Property Portfolio and Occupancy - As of September 30, 2023, the company owned 204 properties across 33 states, totaling 9.0 million rentable square feet[271] - The occupancy rate in the seniors housing operating properties (SHOP) segment was 74.1% as of September 30, 2023, a decline of 1.0% from December 31, 2022[277] - The SHOP segment had 46 properties managed by four independent contractors as of September 30, 2023, following the termination of one contractor managing 20 properties[273] - The company had a total of 156 properties in its portfolio as of September 30, 2023, including 145 Same Store Properties[296] Financial Performance - Net loss attributable to common stockholders decreased to $19.6 million for the three months ended September 30, 2023, compared to $23.3 million for the same period in 2022, representing a reduction of approximately 16%[290] - Revenue from tenants increased to $85.686 million in Q3 2023, up from $83.460 million in Q3 2022, reflecting a growth of 2.7%[290] - Total expenses decreased to $86.425 million in Q3 2023 from $92.004 million in Q3 2022, a decline of approximately 6.1%[290] - Net Operating Income (NOI) for Same Store Properties was $23.312 million in Q3 2023, down from $23.491 million in Q3 2022, indicating a decrease of 0.8%[296] - Net loss attributable to common stockholders decreased to $57.8 million for the nine months ended September 30, 2023, compared to $71.2 million for the same period in 2022, representing an improvement of $13.3 million[326] - Revenue from tenants increased by $8.2 million to $259.1 million for the nine months ended September 30, 2023, compared to $250.9 million in 2022[326] - Total expenses decreased by $20.8 million to $256.9 million for the nine months ended September 30, 2023, from $277.7 million in 2022[326] Revenue and Expenses - Revenue from tenants in the SHOP segment increased by $1.8 million to $52.029 million for the three months ended September 30, 2023, compared to $50.275 million for the same period in 2022, driven by a $2.4 million increase from Same Store Properties[302] - Property operating and maintenance expenses rose by $3.1 million to $44.947 million for the three months ended September 30, 2023, primarily due to a $4.4 million increase in Same Store Properties expenses[304] - Property operating and maintenance expenses in the MOB segment increased by $1.4 million, primarily due to a $1.2 million increase from same store properties[331] - Property operating and maintenance expenses rose by $3.5 million to $134.01 million for the nine months ended September 30, 2023, primarily due to an $8.0 million increase from Same Store properties[338] Debt and Interest Expenses - As of September 30, 2023, outstanding debt obligations were $1.2 billion at a weighted average interest rate of 5.56%, compared to $1.1 billion at 4.29% as of September 30, 2022[318] - Interest expense rose to $15.720 million in Q3 2023 from $13.284 million in Q3 2022, an increase of approximately 18.3%[290] - Interest expense increased by $13.1 million to $50.2 million for the nine months ended September 30, 2023, compared to $37.1 million in 2022[326] Cash Flow and Distributions - Net cash provided by operating activities was $16.4 million for the nine months ended September 30, 2023, with cash inflows including non-cash items of $18.1 million[361] - Total cash distributions for the nine months ended September 30, 2023, amounted to $10.487 million, with each quarter showing consistent distributions around $3.494 million to $3.497 million[416] - Cash flows provided by operations for the nine months ended September 30, 2023, were $16.358 million, indicating a reliance on operational cash flow to fund distributions[416] Dividends and Stockholder Returns - The company has declared and paid quarterly dividends entirely in shares of common stock since October 2020, with an Estimated Per-Share NAV of $14.00 as of December 31, 2022[274] - Since mid-2020, no cash dividends have been paid on common stock, only stock dividends at a rate of $0.85 per share per year[413] - The Board may reduce or suspend dividend payments based on various factors, including financial condition and capital expenditure requirements[414] - No cash distributions were made to common stockholders or restricted shareholders in the six months ended June 30, 2023[415] Operational Challenges and Market Conditions - The company’s ability to pay dividends depends on increasing cash generated from property operations, which is influenced by various external factors, including the COVID-19 pandemic[418] - Increased operating costs under net leases could adversely impact tenants' ability to pay rent, affecting the company's revenue stability[421] - The company faces risks related to inflation and labor costs in its SHOPs, which could impact operational results if lease renewals do not align with market rates[422]
HEALTHCARE(HTIA) - 2023 Q3 - Quarterly Report