Healthcare Realty Trust Inc
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
HR$19.20+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001360604-25-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001360604-25-000096
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 175 previous paragraphs and 234 current paragraphs.
110 unchanged; 50 reworded; 60 added; 14 removed; 1 previous and 14 current paragraphs rearranged.
Tables are not compared: 8 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (60)
Current report
Subsequent to June 30, 2025, the Company disposed of the following properties:
Current report
•$15.4 million toward building capital.
Current report
On July 25, 2025, the Company entered into the Fifth Amended and Restated Revolving Credit and Term Loan Agreement (the “New Credit Facility”) with Wells Fargo Bank, National Association, as Administrative Agent; Wells Fargo Securities, LLC and JPMorgan Chase Bank, N.A. as Joint Book Runners; Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., PNC Capital Markets LLC, U.S. Bank National Association, The Bank of Nova Scotia, and BofA Securities, Inc., as Joint Lead Arrangers; and the other lenders named therein. The New Credit Facility provides for (i) a $1.5 billion unsecured revolving credit facility (the “Revolver”) and (ii) five individual unsecured term loan tranches totaling $1.115 billion. The OP is the borrower under the New Credit Facility (in such capacity, the “Borrower”). A summary of the principal terms of the New Credit Facility and the New Credit Facility's effect on the Company's existing revolving credit term loan facilities is as follows:
Current report
•The New Credit Facility replaces the Unsecured Credit Facility. All outstanding obligations due under the Unsecured Credit Facility were reallocated to the lenders under the New Credit Facility.
Current report
•The Company’s $1.5 billion Revolver was continued with a maturity extension from October 31, 2025 to July 25, 2029, with two six-month extension options. The Revolver includes a sublimit of $120 million for letters of credit.
Current report
•The previously funded $175 million term loan was continued with a maturity date of January 31, 2026 and three extension options totaling 16 months.
Current report
•The previously funded $150 million term loan was continued with a maturity date of June 1, 2026, with two extension options of six months each.
Current report
•The previously funded $290 million term loan was continued with a maturity date of October 31, 2025, with four extension options totaling 24 months.
Current report
•The previously funded $200 million term loan was continued with a maturity date of July 20, 2027, with two extension options of 12 months each.
Current report
•The previously funded $300 million term loan was continued with a maturity date of January 20, 2028, with one extension option of 12 months.
Current report
Revolving loans outstanding under the New Credit Facility bear interest at a floating rate equal to the daily simple Secured Overnight Financing Rate ("SOFR"), term SOFR or base rates, as applicable, plus an applicable margin. The applicable margin is determined based on the Borrower’s credit ratings and ranges from 0.725% per annum to 1.40% per annum (currently 0.85% per annum). Term loans outstanding under the New Credit Facility bear interest at a rate equal to Term SOFR rates plus an applicable margin. The applicable margin is determined based on the Borrower’s credit ratings and ranges from 0.80% per annum to 1.60% per annum (currently 0.95% per annum). In addition, the Borrower pays a facility fee on the Revolver commitments at a rate per annum determined based on the Borrower’s credit ratings and ranging from 0.125% per annum to 0.30% per annum (currently 0.20% per annum).
Current report
Except as set forth above, the principal terms of the New Credit Facility are substantially consistent with the terms of the Unsecured Credit Facility. Specifically, the New Credit Facility contains representations and warranties and affirmative and negative covenants that are customary for facilities of this size and type. These covenants include, among others: limitations on the incurrence of additional indebtedness; limitations on mergers, investments and acquisitions; limitations on dividends and redemptions of capital stock; limitations on transactions with affiliates; and requirements to comply with certain financial covenants, including a maximum consolidated leverage ratio, a maximum consolidated secured leverage ratio, a maximum consolidated unencumbered leverage ratio, a minimum fixed charge coverage ratio and a minimum unsecured coverage ratio.
Current report
2 For the six months ended June 30, 2025, represents a$1.5 million credit loss reserve on a mortgage note receivable and a $1.9 million loss on other assets included in "Impairment of real estate properties and credit loss reserves" on the Statement of Operations. For the three and six months ended June 30, 2024, includes a $4.9 million gain on sale of corporate assets included in "Gains on sales of real estate and other assets" on the Statement of Operations, a $2.2 million straight line rent reversed included in "Rental income" on the Statement of Operations, and a $11.2 million credit loss reserve on a note receivable included in "Impairment of real estate properties and credit loss reserves" on the Statement of Operations.
Current report
•Dispositions in 2024 and 2025 resulted in a decrease of $36.3 million.
Current report
Property operating expenses decreased $7.8 million, or 6.6%, for the three months ended June 30, 2025, compared to the prior year period primarily as a result of the following activity:
Current report
•Dispositions in 2024 and 2025 resulted in a decrease of $12.7 million.
Current report
◦Utilities expense of $1.4 million;
Current report
◦Compensation expense of $1.2 million; and
Current report
◦Janitorial expense of $0.6 million.
Current report
•Developments completed in 2024 resulted in an increase of $0.4 million.
Current report
•Increases in the following expenses:
Current report
◦Cash incentive compensation expense of $1.1 million; and
Current report
◦Non-cash incentive compensation expense of 0.5 million.
Current report
Depreciation and amortization expense decreased $25.7 million, or 14.8%, for the three months ended June 30, 2025, compared to the prior year period primarily as a result of the following activity:
Current report
•Dispositions in 2024 and 2025 resulted in a decrease of $17.3 million.
Current report
Contractual interest expense decreased $6.7 million, or 13.1%, for the three months ended June 30, 2025, compared to the prior year period primarily as a result of the following activity:
Current report
•The redemption of the Senior Notes due 2025 accounted for a decrease of $1.6 million.
Current report
•Active interest rate swaps accounted for an increase of $2.7 million.
Current report
In the second quarter of 2025, the Company recognized impairments totaling $15.0 million on two properties sold and $125.9 million on thirteen properties with changes in the expected holding periods. In addition, the Company recorded a $1.5 million credit loss reserve related to one of its mortgage notes receivables. In the second quarter of 2024, the Company recognized impairments totaling $10.2 million on 15 properties sold and $110.7 million on 17 properties with changes in the expected holding periods. In addition, the Company recorded a $11.2 million credit loss reserve to one of its mortgage note receivables.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Revenues
Current report
•Dispositions in 2024 and 2025 resulted in a decrease of $75.2 million.
Current report
•Leasing activity, including contractual rent increases, resulted in an increase of $21.3 million.
Current report
•Developments completed in 2024 resulted in an increase of $3.6 million.
Current report
Expenses
Current report
Property operating expenses decreased $13.9 million, or 5.8%, for the six months ended June 30, 2025 compared to the prior year period primarily as a result of the following activity:
Current report
•Dispositions in 2024 and 2025 resulted in a decrease of $26.4 million.
Current report
◦Administrative, leasing commissions, and other legal expense of $2.7 million;
Current report
◦Compensation expense of $2.5 million
Current report
◦Utilities expense of $2.2 million;
Showing the first 40 of 60 passages. Open the source sections for the rest.
Removed paragraphs (14)
Previous report
•$6.6 million toward building capital.
Previous report
Subsequent Debt Activity
Previous report
2 For the three months ended March 31, 2024, basic weighted average common shares outstanding was the denominator used in the per share calculation.
Previous report
•Dispositions in 2024 and 2025 resulted in a decrease of $38.7 million.
Previous report
Property operating expenses decreased $6.1 million, or 5.1%, for the three months ended March 31, 2025, compared to the prior year period primarily as a result of the following activity:
Previous report
•Dispositions in 2024 and 2025 resulted in a decrease of $13.7 million.
Previous report
◦Property taxes of $1.4 million;
Previous report
◦Compensation expense of $1.3 million;
Previous report
◦Utilities expense of $0.7 million; and
Previous report
◦Janitorial expense of $0.2 million
Previous report
◦Travel expenses of $0.5 million;
Previous report
Depreciation and amortization expense decreased $27.2 million, or 15.2%, for the three months ended March 31, 2025, compared to the prior year period primarily as a result of the following activity:
Previous report
•Dispositions in 2024 and 2025 resulted in a decrease of $19.9 million.
Previous report
Contractual interest expense decreased $6.6 million, or 13.3%, for the three months ended March 31, 2025, compared to the prior year period primarily as a result of the following activity:
Reworded paragraphs (50)
Previous wording
•Trends in the healthcare service industry may negatively affect the demand for the Company’s properties, lease revenues and the values of its investments;
Current wording
•Trends in the healthcare service industry, including the recent passage of the One Big Beautiful Bill Act which is the subject of ongoing analysis, may negatively affect the demand for the Company’s properties, lease revenues and the values of its investments;
Previous wording
The Company’s primary sources of cash include rent receipts from its real estate portfolio based on contractual arrangements with its tenants, proceeds from the sales of real estate properties, joint ventures, and proceeds from public or private debt or equity offerings. As of March 31, 2025, the Company had$1.4 billion available to be drawn on its unsecured credit facility ("Unsecured Credit Facility") and available cash.
Current wording
The Company’s primary sources of cash include rent receipts from its real estate portfolio based on contractual arrangements with its tenants, proceeds from the sales of real estate properties, joint ventures, and proceeds from public or private debt or equity offerings. As of June 30, 2025, the Company had $1.2 billion available to be drawn on its unsecured credit facility ("Unsecured Credit Facility") and available cash. On July 25, 2025, the Company entered into the Fifth Amended and Restated Credit Facility which extended the maturity of its revolver to July 2029.
Previous wording
Dividends paid by the Company for the three months ended March 31, 2025 were funded from cash flows from operations and the Unsecured Credit Facility, as cash flows from operations were not adequate to fully fund dividends, primarily as a result of the timing of interest payments. The Company expects that cash flows from operations will generate sufficient cash flows during 2025 such that dividends for the full year 2025 can be funded by cash flows from operations or other sources of liquidity described above.
Current wording
Dividends paid by the Company for the six months ended June 30, 2025 were funded from cash flows from operations and the Unsecured Credit Facility, as cash flows from operations were not adequate to fully fund dividends, primarily as a result of the timing of interest payments. The Company expects that cash flows from operations will generate sufficient cash flows during 2025 such that dividends for the full year 2025 can be funded by cash flows from operations or other sources of liquidity described above.
Previous wording
Cash flows used in investing activities for the three months ended March 31, 2025, were approximately $38.8 million. Below is a summary of the investing activities.
Current wording
Cash flows used in investing activities for the six months ended June 30, 2025, were approximately $41.9 million. Below is a summary of the investing activities.
Previous wording
The Company disposed of four properties during the three months ended March 31, 2025 for a total sales price of $28.1 million, generating net proceeds of $16.4 million after seller financing and closing credits. The following table details these dispositions for the three months ended March 31, 2025:
Current wording
The Company disposed of eight medical outpatient properties and two land parcels during the six months ended June 30, 2025 for a total sales price of $81.2 million, generating net proceeds of $66.8 million after seller financing and closing credits. The following table details these dispositions for the six months ended June 30, 2025:
Previous wording
During the three months ended March 31, 2025, the Company incurred capital costs totaling $67.9 million for the following:
Current wording
During the six months ended June 30, 2025, the Company incurred capital costs totaling $158.4 million for the following:
Previous wording
•$33.4 million toward development and redevelopment of properties;
Current wording
•$75.4 million toward development and redevelopment of properties;
Previous wording
•$13.2 million toward first generation tenant improvements and planned capital expenditures for acquisitions;
Current wording
•$40.8 million toward first generation tenant improvements and planned capital expenditures for acquisitions;
Previous wording
•$14.7 million toward second generation tenant improvements; and
Current wording
•$26.8 million toward second generation tenant improvements; and
Previous wording
In January 2025, the Company received $14.9 million as payment towards the principal balance of its mortgage loan maturing on December 2, 2024.
Current wording
In January 2025, the Company received $14.9 million as payment towards the principal balance of its mortgage loan that matured on December 2, 2024.
Previous wording
In March 2025, the Company executed a mezzanine loan receivable agreement with a maximum loan commitment of $8.5 million. As of March 31, 2025, no amount was funded under this agreement.
Current wording
In March 2025, the Company executed a mezzanine loan receivable agreement with a maximum loan commitment of $8.5 million. As of June 30, 2025, the Company had funded $2.8 million under this agreement.
Previous wording
See Note 1 to the Condensed Consolidated Financial Statements accompanying this report for more information about real estate notes receivable and allowance for credit losses.
Current wording
See Note 1 to the Condensed Consolidated Financial Statements in this report for more information about real estate notes receivable and allowance for credit losses.
Previous wording
Cash flows used in financing activities for the three months ended March 31, 2025 were approximately $52.1 million. See Notes 4 and 7 to the Condensed Consolidated Financial Statements accompanying this report for more information about capital markets and financing activities.
Current wording
Cash flows used in financing activities for the six months ended June 30, 2025 were approximately $212.3 million. See Notes 4 and 7 to the Condensed Consolidated Financial Statements in this report for more information about capital markets and financing activities.
Previous wording
As of March 31, 2025, the Company had outstanding interest rate derivatives totaling $1.1 billion to hedge the one-month term Secured Overnight Financing Rate ("SOFR"). The following table details the amount and rate of each swap (dollars in thousands):
Current wording
As of June 30, 2025, the Company had outstanding interest rate swaps totaling $1.1 billion to hedge the one-month term Secured Overnight Financing Rate ("SOFR"). The following table details the amount and rate of each swap (dollars in thousands):
Previous wording
During the first quarter of 2025, the Company repaid$25.0 million of the $200 million Unsecured Term Loan due May 2025 and$10.0 million of the $300 million Unsecured Term Loan.
Current wording
During the first quarter of 2025, the Company repaid$25.0 million of the $200 million Unsecured Term Loan due May 2025 and$10.0 million of the $300 million Unsecured Term Loan due October 2025.
Previous wording
On April 8, 2025, the Company exercised its second of two options to extend the maturity date of the $200 million Unsecured Term Loan due May 2025 to January 2026 for a fee of approximately $0.1 million. The existing $200 million term loan facility was amended to include a four-month extension option, resulting in a latest final maturity in May 2026.
Current wording
On April 8, 2025, the Company exercised its second of two options to extend the maturity date of the $200 million Unsecured Term Loan due May 2025 to January 2026 for a fee of approximately $0.1 million. The existing $200 million term loan facility was also amended to include a four-month extension option, which would extend the final maturity to May 2026.
Previous wording
The OP has issued unsecured notes described in Note 4 to the Company's Condensed Consolidated Financial Statements included in this report. All unsecured notes are fully and unconditionally guaranteed by the Company, and the OP is 98.7% owned by the Company. Effective January 4, 2021, the Securities and Exchange Commission (the “SEC”) adopted amendments to the financial disclosure requirements which permit subsidiary issuers of obligations guaranteed by the parent to omit separate financial statements if the consolidated financial statements of the parent company have been filed, the subsidiary obligor is a consolidated subsidiary of the parent company, the guaranteed security is debt or debt-like, and the security is guaranteed fully and unconditionally by the parent.
Current wording
The OP has issued unsecured notes described in Note 4 to the Company's Condensed Consolidated Financial Statements included in this report. All unsecured notes are fully and unconditionally guaranteed by the Company, and the OP is 98.6% owned by the Company. Effective January 4, 2021, the Securities and Exchange Commission (the “SEC”) adopted amendments to the financial disclosure requirements which permit subsidiary issuers of obligations guaranteed by the parent to omit separate financial statements if the consolidated financial statements of the parent company have been filed, the subsidiary obligor is a consolidated subsidiary of the parent company, the guaranteed security is debt or debt-like, and the security is guaranteed fully and unconditionally by the parent.
Previous wording
Cash flows provided by operating activities decreased from $76.2 million for the three months ended March 31, 2024 to $47.8 million for the three months ended March 31, 2025. Items impacting cash flows from operations include, but are not limited to, cash generated from property operations, interest payments and the timing of the payment of invoices and other expenses.
Current wording
Cash flows provided by operating activities decreased from $244.3 million for the six months ended June 30, 2024 to $211.0 million for the six months ended June 30, 2025. Items impacting cash flows from operations include, but are not limited to, cash generated from property operations, interest payments and the timing of the payment of invoices and other expenses.
Previous wording
The Company expects that approximately 15% of its leases will expire each year in the ordinary course of business. There are 1,072 multi-tenant and single-tenant leases totaling 3.9 million square feet that will expire during the remainder of 2025. Approximately 74.2% of the leases expiring during the remainder of 2025 are for space in buildings located on or adjacent to hospital campuses, are distributed throughout the portfolio, and are not concentrated with any one tenant, health system or market area. The Company typically expects to retain 75% to 90% of tenants upon expiration, and the retention ratio for the first three months of the year was within this range.
Current wording
The Company expects that approximately 15% of its leases will expire each year in the ordinary course of business. There are 722 multi-tenant and single-tenant leases totaling 2.5 million square feet that will expire during the remainder of 2025. Approximately 70.2% of the leases expiring during the remainder of 2025 are for space in buildings located on or adjacent to hospital campuses, are distributed throughout the portfolio, and are not concentrated with any one tenant, health system or market area. The Company typically expects to retain 75% to 90% of tenants upon expiration, and the retention ratio for the first six months of the year was within this range.
Previous wording
On January 11, 2025, Prospect Medical Holdings (“Prospect”) filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. Prospect leases approximately 80,912 square feet of space from the Company, accounting for approximately $2.9 million of annual revenue. The Company moved to cash basis accounting for these leases and recorded a reserve of $0.7 million in the fourth quarter of 2024. While it is early in the bankruptcy proceedings and the Company is in discussions with Prospect regarding its leases with the Company, there can be no assurance that the Company will recover unpaid rent from Prospect. Through March 2025, the Company received rent payments of approximately $0.7 million. Additionally, the Company received payment of approximately $0.3 million for April rent.
Current wording
On January 11, 2025, Prospect Medical Holdings (“Prospect”) filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. Prospect leases approximately 80,912 square feet of space from the Company, accounting for approximately $2.9 million of annual revenue. The Company moved to cash basis accounting for these leases and recorded a reserve of $0.7 million in the fourth quarter of 2024. While it is early in the bankruptcy proceedings and the Company is in discussions with Prospect regarding its leases with the Company, there can be no assurance that the Company will recover unpaid rent from Prospect. During the six months ended June 30, 2025, the Company received rent payments of approximately $1.6 million.
Previous wording
The Company historically has experienced increases in property taxes throughout its portfolio as a result of increasing assessments and tax rates levied across the country. The Company continues its efforts to appeal property tax increases and manage the impact of the increases. In addition, the Company historically has incurred variability in portfolio utilities expenses based on seasonality, with the first and third quarters usually reflecting greater amounts. The effects of these operating expense increases are mitigated in leases that have provisions for operating expense reimbursement. As of March 31, 2025, leases for approximately 91% of the Company's total leased square footage allow for some recovery of operating expenses, with approximately 28% having modified gross lease structures and approximately 63% having net lease structures.
Current wording
The Company historically has experienced increases in property taxes throughout its portfolio as a result of increasing assessments and tax rates levied across the country. The Company continues its efforts to appeal property tax increases and manage the impact of the increases. In addition, the Company historically has incurred variability in portfolio utilities expenses based on seasonality, with the first and third quarters usually reflecting greater amounts. The effects of these operating expense increases are mitigated in leases that have provisions for operating expense reimbursement. As of June 30, 2025, leases for approximately 92% of the Company's total leased square footage allow for some recovery of operating expenses, with approximately 29% having modified gross lease structures and approximately 63% having net lease structures.
Previous wording
1 Includes three properties totaling $45.4 million with stated purchase prices or prices based on fixed capitalization rates.
Current wording
1 Includes three properties totaling $51.8 million with stated purchase prices or prices based on fixed capitalization rates.
Previous wording
2 These purchase options have been exercisable for an average of 17.9 years.
Current wording
2 These purchase options have been exercisable for an average of 18.1 years.
Previous wording
The table below reconciles net income to FFO, Normalized FFO and FAD for the three months ended March 31, 2025, and 2024:
Current wording
The table below reconciles net income to FFO, Normalized FFO and FAD for the three and six months ended June 30, 2025, and 2024:
Previous wording
4 Includes the Company's proportionate share of lease intangible amortization related to unconsolidated joint ventures.
Current wording
3 Includes the Company's proportionate share of lease intangible amortization related to unconsolidated joint ventures.
Previous wording
5 Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.
Current wording
4 Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.
Previous wording
6 Includes the Company's proportionate share of straight-line rent, net related to unconsolidated joint ventures.
Current wording
5 Includes the Company's proportionate share of straight-line rent, net related to unconsolidated joint ventures.
Previous wording
7 The Company utilizes the treasury stock method which includes the dilutive effect of nonvested share-based awards outstanding of 317,511 and 254,261, respectively, for the three months ended March 31, 2025 and 2024, and the dilutive impact of 3,665,625 OP units outstanding for the three months ended March 31, 2025.
Current wording
6 The Company utilizes the treasury stock method which includes the dilutive effect of nonvested share-based awards outstanding of 287,797 and 420,687, respectively, for the three months ended June 30, 2025 and 2024, and the dilutive impact of 4,161,628 and 3,914,997 OP Units outstanding for the three and six months ended June 30, 2025, respectively.
Previous wording
The following table reflects the Company's Same Store Cash NOI for the three months ended March 31, 2025 and 2024:
Current wording
The following table reflects the Company's Same Store Cash NOI for the six months ended June 30, 2025 and 2024:
Previous wording
The following tables reconcile net loss to Same Store NOI and the same store property metrics to the total owned real estate portfolio for the three months ended March 31, 2025 and 2024:
Current wording
The following tables reconcile net loss to Same Store NOI and the same store property metrics to the total owned real estate portfolio for the six months ended June 30, 2025 and 2024:
Previous wording
Rental income decreased $29.2 million, or 9.2%, for the three months ended March 31, 2025, compared to the prior year period. This decrease is primarily comprised of the following:
Current wording
Rental income decreased $21.1 million, or 6.8%, for the three months ended June 30, 2025, compared to the prior year period. This decrease is primarily comprised of the following:
Previous wording
•Leasing activity resulted in an increase of $7.7 million.
Current wording
•Leasing activity resulted in an increase of $13.4 million.
Previous wording
Other operating income increased $2.2 million, or 52.4%, for the three months ended March 31, 2025, compared to the prior year period primarily as a result of income from management fees related to unconsolidated joint ventures.
Current wording
Other operating income increased $2.7 million, or 61.6%, for the three months ended June 30, 2025, compared to the prior year period primarily as a result of income from management fees related to unconsolidated joint ventures.
Previous wording
◦Leasing commissions and other administrative and legal expenses of $1.5 million;
Current wording
◦Leasing commissions and other administrative and legal expenses of $1.3 million;
Previous wording
General and administrative expenses decreased approximately $1.3 million, or 8.5%, for the three months ended March 31, 2025, compared to the prior year period primarily as a result of the following activity:
Current wording
General and administrative expenses increased approximately $9.5 million, or 67.7%, for the three months ended June 30, 2025, compared to the prior year period primarily as a result of the following activity:
Previous wording
◦Non-cash compensation incentive expense of $0.5 million;
Current wording
◦Cash compensation expense of $0.5 million;
Previous wording
◦Cash incentive compensation expense of $0.3 million; and
Current wording
◦Travel expenses of $0.3 million; and
Previous wording
◦Other decreases including legal and other administrative costs of $0.5 million.
Current wording
◦Other decreases include legal and other administrative costs of $1.6 million.
Previous wording
•Increases related to restructuring and severance-related charges of $0.5 million.
Current wording
◦Restructuring and severance-related charges of $10.3 million;
Previous wording
•Assets that became fully depreciated resulted in a decrease of $15.2 million.
Current wording
•Assets that became fully depreciated resulted in a decrease of $17.2 million.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
1 Includes two medical outpatient properties.
Current report — wording carried from elsewhere
The Company’s results of operations for the six months ended June 30, 2025 compared to the same period in 2024 were impacted by developments, dispositions, gains on sale, and capital markets transactions.
Current report — wording carried from elsewhere
Rental income decreased $50.3 million, or 8.0%, for the six months ended June 30, 2025 compared to the prior year period. This decrease is primarily comprised of the following:
Current report — wording carried from elsewhere
Other operating income increased $4.9 million, or 57.1%, for the six months ended June 30, 2025, compared to the prior year period primarily as a result of income from management fees related to unconsolidated joint ventures.
Current report — wording carried from elsewhere
•Increases in portfolio operating expenses as follows:
Current report — wording carried from elsewhere
•Increase in restructuring and severance-related charges of $10.8 million.
Current report — wording carried from elsewhere
•Assets that became fully depreciated resulted in a decrease of $32.1 million.
Current report — wording carried from elsewhere
•Various building and tenant improvement expenditures resulted in an increase of $15.4 million.
Current report — wording carried from elsewhere
Gains on sale of real estate properties and other assets
Current report — wording carried from elsewhere
Interest expense decreased $15.4 million, or 12.4%, for the six months ended June 30, 2025 compared to the prior year period. The components of interest expense are as follows:
Current report — wording carried from elsewhere
•The unsecured term loans accounted for a decrease of approximately $6.9 million.
Current report — wording carried from elsewhere
•Mortgage note repayments, net of assumptions, accounted for a decrease of approximately $0.2 million.
Current report — wording carried from elsewhere
Equity loss from unconsolidated joint ventures
Current report — wording carried from elsewhere
The Company recognized its proportionate share of losses from its unconsolidated joint ventures. These losses are primarily attributable to non-cash depreciation expense. See Note 2 to the Condensed Consolidated Financial Statements in this report for more details regarding the Company's unconsolidated joint ventures.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Developments completed in 2024 resulted in an increase of $0.5 million.