Healthcare Realty Trust Incorporated (NYSE:HR) Q4 2022 Earnings Conference Call March 1, 2023 12:00 PM ET

Company Participants

Ron Hubbard - Vice President of Investor Relations

Todd Meredith - President, Chief Executive Officer & Director

Kris Douglas - Chief Financial Officer

Rob Hull - Executive Vice President, Investments

Conference Call Participants

Austin Wurschmidt - KeyBanc Capital Markets

Nick Yulico - Scotiabank

Rich Anderson - SMBC Nikko Securities

Michael Griffin - Citigroup

Steven Valiquette - Barclays

Jonathan Hughes - Raymond James

Mike Mueller - JPMorgan

Tayo Okusanya - Credit Suisse

John Pawlowski - Green Street

Operator

Thank you for joining. I would like to welcome you all to the Healthcare Realty Trust Fourth Quarter Earnings Conference Call. My name is Brika, and I'll be your event specialist operating today's call. [Operator Instructions]

Thank you. I would now like to hand the call over to our host, Ron Hubbard of Investor Relations. Sir, you may begin your conference call.

Ron Hubbard

Thank you, Brika. Thank you, everyone, for joining us today for Healthcare Realty's fourth quarter 2022 earnings conference call. Joining me on the call today are Todd Meredith, Kris Douglas and Rob Hull.

A reminder that, except for historical information contained within, the matters discussed in this call may contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. These risks are more specifically discussed in the company's Form 10-K filed with the SEC for the year ended December 31, 2022, and Form 10-Ks filed with the SEC for the quarters ended March 31, June 30 and September 30, 2022. These forward-looking statements represent the company's judgment as of the date of this call. The company disclaims any obligation to update this forward-looking material.

The matters discussed in this call may also contain certain non-GAAP measures, financial measures such as funds from operations or FFO; normalized FFO; FFO per share; normalized FFO per share; funds available for distribution or FAD; net operating income, NOI; EBITDA; and adjusted EBITDA. A reconciliation of these measures to the most comparable GAAP financial measures may be found in the company's earnings press release for the quarter ended December 31, 2022. The company's earnings press release, supplemental information and Form 10-Q are available on the company's website.

I'll now turn the call over to Todd.

Todd Meredith

Thank you, Ron. And thank you, everyone, for joining us for our fourth quarter 2022 earnings call. I'll start by pointing out that we've successfully achieved two key merger integration objectives. First, in January, we completed the final portion of our planned asset sales to fund the merger-related special cash dividend. It's worth noting that we executed these sales at our targeted cap rates. Second, we realized our full annualized G&A savings in the fourth quarter. That's in half the time we originally expected. The primary driver was reaching our projected staffing levels. Most importantly, we fully transitioned to the Healthcare Realty leasing model with full brokerage coverage across our portfolio. Later, Rob will expand on how this is already building leasing momentum. I would like to commend my Healthcare Realty colleagues for their incredible effort and dedication to accomplishing these milestones.