10-K annual report · filed Feb 25, 2014

Healthcare Realty Trust Inc (HR) FY2013 10-K Annual Report

Short answer

Healthcare Realty Trust Inc (HR) filed its fiscal 2013 10-K annual report with the SEC on Feb 25, 2014.

  • Top risk flagged: Dodd-Frank Act derivatives and governance rules, potential increases in capital and compliance costs

Healthcare Realty Trust Inc FY2013 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • REIT owning and operating U.S. medical office buildings, targeting stable rental cash flows, dividends and property appreciation
  • $397.8M acquisitions, adding 1.5M square feet across Dallas, Denver, Miami, Tampa and West Palm Beach
  • Internal asset management expanded to 85% of the portfolio from approximately 70%, reinforcing operating-control strategy
  • Portfolio reached 14.1M square feet with 91.6% occupancy and 85% annual tenant retention
  • December credit upgrade, $300M 3.70% senior notes issuance and $613.1M total liquidity strengthened growth capacity

Management Discussion & Analysis

  • Revenue $319.9M, up 7.6% YoY from $297.4M
  • NOI $224.3M, up 9.8% from $204.3M, same-property adjusted NOI $180.2M, up 2.9%
  • Best performance: 2013 acquisitions, $10.2M NOI contribution; weakest: same-property portfolio, $180.2M NOI and 2.9% growth
  • Operating cash flow $147.8M, acquisitions $340.3M, capex $25.4M, dividends $129.4M
  • Outlook: 2014 capex $15.0M to $25.0M; risks from occupancy, rental rates, leasing costs and inflation

Risk Factors

  • Dodd-Frank Act derivatives and governance rules, potential increases in capital and compliance costs
  • Credit-market slowdown through December 31, 2014, threatening property values, leasing activity and tenant payments
  • Hospital and healthcare-system relationships, deterioration could restrict direct acquisition opportunities
  • Competition from larger healthcare REITs, including their lower cost of capital and operating efficiencies
  • $1.2B debt outstanding, including $539.9M variable-rate debt and $7.7M maturing in 2014

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