Healthcare Realty Trust Reports Normalized FFO Of $0.39 Per Share For The Second Quarter

Aug 05, 2015, 17:03 ET from Healthcare Realty Trust Incorporated

NASHVILLE, Tenn., Aug. 5, 2015 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the second quarter ended June 30, 2015.  Normalized FFO for the three months ended June 30, 2015 totaled $0.39 per diluted common share.  Over the same time period, year-over-year revenue grew by $5.0 million to $96.7 million.  The Company reported net income attributable to common stockholders for the quarter of $17.9 million.

Salient highlights include:

  • Normalized FFO for the second quarter grew $4.8 million, or 13.9% year-over-year, to $39.0 million.  Over the same time period, normalized FFO per share increased 8.3%.
  • Same store NOI grew 6.7% for the trailing twelve months ended June 30, 2015 over the same period a year ago.
  • The four predictive growth measures in the same store multi-tenant portfolio were:
    • contractual increases for in-place leases ("annual bumps") averaged 3.1%
    • cash leasing spreads for renewals averaged 5.0%
    • tenant retention was 87.3%
    • the average yield on renewed leases increased 100 basis points
  • Same store occupancy improved to 89.5% from 87.8% a year ago.  Same store revenue per average occupied square foot increased 2.1% for the trailing twelve months.
  • In June 2015, the Company acquired a 93% leased, 35,600 square foot medical office property in Seattle for a total purchase price of $13.9 million.  The property is located on Catholic Health Initiatives' Highline Medical Center campus and is adjacent to a 60,200 square foot on-campus medical office building the Company purchased in December 2014.  This increases our Seattle market portfolio size to 557,000 square feet and a total investment of $206.1 million.
  • During the quarter, the Company commenced two new on-campus developments in Austin and Denver totaling 110,900 square feet with a combined investment of $31.7 million.
  • In June 2015, the Company sold two single-tenant net lease properties in Indiana totaling 176,000 square feet for $97.0 million.  The properties include a 117,500 square foot orthopedic inpatient surgical hospital and an attached 58,500 square foot medical office building.  In May 2015, the Company disposed of an off-campus 5,300 square foot building in Virginia for $1.0 million.
  • The Company completed the redemption of its 6.5% $300 million notes due 2017 with proceeds from the 3.875% $250 million notes due 2025 together with the proceeds from dispositions.
  • A dividend of $0.30 per common share was declared, which is equal to 76.9% of normalized FFO.

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 $3.2 billion in 197 real estate properties and mortgages as of June 30, 2015.  The Company's 196 owned real estate properties are located in 30 states and total approximately 14.1 million square feet.  The Company provided leasing and property management services to approximately 9.5 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, 2014 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 per share data)

(Unaudited)

ASSETS

Real estate properties:

6/30/2015

12/31/2014

Land

$186,231

$183,060

Buildings, improvements and lease intangibles

3,033,213

3,048,251

Personal property

9,970

9,914

Construction in progress

8,284

Land held for development

16,952

17,054

Total real estate properties

3,254,650

3,258,279

Less accumulated depreciation and amortization

(730,125)

(700,671)

Total real estate properties, net

2,524,525

2,557,608

Cash and cash equivalents

8,431

3,519

Mortgage notes receivable

1,900

1,900

Assets held for sale and discontinued operations, net

14,192

9,146

Other assets, net

191,524

185,337

Total assets

$2,740,572

$2,757,510

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Notes and bonds payable

$1,388,797

$1,403,692

Accounts payable and accrued liabilities

57,143

70,240

Liabilities of discontinued operations

168

372

Other liabilities

66,035

62,152

Total liabilities

1,512,143

1,536,456

Commitments and contingencies

Stockholders' equity:

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

Common stock, $.01 par value; 150,000 shares authorized; 100,418 and 98,828 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively

1,004

988

Additional paid-in capital

2,432,979

2,389,830

Accumulated other comprehensive income

(1,653)

(2,519)

Cumulative net income attributable to common stockholders

863,547

840,249

Cumulative dividends

(2,067,448)

(2,007,494)

Total stockholders' equity

1,228,429

1,221,054

Total liabilities and stockholders' equity

$2,740,572

$2,757,510

(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 per share data)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

Revenues

Rental income

$95,450

$89,279

$190,484

$175,781

Mortgage interest

31

969

62

3,590

Other operating

1,227

1,423

2,618

2,871

96,708

91,671

193,164

182,242

Expenses

Property operating

33,927

33,635

68,189

66,466

General and administrative

6,713

5,661

13,451

11,633

Depreciation

26,552

24,491

52,940

48,158

Amortization

2,474

2,775

5,142

5,534

Bad debts, net of recoveries

27

73

(181)

121

69,693

66,635

139,541

131,912

Other Income (Expense)

Gain on sales of properties

41,549

41,549

Interest expense

(17,213)

(18,066)

(35,536)

(35,984)

Loss on extinguishment of debt

(27,998)

(27,998)

Pension termination

(5,260)

(5,260)

Impairment of real estate assets

(3,328)

Impairment of internally-developed software

(654)

(654)

Interest and other income, net

147

2,035

239

2,136

(9,429)

(16,031)

(30,988)

(33,848)

Income From Continuing Operations

17,586

9,005

22,635

16,482

Discontinued Operations

Income from discontinued operations

330

108

663

18

Impairments of real estate assets

(3,105)

(6,529)

Gain on sale of property

3

3

Income (Loss) From Discontinued Operations

330

(2,994)

663

(6,508)

Net Income

17,916

6,011

23,298

9,974

Less: Net income attributable to noncontrolling interests

(40)

(151)

Net Income Attributable To Common Stockholders

$17,916

$5,971

$23,298

$9,823

Basic Earnings (Loss) Per Common Share:

Income from continuing operations

$0.18

$0.09

$0.23

$0.17

Discontinued operations

0.00

(0.03)

0.01

(0.07)

Net income attributable to common stockholders

$0.18

$0.06

$0.24

$0.10

Diluted Earnings (Loss) Per Common Share:

Income from continuing operations

$0.18

$0.09

$0.23

$0.17

Discontinued operations

0.00

(0.03)

0.00

(0.07)

Net income attributable to common stockholders

$0.18

$0.06

$0.23

$0.10

Weighted Average Common Shares Outstanding—Basic

99,273

94,508

98,819

94,331

Weighted Average Common Shares Outstanding—Diluted

99,945

95,978

99,554

95,788

(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,

2015

2014

Net Income Attributable to Common Stockholders

$17,916

$5,971

Gain on sales of properties

(41,549)

(3)

Impairments of real estate assets

3,105

Real estate depreciation and amortization

28,542

27,017

Total adjustments

(13,007)

30,119

Funds From Operations Attributable to Common Stockholders

$4,909

$36,090

Acquisition costs

167

49

Loss on extinguishment of debt

27,998

Pension termination

5,260

Impairment of internally-developed software

654

Refund of prior year overpayment of certain operating expenses

(1,919)

Normalized Funds From Operations Attributable to Common Stockholders

$38,988

$34,220

Funds from Operations per Common Share—Diluted

$0.05

$0.38

Normalized Funds From Operations Per Common Share—Diluted

$0.39

$0.36

FFO Weighted Average Common Shares Outstanding

99,945

95,978

(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 does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs. FFO should not be considered an alternative to net income attributable to common stockholders as an indicator of the Company's operating performance or as an alternative to cash flow as a measure of liquidity.

SOURCE Healthcare Realty Trust Incorporated



RELATED LINKS

http://www.healthcarerealty.com