Healthcare Realty Trust Reports Normalized FFO Of $0.32 Per Share For The First Quarter

NASHVILLE, Tenn., May 1, 2013 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the first quarter ended March 31, 2013.  Normalized FFO for the three months ended March 31, 2013 totaled $0.32 per diluted common share.  Normalized FAD for the three months ended March 31, 2013 totaled $0.34 per diluted common share. 

Salient highlights include:

  • Year-over-year NOI for the same-store portfolio increased 2.5% in the first quarter.
  • The Company renewed 72 leases in its same-store portfolio totaling 270,168 square feet, with a retention rate of 84.2%.
  • The twelve stabilizing properties ("SIP") were 65% leased at the end of the first quarter, with occupancy increasing to 45%.   
  • NOI for the SIP properties reached approximately $1.3 million per quarter.
  • Since the beginning of the first quarter, the Company acquired two facilities for a total purchase price of $32.5 million.  The buildings total approximately 95,000 square feet and are both 100% occupied. 
  • The Company raised $39.7 million in the first quarter through its at-the-market equity program to fund recent acquisitions.
  • The Company issued $250 million of unsecured senior notes due in April 2023 with a coupon rate of 3.75%.  In conjunction with the issuance of these notes, the Company redeemed its 5.125% 2014 unsecured senior notes in April 2013.
  • The Company extended the maturity date to April 2017 and lowered its borrowing cost under its unsecured $700 million revolving credit facility.
  • A dividend of $0.30 per share was declared for the first quarter of 2013, which is 88.2% of normalized FAD.

For the three months ended March 31, 2013, year-over-year revenues grew by $6.4 million to $82.6 million, income from continuing operations totaled $2.1 million, and the Company recognized a net loss, including $3.6 million in impairment charges, totaling $1.0 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 205 real estate properties and mortgages as of March 31, 2013.  The Company's 200 owned real estate properties are located in 28 states and total approximately 13.5 million square feet.  The Company provides property management services to approximately 10.1 million square feet nationwide.

Additional information regarding the Company, including this quarter's operations, can be found at  www.healthcarerealty.com.  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

Condensed Consolidated Balance Sheets (1)

(amounts in thousands, except for share data)

(Unaudited)

ASSETS





Real Estate Properties:


3/31/2013



12/31/2012


Land


$164,649



$161,875


Buildings, improvements and lease intangibles


2,613,069



2,625,538


Personal property


19,208



19,100


Land held for development


17,054



25,171


Total real estate properties


2,813,980



2,831,684


Less accumulated depreciation


(597,434)



(586,725)


Total real estate properties, net


2,216,546



2,244,959


Cash and cash equivalents


94,171



6,776


Mortgage notes receivable


190,134



162,191


Assets held for sale and discontinued operations, net


22,297



3,337


Other assets, net


132,102



122,709


Total assets


$2,655,250



$2,539,972







LIABILITIES AND EQUITY





Liabilities:





Notes and bonds payable


$1,415,119



$1,293,044


Accounts payable and accrued liabilities


45,534



65,678


Liabilities of discontinued operations


86



131


Other liabilities


57,895



60,175


Total liabilities


1,518,634



1,419,028


Commitments and contingencies





Equity:





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





Common stock, $.01 par value; 150,000 shares authorized; 89,217 and 87,514 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively


892



875


Additional paid-in capital


2,142,346



2,100,297


Accumulated other comprehensive loss


(2,092)



(2,092)


Cumulative net income attributable to common stockholders


800,417



801,416


Cumulative dividends


(1,806,298)



(1,779,552)


Total stockholders' equity


1,135,265



1,120,944


Noncontrolling interests


1,351




Total equity


1,136,616



1,120,944


Total liabilities and equity


$2,655,250



$2,539,972


(1)     The Condensed 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

Condensed Consolidated Statements of Operations (1)

(amounts in thousands, except for share data)

(Unaudited)




Three Months Ended

March 31,




2013



2012


Revenues






Rental income


$78,191



$72,099


Mortgage interest


2,937



2,292


Other operating


1,456



1,774




82,584



76,165


Expenses






Property operating


29,826



28,285


General and administrative


6,541



5,261


Depreciation


21,852



20,479


Amortization


2,689



2,522


Bad debt, net of recoveries


(12)



(41)




60,896



56,506


Other Income (Expense)






Interest expense


(19,795)



(18,379)


Interest and other income, net


232



216




(19,563)



(18,163)








Income From Continuing Operations


2,125



1,496








Discontinued Operations






Income from discontinued operations


487



2,380


Impairments


(3,630)



(4,170)


Gain on sales of real estate properties




3,428


Income (Loss) From Discontinued Operations


(3,143)



1,638








Net Income (Loss)


(1,018)



3,134


Less: Net loss attributable to noncontrolling interests


19




Net Income (Loss) Attributable To Common Stockholders


($999)



$3,134


Basic Earnings (Loss) Per Common Share:






Income from continuing operations


$0.02



$0.02


Discontinued operations


(0.03)



0.02


Net income (loss) attributable to common stockholders


($0.01)



$0.04


Diluted Earnings (Loss) Per Common Share:






Income from continuing operations


$0.02



$0.02


Discontinued operations


(0.03)



0.02


Net income (loss) attributable to common stockholders


($0.01)



$0.04


Weighted Average Common Shares Outstanding—Basic


86,894



76,427


Weighted Average Common Shares Outstanding—Diluted


88,382



77,641


(1)     The Condensed 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 FFO and Normalized FFO (1) (2)

(amounts in thousands, except per share data)

(Unaudited)








Three Months Ended

March 31,




2013



2012


Net Income (Loss) Attributable to Common Stockholders


($999)



$3,134


Gain on sales of real estate properties




(3,428)


Impairments


3,630



4,170


Real estate depreciation and amortization


23,958



23,428


Total adjustments


27,588



24,170


Funds From Operations


$26,589



$27,304


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


252




Acquisition costs


219



109


Interest incurred related to the timing of issuance/redemption of senior notes


188




Severance costs included in general and administrative expenses


609




Termination fee received upon disposal of a real estate asset




(1,500)


Normalized Funds From Operations


$27,857



$25,913


Funds from Operations per Common Share—Diluted


$0.30



$0.35


Normalized Funds From Operations Per Common Share—Diluted


$0.32



$0.33


Weighted Average Common Shares Outstanding—Diluted


88,382



77,641


(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.

 

HEALTHCARE REALTY TRUST INCORPORATED

Reconciliation of FAD and Normalized FAD (1)

(amounts in thousands, except per share data)

(Unaudited)








Three Months Ended

March 31,




2013



2012


Net Income (Loss) Attributable to Common Stockholders


($999)



$3,134


Gain on sales of real estate properties




(3,428)


Impairments


3,630



4,170


Depreciation and amortization - real estate


23,983



23,428


Depreciation and amortization - other


1,885



1,304


Provision for bad debt, net


(12)



(42)


Straight-line rent receivable


(1,680)



(1,900)


Straight-line rent liability


102



90


Stock-based compensation


1,848



932


Provision for deferred post-retirement benefits


217



266


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


29,973



24,820


Funds Available For Distribution


$28,974



$27,954


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


252




Acquisition costs


219



109


Interest incurred related to the timing of issuance/redemption of senior notes


188




Severance costs included in general and administrative expenses excluding stock-based compensation


218




Termination fee received upon disposal of a real estate asset




(1,500)


Normalized Funds Available For Distribution


$29,851



$26,563


Funds Available For Distribution Per Common Share—Diluted


$0.33



$0.36


Normalized Funds Available For Distribution Per Common Share—Diluted


$0.34



$0.34


Weighted Average Common Shares Outstanding—Diluted


88,382



77,641


(1)     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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http://www.healthcarerealty.com

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