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 Trust (HR - Free Report) reported first-quarter 2018 normalized funds from operations (FFO) per share of 40 cents, in line with the Zacks Consensus Estimate. On a year-over-year basis, FFO per share increased by a penny.
Total revenues of $112.1 million in the reported quarter surpassed the Zacks Consensus Estimate of $110.7 million. Further, the figure was up 7.1% from the prior-year quarter.
Results in Detail
For the trailing 12-month period ended Mar 31, 2018, same-store revenues improved 3.1%, operating expenses inched up 2.3% and same-store net operating income increased 3.5%. Further, same-store revenues per average occupied square foot grew 2.7% while average same-store occupancy expanded 30 basis points (bps) from the prior year to 89.4%.
First-quarter leasing activity included 128 leases and aggregated 463,000 square feet of space. This comprised 316,000 square feet of renewals, and 147,000 square feet of new and expansion leases.
For the reported quarter, in the company’s same-store multi-tenant portfolio, contractual rent increases averaged 2.8% while cash leasing spreads were 5.2% on 247,000 square feet renewed. Moreover, tenant retention was 81.5% and the average yield on renewed leases advanced 60 bps.
The company exited the first quarter with cash and cash equivalents of $3.8 million, down from $6.2 million recorded at the end of the year-ago quarter.
Dividend Update
On May 1, the company announced a quarterly cash dividend of 30 cents per share. This dividend will be paid on May 31 to stockholders of record as of May 16, 2018. This dividend is equivalent to 75% of normalized FFO per share.
Our Take
Healthcare Realty’s solid operating performance mirrors encouraging prospects for the company. The aging baby-boomer generation and greater longevity will likely augment demand for healthcare facilities.
However, intense competition and estimated hike in interest rates are expected to curtail the company’s growth momentum in the near term.
Healthcare Realty currently carries a Zacks Rank #4 (Sell).
We are now looking forward to the earnings releases of EPR Properties (EPR - Free Report) , Jones Lang LaSalle Inc. (JLL - Free Report) and Realty Income Corp. (O - Free Report) . All of these are scheduled to report their numbers on May 8.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Healthcare Realty (HR) Q1 FFO Meets Estimates, Revenues Beat
Healthcare Realty Trust (HR - Free Report) reported first-quarter 2018 normalized funds from operations (FFO) per share of 40 cents, in line with the Zacks Consensus Estimate. On a year-over-year basis, FFO per share increased by a penny.
Results indicated improved same-store revenues, partially offset by higher operating expenses.
Total revenues of $112.1 million in the reported quarter surpassed the Zacks Consensus Estimate of $110.7 million. Further, the figure was up 7.1% from the prior-year quarter.
Results in Detail
For the trailing 12-month period ended Mar 31, 2018, same-store revenues improved 3.1%, operating expenses inched up 2.3% and same-store net operating income increased 3.5%. Further, same-store revenues per average occupied square foot grew 2.7% while average same-store occupancy expanded 30 basis points (bps) from the prior year to 89.4%.
First-quarter leasing activity included 128 leases and aggregated 463,000 square feet of space. This comprised 316,000 square feet of renewals, and 147,000 square feet of new and expansion leases.
For the reported quarter, in the company’s same-store multi-tenant portfolio, contractual rent increases averaged 2.8% while cash leasing spreads were 5.2% on 247,000 square feet renewed. Moreover, tenant retention was 81.5% and the average yield on renewed leases advanced 60 bps.
The company exited the first quarter with cash and cash equivalents of $3.8 million, down from $6.2 million recorded at the end of the year-ago quarter.
Dividend Update
On May 1, the company announced a quarterly cash dividend of 30 cents per share. This dividend will be paid on May 31 to stockholders of record as of May 16, 2018. This dividend is equivalent to 75% of normalized FFO per share.
Our Take
Healthcare Realty’s solid operating performance mirrors encouraging prospects for the company. The aging baby-boomer generation and greater longevity will likely augment demand for healthcare facilities.
However, intense competition and estimated hike in interest rates are expected to curtail the company’s growth momentum in the near term.
Healthcare Realty currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Healthcare Realty Trust Incorporated Price, Consensus and EPS Surprise
Healthcare Realty Trust Incorporated Price, Consensus and EPS Surprise | Healthcare Realty Trust Incorporated Quote
We are now looking forward to the earnings releases of EPR Properties (EPR - Free Report) , Jones Lang LaSalle Inc. (JLL - Free Report) and Realty Income Corp. (O - Free Report) . All of these are scheduled to report their numbers on May 8.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>