Healthcare Realty Trust Incorporated (NYSE:HR) Q2 2023 Results Conference Call August 8, 2023 12:00 PM ET Company Participants Ron Hubbard - VP, IR Todd Meredith - President and CEO Kris Douglas - EVP and CFO Rob Hull - EVP, Investments Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Michael Griffin - Citi Juan Sanabria - BMO Capital Markets Steven Valiquette - Barclays Mike Mueller - JP Morgan John Pawlowski - Green Street Operator Good morning or good afternoon, and welcome to the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-Q 3310 West End Avenue, Suite 700 Nashville, Tennessee 37203 (Address of principal executive offices) (615) 269-8175 (Registrant's telephone number, including area code) www.healthcarerealty.com (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES E ...

Healthcare Realty Trust Incorporated (NYSE:HR) Q1 2023 Results Conference Call May 9, 2023 11:00 AM ET Company Participants Ron Hubbard - VP of IR Todd Meredith - President, CEO and Director Kris Douglas - Executive VP and CFO Rob Hull - EVP of Investments Conference Call Participants Nick Joseph - Citigroup Juan Sanabria - BMO Capital Markets Nick Yulico - Scotiabank Tayo Okusanya - Credit Suisse Connor Siversky - Wells Fargo Mike Mueller - JPMorgan John Pawlowski - Green Street Austin Wurschmidt - KeyBanc ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2023 financial statements show a **net loss of $88.1 million**, driven by increased expenses post-merger with HTA [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets were **$13.57 billion**, liabilities **$6.10 billion**, and equity **$7.46 billion**, with minor decreases from year-end 2022 Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$13,568,884** | **$13,849,631** | | Total real estate properties, net | $12,056,264 | $12,412,354 | | Cash and cash equivalents | $49,941 | $60,961 | | **Total Liabilities** | **$6,102,045** | **$6,167,799** | | Notes and bonds payable | $5,361,699 | $5,351,827 | | **Total Equity** | **$7,464,839** | **$7,679,818** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2023 saw a **net loss of $87.1 million** ($0.23/share), a significant shift from Q1 2022 net income, driven by higher post-merger expenses Q1 2023 vs. Q1 2022 Statement of Operations (Unaudited) | (In thousands, except per share data) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total Revenues | $332,925 | $142,894 | | Total Expenses | $326,596 | $129,960 | | Depreciation and amortization | $184,479 | $54,041 | | Interest expense | ($63,759) | ($13,661) | | **Net (Loss) Income Attributable to Common Stockholders** | **($87,125)** | **$42,227** | | **Diluted EPS** | **($0.23)** | **$0.28** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 operating cash flow increased to **$69.2 million**, investing activities provided **$41.6 million** from property sales, and financing used **$121.8 million** Q1 2023 vs. Q1 2022 Cash Flow Summary (Unaudited) | (In thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $69,190 | $43,771 | | Net cash provided by (used in) investing activities | $41,560 | ($113,267) | | Net cash (used in) provided by financing activities | ($121,770) | $79,015 | | **(Decrease) increase in cash and cash equivalents** | **($11,020)** | **$9,519** | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the HTA **reverse merger accounting**, **purchase price allocation**, and the company's portfolio of **681 properties** totaling **39.9 million square feet** - As of March 31, 2023, the Company's portfolio included **681** real estate properties in 35 states, totaling approximately **39.9 million square feet**, with a gross investment value of about **$13.9 billion**[21](index=21&type=chunk) - The merger with HTA on July 20, 2022, was treated as a "**reverse acquisition**" for accounting purposes, with **Legacy HR** as the accounting acquirer. The historical financial statements of **Legacy HR** became the historical financial statements of the combined company[10](index=10&type=chunk)[50](index=50&type=chunk) - The preliminary **purchase price allocation** for the HTA merger resulted in **$8.73 billion** in real estate investments, **$5.65 billion** in assumed liabilities, and goodwill of **$257.3 million**. This allocation is not yet final[55](index=55&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - In Q1 2023, the company acquired one property in Tampa, FL for **$31.5 million** and disposed of several properties for total proceeds of **$208.8 million**[61](index=61&type=chunk)[65](index=65&type=chunk) - Total notes and bonds payable as of March 31, 2023, stood at **$5.36 billion**, including a **$1.5 billion** unsecured credit facility with **$385 million** drawn[79](index=79&type=chunk)[80](index=80&type=chunk) - The company declared and paid a common stock dividend of **$0.31** per share during Q1 2023[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses merger impact on liquidity and operations; Q1 2023 **Normalized FFO** was **$152.8 million** ($0.40/share), with **Same Store Cash NOI** up **2.8%** [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources include rent, property sales, and debt/equity offerings, with **$1.1 billion** available on the **Unsecured Credit Facility** as of March 31, 2023 - As of March 31, 2023, the Company had **$1.1 billion** available on its **Unsecured Credit Facility** and **$49.9 million** in cash[122](index=122&type=chunk) - In Q1 2023, the company disposed of **six** properties for a total sales price of **$208.8 million**, generating cash proceeds of **$149.2 million**[127](index=127&type=chunk) - The company has an at-the-market (ATM) equity offering program with **$750.0 million** available for issuance as of March 31, 2023, though no shares were sold under it in Q1 2023[95](index=95&type=chunk)[130](index=130&type=chunk) [Trends and Matters Impacting Operating Results](index=31&type=section&id=Trends%20and%20Matters%20Impacting%20Operating%20Results) Rising interest rates and capital market volatility increase **cost of capital**; **3.3 million square feet** of leases expire in 2023 with **75% to 90%** retention expected - Rising interest rates and capital market volatility have increased the company's **cost of capital** and could adversely impact operations and **tenant financial health**[135](index=135&type=chunk)[136](index=136&type=chunk) - **1,169** leases totaling **3.3 million square feet** are set to expire during the remainder of 2023, with an expected tenant retention rate of **75% to 90%**[137](index=137&type=chunk) - As of March 31, 2023, **47** properties are subject to purchase options, representing a gross real estate investment of **$1.22 billion**[139](index=139&type=chunk) [Non-GAAP Financial Measures and Key Performance Indicators](index=33&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Performance%20Indicators) This section defines and reconciles non-GAAP metrics; Q1 2023 **Normalized FFO** was **$152.8 million** and **Same Store Cash NOI** increased **2.8%** Q1 2023 vs. Q1 2022 Non-GAAP Performance | (In thousands, except per share data) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net (Loss) Income Attributable to Common Stockholders | ($87,125) | $42,227 | | FFO Attributable to Common Stockholders | $127,978 | $55,445 | | **Normalized FFO Attributable to Common Stockholders** | **$152,846** | **$64,788** | | **Normalized FFO per Share - Diluted** | **$0.40** | **$0.43** | | FAD | $125,934 | $57,035 | - **Same Store Cash NOI** increased **2.8%** year-over-year, from **$173.6 million** in Q1 2022 to **$178.6 million** in Q1 2023. The same-store pool consists of **588** properties[155](index=155&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q1 2023 results were heavily influenced by the HTA merger, driving significant increases in rental income, operating expenses, depreciation, and interest expense - The HTA merger was the primary driver of changes in Q1 2023 results, contributing an **$180.2 million** increase in rental income, a **$64.2 million** increase in property operating expenses, and a **$128.0 million** increase in depreciation and amortization[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Interest expense increased by **$50.1 million** (**366.7%**) year-over-year, driven by debt assumed in the merger (**$26.0M** increase) and higher rates on variable debt[165](index=165&type=chunk)[168](index=168&type=chunk) - The company recognized impairment charges of **$26.2 million** on properties sold or held for sale and recorded a **$5.2 million** credit loss reserve on notes receivable in Q1 2023[166](index=166&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is from changing interest rates on debt, with no material changes from the prior **Annual Report on Form 10-K** - The company's primary market risk is from changing interest rates on its debt. There were no material changes to this risk profile during the quarter[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded **disclosure controls and procedures** were effective as of March 31, 2023, with no material changes to **internal control over financial reporting** - The CEO and CFO concluded that the company's **disclosure controls and procedures** were effective as of the end of the period[169](index=169&type=chunk) - There were no material changes in the company's **internal control over financial reporting** during the first quarter of 2023[170](index=170&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any pending or threatened litigation that would materially adversely affect its financial condition or results - The Company is not aware of any pending or threatened litigation that would have a material adverse effect on its financial condition or results of operations[171](index=171&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section refers investors to the detailed discussion of risk factors in the company's **Annual Report on Form 10-K** for 2022 - The report directs investors to the Risk Factors section of the **Annual Report on Form 10-K** for the year ended December 31, 2022 for a detailed discussion of potential risks[172](index=172&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company withheld **38,632 shares** at **$21.71** per share to satisfy employee tax withholding obligations Share Withholding for Tax Obligations | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | February 1 - February 28, 2023 | 38,632 | $21.71 | [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including **CEO and CFO certifications** and **XBRL data files** - Exhibits filed with the report include **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32) and **XBRL data files**[174](index=174&type=chunk)

Healthcare Realty Trust Incorporated (NYSE:HR) Q4 2022 Earnings Conference Call March 1, 2023 12:00 PM ET Company Participants Ron Hubbard - Vice President of Investor Relations Todd Meredith - President, Chief Executive Officer & Director Kris Douglas - Chief Financial Officer Rob Hull - Executive Vice President, Investments Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Nick Yulico - Scotiabank Rich Anderson - SMBC Nikko Securities Michael Griffin - Citigroup Steven Valiquett ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35568 HEALTHCARE REALTY TRUST INCORPORATED (Exact name of Registrant as specified in its charter) (State or other j ...

Healthcare Realty Trust Incorporated (NYSE:HR) Q3 2022 Earnings Conference Call November 9, 2022 12:00 PM ET Company Participants Ron Hubbard - Vice President of Investor Relations Todd Meredith - President, Chief Executive Officer & Director Kris Douglas - Chief Financial Officer Rob Hull - Executive Vice President, Investments Conference Call Participants Nick Yulico - Scotiabank Austin Wurschmidt - KeyBanc Juan Sanabria - BMO Capital Rich Anderson - SMBC Steven Valiquette - Barclays Daniel Bernstein - Ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35568 (Healthcare Realty Trust Incorporated) HEALTHCARE REALTY TRUST INCORPORATED (Exact name of Registran ...

Healthcare Realty Trust Incorporated (NYSE:HR) Q2 2022 Earnings Conference Call August 9, 2022 12:00 PM ET Company Participants Kris Douglas - CFO Todd Meredith - President, CEO and Director Robert Hull - EVP of Investments Conference Call Participants Rich Anderson - SMBC Michael Griffin - Citi Steven Valiquette - Barclays John Pawlowski - Green Street Jonathan Hughes - Raymond James Tayo Okusanya - Credit Suisse Michael Bilerman - Griff Daniel Bernstein - Capital One Mike Mueller - JPMorgan Operator Good ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35568 (Healthcare Realty Trust Incorporated) HEALTHCARE REALTY TRUST INCORPORATED (Exact name of Registrant as ...