Property Portfolio - As of September 30, 2024, the company owned 198 properties across 32 states, totaling 8.6 million rentable square feet[255]. - The gross asset value of the company's total real estate investments was approximately $2.52 billion as of September 30, 2024[265]. - The company acquired 4 properties and disposed of 10 properties during the nine months ended September 30, 2024, resulting in a total of 198 properties owned[268]. - As of September 30, 2024, the outpatient medical facilities (OMFs) segment had a weighted average remaining lease term of 4.3 years and a leased percentage of 90.3%[264]. - Unencumbered real estate investments at cost were $523.4 million as of September 30, 2024[352]. Financial Performance - For the three months ended September 30, 2024, the company reported a net loss attributable to common stockholders of $44.1 million, compared to a net loss of $19.6 million for the same period in 2023[270]. - Net loss attributable to common stockholders increased to $183.1 million for the nine months ended September 30, 2024, compared to $57.8 million for the same period in 2023, representing a decrease of $125.3 million[305]. - Revenue from tenants increased to $88.94 million for the three months ended September 30, 2024, up from $85.69 million in 2023, representing a growth of 3.8%[270]. - Revenue from tenants increased by $6.9 million to $266.1 million for the nine months ended September 30, 2024, compared to $259.1 million in 2023[305]. - Revenue from tenants in the Outpatient Medical Facilities (OMF) segment for Q3 2024 was $33.8 million, a decrease of $0.6 million compared to Q3 2023, primarily due to a $1.3 million decrease from Disposed Properties, partially offset by a $1.4 million increase from Same Store Properties[275]. - In the Seniors Housing Operating Properties (SHOP) segment, revenue from tenants increased by $2.6 million to $54.6 million in Q3 2024, primarily due to a $3.5 million increase from Same Store Properties[281]. Expenses and Charges - Total expenses for the three months ended September 30, 2024, were $111.45 million, an increase of 29% from $86.43 million in the same period of 2023[270]. - Property operating and maintenance expenses in the OMF segment increased by $1.3 million to $10.9 million in Q3 2024, driven by inflation impacts on utility and maintenance costs[277][278]. - Property operating and maintenance expenses in the SHOP segment rose by $0.8 million to $44.1 million in Q3 2024, mainly due to increased staffing costs[284]. - The company reported impairment charges of $8.83 million for the three months ended September 30, 2024, which were not present in the same period of 2023[270]. - Impairment charges of $11.5 million were recorded during the nine months ended September 30, 2024, with no impairment charges recorded in the same period of 2023[320]. Debt and Financing - As of September 30, 2024, the company's outstanding debt obligations were $1.2 billion at a weighted average interest rate of 5.61%[298]. - Interest expense increased by $2.3 million to $18.0 million in Q3 2024, attributed to higher average indebtedness[297]. - Total debt leverage ratio was approximately 46.1% as of September 30, 2024, with net debt totaling $1.2 billion against a gross asset value of $2.5 billion[349]. - Mortgage notes payable totaled $828.0 million at a weighted-average interest rate of 4.60% and a remaining term of 5.4 years[353]. Cash Flow and Distributions - Cash flows from operating activities showed a net cash used of $86.3 million for the nine months ended September 30, 2024, compared to cash provided of $16.4 million in 2023[340]. - Total cash distributions for the three months ended September 30, 2024, amounted to $3.497 million, with 100% of distributions funded by cash flows from operations and available cash on hand[385]. - The company has not paid cash dividends on common stock since mid-2020, opting instead for stock dividends at a rate of $3.40 per share per year until January 2024[381]. - The company must distribute at least 90% of its REIT taxable income annually to maintain its REIT status, which affects its distribution strategy[390]. Operational Changes - The company completed the internalization of its advisory and property management functions on September 27, 2024, eliminating prior management fees[260]. - Termination fees to related parties amounted to $8.4 million in Q3 2024 due to the termination of the Advisory Agreement[291]. - Acquisition and transaction-related expenses increased significantly to $5.2 million in Q3 2024 from $0.2 million in Q3 2023, primarily due to costs related to the Internalization[292]. - General and administrative expenses rose by $0.7 million to $5.5 million in Q3 2024, including increased employee compensation expenses[293]. Market and Economic Factors - As of September 30, 2024, the 12-month CPI increase was 3.0%, impacting lease agreements without indexed escalation provisions[391]. - The company faces risks related to inflation affecting lease agreements and operational costs, particularly in its OMF segment[391].
HEALTHCARE(HTIA) - 2024 Q3 - Quarterly Report