Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Q1 2024 Earnings Presentation
10 slides from Healthcare Realty Trust's earnings presentation, June 2024
Slide 1: Investor Presentation Key Highlights
June 2024 Investor Presentation Key Highlights
Slide 2: 2024 Progress
2024 Progress Building momentum that accelerates FFO growth and dividend coverage 1Q Results $0.39 per share 1Q FFO, at high end of guidance Accelerating same store operating metrics 3.0% NOI growth 85% tenant retention 3.7% cash leasing spreads Capital Announced a $383 million JV with KKR at a 6.6%
Slide 3: Capital Allocation Momentum
Capital Allocation Momentum Generating proceeds to repurchase shares on a leverage neutral basis KKR JV In early May, HR announced plans to contribute 12 existing properties to seed JV portfolio at value of $383M at a 6.6% cap rate KKR to make equity contribution equal to 80% of value; HR will retai
Slide 4: Operational Momentum
Operational Momentum Focused on improving multi-tenant occupancy Occupancy and Delivered multi-tenant occupancy gain in 1Q of 57,000 square feet, or 17 bps, NOI Bridge on track with plan Progress Noteworthy, given 1.6M square feet of expirations in 1Q, nearly 2x the expirations from 4Q and highest q
Slide 5: Multi-tenant Occupancy and NOI Bridge
Multi-tenant Occupancy and NOI Bridge Projected 1Q 2024 Progress First quarter multi- Expected Y-o-Y tenant occupancy Multi-tenant Absorption (SF) 56,972 and NOI are on NOI Growth track with 1H 2024 Change in Occupancy (bps) +17 5.5% expectations Occupancy 85.4% NOI Growth (Y-o-Y) 2.8% 4.4% 4.0% Act
Slide 6: Multi-tenant Occupancy Trends
Multi-tenant Occupancy Trends Over the last two quarters, total multi-tenant occupancy has increased by 70 bps and legacy HTA properties by 130 bps Multi-tenant – Total Portfolio Multi-tenant – Legacy HTA 88% 88% 87.1% 87% 87% 86.7% Total Leased SNO +170 bps 86% 86% 85.7% 85.6% 85.4% HTA Total Lease
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 LOI/Proposal 376K SF ~30% 240K SF Lease Out/ Document Prep ~20% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1.4-1
Slide 8: 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) 2-YEAR (recovery) 18M SF 16M +0.5% +0.4% 14M -0.3% -0.3% 12M -1.0% -0.9% -1.5% -1.3% -1.7% -1.7% -2.0% 10M 8M -4.4% 6M LIFE MULTI- SELF INDUSTRI
Slide 9: 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 10: Additional information regarding the Company
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 — Q1 2024 Earnings Presentation on 6ix