Healthcare Realty Trust Incorporated (NYSE:HR) Q3 2023 Earnings Call Transcript

Rob Hull: Yes. I think if you look at if you kind of look at the pipeline in total I said $1.5 million at Investor Day it’s now $1.7 million. It does has been ebb and flow at those levels. It’s been pretty consistent this year. It’s up some from the first of the year. I would say that that’s when we put our processes and our leasing team in place we saw an uptick in the pipeline there. But I would say that really looking at the current levels and looking out over the course of the next year I view it as it’s about four quarters’ worth of activity. So it’s probably going to remain pretty consistent at those levels and is enough to continue to drive the levels of new leasing that we’ve seen. So, we’re very comfortable and optimistic with the level of the pipeline right now.

In terms of the conversion rate I think I threw out the percentages of hey, you’ve got about 20% of that that’s currently in the lease-out and documentation phase. That equates to about a little over 300,000 square feet. I would say that that’s probably a pretty continuous level of percentage of the portfolio. We do view those as highly, highly probable that they’ll all of that will convert. And so we’re generally looking at about 20% to 30% out of that total pipeline. So, I do think that out of the lease-out and LOI piece we generally find that we pull some of that forward as well and get it executed in the same quarter. So, some of that will feed the continuing new leasing pipeline or new leasing activity that we’ve targeted that’s about 400,000 to 450,000 square feet.

Regan Sweeney: Great. Thank you.

Operator: And we have no further questions in the queue at this time so I’d like to hand back to the management team for any closing remarks.

Todd Meredith: Thank you, Harry and thank you everybody for joining us today. I know today is a busy earnings day with other companies as well. We look forward to seeing a lot of you at NAREIT in a couple of weeks and we’ll be available otherwise. Have a great day. Thanks.

Operator: This concludes today’s conference call. Thank you all for joining. You may now disconnect your lines.