Healthcare Realty Trust Inc Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst : I just wanted to tie together a couple of pieces of the guidance. So you're talking about occupancy growth throughout the year. And yet for FFO standpoint, on a normalized FFO basis, you did $0.40 in the first quarter. The low end for the year is $1.60. You have -- really not much growth off the first quarter base. High-end has a little bit of modest growth. But just trying to understand what the offset would be. If occupancy is expected to improve sequentially, what's preventing the sequential FFO to be a little bit better?

Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. Just a follow-up, going back to the 5% to 7% potential FFO growth, next year, I wasn't -- I just wanted to be clear if there was any assumptions for acquisitions built into that and as well if there's any view you're taking on the SOFR curve impacting variable rate that's going to drive some level of growth next year as well?

Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst : Just along those same lines of questions, again, I guess I'm a little bit surprised that your cap rates are coming in that low on some transactions. . Any sense, just again, what an underwriter of such a deal must be assuming for those deals to kind of work, just given where cost of debt and cost of equity generally is in the market today? And would you expect that you could also contribute assets to any potential JVs at those type of cap rates?