Healthcare Realty Trust rporated(US:HR)2025-10-30 20:20Financial Performance - GAAP Net loss for Q3 2025 was $(57,738) thousand, or $(0.17) per share, compared to a net loss of $(93,023) thousand, or $(0.26) per share in Q3 2024[9]. - NAREIT FFO for Q3 2025 was $118,922 thousand, or $0.34 per share, up from $77,288 thousand, or $0.21 per share in the same quarter last year[9]. - Normalized FFO for Q3 2025 was $145,340 thousand, or $0.41 per share, compared to $142,049 thousand, or $0.39 per share in Q3 2024[9]. - The net loss attributable to common stockholders in Q3 2025 was $(57,738) thousand, an improvement from $(157,851) thousand in Q2 2025[36]. - Funds from Operations (FFO) for 3Q 2025 was $118,922 thousand, consistent with $120,371 thousand in 2Q 2025, while FFO per diluted share remained stable at $0.34[40]. - Normalized FFO for 3Q 2025 increased to $145,340 thousand, compared to $143,736 thousand in 2Q 2025, with normalized FFO per diluted share at $0.41[40]. - Net loss for Q3 2025 was $58,544,000, an improvement from a loss of $160,144,000 in Q2 2025[103]. - Cash NOI for Q3 2025 was $184,413,000, slightly down from $186,641,000 in Q2 2025[108]. - Same store cash NOI increased to $157,928,000 in Q3 2025 from $156,872,000 in Q2 2025, reflecting a growth of 0.7%[108]. Asset Management - The company executed 333 new and renewal leases totaling 1.6 million square feet during Q3 2025[10]. - The company completed asset sales totaling $404 million through 15 transactions in Q3 2025, with year-to-date sales reaching $486 million at a blended cap rate of 6.5%[11]. - Total assets decreased to $9,859,647 thousand in Q3 2025 from $10,235,572 thousand in Q2 2025, representing a decline of approximately 3.7%[33]. - Total liabilities decreased to $5,114,801 thousand in Q3 2025 from $5,354,146 thousand in Q2 2025, a reduction of approximately 4.5%[33]. - The company held $604,747 thousand in assets held for sale, net, in Q3 2025, an increase from $358,207 thousand in Q2 2025, reflecting a rise of 68.8%[33]. - The company has identified 43 properties as assets held for sale, which are excluded from same store cash NOI[120]. Liquidity and Debt - The company has approximately $1.3 billion of liquidity as of October 2025[15]. - Run-rate Net Debt to Adjusted EBITDA was 5.8x, expected to be between 5.4x and 5.7x by year-end[11]. - As of September 30, 2025, the total principal balance of debt is $4,684,130, with a net debt of $4,640,785 after accounting for cash[51]. - The company has a leverage ratio of 39.2%, which is below the maximum requirement of 60%[55]. - The fixed charge coverage ratio stands at 3.3x, exceeding the minimum requirement of 1.50x[55]. - Total debt as of Q3 2025 was $4,485,706,000, down from $4,694,391,000 in Q2 2025[112]. - The company reported a net debt to adjusted EBITDA ratio of 5.8x for Q3 2025, consistent with prior guidance[122]. Revenue and Income - Rental income for Q3 2025 was $287,399 thousand, slightly up from $287,070 thousand in Q2 2025, indicating a growth of 0.1%[36]. - Total cash NOI for Q3 2025 reached $184,413, with same store cash NOI contributing $157,928[94]. - Year-over-year revenue growth for same store properties was 4.1%, with base revenue increasing by 4.2%[98]. - Multi-tenant properties accounted for 65% of total cash NOI, generating $120,762 in Q3 2025[94]. - Cash NOI for same store properties increased by 5.4% year-over-year, reaching $157,928 in Q3 2025[98]. Expenses and Costs - General and administrative expenses decreased to $21,771,000 in Q3 2025 from $23,482,000 in Q2 2025, a reduction of approximately 7.3%[108]. - Total maintenance capital expenditures for 3Q 2025 amounted to $(27,155) thousand, representing 14.7% of Cash NOI[45]. - The company incurred restructuring and severance-related charges of $12,046 thousand in 3Q 2025, up from $10,302 thousand in 2Q 2025[40]. - Depreciation and amortization expenses were $137,841 thousand in Q3 2025, down from $147,749 thousand in Q2 2025, a decrease of 6.1%[36]. Leasing and Occupancy - Same store cash NOI growth was +5.4%, driven by a 90 basis points increase in occupancy and tenant retention of 88.6%[11]. - The weighted average lease term (WALT) for all leasing commitments in 3Q 2025 was 60.0 months, an increase from 43.8 months in 2Q 2025[46]. - The occupancy rate for wholly-owned properties is 89.4%, with a weighted average lease term (WALT) of 116 months[83]. - The number of leases in the multi-tenant category was 393, with an occupancy rate of 89.5%[95]. - Tenant retention rate improved to 88.6% in Q3 2025, compared to 83.1% year-to-date[89]. Future Projections - The company increased its 2025 guidance for Normalized FFO per share to a range of $1.59 - $1.61 and Same Store Cash NOI growth to 4.00% - 4.75%[11]. - The company projects same store cash NOI growth for 2025 to be between 4.00% and 4.75%, with a year-to-date growth of 4.6%[122]. - Year-end same store net absorption is projected to be between 75 and 125 basis points, with a current year-to-date figure of 77 basis points[122].