Healthcare Realty Trust Reports Normalized FFO Of $0.31 Per Share For The Fourth Quarter

NASHVILLE, Tenn., Feb. 20, 2013 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the fourth quarter ended December 31, 2012.  Normalized FFO for the three months ended December 31, 2012 totaled $0.31 per diluted common share.  Normalized FAD for the three months ended December 31, 2012 totaled $0.33 per diluted common share. 

Salient highlights include:

  • The year-over-year NOI for the same facility portfolio increased 3.8% in the fourth quarter.
  • Healthcare Realty's stabilizing properties ("SIP") were 60% leased at year-end 2012. 
  • NOI for the SIP properties reached approximately $1 million per quarter.
  • Since the beginning of the fourth quarter, the Company acquired five facilities for a total purchase price of $87.6 million.  The buildings total approximately 288,000 square feet and have an average occupancy rate of 98%. 
  • The per share results for the quarter were negatively affected by approximately $0.03 because of the 9.2 million shares issued at the end of the third quarter used primarily to fund the Mercy Health properties under construction.  This interim dilution will reverse to accretion as the properties are completed in the second half of 2013.
  • In January 2013, the Company sold 1.6 million shares of common stock under its at-the-market equity offering program ("ATM") for approximately $39.7 million in net proceeds used to fund recent acquisitions.
  • A dividend of $0.30 per share was declared for the fourth quarter of 2012, which is 90.9% of normalized FAD.

For the three months ended December 31, 2012, revenues grew by $1.7 million to $81.3 million, income from continuing operations totaled $0.4 million, and the Company recognized a net loss, including $7.7 million in impairment charges, totaling $6.4 million.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States.  The Company had investments of approximately $3.0 billion in 207 real estate properties and mortgages as of December 31, 2012.  The Company's 202 owned real estate properties are located in 28 states and total approximately 13.6 million square feet.  The Company provides property management services to approximately 10.1 million square feet nationwide.

The Company directs interested parties to its Internet site, www.healthcarerealty.com, where information is posted regarding this quarter's operations.  Please contact the Company at 615.269.8175 to request a printed copy of this information.

In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2012 under the heading "Risk  Factors," and as updated in its Quarterly Reports on Form 10-Q filed thereafter. Forward-looking statements represent the Company's judgment as of the date of this release.  The Company disclaims any obligation to update forward-looking statements.

 


HEALTHCARE REALTY TRUST INCORPORATED
Consolidated Balance Sheets (1)
(dollars in thousands, except for share data)
(Unaudited)

ASSETS




Real Estate Properties:

12/31/2012


12/31/2011

Land

$ 161,875


$ 162,843

Buildings, improvements, and lease intangibles

2,625,538


2,521,226

Personal property

19,100


18,221

Construction in progress

-


61,152

Land held for development

25,171


25,176

Total real estate properties 

2,831,684


2,788,618

Less accumulated depreciation

(586,725)


(516,747)

Total real estate properties, net

2,244,959


2,271,871

Cash and cash equivalents

6,776


4,738

Mortgage notes receivable

162,191


97,381

Assets held for sale and discontinued operations, net

3,337


28,650

Other assets, net

122,709


118,382

Total assets

$ 2,539,972


$ 2,521,022






LIABILITIES AND STOCKHOLDERS' EQUITY




Liabilities:




Notes and bonds payable

$ 1,293,044


$ 1,393,537

Accounts payable and accrued liabilities

65,678


72,217

Liabilities of discontinued operations

131


518

Other liabilities

60,175


49,944

Total liabilities

1,419,028


1,516,216

Commitments and contingencies




Stockholders' Equity:




Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding

-


-

Common stock, $.01 par value; 150,000,000 shares authorized; 87,514,336 and 77,843,883
shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively

875


779

Additional paid-in capital

2,100,297


1,894,604

Accumulated other comprehensive loss

(2,092)


(3,332)

Cumulative net income attributable to common stockholders

801,416


795,951

Cumulative dividends

(1,779,552)


(1,683,196)

Total stockholders' equity

1,120,944


1,004,806

Total liabilities and stockholders' equity

$ 2,539,972


$ 2,521,022











         (1)      The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles
                    generally accepted in the United States of America for complete financial statements.

 

 

HEALTHCARE REALTY TRUST INCORPORATED  
Consolidated Statements of Operations (1)  
(dollars in thousands, except for share data)  
(Unaudited)  


















 Three Months Ended  
           December 31, 
 


 Twelve Months Ended 
 December 31,

 






2012


2011


2012


2011

Revenues








Rental income



$ 77,207


$ 72,026


$ 301,055


$ 276,712

Mortgage interest 



2,611


1,723


9,186


6,973

Other operating 



1,442


1,510


6,109


7,907






81,260


75,259


316,350


291,592













Expenses








Property operating 

30,154


28,217


117,683


113,083

General and administrative



6,395


4,523


20,908


20,990

Depreciation



22,422


20,194


85,122


75,292

Amortization



2,923


2,465


10,510


8,198

Bad debt, net of recoveries


94


(169)


243


(250)






61,988


55,230


234,466


217,313













Other Income (Expense)








Loss on extinguishment of debt

-


-


-


(1,986)

Interest expense

(19,239)


(18,492)


(75,053)


(76,038)

Interest and other income, net

360


201


981


819






(18,879)


(18,291)


(74,072)


(77,205)













Income (Loss) From Continuing Operations

393


1,738


7,812


(2,926)













Discontinued Operations








Income (loss) from discontinued operations

(220)


535


1,757


2,404

Impairments

(7,712)


(4,999)


(14,908)


(6,697)

Gain on sales of real estate properties

1,177


5,642


10,874


7,035

Income (Loss) From Discontinued Operations

(6,755)


1,178


(2,277)


2,742













Net Income (Loss)



(6,362)


2,916


5,535


(184)

Less:  Net income attributable to noncontrolling interests

(29)


-


(70)


(30)













Net Income (Loss) Attributable to Common Stockholders 

$(6,391)


$ 2,916


$ 5,465


$ (214)













Basic Earnings (Loss) Per Common Share 









Income (loss) from continuing operations

$0.00


$ 0.02


$ 0.10


$ (0.04)

Discontinued operations 



(0.07)


0.02


(0.03)


0.04

Net income (loss) attributable to common stockholders

$(0.07)


$ 0.04


$ 0.07


$ 0.00













Diluted Earnings (Loss) Per Common Share








Income (loss) from continuing operations

$0.00


$ 0.02


$ 0.10


$ (0.04)

Discontinued operations 



(0.07)


0.02


(0.03)


0.04

Net income (loss) attributable to common stockholders

$(0.07)


$ 0.04


$ 0.07


$ 0.00













Weighted Average Common Shares Outstanding - Basic

85,725,611


76,404,709


78,844,840


72,720,147













Weighted Average Common Shares Outstanding - Diluted

87,049,034


77,474,951


80,127,883


72,720,147













(1)

 

The Consolidated Statements of Operations do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

 

HEALTHCARE REALTY TRUST INCORPORATED
Reconciliation of Funds from Operations(1) (2)
(dollars in thousands, except per share data)
(Unaudited)
















Three Months Ended 
December 31, 2012 


Three Months Ended
December 31, 2011








Net Income (Loss) Attributable to Common Stockholders

$ (6,391)


$ 2,916


Gain on sales of real estate properties


(1,177)


(5,642)


Impairments


7,712


4,999


Real estate depreciation and amortization

24,932


23,062


Total adjustments


31,467


22,419








Funds From Operations


$ 25,076


$ 25,335









Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition

1,100


-


Acquisition costs


385


199


Write off of deferred financing costs upon renewal of line of credit facility

-


393








Normalized Funds From Operations


$ 26,561


$ 25,927

Funds From Operations Per Common Share - Diluted

$ 0.29


$ 0.33

Normalized Funds From Operations Per Common Share - Diluted

$ 0.31


$ 0.33

Weighted Average Common Shares Outstanding - Diluted

87,049,034


77,474,951
















Reconciliation of Funds Available for Distribution(2)
(Dollars in thousands, except per share data)
(Unaudited)














Three Months Ended
December 31, 2012 


Three Months Ended
December 31, 2011








Net Income (Loss) Attributable to Common Stockholders

$ (6,391)


$ 2,916


Gain on sales of real estate properties


(1,177)


(5,642)


Impairments


7,712


4,999


Depreciation and amortization - real estate

24,932


23,062


Depreciation and amortization - other


1,579


1,942


Provision for bad debt, net 


93


(95)


Straight-line rent receivable


(1,087)


(1,137)


Straight-line rent liability


106


119


Stock-based compensation


904


650


Provision for deferred post-retirement benefits

266


461


Total non-cash items included in cash flows from operating activities 

33,328


24,359








Funds Available For Distribution


$ 26,937


$ 27,275









Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition

1,100


-


Acquisition costs


385


199








Normalized Funds Available For Distribution

$ 28,422


$ 27,474

Funds Available For Distribution Per Common Share - Diluted

$ 0.31


$ 0.35

Normalized Funds Available For Distribution Per Common Share - Diluted

$ 0.33


$ 0.35

Weighted Average Common Shares Outstanding - Diluted

87,049,034


77,474,951















(1)

Funds from operations ("FFO") and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). 


NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to "net income (computed in accordance with GAAP), excluding 


gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures."  

(2)

FFO and Funds Available For Distribution ("FAD") do not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in 


the United States of America and are not necessarily indicative of cash available to fund cash needs.  FFO and FAD  should not be considered alternatives to net income attributable to 


common stockholders as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity.

 

SOURCE Healthcare Realty Trust Incorporated



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