Financial Performance - For the three months ended March 31, 2025, the net loss attributable to common stockholders was $5.0 million, a significant improvement from a net loss of $19.0 million in the same period of 2024[241]. - Revenue from tenants decreased to $86.4 million for the three months ended March 31, 2025, down from $88.3 million in 2024, reflecting a decline of 2.1%[241]. - The company's outpatient medical facilities (OMFs) segment reported a revenue decrease of 11.5%, with tenant revenue of $30.6 million compared to $34.6 million in 2024[242]. - The senior housing operating properties (SHOP) segment experienced a revenue increase of 3.9%, reaching $55.8 million for the three months ended March 31, 2025[244]. - General and administrative expenses decreased by $1.6 million to $5.2 million for the three months ended March 31, 2025, from $6.8 million for the same period in 2024[252]. - Depreciation and amortization expenses increased by $3.0 million to $23.7 million for the three months ended March 31, 2025, from $20.7 million for the same period in 2024[253]. - Interest expense decreased by $1.9 million to $14.5 million for the three months ended March 31, 2025, from $16.4 million for the same period in 2024[255]. - Funds from Operations (FFO) attributable to stockholders for the three months ended March 31, 2025, was $4.116 million, up from $0.907 million in 2024[293]. - Adjusted Funds from Operations (AFFO) attributable to stockholders for the three months ended March 31, 2025, was $8.785 million, compared to $1.505 million in 2024[293]. - Total cash distributions for the three months ended March 31, 2025, amounted to $3.497 million, with 52.4% going to Series A Preferred Stockholders and 46.2% to Series B Preferred Stockholders[300]. - Cash flows used in operations for the three months ended March 31, 2025, were $21.229 million, indicating insufficient cash generation to fund current distribution rates[302]. Property and Asset Management - As of March 31, 2025, the company owned 181 properties across 30 states, totaling 7.6 million rentable square feet[228]. - The total gross asset value of the company's real estate investments was approximately $2.3 billion as of March 31, 2025[238]. - The weighted average remaining lease term for the OMF segment was 5.8 years as of March 31, 2025[237]. - The company internalized its property management and advisory functions on September 27, 2024, eliminating previous management fees[233]. - SHOP NOI increased due to positive revenue trends from occupancy gains and expense management, partially offset by the disposition of two SHOPs[246]. - The company disposed of twelve OMFs for an aggregate contract sales price of $168.4 million, recording a gain on sale of $25.0 million during the three months ended March 31, 2025[254]. - The company disposed of one OMF and three SHOPs for an aggregate contract sales price of $9.1 million after March 31, 2025[284]. Debt and Capital Structure - As of March 31, 2025, total debt leverage ratio was approximately 44.6%, with net debt totaling $1.0 billion[272]. - As of March 31, 2025, the company had $721.0 million in mortgage notes payable at a weighted-average annual interest rate of 4.63%[276]. - Capital expenditures for the three months ended March 31, 2025, were $5.7 million, with $3.6 million related to the OMF segment and $2.1 million related to the SHOP segment[282]. - A reverse stock split was executed on September 30, 2024, consolidating every four shares into one[234]. - The Board authorized a stock repurchase program for up to $50.0 million of Series A and Series B Preferred Stock, with no stated expiration date[285]. Dividend Policy - The company declared no further stock dividends after January 2024, having issued quarterly dividends entirely in shares of common stock from October 2020 to January 2024[231]. - The company has not paid cash dividends on common stock since mid-2020, opting instead for stock dividends until January 2024[296]. - The ability to pay distributions depends on increasing cash generated from property operations, which is subject to various risks and uncertainties[303]. Economic Indicators - The increase in the 12-month Consumer Price Index as of March 31, 2025, was 3.0%, impacting lease agreements without indexed escalation provisions[304].
HEALTHCARE(HTIA) - 2025 Q1 - Quarterly Report