(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
HEALTHCARE REALTY TRUST INCORPORATED | ||||||||
By: | /s/ J. Christopher Douglas | |||||||
J. Christopher Douglas | ||||||||
Executive Vice President - Chief Financial Officer | ||||||||
February 22, 2022 |
![]() | HEALTHCAREREALTY.COM | PAGE 1 OF 7 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 2 OF 7 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 3 OF 7 |
Consolidated Balance Sheets 1 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ASSETS | |||||||||||
DECEMBER 31, 2021 | DECEMBER 31, 2020 | ||||||||||
Real estate properties | |||||||||||
Land | $387,918 | $362,695 | |||||||||
Buildings, improvements and lease intangibles | 4,458,119 | 4,220,297 | |||||||||
Personal property | 11,761 | 11,195 | |||||||||
Investment in financing receivables, net | 186,745 | — | |||||||||
Financing lease right-of-use assets | 31,576 | 19,667 | |||||||||
Construction in progress | 3,974 | — | |||||||||
Land held for development | 24,849 | 27,226 | |||||||||
Total real estate investments | 5,104,942 | 4,641,080 | |||||||||
Less accumulated depreciation and amortization | (1,338,743) | (1,239,224) | |||||||||
Total real estate investments, net | 3,766,199 | 3,401,856 | |||||||||
Cash and cash equivalents | 13,175 | 15,303 | |||||||||
Assets held for sale, net | 57 | 20,646 | |||||||||
Operating lease right-of-use assets | 128,386 | 125,198 | |||||||||
Investments in unconsolidated joint ventures | 161,942 | 73,137 | |||||||||
Other assets, net | 189,160 | 176,120 | |||||||||
Total assets | $4,258,919 | $3,812,260 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
DECEMBER 31, 2021 | DECEMBER 31, 2020 | ||||||||||
Liabilities | |||||||||||
Notes and bonds payable | $1,801,325 | $1,602,769 | |||||||||
Accounts payable and accrued liabilities | 86,108 | 81,174 | |||||||||
Liabilities of properties held for sale | 294 | 1,216 | |||||||||
Operating lease liabilities | 96,138 | 92,273 | |||||||||
Financing lease liabilities | 22,551 | 18,837 | |||||||||
Other liabilities | 67,387 | 67,615 | |||||||||
Total liabilities | 2,073,803 | 1,863,884 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
Preferred stock, $.01 par value; 50,000 shares authorized; none issued and outstanding | — | — | |||||||||
Common stock, $.01 par value; 300,000 shares authorized; 150,457 and 139,487 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 1,505 | 1,395 | |||||||||
Additional paid-in capital | 3,972,917 | 3,635,341 | |||||||||
Accumulated other comprehensive loss | (9,981) | (17,832) | |||||||||
Cumulative net income attributable to common stockholders | 1,266,158 | 1,199,499 | |||||||||
Cumulative dividends | (3,045,483) | (2,870,027) | |||||||||
Total stockholders' equity | 2,185,116 | 1,948,376 | |||||||||
Total liabilities and stockholders' equity | $4,258,919 | $3,812,260 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 4 OF 7 |
Consolidated Statements of Income 1 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
THREE MONTHS ENDED DECEMBER 31, | TWELVE MONTHS ENDED DECEMBER 31, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Revenues | |||||||||||||||||
Rental income | $131,714 | $123,877 | $520,334 | $492,262 | |||||||||||||
Interest from financing receivables, net | 1,766 | — | 4,192 | — | |||||||||||||
Other operating | 2,943 | 2,003 | 10,291 | 7,367 | |||||||||||||
136,423 | 125,880 | 534,817 | 499,629 | ||||||||||||||
Expenses | |||||||||||||||||
Property operating | 53,032 | 50,210 | 212,273 | 196,514 | |||||||||||||
General and administrative | 8,901 | 7,206 | 34,152 | 30,704 | |||||||||||||
Acquisition and pursuit costs | 1,541 | 939 | 3,930 | 2,561 | |||||||||||||
Depreciation and amortization | 51,810 | 48,104 | 202,714 | 190,435 | |||||||||||||
115,284 | 106,459 | 453,069 | 420,214 | ||||||||||||||
Other income (expense) | |||||||||||||||||
Gain(loss) on sales of real estate assets | 14,895 | (34) | 55,940 | 70,361 | |||||||||||||
Interest expense | (13,266) | (13,618) | (53,124) | (56,174) | |||||||||||||
Loss on extinguishment of debt | — | (21,503) | — | (21,503) | |||||||||||||
Impairment of real estate assets | (520) | — | (17,101) | — | |||||||||||||
Equity loss from unconsolidated joint ventures | (391) | (269) | (795) | (463) | |||||||||||||
Interest and other income (expense), net | (250) | 140 | (9) | 559 | |||||||||||||
468 | (35,284) | (15,089) | (7,220) | ||||||||||||||
Net Income (loss) | $21,607 | ($15,863) | $66,659 | $72,195 | |||||||||||||
Basic earnings per common share - Net income (loss) | $0.14 | ($0.12) | $0.45 | $0.52 | |||||||||||||
Diluted earnings per common share - Net income (loss) | $0.14 | ($0.12) | $0.45 | $0.52 | |||||||||||||
Weighted average common shares outstanding - basic | 145,949 | 134,728 | 142,637 | 133,930 | |||||||||||||
Weighted average common shares outstanding - diluted | 146,038 | 134,728 | 142,710 | 134,007 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 5 OF 7 |
Reconciliation of FFO, Normalized FFO and FAD | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED | ||
THREE MONTHS ENDED DECEMBER 31, | TWELVE MONTHS ENDED DECEMBER 31, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net income (loss) | $21,607 | ($15,863) | $66,659 | $72,195 | |||||||||||||
(Gain) loss on sales of real estate assets | (14,895) | 34 | (55,940) | (70,361) | |||||||||||||
Impairment of real estate asset | 520 | — | 17,101 | — | |||||||||||||
Real estate depreciation and amortization | 53,255 | 49,251 | 208,155 | 194,574 | |||||||||||||
Unconsolidated JV depreciation and amortization | 1,816 | 323 | 5,541 | 564 | |||||||||||||
Funds from operations (FFO) | $62,303 | $33,745 | $241,516 | $196,972 | |||||||||||||
Acquisition and pursuit costs 1 | 1,541 | 939 | 3,930 | 2,561 | |||||||||||||
Lease intangible amortization | 192 | (4) | 162 | 690 | |||||||||||||
Non-routine legal costs/forfeited earnest money received 2 | 465 | — | (35) | — | |||||||||||||
Debt financing costs | — | 21,920 | 283 | 21,920 | |||||||||||||
Unconsolidated JV normalizing items | 90 | 16 | 225 | 16 | |||||||||||||
Normalized FFO | $64,591 | $56,616 | $246,081 | $222,159 | |||||||||||||
Non-real estate depreciation and amortization | 497 | 724 | 2,397 | 3,154 | |||||||||||||
Non-cash interest amortization 3 | 671 | 976 | 3,182 | 3,691 | |||||||||||||
Provision for bad debt, net | 70 | (511) | 73 | 207 | |||||||||||||
Straight-line rent income, net | (844) | (645) | (4,303) | (2,245) | |||||||||||||
Stock-based compensation | 2,546 | 2,472 | 10,729 | 9,922 | |||||||||||||
Unconsolidated JV non-cash items | (305) | 4 | (1,357) | 27 | |||||||||||||
Normalized FFO adjusted for non-cash items | 67,226 | 59,636 | 256,802 | 236,915 | |||||||||||||
2nd generation TI | (10,207) | (8,841) | (26,363) | (26,209) | |||||||||||||
Leasing commissions paid | (2,214) | (3,288) | (11,742) | (10,369) | |||||||||||||
Capital additions | (6,043) | (8,931) | (19,582) | (21,758) | |||||||||||||
Maintenance cap ex | (18,464) | (21,060) | (57,687) | (58,336) | |||||||||||||
Funds available for distribution (FAD) | $48,762 | $38,576 | $199,115 | $178,579 | |||||||||||||
FFO per common share - diluted | $0.42 | $0.25 | $1.68 | $1.46 | |||||||||||||
Normalized FFO per common share - diluted | $0.44 | $0.42 | $1.71 | $1.65 | |||||||||||||
FFO weighted average common shares outstanding - diluted 4 | 147,039 | 135,701 | 143,618 | 134,835 |
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 6 OF 7 |
Reconciliation of Non-GAAP Measures | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED | ||
HEALTHCARE REALTY TRUST INCORPORATED | HEALTHCAREREALTY.COM | PAGE 7 OF 7 |
4Q2021 | ||
Supplemental Information | ||
FURNISHED AS OF FEBRUARY 22, 2022 - UNAUDITED | ||
![]() |
FORWARD LOOKING STATEMENTS & RISK FACTORS | ||
Table of Contents | ||
Highlights | |||||
Salient Facts | |||||
Corporate Information | |||||
Balance Sheet | |||||
Statements of Income | |||||
FFO, Normalized FFO, & FAD | |||||
Capital Funding & Commitments | |||||
Debt Metrics | |||||
Debt Covenants & Liquidity | |||||
Acquisition Activity | |||||
Investment Activity | |||||
Portfolio | |||||
Associated Health Systems | |||||
Top Tenants | |||||
MOB Proximity to Hospital | |||||
Lease Maturity, Lease & Building Size | |||||
Historical Occupancy | |||||
Occupancy Reconciliation | |||||
Leasing Statistics | |||||
NOI Performance | |||||
NOI Reconciliations | |||||
28 | EBITDA Reconciliations | ||||
Components of Net Asset Value | |||||
Components of Expected FFO |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 3 |
Highlights | ||
QUARTERLY HIGHLIGHTS | ||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 4 |
ANNUAL HIGHLIGHTS | ||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 5 |
Salient Facts | ||
AS OF DECEMBER 31, 2021 | ||
Properties | ![]() | ||||||||||
258 properties totaling 17.9M SF | |||||||||||
35 markets in 23 states | |||||||||||
14.3M SF managed by Healthcare Realty | |||||||||||
95.7% medical office and outpatient | |||||||||||
64.0% of NOI in Top 10 Markets | |||||||||||
Capitalization | |||||||||||
$6.5B enterprise value as of 2/15/22 | |||||||||||
$4.7B market capitalization as of 2/15/22 | |||||||||||
150.5M shares outstanding as of 12/31/21 | |||||||||||
$0.31 quarterly dividend per share | |||||||||||
BBB/Baa2/BBB+ S&P/Moody's/Fitch | |||||||||||
27.4% net debt to enterprise value at 12/31/21 | |||||||||||
5.4x net debt to adjusted EBITDA at 12/31/21 | |||||||||||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 6 |
Corporate Information | ||
EXECUTIVE OFFICERS | ||
BOARD OF DIRECTORS | ||
CORPORATE HEADQUARTERS | ||
ANALYST COVERAGE | ||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 7 |
Balance Sheet | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ASSETS | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
Real estate properties | ||||||||||||||||||||
Land | $387,918 | $375,342 | $375,374 | $369,202 | $362,695 | |||||||||||||||
Buildings, improvements and lease intangibles | 4,458,119 | 4,383,314 | 4,249,352 | 4,201,251 | 4,220,297 | |||||||||||||||
Personal property | 11,761 | 11,555 | 11,589 | 11,370 | 11,195 | |||||||||||||||
Investment in financing receivables, net 1 | 186,745 | 104,806 | 104,642 | — | — | |||||||||||||||
Financing lease right-of-use assets 1 | 31,576 | 20,760 | 19,450 | 19,559 | 19,667 | |||||||||||||||
Construction in progress | 3,974 | 1,546 | 1,147 | — | — | |||||||||||||||
Land held for development | 24,849 | 27,232 | 27,226 | 27,226 | 27,226 | |||||||||||||||
Total real estate investments | 5,104,942 | 4,924,555 | 4,788,780 | 4,628,608 | 4,641,080 | |||||||||||||||
Less accumulated depreciation and amortization | (1,338,743) | (1,322,577) | (1,285,251) | (1,238,044) | (1,239,224) | |||||||||||||||
Total real estate investments, net | 3,766,199 | 3,601,978 | 3,503,529 | 3,390,564 | 3,401,856 | |||||||||||||||
Cash and cash equivalents | 13,175 | 16,000 | 18,739 | 12,087 | 15,303 | |||||||||||||||
Assets held for sale, net | 57 | 13,603 | 21,065 | 64,578 | 20,646 | |||||||||||||||
Operating lease right-of-use assets | 128,386 | 128,945 | 121,288 | 120,890 | 125,198 | |||||||||||||||
Investments in unconsolidated joint ventures | 161,942 | 122,345 | 117,935 | 83,943 | 73,137 | |||||||||||||||
Other assets | 189,160 | 186,328 | 182,123 | 182,043 | 176,120 | |||||||||||||||
Total assets | $4,258,919 | $4,069,199 | $3,964,679 | $3,854,105 | $3,812,260 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Notes and bonds payable | $1,801,325 | $1,691,433 | $1,614,479 | $1,609,251 | $1,602,769 | |||||||||||||||
Accounts payable and accrued liabilities | 86,108 | 79,381 | 74,927 | 66,407 | 81,174 | |||||||||||||||
Liabilities of properties held for sale | 294 | 766 | 942 | 1,342 | 1,216 | |||||||||||||||
Operating lease liabilities | 96,138 | 95,913 | 92,110 | 91,921 | 92,273 | |||||||||||||||
Financing lease liabilities | 22,551 | 20,460 | 18,648 | 18,722 | 18,837 | |||||||||||||||
Other liabilities | 67,387 | 65,913 | 67,319 | 68,353 | 67,615 | |||||||||||||||
Total liabilities | 2,073,803 | 1,953,866 | 1,868,425 | 1,855,996 | 1,863,884 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders' equity | ||||||||||||||||||||
Preferred stock, $.01 par value; 50,000 shares authorized | — | — | — | — | — | |||||||||||||||
Common stock, $.01 par value; 300,000 shares authorized | 1,505 | 1,475 | 1,455 | 1,417 | 1,395 | |||||||||||||||
Additional paid-in capital | 3,972,917 | 3,882,572 | 3,818,592 | 3,699,867 | 3,635,341 | |||||||||||||||
Accumulated other comprehensive loss | (9,981) | (12,413) | (13,580) | (13,887) | (17,832) | |||||||||||||||
Cumulative net income attributable to common stockholders | 1,266,158 | 1,244,551 | 1,246,617 | 1,223,521 | 1,199,499 | |||||||||||||||
Cumulative dividends | (3,045,483) | (3,000,852) | (2,956,830) | (2,912,809) | (2,870,027) | |||||||||||||||
Total stockholders' equity | 2,185,116 | 2,115,333 | 2,096,254 | 1,998,109 | 1,948,376 | |||||||||||||||
Total liabilities and stockholders' equity | $4,258,919 | $4,069,199 | $3,964,679 | $3,854,105 | $3,812,260 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 8 |
Statements of Income | ||
DOLLARS IN THOUSANDS | ||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Rental income | $131,714 | $131,746 | $128,486 | $128,389 | $123,877 | $123,384 | $122,358 | $122,644 | |||||||||||||||||||||
Interest from financing receivables, net 1 | 1,766 | 1,917 | 510 | — | — | — | — | — | |||||||||||||||||||||
Other operating | 2,943 | 2,969 | 2,427 | 1,950 | 2,003 | 1,868 | 1,332 | 2,163 | |||||||||||||||||||||
136,423 | 136,632 | 131,423 | 130,339 | 125,880 | 125,252 | 123,690 | 124,807 | ||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Property operating | 53,032 | 55,518 | 51,509 | 52,215 | 50,210 | 50,171 | 46,580 | 49,552 | |||||||||||||||||||||
General and administrative | 8,901 | 8,207 | 8,545 | 8,499 | 7,206 | 7,299 | 7,434 | 8,766 | |||||||||||||||||||||
Acquisition and pursuit costs 2 | 1,541 | 974 | 670 | 744 | 939 | 440 | 431 | 750 | |||||||||||||||||||||
Depreciation and amortization | 51,810 | 50,999 | 49,826 | 50,079 | 48,104 | 47,143 | 47,691 | 47,497 | |||||||||||||||||||||
115,284 | 115,698 | 110,550 | 111,537 | 106,459 | 105,053 | 102,136 | 106,565 | ||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Gain (loss) on sales of real estate properties | 14,895 | 1,186 | 20,970 | 18,890 | (34) | 2,177 | 68,267 | (49) | |||||||||||||||||||||
Interest expense | (13,266) | (13,334) | (13,261) | (13,262) | (13,618) | (14,154) | (14,442) | (13,960) | |||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | (21,503) | — | — | — | |||||||||||||||||||||
Impairment of real estate assets | (520) | (10,669) | (5,078) | (834) | — | — | — | — | |||||||||||||||||||||
Equity loss from unconsolidated joint ventures | (391) | (183) | (146) | (74) | (269) | (66) | (116) | (11) | |||||||||||||||||||||
Interest and other income (expense), net | (250) | — | (262) | 500 | 140 | 74 | 250 | 93 | |||||||||||||||||||||
468 | (23,000) | 2,223 | 5,220 | (35,284) | (11,969) | 53,959 | (13,927) | ||||||||||||||||||||||
Net income (loss) | $21,607 | ($2,066) | $23,096 | $24,022 | ($15,863) | $8,230 | $75,513 | $4,315 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 9 |
FFO, Normalized FFO, & FAD 1, 2 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||||||||
Net income (loss) | $21,607 | $(2,066) | $23,096 | $24,022 | $(15,863) | $8,230 | $75,513 | $4,315 | |||||||||||||||||||||
(Gain) loss on sales of real estate assets | (14,895) | (1,186) | (20,970) | (18,890) | 34 | (2,177) | (68,267) | 49 | |||||||||||||||||||||
Impairments of real estate assets | 520 | 10,669 | 5,078 | 834 | — | — | — | — | |||||||||||||||||||||
Real estate depreciation and amortization | 53,255 | 52,390 | 51,199 | 51,311 | 49,251 | 48,215 | 48,577 | 48,531 | |||||||||||||||||||||
Unconsolidated JV depreciation and amortization | 1,816 | 1,558 | 1,354 | 813 | 323 | 80 | 80 | 80 | |||||||||||||||||||||
FFO | $62,303 | $61,365 | $59,757 | $58,090 | $33,745 | $54,348 | $55,903 | $52,975 | |||||||||||||||||||||
Acquisition and pursuit costs 3 | 1,541 | 974 | 670 | 744 | 939 | 440 | 431 | 750 | |||||||||||||||||||||
Lease intangible amortization | 192 | 48 | (6) | (72) | (4) | (35) | (16) | 745 | |||||||||||||||||||||
Non-routine legal costs/forfeited earnest money received 4 | 465 | — | — | (500) | — | — | — | — | |||||||||||||||||||||
Debt financing costs | — | — | 283 | — | 21,920 | — | — | — | |||||||||||||||||||||
Unconsolidated JV normalizing items 5 | 90 | 54 | 55 | 27 | 16 | — | — | — | |||||||||||||||||||||
Normalized FFO | $64,591 | $62,441 | $60,759 | $58,289 | $56,616 | $54,753 | $56,318 | $54,470 | |||||||||||||||||||||
Non-real estate depreciation and amortization | 497 | 586 | 641 | 673 | 724 | 785 | 822 | 823 | |||||||||||||||||||||
Non-cash interest amortization 6 | 671 | 720 | 897 | 894 | 976 | 934 | 1,035 | 746 | |||||||||||||||||||||
Provision for bad debt, net | 70 | 25 | 57 | (79) | (511) | (144) | 945 | (83) | |||||||||||||||||||||
Straight-line rent income, net | (844) | (1,171) | (1,194) | (1,094) | (645) | (543) | (390) | (668) | |||||||||||||||||||||
Stock-based compensation | 2,546 | 2,538 | 2,627 | 3,019 | 2,472 | 2,445 | 2,405 | 2,599 | |||||||||||||||||||||
Unconsolidated JV non-cash items 7 | (305) | (341) | (354) | (357) | 4 | 8 | 8 | 8 | |||||||||||||||||||||
Normalized FFO adjusted for non-cash items | 67,226 | 64,798 | 63,433 | 61,345 | 59,636 | 58,238 | 61,143 | 57,895 | |||||||||||||||||||||
2nd generation TI | (10,207) | (6,219) | (4,748) | (5,189) | (8,841) | (5,323) | (6,005) | (6,040) | |||||||||||||||||||||
Leasing commissions paid | (2,214) | (4,531) | (3,804) | (1,193) | (3,288) | (1,999) | (2,258) | (2,824) | |||||||||||||||||||||
Capital expenditures | (6,043) | (5,443) | (6,077) | (2,019) | (8,931) | (4,580) | (4,777) | (3,470) | |||||||||||||||||||||
Total maintenance capex | (18,464) | (16,193) | (14,629) | (8,401) | (21,060) | (11,902) | (13,040) | (12,334) | |||||||||||||||||||||
FAD | $48,762 | $48,605 | $48,804 | $52,944 | $38,576 | $46,336 | $48,103 | $45,561 | |||||||||||||||||||||
Dividends paid | $44,631 | $44,022 | $44,021 | $42,782 | $40,816 | $40,815 | $40,510 | $40,416 | |||||||||||||||||||||
TTM dividend payout (dividends paid/FAD) | 88.1 | % | 90.8 | % | 90.2 | % | 88.7 | % | 91.0 | % | 92.2 | % | 92.9 | % | 95.4 | % | |||||||||||||
FFO per common share - diluted | $0.42 | $0.42 | $0.42 | $0.42 | $0.25 | $0.40 | $0.42 | $0.40 | |||||||||||||||||||||
Normalized FFO per common share - diluted | $0.44 | $0.43 | $0.43 | $0.42 | $0.42 | $0.41 | $0.42 | $0.41 | |||||||||||||||||||||
TTM Normalized FFO per common share - diluted | $1.71 | $1.69 | $1.67 | $1.66 | $1.65 | $1.64 | $1.64 | $1.62 | |||||||||||||||||||||
FFO wtd avg common shares outstanding - diluted 8 | 147,039 | 144,807 | 142,914 | 139,714 | 135,701 | 135,159 | 134,464 | 133,980 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 10 |
Capital Funding & Commitments | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
ACQUISITION AND RE/DEVELOPMENT FUNDING | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
Acquisitions 1 | $258,072 | $160,073 | $178,508 | $69,403 | $273,757 | |||||||||||||||
Re/development | 11,767 | 6,594 | 5,719 | 9,336 | 9,204 | |||||||||||||||
1st gen. TI & acquisition capex 2 | 7,596 | 4,675 | 5,975 | 3,808 | 6,327 | |||||||||||||||
MAINTENANCE CAPITAL EXPENDITURES FUNDING | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
2nd generation TI | $10,207 | $6,219 | $4,748 | $5,189 | $8,841 | |||||||||||||||
Leasing commissions paid | 2,214 | 4,531 | 3,804 | 1,193 | 3,288 | |||||||||||||||
Capital expenditures | 6,043 | 5,443 | 6,077 | 2,019 | 8,931 | |||||||||||||||
$18,464 | $16,193 | $14,629 | $8,401 | $21,060 | ||||||||||||||||
% of Cash NOI | ||||||||||||||||||||
2nd generation TI | 12.1 | % | 7.6 | % | 5.9 | % | 6.7 | % | 11.8 | % | ||||||||||
Leasing commissions paid | 2.6 | % | 5.6 | % | 4.8 | % | 1.5 | % | 4.4 | % | ||||||||||
Capital expenditures | 7.2 | % | 6.7 | % | 7.6 | % | 2.6 | % | 11.9 | % | ||||||||||
22.0 | % | 19.9 | % | 18.3 | % | 10.8 | % | 28.1 | % | |||||||||||
LEASING COMMITMENTS 3 | ||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | ||||||||||||||||
Renewals | ||||||||||||||||||||
Square feet | 332,819 | 360,302 | 285,412 | 616,129 | 421,652 | |||||||||||||||
2nd generation TI/square foot/lease year | $1.46 | $1.75 | $1.87 | $1.27 | $1.48 | |||||||||||||||
Leasing commissions/square foot/lease year | $1.23 | $0.93 | $1.03 | $0.79 | $0.85 | |||||||||||||||
Renewal commitments as a % of annual net rent | 11.4 | % | 11.4 | % | 13.3 | % | 9.1 | % | 9.0 | % | ||||||||||
WALT (in months) 4 | 46.4 | 45.0 | 53.1 | 47.3 | 53.3 | |||||||||||||||
New leases | ||||||||||||||||||||
Square feet | 109,592 | 97,619 | 106,950 | 47,530 | 82,538 | |||||||||||||||
2nd generation TI/square foot/lease year | $5.44 | $4.74 | $5.96 | $5.38 | $6.28 | |||||||||||||||
Leasing commissions/square foot/lease year | $1.84 | $1.62 | $1.21 | $1.72 | $1.48 | |||||||||||||||
New lease commitments as a % of annual net rent | 34.2 | % | 30.7 | % | 33.3 | % | 36.9 | % | 35.9 | % | ||||||||||
WALT (in months) 4 | 77.2 | 80.0 | 79.6 | 70.3 | 77.3 | |||||||||||||||
All | ||||||||||||||||||||
Square feet | 442,411 | 457,921 | 392,362 | 663,659 | 504,190 | |||||||||||||||
Leasing commitments as a % of annual net rent | 18.8 | % | 16.8 | % | 20.4 | % | 11.6 | % | 13.9 | % | ||||||||||
WALT (in months) 4 | 54.0 | 52.5 | 60.3 | 48.9 | 57.3 | |||||||||||||||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 11 |
Debt Metrics | ||
DOLLARS IN THOUSANDS | ||
SUMMARY OF INDEBTEDNESS AS OF DECEMBER 31, 2021 | ||||||||||||||||||||
PRINCIPAL BALANCE | BALANCE 1 | INTEREST EXPENSE | MONTHS TO MATURITY | CONTRACTUAL RATE | EFFECTIVE RATE | |||||||||||||||
Senior notes due May 2025 2 | $250,000 | $249,040 | $2,469 | 40 | 3.88 | % | 4.08 | % | ||||||||||||
Senior notes due January 2028 | 300,000 | 296,612 | 2,779 | 72 | 3.63 | % | 3.84 | % | ||||||||||||
Senior notes due March 2030 3 | 300,000 | 296,813 | 1,930 | 99 | 2.40 | % | 2.71 | % | ||||||||||||
Senior notes due March 2031 | 300,000 | 295,374 | 1,590 | 111 | 2.05 | % | 2.24 | % | ||||||||||||
Total senior notes outstanding | $1,150,000 | $1,137,839 | $8,768 | 82 | 2.95 | % | 3.18 | % | ||||||||||||
$700 million unsecured credit facility due May 2023 | 210,000 | 210,000 | 319 | 17 | LIBOR + 0.90% | 1.00 | % | |||||||||||||
$200 million unsecured term loan facility due May 2024 4 | 200,000 | 199,460 | 993 | 29 | LIBOR + 1.00% | 1.95 | % | |||||||||||||
$150 million unsecured term loan facility due June 2026 5 | 150,000 | 149,376 | 946 | 53 | LIBOR + 0.95% | 2.48 | % | |||||||||||||
Mortgage notes payable, net | 103,664 | 104,650 | 874 | 41 | 4.26 | % | 4.01 | % | ||||||||||||
Total outstanding notes and bonds payable | $1,813,664 | $1,801,325 | $11,900 | 64 | 2.65 | % | 2.78 | % | ||||||||||||
Interest cost capitalization | (34) | |||||||||||||||||||
Unsecured credit facility fee and deferred financing costs | 642 | |||||||||||||||||||
Financing lease right-of-use assets | 758 | |||||||||||||||||||
Total quarterly consolidated interest expense | $13,266 |
DEBT MATURITIES SCHEDULE AS OF DECEMBER 31, 2021 | |||||||||||||||||||||||||||||
PRINCIPAL PAYMENTS | WEIGHTED AVERAGE RATE | ||||||||||||||||||||||||||||
BANK LOANS | SENIOR NOTES | MORTGAGE NOTES | TOTAL | BANK LOANS | SENIOR NOTES | MORTGAGE NOTES | TOTAL | ||||||||||||||||||||||
2022 | $3,582 | $3,582 | — | % | — | % | 4.59 | % | 4.59 | % | |||||||||||||||||||
2023 | $210,000 | 19,910 | 229,910 | 1.00 | % | — | % | 3.95 | % | 1.26 | % | ||||||||||||||||||
2024 | 200,000 | 26,448 | 226,448 | 1.95 | % | — | % | 4.48 | % | 2.25 | % | ||||||||||||||||||
2025 | $250,000 | 17,415 | 267,415 | — | % | 3.88 | % | 4.35 | % | 3.91 | % | ||||||||||||||||||
2026 | 150,000 | 24,879 | 174,879 | 2.48 | % | — | % | 3.93 | % | 2.68 | % | ||||||||||||||||||
2027 | 11,430 | 11,430 | — | % | — | % | 4.75 | % | 4.75 | % | |||||||||||||||||||
2028 | 300,000 | 300,000 | — | % | 3.63 | % | — | % | 3.63 | % | |||||||||||||||||||
2029 | — | — | % | — | % | — | % | — | % | ||||||||||||||||||||
2030 | 300,000 | 300,000 | — | % | 2.40 | % | — | % | 2.40 | % | |||||||||||||||||||
Thereafter | 300,000 | 300,000 | — | % | 2.05 | % | — | % | 2.05 | % | |||||||||||||||||||
Total | $560,000 | $1,150,000 | $103,664 | $1,813,664 | 1.74 | % | 2.95 | % | 4.26 | % | 2.65 | % | |||||||||||||||||
Fixed rate debt balance | $175,000 | $1,150,000 | $103,664 | $1,428,664 | |||||||||||||||||||||||||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 12 |
Debt Covenants & Liquidity | ||
DOLLARS IN THOUSANDS | ||
SELECTED FINANCIAL DEBT COVENANTS YEAR ENDED DECEMBER 31, 2021 1 | |||||||||||
CALCULATION | REQUIREMENT | PER DEBT COVENANTS | |||||||||
Revolving credit facility and term loan 2 | |||||||||||
Leverage ratio | Total debt/total capital | Not greater than 60% | 34.2 | % | |||||||
Secured leverage ratio | Total secured debt/total capital | Not greater than 30% | 1.9 | % | |||||||
Unencumbered leverage ratio | Unsecured debt/unsecured real estate | Not greater than 60% | 37.3 | % | |||||||
Fixed charge coverage ratio | EBITDA/fixed charges | Not less than 1.50x | 5.2x | ||||||||
Unsecured coverage ratio | Unsecured EBITDA/unsecured interest | Not less than 1.75x | 5.7x | ||||||||
Construction and development | CIP/total assets | Not greater than 15% | 0.1 | % | |||||||
Unconsolidated joint ventures | Unconsolidated JVs/total assets | Not greater than 15% | 3.9 | % | |||||||
Asset investments | Unimproved land, JVs & mortgages/total assets | Not greater than 20% | 9.0 | % | |||||||
Senior Notes due 2030 and 2031 3 | |||||||||||
Incurrence of total debt | Total debt/total assets | Not greater than 60% | 34.0 | % | |||||||
Incurrence of debt secured by any lien | Secured debt/total assets | Not greater than 40% | 1.9 | % | |||||||
Maintenance of total unsecured assets | Unencumbered assets/unsecured debt | Not less than 150% | 283.8 | % | |||||||
Debt service coverage | EBITDA/interest expense | Not less than 1.5x | 5.9x | ||||||||
Other Senior Notes 4 | |||||||||||
Incurrence of total debt | Total debt/total assets | Not greater than 60% | 35.3 | % | |||||||
Incurrence of debt secured by any lien | Secured debt/total assets | Not greater than 40% | 1.9 | % | |||||||
Maintenance of total unsecured assets | Unencumbered assets/unsecured debt | Not less than 150% | 271.9 | % | |||||||
Debt service coverage | EBITDA/interest expense | Not less than 1.5x | 5.8x | ||||||||
Other | |||||||||||
Net debt to adjusted EBITDA 5 | Net debt (debt less cash)/adjusted EBITDA | Not required | 5.4x | ||||||||
Net debt to enterprise value 6 | Net Debt/enterprise value | Not required | 27.4 | % |
LIQUIDITY SOURCES | |||||
Forward equity yet to be settled, as of February 15, 2022 | $23,079 | ||||
Cash | 13,175 | ||||
Unsecured credit facility availability | 490,000 | ||||
Consolidated unencumbered assets (gross) 7 | 4,823,754 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 13 |
Acquisition Activity | ||
DOLLARS IN THOUSANDS | ||
ACQUISITION ACTIVITY | |||||||||||||||||
COUNT | SQUARE FEET | LEASED % | PURCHASE PRICE 1 | WA OWNERSHIP % | |||||||||||||
Q1 2021 total | 7 | 274,592 | 81 | % | 76,590 | 91 | % | ||||||||||
Q2 2021 total 2 | 8 | 467,432 | 94 | % | 216,875 | 82 | % | ||||||||||
Q3 2021 total | 10 | 532,160 | 84 | % | 164,639 | 97 | % | ||||||||||
Q4 2021 total 2 | 19 | 780,210 | 92 | % | 298,194 | 87 | % | ||||||||||
2021 total | 44 | 2,054,394 | 89 | % | $756,298 | 88 | % | ||||||||||
JV Contribution | (90,244) | ||||||||||||||||
2021 total, net | $666,054 | ||||||||||||||||
Average cap rate for 2021 total 4 | 5.3 | % |
Q4 2021 ACQUISITION DETAIL | |||||||||||||||||||||||
MARKET | MILES TO CAMPUS | ASSOCIATED HEALTH SYSTEM/TENANCY | CLOSING | SQUARE FEET | LEASED % | PURCHASE PRICE 1 | % OWNERSHIP | ||||||||||||||||
Denver, CO | 3.10 | None | 10/21/2021 | 57,257 | 87 | % | 23,000 | 50 | % | ||||||||||||||
Denver, CO | 1.80 | None | 11/15/2021 | 18,599 | 93 | % | 7,700 | 100 | % | ||||||||||||||
Denver, CO | 1.60 | Centura Health (CommonSpirit) | 11/18/2021 | 30,185 | 100 | % | 22,400 | 100 | % | ||||||||||||||
Columbus, OH 2 | 0.21 | Trinity Health | 12/1/2021 | 71,930 | 96 | % | 16,275 | 100 | % | ||||||||||||||
Nashville, TN | 0.04 | HCA Healthcare | 12/2/2021 | 34,908 | 91 | % | 11,300 | 100 | % | ||||||||||||||
San Antonio, TX (3 bldgs) | 0.12 | Tenet Healthcare | 12/10/2021 | 117,597 | 92 | % | 42,300 | 50 | % | ||||||||||||||
Colorado Springs, CO | 0.25 | Centura Health (CommonSpirit) | 12/20/2021 | 44,166 | 87 | % | 10,575 | 100 | % | ||||||||||||||
Columbus, OH (2 bldgs) | 0.25 | Trinity Health | 12/28/2021 | 28,962 | 100 | % | 9,525 | 100 | % | ||||||||||||||
Los Angeles, CA | 0.04 | HCA Healthcare | 12/28/2021 | 56,762 | 87 | % | 20,500 | 100 | % | ||||||||||||||
San Antonio, TX | 0.12 | Tenet Healthcare | 12/29/2021 | 22,381 | 87 | % | 6,094 | 50 | % | ||||||||||||||
San Antonio, TX | 2.00 | None | 12/29/2021 | 30,542 | 92 | % | 8,850 | 50 | % | ||||||||||||||
Nashville, TN | 0.06 | Ascension Health | 12/29/2021 | 85,590 | 93 | % | 19,775 | 100 | % | ||||||||||||||
Austin, TX | 0.07 | HCA Healthcare | 12/29/2021 | 62,548 | 94 | % | 20,500 | 100 | % | ||||||||||||||
Atlanta, GA | 0.05 | Wellstar Health System | 12/30/2021 | 11,840 | 100 | % | 4,900 | 100 | % | ||||||||||||||
Nashville, TN 3 | 1.40 | HCA Healthcare | 12/30/2021 | 74,489 | 94 | % | 54,000 | 100 | % | ||||||||||||||
Nashville, TN 3 | 1.40 | HCA Healthcare | 12/30/2021 | 32,454 | 94 | % | 20,500 | 100 | % | ||||||||||||||
Q4 2021 total | 780,210 | 92 | % | $298,194 | 87 | % | |||||||||||||||||
Subsequent activity | |||||||||||||||||||||||
Dallas, TX | 0.18 | Texas Health Resources | 2/11/2022 | 18,000 | 100 | % | 8,175 | 100 | % | ||||||||||||||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 14 |
Investment Activity | ||
DOLLARS IN THOUSANDS | ||
UNDER RE/DEVELOPMENT | |||||||||||||||||||||||||||||||||||
EXPECTED NOI TIMING | |||||||||||||||||||||||||||||||||||
MARKET | ASSOCIATED HEALTH SYSTEM | MILES TO CAMPUS | STATUS 1 | SQUARE FEET | BUDGET | REMAINING FUNDINGS | Q4 2021 NOI | EXPECTED QTR NOI AT CURRENT LEASED % | CURRENT LEASED % | INITIAL LEASE(S) | CURRENT LEASED % | ||||||||||||||||||||||||
Memphis 2 | Baptist Memorial | 0.26 | TI | 110,883 | $34,100 | $2,398 | $375 | $640 | 99 | % | 1Q 2021 | 2Q 2022 | |||||||||||||||||||||||
Dallas 3 | Baylor Scott & White | 0.00 | UC | 110,860 | 16,900 | 9,440 | 55 | 315 | 76 | % | 1Q 2022 | 2Q 2023 | |||||||||||||||||||||||
Tacoma 4 | MultiCare Health | 0.10 | UC | 23,000 | 12,400 | 8,253 | — | 190 | 100 | % | 2Q 2022 | 4Q 2022 | |||||||||||||||||||||||
Nashville 5 | Ascension Health | 0.00 | PC | 106,194 | 44,000 | 42,154 | — | 185 | 50 | % | 3Q 2023 | 4Q 2023 | |||||||||||||||||||||||
Total | 350,937 | $107,400 | $62,245 | $430 | $1,330 | 77 | % | ||||||||||||||||||||||||||||
Projected average stabilized yield | 7.0 | % | |||||||||||||||||||||||||||||||||
DISPOSITION ACTIVITY | |||||||||||||||||||||||
LOCATION | COUNT | MILES TO CAMPUS | ASSOCIATED HEALTH SYSTEM | CLOSING | SQUARE FEET | LEASED % | SALES PRICE | ||||||||||||||||
Los Angeles, CA | 2 | 0.00 | Valley Presbyterian Hospital | 3/11/2021 | 73,906 | 84 | % | $26,000 | |||||||||||||||
Atlanta, GA | 1 | 13.00 | Piedmont Healthcare | 4/12/2021 | 19,732 | 100 | % | 8,050 | |||||||||||||||
Richmond, VA | 1 | 0.00 | Bon Secours Health System | 5/18/2021 | 142,856 | 63 | % | 52,000 | |||||||||||||||
Gadsden, AL | 3 | 0.00 | Community Health Systems | 5/19/2021 | 120,192 | 58 | % | 5,500 | |||||||||||||||
Dallas, TX | 4 | 0.00 | US Dept of Veteran Affairs | 7/9/2021 | 190,160 | 44 | % | 23,000 | |||||||||||||||
Chicago, IL | 1 | 0.14 | Advocate Health Care | 10/28/2021 | 95,436 | 54 | % | 13,300 | |||||||||||||||
Des Moines, IA | 3 | 0.18 | Common Spirit Health | 12/8/2021 | 132,617 | 100 | % | 47,000 | |||||||||||||||
Aberdeen, SD | 1 | 0.00 | Sanford Health | 12/22/2021 | 58,285 | 100 | % | 12,750 | |||||||||||||||
Dallas, TX | 1 | 2.12 | None | 12/23/2021 | 13,818 | 91 | % | 800 | |||||||||||||||
2021 total | 17 | 847,002 | 69 | % | $188,400 | ||||||||||||||||||
Average cap rate for 2021 total 6 | 4.9 | % |
HISTORICAL INVESTMENT ACTIVITY | ||||||||||||||||||||
ACQUISITIONS 7 | RE/DEVELOPMENT FUNDING | TOTAL INVESTMENTS | DISPOSITIONS | NET INVESTMENTS | ||||||||||||||||
2017 | $327,167 | $32,305 | $359,472 | $122,700 | $236,772 | |||||||||||||||
2018 | 111,450 | 35,567 | 147,017 | 98,691 | 48,326 | |||||||||||||||
2019 | 381,314 | 28,584 | 409,898 | 54,860 | 355,038 | |||||||||||||||
2020 | 546,853 | 26,493 | 573,346 | 249,443 | 323,903 | |||||||||||||||
2021 | 756,298 | 33,415 | 789,713 | 188,400 | 601,313 | |||||||||||||||
Average (2017-2021) | $424,616 | $31,273 | $455,889 | $142,819 | $313,070 | |||||||||||||||
% of Total | 93.1 | % | 6.9 | % | 100.0 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 15 |
Portfolio 1, 2 | ||
DOLLARS IN THOUSANDS | ||
MARKETS | |||||||||||||||||||||||||||||||||||||||||
SQUARE FEET | |||||||||||||||||||||||||||||||||||||||||
MOB 95.7% | NON-MOB 4.3% | ||||||||||||||||||||||||||||||||||||||||
MARKET | MSA RANK | INVESTMENT 1 | COUNT | CONSOLIDATED | JOINT VENTURE | INPATIENT/SURGICAL | OFFICE | TOTAL | % OF NOI | CUMULATIVE % OF NOI | |||||||||||||||||||||||||||||||
Seattle, WA | 15 | 667,983 | 27 | 1,545,539 | 1,545,539 | 13.6 | % | 13.6 | % | ||||||||||||||||||||||||||||||||
Dallas, TX | 4 | 531,248 | 22 | 1,990,929 | 156,245 | 145,365 | 2,292,539 | 11.9 | % | 25.5 | % | ||||||||||||||||||||||||||||||
Los Angeles, CA | 2 | 433,335 | 20 | 853,676 | 315,314 | 63,000 | 1,231,990 | 7.9 | % | 33.4 | % | ||||||||||||||||||||||||||||||
Charlotte, NC | 22 | 183,301 | 16 | 860,735 | 860,735 | 5.7 | % | 39.1 | % | ||||||||||||||||||||||||||||||||
Denver, CO | 19 | 330,607 | 20 | 1,086,305 | 116,616 | 93,869 | 1,296,790 | 5.3 | % | 44.4 | % | ||||||||||||||||||||||||||||||
Atlanta, GA | 9 | 318,236 | 15 | 818,597 | 818,597 | 5.1 | % | 49.5 | % | ||||||||||||||||||||||||||||||||
Houston, TX | 5 | 178,894 | 11 | 649,388 | 57,170 | 706,558 | 3.8 | % | 53.3 | % | |||||||||||||||||||||||||||||||
Washington, DC | 6 | 163,275 | 7 | 533,832 | 533,832 | 3.7 | % | 57.0 | % | ||||||||||||||||||||||||||||||||
Nashville, TN | 36 | 325,808 | 10 | 951,723 | 108,691 | 1,060,414 | 3.7 | % | 60.7 | % | |||||||||||||||||||||||||||||||
Memphis, TN | 43 | 175,074 | 10 | 802,221 | 802,221 | 3.3 | % | 64.0 | % | ||||||||||||||||||||||||||||||||
Indianapolis, IN | 33 | 121,371 | 4 | 526,194 | 526,194 | 3.2 | % | 67.2 | % | ||||||||||||||||||||||||||||||||
Honolulu, HI | 56 | 145,650 | 3 | 298,427 | 298,427 | 2.9 | % | 70.1 | % | ||||||||||||||||||||||||||||||||
Austin, TX | 29 | 130,255 | 6 | 437,434 | 437,434 | 2.6 | % | 72.7 | % | ||||||||||||||||||||||||||||||||
San Francisco, CA | 12 | 123,030 | 3 | 286,270 | 286,270 | 2.5 | % | 75.2 | % | ||||||||||||||||||||||||||||||||
Richmond, VA | 44 | 110,184 | 6 | 405,945 | 405,945 | 2.4 | % | 77.6 | % | ||||||||||||||||||||||||||||||||
Des Moines, IA | 82 | 99,561 | 4 | 247,338 | 152,655 | 399,993 | 2.2 | % | 79.8 | % | |||||||||||||||||||||||||||||||
San Diego, CA | 17 | 179,099 | 4 | 274,095 | 274,095 | 2.2 | % | 82.0 | % | ||||||||||||||||||||||||||||||||
Co Springs, CO | 78 | 127,226 | 9 | 425,846 | 51,466 | 477,312 | 2.1 | % | 84.1 | % | |||||||||||||||||||||||||||||||
San Antonio, TX | 24 | 133,666 | 12 | 473,673 | 215,520 | 689,193 | 1.9 | % | 86.0 | % | |||||||||||||||||||||||||||||||
Chicago, IL | 3 | 60,927 | 2 | 257,364 | 257,364 | 1.5 | % | 87.5 | % | ||||||||||||||||||||||||||||||||
Other (15 markets) | 674,262 | 47 | 2,517,958 | 140,733 | 2,658,691 | 12.5 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
Total | $5,212,992 | 258 | 16,243,489 | 839,649 | 219,245 | 557,750 | 17,860,133 | 100.0 | % | ||||||||||||||||||||||||||||||||
Number of properties | 235 | 16 | 2 | 5 | 258 | ||||||||||||||||||||||||||||||||||||
% of square feet | 91.0 | % | 4.7 | % | 1.2 | % | 3.1 | % | 100.0 | % | |||||||||||||||||||||||||||||||
% multi-tenant | 96.1 | % | 100.0 | % | — | % | 100.0 | % | 95.2 | % | |||||||||||||||||||||||||||||||
Investment 1 | $4,791,506 | $165,005 | $111,178 | $145,303 | $5,212,992 | ||||||||||||||||||||||||||||||||||||
Quarterly cash NOI 1 | $77,554 | $1,331 | $3,122 | $1,230 | $83,237 | ||||||||||||||||||||||||||||||||||||
% of cash NOI | 93.2 | % | 1.6 | % | 3.7 | % | 1.5 | % | 100.0 | % |
BY BUILDING TYPE | ||||||||||||||
CONSOLIDATED | ||||||||||||||
MULTI-TENANT | SINGLE-TENANT | JOINT VENTURE | TOTAL | |||||||||||
Number of properties | 230 | 12 | 16 | 258 | ||||||||||
Square feet | 16,163,931 | 856,553 | 839,649 | 17,860,133 | ||||||||||
% of square feet | 90.5 | % | 4.8 | % | 4.7 | % | 100.0 | % | ||||||
Investment 1 | $4,701,997 | $345,990 | $165,005 | $5,212,992 | ||||||||||
Quarterly cash NOI 1 | $74,657 | $7,249 | $1,331 | $83,237 | ||||||||||
% of cash NOI | 89.7 | % | 8.7 | % | 1.6 | % | 100.0 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 16 |
Associated Health Systems 1,2 | ||
MOB PORTFOLIO (BY SQUARE FEET) | ||||||||||||||||||||||||||
SYSTEM RANK 3 | CREDIT RATING | ON/ADJACENT | OFF CAMPUS | % OF NOI | ||||||||||||||||||||||
HEALTH SYSTEM | ON | ADJACENT 4 | ANCHORED 5 | <= 2 MILES 6 | TOTAL | |||||||||||||||||||||
Baylor Scott & White Health | 21 | AA-/Aa3 | 1,765,805 | 280,941 | 163,188 | — | 2,209,934 | 13.6 | % | |||||||||||||||||
CommonSpirit Health | 4 | A-/Baa1 | 876,708 | 222,859 | 149,627 | 205,840 | 1,455,034 | 8.1 | % | |||||||||||||||||
Ascension Health | 3 | AA+/Aa2 | 999,704 | 280,207 | — | — | 1,279,911 | 5.8 | % | |||||||||||||||||
Atrium Health | 16 | AA-/Aa3 | 393,815 | 98,066 | 313,513 | — | 805,394 | 5.3 | % | |||||||||||||||||
UW Medicine (Seattle) | 91 | AA+/Aaa | 345,567 | 102,540 | 44,166 | 125,543 | 617,816 | 5.1 | % | |||||||||||||||||
Tenet Healthcare | 6 | B/B2 | 570,264 | 207,768 | — | 135,270 | 913,302 | 4.3 | % | |||||||||||||||||
Wellstar Health System | 75 | A/A2 | 492,221 | 153,009 | — | — | 645,230 | 3.8 | % | |||||||||||||||||
Providence St. Joseph Health | 5 | AA-/Aa3 | 176,854 | 153,433 | — | 31,601 | 361,888 | 3.3 | % | |||||||||||||||||
Indiana University Health | 26 | AA/Aa2 | 423,628 | 102,566 | — | — | 526,194 | 3.2 | % | |||||||||||||||||
Hawaii Pacific Health | 181 | --/A1 | 173,502 | — | — | 124,925 | 298,427 | 2.9 | % | |||||||||||||||||
UCHealth | 46 | AA/Aa3 | 150,291 | 298,093 | 33,850 | 18,599 | 500,833 | 2.8 | % | |||||||||||||||||
Overlake Health System | 291 | A/A2 | 191,051 | 39,659 | — | — | 230,710 | 2.7 | % | |||||||||||||||||
Baptist Memorial Health Care | 89 | BBB+/-- | 464,498 | — | 150,228 | — | 614,726 | 2.7 | % | |||||||||||||||||
Bon Secours Health System | 22 | A+/A1 | 405,945 | — | — | — | 405,945 | 2.4 | % | |||||||||||||||||
HCA Healthcare | 1 | BB+/Baa3 | 151,340 | 321,235 | 78,305 | 166,302 | 717,182 | 2.4 | % | |||||||||||||||||
Medstar Health | 45 | A/A2 | 241,739 | — | — | — | 241,739 | 1.9 | % | |||||||||||||||||
MultiCare Health System | 82 | AA-/Aa3 | 154,452 | 84,348 | — | — | 238,800 | 1.7 | % | |||||||||||||||||
Inova Health System | 70 | AA+/Aa2 | 262,121 | — | — | — | 262,121 | 1.7 | % | |||||||||||||||||
Trinity Health | 7 | AA-/Aa3 | 267,952 | 166,067 | — | 8,156 | 442,175 | 1.7 | % | |||||||||||||||||
Memorial Hermann | 39 | A+/A1 | — | 246,325 | — | — | 246,325 | 1.6 | % | |||||||||||||||||
Huntington Memorial Hospital | 273 | A-/-- | — | 165,419 | — | — | 165,419 | 1.6 | % | |||||||||||||||||
Other (28 credit rated systems) | 1,769,419 | 1,367,237 | 197,125 | 280,318 | 3,614,099 | 18.7 | % | |||||||||||||||||||
Subtotal - credit rated7 | 10,276,876 | 4,289,772 | 1,130,002 | 1,096,554 | 16,793,204 | 97.3 | % | |||||||||||||||||||
Other non-credit rated 8 | 28,649 | — | — | 30,542 | 59,191 | — | % | |||||||||||||||||||
Other non-associated 9 | — | — | — | 230,743 | 230,743 | 2.7 | % | |||||||||||||||||||
Total | 10,305,525 | 4,289,772 | 1,130,002 | 1,357,839 | 17,083,138 | 100.0 | % | |||||||||||||||||||
% of total | 60.4 | % | 25.1 | % | 6.6 | % | 7.9 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 17 |
Top Tenants 1 | ||
TENANT | SYSTEM RANK 2 | CREDIT RATING | # OF ASSOCIATED PROPERTIES | # OF LEASES | LEASED SQUARE FEET | % OF TOTAL LEASED | % OF TTM REVENUE | ||||||||||||||||||||||
Baylor Scott & White Health | 21 | AA-/Aa3 | 23 | 144 | 1,041,613 | 6.7 | % | 7.7 | % | ||||||||||||||||||||
Atrium Health | 16 | AA-/Aa3 | 17 | 72 | 654,174 | 4.2 | % | 3.9 | % | ||||||||||||||||||||
CommonSpirit Health | 4 | A-/Baa1 | 19 | 83 | 532,794 | 3.4 | % | 3.5 | % | ||||||||||||||||||||
UW Medicine (Seattle) | 91 | AA+/Aaa | 9 | 27 | 297,049 | 1.9 | % | 3.1 | % | ||||||||||||||||||||
Indiana University Health | 26 | AA/Aa2 | 4 | 69 | 447,885 | 2.9 | % | 2.6 | % | ||||||||||||||||||||
Ascension Health | 3 | AA+/Aa2 | 11 | 62 | 374,405 | 2.4 | % | 2.4 | % | ||||||||||||||||||||
WellStar Health System | 75 | A/A2 | 11 | 57 | 379,696 | 2.4 | % | 2.3 | % | ||||||||||||||||||||
Baptist Memorial Health Care | 89 | BBB+/-- | 8 | 50 | 337,426 | 2.2 | % | 2.0 | % | ||||||||||||||||||||
UCHealth | 46 | AA/Aa3 | 8 | 16 | 230,755 | 1.5 | % | 1.6 | % | ||||||||||||||||||||
Proliance Surgeons | — | - | 7 | 19 | 146,539 | 0.9 | % | 1.5 | % | ||||||||||||||||||||
Tenet Healthcare | 6 | B/B2 | 10 | 29 | 179,987 | 1.1 | % | 1.3 | % | ||||||||||||||||||||
Bon Secours Mercy Health | 22 | A+/A1 | 6 | 42 | 195,787 | 1.3 | % | 1.2 | % | ||||||||||||||||||||
Medstar Health | 45 | A/A2 | 3 | 55 | 154,238 | 1.0 | % | 1.2 | % | ||||||||||||||||||||
Trinity Health | 7 | AA-/Aa3 | 6 | 33 | 170,422 | 1.1 | % | 1.1 | % | ||||||||||||||||||||
MultiCare Health System | 82 | AA-/Aa3 | 5 | 18 | 150,201 | 1.0 | % | 1.0 | % | ||||||||||||||||||||
Inova Health | 70 | AA+/Aa2 | 4 | 11 | 117,184 | 0.7 | % | 1.0 | % | ||||||||||||||||||||
Providence St. Joseph Health | 5 | AA-/Aa3 | 7 | 23 | 101,590 | 0.6 | % | 0.9 | % | ||||||||||||||||||||
Eating Recovery Center | — | - | 4 | 7 | 106,140 | 0.7 | % | 0.9 | % | ||||||||||||||||||||
DaVita | — | BB/Ba2 | 15 | 18 | 132,339 | 0.8 | % | 0.9 | % | ||||||||||||||||||||
Hawaii Pacific Health | 181 | --/A1 | 3 | 38 | 96,176 | 0.6 | % | 0.8 | % | ||||||||||||||||||||
USPI 3 | — | B/B2 | 5 | 10 | 109,113 | 0.7 | % | 0.8 | % | ||||||||||||||||||||
Kaiser Permanente | 2 | AA-/-- | 4 | 10 | 101,830 | 0.7 | % | 0.7 | % | ||||||||||||||||||||
Labcorp of America | — | BBB/Baa2 | 25 | 27 | 183,779 | 1.2 | % | 0.7 | % | ||||||||||||||||||||
Palomar Health | 271 | BBB/Ba1 | 1 | 1 | 160,394 | 1.0 | % | 0.7 | % | ||||||||||||||||||||
U.S. Oncology | — | BBB+ | 8 | 14 | 120,360 | 0.8 | % | 0.7 | % | ||||||||||||||||||||
Overlake Health System | 291 | A/A2 | 2 | 8 | 73,676 | 0.5 | % | 0.7 | % | ||||||||||||||||||||
HCA Healthcare | 1 | BB+/Baa3 | 9 | 17 | 98,873 | 0.6 | % | 0.6 | % | ||||||||||||||||||||
Memorial Hermann Health | 39 | A+/A1 | 2 | 2 | 99,874 | 0.6 | % | 0.6 | % | ||||||||||||||||||||
Allina Health | 57 | AA-/Aa3 | 3 | 15 | 108,207 | 0.7 | % | 0.5 | % | ||||||||||||||||||||
GSA (U.S. Govt) | — | AA+/Aaa | 4 | 7 | 127,651 | 0.8 | % | 0.5 | % | ||||||||||||||||||||
Top 30 tenants | 984 | 7,030,157 | 45.0 | % | 47.4 | % | |||||||||||||||||||||||
Total investment-grade tenants 4 | 1,029 | 7,042,487 | 45.0 | % | 46.2 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 18 |
MOB Proximity to Hospital 1, 2 | ||
MEDICAL OFFICE BUILDINGS BY LOCATION | |||||||||||
CONSOLIDATED | JOINT VENTURE | TOTAL | |||||||||
On campus | 61.2 | % | 42.7 | % | 60.3 | % | |||||
Adjacent to campus 3 | 25.5 | % | 16.7 | % | 25.1 | % | |||||
Total on/adjacent | 86.7 | % | 59.4 | % | 85.4 | % | |||||
Off campus - anchored by health system 4 | 6.5 | % | 8.2 | % | 6.6 | % | |||||
Off campus | 6.8 | % | 32.4 | % | 8.0 | % | |||||
100.0 | % | 100.0 | % | 100.0 | % | ||||||
Square feet | 16,243,489 | 839,649 | 17,083,138 | ||||||||
% of total | 95.1 | % | 4.9 | % | 100.0 | % |
DISTANCE TO HOSPITAL CAMPUS | |||||||||||||||||||||||||||||
GROUND LEASE PROPERTIES | |||||||||||||||||||||||||||||
GREATER THAN | LESS THAN OR EQUAL TO | CAMPUS PROXIMITY | # OF PROPERTIES | SQUARE FEET | % OF TOTAL | CUMULATIVE % | # OF PROPERTIES | SQUARE FEET | % OF TOTAL | ||||||||||||||||||||
0.00 | On campus | 125 | 10,305,525 | 60.3 | % | 60.3 | % | 92 | 8,065,918 | 88.9 | % | ||||||||||||||||||
0.00 | 250 yards | Adjacent 3 | 53 | 2,715,784 | 15.9 | % | 76.2 | % | 2 | 128,717 | 1.4 | % | |||||||||||||||||
250 yards | 0.25 miles | 31 | 1,573,988 | 9.2 | % | 85.4 | % | 5 | 191,966 | 2.1 | % | ||||||||||||||||||
0.25 miles | 0.50 | Off campus | 6 | 405,857 | 2.4 | % | 87.8 | % | 1 | 124,925 | 1.4 | % | |||||||||||||||||
0.50 | 1.00 | 7 | 563,950 | 3.3 | % | 91.1 | % | — | — | — | % | ||||||||||||||||||
1.00 | 2.00 | 14 | 682,676 | 4.0 | % | 95.1 | % | 5 | 349,631 | 3.9 | % | ||||||||||||||||||
2.00 | 5.00 | 10 | 517,016 | 3.0 | % | 98.1 | % | — | — | — | % | ||||||||||||||||||
5.00 | 10.00 | 3 | 205,631 | 1.2 | % | 99.3 | % | 3 | 205,631 | 2.3 | % | ||||||||||||||||||
10.00 | 2 | 112,711 | 0.7 | % | 100.0 | % | — | — | — | % | |||||||||||||||||||
Total | 251 | 17,083,138 | 100.0 | % | 108 | 9,066,788 | 100.0 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 19 |
Lease Maturity, Lease & Building Size 1 | ||
LEASE MATURITY SCHEDULE | ||||||||||||||||||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||||||||||||||||||||
# OF LEASES | SQUARE FEET | % OF SQUARE FEET | # OF LEASES | SQUARE FEET | % OF SQUARE FEET | # OF LEASES | SQUARE FEET | % OF TOTAL SQUARE FEET | % OF BASE REVENUE 2 | |||||||||||||||||||||||
2022 | 793 | 2,445,104 | 16.5 | % | — | — | — | % | 793 | 2,445,104 | 15.6 | % | 16.3 | % | ||||||||||||||||||
2023 | 551 | 2,188,422 | 14.8 | % | — | — | — | % | 551 | 2,188,422 | 14.0 | % | 14.5 | % | ||||||||||||||||||
2024 | 623 | 2,639,610 | 17.8 | % | 1 | 63,000 | 7.4 | % | 624 | 2,702,610 | 17.3 | % | 17.0 | % | ||||||||||||||||||
2025 | 471 | 2,001,867 | 13.5 | % | 4 | 197,340 | 23.0 | % | 475 | 2,199,207 | 14.0 | % | 14.0 | % | ||||||||||||||||||
2026 | 416 | 1,457,821 | 9.9 | % | — | — | — | % | 416 | 1,457,821 | 9.3 | % | 9.1 | % | ||||||||||||||||||
2027 | 158 | 769,492 | 5.2 | % | 1 | 156,245 | 18.3 | % | 159 | 925,737 | 5.9 | % | 6.8 | % | ||||||||||||||||||
2028 | 196 | 959,900 | 6.5 | % | — | — | — | % | 196 | 959,900 | 6.1 | % | 6.1 | % | ||||||||||||||||||
2029 | 135 | 740,693 | 5.0 | % | 2 | 102,118 | 11.9 | % | 137 | 842,811 | 5.4 | % | 5.7 | % | ||||||||||||||||||
2030 | 119 | 498,432 | 3.4 | % | 1 | 138,028 | 16.1 | % | 120 | 636,460 | 4.1 | % | 3.6 | % | ||||||||||||||||||
2031 | 170 | 641,327 | 4.3 | % | — | — | — | % | 170 | 641,327 | 4.1 | % | 3.9 | % | ||||||||||||||||||
Thereafter | 73 | 461,415 | 3.1 | % | 3 | 199,822 | 23.3 | % | 76 | 661,237 | 4.2 | % | 3.0 | % | ||||||||||||||||||
Total leased | 3,705 | 14,804,083 | 87.1 | % | 12 | 856,553 | 100.0 | % | 3,717 | 15,660,636 | 87.7 | % | 100.0 | % | ||||||||||||||||||
Total building | 17,003,580 | 100.0 | % | 856,553 | 100.0 | % | 17,860,133 | 100.0 | % | |||||||||||||||||||||||
WALTR (months) 3 | 44.9 | 89.2 | 47.3 | |||||||||||||||||||||||||||||
WALT (months) 3 | 86.6 | 155.4 | 90.4 |
# OF LEASES BY SIZE | BY BUILDING SIZE | |||||||||||||||||||||||||
LEASED SQUARE FEET | MULTI-TENANT 4 | SINGLE-TENANT | BUILDING SQUARE FEET | % OF TOTAL | TOTAL SQUARE FOOTAGE | AVERAGE SQUARE FEET | # OF PROPERTIES | |||||||||||||||||||
0 - 2,500 | 1,973 | — | >100,000 | 37.1 | % | 6,615,703 | 143,820 | 46 | ||||||||||||||||||
2,501 - 5,000 | 928 | — | <100,000 and >75,000 | 25.1 | % | 4,483,940 | 86,230 | 52 | ||||||||||||||||||
5,001 - 7,500 | 311 | — | <75,000 and >50,000 | 18.0 | % | 3,222,825 | 63,193 | 51 | ||||||||||||||||||
7,501 - 10,000 | 160 | — | <50,000 and >25,000 | 16.8 | % | 3,005,645 | 38,046 | 79 | ||||||||||||||||||
10,001 + | 333 | 12 | <25,000 | 3.0 | % | 532,020 | 17,734 | 30 | ||||||||||||||||||
Total Leases | 3,705 | 12 | Total | 100.0 | % | 17,860,133 | 69,225 | 258 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 20 |
Historical Occupancy 1 | ||
DOLLARS IN THOUSANDS | ||
SAME STORE PROPERTIES | |||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | ||||||||||||||||||
Multi-tenant | |||||||||||||||||||||||
Number of properties | 170 | 167 | 163 | 156 | 158 | 156 | |||||||||||||||||
Total building square feet | 12,793,809 | 12,635,054 | 12,510,863 | 12,190,136 | 12,167,287 | 11,984,473 | |||||||||||||||||
Period end % occupied | 88.2 | % | 87.7 | % | 87.5 | % | 87.9 | % | 87.6 | % | 87.6 | % | |||||||||||
Single-tenant | |||||||||||||||||||||||
Number of properties | 8 | 11 | 11 | 11 | 12 | 12 | |||||||||||||||||
Total building square feet | 634,270 | 791,198 | 791,198 | 791,198 | 810,930 | 810,930 | |||||||||||||||||
Period end % occupied | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Total same store properties | |||||||||||||||||||||||
Number of properties | 178 | 178 | 174 | 167 | 170 | 168 | |||||||||||||||||
Total building square feet | 13,428,079 | 13,426,252 | 13,302,061 | 12,981,334 | 12,978,217 | 12,795,403 | |||||||||||||||||
Period end % occupied | 88.8 | % | 88.4 | % | 88.3 | % | 88.6 | % | 88.4 | % | 88.4 | % | |||||||||||
PROPERTIES NOT IN SAME STORE | |||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | ||||||||||||||||||
Acquisitions 2 | |||||||||||||||||||||||
Number of properties | 57 | 49 | 44 | 45 | 42 | 31 | |||||||||||||||||
Total building square feet | 2,742,579 | 2,396,693 | 2,062,568 | 2,091,663 | 2,178,267 | 1,667,990 | |||||||||||||||||
Period end % occupied | 89.7 | % | 89.8 | % | 91.8 | % | 89.8 | % | 89.2 | % | 91.4 | % | |||||||||||
Development completions | |||||||||||||||||||||||
Number of properties | 2 | 2 | 2 | 2 | 1 | 1 | |||||||||||||||||
Total building square feet | 261,914 | 261,914 | 261,914 | 261,914 | 151,031 | 151,031 | |||||||||||||||||
Period end % occupied | 71.5 | % | 72.3 | % | 64.5 | % | 64.5 | % | 60.5 | % | 60.5 | % | |||||||||||
% leased | 82.5 | % | 82.5 | % | 75.9 | % | 75.9 | % | 60.5 | % | 60.5 | % | |||||||||||
Reposition 3 | |||||||||||||||||||||||
Number of properties | 5 | 6 | 7 | 9 | 10 | 11 | |||||||||||||||||
Total building square feet | 587,912 | 668,889 | 714,437 | 741,798 | 799,764 | 859,004 | |||||||||||||||||
Period end % occupied | 59.7 | % | 54.8 | % | 57.5 | % | 59.7 | % | 61.0 | % | 62.1 | % | |||||||||||
Joint Venture | |||||||||||||||||||||||
Number of properties | 16 | 10 | 9 | 5 | 4 | — | |||||||||||||||||
Total building square feet | 839,649 | 611,872 | 587,916 | 384,755 | 325,396 | — | |||||||||||||||||
Period end % occupied | 88.2 | % | 88.5 | % | 85.3 | % | 84.3 | % | 72.4 | % | — | % | |||||||||||
% leased | 88.2 | % | 88.5 | % | 85.3 | % | 84.3 | % | 87.4 | % | — | % | |||||||||||
TOTAL PROPERTIES | |||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | ||||||||||||||||||
Number of properties | 258 | 245 | 236 | 228 | 227 | 211 | |||||||||||||||||
Total building square feet | 17,860,133 | 17,365,620 | 16,928,896 | 16,461,464 | 16,432,675 | 15,473,428 | |||||||||||||||||
Period end % occupied | 87.7 | % | 87.1 | % | 86.9 | % | 87.0 | % | 86.6 | % | 87.0 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 21 |
Occupancy Reconciliation | ||
SQUARE FEET | ||
SEQUENTIAL | |||||||||||||||||||||||||||||
PORTFOLIO | SAME STORE | ||||||||||||||||||||||||||||
COUNT | OCCUPIED | TOTAL | % | COUNT | OCCUPIED | TOTAL | % | ||||||||||||||||||||||
Beginning September 30, 2021 | 245 | 15,121,860 | 17,365,620 | 87.1 | % | 178 | 11,872,251 | 13,426,252 | 88.4 | % | |||||||||||||||||||
Portfolio activity | |||||||||||||||||||||||||||||
Acquisitions 1 | 19 | 704,400 | 780,210 | 90.3 | % | NA | NA | NA | NA | ||||||||||||||||||||
Re/development completions | — | — | — | — | % | — | — | — | — | % | |||||||||||||||||||
Dispositions 2 | (6) | (201,124) | (285,697) | 70.4 | % | (5) | (201,124) | (204,720) | 98.2 | % | |||||||||||||||||||
Same store reclassifications | |||||||||||||||||||||||||||||
Acquisitions | NA | NA | NA | NA | 5 | 200,919 | 206,547 | 97.3 | % | ||||||||||||||||||||
Development completions | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
Reposition to same store | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
Reposition from same store | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
258 | 15,625,136 | 17,860,133 | 87.5 | % | 178 | 11,872,046 | 13,428,079 | 88.4 | % | ||||||||||||||||||||
Leasing activity | |||||||||||||||||||||||||||||
New leases/expansions | NA | 187,524 | NA | NA | NA | 163,095 | NA | NA | |||||||||||||||||||||
Move-outs/contractions | NA | (152,024) | NA | NA | NA | (114,455) | NA | NA | |||||||||||||||||||||
Net absorption | NA | 35,500 | NA | NA | NA | 48,640 | NA | NA | |||||||||||||||||||||
Ending December 31, 2021 | 258 | 15,660,636 | 17,860,133 | 87.7 | % | 178 | 11,920,686 | 13,428,079 | 88.8 | % | |||||||||||||||||||
YEAR-OVER-YEAR | |||||||||||||||||||||||||||||
PORTFOLIO | SAME STORE | ||||||||||||||||||||||||||||
COUNT | OCCUPIED | TOTAL | % | COUNT | OCCUPIED | TOTAL | % | ||||||||||||||||||||||
Beginning December 31, 2020 | 227 | 14,224,190 | 16,432,675 | 86.6 | % | 170 | 11,467,256 | 12,978,217 | 88.4 | % | |||||||||||||||||||
Portfolio activity | |||||||||||||||||||||||||||||
Acquisitions 1 | 44 | 1,810,662 | 2,054,394 | 88.1 | % | NA | NA | NA | NA | ||||||||||||||||||||
Re/development completions | 1 | 77,508 | 110,883 | 69.9 | % | — | — | — | — | % | |||||||||||||||||||
Dispositions 2 | (14) | (533,138) | (737,819) | 72.3 | % | (12) | (464,619) | (598,876) | 77.6 | % | |||||||||||||||||||
Same store reclassifications | |||||||||||||||||||||||||||||
Acquisitions | NA | NA | NA | NA | 17 | 877,114 | 975,829 | 89.9 | % | ||||||||||||||||||||
Development completions | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
Reposition to same store | NA | NA | NA | NA | 3 | 54,029 | 72,909 | 74.1 | % | ||||||||||||||||||||
Reposition from same store | NA | NA | NA | NA | — | — | — | — | % | ||||||||||||||||||||
258 | 15,579,222 | 17,860,133 | 87.2 | % | 178 | 11,933,780 | 13,428,079 | 88.9 | % | ||||||||||||||||||||
Leasing activity | |||||||||||||||||||||||||||||
New leases/expansions | NA | 767,362 | NA | NA | NA | 508,356 | NA | NA | |||||||||||||||||||||
Move-outs/contractions | NA | (685,948) | NA | NA | NA | (521,450) | NA | NA | |||||||||||||||||||||
Net absorption | NA | 81,414 | NA | NA | NA | (13,094) | NA | NA | |||||||||||||||||||||
Ending December 31, 2021 | 258 | 15,660,636 | 17,860,133 | 87.7 | % | 178 | 11,920,686 | 13,428,079 | 88.8 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 22 |
Leasing Statistics 1 | ||
SAME STORE 4Q 2021 RENEWALS | ||||||||
Q4 2021 | 2021 | |||||||
Cash leasing spreads | 3.4 | % | 3.6 | % | ||||
Cash leasing spreads distribution | ||||||||
< 0% spread | 4.2 | % | 4.4 | % | ||||
0-3% spread | 6.9 | % | 8.6 | % | ||||
3-4% spread | 65.7 | % | 66.2 | % | ||||
> 4% spread | 23.2 | % | 20.8 | % | ||||
Total | 100.0 | % | 100.0 | % | ||||
Tenant retention rate | 83.6 | % | 83.4 | % | ||||
AVERAGE IN-PLACE CONTRACTUAL INCREASES 2 | ||||||||||||||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||||||||||||||
% INCREASE | % OF BASE RENT | % INCREASE | % OF BASE RENT | % INCREASE | % OF BASE RENT | |||||||||||||||||||||
Same store | 2.93 | % | 73.0 | % | 2.85 | % | 4.9 | % | 2.93 | % | 77.9 | % | ||||||||||||||
Acquisitions | 2.64 | % | 17.5 | % | 2.38 | % | 1.7 | % | 2.62 | % | 19.2 | % | ||||||||||||||
Other 3 | 3.10 | % | 2.9 | % | — | % | — | % | 3.10 | % | 2.9 | % | ||||||||||||||
Total 2 | 2.88 | % | 93.4 | % | 2.73 | % | 6.6 | % | 2.87 | % | 100.0 | % | ||||||||||||||
Escalator type | ||||||||||||||||||||||||||
Fixed | 2.90 | % | 98.0 | % | 2.60 | % | 90.0 | % | 2.88 | % | 97.5 | % | ||||||||||||||
CPI | 2.18 | % | 2.0 | % | 3.90 | % | 10.0 | % | 2.62 | % | 2.5 | % |
TYPE AND OWNERSHIP STRUCTURE | ||||||||||||||
MULTI-TENANT | SINGLE-TENANT | TOTAL | ||||||||||||
Tenant type | ||||||||||||||
Hospital | 44.4 | % | 60.4 | % | 45.3 | % | ||||||||
Physician and other | 55.6 | % | 39.6 | % | 54.7 | % | ||||||||
Lease structure | ||||||||||||||
Gross | 10.0 | % | — | % | 9.4 | % | ||||||||
Modified gross | 30.9 | % | — | % | 29.2 | % | ||||||||
Net | 59.1 | % | — | % | 55.9 | % | ||||||||
Absolute net 4 | — | % | 100.0 | % | 5.5 | % | ||||||||
Ownership type | ||||||||||||||
Ground lease | 52.6 | % | 32.7 | % | 51.6 | % | ||||||||
Fee simple | 47.4 | % | 67.3 | % | 48.4 | % |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 23 |
NOI Performance 1 | ||
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA | ||
SAME STORE CASH NOI | |||||||||||||||||||||||||||||||||||||||||
2021 | 4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 2020 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||||||||||||||||||
Revenues | $442,297 | $111,043 | $111,754 | $110,039 | $109,461 | $432,172 | $108,926 | $109,226 | $105,981 | $108,039 | |||||||||||||||||||||||||||||||
Expenses | 168,540 | 41,831 | 43,410 | 41,535 | 41,764 | 164,628 | 41,191 | 42,122 | 39,508 | 41,807 | |||||||||||||||||||||||||||||||
Cash NOI | $273,757 | $69,212 | $68,344 | $68,504 | $67,697 | $267,544 | $67,735 | $67,104 | $66,473 | $66,232 | |||||||||||||||||||||||||||||||
Revenue per occ SF 2 | $37.14 | $37.34 | $37.63 | $36.96 | $36.69 | $36.15 | $36.49 | $36.60 | $35.49 | $36.06 | |||||||||||||||||||||||||||||||
Margin | 61.9 | % | 62.3 | % | 61.2 | % | 62.3 | % | 61.8 | % | 61.9 | % | 62.2 | % | 61.4 | % | 62.7 | % | 61.3 | % | |||||||||||||||||||||
Average occupancy | 88.7 | % | 88.6 | % | 88.5 | % | 88.7 | % | 88.9 | % | 89.0 | % | 88.9 | % | 88.9 | % | 89.0 | % | 89.2 | % | |||||||||||||||||||||
Period end occupancy | 88.8 | % | 88.8 | % | 88.4 | % | 88.5 | % | 88.9 | % | 89.1 | % | 88.9 | % | 89.0 | % | 88.8 | % | 89.1 | % | |||||||||||||||||||||
Number of properties | 178 | 178 | 178 | 178 | 178 | 178 | 178 | 178 | 178 | 178 |
SAME STORE GROWTH | |||||||||||||||||
YEAR-OVER-YEAR | |||||||||||||||||
2021 | 4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | |||||||||||||
Revenue per occ SF 2 | 2.7 | % | 2.3 | % | 2.8 | % | 4.1 | % | 1.7 | % | |||||||
Avg occupancy (bps) | -30 | -30 | -40 | -30 | -30 | ||||||||||||
Revenues | 2.3 | % | 1.9 | % | 2.3 | % | 3.8 | % | 1.3 | % | |||||||
Expenses | 2.4 | % | 1.6 | % | 3.1 | % | 5.1 | % | (0.1 | %) | |||||||
Cash NOI | 2.3 | % | 2.2 | % | 1.8 | % | 3.1 | % | 2.2 | % | |||||||
EXCLUDING 2020 DEFERRAL RESERVE/REPAYMENT | ||||||||||||||
YEAR-OVER-YEAR | ||||||||||||||
2021 | 4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | ||||||||||
2.7 | % | 2.6 | % | 3.1 | % | 3.5 | % | 1.7 | % | |||||
-30 | -30 | -40 | -30 | -30 | ||||||||||
2.3 | % | 2.2 | % | 2.6 | % | 3.1 | % | 1.3 | % | |||||
2.4 | % | 1.6 | % | 3.1 | % | 5.1 | % | (0.1 | %) | |||||
2.3 | % | 2.7 | % | 2.3 | % | 2.0 | % | 2.2 | % | |||||
TOTAL CASH NOI | |||||||||||||||||||||||
4Q 2021 | 4Q 2020 | % CHANGE | 2021 | 2020 | % CHANGE | ||||||||||||||||||
Same store cash NOI | $69,212 | $67,735 | 2.2 | % | $273,757 | $267,544 | 2.3 | % | |||||||||||||||
Reposition | 693 | 757 | (8.5 | %) | 3,066 | 3,942 | (22.2 | %) | |||||||||||||||
$69,905 | $68,492 | 2.1 | % | $276,823 | $271,486 | 2.0 | % | ||||||||||||||||
Acquisitions/development completions | 12,002 | 4,024 | 198.4 | % | 36,888 | 9,550 | 286.4 | % | |||||||||||||||
Dispositions/assets held for sale/other | 814 | 2,345 | (65.3 | %) | 5,149 | 20,691 | (75.1 | %) | |||||||||||||||
Joint venture property cash NOI | 1,331 | 135 | 886.0 | % | 4,041 | 233 | 1,634.4 | % | |||||||||||||||
Cash NOI | $84,052 | $74,996 | 12.1 | % | $322,901 | $301,960 | 6.9 | % | |||||||||||||||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 24 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
BOTTOM UP RECONCILIATION | |||||||||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||||||||
Net income (loss) | $21,607 | ($2,066) | $23,096 | $24,022 | ($15,863) | $8,230 | $75,513 | $4,315 | |||||||||||||||||||||
Other income (expense) | (468) | 23,000 | (2,223) | (5,220) | 35,284 | 11,969 | (53,959) | 13,927 | |||||||||||||||||||||
General and administrative expense | 8,901 | 8,207 | 8,545 | 8,499 | 7,206 | 7,299 | 7,434 | 8,766 | |||||||||||||||||||||
Depreciation and amortization expense | 51,810 | 50,999 | 49,826 | 50,079 | 48,104 | 47,143 | 47,691 | 47,497 | |||||||||||||||||||||
Other expenses 1 | 3,850 | 3,193 | 2,840 | 2,783 | 2,919 | 2,364 | 2,185 | 3,365 | |||||||||||||||||||||
Straight-line rent expense | 382 | 380 | 369 | 367 | 369 | 373 | 374 | 375 | |||||||||||||||||||||
Straight-line rent revenue | (1,227) | (1,550) | (1,563) | (1,461) | (1,013) | (915) | (764) | (1,043) | |||||||||||||||||||||
Other revenue 2 | (2,134) | (2,043) | (2,075) | (1,865) | (2,145) | (1,609) | (1,660) | (2,004) | |||||||||||||||||||||
Joint venture property cash NOI | 1,331 | 1,210 | 1,035 | 465 | 135 | 19 | 1 | 78 | |||||||||||||||||||||
Cash NOI | $84,052 | $81,330 | $79,850 | $77,669 | $74,996 | $74,873 | $76,815 | $75,276 | |||||||||||||||||||||
Acquisitions/development completions | (12,002) | (10,024) | (7,946) | (6,916) | (4,024) | (3,028) | (1,780) | (718) | |||||||||||||||||||||
Dispositions/assets held for sale/other | (814) | (911) | (1,548) | (1,876) | (2,345) | (3,881) | (7,276) | (7,189) | |||||||||||||||||||||
Joint venture property cash NOI | (1,331) | (1,210) | (1,035) | (465) | (135) | (19) | (1) | (78) | |||||||||||||||||||||
Same store cash NOI and reposition | 69,905 | 69,185 | 69,321 | 68,412 | 68,492 | 67,945 | 67,758 | 67,291 | |||||||||||||||||||||
Reposition | (693) | (841) | (817) | (715) | (757) | (841) | (1,285) | (1,059) | |||||||||||||||||||||
Same store cash NOI | $69,212 | $68,344 | $68,504 | $67,697 | $67,735 | $67,104 | $66,473 | $66,232 | |||||||||||||||||||||
TOP DOWN RECONCILIATION | |||||||||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||||||||
Rental income before rent concessions | $132,853 | $132,971 | $129,609 | $129,466 | $124,537 | $124,079 | $122,958 | $123,518 | |||||||||||||||||||||
Rent concessions | (1,139) | (1,225) | (1,123) | (1,077) | (660) | (695) | (600) | (874) | |||||||||||||||||||||
Rental income | 131,714 | 131,746 | 128,486 | 128,389 | 123,877 | 123,384 | 122,358 | 122,644 | |||||||||||||||||||||
Parking income | 2,134 | 2,187 | 1,880 | 1,658 | 1,678 | 1,764 | 1,227 | 2,051 | |||||||||||||||||||||
Interest from financing receivable, net | 1,766 | 1,917 | 510 | — | — | — | — | — | |||||||||||||||||||||
Exclude straight-line rent revenue | (1,227) | (1,550) | (1,563) | (1,461) | (1,013) | (915) | (764) | (1,043) | |||||||||||||||||||||
Exclude other non-cash revenue 3 | (1,325) | (1,261) | (1,528) | (1,573) | (1,820) | (1,505) | (1,555) | (1,892) | |||||||||||||||||||||
Cash revenue | 133,062 | 133,039 | 127,785 | 127,013 | 122,722 | 122,728 | 121,266 | 121,760 | |||||||||||||||||||||
Property operating expense | (53,032) | (55,518) | (51,509) | (52,215) | (50,210) | (50,171) | (46,580) | (49,552) | |||||||||||||||||||||
Exclude non-cash expenses 4 | 2,691 | 2,599 | 2,539 | 2,406 | 2,349 | 2,297 | 2,128 | 2,990 | |||||||||||||||||||||
Joint venture property cash NOI | 1,331 | 1,210 | 1,035 | 465 | 135 | 19 | 1 | 78 | |||||||||||||||||||||
Cash NOI | $84,052 | $81,330 | $79,850 | $77,669 | $74,996 | $74,873 | $76,815 | $75,276 | |||||||||||||||||||||
Acquisitions/development completions | (12,002) | (10,024) | (7,946) | (6,916) | (4,024) | (3,028) | (1,780) | (718) | |||||||||||||||||||||
Dispositions/assets held for sale/other | (814) | (911) | (1,548) | (1,876) | (2,345) | (3,881) | (7,276) | (7,189) | |||||||||||||||||||||
Joint venture property cash NOI | (1,331) | (1,210) | (1,035) | (465) | (135) | (19) | (1) | (78) | |||||||||||||||||||||
Same store cash NOI and reposition | 69,905 | 69,185 | 69,321 | 68,412 | 68,492 | 67,945 | 67,758 | 67,291 | |||||||||||||||||||||
Reposition | (693) | (841) | (817) | (715) | (757) | (841) | (1,285) | (1,059) | |||||||||||||||||||||
Same store cash NOI | $69,212 | $68,344 | $68,504 | $67,697 | $67,735 | $67,104 | $66,473 | $66,232 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 25 |
NOI Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF NOI TO FFO AND NORMALIZED FFO | |||||||||||||||||||||||||||||
4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | ||||||||||||||||||||||
Cash NOI | $84,052 | $81,330 | $79,850 | $77,669 | $74,996 | $74,873 | $76,815 | $75,276 | |||||||||||||||||||||
General and administrative expense | (8,901) | (8,207) | (8,545) | (8,499) | (7,206) | (7,299) | (7,434) | (8,766) | |||||||||||||||||||||
Straight-line rent | 1,227 | 1,550 | 1,563 | 1,461 | 1,013 | 915 | 764 | 1,043 | |||||||||||||||||||||
Interest and other income (expense), net | (250) | — | (262) | 500 | 140 | 74 | 250 | 93 | |||||||||||||||||||||
Management fees and other income | 809 | 782 | 547 | 292 | 325 | 104 | 105 | 112 | |||||||||||||||||||||
Other non-cash revenue 1 | 1,325 | 1,261 | 1,528 | 1,573 | 1,820 | 1,505 | 1,555 | 1,892 | |||||||||||||||||||||
Other non-cash expenses 2 | (2,691) | (2,599) | (2,539) | (2,406) | (2,349) | (2,297) | (2,128) | (2,990) | |||||||||||||||||||||
Unconsolidated JV adjustments | 131 | 167 | 181 | 276 | (73) | (5) | (37) | (9) | |||||||||||||||||||||
Debt Covenant EBITDA | $75,702 | $74,284 | $72,323 | $70,866 | $68,666 | $67,870 | $69,890 | $66,651 | |||||||||||||||||||||
Interest expense | (13,266) | (13,334) | (13,261) | (13,262) | (13,618) | (14,154) | (14,442) | (13,960) | |||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | (21,503) | — | — | — | |||||||||||||||||||||
Acquisition and pursuit costs | (1,541) | (974) | (670) | (744) | (939) | (440) | (431) | (750) | |||||||||||||||||||||
Leasing commission amortization 3 | 2,382 | 2,294 | 2,258 | 2,111 | 2,033 | 1,971 | 1,795 | 1,893 | |||||||||||||||||||||
Non-real estate depreciation and amortization | (937) | (903) | (885) | (879) | (886) | (899) | (909) | (859) | |||||||||||||||||||||
Unconsolidated JV adjustments | (37) | (2) | (8) | (2) | (8) | — | — | — | |||||||||||||||||||||
FFO | $62,303 | $61,365 | $59,757 | $58,090 | $33,745 | $54,348 | $55,903 | $52,975 | |||||||||||||||||||||
Acquisition and pursuit costs | 1,541 | 974 | 670 | 744 | 939 | 440 | 431 | 750 | |||||||||||||||||||||
Lease intangible amortization | 192 | 48 | (6) | (72) | (4) | (35) | (16) | 745 | |||||||||||||||||||||
Significant non-recurring legal fees/forfeited earnest money received | 465 | — | — | (500) | — | — | — | — | |||||||||||||||||||||
Debt financing costs | — | — | 283 | — | 21,920 | — | — | — | |||||||||||||||||||||
Unconsolidated JV normalizing items | 90 | 54 | 55 | 27 | 16 | — | — | — | |||||||||||||||||||||
Normalized FFO | $64,591 | $62,441 | $60,759 | $58,289 | $56,616 | $54,753 | $56,318 | $54,470 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 26 |
EBITDA Reconciliations | ||
DOLLARS IN THOUSANDS | ||
RECONCILIATION OF EBITDA | ||||||||||||||||||||
TTM | 4Q 2021 | 3Q 2021 | 2Q 2021 | 1Q 2021 | ||||||||||||||||
Net income (loss) | $66,659 | $21,607 | ($2,066) | $23,096 | $24,022 | |||||||||||||||
Interest expense | 53,123 | 13,266 | 13,334 | 13,261 | 13,262 | |||||||||||||||
Depreciation and amortization | 202,714 | 51,810 | 50,999 | 49,826 | 50,079 | |||||||||||||||
Unconsolidated JV depreciation and amortization | 5,541 | 1,816 | 1,558 | 1,354 | 813 | |||||||||||||||
EBITDA | $328,037 | $88,499 | $63,825 | $87,537 | $88,176 | |||||||||||||||
Leasing commission amortization | 9,045 | 2,382 | 2,294 | 2,258 | 2,111 | |||||||||||||||
(Gain) loss on sales of real estate properties | (55,941) | (14,895) | (1,186) | (20,970) | (18,890) | |||||||||||||||
Impairments on real estate assets | 17,101 | 520 | 10,669 | 5,078 | 834 | |||||||||||||||
EBITDAre 1 | $298,242 | $76,506 | $75,602 | $73,903 | $72,231 | |||||||||||||||
EBITDA | $328,037 | $88,499 | $63,825 | $87,537 | $88,176 | |||||||||||||||
Acquisition and pursuit costs | 3,929 | 1,541 | 974 | 670 | 744 | |||||||||||||||
(Gain) loss on sales of real estate properties | (55,941) | (14,895) | (1,186) | (20,970) | (18,890) | |||||||||||||||
Impairments on real estate assets | 17,101 | 520 | 10,669 | 5,078 | 834 | |||||||||||||||
Unconsolidated JV adjustments | 49 | 37 | 2 | 8 | 2 | |||||||||||||||
Debt Covenant EBITDA | $293,175 | $75,702 | $74,284 | $72,323 | $70,866 | |||||||||||||||
Leasing commission amortization | 9,045 | 2,382 | 2,294 | 2,258 | 2,111 | |||||||||||||||
Lease intangible amortization | 162 | 192 | 48 | (6) | (72) | |||||||||||||||
Acquisition/disposition timing impact 2 | 4,385 | 2,058 | 781 | 1,150 | 396 | |||||||||||||||
Stock based compensation | 10,730 | 2,546 | 2,538 | 2,627 | 3,019 | |||||||||||||||
Unconsolidated JV adjustments | 175 | 52 | 52 | 46 | 25 | |||||||||||||||
Adjusted EBITDA | $317,672 | $82,932 | $79,997 | $78,398 | $76,345 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 27 |
Components of Net Asset Value | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
CASH NOI BY PROPERTY TYPE | ||||||||||||||||||||||||||
4Q 2021 | ||||||||||||||||||||||||||
ASSET TYPE | SAME STORE 1 | ACQ./DEV. COMPLETIONS 2 | JOINT VENTURE | REPOSITION 3 | TIMING ADJUSTMENTS 4 | ADJUSTED CASH NOI | ANNUALIZED ADJUSTED NOI | |||||||||||||||||||
MOB/outpatient | $65,024 | $12,002 | $1,331 | $693 | $5,002 | $84,052 | $336,208 | |||||||||||||||||||
Inpatient/Surgical | 3,123 | — | — | — | — | 3,123 | 12,492 | |||||||||||||||||||
Office | 1,065 | — | — | — | — | 1,065 | 4,260 | |||||||||||||||||||
Total Cash NOI | $69,212 | $12,002 | $1,331 | $693 | $5,002 | $88,240 | $352,960 |
DEVELOPMENT PROPERTIES | TOTAL SHARES OUTSTANDING | ||||||||||||||||
Land held for development | $24,849 | As of February 15, 2022 7 | 150,720,162 | ||||||||||||||
OTHER ASSETS | |||||||||||||||||
Cash and other assets 5 | 128,974 | ||||||||||||||||
DEBT | IMPLIED CAP RATE | ||||||||||||||||
Unsecured credit facility | $210,000 | STOCK PRICE | IMPLIED CAP RATE | ||||||||||||||
Unsecured term loan due 2024 | 200,000 | As of 2/15/22 | $31.03 | 5.43 | % | ||||||||||||
Unsecured term loan due 2026 | 150,000 | ||||||||||||||||
Senior notes | 1,150,000 | ||||||||||||||||
Mortgage notes payable | 103,664 | 4Q 2021 high | $33.70 | 5.12 | % | ||||||||||||
Remaining re/development funding | 62,245 | 4Q 2021 low | $30.47 | 5.50 | % | ||||||||||||
Other liabilities 6 | 97,687 | ||||||||||||||||
$1,973,596 |
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 28 |
Components of Expected FFO | ||
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||
SAME STORE EXPECTATIONS | |||||||||||||||||||||||
EXPECTED 2021 | ACTUAL | EXPECTED 2022 | |||||||||||||||||||||
LOW | HIGH | FY 2021 | LOW | HIGH | |||||||||||||||||||
Average Occupancy | |||||||||||||||||||||||
Multi-tenant | 87.5 | % | 88.5 | % | 88.1 | % | 87.5 | % | 88.5 | % | |||||||||||||
Single-tenant | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||
Total | 88.2 | % | 89.2 | % | 88.7 | % | 88.4 | % | 89.0 | % | |||||||||||||
Revenue per occupied square foot | $36.00 | $37.00 | $37.14 | $37.50 | $38.50 | ||||||||||||||||||
Cash NOI margin | 61.5 | % | 62.5 | % | 61.9 | % | 61.5 | % | 62.5 | % | |||||||||||||
Cash leasing spreads | 3.0 | % | 4.0 | % | 3.6 | % | 3.0 | % | 4.0 | % | |||||||||||||
Lease retention rate | 75.0 | % | 90.0 | % | 83.4 | % | 75.0 | % | 90.0 | % | |||||||||||||
Cash NOI growth | 2.0 | % | 3.0 | % | 2.3 | % | 2.25 | % | 3.25 | % | |||||||||||||
ANNUAL EXPECTATIONS | |||||||||||||||||||||||
LOW | HIGH | FY 2021 | LOW | HIGH | |||||||||||||||||||
Normalized G&A | $33,000 | $36,000 | $34,152 | $37,000 | $41,000 | ||||||||||||||||||
Straight-line rent, net 1 | 3,000 | 5,000 | 4,303 | 3,000 | 5,000 | ||||||||||||||||||
Funding activity | |||||||||||||||||||||||
Acquisitions (YTD actual)2 | 600,000 | 700,000 | 756,298 | 500,000 | 750,000 | ||||||||||||||||||
Dispositions (YTD actual) | (127,850) | (200,000) | (188,400) | (75,000) | (125,000) | ||||||||||||||||||
Re/development | 20,000 | 40,000 | 33,415 | 30,000 | 55,000 | ||||||||||||||||||
1st generation TI and acq. capex | 20,000 | 30,000 | 22,055 | 40,000 | 50,000 | ||||||||||||||||||
2nd generation TI | 28,000 | 34,000 | 26,363 | 35,000 | 45,000 | ||||||||||||||||||
Leasing commissions paid | 10,000 | 14,000 | 11,742 | 12,500 | 17,500 | ||||||||||||||||||
Capital expenditures | 18,000 | 23,000 | 19,582 | 18,000 | 23,000 | ||||||||||||||||||
Total maintenance capex | 56,000 | 71,000 | 57,687 | 65,500 | 85,500 | ||||||||||||||||||
Cash yield | |||||||||||||||||||||||
Acquisitions | 5.0 | % | 5.5 | % | 5.3 | % | 5.0 | % | 5.4 | % | |||||||||||||
Dispositions | 4.1 | % | 5.3 | % | 4.9 | % | 4.25 | % | 5.25 | % | |||||||||||||
Re/development (stabilized) | 6.0 | % | 7.5 | % | NA | 5.75 | % | 7.50 | % | ||||||||||||||
Leverage (debt/cap) | 32.0 | % | 36.0 | % | 34.2 | % | 32.0 | % | 38.0 | % | |||||||||||||
Net debt to adjusted EBITDA | 5.0x | 5.5x | 5.4x | 5.25x | 6.00x |
G&A ITEM OF NOTE | ||
HEALTHCARE REALTY | 4Q 2021 SUPPLEMENTAL INFORMATION 29 |
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