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

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)

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.