2014

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

NASHVILLE, Tenn., July 30, 2013 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the second quarter ended June 30, 2013.  Normalized FFO for the three months ended June 30, 2013 totaled $0.32 per diluted common share.  Normalized FAD for the three months ended June 30, 2013 totaled $0.33 per diluted common share. 

Salient highlights include:

  • The Company has four MOB investments under contract and a signed letter of intent to acquire a fifth.  The total purchase price for the five properties is approximately $156 million.  These properties total 528,000 square feet, are 95% leased and are on or adjacent to hospital campuses in several markets where the Company already has a presence.  The Company intends to close these transactions later in the third quarter.
  • The upcoming acquisitions were pre-funded with proceeds from equity raised under its ATM program throughout the second quarter and a follow-on offering in July. 
  • At the end of the second quarter, the Company prepaid a mortgage with a 7.25% interest rate for $94 million.
  • The Company redeemed its 5.125% 2014 unsecured senior notes in April 2013, in conjunction with the issuance of its 2023 senior notes in the first quarter.
  • The twelve development properties currently in stabilization (SIP) were 69% leased at the end of the second quarter, with occupancy increasing to 48%.
  • During the second quarter, the Company sold five smaller properties totaling 158,000 square feet for $12.0 million
  • A dividend of $0.30 per common share was declared for the second quarter of 2013, which is 90.9% of normalized FAD.

For the three months ended June 30, 2013, year-over-year revenues grew by $6.5 million to $84.1 million.  The Company recognized a net loss for the quarter of $24.2 million, including the effects of a $29.6 million loss incurred on the repayment of debt.

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 204 real estate properties and mortgages as of June 30, 2013.  The Company's 198 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:

6/30/2013


12/31/2012

Land

$164,673


$161,875

Buildings, improvements and lease intangibles

2,637,030


2,625,538

Personal property

9,168


8,739

Land held for development

17,054


25,171

Total real estate properties

2,827,925


2,821,323

Less accumulated depreciation

(613,882)


(580,617)

Total real estate properties, net

2,214,043


2,240,706

Cash and cash equivalents

1,152


6,776

Mortgage notes receivable

212,313


162,191

Assets held for sale and discontinued operations, net

18,688


3,337

Other assets, net

151,194


126,962

Total assets

$2,597,390


$2,539,972





LIABILITIES AND EQUITY




Liabilities:




Notes and bonds payable

$1,301,387


$1,293,044

Accounts payable and accrued liabilities

58,833


65,678

Liabilities of discontinued operations

280


131

Other liabilities

58,722


60,175

Total liabilities

1,419,222


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; 92,497 and 87,514 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively

925


875

Additional paid-in capital

2,235,403


2,100,297

Accumulated other comprehensive loss

(2,092)


(2,092)

Cumulative net income attributable to common stockholders

776,212


801,416

Cumulative dividends

(1,833,613)


(1,779,552)

Total stockholders' equity

1,176,835


1,120,944

Noncontrolling interests

1,333


Total equity

1,178,168


1,120,944

Total liabilities and equity

$2,597,390


$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
June 30,


Six Months Ended
June 30,


2013


2012


2013


2012

Revenues








Rental income

$79,119


$74,184


$157,148


$146,122

Mortgage interest

3,427


2,039


6,364


4,331

Other operating

1,508


1,370


2,965


3,144


84,054


77,593


166,477


153,597

Expenses








Property operating

31,732


29,150


61,535


57,409

General and administrative

5,841


4,520


12,382


9,781

Depreciation

22,069


20,733


43,881


41,172

Amortization

2,571


2,515


5,249


5,026

Bad debt, net of recoveries

19


150


7


109


62,232


57,068


123,054


113,497

Other Income (Expense)








Loss on extinguishments of debt

(29,638)



(29,638)


Interest expense

(18,925)


(18,506)


(38,695)


(36,860)

Interest and other income, net

219


201


449


414


(48,344)


(18,305)


(67,884)


(36,446)









Income (Loss) From Continuing Operations

(26,522)


2,220


(24,461)


3,654









Discontinued Operations








Income from discontinued operations

501


872


1,052


3,313

Impairments


(167)


(3,630)


(4,336)

Gain on sales of real estate properties

1,783


3


1,783


3,431

Income (Loss) From Discontinued Operations

2,284


708


(795)


2,408









Net Income (Loss)

(24,238)


2,928


(25,256)


6,062

Less: Net (income) loss attributable to
  noncontrolling interests

33


(20)


52


(20)

Net Income (Loss) Attributable To Common
  Stockholders

($24,205)


$2,908


($25,204)


$6,042

Basic Earnings (Loss) Per Common Share:








Income (loss) from continuing operations

($0.30)


$0.03


($0.28)


$0.05

Discontinued operations

0.03


0.01


(0.01)


0.03

Net income (loss) attributable to common
  stockholders

($0.27)


$0.04


($0.29)


$0.08

Diluted Earnings (Loss) Per Common Share:








Income (loss) from continuing operations

($0.30)


$0.03


($0.28)


$0.05

Discontinued operations

0.03


0.01


(0.01)


0.03

Net income (loss) attributable to common
  stockholders

($0.27)


$0.04


($0.29)


$0.08

Weighted Average Common Shares
  Outstanding—Basic

89,204


76,462


88,056


76,444

Weighted Average Common Shares
  Outstanding—Diluted

89,204


77,712


88,056


77,678









(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 June 30,


2013


2012

Net Income (Loss) Attributable to Common Stockholders

($24,205)


$2,908

Gain on sales of real estate properties

(1,783)


(3)

Impairments


167

Real estate depreciation and amortization

24,002


23,467

Total adjustments

22,219


23,631

Funds From Operations

($1,986)


$26,539

Acquisition costs

124


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

667


Loss on extinguishment of debt

29,907


Normalized Funds From Operations

$28,712


$26,539

Funds from Operations per Common Share—Diluted

($0.02)


$0.34

Normalized Funds From Operations Per Common Share—Diluted

$0.32


$0.34

FFO Weighted Average Common Shares Outstanding

89,204


77,712

Normalized FFO Weighted Average Common Shares Outstanding

90,684


77,712


(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 June 30,


2013


2012

Net Income (Loss) Attributable to Common Stockholders

($24,205)


$2,908

Gain on sales of real estate properties

(1,783)


(3)

Impairments


167

Depreciation and amortization

25,723


25,030

Provision for bad debt, net

19


150

Straight-line rent receivable

(1,802)


(1,545)

Straight-line rent liability

102


112

Stock-based compensation

1,137


721

Provision for deferred post-retirement benefits

218


266

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

23,614


24,898

Funds Available For Distribution

($591)


$27,806

Acquisition costs

124


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

667


Loss on extinguishment of debt

29,907


Normalized Funds Available For Distribution

$30,107


$27,806

Funds Available For Distribution Per Common Share—Diluted

(0.01)


$0.36

Normalized Funds Available For Distribution Per Common Share—Diluted

$0.33


$0.36

FAD Weighted Average Common Shares Outstanding

89,204


77,712

Normalized FAD Weighted Average Common Shares Outstanding

90,684


77,712


(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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