Healthcare Realty Trust cuts dividend 23% to 24c per share

The board unanimously approved a common stock dividend in the amount of 24c per share to be paid on August 28 to Class A common stockholders of record on August 14. Additionally, the eligible holders of operating partnership units will receive a distribution of 24c per unit, equivalent to the company’s Class A common stock dividend. The right-sized dividend is a 23% reduction from the prior level and immediately reduces the FAD payout ratio to approximately 80%. The key drivers of the right-sized dividend are: mitigating refinancing risk on near-term bonds; achieving $100M of annual incremental retained earnings to fund significant return-on-capital investments in the existing portfolio and maximizing go-forward earnings potential.