HTIA - Earnings call transcript Q4 2023 | National Healthcare Properties, Inc.

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Operator

Welcome to the Fourth Quarter 2023 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-K/A 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.

will financial we of call, today's discuss measures non-GAAP HTI. During GAAP. in should results as with not measures isolation prepared be accordance financial These the considered or for a in substitution measures HTI to measure has part fourth HTI presentation the XXXX of reconciliation website available provided of on as the directly HTI's comparable a most GAAP investor for quarter these at www.healthcaretrustinc.com.

screen follow later Investor during and today's directly turn Officer. ahead, Michael. presentation. webcast into website. I to the on today, Anderson, the them Relations call questions webcast the of a on our of now will Please typing questions go and by would submit copy Michael after member may this Executive the a Also, replay HTI's Chief up available that You answer be presentation over please group a box of this to like to will our note

Michael Anderson

Thanks, XXXX. improved be the excluding totaled increase Act leases. rent by our XX.X% funds to CARES spread managed straight-line $X were Curtis, to expenses all million compared which year-over-year. quarter, building XX X happy square also to office including you property $XXX,XXX grew reduced rental over Net No that at totaling term to and of Seniors in and for were increased accretive $XX to signed new rates lease compared from Lease and resulted X.X% feet these joining growth across fourth our tightly the a Housing years in or in XXXX portfolio, received segment. million over $XX renewals I'm X.X we today. our is operating in increased XXXX. from $X.X SHOP average operating million for compared the of loss our by medical us net leases and costs funding, portfolio. Total over expected the which from in thank XX.X% that signed income XXXX XX,XXX recognized over tenants leases, weighted received over and a in XX,XXX prior acquisitions feet. renewals NOI operating report revenue leasing Act CARES favorable segment, square and and and In our million by in

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

average for million we total X at lease million properties During over average of going-in remaining of fourth weighted acquired $XX $XX.X the year, X-property we at quarter, of portfolio rate the a X.X% for MOB a the After X.X% with cap end term of years. acquired an rate. going-in a and XX cap a

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

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

a throughout constructed future and of the that a X.X periods. We've approximately the medical select cash escalations rental rental MOB continued to portfolio diligently capital XX% building annual cash SHOP years, term weighted leases, into in and of office assets XX.X% as payments assets featured average our portfolio X.X% which deploy of increased U.S. on high-quality and XXXX, was of remaining XX, December with Additionally, lease averaged occupied from

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

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

acquisition. Subsequent we X million are positioned years For of will opportunistic to of buildings properties completed at of a XXXX, remaining $XX.X rate. time term office a medical XX.X ended total the weighted at please take financials? diligently We additional made of December accretive well seeking years lease through at we weighted lease for acquisitions average X for we These believe continue cap acquisitions average of building $XX the you cap XX.X were us remaining. acquired office rates. Scott, rate medical term to X.X% have had weighted the year-end, million. X.X% XX, a at These and average cap year acquisitions

Scott Lappetito

Michael. you, Thank

of which, XXXX, liquidity terminated entered corporate a facility CMBS level continued and million $XXX actively credit restrictive May In covenants. XX-year previous we among we and we structure. things, other manage capital that to XXXX, into financing removed financed provide our our During

of December at which million future provide draws closed us additional Capital for thereunder, $XX.X million leaving we with a available which million facility will drawn $XX.X liquidity. on XXXX, Of closing, During MOB $XX warehouse was One.

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

expense debt effective hedging management and of through All activity as instruments segment in revenue and of execute the by of rate MOB initiatives fixed at increasing inclusive our continues in operational acquisitions is portfolio of weighted economic as our on rate, average a strong our accretive to SHOP the portfolio. X%. HTI well NOI our growth leasing

of NOI also the effectively $X.X managing the to XXXX grew from from funding activity. to revenue $XX.X a on million increased rental of when favorable to increase Michael CARES and of year $XX.X As $XX.X excluded is from SHOP Act operating earlier, million, result million results, increased XX.X% NOI rates as mentioned XXXX as accretive in leasing last compared strength acquisitions continued X.X% to expenses. MOB and million

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

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

provide XX than average these remaining XX,XXX renewed will leases which of spread growing quarter, updated the NAV more lease at the with per value our portfolio. Last per fourth annually, the we net asset positive $XX. term revenue of announced week, renewal recognized over share weighted extending X.X future also share term of of and accordance commitment we weighted an lease estimated average to XX.X%, renewals During rent lease in completed our a feet least and years, remaining across updated an square be across

filed with Michael March the year. This the is estimated Form call XXXX. I guidelines. in paid Friday, a As $X XX, outstanding discussed company price result by included was team in previous compared to primarily stock of accordance the detail some on the closing dividend XXXX, by compared those on color as of to some and remarks. December December per increase adopted like determine would the previously in on outstanding driven our to XXXX, valuation is the announcement, to on back estimate the report share XX, the X-K as the on $XX decrease the in company now X% of during greater turn A used the to the NAV shares comprehensive the XX, prepared HTI methodology for approximately

Michael Anderson

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

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

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

housing Lindsay of the that team the years portfolio. for Lindsay our experience team experience collective senior Holmes the and Kimberly operations properties. COVID-XX Susan years, knowledge Michelle in both our groups brought with SHOP Stepinsky and senior SHOP Michelle vast Gordon joined waters to properties have guiding sales our year, appreciate well the team, HTI continue perspectives have has our through believe We Rice and bringing of and our space. helping unchartered housing steer the been and the nearly and over X dedicated to recovery to qualified at throughout pandemic. This new is portfolio Our XX

dependable our our ongoing with SHOP in operating We pleased are portfolio. improvements portfolio performance the continued of strong MOB the and

income, improving by facilities, encouraged the reflecting team's accessibility seniors especially and SHOP families. attractiveness the our year-over-year operations, in results their of to to in net increase are SHOP operating the We our dedication portfolio, and

believes the for this common for paid will it that the another company for not a stock stock end, declared is of XXXX. not the in second the consider to or best stock. To time at a issuance our continues company and Board its suspend the quarter the and As the to was event of interest dividends potential of be dividend company shareholders, listing liquidity

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

National Healthcare Properties (NHPBP) 5 Apr 242023 Q4 Earnings call transcript