2014

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

NASHVILLE, Tenn., Oct. 30, 2013 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the third quarter ended September 30, 2013.  Normalized FFO for the three months ended September 30, 2013 totaled $0.32 per diluted common share.  Normalized FAD for the three months ended September 30, 2013 totaled $0.34 per diluted common share. 

Salient highlights include:

  • During the third quarter, the Company purchased two medical office buildings totaling 286,000 square feet for a total purchase price of $77.5 million.  Located on hospital campuses in South Bend, Indiana and Denver, Colorado, the properties are 91% leased and affiliated with CHE Trinity and University of Colorado Health. 
  • In October, the Company acquired three medical office buildings totaling 242,000 square feet for a total purchase price of $76.8 million.  Located on or adjacent to hospital campuses in Seattle, Charlotte, and Denver, the properties are 95% leased and affiliated with Providence Health & Services, CaroMont Health, and University of Colorado Health.
  • The Company renewed leases on 241,000 square feet with a retention rate of 82.1%.  At its same store properties, the Company signed new leases for 121,000 square feet, increased occupancy to 91.0% and increased year-over-year revenue and NOI 1.9% for the third quarter. 
  • The twelve development properties currently in stabilization (SIP) were 72% leased at the end of the third quarter, with occupancy increasing to 57%.  Had all occupants been in place and paying rent for the entire quarter, NOI for the SIP properties would have been $2.4 million.
  • In September, Healthcare Realty purchased the orthopedic surgical facility in Springfield, Missouri, which was previously funded by the Company through a construction loan, for $102.6 million.  The 186,000 square foot property is 100% leased to "AA-" rated Mercy Health.
  • The Company's leverage ratio was 40.6% at the end of the third quarter. 
  • A dividend of $0.30 per common share was declared for the third quarter of 2013, which is 88.2% of normalized FAD.

For the three months ended September 30, 2013, year-over-year revenues grew by $7.8 million to $84.8 million.  The Company reported net income for the quarter of $19.8 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 $3.1 billion in 199 real estate properties and mortgages as of September 30, 2013.  The Company's 194 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 10.2 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:


9/30/2013



12/31/2012


Land


$165,325



$161,875


Buildings, improvements and lease intangibles


2,765,055



2,625,538


Personal property


9,217



8,739


Land held for development


17,054



25,171


Total real estate properties


2,956,651



2,821,323


Less accumulated depreciation


(610,402)



(580,617)


Total real estate properties, net


2,346,249



2,240,706


Cash and cash equivalents


7,160



6,776


Mortgage notes receivable


126,409



162,191


Assets held for sale and discontinued operations, net


9,084



3,337


Other assets, net


155,961



126,962


Total assets


$2,644,863



$2,539,972









LIABILITIES AND EQUITY







Liabilities:







Notes and bonds payable


$1,268,194



$1,293,044


Accounts payable and accrued liabilities


57,610



65,678


Liabilities of discontinued operations


1,024



131


Other liabilities


59,706



60,175


Total liabilities


1,386,534



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; 95,873 and 87,514 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively


959



875


Additional paid-in capital


2,324,140



2,100,297


Accumulated other comprehensive loss


(2,092)



(2,092)


Cumulative net income attributable to common stockholders


795,977



801,416


Cumulative dividends


(1,862,367)



(1,779,552)


Total stockholders' equity


1,256,617



1,120,944


Noncontrolling interests


1,712




Total equity


1,258,329



1,120,944


Total liabilities and equity


$2,644,863



$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
September 30,


Nine Months Ended
September 30,




2013



2012


2013



2012


Revenues










Rental income


$79,256



$73,174


$233,319



$215,937


Mortgage interest


3,926



2,244


10,290



6,575


Other operating


1,579



1,519


4,544



4,659




84,761



76,937


248,153



227,171


Expenses










Property operating


32,652



29,737


93,911



86,937


General and administrative


5,583



4,729


17,965



14,510


Depreciation


22,080



20,348


65,065



60,626


Amortization


2,607



2,529


7,856



7,555


Bad debt, net of recoveries


111



40


118



149




63,033



57,383


184,915



169,777


Other Income (Expense)










Loss on extinguishments of debt





(29,638)




Interest expense


(17,043)



(18,881)


(55,738)



(55,741)


Interest and other income, net


256



203


705



618




(16,787)



(18,678)


(84,671)



(55,123)











Income (Loss) From Continuing Operations


4,941



876


(21,433)



2,271












Discontinued Operations










Income from discontinued operations


914



1,554


3,879



7,127


Impairments


(6,259)



(2,860)


(9,889)



(7,197)


Gain on sales of real estate properties


20,187



6,265


21,970



9,696


Income From Discontinued Operations


14,842



4,959


15,960



9,626












Net Income (Loss)


19,783



5,835


(5,473)



11,897


Less: Net (income) loss attributable to noncontrolling interests


(18)



(20)


34



(40)


Net Income (Loss) Attributable To Common Stockholders


$19,765



$5,815


($5,439)



$11,857


Basic Earnings (Loss) Per Common Share:










Income (loss) from continuing operations


$0.05



$0.01


($0.24)



$0.03


Discontinued operations


0.16



0.07


0.18



0.12


Net income (loss) attributable to common stockholders


$0.21



$0.08


($0.06)



$0.15


Diluted Earnings (Loss) Per Common Share:










Income (loss) from continuing operations


$0.05



$0.01


($0.24)



$0.03


Discontinued operations


0.16



0.06


0.18



0.12


Net income (loss) attributable to common stockholders


$0.21



$0.07


($0.06)



$0.15


Weighted Average Common Shares Outstanding—Basic


93,443



76,713


89,871



76,535


Weighted Average Common Shares Outstanding—Diluted


94,836



78,021


89,871



77,799




(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 September 30,




2013


2012


Net Income Attributable to Common Stockholders


$19,765


$5,815


Gain on sales of real estate properties


(20,187)


(6,265)


Impairments


6,259


2,860


Real estate depreciation and amortization


24,214


23,336


Total adjustments


10,286


19,931


Funds From Operations


$30,051


$25,746


Acquisition costs


504



Normalized Funds From Operations


$30,555


$25,746


Funds from Operations per Common Share—Diluted


$0.32


$0.33


Normalized Funds From Operations Per Common Share—Diluted


$0.32


$0.33


FFO Weighted Average Common Shares Outstanding


94,836


78,021


Normalized FFO Weighted Average Common Shares Outstanding


94,836


78,021




 

(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 September 30,




2013


2012


Net Income Attributable to Common Stockholders


$19,765


$5,815


Gain on sales of real estate properties


(20,187)


(6,265)


Impairments


6,259


2,860


Depreciation and amortization


26,103


24,926


Provision for bad debt, net


112


39


Straight-line rent receivable


(2,162)


(1,481)


Straight-line rent liability


107


110


Stock-based compensation


1,146


935


Provision for deferred post-retirement benefits


218


266


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


11,596


21,390


Funds Available For Distribution


$31,361


$27,205


Acquisition costs


504



Normalized Funds Available For Distribution


$31,865


$27,205


Funds Available For Distribution Per Common Share—Diluted


$0.33


$0.35


Normalized Funds Available For Distribution Per Common Share—Diluted


$0.34


$0.35


FAD Weighted Average Common Shares Outstanding


94,836


78,021


Normalized FAD Weighted Average Common Shares Outstanding


94,836


78,021




(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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