Healthcare Realty Trust rporated(US:HR)2025-10-31 20:16Financial Performance - Rental income for Q3 2025 was $287,399,000, a decrease of 6.9% from $306,499,000 in Q3 2024[12] - Total revenues for the nine months ended September 30, 2025, were $894,243,000, down 6.7% from $958,550,000 in the same period of 2024[12] - Net loss for Q3 2025 was $58,544,000, compared to a net loss of $94,535,000 in Q3 2024, representing a 38.0% improvement[13] - Basic earnings per common share for Q3 2025 were $(0.17), an improvement from $(0.26) in Q3 2024[12] - Comprehensive loss for the nine months ended September 30, 2025, was $269,441,000, compared to $562,022,000 in the same period of 2024, indicating a significant reduction[13] - For the nine months ended September 30, 2025, the net loss was $264,076,000, compared to a net loss of $555,692,000 for the same period in 2024, representing a 52% improvement[17] - The Company reported a net loss of $(58,544) thousand for the three months ended September 30, 2025, resulting in a basic and diluted earnings per share of $(0.17)[102] Revenue and Income Sources - Gain on sales of real estate properties for Q3 2025 was $76,771,000, an increase of 95.5% from $39,310,000 in Q3 2024[12] - Total revenue from contracts with customers for Q3 2025 was $6.886 million, an increase of 37% from $5.020 million in Q3 2024[52] - Management fee income and other for Q3 2025 was $4.707 million, up 77% from $2.657 million in Q3 2024[52] - Revenue from parking income for the three months ended September 30, 2025, was $2.179 million, a decrease from $2.363 million in 2024[52] Expenses and Costs - Property operating expenses for Q3 2025 were $113,456,000, down 5.9% from $120,232,000 in Q3 2024[12] - Total expenses for the nine months ended September 30, 2025, were $835,412,000, a decrease of 9.6% from $924,309,000 in the same period of 2024[12] - Total significant segment expenses for the three months ended September 30, 2025, were $101.4 million, a decrease of 6.8% from $108.6 million in 2024[120] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $324,756,000, a decrease from $363,605,000 in 2024[17] - The company had net cash used in financing activities of $534,519,000 for the nine months ended September 30, 2025, compared to $845,294,000 in 2024[17] - The company had net cash provided by investing activities of $184,344 thousand for the nine months ended September 30, 2025, down from $482,149 thousand in 2024, a decline of about 62%[17] Assets and Liabilities - The Company had total assets of $113.05 million and total liabilities of $72.64 million as of September 30, 2025, compared to total assets of $108.15 million and total liabilities of $63.00 million as of December 31, 2024[29] - The Company had $4.49 billion in notes and bonds payable as of September 30, 2025[72] - The Company had $1.4 billion available to be drawn on its $1.5 billion Unsecured Credit Facility as of September 30, 2025[73] Real Estate and Property Management - Total gross investments as of September 30, 2025, amounted to approximately $10.4 billion across 519 consolidated real estate properties[19] - The company provided leasing and property management services to 93% of its portfolio nationwide as of September 30, 2025[19] - The Company had 178 ground leases covering 12.8 million square feet as of September 30, 2025[68] - As of September 30, 2025, the company had 43 properties and two land parcels classified as assets held for sale, compared to three properties as of December 31, 2024[62] Shareholder Information - Total dividends paid for the nine months ended September 30, 2025, were $302,528,000, compared to $348,064,000 in 2024[17] - The Company declared and paid common stock dividends totaling $0.86 per share during the nine months ended September 30, 2025[98] - The Company had a balance of 351,604,207 shares of common stock outstanding as of September 30, 2025, an increase from 350,532,006 shares at the beginning of the period[97] Credit and Impairment - Impairment of real estate properties and credit loss reserves for the nine months ended September 30, 2025, totaled $258,791,000, up from $232,450,000 in the same period of 2024[12] - The allowance for credit losses increased to $18.27 million as of September 30, 2025, up from $16.80 million at the end of 2024[46] - The Company recorded a credit loss reserve of $1.5 million in the second quarter of 2025 due to increased risk of credit loss on a mortgage note receivable[46] Debt and Financing Activities - The Company entered into a new $1.5 billion Unsecured Credit Facility on July 25, 2025, which includes a revolving credit facility and multiple term loan tranches[78] - The Company repaid $250 million of Senior Notes due 2025 at maturity, including $4.8 million of accrued interest[74] - The Company had seven outstanding interest rate swaps with a total notional amount of $500,000 and a weighted average rate of 3.65%[88] Future Outlook and Changes - The company is evaluating the impact of the new accounting standards update (ASU 2024-03) on its financial statements, effective for annual reporting periods beginning after December 15, 2026[54] - The company expects future amortization of non-vested share-based awards to total $27.8 million, with $3.2 million in 2025 and $11.3 million in 2026[114]