Healthcare Trust (HTIA) 30 May 242024 Q1 Earnings call transcript

Welcome to the First Quarter 2024 Healthcare Trust Inc. or HTI Webcast. [Operator Instructions] Please note, this event is being recorded. Also note that certain statements and assumptions in this webcast presentation, which are not historical facts, will be forward-looking and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain assumptions and risk factors, which could cause HTI's actual results to differ materially from the forward-looking statements. We refer all of you to our SEC filings, including the Form 10-K for the year ended December 31, 2023, filed on March 15, 2024, as amended by the Form 10-KA filed on March 22, 2024, and all other SEC filings after that date for a more detailed discussion of the risk factors that could cause these differences and impact our business.

During today's call, we will discuss non-GAAP financial measures of HTI. be financial isolation with results not substitution as GAAP. should the for prepared measures considered or in a These in accordance most Also, XXXX investor HTI measures available on as reconciliation a at presentation of directly www.healthcaretrustinc.com. [Operator website the Instructions] part quarter has measure note comparable first of the HTI's GAAP please provided to these to website. I later Michael the will be webcast today, of replay the turn Executive Chief a that our to on Anderson, copy would HTI's Officer. and call like of over this presentation now available Please Michael. ahead, go

a I'm you to quarter, XX.X%. to Thanks, for our by in Curtis. Thank X.X% all income by $X.X operating that joining senior last increase us to in to today. portfolio increased driven XX.X% happy occupancy compared housing in report million, net part

X.X% compared In the NOI favorable acquisitions accretive in tenants also approximately growth strength renewals years. of office feet increased portfolio. Total totaling from weighted our of and XX.X%, recognized the term on signed the building is renewal revenue to leases also by We lease renewed expected over XX spread which fourth million rental over achieved quarter segment lease the a positive square XXXX. to of leasing our in at average XX,XXX medical $X.X be we these X.X first quarter, of

rate to grow occupancy We signed LOIs have XX.X% and the in occupancy MOB on definitive to commencement, feet a the their agreements. portfolio leases expected current commence forward leasing XX% terms is pipeline square of assuming over lead that current to from all XX,XXX upon

at a X-property MOB a for X.X% quarter, million rate. we $XX.X the acquired During going-in cap portfolio

shareholders. position believe as to that and we strategic continue common a event will accretive better to for our portfolio We company liquidity our we future strengthen for continue dispositions pursue the acquisitions

with operating XX, buildings, in was MOB XXX square senior parcels. comprised of SHOP HTI on housing XX% portfolio land portfolio XX% over of and units million states. properties As X,XXX totaling XX XX of individual approximately medical over XXX X owned assets. feet office properties X Based over XXXX, the The March rentable and NOI, consisted

office of cash as XX, with term periods. on and Additionally, March portfolio featured X.X lease a payments our leases, was escalations occupied rental years average approximately future weighted building that averaged remaining in which annual XXXX, the XX.X% of rent XX% increased X.X% cash of medical

We MOB of assets have and high-quality assets a deploy diligently portfolio continue U.S. capital into the and SHOP to select constructed throughout

by XX% across of health HTI health quality MOB care relationships the We our gives portfolio is segment. We well total the care strong is other tenants to states durable as well. by of but and office developing with portfolio Quarterly our the stakeholders long-term was $XX essential generated our of maintain NOI DaVita, brands XX with partner the for portfolio million, the and of representing real Fresenius only only Our straight-line with which diversified XX% believe the building more stability patients such medical well-established believe brands portfolio geographically benefit UPMC shareholders, a rent. and approximately estate. our portfolio than focus. We as X with portfolio tenants in markets partnerships states top not and to that success well-respected was and

maintain As HTI's strong to to grow operators. portfolio with to continue MOB we portfolio, add SHOP our tenants high-quality our seek we relationships to and

at through lease for take you opportunistic will we We of we term cap buildings weighted rates. Scott, acquired medical accretive X X.X% the average to believe have properties cap quarter, at additional $XX.X the XX.X office are seek remaining. a us please well These diligently positioned continue For rate. years to financials? million acquisitions

Thank Michael. you,

actively to capital continuing structure. manage our are We

March net our XXXX, XX, XX.X%. was leverage of As

weighted average rate a rate, fixed instruments of is debt X%. our of economic of All interest at hedging inclusive our

of comprised and MOBs aggregate million X asset debt SHOPs with Our value rate is an XXX gross of fixed by secured billion. $X.X $XXX.X mortgages of

drawn to execute had One Facilities acquisitions December Warehouse in expense of strong in closed on growth is $XX we million Credit addition, million continues NOI and well MOB leasing the initiatives $XXX our XXXX. HTI our In SHOP operational increasing million that activity we and through by segment on effective MOB Fannie the Mae revenue Facility drawn that our as Capital portfolio. on portfolio $XX and management on in Master accretive as the

earlier, of quarter increased NOI portfolio accretive Michael of increase as occupancy in the rates. Similarly, same favorable result our XX.X% acquisitions as first in improved a MOB SHOP in mentioned leasing. rental by portfolio X.X% the grew revenues period and continued and previous to NOI because the As compared quarter by the during to

We successfully all in to office portfolio. medical lease building our available continue space

forward assuming current We their and on the pipeline have of a leasing terms XX,XXX square LOIs over commence feet, leases lead to leases. all definitive signed

lease positive and growing and term of closing renewed square XX some like would on a remarks. portfolio. I Michael weighted turn than across of to as now term some over quarter, which revenue XX,XXX renewal the our future to color extending these X.X renewals call for XX.X%, the During of be first across years, rental lease lease the the HTI average weighted back remaining will more feet also remaining average completed spread leases recognized we the team

believe available HTI other we among earnings long-term acquiring will MOB for and by, We space Thanks, properties. growth on Scott. capitalizing high-quality things, position leasing

the to as positive accretive and its completed spread to renewals we on capture last continues in acquisitions the grew portfolio NOI compared lease demonstrate resilience MOB portfolio, Our quarter.

place maximize responsible XX drive trends, well acquisitions experience favor care real demographic in track managers. David a to investment have MOB health ensures of that that are that of local underwriting existing team is investment for $X are Asset guidelines applying by in performing by long-term leased, an which our to we expected billion Ruggiero and over estate. needs we value. Trent Senior We record believe our the to and Vice right the properties met and team as Management have our our is strict We experienced to tenants' Taylor and believe acquisitions, our strategy being is property standards. President positioned created opportunities execute management long-term years

of dedicated team housing the our has been over clinical collective properties; vast knowledge with Our over experience for the senior our and this helping has and COVID brings guide segment sales experience years through Susan Rice, Lindsay part in Clinical VP and Stepinsky operations our extensive Operations, space. team expertise. at and to their SHOP SHOP XX X of years, Michelle Gordon groups of

increase reported segment in income our the dependable are this We ongoing the quarter occupancy of performance SHOP in and the quarter-over-quarter XX.X% this in with we growing SHOP portfolio prior the X.X% pleased same beginning in portfolio. are time, that increase momentum improvement extend we portfolio. net to the compared MOB its in strong our continued to the quarter. X.X% NOI performance, see operating At

declare a event disclosed did company stock potential be shareholders. not another in and quarter, listing last or to As the paid to the the we company liquidity to as its a April dividend continues consider Board

periodic performance, As much we subsequent to you always, all like with and look provide and through HTI's to very stakeholders continuing our liquidity updates webcasts today. Thank us. press our releases filings, results forward for joining path a to on