NASHVILLE - Healthcare Realty Trust Incorporated (NYSE: NYSE:HR), a real estate investment trust specializing in medical outpatient buildings, announced today that Todd Meredith (NYSE:MDP) has resigned as President and CEO and from the company's Board of Directors. Constance "Connie" Moore has been appointed as interim President and CEO with immediate effect.
Moore, who has been serving on the Healthcare Realty board and is the former President and CEO of BRE Properties, Inc., steps into the leadership role as the company embarks on a search for a permanent successor. The board expressed its gratitude to Meredith for his 23 years of service, including eight as President and CEO.
Knox Singleton, the Chairman of the Board, acknowledged Meredith's contributions and wished him well in future endeavors. He also emphasized the board's confidence in the company's strategic direction and the management team's capabilities.
The board has formed a committee to oversee the search for a new President and CEO and plans to hire a leading executive search firm to assist in the process. In a related move, the board has reduced its size from 12 to 11 members.
Healthcare Realty Trust, which claims to be the first and largest REIT to focus on medical outpatient buildings, owns and operates nearly 675 properties, totaling approximately 40 million square feet, concentrated in 15 growth markets.
This leadership change comes as the company continues to focus on property acquisition and development to grow its portfolio, aiming to drive long-term shareholder value. The information in this article is based on a press release statement from Healthcare Realty Trust.
In other recent news, Healthcare Realty Trust Inc. has reported a steady 1.2% year-over-year growth in its third-quarter normalized Funds From Operations (FFO) per share. The company's CEO, Todd Meredith, emphasized the signing of over 400,000 square feet of new leases for the fifth consecutive quarter and a 3.1% growth in same-store Net Operating Income (NOI). Interim CFO Austen Helfrich provided an optimistic financial outlook, forecasting NOI growth and a reduction in net debt to adjusted EBITDA ratio. Despite challenges posed by the Steward bankruptcy, the company has secured new tenants to mitigate the impact on annual NOI.
The company repurchased nearly $450 million in shares year-to-date, targeting high long-term risk-adjusted returns. Healthcare Realty has secured new tenants for $17 million of the $27 million annual NOI exposure due to the Steward bankruptcy. Guidance for normalized FFO per share for 2024 has been narrowed to $1.55 to $1.56.
These recent developments indicate that Healthcare Realty is demonstrating resilience in the face of market challenges and taking a strategic approach to growth and capital allocation. The company's focus on leasing and operational efficiency, along with its optimistic view of the medical outpatient market, positions it favorably for future performance.
InvestingPro Insights
As Healthcare Realty Trust navigates this leadership transition, InvestingPro data provides additional context to the company's current financial position. Despite the recent change at the helm, the company maintains a significant dividend yield of 7.07%, which could be attractive to income-focused investors in the REIT sector.
InvestingPro Tips highlight that Healthcare Realty Trust has maintained dividend payments for 32 consecutive years, demonstrating a long-term commitment to shareholder returns. This consistency may provide some reassurance to investors during the leadership change.
However, the company faces challenges. An InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, which aligns with the reported revenue growth of -4.62% over the last twelve months. This decline may be a factor the incoming CEO will need to address.
On a positive note, the stock is trading near its 52-week high, with a one-year price total return of 33.58%. This performance suggests that investors have maintained confidence in the company's prospects despite the anticipated revenue challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips that could provide deeper insights into Healthcare Realty Trust's financial health and market position.
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