The following is a summary of the Healthcare Realty Trust, Inc. (HR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Healthcare Realty Trust reported normalized FFO per share of $0.39 and an accelerated NOI growth of 3% up from 2.7% in the previous quarter.
Despite noncash accounting impairment of $250 million, the company's growth prospects remain unaffected.
Income for the quarter was impacted by the $250 million goodwill write-off.
A strategic partnership with KKR is expected to generate $300 million with separate transactions expected to further generate $300 million in the next 90 days.
Business Progress:
The company is focusing on operational momentum and capital allocation, including a strategy to improve dividend coverage.
Proceeds from JVs and asset sales will be used to repurchase stocks on a leverage-neutral basis.
The authorized new $500 million share repurchase program is underway. The KKR joint venture, which includes 12 properties, is expected to generate about $300 million in the short term.
An increase in the multi-tenant portfolio's occupancy rate is evident, with further growth anticipated during the second half of the year.
As part of its strategic initiatives, it plans to leverage the joint venture with KKR as a seed portfolio for future investment and to maintain its debt to EBITDA within the target range of 6 to 6.5x.
An increase in same-store growth to 3%, which is expected to accelerate through the rest of the year.
The company remains confident to maintain its current dividend strategy and foresees a period of accelerated growth into 2024.
More details: Healthcare Realty Trust Inc IR
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