Healthcare Realty Trust Reports Normalized FFO Of $0.34 Per Share For The Second Quarter
NASHVILLE, Tenn., July 31, 2012 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the second quarter ended June 30, 2012. Normalized FFO and FFO for the three months ended June 30, 2012 totaled $0.34 per diluted common share. Normalized FAD and FAD for the three months ended June 30, 2012 totaled $0.36 per diluted common share.
For the three months ended June 30, 2012, revenues totaled $78.7 million, income from continuing operations totaled $2.4 million, and net income attributable to common stockholders totaled $2.9 million.
Salient highlights include:
- Healthcare Realty's stabilizing properties ("SIP") are 51% leased, up from 46% last quarter. Occupancy in the SIP portfolio increased to 33% from 28% as tenants' suites were built out. Adjusted NOI for the SIP properties improved by approximately $300,000 compared to the previous quarter.
- The Company has one property under construction, which is 40% leased, and expects to complete construction in the third quarter of 2012.
- Including the developments that the Company is funding through construction loans, which are all secured by 100%-leased properties, Healthcare Realty's overall development portfolio is now 62% leased.
- Healthcare Realty invested $28.5 million during the second quarter of 2012, including $10.7 million in one property acquisition, $15.6 million in two existing construction mortgages, and $2.2 million in one property under construction.
- Occupancy in the same facility portfolio was 90%, and the occupancy of investments made during the past five quarters, which are not included in the same facility portfolio, was 96%.
- The multi-tenant same facility NOI increased 3.5% in the second quarter from a year ago, and the overall same facility portfolio NOI increased 2.1% over the same time period.
- The weighted average increase in lease rates for the Company's multi-tenant properties remained strong in the second quarter. Contractual rates for in-place leases were up 3.1%, and rate increases on newly executed leases ("cash leasing spreads") averaged 1.8%.
- The percentage of Healthcare Realty's medical office properties that are on or adjacent to hospital campuses increased to 77% in the second quarter of 2012, compared to 66% eight quarters ago, continuing the Company's strategic shift toward lower-risk, on-campus medical office buildings.
- A dividend of $0.30 per share was declared for the second quarter of 2012, which is 83% of normalized FAD.
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 $2.9 billion in 205 real estate properties and mortgages as of June 30, 2012. 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 10.3 million square feet nationwide.
The Company directs interested parties to its Internet site, www.healthcarerealty.com, where information is posted regarding this quarter's operations. 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, 2011 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 |
||||||
ASSETS |
||||||
Real Estate Properties: |
6/30/2012 |
12/31/2011 |
||||
Land |
$ 163,211 |
$ 162,843 |
||||
Buildings, improvements, and lease intangibles |
2,552,106 |
2,521,226 |
||||
Personal property |
18,776 |
18,221 |
||||
Construction in progress |
34,180 |
86,328 |
||||
Total real estate properties |
2,768,273 |
2,788,618 |
||||
Less accumulated depreciation |
(545,677) |
(516,747) |
||||
Total real estate properties, net |
2,222,596 |
2,271,871 |
||||
Cash and cash equivalents |
3,103 |
4,738 |
||||
Mortgage notes receivable |
118,059 |
97,381 |
||||
Assets held for sale and discontinued operations, net |
12,921 |
28,650 |
||||
Other assets, net |
115,645 |
118,382 |
||||
Total assets |
$ 2,472,324 |
$ 2,521,022 |
||||
LIABILITIES AND EQUITY |
||||||
Liabilities: |
||||||
Notes and bonds payable |
$ 1,395,600 |
$ 1,393,537 |
||||
Accounts payable and accrued liabilities |
57,785 |
72,217 |
||||
Liabilities of discontinued operations |
174 |
518 |
||||
Other liabilities |
52,570 |
49,944 |
||||
Total liabilities |
1,506,129 |
1,516,216 |
||||
Commitments and contingencies |
||||||
Equity: |
||||||
Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding |
- |
- |
||||
Common stock, $.01 par value; 150,000,000 shares authorized; 78,002,812 and 77,843,883 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively |
780 |
779 |
||||
Additional paid-in capital |
1,896,735 |
1,894,604 |
||||
Accumulated other comprehensive loss |
(3,332) |
(3,332) |
||||
Cumulative net income attributable to common stockholders |
801,993 |
795,951 |
||||
Cumulative dividends |
(1,729,981) |
(1,683,196) |
||||
Total stockholders' equity |
966,195 |
1,004,806 |
||||
Total liabilities and equity |
$ 2,472,324 |
$ 2,521,022 |
||||
(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 |
|||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
2012 |
2011 |
2012 |
2011 |
||||||||||
Revenues |
|||||||||||||
Property operating |
$ 60,948 |
$ 53,320 |
$ 119,913 |
$ 105,141 |
|||||||||
Single-tenant net lease |
12,833 |
13,459 |
25,092 |
27,503 |
|||||||||
Straight-line rent |
1,542 |
1,076 |
3,449 |
2,364 |
|||||||||
Mortgage interest |
2,039 |
1,825 |
4,331 |
3,474 |
|||||||||
Other operating |
1,374 |
2,047 |
3,146 |
4,345 |
|||||||||
78,736 |
71,727 |
155,931 |
142,827 |
||||||||||
Expenses |
|||||||||||||
Property operating |
29,457 |
27,773 |
58,039 |
55,210 |
|||||||||
General and administrative |
4,519 |
5,157 |
9,782 |
10,938 |
|||||||||
Depreciation |
21,311 |
18,487 |
42,333 |
36,756 |
|||||||||
Amortization |
2,540 |
1,778 |
5,077 |
3,555 |
|||||||||
Bad debt, net |
149 |
93 |
109 |
271 |
|||||||||
57,976 |
53,288 |
115,340 |
106,730 |
||||||||||
Other Income (Expense) |
|||||||||||||
Loss on extinguishment of debt |
- |
- |
- |
(1,986) |
|||||||||
Interest expense |
(18,530) |
(17,343) |
(36,909) |
(39,617) |
|||||||||
Interest and other income, net |
203 |
196 |
508 |
418 |
|||||||||
(18,327) |
(17,147) |
(36,401) |
(41,185) |
||||||||||
Income (Loss) From Continuing Operations |
2,433 |
1,292 |
4,190 |
(5,088) |
|||||||||
Discontinued Operations |
|||||||||||||
Income from discontinued operations |
659 |
719 |
2,777 |
1,448 |
|||||||||
Impairments |
(167) |
- |
(4,336) |
(147) |
|||||||||
Gain on sales of real estate properties |
3 |
- |
3,431 |
36 |
|||||||||
Income From Discontinued Operations |
495 |
719 |
1,872 |
1,337 |
|||||||||
Net Income (Loss) |
2,928 |
2,011 |
6,062 |
(3,751) |
|||||||||
Less: Net income attributable to noncontrolling interests |
(20) |
- |
(20) |
(27) |
|||||||||
Net Income (Loss) Attributable to Common Stockholders |
$ 2,908 |
$ 2,011 |
$ 6,042 |
$ (3,778) |
|||||||||
Basic Earnings (Loss) Per Common Share |
|||||||||||||
Income (loss) from continuing operations |
$ 0.03 |
$ 0.02 |
$ 0.05 |
$ (0.07) |
|||||||||
Discontinued operations |
0.01 |
0.01 |
0.03 |
0.02 |
|||||||||
Net income (loss) attributable to common stockholders |
$ 0.04 |
$ 0.03 |
$ 0.08 |
$ (0.05) |
|||||||||
Diluted Earnings (Loss) Per Common Share |
|||||||||||||
Income (loss) from continuing operations |
$ 0.03 |
$ 0.02 |
$ 0.05 |
$ (0.07) |
|||||||||
Discontinued operations |
0.01 |
0.01 |
0.03 |
0.02 |
|||||||||
Net income (loss) attributable to common stockholders |
$ 0.04 |
$ 0.03 |
$ 0.08 |
$ (0.05) |
|||||||||
Weighted Average Common Shares Outstanding - Basic |
76,462,266 |
72,035,154 |
76,444,487 |
69,109,543 |
|||||||||
Weighted Average Common Shares Outstanding - Diluted |
77,712,493 |
73,149,232 |
77,678,362 |
69,109,543 |
|||||||||
(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. |
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HEALTHCARE REALTY TRUST INCORPORATED |
||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||
2012 |
2011 |
2012 |
2011 |
|||||||
Cash flows from operating activities: |
||||||||||
Net income (loss) |
$ 2,928 |
$ 2,011 |
$ 6,062 |
$ (3,751) |
||||||
NON-CASH ITEMS: |
||||||||||
Depreciation and amortization - real estate |
23,467 |
20,410 |
46,896 |
40,592 |
||||||
Depreciation and amortization - other |
1,563 |
1,654 |
2,866 |
3,327 |
||||||
Provision for bad debt, net |
150 |
93 |
108 |
287 |
||||||
Gain on sales of real estate properties |
(3) |
- |
(3,431) |
(36) |
||||||
Impairments |
167 |
- |
4,336 |
147 |
||||||
Straight-line rent receivable |
(1,545) |
(1,109) |
(3,445) |
(2,395) |
||||||
Straight-line rent liability |
112 |
149 |
202 |
246 |
||||||
Stock-based compensation |
721 |
661 |
1,653 |
1,602 |
||||||
Provision for deferred post-retirement benefits |
266 |
459 |
532 |
918 |
||||||
Total non-cash items |
24,898 |
22,317 |
49,717 |
44,688 |
||||||
OTHER ITEMS: |
||||||||||
Accounts payable and accrued liabilities |
11,055 |
9,067 |
(9,573) |
2,649 |
||||||
Other liabilities |
219 |
5,081 |
2,541 |
6,299 |
||||||
Other assets |
2,760 |
(1,655) |
4,050 |
(5,376) |
||||||
Loss on extinguishment of debt |
- |
- |
- |
1,986 |
||||||
Total other items |
14,034 |
12,493 |
(2,982) |
5,558 |
||||||
Net cash provided by operating activities |
41,860 |
36,821 |
52,797 |
46,495 |
||||||
Cash flows from investing activities: |
||||||||||
Acquisition and development of real estate properties |
(17,196) |
(57,574) |
(61,522) |
(83,111) |
||||||
Funding of mortgages and notes receivable |
(15,772) |
(34,361) |
(28,550) |
(83,141) |
||||||
Proceeds from sales of real estate |
29,485 |
- |
36,109 |
3,775 |
||||||
Proceeds from mortgage repayment by consolidated variable interest entity |
- |
- |
35,057 |
- |
||||||
Proceeds from mortgages and notes receivable repayments |
4,507 |
40 |
9,232 |
58 |
||||||
Net cash provided by (used in) investing activities |
1,024 |
(91,895) |
(9,674) |
(162,419) |
||||||
Cash flows from financing activities: |
||||||||||
Net borrowings (repayments) on unsecured credit facility |
(22,000) |
(41,000) |
4,000 |
123,000 |
||||||
Repayments on notes and bonds payable |
(1,223) |
(810) |
(2,436) |
(1,616) |
||||||
Repurchase of notes payable |
- |
- |
- |
(280,201) |
||||||
Dividends paid |
(23,398) |
(22,325) |
(46,785) |
(42,570) |
||||||
Proceeds from issuance of common stock |
230 |
134,033 |
511 |
224,045 |
||||||
Purchase of noncontrolling interests |
- |
- |
- |
(1,591) |
||||||
Common stock redemptions |
- |
- |
(45) |
(51) |
||||||
Debt issuance costs |
- |
- |
(3) |
(356) |
||||||
Distributions to noncontrolling interest holders |
- |
(55) |
- |
(281) |
||||||
Net cash provided by (used in) financing activities |
(46,391) |
69,843 |
(44,758) |
20,379 |
||||||
Increase (decrease) in cash and cash equivalents |
(3,507) |
14,769 |
(1,635) |
(95,545) |
||||||
Cash and cash equivalents, beginning of period |
6,610 |
3,007 |
4,738 |
113,321 |
||||||
Cash and cash equivalents, end of period |
$ 3,103 |
$ 17,776 |
$ 3,103 |
$ 17,776 |
||||||
(1) |
The Condensed Consolidated Statements of Cash Flows 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 |
|||||||||
Three Months Ended June 30, 2012 |
Three Months Ended June 30, 2011(4) |
||||||||
Net Income Attributable to Common Stockholders |
$ 2,908 |
$ 2,011 |
|||||||
Gain on sales of real estate properties |
(3) |
- |
|||||||
Impairments |
167 |
- |
|||||||
Real estate depreciation and amortization |
23,467 |
20,410 |
|||||||
Total adjustments |
23,631 |
20,410 |
|||||||
Funds From Operations |
$ 26,539 |
$ 22,421 |
|||||||
Acquisition costs |
- |
299 |
|||||||
Normalized Funds From Operations |
$ 26,539 |
$ 22,720 |
|||||||
Funds From Operations Per Common Share - Diluted |
$ 0.34 |
$ 0.31 |
|||||||
Normalized Funds From Operations Per Common Share - Diluted |
$ 0.34 |
$ 0.31 |
|||||||
Weighted Average Common Shares Outstanding - Diluted |
77,712,493 |
73,149,232 |
|||||||
|
|||||||||
Three Months Ended June 30, 2012 |
Three Months Ended June 30, 2011(4) |
||||||||
Net Income Attributable to Common Stockholders |
$ 2,908 |
$ 2,011 |
|||||||
Gain on sales of real estate properties |
(3) |
- |
|||||||
Impairments |
167 |
- |
|||||||
Other non-cash items |
24,734 |
22,317 |
|||||||
Total non-cash items included in cash flows from operating activities (3) |
24,898 |
22,317 |
|||||||
Funds Available For Distribution |
$ 27,806 |
$ 24,328 |
|||||||
Acquisition costs |
- |
299 |
|||||||
Normalized Funds Available For Distribution |
$ 27,806 |
$ 24,627 |
|||||||
Funds Available For Distribution Per Common Share - Diluted |
$ 0.36 |
$ 0.33 |
|||||||
Normalized Funds Available For Distribution Per Common Share - Diluted |
$ 0.36 |
$ 0.34 |
|||||||
Weighted Average Common Shares Outstanding - Diluted |
77,712,493 |
73,149,232 |
|||||||
(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." The SEC indicated in 2003 that impairment charges (losses) could not be added back to net income attributable to common stockholders in calculating FFO. However, in late October 2011, NAREIT issued an alert indicating that the SEC staff recently advised NAREIT that it currently takes no position on the matter of whether impairment charges should be added back to net income to compute FFO, and NAREIT affirmed its original definition of FFO. The Company follows the NAREIT definition to exclude impairment charges and all prior periods have been restated to agree with current presentation. |
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(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. |
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(3) |
See the Condensed Consolidated Statements of Cash Flows that are included in this earnings release. |
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(4) |
Normalization was not previously reported. Adjustments have been reflected in accordance with the current presentation. |
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SOURCE Healthcare Realty Trust Incorporated
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