Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Q3 2024 Earnings Presentation
11 slides from Healthcare Realty Trust's earnings presentation, October 2024
Slide 1: Investor Presentation Key Highlights
October 2024 Investor Presentation Key Highlights
Slide 2: Executing on 2024 Plan
Executing on 2024 Plan Accelerating FFO growth and improving dividend coverage 3Q and YTD $0.39 per share 3Q Normalized FFO Results Continued strength in same store operating metrics 3.1% NOI growth for 3Q, 3.2% year-to-date 80.5% tenant retention for 3Q, 83.8% year-to-date 3.9% cash leasing spreads
Slide 3: Capital Allocation
Capital Allocation Accretively redeployed $875 million of capital JV Contributions Contributed properties valued at $634 million to JVs with KKR and Nuveen, & Asset Sales generating proceeds of $522 million HR selected as best in class outpatient medical platform Sold assets totaling $353 million ye
Slide 4: Operational Execution
Operational Execution 106 basis points of YTD multi-tenant occupancy gains Multi-tenant Delivered occupancy gain in 3Q of 159,000 square feet, or 49 bps Occupancy and 341,000 square feet year-to-date occupancy gain, or 106 bps NOI Bridge Occupancy has increased 164 bps over last four quarters Tracki
Slide 5: Multi-tenant Occupancy and NOI Bridge
Multi-tenant Occupancy and NOI Bridge 164 bps of occupancy gains, tracking 5.5% to high-end of 150-200 bps goal. Projected 3Q 2024 Results Y-o-Y Multi-tenant NOI Growth Absorption (SF) 158,720 Change in Occupancy (bps) +49 4.4% Projected Occupancy 86.5% 4.0% 3.9% (3) NOI Growth (Y-o-Y) 3.5% 3.5% 3.3
Slide 6: Multi-tenant Occupancy Trends
Multi-tenant Occupancy Trends Over the last four quarters, total multi-tenant occupancy has increased by 164 bps and Legacy HTA properties by 230 bps Multi-tenant – Total Portfolio Multi-tenant – Legacy HTA 88% 87.8% 88% Total Leased 87% 86.9% 87% 86.6% 86.5% 86.3% HTA 86% 86% Leased OCCUPANCY +164
Slide 7: Leasing Momentum
Leasing Momentum Multi-tenant Portfolio New Signed Leasing Activity Represents approximately Leasing Pipeline four quarters of future lease signings Active Tours ~50% 447K SF 440K SF 425K SF 432K SF 431K SF 376K SF LOI/Proposal ~30% 240K SF Lease Out/ Document Prep ~20% 1Q 2023 2Q 2023 3Q 2023 4Q 20
Slide 8: Portfolio Quality Allocation: The Big Picture
Portfolio Quality Allocation The Big Picture (1)(2) JV contributions align with wholly-owned portfolio profile while asset sales are underweight preferred characteristics(1) Top 50 MSA Clustered Multi-tenant HR Port. 89% HR Port. 71% HR Port. 86% JV 95% JV 79% JV 85% Dispos. 55% Dispos. 52% Dispos.
Slide 9: Strong Relative MOB Supply - Demand
Strong Relative MOB Supply - Demand Annual Average Occupancy Change MOB Development Starts SECTOR COMPARISON TRAILING TWELVE MONTHS 4-YEAR (since pandemic) 18M SF 2-YEAR (recovery) 16M +0.4% +0.5% 14M -0.1% 12M -0.3% -0.4% -1.3% -1.2% -1.7% 10M -3.2% 8M -7.5% 6M LIFE MULTI- SELF INDUSTRIAL MOB 4M SC
Slide 10: Secular Demand Trends
Secular Demand Trends Relative Increase in Population Annual Physician Office Visits and Healthcare Costs BY AGE, 2023 - 2O33 (Projected) BY AGE 67.7% of US population growth is among the 2 Visits/year +6.9M 65+ cohort. < 45 $5,100/year < 65 2023 2033 (+2.5%) 278M 285M 4 Visits/year +14.5M 45 - 64 $
Slide 11: Additional information and forward-looking statements
Additional information regarding the Company, including this quarter's operations, can be found at www.healthcarerealty.com. In addition to the historical information contained within, this press release contains certain forward-looking statements with respect to the Company. Forward-looking stateme
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