Healthcare Realty Trust Reports Normalized FFO Of $0.38 Per Share For The First Quarter

HEALTHCARE REALTY TRUST INCORPORATED

Condensed Consolidated Balance Sheets ⁽¹⁾

(amounts in thousands, except per share data)

(Unaudited)

ASSETS

Real Estate Properties:

3/31/2015 

12/31/2014 

Land

$187,951

$183,060

Buildings, improvements and lease intangibles

3,077,828

3,048,251

Personal property

10,014

9,914

Land held for development

21,376

17,054

Total real estate properties

3,297,169

3,258,279

Less accumulated depreciation

(723,393)

(700,671)

Total real estate properties, net

2,573,776

2,557,608

Cash and cash equivalents

10,417

3,519

Mortgage notes receivable

1,900

1,900

Assets held for sale and discontinued operations, net

14,164

9,146

Other assets, net

188,198

185,337

Total assets

$2,788,455

$2,757,510

LIABILITIES AND EQUITY

Liabilities:

Notes and bonds payable

$1,444,555

$1,403,692

Accounts payable and accrued liabilities

50,144

70,240

Liabilities of discontinued operations

102

372

Other liabilities

64,469

62,152

Total liabilities

1,559,270

1,536,456

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; 100,087 and 98,828 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively

1,001

988

Additional paid-in capital

2,423,121

2,389,830

Accumulated other comprehensive income

(3,242)

(2,519)

Cumulative net income attributable to common stockholders

845,631

840,249

Cumulative dividends

(2,037,326)

(2,007,494)

Total equity

1,229,185

1,221,054

Total liabilities and equity

$2,788,455

$2,757,510

(1)

The 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 March 31,

2015

2014

Revenues

Rental income

$95,034

$86,502

Mortgage interest

31

2,621

Other operating

1,391

1,448

96,456

90,571

Expenses

Property operating

34,263

32,831

General and administrative

6,738

5,972

Depreciation

26,387

23,667

Amortization

2,667

2,759

Bad debts, net of recoveries

(207)

47

69,848

65,276

Other Income (Expense)

Interest expense

(18,322)

(17,918)

Impairment

(3,328)

—

Interest and other income, net

91

100

(21,559)

(17,818)

Income From Continuing Operations

5,049

7,477

Discontinued Operations

Income (loss) from discontinued operations

333

(89)

Impairments

—

(3,425)

Income (Loss) From Discontinued Operations

333

(3,514)

Net Income

5,382

3,963

Less: Net income attributable to noncontrolling interests

—

(111)

Net Income Attributable To Common Stockholders

$5,382

$3,852

Basic Earnings Per Common Share:

Income from continuing operations

$0.05

$0.08

Discontinued operations

0.00

(0.04)

Net income attributable to common stockholders

$0.05

$0.04

Diluted Earnings Per Common Share:

Income from continuing operations

$0.05

$0.08

Discontinued operations

0.00

(0.04)

Net income attributable to common stockholders

$0.05

$0.04

Weighted Average Common Shares Outstanding—Basic

98,360

94,152

Weighted Average Common Shares Outstanding—Diluted

99,137

95,585

(1)

HEALTHCARE REALTY TRUST INCORPORATED

Reconciliation of FFO and Normalized FFO ^{(1) (2)}

(amounts in thousands, except per share data)

(Unaudited)

Three Months Ended March 31,

2015

2014

Net Income Attributable to Common Stockholders

$5,382

$3,852

Impairments

3,328

3,425

Real estate depreciation and amortization

28,532

26,248

Total adjustments

31,860

29,673

Funds From Operations

$37,242

$33,525

Acquisition costs

38

—

Severance expense

141

—

Normalized Funds From Operations

$37,421

$33,525

$0.38

$0.35

$0.38

$0.35

FFO Weighted Average Common Shares Outstanding

99,137

95,585

(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.