Healthcare Realty Trust Incorporated (NYSE: HR) has reported its financial results for the fourth quarter ended December 31, 2023. The company revealed a net loss attributable to common stockholders of $(40.5) million, or $(0.11) per diluted common share, for the quarter, and normalized FFO (funds from operations) of $150.7 million, or $0.39 per diluted common share.
According to the company, its merger combined same store cash net operating income (NOI) for the fourth quarter increased by 2.7% over the prior year, and 2.8% for the full year. The company also provided predictive growth measures, including average in-place rent increases of 2.8%, future annual contractual increases of 2.9% for leases commencing in the quarter, and weighted average cash leasing spreads of 3.3% on 607,000 square feet renewed.
In terms of leasing, the portfolio leasing activity that commenced in the fourth quarter totaled 1,224,000 square feet related to 340 leases, with 703,000 square feet of renewals, 508,000 square feet of new, and 13,000 square feet of expansion leases.
During the quarter, the company sold 27 properties totaling $338 million, and additional dispositions in 2023 totaled 36 properties for $656 million at an average cap rate of 6.6%. The company stated that the 2023 total dispositions improved the quality and growth profile of the portfolio.
In relation to the balance sheet, the company's net debt to adjusted EBITDA was 6.4 times at the end of the quarter, and it executed interest rate swaps totaling $275 million during the fourth quarter.
A dividend of $0.31 per share was paid in November 2023, and a dividend of $0.31 per share will be paid on March 14, 2024, to stockholders and OP unitholders of record on February 26, 2024.
Regarding the outlook, the company's 2024 guidance range represents the in-place portfolio as of February 16, 2024, and includes the following expectations: earnings per share of $(0.11) to $(0.74), NAREIT FFO per share of $0.36 to $1.43, and normalized FFO per share of $0.39 to $1.57.
In a statement, [Insert Name], [Insert Title] at Healthcare Realty Trust, commented, "We are pleased with our performance in the fourth quarter and the full year. Our focus remains on executing our strategic priorities to drive long-term value for our shareholders."
The company's shares have moved -6.5% today, and are now trading at a price of $14.57.
The company's full 8-K submission is available here.
