We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Healthcare Realty's (HR) Q1 FFO and Revenues Lag Estimates
Read MoreHide Full Article
Healthcare Realty Trust Inc. (HR - Free Report) reported first-quarter 2017 normalized funds from operations (“FFO”) per share of 39 cents, missing the Zacks Consensus Estimate of 40 cents. Total revenue of $104.6 million in the quarter also missed the Zacks Consensus Estimate of $106 million.
On a year-over-year basis, FFO per share declined 4.9% primarily due to a 13% increase in average share count. However, total revenue grew 4.5% from the prior-year quarter.
The Numbers in Detail
For the trailing 12-month period ended Mar 31, 2017, same store revenues improved 3.3%, operating expenses expanded 1.4% and same store net operating income (“NOI”) increased 4.4%. Further, same-store revenue per average occupied square foot grew 2.8%, while average same store occupancy expanded 50 basis points (bps) from a year ago to 89.1%.
First-quarter leasing activity included 154 leases and aggregated 560,000 square feet of space. This comprised 381,000 square feet renewals and 179,000 square feet of new and expansion leases.
For the first quarter, in the company’s same-store multi-tenant portfolio, contractual rent increases averaged 2.9%, while cash leasing spreads were 4.5% on 358,000 square feet renewed. Moreover, tenant retention was 79.2% and the average yield on renewed leases climbed 50 bps.
In addition, for the quarter, dispositions totaled $82 million, which included three inpatient rehabilitation facilities worth $69.5 million.
The company exited the quarter with cash and cash equivalents of $1.5 million, down from $5.4 million at prior-year end.
Dividend Update
On May 02, 2017, the company declared a quarterly cash dividend of 30 cents per share. This dividend is payable on May 31, 2017 to stockholders of record as of May 16 and is equivalent to 76.9% of normalized FFO per share.
Our Take
Rising national healthcare expenditure and an anticipated increase in demand for medical office buildings augur well for Healthcare Realty. However, stiff competition and estimated increase in interest rates are likely to curtail the company’s growth momentum in the near term.
Healthcare Realty Trust Incorporated Price, Consensus and EPS Surprise
Also, shares of Healthcare Realty have underperformed the Zacks categorized REIT and Equity Trust - Other over the past six months. Over this time frame, Healthcare Realty gained 5.3% compared with 6.4% gain for the industry.
Performance of Other REITs
Cousins Properties Incorporated (CUZ - Free Report) reported first-quarter 2017 FFO per share of 16 cents compared with 21 cents in the year-ago period. Excluding $1.9 million of transaction costs, FFO per share for the quarter came in at 17 cents, surpassing the Zacks Consensus Estimate of 15 cents. Total revenue for the quarter came in at $119.9 million, compared with $47.9 million reported in the prior-year period.
Duke Realty Corporation’s first-quarter 2017 core FFO per share of 32 cents surpassed the Zacks Consensus Estimate of 29 cents and came in 4 cents ahead of the year-ago figure. In-service occupancy reached a record level of 97.7% in the quarter. Total rental and related revenue for the quarter was $217.9 million, up approximately 8% year over year. This number also surpassed the Zacks Consensus Estimate of $204 million.
PS Business Parks, Inc. reported first-quarter 2017 FFO of $1.52 per share, surpassing the Zacks Consensus Estimate of $1.41. Moreover, the figure was 20.6% higher than $1.26 in the prior-year quarter. The rise was attributable to higher net operating income (NOI), reduced interest expenses and savings from lower preferred distributions. Total operating revenue came in at around $100.2 million, reflecting 4.4% growth from the prior-year period. The figure also surpassed the Zacks Consensus Estimate of $96 million.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Healthcare Realty's (HR) Q1 FFO and Revenues Lag Estimates
Healthcare Realty Trust Inc. (HR - Free Report) reported first-quarter 2017 normalized funds from operations (“FFO”) per share of 39 cents, missing the Zacks Consensus Estimate of 40 cents. Total revenue of $104.6 million in the quarter also missed the Zacks Consensus Estimate of $106 million.
On a year-over-year basis, FFO per share declined 4.9% primarily due to a 13% increase in average share count. However, total revenue grew 4.5% from the prior-year quarter.
The Numbers in Detail
For the trailing 12-month period ended Mar 31, 2017, same store revenues improved 3.3%, operating expenses expanded 1.4% and same store net operating income (“NOI”) increased 4.4%. Further, same-store revenue per average occupied square foot grew 2.8%, while average same store occupancy expanded 50 basis points (bps) from a year ago to 89.1%.
First-quarter leasing activity included 154 leases and aggregated 560,000 square feet of space. This comprised 381,000 square feet renewals and 179,000 square feet of new and expansion leases.
For the first quarter, in the company’s same-store multi-tenant portfolio, contractual rent increases averaged 2.9%, while cash leasing spreads were 4.5% on 358,000 square feet renewed. Moreover, tenant retention was 79.2% and the average yield on renewed leases climbed 50 bps.
In addition, for the quarter, dispositions totaled $82 million, which included three inpatient rehabilitation facilities worth $69.5 million.
The company exited the quarter with cash and cash equivalents of $1.5 million, down from $5.4 million at prior-year end.
Dividend Update
On May 02, 2017, the company declared a quarterly cash dividend of 30 cents per share. This dividend is payable on May 31, 2017 to stockholders of record as of May 16 and is equivalent to 76.9% of normalized FFO per share.
Our Take
Rising national healthcare expenditure and an anticipated increase in demand for medical office buildings augur well for Healthcare Realty. However, stiff competition and estimated increase in interest rates are likely to curtail the company’s growth momentum in the near term.
Healthcare Realty Trust Incorporated Price, Consensus and EPS Surprise
Healthcare Realty Trust Incorporated Price, Consensus and EPS Surprise | Healthcare Realty Trust Incorporated Quote
Healthcare Realty currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, shares of Healthcare Realty have underperformed the Zacks categorized REIT and Equity Trust - Other over the past six months. Over this time frame, Healthcare Realty gained 5.3% compared with 6.4% gain for the industry.
Performance of Other REITs
Cousins Properties Incorporated (CUZ - Free Report) reported first-quarter 2017 FFO per share of 16 cents compared with 21 cents in the year-ago period. Excluding $1.9 million of transaction costs, FFO per share for the quarter came in at 17 cents, surpassing the Zacks Consensus Estimate of 15 cents. Total revenue for the quarter came in at $119.9 million, compared with $47.9 million reported in the prior-year period.
Duke Realty Corporation’s first-quarter 2017 core FFO per share of 32 cents surpassed the Zacks Consensus Estimate of 29 cents and came in 4 cents ahead of the year-ago figure. In-service occupancy reached a record level of 97.7% in the quarter. Total rental and related revenue for the quarter was $217.9 million, up approximately 8% year over year. This number also surpassed the Zacks Consensus Estimate of $204 million.
PS Business Parks, Inc. reported first-quarter 2017 FFO of $1.52 per share, surpassing the Zacks Consensus Estimate of $1.41. Moreover, the figure was 20.6% higher than $1.26 in the prior-year quarter. The rise was attributable to higher net operating income (NOI), reduced interest expenses and savings from lower preferred distributions. Total operating revenue came in at around $100.2 million, reflecting 4.4% growth from the prior-year period. The figure also surpassed the Zacks Consensus Estimate of $96 million.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>