||||||||||||||||||||||||||||||
Los Angeles, CA | 2 | 21 | 1,034,336 | 63,000 | 104,377 | 1,201,713 | 702,453 | 1,904,166 | 4.3 | % | 28.4 | % | |||||||||||||||||||||||||||||
Denver, CO | 19 | 33 | 1,780,819 | 93,869 | 1,874,688 | 116,616 | 1,991,304 | 4.3 | % | 32.7 | % | ||||||||||||||||||||||||||||||
Charlotte, NC | 23 | 32 | 1,792,908 | 1,792,908 | 1,792,908 | 4.3 | % | 37.0 | % | ||||||||||||||||||||||||||||||||
Atlanta, GA | 8 | 27 | 1,423,141 | 1,423,141 | 1,423,141 | 3.8 | % | 40.8 | % | ||||||||||||||||||||||||||||||||
Miami, FL | 9 | 20 | 1,244,531 | 133,500 | 1,378,031 | 1,378,031 | 3.5 | % | 44.3 | % | |||||||||||||||||||||||||||||||
Nashville, TN | 35 | 12 | 1,135,678 | 108,691 | 1,244,369 | 1,244,369 | 2.9 | % | 47.2 | % | |||||||||||||||||||||||||||||||
Raleigh, NC | 41 | 28 | 1,109,582 | 1,109,582 | 1,109,582 | 2.8 | % | 50.0 | % | ||||||||||||||||||||||||||||||||
Phoenix, AZ | 10 | 35 | 1,512,304 | 1,512,304 | 1,512,304 | 2.8 | % | 52.8 | % | ||||||||||||||||||||||||||||||||
Austin, TX | 27 | 13 | 863,700 | 863,700 | 863,700 | 2.6 | % | 55.4 | % | ||||||||||||||||||||||||||||||||
Tampa. FL | 18 | 19 | 971,975 | 971,975 | 971,975 | 2.5 | % | 57.9 | % | ||||||||||||||||||||||||||||||||
Indianapolis, IN | 33 | 40 | 1,162,955 | 61,398 | 1,224,353 | 273,479 | 1,497,832 | 2.4 | % | 60.3 | % | ||||||||||||||||||||||||||||||
New York, NY | 1 | 15 | 704,415 | 704,415 | 704,415 | 2.0 | % | 62.3 | % | ||||||||||||||||||||||||||||||||
Orlando, FL | 22 | 8 | 359,477 | 186,998 | 546,475 | 546,475 | 1.9 | % | 64.2 | % | |||||||||||||||||||||||||||||||
San Francisco, CA | 13 | 6 | 452,666 | 452,666 | 110,865 | 563,531 | 1.8 | % | 66.0 | % | |||||||||||||||||||||||||||||||
Memphis, TN | 44 | 11 | 802,221 | 54,416 | 856,637 | 856,637 | 1.8 | % | 67.8 | % | |||||||||||||||||||||||||||||||
Chicago, IL | 3 | 6 | 607,845 | 607,845 | 607,845 | 1.8 | % | 69.6 | % | ||||||||||||||||||||||||||||||||
Other (53 markets) | 215 | 10,897,805 | 574,976 | 1,228,363 | 12,701,144 | 519,911 | 13,221,055 | 30.4 | % | 100.0 | % | ||||||||||||||||||||||||||||||
Total | 663 | 36,073,254 | 1,288,307 | 1,735,100 | 39,096,661 | 1,949,400 | 41,046,061 | 100.0 | % | ||||||||||||||||||||||||||||||||
Number of properties | 636 | 18 | 9 | 663 | 34 | 697 | |||||||||||||||||||||||||||||||||||
% of square feet | 92.3 | % | 3.3 | % | 4.4 | % | 100.0 | % | |||||||||||||||||||||||||||||||||
% multi-tenant | 85.7 | % | — | % | 60.4 | % | 81.7 | % | |||||||||||||||||||||||||||||||||
Investment | $12,373,395 | $511,375 | $485,680 | $13,370,450 | |||||||||||||||||||||||||||||||||||||
Quarterly cash NOI 1 | $179,631 | $9,528 | $7,062 | $196,221 | |||||||||||||||||||||||||||||||||||||
% of cash NOI | 91.5 | % | 4.9 | % | 3.6 | % | 100.0 | % |
BY BUILDING TYPE | |||||||||||||||||
WHOLLY OWNED | |||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | SUBTOTAL | JOINT VENTURE3 | TOTAL | |||||||||||||
Number of properties | 530 | 133 | 663 | 34 | 697 | ||||||||||||
Square feet | 31,957,299 | 7,139,362 | 39,096,661 | 1,949,400 | 41,046,061 | ||||||||||||
% of square feet | 77.9 | % | 17.4 | % | 95.3 | % | 4.7 | % | 100.0 | % | |||||||
Investment 1 | $10,503,116 | $2,867,334 | $13,370,450 | $358,015 | $13,728,465 | ||||||||||||
Quarterly cash NOI 1 | $149,875 | $46,346 | $196,221 | $4,692 | $200,913 | ||||||||||||
% of cash NOI | 74.6 | % | 23.1 | % | 97.7 | % | 2.3 | % | 100.0 | % |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 15 |
Health Systems 1 | ||
MOB PORTFOLIO | ||||||||||||||||||||||||||||||||
BUILDING SQUARE FEET | # OF BLDGS | LEASED BY HEALTH SYSTEM | % OF LEASED SF | # OF LEASES | ||||||||||||||||||||||||||||
HEALTH SYSTEM | SYSTEM RANK 2 | CREDIT RATING | ON/ADJACENT 3 | OFF-CAMPUS AFFILIATED 4 | TOTAL | % OF NOI | ||||||||||||||||||||||||||
HCA | 1 | BBB-/Baa3 | 2,267,969 | 779,288 | 3,047,257 | 46 | 8.7 | % | 784,226 | 2.5 | % | 131 | ||||||||||||||||||||
CommonSpirit | 4 | A-/Baa1 | 1,906,957 | 636,320 | 2,543,277 | 44 | 7.0 | % | 906,873 | 2.9 | % | 163 | ||||||||||||||||||||
Baylor Scott & White | 21 | AA-/Aa3 | 2,570,180 | 66,376 | 2,636,556 | 29 | 6.6 | % | 1,264,135 | 4.0 | % | 195 | ||||||||||||||||||||
Ascension Health | 3 | AA+/Aa2 | 2,156,369 | 97,551 | 2,253,920 | 24 | 5.7 | % | 924,075 | 2.9 | % | 145 | ||||||||||||||||||||
Advocate Health | 14 | AA/Aa3 | 790,317 | 496,198 | 1,286,515 | 20 | 4.0 | % | 1,125,820 | 3.6 | % | 95 | ||||||||||||||||||||
Tenet Healthcare Corporation | 6 | B+/B1 | 1,298,392 | 376,410 | 1,674,802 | 29 | 3.7 | % | 390,966 | 1.2 | % | 81 | ||||||||||||||||||||
Wellstar Health System | 75 | A+/A2 | 896,773 | 23,088 | 919,861 | 18 | 2.7 | % | 582,754 | 1.9 | % | 81 | ||||||||||||||||||||
UW Medicine (Seattle) | 91 | AA+/Aaa | 461,363 | 169,709 | 631,072 | 10 | 2.6 | % | 294,971 | 0.9 | % | 32 | ||||||||||||||||||||
AdventHealth | 11 | AA/Aa2 | 797,587 | 118,585 | 916,172 | 14 | 2.6 | % | 411,598 | 1.3 | % | 81 | ||||||||||||||||||||
Community Health Systems | 8 | CCC+/Caa1 | 785,169 | — | 785,169 | 16 | 2.0 | % | 353,558 | 1.1 | % | 46 | ||||||||||||||||||||
Baptist Memorial Health Care | 89 | A-2/-- | 544,122 | 252,414 | 796,536 | 10 | 2.0 | % | 430,579 | 1.4 | % | 57 | ||||||||||||||||||||
Cedars-Sinai Health Systems | 51 | AA-/Aa3 | 199,701 | 90,607 | 290,308 | 5 | 1.6 | % | 54,636 | 0.2 | % | 20 | ||||||||||||||||||||
Providence St. Joseph Health | 5 | A/A2 | 330,287 | 31,601 | 361,888 | 8 | 1.6 | % | 137,032 | 0.4 | % | 25 | ||||||||||||||||||||
Trinity Health | 7 | AA-/Aa3 | 678,920 | 22,956 | 701,876 | 11 | 1.6 | % | 353,168 | 1.1 | % | 55 | ||||||||||||||||||||
Hawaii Pacific Health | 181 | --/A1 | 173,502 | 124,925 | 298,427 | 3 | 1.4 | % | 98,398 | 0.3 | % | 39 | ||||||||||||||||||||
Banner Health | 24 | AA-/-- | 749,075 | 31,039 | 780,114 | 24 | 1.4 | % | 141,286 | 0.5 | % | 36 | ||||||||||||||||||||
WakeMed | 185 | --/A2 | 373,980 | 101,597.00 | 475,577 | 13 | 1.3 | % | 144,265 | 0.5 | % | 21 | ||||||||||||||||||||
Bon Secours Health System | 22 | A+/A1 | 405,945 | — | 405,945 | 6 | 1.3 | % | 242,817 | 0.8 | % | 50 | ||||||||||||||||||||
Overlake Health System | 291 | A/Baa1 | 230,710 | — | 230,710 | 3 | 1.2 | % | 73,676 | 0.3 | % | 8 | ||||||||||||||||||||
MedStar Health | 45 | A/A2 | 326,129 | — | 326,129 | 4 | 1.1 | % | 203,507 | 0.6 | % | 65 | ||||||||||||||||||||
UNC Health Care | 62 | A+/Aa3 | 273,186 | 84,886 | 358,072 | 8 | 1.1 | % | 220,478 | 0.7 | % | 28 | ||||||||||||||||||||
Other (70 credit rated) | 6,508,778 | 3,531,414 | 10,040,192 | 195 | 27.2 | % | 4,397,962 | 14.0 | % | |||||||||||||||||||||||
Subtotal - credit rated 5 | 24,725,411 | 7,034,964 | 31,760,375 | 540 | 88.4 | % | 13,536,780 | 43.1 | % | |||||||||||||||||||||||
Other non-credit rated 6 | 1,281,438 | 612,886 | 1,894,324 | 37 | 6.5 | % | 864,229 | 2.8 | % | |||||||||||||||||||||||
Off-campus non-affiliated 7 | — | 2,418,555 | 2,418,555 | 59 | 5.1 | % | — | — | % | |||||||||||||||||||||||
Wholly-owned | 26,006,849 | 10,066,405 | 36,073,254 | 636 | 100.0 | % | 14,401,009 | 45.9 | % | |||||||||||||||||||||||
Joint ventures | 1,143,456 | 579,868 | 1,723,324 | |||||||||||||||||||||||||||||
Total | 27,150,305 | 10,646,273 | 37,796,578 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 16 |
MOB Proximity to Hospital 1,2 | ||
MOB BY LOCATION | ||||||||||||||
# OF PROPERTIES | SQUARE FEET | TOTAL | % GROUND LEASED | |||||||||||
On campus | 237 | 18,227,405 | 48.2 | % | 37.6 | % | ||||||||
Adjacent to campus 3 | 187 | 8,922,900 | 23.6 | % | 3.9 | % | ||||||||
Total on/adjacent | 424 | 27,150,305 | 71.8 | % | 41.5 | % | ||||||||
Off campus - affiliated 4 | 177 | 8,094,357 | 21.4 | % | 3.8 | % | ||||||||
Off campus | 62 | 2,551,916 | 6.8 | % | 0.6 | % | ||||||||
663 | 37,796,578 | 100.0 | % | 45.9 | % | |||||||||
Wholly-owned | 636 | 36,073,254 | ||||||||||||
Joint ventures | 27 | 1,723,324 |
MOB BY CLUSTER 5 | ||||||||||||||||||||
TOTAL | HOSPITAL CENTRIC 6 | |||||||||||||||||||
# OF PROPERTIES | SQUARE FEET | % OF MOB SQUARE FEET | # OF PROPERTIES | SQUARE FEET | % OF MOB SQUARE FEET | |||||||||||||||
Clustered | 474 | 26,303,078 | 69.6 | % | 391 | 22,954,855 | 72.0 | % | ||||||||||||
Non-clustered | 189 | 11,493,500 | 30.4 | % | 129 | 8,915,134 | 28.0 | % | ||||||||||||
Total | 663 | 37,796,578 | 100.0 | % | 520 | 31,869,989 | 100.0 | % |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 17 |
Lease Maturity & Occupancy1 | ||
LEASE MATURITY SCHEDULE | |||||||||||||||||||||||
SQUARE FEET | # OF WHOLLY-OWNED LEASES | ||||||||||||||||||||||
WHOLLY-OWNED AND JOINT VENTURE | |||||||||||||||||||||||
MULTI-TENANT 2 | SINGLE-TENANT | TOTAL | % OF TOTAL | JOINT VENTURES | WHOLLY-OWNED | ||||||||||||||||||
Month-to-month | 481,633 | 643 | 482,276 | 1.3 | % | 20,018 | 462,258 | 226 | |||||||||||||||
2023 | 848,821 | 210,341 | 1,059,162 | 2.9 | % | 61,705 | 997,457 | 265 | |||||||||||||||
2024 | 4,690,902 | 958,593 | 5,649,495 | 15.7 | % | 221,589 | 5,427,906 | 1,387 | |||||||||||||||
2025 | 3,754,961 | 992,940 | 4,747,901 | 13.2 | % | 183,551 | 4,564,350 | 1,084 | |||||||||||||||
2026 | 3,782,930 | 484,579 | 4,267,509 | 11.9 | % | 122,587 | 4,144,922 | 999 | |||||||||||||||
2027 | 3,351,159 | 999,428 | 4,350,587 | 12.1 | % | 149,766 | 4,200,821 | 842 | |||||||||||||||
2028 | 2,813,638 | 665,562 | 3,479,200 | 9.7 | % | 82,809 | 3,396,391 | 744 | |||||||||||||||
2029 | 1,760,028 | 970,949 | 2,730,977 | 7.6 | % | 342,627 | 2,388,350 | 396 | |||||||||||||||
2030 | 1,813,297 | 756,694 | 2,569,991 | 7.2 | % | 85,985 | 2,484,006 | 355 | |||||||||||||||
2031 | 1,051,642 | 137,827 | 1,189,469 | 3.3 | % | 27,799 | 1,161,670 | 237 | |||||||||||||||
2032 | 1,816,462 | 361,573 | 2,178,035 | 6.1 | % | 62,415 | 2,115,620 | 285 | |||||||||||||||
Thereafter | 2,388,213 | 836,298 | 3,224,511 | 9.0 | % | 333,976 | 2,890,535 | 365 | |||||||||||||||
Total occupied | 28,553,686 | 7,375,427 | 35,929,113 | 87.5 | % | 1,694,827 | 34,234,286 | 7,185 | |||||||||||||||
Total building | 33,551,933 | 7,494,128 | 41,046,061 | 1,949,400 | 39,096,661 | ||||||||||||||||||
Occupancy | 85.1 | % | 98.4 | % | 87.5 | % | 86.9 | % | 87.6 | % | |||||||||||||
Leased % | 87.2 | % | 98.4 | % | 89.2 | % | 87.7 | % | 89.3 | % | |||||||||||||
WALTR (months) 3 | 50.1 | 64.3 | 55.7 | 51.8 | |||||||||||||||||||
WALT (months) 3 | 96.5 | 140.3 | 110.7 | 104.0 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 18 |
Leasing Statistics | ||
MERGER COMBINED SAME STORE RENEWALS 1 | ||||||||
Q3 2023 | TTM | |||||||
MOB cash leasing spreads 2 | 4.8 | % | 3.6 | % | ||||
MOB cash leasing spreads distribution | ||||||||
< 0% spread | 0.7 | % | 5.5 | % | ||||
0-3% spread | 2.9 | % | 14.6 | % | ||||
3-4% spread | 77.2 | % | 62.8 | % | ||||
> 4% spread | 19.2 | % | 17.1 | % | ||||
Total | 100.0 | % | 100.0 | % | ||||
Tenant retention rate | 76.1 | % | 79.0 | % | ||||
AVERAGE IN-PLACE CONTRACTUAL INCREASES 3 | ||||||||||||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||||||||||||||
% INCREASE | % OF BASE RENT | % INCREASE | % OF BASE RENT | % INCREASE | % OF BASE RENT | |||||||||||||||||||||
Merger combined same store 1 | 2.84 | % | 68.0 | % | 2.52 | % | 17.7 | % | 2.77 | % | 85.7 | % | ||||||||||||||
Acquisitions | 2.80 | % | 4.8 | % | 2.93 | % | 0.5 | % | 2.82 | % | 5.3 | % | ||||||||||||||
Other 4 | 2.69 | % | 7.0 | % | 2.30 | % | 2.0 | % | 2.60 | % | 9.0 | % | ||||||||||||||
Total | 2.82 | % | 79.8 | % | 2.51 | % | 20.2 | % | 2.76 | % | 100.0 | % | ||||||||||||||
Escalator type | ||||||||||||||||||||||||||
Fixed | 2.77 | % | 96.7 | % | 2.58 | % | 88.1 | % | 2.74 | % | 95.0 | % | ||||||||||||||
CPI | 4.29 | % | 3.3 | % | 1.99 | % | 11.9 | % | 3.19 | % | 5.0 | % |
TYPE AND OWNERSHIP STRUCTURE 1 | ||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||
Tenant type | ||||||||||||||
Hospital | 46.4 | % | 71.0 | % | 51.4 | % | ||||||||
Physician and other | 53.6 | % | 29.0 | % | 48.6 | % | ||||||||
Lease structure | ||||||||||||||
Gross | 8.9 | % | 3.0 | % | 7.7 | % | ||||||||
Modified gross | 31.3 | % | 10.9 | % | 27.3 | % | ||||||||
Net | 59.8 | % | 64.6 | % | 60.8 | % | ||||||||
Absolute net 5 | — | % | 21.5 | % | 4.3 | % | ||||||||
Ownership type | ||||||||||||||
Ground lease | 44.7 | % | 39.0 | % | 43.7 | % | ||||||||
Fee simple | 55.3 | % | 61.0 | % | 56.3 | % |
# OF LEASES BY SIZE 6 | |||||||||||
LEASED SQUARE FEET | # OF LEASES | WALT | WALTR | ||||||||
0 - 2,500 | 3,652 | 71.8 | 36.7 | ||||||||
2,501 - 5,000 | 1,808 | 82.9 | 41.8 | ||||||||
5,001 - 7,500 | 638 | 93.9 | 47.0 | ||||||||
7,501 - 10,000 | 359 | 100.2 | 51.9 | ||||||||
10,001 + | 728 | 123.9 | 60.8 | ||||||||
Total Leases | 7,185 | 104.0 | 51.8 | ||||||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 19 |
Merger Combined Same Store1 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA | ||
REFLECTS COMBINED COMPANY RESULTS FOR ALL PERIODS |
TOTAL MERGER COMBINED CASH NOI | ||||||||||||||||||||||||||
% of Total NOI | 3Q 2023 | 2Q 2023 | 3Q 2022 | Y-o-Y% CHANGE | TTM 2023 | TTM 2022 | % CHANGE | |||||||||||||||||||
Multi-tenant | 66 | % | $ | 136,041 | $ | 137,637 | $ | 133,188 | 2.1 | % | $ | 545,690 | $ | 530,580 | 2.8 | % | ||||||||||
Single-tenant | 21 | % | 43,220 | 42,422 | 42,257 | 2.3 | % | 170,825 | 166,542 | 2.6 | % | |||||||||||||||
Joint venture | 1 | % | 2,530 | 2,619 | 2,293 | 10.3 | % | 10,050 | 9,342 | 7.6 | % | |||||||||||||||
Merger combined same store | 89 | % | $ | 181,791 | $ | 182,678 | $ | 177,738 | 2.3 | % | $ | 726,565 | $ | 706,464 | 2.8 | % | ||||||||||
Planned dispositions | 1 | % | 1,453 | 1,348 | 2,058 | (29.4 | %) | 6,970 | 9,923 | (29.8 | %) | |||||||||||||||
Re/development | 1 | % | 2,116 | 2,455 | 3,510 | (39.7 | %) | 10,594 | 15,349 | (31.0 | %) | |||||||||||||||
Wholly owned and joint venture acquisitions | 7 | % | 13,797 | 13,396 | 10,582 | 30.4 | % | 52,016 | 26,535 | 96.0 | % | |||||||||||||||
Development completions | 1 | % | 1,756 | 1,513 | 1,188 | 47.8 | % | 5,941 | 4,120 | 44.2 | % | |||||||||||||||
Completed dispositions & assets held for sale | 2 | % | 3,808 | 6,350 | 19,302 | (80.3 | %) | 31,505 | 95,596 | (67.0 | %) | |||||||||||||||
Merger combined total cash NOI | 100 | % | $204,721 | $207,740 | $214,378 | (4.5 | %) | $833,591 | $857,987 | (2.8 | %) | |||||||||||||||
PORTFOLIO OCCUPANCY AND ABSORPTION | |||||||||||||||||||||||
OCCUPANCY % | ABSORPTION (square feet in thousands) | ||||||||||||||||||||||
COUNT | SQUARE FEET | 3Q 2023 | 2Q 2023 | 3Q 2022 | SEQUENTIAL | Y-O-Y | |||||||||||||||||
Multi-tenant | 462 | 28,232,890 | 86.7 | % | 86.9 | % | 86.6 | % | (31) | 42 | |||||||||||||
Single-tenant | 122 | 6,564,946 | 99.6 | % | 99.5 | % | 99.5 | % | 12 | 12 | |||||||||||||
Joint venture | 12 | 997,543 | 87.9 | % | 88.4 | % | 87.7 | % | (5) | 2 | |||||||||||||
Merger combined same store | 596 | 35,795,379 | 89.1 | % | 89.2 | % | 89.0 | % | (24) | 56 | |||||||||||||
Planned dispositions | 8 | 582,186 | 71.1 | % | 72.0 | % | 82.4 | % | (5) | (66) | |||||||||||||
Re/development | 16 | 1,368,720 | 51.1 | % | 51.6 | % | 63.3 | % | (7) | (164) | |||||||||||||
Wholly owned and joint venture acquisitions | 72 | 2,894,596 | 90.2 | % | 90.4 | % | 87.9 | % | (5) | 48 | |||||||||||||
Development completions | 5 | 405,180 | 73.3 | % | 71.1 | % | 66.6 | % | 9 | 43 | |||||||||||||
Total portfolio | 697 | 41,046,061 | 87.5 | % | 87.6 | % | 87.8 | % | (32) | (83) | |||||||||||||
Joint ventures | 34 | 1,949,400 | 86.9 | % | 87.0 | % | 85.5 | % | (2) | 24 | |||||||||||||
Total wholly-owned | 663 | 39,096,661 | 87.6 | % | 87.6 | % | 87.9 | % | (30) | (107) |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 20 |
Merger Combined Same Store1, 2 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA | ||
REFLECTS COMBINED COMPANY RESULTS FOR ALL PERIODS |
MERGER COMBINED SAME STORE CASH NOI | |||||||||||||||||
TOTAL | |||||||||||||||||
3Q 2023 | 2Q 2023 | 3Q 2022 | TTM 2023 | TTM 2022 | |||||||||||||
Base revenue | $219,904 | $219,317 | $215,632 | $873,376 | $850,489 | ||||||||||||
Op. exp. recoveries | 73,122 | 68,312 | 68,257 | 276,509 | 261,261 | ||||||||||||
Revenues | $293,026 | $287,629 | $283,889 | $1,149,885 | $1,111,750 | ||||||||||||
Expenses | 111,235 | 104,951 | 106,151 | 423,320 | 405,286 | ||||||||||||
Cash NOI | $181,791 | $182,678 | $177,738 | $726,565 | $706,464 | ||||||||||||
Revenue per occ SF 3 | $36.72 | $36.02 | $35.64 | $36.04 | $34.96 | ||||||||||||
Margin | 62.0 | % | 63.5 | % | 62.6 | % | 63.2 | % | 63.5 | % | |||||||
Average occupancy | 89.2 | % | 89.2 | % | 89.0 | % | 89.1 | % | 88.8 | % | |||||||
Period end occupancy | 89.1 | % | 89.2 | % | 89.0 | % | 89.1 | % | 89.0 | % | |||||||
Number of properties | 596 | 596 | 596 | 596 | 596 | ||||||||||||
Year-Over-Year Change | |||||||||||||||||
Revenue per occ SF 4 | 3.0 | % | 3.1 | % | |||||||||||||
Avg occupancy (bps) | +20 | +30 | |||||||||||||||
Revenues | 3.2 | % | 3.4 | % | |||||||||||||
Base revenue | 2.0 | % | 2.7 | % | |||||||||||||
Exp recoveries | 7.1 | % | 5.8 | % | |||||||||||||
Expenses | 4.8 | % | 4.4 | % | |||||||||||||
Cash NOI | 2.3 | % | 2.8 | % |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 21 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
BOTTOM UP RECONCILIATION | |||||||||||||||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2022 | 4Q 2021 | ||||||||||||||||||||||
Net income (loss) attr. to common stockholders | ($67,844) | ($82,759) | ($87,125) | ($35,764) | $28,304 | $6,130 | $42,227 | $21,607 | |||||||||||||||||||||
Other income (expense) | 74,621 | 112,818 | 94,407 | 46,772 | (89,477) | 7,479 | (29,293) | (468) | |||||||||||||||||||||
General and administrative expense | 13,396 | 15,464 | 14,935 | 14,417 | 16,741 | 10,540 | 11,036 | 8,901 | |||||||||||||||||||||
Depreciation and amortization expense | 182,989 | 183,193 | 184,479 | 185,275 | 158,117 | 55,731 | 54,041 | 51,810 | |||||||||||||||||||||
Other expenses 1 | 11,783 | (11,969) | 7,940 | 13,580 | 82,659 | 11,034 | 9,929 | 3,850 | |||||||||||||||||||||
Straight-line rent expense | 1,538 | 1,525 | 1,537 | 1,358 | 1,260 | 378 | 378 | 382 | |||||||||||||||||||||
Straight-line rent revenue | (10,008) | (9,530) | (9,782) | (11,231) | (8,975) | (1,705) | (1,587) | (1,227) | |||||||||||||||||||||
Other revenue 2 | (6,446) | (5,959) | (1,686) | (7,330) | (5,242) | (1,961) | (2,044) | (2,134) | |||||||||||||||||||||
Joint venture property cash NOI | 4,692 | 4,957 | 4,769 | 4,579 | 3,877 | 2,551 | 2,052 | 1,331 | |||||||||||||||||||||
Cash NOI | $204,721 | $207,740 | $209,474 | $211,656 | $187,264 | $90,177 | $86,739 | $84,052 | |||||||||||||||||||||
Pre-merger Legacy HTA NOI | — | — | — | — | 27,114 | 128,025 | 127,363 | 127,253 | |||||||||||||||||||||
Cash NOI including pre-merger Legacy HTA NOI | $204,721 | $207,740 | $209,474 | $211,656 | $214,378 | $218,202 | $214,102 | $211,305 | |||||||||||||||||||||
Planned dispositions | (1,453) | (1,348) | (2,087) | (2,082) | (2,058) | (2,582) | (2,669) | (2,614) | |||||||||||||||||||||
Redevelopment | (2,116) | (2,455) | (2,836) | (3,187) | (3,510) | (3,605) | (3,952) | (4,282) | |||||||||||||||||||||
Wholly owned and joint venture acquisitions | (13,797) | (13,396) | (12,767) | (12,056) | (10,582) | (9,152) | (5,371) | (1,430) | |||||||||||||||||||||
Development completions | (1,756) | (1,513) | (1,360) | (1,312) | (1,188) | (1,158) | (1,153) | (621) | |||||||||||||||||||||
Completed dispositions & assets held for sale | (3,808) | (6,350) | (8,790) | (12,557) | (19,302) | (23,548) | (25,648) | (27,098) | |||||||||||||||||||||
Merger combined same store cash NOI | $181,791 | $182,678 | $181,634 | $180,462 | $177,738 | $178,157 | $175,309 | $175,260 | |||||||||||||||||||||
Same store joint venture properties | (2,530) | (2,619) | (2,468) | (2,433) | (2,293) | (2,429) | (2,416) | (2,204) | |||||||||||||||||||||
Merger combined same store excluding JVs | $179,261 | $180,059 | $179,166 | $178,029 | $175,445 | $175,728 | $172,893 | $173,056 | |||||||||||||||||||||
TOP DOWN RECONCILIATION | |||||||||||||||||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2022 | 4Q 2021 | ||||||||||||||||||||||
Rental income before rent concessions | $336,503 | $332,992 | $328,115 | $332,652 | $301,692 | $142,073 | $139,775 | $132,853 | |||||||||||||||||||||
Rent concessions | (3,168) | (3,312) | (4,022) | (3,253) | (2,761) | (1,441) | (1,286) | (1,139) | |||||||||||||||||||||
Rental income | 333,335 | 329,680 | 324,093 | 329,399 | 298,931 | 140,632 | 138,489 | 131,714 | |||||||||||||||||||||
Parking income | 2,751 | 2,370 | 2,391 | 2,413 | 2,428 | 1,919 | 1,753 | 2,134 | |||||||||||||||||||||
Interest from financing receivable, net | 2,002 | 2,180 | 2,227 | 2,284 | 2,034 | 1,957 | 1,930 | 1,766 | |||||||||||||||||||||
Exclude straight-line rent revenue | (10,008) | (9,530) | (9,782) | (11,231) | (8,975) | (1,705) | (1,587) | (1,227) | |||||||||||||||||||||
Exclude other non-cash revenue 3 | (1,410) | (1,018) | 3,594 | (3,059) | (2,280) | (1,142) | (1,322) | (1,325) | |||||||||||||||||||||
Cash revenue | 326,670 | 323,682 | 322,523 | 319,806 | 292,138 | 141,661 | 139,263 | 133,062 | |||||||||||||||||||||
Property operating expense | (131,639) | (125,395) | (122,040) | (117,009) | (112,473) | (57,010) | (57,464) | (53,032) | |||||||||||||||||||||
Exclude non-cash expenses 4 | 5,079 | 4,556 | 4,336 | 3,764 | 4,034 | 2,975 | 2,888 | 2,691 | |||||||||||||||||||||
Non-controlling interest | (81) | (60) | (114) | 516 | (312) | — | — | — | |||||||||||||||||||||
Joint venture property cash NOI | 4,692 | 4,957 | 4,769 | 4,579 | 3,877 | 2,551 | 2,052 | 1,331 | |||||||||||||||||||||
Cash NOI | $204,721 | $207,740 | $209,474 | $211,656 | $187,264 | $90,177 | $86,739 | $84,052 | |||||||||||||||||||||
Pre-merger Legacy HTA NOI | — | — | — | — | 27,114 | 128,025 | 127,363 | 127,253 | |||||||||||||||||||||
Cash NOI including pre-merger Legacy HTA NOI | $204,721 | $207,740 | $209,474 | $211,656 | $214,378 | $218,202 | $214,102 | $211,305 | |||||||||||||||||||||
Planned dispositions | (1,453) | (1,348) | (2,087) | (2,082) | (2,058) | (2,582) | (2,669) | (2,614) | |||||||||||||||||||||
Redevelopment | (2,116) | (2,455) | (2,836) | (3,187) | (3,510) | (3,605) | (3,952) | (4,282) | |||||||||||||||||||||
Wholly owned and joint venture acquisitions | (13,797) | (13,396) | (12,767) | (12,056) | (10,582) | (9,152) | (5,371) | (1,430) | |||||||||||||||||||||
Development completions | (1,756) | (1,513) | (1,360) | (1,312) | (1,188) | (1,158) | (1,153) | (621) | |||||||||||||||||||||
Completed dispositions & assets held for sale | (3,808) | (6,350) | (8,790) | (12,557) | (19,302) | (23,548) | (25,648) | (27,098) | |||||||||||||||||||||
Merger combined same store cash NOI | $181,791 | $182,678 | $181,634 | $180,462 | $177,738 | $178,157 | $175,309 | $175,260 | |||||||||||||||||||||
Same store joint venture properties | (2,530) | (2,619) | (2,468) | (2,433) | (2,293) | (2,429) | (2,416) | (2,204) | |||||||||||||||||||||
Merger combined same store excluding JVs | $179,261 | $180,059 | $179,166 | $178,029 | $175,445 | $175,728 | $172,893 | $173,056 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 22 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF NOI TO FULL QUARTER FFO AND NORMALIZED FFO | ||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Cash NOI | $204,721 | $207,740 | $209,474 | $211,656 | ||||||||||
General and administrative expense | (13,396) | (15,464) | (14,935) | (14,417) | ||||||||||
Straight-line rent | 10,008 | 9,530 | 9,782 | 11,231 | ||||||||||
Interest and other income (expense), net | 139 | 592 | 547 | (1,168) | ||||||||||
Management fees and other income | 1,910 | 1,860 | 2,227 | 2,023 | ||||||||||
Note receivable interest income | 2,262 | 2,180 | 1,987 | 1,943 | ||||||||||
Other non-cash revenue 1 | 2,250 | 1,918 | (2,526) | 3,059 | ||||||||||
Other non-cash expenses 2 | (5,079) | (4,556) | (4,336) | (3,764) | ||||||||||
Non-real estate impairment | — | — | (5,196) | — | ||||||||||
Unconsolidated JV adjustments | (337) | (185) | (357) | (143) | ||||||||||
Debt Covenant EBITDA | $202,478 | $203,615 | $196,667 | $210,420 | ||||||||||
Interest expense | (66,304) | (65,334) | (63,759) | (64,443) | ||||||||||
Gain on extinguishment of debt | 62 | — | — | 119 | ||||||||||
Acquisition and pursuit costs | (769) | (669) | (287) | (92) | ||||||||||
Merger-related costs | (7,450) | 15,670 | (4,855) | (10,777) | ||||||||||
Leasing commission amortization 3 | 3,663 | 3,335 | 3,002 | 2,706 | ||||||||||
Non-real estate depreciation and amortization | (1,509) | (1,525) | (1,372) | (1,323) | ||||||||||
Non controlling interest | (841) | (1,027) | (1,067) | (382) | ||||||||||
Unconsolidated JV adjustments | (389) | (377) | (351) | (327) | ||||||||||
FFO | $128,941 | $153,688 | $127,978 | $135,901 | ||||||||||
Acquisition and pursuit costs | 769 | 669 | 287 | 92 | ||||||||||
Merger-related costs | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||
Lease intangible amortization | 213 | 240 | 146 | 137 | ||||||||||
Significant non-recurring legal fees/forfeited earnest money received | — | 275 | — | 194 | ||||||||||
Debt financing costs | (62) | — | — | 625 | ||||||||||
Merger-related fair value adjustment | 10,667 | 10,554 | 10,864 | 11,979 | ||||||||||
Allowance for credit losses | — | — | 8,599 | — | ||||||||||
Unconsolidated JV normalizing items | 90 | 93 | 117 | 96 | ||||||||||
Normalized FFO | $148,068 | $149,849 | $152,846 | $159,801 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 23 |
EBITDA Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF EBITDA | ||||||||||||||
3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||
Net income | ($67,844) | ($82,759) | ($87,125) | ($35,764) | ||||||||||
Interest expense | 66,304 | 65,334 | 63,759 | 64,443 | ||||||||||
Depreciation and amortization | 182,989 | 183,193 | 184,479 | 185,275 | ||||||||||
Unconsolidated JV depreciation,amortization,and interest | 4,810 | 4,789 | 5,192 | 4,339 | ||||||||||
EBITDA | $186,259 | $170,557 | $166,305 | $218,293 | ||||||||||
Leasing commission amortization | 3,663 | 3,335 | 3,002 | 2,706 | ||||||||||
Gain on sales of real estate properties | (48,811) | (7,156) | (1,007) | (73,083) | ||||||||||
Impairments on real estate properties | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||
EBITDAre 1 | $197,984 | $221,951 | $194,527 | $202,368 | ||||||||||
EBITDA | $186,259 | $170,557 | $166,305 | $218,293 | ||||||||||
Acquisition and pursuit costs | 769 | 669 | 287 | 92 | ||||||||||
Merger-related costs | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||
Gain on sales of real estate properties | (48,811) | (7,156) | (1,007) | (73,083) | ||||||||||
Impairments on real estate assets | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||
Gain on extinguishment of debt | (62) | — | — | (119) | ||||||||||
Unconsolidated JV adjustments | — | — | — | 8 | ||||||||||
Debt Covenant EBITDA | $202,478 | $203,615 | $196,667 | $210,420 | ||||||||||
Leasing commission amortization | 3,663 | 3,335 | 3,002 | 2,706 | ||||||||||
Lease intangible amortization | 213 | 240 | 147 | 137 | ||||||||||
Acquisition/disposition timing impact 2 | (2,559) | (184) | (945) | (1,704) | ||||||||||
Stock based compensation | 2,556 | 3,924 | 3,745 | 3,573 | ||||||||||
Allowance for credit losses 3 | — | — | 8,599 | — | ||||||||||
Rent reserves, net | 442 | (54) | 1,371 | (100) | ||||||||||
Unconsolidated JV adjustments | 90 | 93 | 117 | 96 | ||||||||||
Adjusted EBITDA | $206,883 | $210,969 | $212,703 | $215,128 | ||||||||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 24 |
Components of Net Asset Value | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
CASH NOI BY PROPERTY TYPE | |||||||||||||||||||||||
3Q 2023 | |||||||||||||||||||||||
ASSET TYPE | MERGER COMBINED TOTAL SAME STORE 1 | ACQ./DEV. COMPLETIONS 2 | REDEVELOPMENT | TIMING/OTHER ADJUSTMENTS 3 | ADJUSTED CASH NOI | ANNUALIZED ADJUSTED NOI | |||||||||||||||||
MOB/Outpatient | $166,651 | $14,693 | $2,116 | $1,117 | $184,577 | $738,308 | |||||||||||||||||
Inpatient/Surgical | 8,078 | 860 | — | — | 8,938 | 35,752 | |||||||||||||||||
Office | 7,062 | — | — | 7,062 | 28,248 | ||||||||||||||||||
Total Cash NOI | $181,791 | $15,553 | $2,116 | $1,117 | $200,577 | $802,308 |
DEVELOPMENT PROPERTIES | TOTAL SHARES OUTSTANDING | |||||||||||||||||||
Land held for development | $59,871 | As of September 30, 2023 8 | 384,903,105 | |||||||||||||||||
Re/development budget | 321,478 | |||||||||||||||||||
$381,349 | IMPLIED CAP RATE | |||||||||||||||||||
STOCK PRICE | IMPLIED CAP RATE | |||||||||||||||||||
As of September 30, 2023 8 | $15.27 | 7.6 | % | |||||||||||||||||
OTHER ASSETS | ||||||||||||||||||||
Disposition pipeline 4 | $205,776 | 3Q 2023 High | $20.15 | 6.5 | % | |||||||||||||||
Unstabilized properties 5 | 305,288 | 3Q 2023 Low | $14.73 | 7.8 | % | |||||||||||||||
Cash and other assets 6 | 388,984 | |||||||||||||||||||
$900,048 | ||||||||||||||||||||
DEBT | ||||||||||||||||||||
Unsecured credit facility | $236,000 | |||||||||||||||||||
Unsecured term loans | 1,500,000 | |||||||||||||||||||
Senior notes | 3,699,285 | |||||||||||||||||||
Mortgage notes payable | 77,907 | |||||||||||||||||||
Company share of joint venture net debt | 12,570 | |||||||||||||||||||
Remaining re/development funding | 192,524 | |||||||||||||||||||
Other liabilities 7 | 242,573 | |||||||||||||||||||
$5,960,859 | ||||||||||||||||||||
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 25 |
Components of Expected FFO | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
EXPECTED 2023 | ACTUAL | ||||||||||||||||
LOW | HIGH | Q3 2023 | TTM | ||||||||||||||
MERGER COMBINED SAME STORE | |||||||||||||||||
Multi-tenant average absorption (bps) | 25 | 50 | 20 | 40 | |||||||||||||
Revenue per occupied square foot | $36.25 | $37.00 | $36.72 | $36.04 | |||||||||||||
Cash NOI margin | 63.5 | % | 64.5 | % | 62.0 | % | 63.2 | % | |||||||||
Cash leasing spreads | 3.0 | % | 4.0 | % | 4.8 | % | 3.6 | % | |||||||||
Lease retention rate | 75.0 | % | 90.0 | % | 76.1 | % | 79.0 | % | |||||||||
Cash NOI growth, including Company's share of JVs | 2.0 | % | 3.0 | % | 2.3 | % | 2.8 | % | |||||||||
ANNUAL EXPECTATIONS | LOW | HIGH | YTD | ||||||||||||||
NON-SAME STORE | |||||||||||||||||
Normalized G&A | 57,000 | 60,000 | 43,521 | ||||||||||||||
Straight-line rent, net | 28,000 | 32,000 | 24,720 | ||||||||||||||
Funding activity | |||||||||||||||||
Acquisitions | $42,950 | $42,950 | 42,950 | ||||||||||||||
Dispositions to repay asset sale term loan | 112,460 | 112,460 | 112,460 | ||||||||||||||
Additional dispositions | 350,000 | 450,000 | 318,312 | ||||||||||||||
Re/development | 100,000 | 125,000 | 79,941 | ||||||||||||||
1st generation TI and acq. capex | 40,000 | 50,000 | 31,141 | ||||||||||||||
Maintenance capex | |||||||||||||||||
2nd generation TI | 65,000 | 75,000 | 47,366 | ||||||||||||||
Leasing commissions paid | 30,000 | 35,000 | 21,413 | ||||||||||||||
Capital expenditures | 45,000 | 50,000 | 31,949 | ||||||||||||||
Total maintenance capex | 140,000 | 160,000 | 100,728 | ||||||||||||||
Cash yield | |||||||||||||||||
Acquisitions | 6.0 | % | 6.5 | % | 6.5 | % | |||||||||||
Dispositions | 6.0 | % | 7.0 | % | 6.8 | % | |||||||||||
Development (stabilized) | 6.5 | % | 8.0 | % | |||||||||||||
Redevelopment (stabilized) | 9.0 | % | 12.0 | % | |||||||||||||
Net debt to adjusted EBITDA | 6.0x | 6.5x | 6.6x | ||||||||||||||
Net income (loss) attributable to common stockholders per share | $(0.75) | $(1.00) | $(0.63) | ||||||||||||||
Normalized FFO per share | $1.57 | $1.60 | $1.18 |
HEALTHCARE REALTY | 3Q 2023 SUPPLEMENTAL INFORMATION 26 |
Cover Page |
Nov. 03, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 03, 2023 |
Entity Registrant Name | Healthcare Realty Trust Incorporated |
Entity Incorporation, State or Country Code | MD |
Entity File Number | 001-35568 |
Entity Tax Identification Number | 20-4738467 |
Entity Address, Address Line One | 3310 West End Avenue, Suite 700 |
Entity Address, City or Town | Nashville, |
Entity Address, State or Province | TN |
Entity Address, Postal Zip Code | 37203 |
City Area Code | (615) |
Local Phone Number | 269-8175 |
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share |
Trading Symbol | HR |
Security Exchange Name | NYSE |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001360604 |
Amendment Flag | false |
1 Year Healthcare Realty Chart |
1 Month Healthcare Realty Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions