8-K
Healthcare Realty Trust Inc (HR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 8, 2024 (July 8, 2024)
Healthcare Realty Trust Incorporated
(Exact name of registrant as specified in its charter)
| Maryland | 001-35568 | 20-4738467 | ||||
|---|---|---|---|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||
| 3310 West End Avenue, Suite 700 | Nashville, | Tennessee | 37203 | (615) | 269-8175 | |
| --- | --- | --- | --- | --- | --- | --- |
| (Address of Principal Executive Office and Zip Code) | (Registrant’s telephone number, including area code) | |||||
| www.healthcarerealty.com | ||||||
| --- | ||||||
| (Internet address) |
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A Common Stock, $0.01 par value per share | HR | New York Stock Exchange |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):
| ☐ | Emerging growth company |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| ☐ | |
|---|---|
| Item 8.01 | Other Events. |
| --- | --- |
Second Quarter Business Update Press Release
On July 8, 2024, Healthcare Realty Trust Incorporated (the “Company”) issued a press release providing a second quarter update on its operational and capital allocation momentum. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| 99.1 | Second quarter business update press release, dated July 8, 2024. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Healthcare Realty Trust Incorporated | ||
|---|---|---|
| Date: July 8, 2024 | By: | /s/ J. Christopher Douglas |
| Name: J. Christopher Douglas | ||
| Title: Executive Vice President - Chief Financial Officer |
Document
Exhibit 99.1
Ron Hubbard
Vice President, Investor Relations
P: 615.269.8290
News Release
HEALTHCARE REALTY TRUST PROVIDES SECOND QUARTER BUSINESS UPDATE ON OPERATIONAL AND CAPITAL ALLOCATION MOMENTUM
Multi-tenant new leases signed totaling 432,000 square feet
1H 2024 multi-tenant occupancy gain of 183,000 square feet, above guidance range
Steward Health has paid substantially all rent for June and July
Greater than $1 billion in completed or planned asset sales and JV transactions
$286 million in shares repurchased to date
NASHVILLE, Tennessee, July 8, 2024 - Healthcare Realty Trust Incorporated (NYSE:HR) today provided a second quarter update on its operational and capital allocation momentum.
OPERATIONAL MOMENTUM
In the second quarter, new signed leases totaled 432,000 square feet, the fourth consecutive quarter above 400,000. Multi-tenant absorption in the second quarter was 122,000 square feet. Combined with the first quarter, multi-tenant absorption for the first half of the year was 183,000 square feet, which was above the guidance range of 90,000 to 140,000 square feet provided in the Company’s Multi-tenant Occupancy and NOI Bridge. Over the last three quarters, multi-tenant occupancy has increased 371,000 square feet, representing approximately 110 basis points of positive absorption.
STEWARD HEALTH
Steward Health has paid substantially all rent owed for June and July. In the second quarter, Healthcare Realty expects to reserve approximately $3.0 million of unpaid pre-bankruptcy rent, which includes a portion of March, all of April, and the first five days of May. Rent owed for May following Steward’s bankruptcy filing on May 6th is expected to be paid as part of the outcome of the bankruptcy process.
CAPITAL ALLOCATION MOMENTUM
As previously disclosed, Healthcare Realty has generated approximately $400 million of proceeds from joint venture (JV) and asset sale transactions year-to-date. The Company also has additional asset sales and JV transactions under contract or LOI that are now expected to increase proceeds to over $1 billion. This includes expected proceeds from asset contributions to the Company’s KKR and Nuveen Real Estate JVs. The majority of these transactions are expected to be completed in the third quarter, and proceeds will fund accretive, leverage neutral share repurchases and existing capital commitments.
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Exhibit 99.1
To date, the Company has repurchased 18.0 million shares of its common stock for $286 million at an average price of $15.85 per share. The Company expects the weighted average shares outstanding for the second quarter to be approximately 376.7 million shares, a reduction of 6.7 million shares compared to the first quarter.
“We are making meaningful progress on our capital allocation and operating priorities. We continue to see strong leasing momentum and occupancy gains,” stated Todd Meredith, President and CEO. “Looking ahead, we expect this progress to lead to improved dividend coverage and accelerated FFO growth.”
About Healthcare Realty
Healthcare Realty is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty’s portfolio includes nearly 700 properties totaling over 40 million square feet concentrated in 15 growth markets. Additional information regarding the Company can be found at www.healthcarerealty.com.
In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty, including its Annual Report on Form 10-K for the year ended December 31, 2023, under the heading “Risk Factors,” and in its Quarterly Reports filed thereafter and in the Company’s other SEC filings. Forward-looking statements represent the Company’s judgment as of the date of this release. The Company disclaims any obligation to update forward-looking statements.
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