Property Portfolio - As of March 31, 2024, the company owned 208 properties across 33 states, totaling 9.1 million rentable square feet[255] - The total gross asset value of the company's portfolio was approximately $2.6 billion as of March 31, 2024[271] - The company acquired 11 properties and disposed of five properties from January 1, 2023, to March 31, 2024[274] - The MOB segment had a weighted average remaining lease term of 4.7 years as of March 31, 2024[271] - As of March 31, 2024, the carrying value of real estate investments at cost was $2.6 billion, with $1.4 billion pledged as collateral for mortgage notes payable[320] Financial Performance - The company's Estimated Per-Share NAV decreased from $14.00 as of December 31, 2022, to $13.00 as of December 31, 2023[259] - Net loss attributable to common stockholders increased to $19.0 million for Q1 2024 from $17.5 million in Q1 2023, representing a $1.5 million increase[277] - The net loss for the three months ended March 31, 2024, was approximately $15.55 million, compared to a net loss of $14.07 million for the same period in 2023[312] - Funds from Operations (FFO) attributable to stockholders for the three months ended March 31, 2024, was $907,000, down from $1,891,000 in the same period of 2023[353] - Modified Funds from Operations (MFFO) attributable to stockholders for the three months ended March 31, 2024, was $1,147,000, compared to $3,360,000 in the same period of 2023[353] Revenue and Expenses - Revenue from tenants rose by $1.0 million to $88.3 million in Q1 2024 compared to $87.4 million in Q1 2023, driven by $0.7 million from Acquired Properties and $0.3 million from Same Store Properties[282] - Property operating and maintenance expenses increased by $0.7 million to $55.1 million in Q1 2024, primarily due to higher costs in Same Store Properties[284] - General and administrative expenses increased by $1.7 million to $6.8 million in Q1 2024, including $4.0 million in expense reimbursements[299] - Total expenses increased by $3.9 million to $89.4 million in Q1 2024 compared to $85.5 million in Q1 2023[277] Cash Flow and Liquidity - Cash flows from operating activities provided $2.54 million for the three months ended March 31, 2024, down from $4.99 million in the same period of 2023[312] - The company had $28.7 million in cash and cash equivalents as of March 31, 2024, exceeding the required minimum balance of $12.5 million[317] - The company incurred cash used in investing activities of $12.22 million for the three months ended March 31, 2024, compared to $29.08 million in 2023[313] - Cash flows provided by operations for the three months ended March 31, 2024, were $2.5 million[361] - Cash flows provided by operations were $2,543,000, covering 72.7% of total distributions, while available cash on hand contributed 27.3%[362] Debt and Interest - As of March 31, 2024, the company's outstanding debt obligations were $1.2 billion at a weighted average interest rate of 5.60% per year, compared to $1.1 billion at 5.18% as of March 31, 2023[304] - Interest expense rose by $0.6 million to $16.4 million in Q1 2024, attributed to higher average rates and balances of indebtedness[302] - The weighted-average economic interest rate on total gross borrowings was 5.00% as of March 31, 2024, including the impact of non-designated interest rate caps[319] Dividend Policy - The company has not paid cash dividends on common stock since mid-2020, opting instead for stock dividends until January 2024[358] - The company must distribute at least 90% of its REIT taxable income to maintain its REIT status, which affects its ability to pay dividends[364] - The ability to pay dividends depends on increasing cash generated from property operations and successful acquisitions of new properties[363] Market and Economic Conditions - As of March 31, 2024, the 12-month CPI increase was 3.5%, impacting leases without indexed escalation provisions[365] - Most leases in the MOB segment contain rent escalation provisions, but these rates are generally below the current inflation rate, potentially affecting revenue[365] - Leases with residents at SHOPs do not have rent escalations, but the company can renew leases at market rates, which may be impacted by rising labor costs[367] - Increased operating costs under net leases could adversely affect tenants' ability to pay rent, impacting the company's revenue[366] - There has been no material change in the company's exposure to market risk during the three months ended March 31, 2024[369]
HEALTHCARE(HTIA) - 2024 Q1 - Quarterly Report