Healthcare Realty Trust Incorporated (NYSE: HR) released its fourth-quarter results for the period ending December 31, 2024. The company reported a net loss of $(106.8) million, or $(0.31) per diluted common share. However, normalized FFO per share saw a 2.5% increase over the prior year period, totaling $0.40 for the quarter and $1.56 for the year.
The company closed joint venture and asset sale transactions totaling $522 million in the fourth quarter, generating approximately $1.3 billion of proceeds for the year. Additionally, Healthcare Realty Trust repurchased approximately 31 million shares totaling $510 million at an average price of $16.56 per share.
In terms of multi-tenant growth and absorption, the company saw a 3.4% increase in cash NOI growth for the fourth quarter and a 3.0% increase for the year. Excluding the impact of Steward Health and Prospect Medical, the growth was 3.9% for the quarter and 3.2% for the year.
Leasing activity saw 686,000 square feet of signed new leases in the quarter, marking the sixth consecutive quarter above 400,000 and a new single-quarter high. Tenant retention for the fourth quarter was at 81.6% and 83.4% for the year.
The company's net debt to adjusted EBITDA was reported at 6.4 times, down from 6.7 times in the third quarter, and it fully repaid its $350 million unsecured term loan maturing in 2025. At year-end, the company had no balance on its revolving credit facility, resulting in $1.5 billion of availability.
In terms of guidance, the company provided estimated guidance ranges for 2025. The NAREIT FFO per share for 2025 is expected to be between $1.44 and $1.48, while the normalized FFO per share is estimated to remain at $1.56. The same store cash NOI growth estimated guidance range for 2025 is 3.00% to 3.75%, excluding the impact of Prospect Medical and Steward Health.
The company also provided an update on Steward Health and Prospect Medical, stating that it made significant progress re-leasing space previously occupied by Steward Health and entered 2025 having replaced approximately $19 million of the $27 million of pre-bankruptcy total exposure to Steward.
Finally, the company announced a common stock cash dividend in the amount of $0.31 per share, to be paid on March 19, 2025, to class A common stockholders of record on March 3, 2025. Additionally, eligible holders of operating partnership units will receive a distribution of $0.31 per unit, equivalent to the company's class A common stock dividend. The market has reacted to these announcements by moving the company's shares -0.8% to a price of $16.86. For the full picture, make sure to review Healthcare Realty Trust's 8-K report.
