Healthcare Realty Trust rporated(HR) - 2025 Q1 - Quarterly Report

Financial Performance - Rental income decreased to $288,857,000 in Q1 2025 from $318,076,000 in Q1 2024, a decline of approximately 9.1%[11] - Net loss attributable to common stockholders was $44,873,000 in Q1 2025 compared to $310,836,000 in Q1 2024, representing a significant reduction of 85.5%[11] - Comprehensive loss attributable to common stockholders was $50,827,000 in Q1 2025, down from $295,304,000 in Q1 2024, a decrease of 82.8%[12] - Revenue for the three months ended March 31, 2025, was $298,977 thousand, down from $326,805 thousand in the same period of 2024, representing a decrease of approximately 8.5%[97] - Net loss for the three months ended March 31, 2025, was $45,389 thousand, significantly improved from a net loss of $315,220 thousand in Q1 2024[97] Cash Flow and Operating Activities - Net cash provided by operating activities was $47,788,000 in Q1 2025, compared to $76,152,000 in Q1 2024, a decline of 37.2%[14] - The company reported a net cash provided by operating activities of $47,788 for Q1 2025, down from $76,152 in Q1 2024[14] Expenses and Cost Management - Total expenses decreased to $280,473,000 in Q1 2025 from $314,379,000 in Q1 2024, a reduction of approximately 10.8%[11] - Interest expense decreased to $54,812,000 in Q1 2025 from $61,054,000 in Q1 2024, a decrease of about 10.5%[11] - Significant segment expenses totaled $103,887 thousand in Q1 2025, a decrease from $111,269 thousand in Q1 2024, reflecting a reduction of about 6.6%[96] - Property taxes decreased from $32,929 thousand in Q1 2024 to $28,810 thousand in Q1 2025, a reduction of approximately 12.8%[96] - Personnel expenses remained relatively stable, decreasing slightly from $24,619 thousand in Q1 2024 to $24,379 thousand in Q1 2025[96] Real Estate and Investments - As of March 31, 2025, the Company had gross investments of approximately $11.8 billion in 587 consolidated real estate properties[15] - The Company's consolidated real estate properties total approximately 34.3 million square feet, with leasing and property management services provided to 92% of its portfolio[15] - The Company recognized real estate impairments totaling $10.2 million during the three months ended March 31, 2025, due to completed and planned disposition activity[33] - The Company had three consolidated variable interest entities (VIEs) as of March 31, 2025, with total assets of $106.9 million and total liabilities of $67.8 million[25] - The Company reported total dispositions of real estate assets amounting to $28.1 million for the three months ended March 31, 2025, with a net gain of $(5.4) million[57] Financing and Debt - The Company had $1.4 billion available to be drawn on its $1.5 billion Unsecured Credit Facility as of March 31, 2025[67] - As of March 31, 2025, the Company had total notes and bonds payable amounting to $4.73 billion, an increase from $4.66 billion as of December 31, 2024[66] - The carrying value of notes and bonds payable as of March 31, 2025, was $4,732.6 million, with a fair value of $4,670.1 million[91] - The Company had 15 outstanding interest rate derivatives designated as cash flow hedges with a total amount of $1.075 billion and a weighted average rate of 3.92%[72] Shareholder Returns and Equity - The company paid dividends of $108,809,000 in Q1 2025, compared to $118,269,000 in Q1 2024, a decrease of approximately 7.8%[14] - The Company declared and paid common stock dividends totaling $0.31 per share during the three months ended March 31, 2025[81] - The Company authorized a stock repurchase of up to $300.0 million, with $237.0 million remaining as of March 31, 2025[82] - The Company granted non-vested stock awards with a total fair value of $7.9 million during the first quarter of 2025, consisting of 477,226 shares[86] Joint Ventures and Partnerships - The Company had a weighted average ownership interest of approximately 30% in 63 real estate properties held in unconsolidated joint ventures[15] - The Company’s investment in unconsolidated joint ventures decreased to $470.4 million as of March 31, 2025, from $473.1 million at the beginning of the period[55] - The Company’s equity income from unconsolidated joint ventures was $1,000 for the three months ended March 31, 2025, compared to a loss of $(422,000) for the same period in 2024[55] Asset Management - The Company had two properties classified as assets held for sale, with a net value of $6.4 million, down from $12.3 million as of December 31, 2024[59] - The Company recognized an allowance for credit losses of $16.8 million as of March 31, 2025, which includes approximately $16.3 million of principal and $0.5 million of interest[40] - The fair value of real estate notes receivable as of March 31, 2025, was $110.3 million, down from $122.4 million as of December 31, 2024[91] Future Commitments - Future lease payments under non-cancelable operating leases as of March 31, 2025, total $4.6 billion, with the largest payment of $1.6 billion due in 2030 and thereafter[62] - The company had total undiscounted lease payments of $4,599,481 thousand as of March 31, 2025, with future payments scheduled through 2030 and beyond[62]