Healthcare Realty Trust, Inc. (NYSE:HR) Q4 2023 Earnings Conference Call February 16, 2024 11:00 AM ET

Company Participants

Ronald Hubbard - VP, IR

Todd Meredith - President, CEO & Director

James Douglas - EVP & CFO

Robert Hull - EVP, Investments

Conference Call Participants

Michael Griffin - Citigroup

Connor Siversky - Wells Fargo Securities

Juan Sanabria - BMO Capital Markets

John Pawlowski - Green Street Advisors

Michael Gorman - BTIG

Michael Mueller - JPMorgan Chase & Co.

Operator

Good morning or good afternoon, and welcome to the Healthcare Realty Trust Fourth Quarter Earnings Conference Call. My name is Adam, and I will be your operator for today. [Operator Instructions].

I will now hand the floor to Ron Hubbard, Vice President of Investor Relations, to begin. Sir Ron, please go ahead when you are ready.

Ronald Hubbard

Thank you for joining us today for Healthcare Realty's Fourth Quarter 2023 Earnings Conference Call.

Joining me on the call today are Todd Meredith; Kris Douglas; and Rob Hull.

A reminder that except for the 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, 2023. 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 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, 2023. The company's earnings press release, supplemental information, and Form 10-K 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 this morning.

Healthcare Realty generated solid quarterly results meeting or exceeding expectations on several key metrics. Normalized FFO of $0.39 per share for the fourth quarter was steady and in line with our expectations. Same-store growth for the quarter and year was in the upper half of our guidance range. You will recall, we published a bridge last quarter, outlining our expectations for multi-tenant occupancy and NOI growth, starting with the fourth quarter. We are pleased to report over 50 basis points of positive absorption at the very top end of our expected range for the multi-tenant properties and NOI growth accelerated above the high end of our range to 3.3% for all multi-tenant properties, not just same store. These strong fourth quarter results were achieved through the focus and incredible efforts of our leasing and operations teams.