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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 | |
---|---|---|---|---|---|---|---|---|
0.6356 | 4.01% | 16.5056 | 16.03 | 15.73 | 15.79 | 2,664,727 | 22:09:11 |
(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: February 16, 2024 | By: | /s/ J. Christopher Douglas | |||||||||
Name: J. Christopher Douglas | |||||||||||
Title: Executive Vice President - Chief Financial Officer |
RESULTS |
MERGER COMBINED SAME STORE |
HEALTHCAREREALTY.COM | PAGE 1 OF 9 |
MULTI-TENANT OCCUPANCY AND ABSORPTION |
4Q 2023 | ||||||||
(in thousands, except % and bps) | NOVEMBER 2023 PROJECTION | ACTUAL | ||||||
Total multi-tenant SF | 33,552 | 33,371 | ||||||
Starting occupancy | 85.1 | % | 84.7 | % | ||||
Absorption (SF) | 120-180 | 175 | ||||||
Ending occupancy | 85.4-85.6% | 85.2 | % | |||||
Change in occupancy (bps) | + 30-50 | + 53 |
LEASING |
DISPOSITIONS |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 2 OF 9 |
BALANCE SHEET |
DIVIDEND |
EARNINGS CALL |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 3 OF 9 |
GUIDANCE |
ACTUAL | EXPECTED 1Q 2024 | EXPECTED 2024 | ||||||||||||||||||||||||
4Q 2023 | 2023 | LOW | HIGH | LOW | HIGH | |||||||||||||||||||||
Earnings per share | $(0.11) | $(0.74) | $(0.12) | $(0.11) | $(0.60) | $(0.10) | ||||||||||||||||||||
NAREIT FFO per share | $0.36 | $1.43 | $0.35 | $0.36 | $1.42 | $1.48 | ||||||||||||||||||||
Normalized FFO per share | $0.39 | $1.57 | $0.38 | $0.39 | $1.52 | $1.58 | ||||||||||||||||||||
4Q 2023 RUN-RATE NORMALIZED FFO RECONCILIATION | 4Q 2023 | DESCRIPTION | ||||||||||||
4Q 2023 normalized FFO | $150,730 | |||||||||||||
Non-recurring items | (4,730) | Property tax appeals/reductions and refunds | ||||||||||||
4Q 2023 run-rate normalized FFO | $146,000 | |||||||||||||
EXPECTED 2024 | ||||||||||||||
KEY ASSUMPTIONS | LOW | HIGH | DESCRIPTION | |||||||||||
Annualized 4Q 2023 run-rate normalized FFO | $584,000 | $584,000 | ||||||||||||
Multi-tenant cash NOI | 21,000 | 29,000 | 3.5% to 4.75% growth | |||||||||||
Single-tenant cash NOI | 1,000 | 3,000 | 0.5% to 1.5% growth | |||||||||||
Straight-line rent | (2,000) | 2,000 | ||||||||||||
Performance based compensation | (5,500) | (3,500) | Return to run-rate | |||||||||||
Interest rate swap maturity | (6,500) | (6,500) | January 2024 expiration of 1.21% | |||||||||||
Re/development and other capital funding | (7,500) | (5,500) | $150-$250 million of dispositions | |||||||||||
Other | — | 1,500 | ||||||||||||
Expected normalized FFO | $584,500 | $604,000 | ||||||||||||
Expected normalized FFO per share | $1.52 | $1.58 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 4 OF 9 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 5 OF 9 |
Consolidated Balance Sheets | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
ASSETS | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Real estate properties | |||||||||||||||||
Land | $1,343,265 | $1,387,821 | $1,424,453 | $1,412,805 | $1,439,798 | ||||||||||||
Buildings and improvements | 10,881,373 | 11,004,195 | 11,188,821 | 11,196,297 | 11,332,037 | ||||||||||||
Lease intangibles | 836,302 | 890,273 | 922,029 | 929,008 | 959,998 | ||||||||||||
Personal property | 12,718 | 12,686 | 12,615 | 11,945 | 11,907 | ||||||||||||
Investment in financing receivables, net | 122,602 | 120,975 | 121,315 | 120,692 | 120,236 | ||||||||||||
Financing lease right-of-use assets | 82,209 | 82,613 | 83,016 | 83,420 | 83,824 | ||||||||||||
Construction in progress | 60,727 | 85,644 | 53,311 | 42,615 | 35,560 | ||||||||||||
Land held for development | 59,871 | 59,871 | 78,411 | 69,575 | 74,265 | ||||||||||||
Total real estate investments | 13,399,067 | 13,644,078 | 13,883,971 | 13,866,357 | 14,057,625 | ||||||||||||
Less accumulated depreciation and amortization | (2,226,853) | (2,093,952) | (1,983,944) | (1,810,093) | (1,645,271) | ||||||||||||
Total real estate investments, net | 11,172,214 | 11,550,126 | 11,900,027 | 12,056,264 | 12,412,354 | ||||||||||||
Cash and cash equivalents | 25,699 | 24,668 | 35,904 | 49,941 | 60,961 | ||||||||||||
Assets held for sale, net | 8,834 | 57,638 | 151 | 3,579 | 18,893 | ||||||||||||
Operating lease right-of-use assets | 275,975 | 323,759 | 333,224 | 336,112 | 336,983 | ||||||||||||
Investments in unconsolidated joint ventures | 311,511 | 325,453 | 327,245 | 327,746 | 327,248 | ||||||||||||
Other assets, net and goodwill | 842,898 | 822,084 | 797,796 | 795,242 | 693,192 | ||||||||||||
Total assets | $12,637,131 | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Liabilities | |||||||||||||||||
Notes and bonds payable | $4,994,859 | $5,227,413 | $5,340,272 | $5,361,699 | $5,351,827 | ||||||||||||
Accounts payable and accrued liabilities | 211,994 | 204,947 | 196,147 | 155,210 | 244,033 | ||||||||||||
Liabilities of properties held for sale | 295 | 3,814 | 222 | 277 | 437 | ||||||||||||
Operating lease liabilities | 229,714 | 273,319 | 278,479 | 279,637 | 279,895 | ||||||||||||
Financing lease liabilities | 74,503 | 74,087 | 73,629 | 73,193 | 72,939 | ||||||||||||
Other liabilities | 202,984 | 211,365 | 219,694 | 232,029 | 218,668 | ||||||||||||
Total liabilities | 5,714,349 | 5,994,945 | 6,108,443 | 6,102,045 | 6,167,799 | ||||||||||||
Redeemable non-controlling interests | 3,868 | 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 | 3,810 | 3,809 | 3,808 | 3,808 | 3,806 | ||||||||||||
Additional paid-in capital | 9,602,592 | 9,597,629 | 9,595,033 | 9,591,194 | 9,587,637 | ||||||||||||
Accumulated other comprehensive (loss) income | (10,741) | 17,079 | 9,328 | (8,554) | 2,140 | ||||||||||||
Cumulative net income attributable to common stockholders | 1,028,794 | 1,069,327 | 1,137,171 | 1,219,930 | 1,307,055 | ||||||||||||
Cumulative dividends | (3,801,793) | (3,684,144) | (3,565,941) | (3,447,750) | (3,329,562) | ||||||||||||
Total stockholders' equity | 6,822,662 | 7,003,700 | 7,179,399 | 7,358,628 | 7,571,076 | ||||||||||||
Non-controlling interest | 96,252 | 101,888 | 104,018 | 106,211 | 108,742 | ||||||||||||
Total Equity | 6,918,914 | 7,105,588 | 7,283,417 | 7,464,839 | 7,679,818 | ||||||||||||
Total liabilities and stockholders' equity | $12,637,131 | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 6 OF 9 |
Consolidated Statements of Income | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
THREE MONTHS ENDED DECEMBER 31, | TWELVE MONTHS ENDED DECEMBER 31, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Revenues | ||||||||||||||
Rental income | $322,076 | $329,399 | $1,309,184 | $907,451 | ||||||||||
Interest income | 4,422 | 4,227 | 17,134 | 11,480 | ||||||||||
Other operating | 3,943 | 4,436 | 17,451 | 13,706 | ||||||||||
330,441 | 338,062 | 1,343,769 | 932,637 | |||||||||||
Expenses | ||||||||||||||
Property operating | 121,362 | 117,009 | 500,437 | 344,038 | ||||||||||
General and administrative | 14,609 | 14,417 | 58,405 | 52,734 | ||||||||||
Normalizing items 1 | (1,445) | — | (1,720) | — | ||||||||||
Normalized general and administrative | 13,164 | 14,417 | 56,685 | 52,734 | ||||||||||
Acquisition and pursuit costs 2 | 301 | 92 | 2,026 | 3,229 | ||||||||||
Merger-related costs | 1,414 | 10,777 | (1,952) | 103,380 | ||||||||||
Depreciation and amortization | 180,049 | 185,275 | 730,709 | 453,082 | ||||||||||
317,735 | 327,570 | 1,289,625 | 956,463 | |||||||||||
Other income (expense) | ||||||||||||||
Interest expense before merger-related fair value | (52,387) | (52,464) | (215,699) | (125,443) | ||||||||||
Merger-related fair value adjustment | (10,800) | (11,979) | (42,885) | (21,248) | ||||||||||
Interest expense | (63,187) | (64,443) | (258,584) | (146,691) | ||||||||||
Gain on sales of real estate properties | 20,573 | 73,083 | 77,546 | 270,271 | ||||||||||
Gain (loss) on extinguishment of debt | — | 119 | 62 | (2,401) | ||||||||||
Impairment of real estate assets and credit loss reserves | (11,403) | (54,452) | (154,912) | (54,427) | ||||||||||
Equity (loss) gain from unconsolidated joint ventures | (430) | 89 | (1,682) | (687) | ||||||||||
Interest and other income (expense), net | 65 | (1,168) | 1,343 | (1,546) | ||||||||||
(54,382) | (46,772) | (336,227) | 64,519 | |||||||||||
Net (loss) income | $(41,676) | $(36,280) | $(282,083) | $40,693 | ||||||||||
Net loss (income) attributable to non-controlling interests | 1,143 | 516 | 3,822 | 204 | ||||||||||
Net (loss) income attributable to common stockholders | $(40,533) | $(35,764) | $(278,261) | $40,897 | ||||||||||
Basic earnings per common share | $(0.11) | $(0.10) | $(0.74) | $0.15 | ||||||||||
Diluted earnings per common share | $(0.11) | $(0.10) | $(0.74) | $0.15 | ||||||||||
Weighted average common shares outstanding - basic | 379,044 | 378,617 | 378,928 | 252,356 | ||||||||||
Weighted average common shares outstanding - diluted 3 | 379,044 | 378,617 | 378,928 | 253,873 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 7 OF 9 |
Reconciliation of FFO, Normalized FFO and FAD 1,2,3 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA |
THREE MONTHS ENDED DECEMBER 31, | TWELVE MONTHS ENDED DECEMBER 31, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net (loss) income attributable to common stockholders | $(40,533) | $(35,764) | $(278,261) | $40,897 | ||||||||||
Net loss attributable to common stockholders/diluted share 3 | $(0.11) | $(0.10) | $(0.74) | $0.15 | ||||||||||
Gain on sales of real estate assets | (20,573) | (73,083) | (77,546) | (270,271) | ||||||||||
Impairments of real estate assets | 11,403 | 54,452 | 149,717 | 54,427 | ||||||||||
Real estate depreciation and amortization | 182,272 | 186,658 | 738,526 | 459,211 | ||||||||||
Non-controlling loss from partnership units | (491) | (382) | (3,426) | (5) | ||||||||||
Unconsolidated JV depreciation and amortization | 4,442 | 4,020 | 18,116 | 12,722 | ||||||||||
FFO adjustments | $177,053 | $171,665 | $825,387 | $256,084 | ||||||||||
FFO adjustments per common share - diluted | $0.46 | $0.45 | $2.15 | $1.01 | ||||||||||
FFO | $136,520 | $135,901 | $547,126 | $296,981 | ||||||||||
FFO per common share - diluted | $0.36 | $0.35 | $1.43 | $1.17 | ||||||||||
Acquisition and pursuit costs | 301 | 92 | 2,026 | 3,229 | ||||||||||
Merger-related costs | 1,414 | 10,777 | (1,952) | 103,380 | ||||||||||
Lease intangible amortization | 261 | 137 | 860 | 1,028 | ||||||||||
Non-routine legal costs/forfeited earnest money received | (100) | 194 | 175 | 771 | ||||||||||
Debt financing costs | — | 625 | (62) | 3,145 | ||||||||||
Severance costs | 1,445 | — | 1,445 | — | ||||||||||
Allowance for credit losses 4 | — | — | 8,599 | — | ||||||||||
Merger-related fair value adjustment | 10,800 | 11,979 | 42,885 | 21,248 | ||||||||||
Unconsolidated JV normalizing items 5 | 89 | 96 | 389 | 330 | ||||||||||
Normalized FFO adjustments | $14,210 | $23,900 | $54,365 | $133,131 | ||||||||||
Normalized FFO adjustments per common share - diluted | $0.04 | $0.06 | $0.14 | $0.52 | ||||||||||
Normalized FFO | $150,730 | $159,801 | $601,491 | $430,112 | ||||||||||
Normalized FFO per common share - diluted | $0.39 | $0.42 | $1.57 | $1.69 | ||||||||||
Non-real estate depreciation and amortization | 685 | 624 | 2,566 | 2,217 | ||||||||||
Non-cash interest amortization, net 6 | 1,265 | 2,284 | 4,968 | 5,129 | ||||||||||
Rent reserves, net | 1,404 | (100) | 3,163 | 516 | ||||||||||
Straight-line rent income, net | (7,872) | (9,873) | (32,592) | (20,124) | ||||||||||
Stock-based compensation | 3,566 | 3,573 | 13,791 | 14,294 | ||||||||||
Unconsolidated JV non-cash items 7 | (206) | (316) | (1,034) | (1,206) | ||||||||||
Normalized FFO adjusted for non-cash items | 149,572 | 155,993 | 592,353 | 430,938 | ||||||||||
2nd generation TI | (18,715) | (13,523) | (66,081) | (33,620) | ||||||||||
Leasing commissions paid | (14,978) | (7,404) | (36,391) | (22,929) | ||||||||||
Capital expenditures | (17,393) | (25,669) | (49,343) | (48,913) | ||||||||||
Total maintenance capex | (51,086) | (46,596) | (151,815) | (105,462) | ||||||||||
FAD | $98,486 | $109,397 | $440,538 | $325,476 | ||||||||||
Quarterly/annual dividends | $118,897 | $119,323 | $477,239 | $285,774 | ||||||||||
FFO wtd avg common shares outstanding - diluted 8 | 383,326 | 383,228 | 383,381 | 254,622 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 8 OF 9 |
Reconciliation of Non-GAAP Measures | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED | ||
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 9 OF 9 |
4Q2023 | ||
Supplemental Information | ||
FURNISHED AS OF FEBRUARY 16, 2024 - 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 | 4Q 2023 SUPPLEMENTAL INFORMATION 3 |
Highlights | ||
NET INCOME AND NORMALIZED FFO |
MERGER COMBINED SAME STORE |
MULTI-TENANT OCCUPANCY AND ABSORPTION |
4Q 2023 | ||||||||
(in thousands, except % and bps) | NOVEMBER 2023 PROJECTION | ACTUAL | ||||||
Total multi-tenant SF | 33,552 | 33,371 | ||||||
Starting occupancy | 85.1 | % | 84.7 | % | ||||
Absorption (SF) | 120-180 | 175 | ||||||
Ending occupancy | 85.4-85.6% | 85.2 | % | |||||
Change in occupancy (bps) | + 30-50 | + 53 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 4 |
Highlights | ||
LEASING |
DISPOSITIONS |
BALANCE SHEET |
DIVIDEND |
EARNINGS CALL |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 5 |
Highlights | ||
GUIDANCE |
ACTUAL | EXPECTED 1Q 2024 | EXPECTED 2024 | ||||||||||||||||||||||||
4Q 2023 | 2023 | LOW | HIGH | LOW | HIGH | |||||||||||||||||||||
Earnings per share | $(0.11) | $(0.74) | $(0.12) | $(0.11) | $(0.60) | $(0.10) | ||||||||||||||||||||
NAREIT FFO per share | $0.36 | $1.43 | $0.35 | $0.36 | $1.42 | $1.48 | ||||||||||||||||||||
Normalized FFO per share | $0.39 | $1.57 | $0.38 | $0.39 | $1.52 | $1.58 | ||||||||||||||||||||
4Q 2023 RUN-RATE NORMALIZED FFO RECONCILIATION | 4Q 2023 | DESCRIPTION | ||||||||||||
4Q 2023 normalized FFO | $150,730 | |||||||||||||
Non-recurring items | (4,730) | Property tax appeals/reductions and refunds | ||||||||||||
4Q 2023 run-rate normalized FFO | $146,000 | |||||||||||||
EXPECTED 2024 | ||||||||||||||
SIGNIFICANT YEAR-OVER-YEAR CHANGES | LOW | HIGH | DESCRIPTION | |||||||||||
Annualized 4Q 2023 run-rate normalized FFO | $584,000 | $584,000 | ||||||||||||
Multi-tenant cash NOI | 21,000 | 29,000 | 3.5% to 4.75% growth | |||||||||||
Single-tenant cash NOI | 1,000 | 3,000 | 0.5% to 1.5% growth | |||||||||||
Straight-line rent | (2,000) | 2,000 | ||||||||||||
Performance based compensation | (5,500) | (3,500) | Return to run-rate | |||||||||||
Interest rate swap maturity | (6,500) | (6,500) | January 2024 expiration of 1.21% | |||||||||||
Re/development and other capital funding | (7,500) | (5,500) | $150-$250 million of dispositions | |||||||||||
Other | — | 1,500 | ||||||||||||
Expected normalized FFO | $584,500 | $604,000 | ||||||||||||
Expected normalized FFO per share | $1.52 | $1.58 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 6 |
Salient Facts 1 | ||
AS OF DECEMBER 31, 2023 |
Properties | |||||||||||
688 properties totaling 40.3M SF | |||||||||||
69 markets in 35 states | |||||||||||
93% managed by Healthcare Realty | |||||||||||
93% outpatient medical facilities | |||||||||||
60% of NOI in Top 15 Markets | |||||||||||
Capitalization | |||||||||||
$11.9B enterprise value as of 12/31/23 | |||||||||||
$6.6B market capitalization as of 12/31/23 | |||||||||||
384.8M shares outstanding (including OP units) | |||||||||||
$0.31 quarterly dividend per share | |||||||||||
BBB/Baa2 S&P/Moody's | |||||||||||
44.2% net debt to enterprise value at 12/31/23 | |||||||||||
6.4x net debt to adjusted EBITDA | |||||||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 7 |
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 | |||||
Deutsche Bank Securities | |||||
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 | 4Q 2023 SUPPLEMENTAL INFORMATION 8 |
Balance Sheet | ||
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ASSETS | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Real estate properties | |||||||||||||||||
Land | $1,343,265 | $1,387,821 | $1,424,453 | $1,412,805 | $1,439,798 | ||||||||||||
Buildings and improvements | 10,881,373 | 11,004,195 | 11,188,821 | 11,196,297 | 11,332,037 | ||||||||||||
Lease intangibles | 836,302 | 890,273 | 922,029 | 929,008 | 959,998 | ||||||||||||
Personal property | 12,718 | 12,686 | 12,615 | 11,945 | 11,907 | ||||||||||||
Investment in financing receivables, net | 122,602 | 120,975 | 121,315 | 120,692 | 120,236 | ||||||||||||
Financing lease right-of-use assets | 82,209 | 82,613 | 83,016 | 83,420 | 83,824 | ||||||||||||
Construction in progress | 60,727 | 85,644 | 53,311 | 42,615 | 35,560 | ||||||||||||
Land held for development | 59,871 | 59,871 | 78,411 | 69,575 | 74,265 | ||||||||||||
Total real estate investments | 13,399,067 | 13,644,078 | 13,883,971 | 13,866,357 | 14,057,625 | ||||||||||||
Less accumulated depreciation and amortization | (2,226,853) | (2,093,952) | (1,983,944) | (1,810,093) | (1,645,271) | ||||||||||||
Total real estate investments, net | 11,172,214 | 11,550,126 | 11,900,027 | 12,056,264 | 12,412,354 | ||||||||||||
Cash and cash equivalents | 25,699 | 24,668 | 35,904 | 49,941 | 60,961 | ||||||||||||
Assets held for sale, net | 8,834 | 57,638 | 151 | 3,579 | 18,893 | ||||||||||||
Operating lease right-of-use assets | 275,975 | 323,759 | 333,224 | 336,112 | 336,983 | ||||||||||||
Investments in unconsolidated joint ventures | 311,511 | 325,453 | 327,245 | 327,746 | 327,248 | ||||||||||||
Other assets, net and goodwill | 842,898 | 822,084 | 797,796 | 795,242 | 693,192 | ||||||||||||
Total assets | $12,637,131 | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Liabilities | |||||||||||||||||
Notes and bonds payable | $4,994,859 | $5,227,413 | $5,340,272 | $5,361,699 | $5,351,827 | ||||||||||||
Accounts payable and accrued liabilities | 211,994 | 204,947 | 196,147 | 155,210 | 244,033 | ||||||||||||
Liabilities of properties held for sale | 295 | 3,814 | 222 | 277 | 437 | ||||||||||||
Operating lease liabilities | 229,714 | 273,319 | 278,479 | 279,637 | 279,895 | ||||||||||||
Financing lease liabilities | 74,503 | 74,087 | 73,629 | 73,193 | 72,939 | ||||||||||||
Other liabilities | 202,984 | 211,365 | 219,694 | 232,029 | 218,668 | ||||||||||||
Total liabilities | 5,714,349 | 5,994,945 | 6,108,443 | 6,102,045 | 6,167,799 | ||||||||||||
Redeemable non-controlling interests | 3,868 | 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 | 3,810 | 3,809 | 3,808 | 3,808 | 3,806 | ||||||||||||
Additional paid-in capital | 9,602,592 | 9,597,629 | 9,595,033 | 9,591,194 | 9,587,637 | ||||||||||||
Accumulated other comprehensive (loss) income | (10,741) | 17,079 | 9,328 | (8,554) | 2,140 | ||||||||||||
Cumulative net income attributable to common stockholders | 1,028,794 | 1,069,327 | 1,137,171 | 1,219,930 | 1,307,055 | ||||||||||||
Cumulative dividends | (3,801,793) | (3,684,144) | (3,565,941) | (3,447,750) | (3,329,562) | ||||||||||||
Total stockholders' equity | 6,822,662 | 7,003,700 | 7,179,399 | 7,358,628 | 7,571,076 | ||||||||||||
Non-controlling interest | 96,252 | 101,888 | 104,018 | 106,211 | 108,742 | ||||||||||||
Total equity | 6,918,914 | 7,105,588 | 7,283,417 | 7,464,839 | 7,679,818 | ||||||||||||
Total liabilities and stockholders' equity | $12,637,131 | $13,103,728 | $13,394,347 | $13,568,884 | $13,849,631 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 9 |
Statements of Income | ||
DOLLARS IN THOUSANDS | ||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Revenues | |||||||||||||||||
Rental income | $322,076 | $333,335 | $329,680 | $324,093 | $329,399 | ||||||||||||
Interest income | 4,422 | 4,264 | 4,233 | 4,214 | 4,227 | ||||||||||||
Other operating | 3,943 | 4,661 | 4,230 | 4,618 | 4,436 | ||||||||||||
330,441 | 342,260 | 338,143 | 332,925 | 338,062 | |||||||||||||
Expenses | |||||||||||||||||
Property operating | 121,362 | 131,639 | 125,395 | 122,040 | 117,009 | ||||||||||||
General and administrative | 14,609 | 13,396 | 15,464 | 14,935 | 14,417 | ||||||||||||
Normalizing items 1 | (1,445) | — | (275) | — | — | ||||||||||||
Normalized general and administrative | 13,164 | 13,396 | 15,189 | 14,935 | 14,417 | ||||||||||||
Acquisition and pursuit costs 2 | 301 | 769 | 669 | 287 | 92 | ||||||||||||
Merger-related costs | 1,414 | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||||
Depreciation and amortization | 180,049 | 182,989 | 183,193 | 184,479 | 185,275 | ||||||||||||
317,735 | 336,243 | 309,051 | 326,596 | 327,570 | |||||||||||||
Other income (expense) | |||||||||||||||||
Interest expense before merger-related fair value | (52,387) | (55,637) | (54,780) | (52,895) | (52,464) | ||||||||||||
Merger-related fair value adjustment | (10,800) | (10,667) | (10,554) | (10,864) | (11,979) | ||||||||||||
Interest expense | (63,187) | (66,304) | (65,334) | (63,759) | (64,443) | ||||||||||||
Gain on sales of real estate properties | 20,573 | 48,811 | 7,156 | 1,007 | 73,083 | ||||||||||||
Gain on extinguishment of debt | — | 62 | — | — | 119 | ||||||||||||
Impairment of real estate assets and credit loss reserves | (11,403) | (56,873) | (55,215) | (31,422) | (54,452) | ||||||||||||
Equity (loss) gain from unconsolidated joint ventures | (430) | (456) | (17) | (780) | 89 | ||||||||||||
Interest and other income (expense), net | 65 | 139 | 592 | 547 | (1,168) | ||||||||||||
(54,382) | (74,621) | (112,818) | (94,407) | (46,772) | |||||||||||||
Net (loss) income | $(41,676) | $(68,604) | $(83,726) | $(88,078) | $(36,280) | ||||||||||||
Net loss (income) attributable to non-controlling interests | 1,143 | 760 | 967 | 953 | 516 | ||||||||||||
Net (loss) income attributable to common stockholders | $(40,533) | $(67,844) | $(82,759) | $(87,125) | $(35,764) | ||||||||||||
Basic earnings per common share | $(0.11) | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||||
Diluted earnings per common share | $(0.11) | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||||
Weighted average common shares outstanding - basic | 379,044 | 378,925 | 378,897 | 378,840 | 378,617 | ||||||||||||
Weighted average common shares outstanding - diluted 3 | 379,044 | 378,925 | 378,897 | 378,840 | 378,617 | ||||||||||||
STATEMENTS OF INCOME SUPPLEMENTAL INFORMATION | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Interest income | |||||||||||||||||
Financing receivables | $2,132 | $2,002 | $2,053 | $2,144 | $2,203 | ||||||||||||
Interest on mortgage and mezzanine loans | 2,290 | 2,262 | 2,180 | 2,070 | 2,024 | ||||||||||||
Total | $4,422 | $4,264 | $4,233 | $4,214 | $4,227 | ||||||||||||
Other operating income | |||||||||||||||||
Parking income | $2,392 | $2,751 | $2,370 | $2,391 | $2,413 | ||||||||||||
Management fee and miscellaneous income | 1,551 | 1,910 | 1,860 | 2,227 | 2,023 | ||||||||||||
Total | $3,943 | $4,661 | $4,230 | $4,618 | $4,436 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 10 |
FFO, Normalized FFO, & FAD 1,2,3 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Net (loss) income attributable to common stockholders | $(40,533) | $(67,844) | $(82,759) | $(87,125) | $(35,764) | ||||||||||||
Net loss attributable to common stockholders per diluted share 3 | $(0.11) | $(0.18) | $(0.22) | $(0.23) | $(0.10) | ||||||||||||
Gain on sales of real estate assets | $(20,573) | $(48,811) | $(7,156) | $(1,007) | (73,083) | ||||||||||||
Impairments of real estate assets | 11,403 | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||||
Real estate depreciation and amortization | 182,272 | 185,143 | 185,003 | 186,109 | 186,658 | ||||||||||||
Non-controlling loss from partnership units | (491) | (841) | (1,027) | (1,067) | (382) | ||||||||||||
Unconsolidated JV depreciation and amortization | 4,442 | 4,421 | 4,412 | 4,841 | 4,020 | ||||||||||||
FFO adjustments | $177,053 | $196,785 | $236,447 | $215,103 | $171,665 | ||||||||||||
FFO adjustments per common share - diluted | $0.46 | $0.51 | $0.62 | $0.56 | $0.45 | ||||||||||||
FFO | $136,520 | $128,941 | $153,688 | $127,978 | $135,901 | ||||||||||||
FFO per common share - diluted | $0.36 | $0.34 | $0.40 | $0.33 | $0.35 | ||||||||||||
Acquisition and pursuit costs | 301 | 769 | 669 | 287 | 92 | ||||||||||||
Merger-related costs | 1,414 | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||||
Lease intangible amortization | 261 | 213 | 240 | 146 | 137 | ||||||||||||
Non-routine legal costs/forfeited earnest money received | (100) | — | 275 | — | 194 | ||||||||||||
Debt financing costs | — | (62) | — | — | 625 | ||||||||||||
Severance costs | 1,445 | — | — | — | — | ||||||||||||
Allowance for credit losses 4 | — | — | — | 8,599 | — | ||||||||||||
Merger-related fair value adjustment | 10,800 | 10,667 | 10,554 | 10,864 | 11,979 | ||||||||||||
Unconsolidated JV normalizing items 5 | 89 | 90 | 93 | 117 | 96 | ||||||||||||
Normalized FFO adjustments | $14,210 | $19,127 | $(3,839) | $24,868 | $23,900 | ||||||||||||
Normalized FFO adjustments per common share - diluted | $0.04 | $0.05 | $(0.01) | $0.06 | $0.06 | ||||||||||||
Normalized FFO | $150,730 | $148,068 | $149,849 | $152,846 | $159,801 | ||||||||||||
Normalized FFO per common share - diluted | $0.39 | $0.39 | $0.39 | $0.40 | $0.42 | ||||||||||||
Non-real estate depreciation and amortization | 685 | 475 | 802 | 604 | 624 | ||||||||||||
Non-cash interest amortization, net 6 | 1,265 | 1,402 | 1,618 | 682 | 2,284 | ||||||||||||
Rent reserves, net | 1,404 | 442 | (54) | 1,371 | (100) | ||||||||||||
Straight-line rent income, net | (7,872) | (8,470) | (8,005) | (8,246) | (9,873) | ||||||||||||
Stock-based compensation | 3,566 | 2,556 | 3,924 | 3,745 | 3,573 | ||||||||||||
Unconsolidated JV non-cash items 7 | (206) | (231) | (316) | (227) | (316) | ||||||||||||
Normalized FFO adjusted for non-cash items | 149,572 | 144,242 | 147,818 | 150,775 | 155,993 | ||||||||||||
2nd generation TI | (18,715) | (21,248) | (17,236) | (8,882) | (13,523) | ||||||||||||
Leasing commissions paid | (14,978) | (8,907) | (5,493) | (7,013) | (7,404) | ||||||||||||
Capital expenditures | (17,393) | (14,354) | (8,649) | (8,946) | (25,669) | ||||||||||||
Total maintenance capex | (51,086) | (44,509) | (31,378) | (24,841) | (46,596) | ||||||||||||
FAD | $98,486 | $99,733 | $116,440 | $125,934 | $109,397 | ||||||||||||
Quarterly dividends and OP distributions | $118,897 | $119,456 | $119,444 | $119,442 | $119,323 | ||||||||||||
FFO wtd avg common shares outstanding - diluted 8 | 383,326 | 383,428 | 383,409 | 383,335 | 383,228 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 11 |
Capital Funding & Commitments | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ACQUISITION AND RE/DEVELOPMENT FUNDING | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Acquisitions 1 | $— | $11,450 | $— | $31,500 | $26,388 | ||||||||||||
Re/development 2 | 32,272 | 30,945 | 32,068 | 16,928 | 23,372 | ||||||||||||
1st generation TI & acquisition capex 3 | 7,632 | 9,013 | 10,258 | 11,870 | 21,218 | ||||||||||||
MAINTENANCE CAPITAL EXPENDITURES FUNDING | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
2nd generation TI | $18,715 | $21,248 | $17,236 | $8,882 | $13,523 | ||||||||||||
Leasing commissions paid | 14,978 | 8,907 | 5,493 | 7,013 | 7,404 | ||||||||||||
Capital expenditures | 17,393 | 14,354 | 8,649 | 8,946 | 25,669 | ||||||||||||
$51,086 | $44,509 | $31,378 | $24,841 | $46,596 | |||||||||||||
% of Cash NOI | |||||||||||||||||
2nd generation TI | 9.2 | % | 10.4 | % | 8.3 | % | 4.2 | % | 6.4 | % | |||||||
Leasing commissions paid | 7.3 | % | 4.4 | % | 2.6 | % | 3.3 | % | 3.5 | % | |||||||
Capital expenditures | 8.5 | % | 7.0 | % | 4.2 | % | 4.3 | % | 12.1 | % | |||||||
25.0 | % | 21.8 | % | 15.1 | % | 11.8 | % | 22.0 | % | ||||||||
LEASING COMMITMENTS 4 | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Renewals | |||||||||||||||||
Square feet | 582,239 | 625,762 | 638,587 | 949,285 | 623,363 | ||||||||||||
2nd generation TI/square foot/lease year | $1.89 | $1.76 | $1.64 | $1.84 | $1.90 | ||||||||||||
Leasing commissions/square foot/lease year | $1.66 | $1.48 | $1.19 | $0.87 | $0.78 | ||||||||||||
Renewal commitments as a % of annual net rent | 12.7 | % | 13.1 | % | 12.8 | % | 11.5 | % | 11.7 | % | |||||||
WALT (in months) 5 | 43.1 | 42.1 | 56.7 | 56.8 | 51.7 | ||||||||||||
New leases | |||||||||||||||||
Square feet | 315,243 | 344,524 | 205,565 | 274,344 | 297,340 | ||||||||||||
2nd generation TI/square foot/lease year | $5.98 | $5.57 | $7.11 | $4.44 | $6.25 | ||||||||||||
Leasing commissions/square foot/lease year | $1.72 | $1.81 | $1.40 | $0.83 | $1.49 | ||||||||||||
New lease commitments as a % of annual net rent | 33.4 | % | 32.1 | % | 45.0 | % | 21.6 | % | 36.2 | % | |||||||
WALT (in months) 5 | 90.2 | 85.8 | 81.3 | 84.7 | 72.7 | ||||||||||||
All | |||||||||||||||||
Square feet | 897,482 | 970,286 | 844,152 | 1,223,629 | 920,703 | ||||||||||||
Leasing commitments as a % of annual net rent | 21.9 | % | 22.6 | % | 21.7 | % | 14.7 | % | 21.0 | % | |||||||
WALT (in months) 5 | 59.6 | 57.6 | 62.7 | 63.1 | 58.4 | ||||||||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 12 |
Debt Metrics1 | ||
DOLLARS IN THOUSANDS | ||
SUMMARY OF INDEBTEDNESS AS OF DECEMBER 31, 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 | $249,484 | 5/1/2025 | 16 | $2,470 | $2,422 | 3.88 | % | 4.12 | % | |||||||||||||||||||
600,000 | 579,017 | 8/1/2026 | 31 | 7,142 | 5,250 | 3.50 | % | 4.94 | % | Y | |||||||||||||||||||
500,000 | 483,727 | 7/1/2027 | 42 | 5,750 | 4,688 | 3.75 | % | 4.76 | % | Y | |||||||||||||||||||
300,000 | 297,429 | 1/15/2028 | 49 | 2,783 | 2,719 | 3.63 | % | 3.85 | % | ||||||||||||||||||||
650,000 | 575,443 | 2/15/2030 | 74 | 7,598 | 5,037 | 3.10 | % | 5.30 | % | Y | |||||||||||||||||||
299,500 | 296,780 | 3/15/2030 | 75 | 1,928 | 1,797 | 2.40 | % | 2.72 | % | ||||||||||||||||||||
299,785 | 295,832 | 3/15/2031 | 87 | 1,591 | 1,535 | 2.05 | % | 2.25 | % | ||||||||||||||||||||
800,000 | 649,521 | 3/15/2031 | 87 | 8,288 | 4,000 | 2.00 | % | 5.13 | % | Y | |||||||||||||||||||
$3,699,285 | $3,427,233 | 59 | $37,550 | $27,448 | 2.97 | % | 4.43 | % | |||||||||||||||||||||
TERM LOANS | $350,000 | $349,798 | 7/20/2025 | 19 | $5,703 | $5,703 | SOFR + 1.05% | 6.39 | % | ||||||||||||||||||||
200,000 | 199,903 | 5/31/2026 | 29 | 3,259 | 3,259 | SOFR + 1.05% | 6.39 | % | |||||||||||||||||||||
150,000 | 149,643 | 6/1/2026 | 29 | 2,445 | 2,445 | SOFR + 1.05% | 6.39 | % | |||||||||||||||||||||
300,000 | 299,958 | 10/31/2026 | 34 | 4,888 | 4,888 | SOFR + 1.05% | 6.39 | % | |||||||||||||||||||||
200,000 | 199,502 | 7/20/2027 | 42 | 3,259 | 3,259 | SOFR + 1.05% | 6.39 | % | |||||||||||||||||||||
300,000 | 298,288 | 1/20/2028 | 48 | 4,888 | 4,888 | SOFR + 1.05% | 6.39 | % | |||||||||||||||||||||
$1,500,000 | $1,497,092 | 33 | $24,442 | $24,442 | 6.39 | % | |||||||||||||||||||||||
$1.5B CREDIT FACILITY | $0 | $0 | 10/31/2027 | 46 | $3,892 | $3,892 | SOFR + 0.95% | 6.31 | % | ||||||||||||||||||||
MORTGAGES | $70,752 | $70,534 | various | 19 | $754 | $791 | 4.17 | % | 4.15 | % | |||||||||||||||||||
$5,270,037 | $4,994,859 | 49 | $66,638 | $56,573 | 3.96 | % | 5.02 | % | $2,550,000 | ||||||||||||||||||||
Interest rate swaps | (5,763) | (5,763) | |||||||||||||||||||||||||||
Interest cost capitalization | (884) | — | |||||||||||||||||||||||||||
Unsecured credit facility fee & deferred financing costs | 1,265 | 946 | |||||||||||||||||||||||||||
Amortization of fair value of swap maturing January 2024 | 997 | — | 1.21 | % | 3.21 | % | Y | ||||||||||||||||||||||
Financing right-of-use asset amortization | 934 | — | |||||||||||||||||||||||||||
$63,187 | $51,756 |
DEBT MATURITIES SCHEDULE AS OF DECEMBER 31, 2023 | ||||||||||||||||||||
PRINCIPAL PAYMENTS | ||||||||||||||||||||
BANK LOANS | SENIOR NOTES | MORTGAGE NOTES | TOTAL | WA RATE | ||||||||||||||||
2024 | $25,473 | $25,473 | 4.39 | % | ||||||||||||||||
2025 | $350,000 | $250,000 | 16,375 | 616,375 | 5.31 | % | ||||||||||||||
2026 | $650,000 | $600,000 | 28,904 | 1,278,904 | 4.96 | % | ||||||||||||||
2027 | 200,000 | 500,000 | 700,000 | 4.51 | % | |||||||||||||||
2028 | 300,000 | 300,000 | 600,000 | 5.01 | % | |||||||||||||||
Thereafter | 2,049,285 | 2,049,285 | 2.41 | % | ||||||||||||||||
Total | $1,500,000 | $3,699,285 | $70,752 | $5,270,037 | 3.96 | % | ||||||||||||||
Fixed rate debt balance 3 | $1,075,000 | $3,699,285 | $70,752 | $4,845,037 | ||||||||||||||||
% fixed rate debt to net debt 3 | 92.4 | % | ||||||||||||||||||
Company share of JV net debt | $24,284 | |||||||||||||||||||
INTEREST RATE SWAPS | ||||||||
MATURITY | AMOUNT | FIXED SOFR RATE | ||||||
January 2024 | 200,000 | 1.21 | % | |||||
May 2026 | 275,000 | 3.74 | % | |||||
June 2026 | 150,000 | 3.83 | % | |||||
December 2026 | 150,000 | 3.84 | % | |||||
June 2027 | 200,000 | 4.27 | % | |||||
December 2027 | 300,000 | 3.93 | % | |||||
As of 12/31/2023 | $1,275,000 | 3.49 | % | |||||
Subsequent activity: | ||||||||
Expiring Jan 2024 | (200,000) | (1.21 | %) | |||||
As of 2/1/2024 | $1,075,000 | 3.92 | % | |||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 13 |
Debt Covenants & Liquidity | ||
DOLLARS IN THOUSANDS | ||
SELECTED FINANCIAL DEBT COVENANTS YEAR ENDED DECEMBER 31, 2023 1 | |||||||||||
CALCULATION | REQUIREMENT | PER DEBT COVENANTS | |||||||||
Revolving credit facility and term loan | |||||||||||
Leverage ratio | Total debt/total capital | Not greater than 60% | 37.5 | % | |||||||
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% | 40.0 | % | |||||||
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% | 8.3 | % | |||||||
Senior Notes | |||||||||||
Incurrence of total debt | Total debt/total assets | Not greater than 60% | 37.5 | % | |||||||
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% | 263.9 | % | |||||||
Debt service coverage | EBITDA/interest expense | Not less than 1.5x | 3.2x | ||||||||
Other | |||||||||||
Net debt to adjusted EBITDA 2 | Net debt (debt less cash)/adjusted EBITDA | Not required | 6.4x | ||||||||
Net debt to enterprise value 3 | Net debt/enterprise value | Not required | 44.2 | % |
LIQUIDITY SOURCES | |||||
Cash | $25,699 | ||||
Unsecured credit facility availability | 1,500,000 | ||||
Consolidated unencumbered assets (gross) 4 | 13,216,513 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 14 |
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 | % | ||||||||||||||||
Total | 2 | 158,637 | 97 | % | $42,950 | 100 | % | |||||||||||||||||||
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 | % | 25,140 | |||||||||||
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 | |||||||||||
Evansville, IN 7 | MOB | 11/13/2023 | 260,520 | 100 | % | 18,550 | |||||||||||
Houston, TX | HOSPITAL | 12/1/2023 | 83,223 | — | % | 3,900 | |||||||||||
Charleston, SC 8 | OFFICE | 12/15/2023 | 15,014 | 100 | % | 5,760 | |||||||||||
Dallas, TX | MOB | 12/20/2023 | 77,827 | 100 | % | 41,640 | |||||||||||
Los Angeles, CA | OFFICE | 12/21/2023 | 104,377 | — | % | 17,830 | |||||||||||
Tucson, AZ 9,10 | MOB | 12/22/2023 | 215,471 | 72 | % | 38,990 | |||||||||||
Miami, FL | MOB | 12/22/2023 | 48,000 | 91 | % | 17,330 | |||||||||||
Sebring, FL | MOB | 12/27/2023 | 38,949 | 100 | % | 9,420 | |||||||||||
Boston, MA | MOB | 12/28/2023 | 161,254 | 100 | % | 114,770 | |||||||||||
Jacksonville/Orlando/Miami, FL 11,12 | SNF | 12/29/2023 | 354,500 | 100 | % | 69,730 | |||||||||||
Total | 2,021,329 | 84 | % | $656,230 | |||||||||||||
Average cap rate 13 | 6.6 | % |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 15 |
Re/development Activity | ||
DOLLARS IN THOUSANDS | ||
RE/DEVELOPMENT PROJECTS | ||||||||||||||||||||
MARKET | ASSOCIATED HEALTH SYSTEM | SQUARE FEET | CURRENT LEASED % | BUDGET | COST TO COMPLETE | ESTIMATED COMPLETION/INITIAL LEASE COMMENCEMENT | ||||||||||||||
Active development | ||||||||||||||||||||
Nashville, TN | Ascension | 106,194 | 50 | % | $44,000 | $6,670 | 3Q 2023 | |||||||||||||
Orlando, FL 1 | Advent Health | 156,566 | 78 | % | 65,000 | 32,320 | 2Q 2025 | |||||||||||||
Raleigh, NC | UNC REX Health | 120,694 | 42 | % | 52,600 | 19,208 | 4Q 2024 | |||||||||||||
Phoenix, AZ | HonorHealth | 101,000 | 80 | % | 54,000 | 32,659 | 4Q 2024 | |||||||||||||
Total development | 484,454 | 63 | % | $215,600 | $90,857 | |||||||||||||||
Projected stabilized yield - 6.5%-8.0% | ||||||||||||||||||||
Estimated stabilization period post completion - 12 - 36 months | ||||||||||||||||||||
Active redevelopment | ||||||||||||||||||||
Washington, DC | Inova Health | 259,290 | 85 | % | $21,200 | $10,424 | 2Q 2024 | |||||||||||||
Houston, TX | HCA | 314,861 | 61 | % | 30,000 | 24,317 | 4Q 2025 | |||||||||||||
Charlotte, NC | Novant Health | 169,135 | 54 | % | 18,700 | 14,810 | 1Q 2026 | |||||||||||||
Washington, DC | Inova Health | 57,323 | 67 | % | 10,078 | 5,295 | 1Q 2026 | |||||||||||||
Total redevelopment | 800,609 | 68 | % | $79,978 | $54,846 | |||||||||||||||
Occupied % | 63 | % | ||||||||||||||||||
Projected stabilized yield - 9.0%-12.0% | ||||||||||||||||||||
Estimated stabilization period post completion - 12 - 36 months | ||||||||||||||||||||
Total active re/development projects | 1,285,063 | 66 | % | $295,578 | $145,703 | |||||||||||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 16 |
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 | 43 | 3,230,488 | 146,519 | 199,800 | 3,576,807 | 226,076 | 3,802,883 | 8.9 | % | 8.9 | % | |||||||||||||||||||||||||||||
Seattle, WA | 15 | 29 | 1,592,501 | 1,592,501 | 1,592,501 | 6.3 | % | 15.2 | % | ||||||||||||||||||||||||||||||||
Houston, TX | 5 | 31 | 2,351,135 | 67,500 | 2,418,635 | 2,418,635 | 4.6 | % | 19.8 | % | |||||||||||||||||||||||||||||||
Denver, CO | 19 | 33 | 1,780,819 | 93,869 | 1,874,688 | 116,616 | 1,991,304 | 4.4 | % | 24.2 | % | ||||||||||||||||||||||||||||||
Charlotte, NC | 22 | 32 | 1,792,908 | 1,792,908 | 1,792,908 | 4.3 | % | 28.5 | % | ||||||||||||||||||||||||||||||||
Los Angeles, CA | 2 | 20 | 1,034,336 | 63,000 | 1,097,336 | 702,453 | 1,799,789 | 4.1 | % | 32.6 | % | ||||||||||||||||||||||||||||||
Atlanta, GA | 9 | 27 | 1,423,141 | 1,423,141 | 1,423,141 | 3.9 | % | 36.5 | % | ||||||||||||||||||||||||||||||||
Boston, MA | 11 | 17 | 806,410 | 806,410 | 806,410 | 3.6 | % | 40.1 | % | ||||||||||||||||||||||||||||||||
Miami, FL | 7 | 18 | 1,196,531 | 1,196,531 | 1,196,531 | 3.2 | % | 43.3 | % | ||||||||||||||||||||||||||||||||
Nashville, TN | 36 | 13 | 1,241,872 | 108,691 | 1,350,563 | 1,350,563 | 3.0 | % | 46.3 | % | |||||||||||||||||||||||||||||||
Raleigh, NC | 42 | 28 | 1,109,582 | 1,109,582 | 1,109,582 | 2.9 | % | 49.2 | % | ||||||||||||||||||||||||||||||||
Phoenix, AZ | 10 | 35 | 1,512,304 | 1,512,304 | 1,512,304 | 2.9 | % | 52.1 | % | ||||||||||||||||||||||||||||||||
Austin, TX | 29 | 13 | 863,700 | 863,700 | 863,700 | 2.6 | % | 54.7 | % | ||||||||||||||||||||||||||||||||
Tampa. FL | 18 | 19 | 971,975 | 971,975 | 971,975 | 2.6 | % | 57.3 | % | ||||||||||||||||||||||||||||||||
Indianapolis, IN | 33 | 40 | 1,162,955 | 61,398 | 1,224,353 | 273,479 | 1,497,832 | 2.5 | % | 59.8 | % | ||||||||||||||||||||||||||||||
New York, NY | 1 | 15 | 704,415 | 704,415 | 704,415 | 2.1 | % | 61.9 | % | ||||||||||||||||||||||||||||||||
San Francisco, CA | 12 | 6 | 452,666 | 452,666 | 110,865 | 563,531 | 1.9 | % | 63.8 | % | |||||||||||||||||||||||||||||||
Memphis, TN | 43 | 11 | 802,221 | 54,416 | 856,637 | 856,637 | 1.9 | % | 65.7 | % | |||||||||||||||||||||||||||||||
Chicago, IL | 3 | 6 | 607,845 | 607,845 | 607,845 | 1.9 | % | 67.6 | % | ||||||||||||||||||||||||||||||||
Honolulu, HI | 56 | 6 | 439,500 | 439,500 | 439,500 | 1.8 | % | 69.4 | % | ||||||||||||||||||||||||||||||||
Other (49 markets) | 212 | 10,719,447 | 540,974 | 1,228,363 | 12,488,784 | 519,911 | 13,008,695 | 30.6 | % | 100.0 | % | ||||||||||||||||||||||||||||||
Total | 654 | 35,796,751 | 933,807 | 1,630,723 | 38,361,281 | 1,949,400 | 40,310,681 | 100.0 | % | ||||||||||||||||||||||||||||||||
Number of properties | 631 | 15 | 8 | 654 | 34 | 688 | |||||||||||||||||||||||||||||||||||
% of square feet | 93.3 | % | 2.4 | % | 4.3 | % | 100.0 | % | |||||||||||||||||||||||||||||||||
% multi-tenant | 85.8 | % | — | % | 64.3 | % | 82.8 | % | |||||||||||||||||||||||||||||||||
Investment | $12,244,036 | $439,464 | $467,182 | $13,150,683 | |||||||||||||||||||||||||||||||||||||
Quarterly cash NOI 1 | $179,830 | $8,181 | $6,442 | $194,453 | |||||||||||||||||||||||||||||||||||||
% of cash NOI | 92.5 | % | 4.2 | % | 3.3 | % | 100.0 | % |
BY OWNERSHIP AND TENANT TYPE | |||||||||||||||||
WHOLLY OWNED | JOINT VENTURES3 | ||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | MULTI-TENANT | SINGLE-TENANT | TOTAL | |||||||||||||
Number of properties | 528 | 126 | 24 | 10 | 688 | ||||||||||||
Square feet | 31,776,412 | 6,584,869 | 1,594,634 | 354,766 | 40,310,681 | ||||||||||||
% of square feet | 78.8 | % | 16.3 | % | 4.0 | % | 0.9 | % | 100.0 | % | |||||||
Investment 1 | $10,407,242 | $2,743,441 | $276,127 | $83,510 | $13,510,320 | ||||||||||||
Quarterly cash NOI 1 | $151,160 | $43,292 | $3,503 | $1,255 | $199,210 | ||||||||||||
% of cash NOI | 75.9 | % | 21.7 | % | 1.8 | % | 0.6 | % | 100.0 | % |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 17 |
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 | 8.9 | % | 786,142 | 2.5 | % | 133 | ||||||||||||||||||||
CommonSpirit | 4 | A-/Baa1 | 1,953,665 | 636,320 | 2,589,985 | 45 | 7.1 | % | 909,512 | 2.9 | % | 164 | ||||||||||||||||||||
Baylor Scott & White | 21 | AA-/Aa3 | 2,570,180 | 66,376 | 2,636,556 | 29 | 6.8 | % | 1,266,687 | 4.1 | % | 193 | ||||||||||||||||||||
Ascension Health | 3 | AA+/Aa2 | 2,262,563 | 97,551 | 2,360,114 | 25 | 5.8 | % | 929,333 | 3.0 | % | 145 | ||||||||||||||||||||
Advocate Health | 14 | AA/Aa3 | 790,317 | 496,198 | 1,286,515 | 20 | 4.1 | % | 1,128,837 | 3.6 | % | 96 | ||||||||||||||||||||
Tenet Healthcare Corporation | 6 | B+/B1 | 1,216,425 | 376,410 | 1,592,835 | 26 | 3.7 | % | 396,589 | 1.3 | % | 83 | ||||||||||||||||||||
Wellstar Health System | 75 | A+/A2 | 896,773 | 23,088 | 919,861 | 18 | 2.8 | % | 582,754 | 1.9 | % | 81 | ||||||||||||||||||||
UW Medicine (Seattle) | 91 | AA+/Aaa | 461,363 | 169,709 | 631,072 | 10 | 2.7 | % | 294,971 | 0.9 | % | 32 | ||||||||||||||||||||
AdventHealth | 11 | AA/Aa2 | 758,638 | 118,585 | 877,223 | 13 | 2.6 | % | 372,649 | 1.2 | % | 78 | ||||||||||||||||||||
Baptist Memorial Health Care | 89 | A-2/-- | 544,122 | 252,414 | 796,536 | 10 | 2.1 | % | 430,579 | 1.4 | % | 57 | ||||||||||||||||||||
Community Health Systems | 8 | CCC+/Caa2 | 785,169 | — | 785,169 | 16 | 2.0 | % | 353,558 | 1.1 | % | 45 | ||||||||||||||||||||
Providence St. Joseph Health | 5 | A/A2 | 330,287 | 31,601 | 361,888 | 8 | 1.7 | % | 137,032 | 0.4 | % | 25 | ||||||||||||||||||||
Cedars-Sinai Health Systems | 51 | AA-/Aa3 | 199,701 | 90,607 | 290,308 | 5 | 1.6 | % | 65,278 | 0.2 | % | 21 | ||||||||||||||||||||
Trinity Health | 7 | AA-/Aa3 | 678,920 | 22,956 | 701,876 | 11 | 1.6 | % | 354,279 | 1.1 | % | 54 | ||||||||||||||||||||
Hawaii Pacific Health | 181 | --/A1 | 173,502 | 124,925 | 298,427 | 3 | 1.5 | % | 98,398 | 0.3 | % | 39 | ||||||||||||||||||||
Banner Health | 24 | AA-/-- | 749,075 | 31,039 | 780,114 | 24 | 1.4 | % | 134,107 | 0.4 | % | 34 | ||||||||||||||||||||
WakeMed | 185 | --/A2 | 373,980 | 101,597 | 475,577 | 13 | 1.4 | % | 144,265 | 0.5 | % | 21 | ||||||||||||||||||||
Bon Secours Health System | 22 | A+/A2 | 405,945 | — | 405,945 | 6 | 1.3 | % | 242,817 | 0.8 | % | 50 | ||||||||||||||||||||
Overlake Health System | 291 | BBB+/Baa1 | 230,710 | — | 230,710 | 3 | 1.2 | % | 73,676 | 0.2 | % | 8 | ||||||||||||||||||||
UNC Health Care | 62 | A+/Aa3 | 273,186 | 84,886 | 358,072 | 8 | 1.1 | % | 219,400 | 0.7 | % | 27 | ||||||||||||||||||||
Sutter Health | 12 | A+/A1 | 175,591 | 76,507 | 252,098 | 3 | 1.1 | % | 93,229 | 0.3 | % | 19 | ||||||||||||||||||||
Other (70 credit rated) | 6,377,613 | 3,390,143 | 9,767,756 | 191 | 25.9 | % | 4,153,411 | 13.3 | % | |||||||||||||||||||||||
Subtotal - credit rated 5 | 24,475,694 | 6,970,200 | 31,445,894 | 533 | 88.4 | % | 13,167,503 | 42.1 | % | |||||||||||||||||||||||
Other non-credit rated 6 | 1,319,416 | 612,886 | 1,932,302 | 39 | 6.5 | % | 860,198 | 2.8 | % | |||||||||||||||||||||||
Off-campus non-affiliated 7 | — | 2,418,555 | 2,418,555 | 59 | 5.1 | % | — | — | % | |||||||||||||||||||||||
Wholly-owned | 25,795,110 | 10,001,641 | 35,796,751 | 631 | 100.0 | % | 14,027,701 | 44.9 | % | |||||||||||||||||||||||
Joint ventures | 1,143,456 | 579,868 | 1,723,324 | |||||||||||||||||||||||||||||
Total | 26,938,566 | 10,581,509 | 37,520,075 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 18 |
MOB Proximity to Hospital 1,2 | ||
MOB BY LOCATION | ||||||||||||||
# OF PROPERTIES | SQUARE FEET | TOTAL | % GROUND LEASED | |||||||||||
On campus | 235 | 18,176,920 | 48.4 | % | 37.3 | % | ||||||||
Adjacent to campus 3 | 186 | 8,761,646 | 23.4 | % | 3.5 | % | ||||||||
Total on/adjacent | 421 | 26,938,566 | 71.8 | % | 40.8 | % | ||||||||
Off campus - affiliated 4 | 175 | 8,029,593 | 21.4 | % | 3.7 | % | ||||||||
Off campus | 62 | 2,551,916 | 6.8 | % | 0.6 | % | ||||||||
658 | 37,520,075 | 100.0 | % | 45.1 | % | |||||||||
Wholly-owned | 631 | 35,796,751 | ||||||||||||
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 | 26,248,018 | 70.0 | % | 391 | 22,899,795 | 72.3 | % | ||||||||||||
Non-clustered | 184 | 11,272,057 | 30.0 | % | 126 | 8,758,455 | 27.7 | % | ||||||||||||
Total | 658 | 37,520,075 | 100.0 | % | 517 | 31,658,250 | 100.0 | % |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 19 |
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 | 412,192 | 3,589 | 415,781 | 1.2 | % | 24,104 | 391,677 | 188 | |||||||||||||||
Q1 2024 | 1,538,828 | 498,970 | 2,037,798 | 5.8 | % | 25,140 | 2,012,658 | 430 | |||||||||||||||
Q2 2024 | 1,068,131 | 78,584 | 1,146,715 | 3.3 | % | 55,305 | 1,091,410 | 348 | |||||||||||||||
Q3 2024 | 1,098,420 | 456,522 | 1,554,942 | 4.4 | % | 111,398 | 1,443,544 | 345 | |||||||||||||||
Q4 2024 | 1,044,123 | 104,517 | 1,148,640 | 3.3 | % | 28,977 | 1,119,663 | 296 | |||||||||||||||
2025 | 3,807,315 | 956,710 | 4,764,025 | 13.5 | % | 179,899 | 4,584,126 | 1,097 | |||||||||||||||
2026 | 3,898,898 | 304,579 | 4,203,477 | 11.9 | % | 122,587 | 4,080,890 | 1,059 | |||||||||||||||
2027 | 3,346,972 | 999,428 | 4,346,400 | 12.3 | % | 152,639 | 4,193,761 | 853 | |||||||||||||||
2028 | 3,128,365 | 709,194 | 3,837,559 | 10.9 | % | 106,363 | 3,731,196 | 834 | |||||||||||||||
2029 | 1,767,614 | 616,449 | 2,384,063 | 6.8 | % | 342,627 | 2,041,436 | 400 | |||||||||||||||
2030 | 1,859,314 | 756,694 | 2,616,008 | 7.4 | % | 87,788 | 2,528,220 | 366 | |||||||||||||||
2031 | 1,090,010 | 137,827 | 1,227,837 | 3.5 | % | 29,760 | 1,198,077 | 252 | |||||||||||||||
2032 | 1,840,390 | 361,573 | 2,201,963 | 6.2 | % | 62,415 | 2,139,548 | 295 | |||||||||||||||
2033 | 955,127 | 207,370 | 1,162,497 | 3.3 | % | 40,812 | 1,121,685 | 202 | |||||||||||||||
Thereafter | 1,592,872 | 628,928 | 2,221,800 | 6.2 | % | 311,401 | 1,910,399 | 204 | |||||||||||||||
Total occupied | 28,448,571 | 6,820,934 | 35,269,505 | 87.5 | % | 1,681,215 | 33,588,290 | 7,169 | |||||||||||||||
Total building | 33,371,046 | 6,939,635 | 40,310,681 | 1,949,400 | 38,361,281 | ||||||||||||||||||
Occupancy | 85.2 | % | 98.3 | % | 87.5 | % | 86.2 | % | 87.6 | % | |||||||||||||
Leased % | 87.3 | % | 98.3 | % | 89.2 | % | 86.7 | % | 89.3 | % | |||||||||||||
WALTR (months) 3 | 49.3 | 62.6 | 51.9 | 50.5 | |||||||||||||||||||
WALT (months) 3 | 95.7 | 137.2 | 103.7 | 102.0 |
LEASING ACTIVITY | ||||||||
Q4 2023 | ||||||||
ABSORPTION ACTIVITY | SQUARE FEET | |||||||
Occupied square feet, beginning of period | 35,929,113 | |||||||
Dispositions | (837,582) | |||||||
Expirations and early vacates | (1,045,118) | |||||||
Renewals, amendments and extensions | 702,550 | |||||||
New lease commencements | 520,542 | |||||||
Absorption | 177,974 | |||||||
Occupied square feet, end of period | 35,269,505 | |||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 20 |
Leasing Statistics | ||
MERGER COMBINED SAME STORE RENEWALS 1 | ||||||||
Q4 2023 | TTM | |||||||
MOB cash leasing spreads 2 | 3.3 | % | 3.5 | % | ||||
MOB cash leasing spreads distribution | ||||||||
< 0% spread | 3.0 | % | 4.7 | % | ||||
0-3% spread | 5.5 | % | 12.9 | % | ||||
3-4% spread | 75.6 | % | 64.9 | % | ||||
> 4% spread | 15.9 | % | 17.5 | % | ||||
Total | 100.0 | % | 100.0 | % | ||||
Tenant retention rate | 78.2 | % | 79.3 | % | ||||
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 | 2.88 | % | 70.3 | % | 2.52 | % | 17.9 | % | 2.81 | % | 88.3 | % | ||||||||||||||
Acquisitions | 2.77 | % | 2.8 | % | 4.19 | % | 0.5 | % | 2.98 | % | 3.2 | % | ||||||||||||||
Other 4 | 2.74 | % | 7.0 | % | 2.21 | % | 1.5 | % | 2.65 | % | 8.5 | % | ||||||||||||||
Total | 2.87 | % | 80.1 | % | 2.54 | % | 19.9 | % | 2.81 | % | 100.0 | % | ||||||||||||||
Escalator type | ||||||||||||||||||||||||||
Fixed | 2.82 | % | 96.7 | % | 2.53 | % | 89.0 | % | 2.76 | % | 95.2 | % | ||||||||||||||
CPI | 4.27 | % | 3.3 | % | 2.62 | % | 11.0 | % | 3.52 | % | 4.8 | % |
TYPE AND OWNERSHIP STRUCTURE 1 | ||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||
Tenant type | ||||||||||||||
Hospital | 46.7 | % | 71.5 | % | 51.7 | % | ||||||||
Physician and other | 53.3 | % | 28.5 | % | 48.3 | % | ||||||||
Lease structure | ||||||||||||||
Gross | 9.0 | % | 2.9 | % | 7.8 | % | ||||||||
Modified gross | 31.5 | % | 11.2 | % | 27.5 | % | ||||||||
Net | 59.5 | % | 63.7 | % | 60.4 | % | ||||||||
Absolute net 5 | — | % | 22.2 | % | 4.3 | % | ||||||||
Ownership type | ||||||||||||||
Ground lease | 44.1 | % | 38.7 | % | 43.2 | % | ||||||||
Fee simple | 55.9 | % | 61.3 | % | 56.8 | % |
# OF LEASES BY SIZE 6 | |||||||||||
LEASED SQUARE FEET | # OF LEASES | WALT | WALTR | ||||||||
0 - 2,500 | 3,653 | 71.4 | 36.4 | ||||||||
2,501 - 5,000 | 1,813 | 82.7 | 41.2 | ||||||||
5,001 - 7,500 | 633 | 92.9 | 46.5 | ||||||||
7,501 - 10,000 | 362 | 97.9 | 50.8 | ||||||||
10,001 + | 708 | 121.4 | 59.2 | ||||||||
Total Leases | 7,169 | 102.0 | 50.5 | ||||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 21 |
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 | 4Q 2023 | 3Q 2023 | 4Q 2022 | Y-o-Y% CHANGE | 2023 | 2022 | % CHANGE | |||||||||||||||||||
Multi-tenant | 70 | % | $ | 141,954 | $ | 138,126 | $ | 137,515 | 3.2 | % | $ | 558,173 | $ | 542,235 | 2.9 | % | ||||||||||
Single-tenant | 21 | % | 42,369 | 42,542 | 42,005 | 0.9 | % | 168,401 | 165,150 | 2.0 | % | |||||||||||||||
Joint venture | 2 | % | 3,082 | 2,978 | 2,921 | 5.5 | % | 12,150 | 11,523 | 5.4 | % | |||||||||||||||
Merger combined same store | 92 | % | $ | 187,405 | $ | 183,646 | $ | 182,441 | 2.7 | % | $ | 738,724 | $ | 718,908 | 2.8 | % | ||||||||||
Planned dispositions | — | % | 117 | (101) | 636 | (81.6 | %) | 434 | 3,616 | (88.0 | %) | |||||||||||||||
Re/development | 1 | % | 2,664 | 2,116 | 3,187 | (16.4 | %) | 10,071 | 14,254 | (29.3 | %) | |||||||||||||||
Wholly owned and joint venture acquisitions | 4 | % | 7,724 | 8,478 | 6,674 | 15.7 | % | 31,925 | 17,067 | 87.1 | % | |||||||||||||||
Development completions | 1 | % | 1,301 | 1,257 | 817 | 59.2 | % | 4,438 | 2,830 | 56.8 | % | |||||||||||||||
Completed dispositions & assets held for sale | 2 | % | 4,860 | 9,327 | 17,880 | (72.8 | %) | 40,414 | 101,663 | (60.2 | %) | |||||||||||||||
Merger combined total cash NOI | 100 | % | $204,071 | $204,723 | $211,635 | (3.6 | %) | $826,006 | $858,338 | (3.8 | %) | |||||||||||||||
PORTFOLIO OCCUPANCY AND ABSORPTION | |||||||||||||||||||||||
OCCUPANCY % | ABSORPTION (square feet in thousands) | ||||||||||||||||||||||
COUNT | SQUARE FEET | 4Q 2023 | 3Q 2023 | 4Q 2022 | SEQUENTIAL | Y-O-Y | |||||||||||||||||
Multi-tenant | 479 | 28,932,961 | 86.9 | % | 86.7 | % | 86.7 | % | 77 | 66 | |||||||||||||
Single-tenant | 118 | 6,364,953 | 99.6 | % | 99.6 | % | 99.4 | % | 3 | 15 | |||||||||||||
Joint venture | 18 | 1,225,320 | 87.3 | % | 88.5 | % | 88.0 | % | (15) | (9) | |||||||||||||
Merger combined same store | 615 | 36,523,234 | 89.2 | % | 89.0 | % | 89.0 | % | 65 | 72 | |||||||||||||
Planned dispositions | 5 | 227,686 | 25.5 | % | 26.1 | % | 49.7 | % | (1) | (55) | |||||||||||||
Re/development | 16 | 1,368,720 | 54.8 | % | 51.1 | % | 58.7 | % | 50 | (53) | |||||||||||||
Wholly owned and joint venture acquisitions | 47 | 1,788,173 | 90.9 | % | 90.3 | % | 87.7 | % | 11 | 45 | |||||||||||||
Development completions | 5 | 402,868 | 67.1 | % | 73.2 | % | 66.6 | % | 53 | 73 | |||||||||||||
Total portfolio | 688 | 40,310,681 | 87.5 | % | 87.3 | % | 87.5 | % | 178 | 82 | |||||||||||||
Joint ventures | 34 | 1,949,400 | 86.2 | % | 86.9 | % | 85.4 | % | (14) | 12 | |||||||||||||
Total wholly-owned | 654 | 38,361,281 | 87.6 | % | 87.3 | % | 87.6 | % | 192 | 70 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 22 |
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 | |||||||||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 2023 | 2022 | |||||||||||||||||
Base revenue | $224,025 | $222,137 | $221,530 | $219,890 | $218,534 | $887,582 | $865,819 | ||||||||||||||||
Op. exp. recoveries | 68,843 | 73,739 | 68,626 | 69,063 | 65,256 | 280,271 | 264,682 | ||||||||||||||||
Revenues | $292,868 | $295,876 | $290,156 | $288,953 | $283,790 | $1,167,853 | $1,130,501 | ||||||||||||||||
Expenses | 105,463 | 112,230 | 105,709 | 105,727 | 101,349 | 429,129 | 411,593 | ||||||||||||||||
Cash NOI | $187,405 | $183,646 | $184,447 | $183,226 | $182,441 | $738,724 | $718,908 | ||||||||||||||||
Revenue per occ SF 3 | $36.01 | $36.40 | $35.68 | $35.55 | $34.96 | $35.91 | $34.87 | ||||||||||||||||
Margin | 64.0 | % | 62.1 | % | 63.6 | % | 63.4 | % | 64.3 | % | 63.3 | % | 63.6 | % | |||||||||
Average occupancy | 89.1 | % | 89.0 | % | 89.1 | % | 89.0 | % | 88.9 | % | 89.1 | % | 88.8 | % | |||||||||
Period end occupancy | 89.2 | % | 89.0 | % | 89.1 | % | 89.1 | % | 89.0 | % | 89.2 | % | 89.0 | % | |||||||||
Number of properties | 615 | 615 | 615 | 615 | 615 | 615 | 615 | ||||||||||||||||
Year-Over-Year Change | |||||||||||||||||||||||
Revenue per occ SF 3 | 3.0 | % | 3.0 | % | |||||||||||||||||||
Avg occupancy (bps) | +20 | +30 | |||||||||||||||||||||
Revenues | 3.2 | % | 3.3 | % | |||||||||||||||||||
Base revenue | 2.5 | % | 2.5 | % | |||||||||||||||||||
Exp recoveries | 5.5 | % | 5.9 | % | |||||||||||||||||||
Expenses | 4.1 | % | 4.3 | % | |||||||||||||||||||
Cash NOI | 2.7 | % | 2.8 | % |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 23 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
BOTTOM UP RECONCILIATION | |||||||||||||||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2022 | ||||||||||||||||||||||
Net income (loss) attr. to common stockholders | ($40,533) | ($67,844) | ($82,759) | ($87,125) | ($35,764) | $28,304 | $6,130 | $42,227 | |||||||||||||||||||||
Other income (expense) | 54,382 | 74,621 | 112,818 | 94,407 | 46,772 | (89,477) | 7,479 | (29,293) | |||||||||||||||||||||
General and administrative expense | 14,609 | 13,396 | 15,464 | 14,935 | 14,417 | 16,741 | 10,540 | 11,036 | |||||||||||||||||||||
Depreciation and amortization expense | 180,049 | 182,989 | 183,193 | 184,479 | 185,275 | 158,117 | 55,731 | 54,041 | |||||||||||||||||||||
Other expenses 1 | 4,899 | 11,783 | (11,969) | 7,940 | 13,580 | 82,659 | 11,034 | 9,929 | |||||||||||||||||||||
Straight-line rent expense | 1,484 | 1,538 | 1,525 | 1,537 | 1,358 | 1,260 | 378 | 378 | |||||||||||||||||||||
Straight-line rent revenue | (9,356) | (10,008) | (9,530) | (9,782) | (11,231) | (8,975) | (1,705) | (1,587) | |||||||||||||||||||||
Other revenue 2 | (6,221) | (6,446) | (5,959) | (1,686) | (7,330) | (5,242) | (1,961) | (2,044) | |||||||||||||||||||||
Joint venture property cash NOI | 4,758 | 4,692 | 4,957 | 4,769 | 4,579 | 3,877 | 2,551 | 2,052 | |||||||||||||||||||||
Cash NOI | $204,071 | $204,721 | $207,740 | $209,474 | $211,656 | $187,264 | $90,177 | $86,739 | |||||||||||||||||||||
Pre-merger Legacy HTA NOI | — | — | — | — | — | 27,114 | 128,025 | 127,363 | |||||||||||||||||||||
Cash NOI including pre-merger Legacy HTA NOI | $204,071 | $204,721 | $207,740 | $209,474 | $211,656 | $214,378 | $218,202 | $214,102 | |||||||||||||||||||||
Planned dispositions | (117) | 101 | 126 | (544) | (636) | (604) | (1,144) | (1,232) | |||||||||||||||||||||
Redevelopment | (2,664) | (2,116) | (2,455) | (2,836) | (3,187) | (3,510) | (3,605) | (3,952) | |||||||||||||||||||||
Wholly owned and joint venture acquisitions | (7,724) | (8,478) | (8,146) | (7,577) | (6,674) | (5,489) | (4,210) | (694) | |||||||||||||||||||||
Development completions | (1,301) | (1,257) | (1,021) | (859) | (817) | (682) | (528) | (803) | |||||||||||||||||||||
Completed dispositions & assets held for sale | (4,860) | (9,325) | (11,797) | (14,432) | (17,901) | (24,573) | (28,584) | (30,605) | |||||||||||||||||||||
Merger combined same store cash NOI | $187,405 | $183,646 | $184,447 | $183,226 | $182,441 | $179,520 | $180,131 | $176,816 | |||||||||||||||||||||
Same store joint venture properties | (3,082) | (2,978) | (3,125) | (2,965) | (2,921) | (2,777) | (2,917) | (2,908) | |||||||||||||||||||||
Merger combined same store excluding JVs | $184,323 | $180,668 | $181,322 | $180,261 | $179,520 | $176,743 | $177,214 | $173,908 | |||||||||||||||||||||
TOP DOWN RECONCILIATION | |||||||||||||||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | 3Q 2022 | 2Q 2022 | 1Q 2022 | ||||||||||||||||||||||
Rental income before rent concessions | $325,772 | $336,503 | $332,992 | $328,115 | $332,652 | $301,692 | $142,073 | $139,775 | |||||||||||||||||||||
Rent concessions | (3,696) | (3,168) | (3,312) | (4,022) | (3,253) | (2,761) | (1,441) | (1,286) | |||||||||||||||||||||
Rental income | 322,076 | 333,335 | 329,680 | 324,093 | 329,399 | 298,931 | 140,632 | 138,489 | |||||||||||||||||||||
Parking income | 2,392 | 2,751 | 2,370 | 2,391 | 2,413 | 2,428 | 1,919 | 1,753 | |||||||||||||||||||||
Interest from financing receivable, net | 2,132 | 2,002 | 2,180 | 2,227 | 2,284 | 2,034 | 1,957 | 1,930 | |||||||||||||||||||||
Exclude straight-line rent revenue | (9,356) | (10,008) | (9,530) | (9,782) | (11,231) | (8,975) | (1,705) | (1,587) | |||||||||||||||||||||
Exclude other non-cash revenue 3 | (1,513) | (1,410) | (1,018) | 3,594 | (3,059) | (2,280) | (1,142) | (1,322) | |||||||||||||||||||||
Cash revenue | 315,731 | 326,670 | 323,682 | 322,523 | 319,806 | 292,138 | 141,661 | 139,263 | |||||||||||||||||||||
Property operating expense | (121,362) | (131,639) | (125,395) | (122,040) | (117,009) | (112,473) | (57,010) | (57,464) | |||||||||||||||||||||
Exclude non-cash expenses 4 | 4,668 | 5,079 | 4,556 | 4,336 | 3,764 | 4,034 | 2,975 | 2,888 | |||||||||||||||||||||
Non-controlling interest | 276 | (81) | (60) | (114) | 516 | (312) | — | — | |||||||||||||||||||||
Joint venture property cash NOI | 4,758 | 4,692 | 4,957 | 4,769 | 4,579 | 3,877 | 2,551 | 2,052 | |||||||||||||||||||||
Cash NOI | $204,071 | $204,721 | $207,740 | $209,474 | $211,656 | $187,264 | $90,177 | $86,739 | |||||||||||||||||||||
Pre-merger Legacy HTA NOI | — | — | — | — | — | 27,114 | 128,025 | 127,363 | |||||||||||||||||||||
Cash NOI including pre-merger Legacy HTA NOI | $204,071 | $204,721 | $207,740 | $209,474 | $211,656 | $214,378 | $218,202 | $214,102 | |||||||||||||||||||||
Planned dispositions | (117) | 101 | 126 | (544) | (636) | (604) | (1,144) | (1,232) | |||||||||||||||||||||
Redevelopment | (2,664) | (2,116) | (2,455) | (2,836) | (3,187) | (3,510) | (3,605) | (3,952) | |||||||||||||||||||||
Wholly owned and joint venture acquisitions | (7,724) | (8,478) | (8,146) | (7,577) | (6,674) | (5,489) | (4,210) | (694) | |||||||||||||||||||||
Development completions | (1,301) | (1,257) | (1,021) | (859) | (817) | (682) | (528) | (803) | |||||||||||||||||||||
Completed dispositions & assets held for sale | (4,860) | (9,325) | (11,797) | (14,432) | (17,901) | (24,573) | (28,584) | (30,605) | |||||||||||||||||||||
Merger combined same store cash NOI | $187,405 | $183,646 | $184,447 | $183,226 | $182,441 | $179,520 | $180,131 | $176,816 | |||||||||||||||||||||
Same store joint venture properties | (3,082) | (2,978) | (3,125) | (2,965) | (2,921) | (2,777) | (2,917) | (2,908) | |||||||||||||||||||||
Merger combined same store excluding JVs | $184,323 | $180,668 | $181,322 | $180,261 | $179,520 | $176,743 | $177,214 | $173,908 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 24 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF NOI TO FULL QUARTER FFO AND NORMALIZED FFO | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Cash NOI | $204,071 | $204,721 | $207,740 | $209,474 | $211,656 | ||||||||||||
General and administrative expense | (14,609) | (13,396) | (15,464) | (14,935) | (14,417) | ||||||||||||
Straight-line rent | 9,356 | 10,008 | 9,530 | 9,782 | 11,231 | ||||||||||||
Interest and other income (expense), net | 65 | 139 | 592 | 547 | (1,168) | ||||||||||||
Management fees and other income | 1,551 | 1,910 | 1,860 | 2,227 | 2,023 | ||||||||||||
Note receivable interest income | 2,290 | 2,262 | 2,180 | 1,987 | 1,943 | ||||||||||||
Other non-cash revenue 1 | 2,380 | 2,250 | 1,918 | (2,526) | 3,059 | ||||||||||||
Other non-cash expenses 2 | (4,668) | (5,079) | (4,556) | (4,336) | (3,764) | ||||||||||||
Non-real estate impairment | — | — | — | (5,196) | — | ||||||||||||
Unconsolidated JV adjustments | (352) | (337) | (185) | (357) | (143) | ||||||||||||
Debt Covenant EBITDA | $200,084 | $202,478 | $203,615 | $196,667 | $210,420 | ||||||||||||
Interest expense | (63,187) | (66,304) | (65,334) | (63,759) | (64,443) | ||||||||||||
Gain on extinguishment of debt | — | 62 | — | — | 119 | ||||||||||||
Acquisition and pursuit costs | (301) | (769) | (669) | (287) | (92) | ||||||||||||
Merger-related costs | (1,414) | (7,450) | 15,670 | (4,855) | (10,777) | ||||||||||||
Leasing commission amortization 3 | 3,818 | 3,663 | 3,335 | 3,002 | 2,706 | ||||||||||||
Non-real estate depreciation and amortization | (1,596) | (1,509) | (1,525) | (1,372) | (1,323) | ||||||||||||
Non controlling interest | (491) | (841) | (1,027) | (1,067) | (382) | ||||||||||||
Unconsolidated JV adjustments | (393) | (389) | (377) | (351) | (327) | ||||||||||||
FFO | $136,520 | $128,941 | $153,688 | $127,978 | $135,901 | ||||||||||||
Acquisition and pursuit costs | 301 | 769 | 669 | 287 | 92 | ||||||||||||
Merger-related costs | 1,414 | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||||
Lease intangible amortization | 261 | 213 | 240 | 146 | 137 | ||||||||||||
Significant non-recurring legal fees/forfeited earnest money received | (100) | — | 275 | — | 194 | ||||||||||||
Debt financing costs | — | (62) | — | — | 625 | ||||||||||||
Severance costs | 1,445 | — | — | — | — | ||||||||||||
Merger-related fair value adjustment | 10,800 | 10,667 | 10,554 | 10,864 | 11,979 | ||||||||||||
Allowance for credit losses | — | — | — | 8,599 | — | ||||||||||||
Unconsolidated JV normalizing items | 89 | 90 | 93 | 117 | 96 | ||||||||||||
Normalized FFO | $150,730 | $148,068 | $149,849 | $152,846 | $159,801 |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 25 |
EBITDA Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF EBITDA | |||||||||||||||||
4Q 2023 | 3Q 2023 | 2Q 2023 | 1Q 2023 | 4Q 2022 | |||||||||||||
Net (loss) income | ($40,533) | ($67,844) | ($82,759) | ($87,125) | ($35,764) | ||||||||||||
Interest expense | 63,187 | 66,304 | 65,334 | 63,759 | 64,443 | ||||||||||||
Depreciation and amortization | 180,049 | 182,989 | 183,193 | 184,479 | 185,275 | ||||||||||||
Unconsolidated JV depreciation,amortization,and interest | 4,836 | 4,810 | 4,789 | 5,192 | 4,339 | ||||||||||||
EBITDA | $207,539 | $186,259 | $170,557 | $166,305 | $218,293 | ||||||||||||
Leasing commission amortization | 3,818 | 3,663 | 3,335 | 3,002 | 2,706 | ||||||||||||
Gain on sales of real estate properties | (20,573) | (48,811) | (7,156) | (1,007) | (73,083) | ||||||||||||
Impairments on real estate properties | 11,403 | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||||
EBITDAre 1 | $202,187 | $197,984 | $221,951 | $194,527 | $202,368 | ||||||||||||
EBITDA | $207,539 | $186,259 | $170,557 | $166,305 | $218,293 | ||||||||||||
Acquisition and pursuit costs | 301 | 769 | 669 | 287 | 92 | ||||||||||||
Merger-related costs | 1,414 | 7,450 | (15,670) | 4,855 | 10,777 | ||||||||||||
Gain on sales of real estate properties | (20,573) | (48,811) | (7,156) | (1,007) | (73,083) | ||||||||||||
Impairments on real estate assets | 11,403 | 56,873 | 55,215 | 26,227 | 54,452 | ||||||||||||
Gain on extinguishment of debt | — | (62) | — | — | (119) | ||||||||||||
Unconsolidated JV adjustments | — | — | — | — | 8 | ||||||||||||
Debt Covenant EBITDA | $200,084 | $202,478 | $203,615 | $196,667 | $210,420 | ||||||||||||
Leasing commission amortization | 3,818 | 3,663 | 3,335 | 3,002 | 2,706 | ||||||||||||
Lease intangible amortization | 261 | 213 | 240 | 147 | 137 | ||||||||||||
Acquisition/disposition timing impact 2 | (4,155) | (2,559) | (184) | (945) | (1,704) | ||||||||||||
Stock based compensation | 3,566 | 2,556 | 3,924 | 3,745 | 3,573 | ||||||||||||
Allowance for credit losses 3 | — | — | — | 8,599 | — | ||||||||||||
Rent reserves, net | 1,404 | 442 | (54) | 1,371 | (100) | ||||||||||||
Unconsolidated JV adjustments | 89 | 90 | 93 | 117 | 96 | ||||||||||||
Adjusted EBITDA | $205,067 | $206,883 | $210,969 | $212,703 | $215,128 | ||||||||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 26 |
Components of Net Asset Value | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
CASH NOI BY PROPERTY TYPE | |||||||||||||||||||||||
4Q 2023 | |||||||||||||||||||||||
ASSET TYPE | MERGER COMBINED SAME STORE 1 | ACQ./DEV. COMPLETIONS 2 | REDEVELOPMENT | TIMING/OTHER ADJUSTMENTS 3 | ADJUSTED CASH NOI | ANNUALIZED ADJUSTED NOI | |||||||||||||||||
MOB/Outpatient | $172,831 | $8,169 | $2,664 | $753 | $184,417 | $737,668 | |||||||||||||||||
Inpatient/Surgical | 8,130 | 856 | — | — | 8,986 | 35,944 | |||||||||||||||||
Office | 6,441 | — | — | 6,441 | 25,764 | ||||||||||||||||||
Total Cash NOI | $187,402 | $9,025 | $2,664 | $753 | $199,844 | $799,376 |
DEVELOPMENT PROPERTIES | TOTAL SHARES OUTSTANDING | |||||||||||||||||||
Land held for development | $59,871 | As of December 31, 2023 8 | 384,816,882 | |||||||||||||||||
Re/development budget | 295,578 | |||||||||||||||||||
$355,449 | IMPLIED CAP RATE | |||||||||||||||||||
STOCK PRICE | IMPLIED CAP RATE | |||||||||||||||||||
As of December 31, 2023 | $17.23 | 7.2 | % | |||||||||||||||||
OTHER ASSETS | ||||||||||||||||||||
Disposition pipeline 4 | $76,319 | 4Q 2023 High | $17.44 | 7.1 | % | |||||||||||||||
Unstabilized properties 5 | 286,617 | 4Q 2023 Low | $13.96 | 8.1 | % | |||||||||||||||
Cash and other assets 6 | 429,873 | |||||||||||||||||||
$792,809 | ||||||||||||||||||||
DEBT | ||||||||||||||||||||
Unsecured credit facility | $— | |||||||||||||||||||
Unsecured term loans | 1,500,000 | |||||||||||||||||||
Senior notes | 3,699,285 | |||||||||||||||||||
Mortgage notes payable | 70,752 | |||||||||||||||||||
Company share of joint venture net debt | 24,284 | |||||||||||||||||||
Remaining re/development funding | 145,703 | |||||||||||||||||||
Other liabilities 7 | 245,574 | |||||||||||||||||||
$5,685,598 | ||||||||||||||||||||
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 27 |
Components of Expected FFO | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ACTUAL | EXPECTED 2024 | |||||||||||||
2023 | LOW | HIGH | ||||||||||||
OPERATING METRICS | ||||||||||||||
Multi-tenant absorption (bps) | 20 | 100 | 150 | |||||||||||
Multi-tenant portfolio cash NOI growth | 2.3 | % | 3.50 | % | 4.75 | % | ||||||||
Single-tenant portfolio cash NOI growth | 0.7 | % | 0.50 | % | 1.50 | % | ||||||||
Merger combined same store cash NOI growth, including Company's share of JVs | 2.8 | % | 2.50 | % | 3.50 | % | ||||||||
Merger combined same store lease retention rate | 79.3 | % | 75.0 | % | 85.0 | % | ||||||||
Normalized G&A | $56,684 | $61,000 | $64,000 | |||||||||||
Straight-line rent, net | 32,592 | 30,000 | 34,000 | |||||||||||
CAPITAL FUNDING | ||||||||||||||
Acquisitions | $42,950 | $0.00 | $0.00 | |||||||||||
Dispositions | 768,690 | 150,000 | 250,000 | |||||||||||
Re/development | 112,213 | 100,000 | 130,000 | |||||||||||
1st generation TI and acq. capex | 38,773 | 30,000 | 40,000 | |||||||||||
Maintenance capex | ||||||||||||||
2nd generation TI | 66,081 | 60,000 | 70,000 | |||||||||||
Leasing commissions paid | 36,391 | 35,000 | 40,000 | |||||||||||
Capital expenditures | 49,342 | 45,000 | 50,000 | |||||||||||
Total maintenance capex | 151,814 | 140,000 | 160,000 | |||||||||||
CASH YIELD | ||||||||||||||
Acquisitions | 6.5 | % | — | % | — | % | ||||||||
Dispositions | 6.5 | % | 6.0 | % | 7.0 | % | ||||||||
Development (stabilized) | 6.5 | % | 8.0 | % | ||||||||||
Redevelopment (stabilized) | 9.0 | % | 12.0 | % | ||||||||||
EARNINGS AND LEVERAGE | ||||||||||||||
Earnings per share | $(0.74) | $(0.60) | $(0.10) | |||||||||||
Normalized FFO per share | $1.57 | $1.52 | $1.58 | |||||||||||
Net debt to adjusted EBITDA | 6.4x | 6.0x | 6.5x |
HEALTHCARE REALTY | 4Q 2023 SUPPLEMENTAL INFORMATION 28 |
Cover Page |
Nov. 03, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 16, 2024 |
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 |
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