Healthcare Realty Trust Incorporated (HRTI, LLC), a Real Estate Investment Trust (REIT) focused on outpatient healthcare services, reported a decline in rental income for the three months ended September 30, 2024, totaling $306.5 million, down from $333.3 million in the same period of 2023. For the nine months ended September 30, 2024, rental income also decreased to $932.7 million from $987.1 million year-over-year. Total expenses for the third quarter of 2024 were $304.3 million, a reduction from $336.2 million in the prior year, while expenses for the nine-month period decreased to $924.3 million from $971.9 million.
The company experienced a net loss of $(94.5 million) for the three months ended September 30, 2024, compared to a loss of $(68.6 million) in the same quarter of 2023. For the nine months, the net loss widened significantly to $(555.7 million) from $(240.4 million) in the previous year. Basic earnings per common share reflected this trend, with a loss of $(0.26) for the third quarter of 2024, compared to $(0.18) in 2023, and $(1.49) for the nine months ended September 30, 2024, versus $(0.63) in the prior year.
A notable factor contributing to the increased losses was the recognition of real estate impairments totaling $37.6 million in Q3 2024 and $174.5 million for the nine-month period. Additionally, a goodwill impairment of $250.5 million was recorded in Q1 2024 due to a decline in the company's stock price.
Strategically, Healthcare Realty Trust did not engage in any real estate acquisitions during the nine months ended September 30, 2024. However, the company contributed 15 properties into new joint ventures, retaining a 20% ownership interest. The company generated net proceeds of $343.1 million from the disposition of medical outpatient properties, including a significant transaction involving seven properties in Greensboro, NC, and two in Raleigh, NC, which yielded $148.9 million.
As of September 30, 2024, total stockholders’ equity decreased to $5.5 billion from $7.0 billion a year earlier, reflecting the impact of the net losses and impairments. The company also reported a decrease in notes and bonds payable to approximately $4.96 billion, down from $4.99 billion at the end of 2023. The company has an unsecured credit facility of $1.5 billion, with $206,000 drawn as of the reporting date.
In terms of stock repurchase activity, the company repurchased a total of 25.7 million shares during 2024, with $119.2 million remaining under its stock repurchase authorization as of September 30, 2024. The Board of Directors authorized an additional stock repurchase of up to $300 million on October 29, 2024.
About Healthcare Realty Trust Inc
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