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

Financial Performance - Net loss attributable to common stockholders for Q1 2025 was $(44.9) million or $(0.13) per diluted share[6] - Net loss attributable to common stockholders for Q1 2025 was $(44,873), compared to $(106,846) in Q4 2024, showing an improvement of approximately 58%[27] - Net loss for Q1 2025 was ($45,389), an improvement from ($108,212) in Q4 2024[99] - EBITDA for Q1 2025 was $167,829, significantly higher than $117,376 in Q4 2024[99] - Total Cash NOI for Q1 2025 was $182,598,000, with same store NOI at $171,943,000[102] Revenue and Income - Rental income for Q1 2025 was $288,857, down from $300,065 in Q4 2024, a decrease of about 0.7%[27] - Total cash NOI for Q1 2025 was $182,098, a decrease of 9.1% compared to Q4 2024 and a decrease from $200,378 in Q1 2024[82] - Same store cash NOI increased by 2.3% year-over-year, reaching $171,942 in Q1 2025[86] - The company reported a year-over-year revenue increase of 3.0%, with base revenue rising by 2.8%[86] - The average revenue per occupied square foot increased by 2.0% year-over-year, reaching $36.75 in Q1 2025[86] Funds from Operations (FFO) - Normalized FFO per share for the quarter was $0.39, with a year-over-year cash NOI increase of 2.3%[8] - The company reaffirmed its 2025 guidance for normalized FFO per share between $1.56 and $1.60, with Q1 actual at $0.39[10] - Funds from operations (FFO) for Q1 2025 increased to $123,774 thousand, compared to $105,642 thousand in Q4 2024, representing a 17.4% growth[31] - Normalized FFO for Q1 2025 was $137,722 thousand, slightly down from $143,414 thousand in Q4 2024, indicating a 3.8% decrease[31] Occupancy and Leasing Activity - Same store occupancy increased to 89.3% from 89.2% in Q4 2024, with tenant retention rising to 84.8%[8] - The company signed new leases totaling 370,000 square feet in Q1 2025, with total leasing activity of 1,450,000 square feet across 377 leases[8] - The average occupancy rate for the total portfolio was 88.3%, slightly down from 88.4% in Q4 2024 but up from 87.8% in Q1 2024[83] - The MOB tenant retention rate was 84.8%, indicating strong tenant stability[77] Debt and Financial Ratios - The run rate net debt to adjusted EBITDA was 6.4 times, with net debt to enterprise value at 45.1%[14] - Total debt as of March 31, 2025, is $4,953,219, with net debt at $4,927,497[44] - The leverage ratio is 39.3%, well below the maximum requirement of 60%[46] - Fixed charge coverage ratio stands at 2.8x, exceeding the minimum requirement of 1.50x[46] - Net debt to adjusted EBITDA ratio for Q1 2025 was 6.5x, compared to 6.4x in Q4 2024[99] Assets and Equity - As of March 31, 2025, the company had an enterprise value of $10.9 billion and a market capitalization of $6.0 billion[14] - Total assets decreased to $10,496,269 from $10,650,923 in the previous quarter, representing a decline of approximately 1.45%[24] - Total stockholders' equity decreased to $5,078,270 from $5,234,861 in the previous quarter, a decline of approximately 2.97%[24] - The company has a total of $11,668,609 in consolidated unencumbered assets[47] Dividends and Shareholder Returns - A common stock cash dividend of $0.31 per share will be paid on May 23, 2025[7] - Total shares outstanding as of March 31, 2025, were 355,143,647[108] Development and Redevelopment Projects - Recently completed development projects total 325,077 square feet with an occupancy rate of 61% and a projected stabilized yield of 7.0%-8.5%[57] - Active major redevelopment projects encompass 647,570 square feet, achieving an occupancy rate of 79% and a projected stabilized yield of 9.0%-12.0%[57] - The total active major re/development projects amount to 972,647 square feet, with an overall occupancy rate of 73% and a total cost budget of $259 million[57] - The company has a projected stabilization period post-completion of 12 to 36 months for its development projects[57] Market and Property Overview - The company has a total of 31,718,533 square feet across 648 properties, with 93.3% of the space being wholly owned[58] - The cumulative percentage of net operating income (NOI) from the top markets includes Dallas (9.1%), Seattle (6.0%), and Charlotte (4.9%)[58] - The company holds 472 multi-tenant properties totaling 28,813,310 square feet, which accounts for 75.3% of the total square footage[59] - The total investment across all properties is $12,132,212 thousand, with a quarterly cash NOI of $182,315 thousand[59] Guidance and Projections - Same store cash NOI growth guidance for 2025 is between 3.00% and 3.75%, with Q1 2025 actual growth at 2.3%[111] - The company anticipates asset sales and joint venture contributions between $400,000,000 and $500,000,000 for 2025[111]