Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Q2 2024 Earnings Presentation
11 slides from Healthcare Realty Trust's earnings presentation, August 2024
Slide 1: Investor Presentation Key Highlights
August 2024 Investor Presentation Key Highlights
Slide 2: 2024 Progress
2024 Progress Building momentum that accelerates FFO growth and dividend coverage 2Q Results $0.38 per share 2Q FFO, $0.39 without Steward revenue reserve Accelerating same store operating metrics 3.5% NOI growth(1) 85.5% tenant retention 2.9% cash leasing spreads Raised mid-point of full year FFO g
Slide 3: Capital Allocation Momentum
Capital Allocation Momentum Generating proceeds to repurchase shares and repay debt JV Contributions In early May, HR announced a $383M, 80/20 JV seed portfolio with KKR & Asset Sales KKR committed up to $600M of additional equity capital to the JV to pursue further investments from HR property cont
Slide 4: Operational Momentum
Operational Momentum Delivering multi-tenant occupancy gains Multi-tenant Delivered occupancy gain in 2Q of 122,000 square feet, or 37 bps Occupancy and 183,000 square feet 1H occupancy gain, exceeding 1H bridge guidance NOI Bridge Progress Occupancy has increased by 112 bps since 3Q 2023 On track w
Slide 5: Multi-tenant Occupancy and NOI Bridge
Multi-tenant Occupancy and NOI Bridge 5.5% 2Q 2024 occupancy exceeded Projected Y-o-Y expectations and NOI growth was at Multi-tenant the top end of expected range. NOI Growth 4.4% Projected 4.0% 3.9% (3) 1H 2024 2H 2024 Projected Actual Projected 3.3% Multi-tenant Properties(1) 2.8% 2.8% SF in 000s
Slide 6: Multi-tenant Occupancy Trends
Multi-tenant Occupancy Trends Over the last three quarters, total multi-tenant occupancy has increased by 112 bps and Legacy HTA properties by 172 bps Multi-tenant – Total Portfolio Multi-tenant – Legacy HTA 88% 88% 87.6% 87% 87% 86.8% Total Leased 85.9% 86.0% 86.0% 86% 86% HTA Leased Total OCCUPANC
Slide 7: Leasing Momentum
Leasing Momentum Multi-tenant Portfolio New Signed Leasing Activity Leasing Pipeline Represents approximately four quarters of future lease signings Active Tours ~50% 447K SF 440K SF 425K SF 432K SF 376K SF LOI/Proposal ~30% 240K SF Lease Out/ Document Prep ~20% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 20
Slide 8: Portfolio Quality Allocation
Portfolio Quality Allocation The Big Picture (1)(2) JV contributions align with wholly-owned portfolio profile while asset sales are underweight(1) Top 50 MSA Clustered Multi-tenant HR Port. 88% HR Port. 70% HR Port. 86% JV 100% JV 73% JV 88% Dispos. 57% Dispos. 50% Dispos. 80% Occupancy Average Esc
Slide 9: Strong Relative MOB Supply - Demand
Strong Relative MOB Supply - Demand MOB Development Starts TRAILING TWELVE MONTHS Annual Average Occupancy Change SECTOR COMPARISON 18M SF 4-YEAR (since pandemic) 2-YEAR (recovery) 16M +0.5% +0.5% 14M 12M -0.3% -0.3% -1.0% -1.0% 10M -1.5% -1.5% -1.5% -2.0% -1.8% 8M 6M -4.5% 4M LIFE MULTI- SELF INDUS
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: 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
Healthcare Realty Trust — Q2 2024 Earnings Presentation on 6ix