Q2 2024 Healthcare Realty Trust Inc Earnings Call Transcript
Key Points
- Healthcare Realty Trust Inc (HR) reported a strong second quarter with normalized FFO of $0.38 per share, slightly impacted by a Steward revenue reserve.
- The company expects to generate over $1 billion from completed or planned JVs and asset sales, with significant contributions from partnerships with KKR and Nuveen.
- Operational momentum is strong, with four consecutive quarters of over 400,000 square feet of new leases signed and a notable increase in multi-tenant occupancy.
- Second quarter retention improved to 85%, reducing lost rent from downtime and tenant improvement costs.
- Operating expenses are well-controlled, with a year-over-year decline in the second quarter and expected growth contained within 2% to 3% for the full year.
- The Steward revenue reserve impacted the FFO per share, reducing it by $0.01.
- Maintenance CapEx spending on tenant improvements and commissions is elevated, impacting short-term financials.
- Leverage remains relatively high at 6.4 times, although it is expected to trend lower with future transactions.
- The company has taken impairments related to asset sales, impacting the income statement.
- Cash leasing spreads declined slightly quarter over quarter, indicating potential tenant pushback on rent increases.
Good afternoon. Thank you for attending the Healthcare Realty second quarter earnings conference call. My name is Cameron, and I'll be your moderator for today. (Operator Instructions)
I would now like to pass the conference over to your host, Ron Hubbard, Vice President of Investor Relations. You may proceed.
()- -
Thank you for joining us today for Healthcare Realty second quarter 2024 earnings conference call. Joining me on the call today are Todd Meredith, Kris Douglas and Rob Hull. A reminder that except for the historical information contained within the matters discussed in this call may contain forward-looking statements that involve estimates, assumptions, risks and uncertainties.
These risks are more specifically discussed in the company's Form 10-K filed with the SEC for the year ended December 31, 2023. These forward-looking statements represent the company's judgment as of the date of this call.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
