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

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

PR Newswire

NASHVILLE, Tenn., May 1, 2013

NASHVILLE, Tenn., May 1, 2013 /PRNewswire/ --Healthcare Realty Trust
Incorporated (NYSE: HR) today announced results for the first quarter ended
March 31, 2013. Normalized FFO for the three months ended March 31, 2013
totaled $0.32 per diluted common share. Normalized FAD for the three months
ended March 31, 2013 totaled $0.34 per diluted common share.

Salient highlights include:

  oYear-over-year NOI for the same-store portfolio increased 2.5% in the
    first quarter.
  oThe Company renewed 72 leases in its same-store portfolio totaling 270,168
    square feet, with a retention rate of 84.2%.
  oThe twelve stabilizing properties ("SIP") were 65% leased at the end of
    the first quarter, with occupancy increasing to 45%.
  oNOI for the SIP properties reached approximately $1.3 million per quarter.
  oSince the beginning of the first quarter, the Company acquired two
    facilities for a total purchase price of $32.5 million. The buildings
    total approximately 95,000 square feet and are both 100% occupied.
  oThe Company raised $39.7 million in the first quarter through its
    at-the-market equity program to fund recent acquisitions.
  oThe Company issued $250 million of unsecured senior notes due in April
    2023 with a coupon rate of 3.75%. In conjunction with the issuance of
    these notes, the Company redeemed its 5.125% 2014 unsecured senior notes
    in April 2013.
  oThe Company extended the maturity date to April 2017 and lowered its
    borrowing cost under its unsecured $700 million revolving credit facility.
  oA dividend of $0.30 per share was declared for the first quarter of 2013,
    which is 88.2% of normalized FAD.

For the three months ended March 31, 2013, year-over-year revenues grew by
$6.4 million to $82.6 million, income from continuing operations totaled $2.1
million, and the Company recognized a net loss, including $3.6 million in
impairment charges, totaling $1.0 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 $3.0 billion in 205 real estate properties and mortgages as of
March 31, 2013. The Company's 200 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 10.1 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:                             3/31/2013     12/31/2012
Land                                                $164,649      $161,875
Buildings, improvements and lease intangibles       2,613,069     2,625,538
Personal property                                   19,208        19,100
Land held for development                           17,054        25,171
Total real estate properties                        2,813,980     2,831,684
Less accumulated depreciation                       (597,434)     (586,725)
Total real estate properties, net                   2,216,546     2,244,959
Cash and cash equivalents                           94,171        6,776
Mortgage notes receivable                           190,134       162,191
Assets held for sale and discontinued operations,   22,297        3,337
net
Other assets, net                                   132,102       122,709
Total assets                                        $2,655,250    $2,539,972
LIABILITIES AND EQUITY
Liabilities:
Notes and bonds payable                             $1,415,119    $1,293,044
Accounts payable and accrued liabilities            45,534        65,678
Liabilities of discontinued operations              86            131
Other liabilities                                   57,895        60,175
Total liabilities                                   1,518,634     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; 89,217 and 87,514 shares issued and     892           875
outstanding at March 31, 2013 and December 31,
2012, respectively
Additional paid-in capital                          2,142,346     2,100,297
Accumulated other comprehensive loss                (2,092)       (2,092)
Cumulative net income attributable to common        800,417       801,416
stockholders
Cumulative dividends                                (1,806,298)   (1,779,552)
Total stockholders' equity                          1,135,265     1,120,944
Noncontrolling interests                            1,351         —
Total equity                                        1,136,616     1,120,944
Total liabilities and equity                        $2,655,250    $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

                                                         March 31,
                                                         2013       2012
Revenues
Rental income                                            $78,191    $72,099
Mortgage interest                                        2,937      2,292
Other operating                                          1,456      1,774
                                                         82,584     76,165
Expenses
Property operating                                       29,826     28,285
General and administrative                               6,541      5,261
Depreciation                                             21,852     20,479
Amortization                                             2,689      2,522
Bad debt, net of recoveries                              (12)       (41)
                                                         60,896     56,506
Other Income (Expense)
Interest expense                                         (19,795)   (18,379)
Interest and other income, net                           232        216
                                                         (19,563)   (18,163)
Income From Continuing Operations                        2,125      1,496
Discontinued Operations
Income from discontinued operations                      487        2,380
Impairments                                              (3,630)    (4,170)
Gain on sales of real estate properties                  —          3,428
Income (Loss) From Discontinued Operations               (3,143)    1,638
Net Income (Loss)                                        (1,018)    3,134
Less: Net loss attributable to noncontrolling interests  19         —
Net Income (Loss) Attributable To Common Stockholders    ($999)     $3,134
Basic Earnings (Loss) Per Common Share:
Income from continuing operations                        $0.02      $0.02
Discontinued operations                                  (0.03)     0.02
Net income (loss) attributable to common stockholders    ($0.01)    $0.04
Diluted Earnings (Loss) Per Common Share:
Income from continuing operations                        $0.02      $0.02
Discontinued operations                                  (0.03)     0.02
Net income (loss) attributable to common stockholders    ($0.01)    $0.04
Weighted Average Common Shares Outstanding—Basic         86,894     76,427
Weighted Average Common Shares Outstanding—Diluted       88,382     77,641

(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

                                                           March 31,
                                                           2013       2012
Net Income (Loss) Attributable to Common Stockholders      ($999)     $3,134
Gain on sales of real estate properties                    —          (3,428)
Impairments                                                3,630      4,170
Real estate depreciation and amortization                  23,958     23,428
Total adjustments                                          27,588     24,170
Funds From Operations                                      $26,589    $27,304
Write off of deferred financing costs upon amendment of    252        —
line of credit facility
Acquisition costs                                          219        109
Interest incurred related to the timing of                 188        —
issuance/redemption of senior notes
Severance costs included in general and administrative     609        —
expenses
Termination fee received upon disposal of a real estate    —          (1,500)
asset
Normalized Funds From Operations                           $27,857    $25,913
Funds from Operations per Common Share—Diluted             $0.30      $0.35
Normalized Funds From Operations Per Common Share—Diluted  $0.32      $0.33
Weighted Average Common Shares Outstanding—Diluted         88,382     77,641

(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

                                                           March 31,
                                                           2013       2012
Net Income (Loss) Attributable to Common Stockholders      ($999)     $3,134
Gain on sales of real estate properties                    —          (3,428)
Impairments                                                3,630      4,170
Depreciation and amortization - real estate                23,983     23,428
Depreciation and amortization - other                      1,885      1,304
Provision for bad debt, net                                (12)       (42)
Straight-line rent receivable                              (1,680)    (1,900)
Straight-line rent liability                               102        90
Stock-based compensation                                   1,848      932
Provision for deferred post-retirement benefits            217        266
Total non-cash items included in cash flows from           29,973     24,820
operating activities
Funds Available For Distribution                           $28,974    $27,954
Write off of deferred financing costs upon renewal of      252        —
line of credit facility
Acquisition costs                                          219        109
Interest incurred related to the timing of                 188        —
issuance/redemption of senior notes
Severance costs included in general and administrative     218        —
expenses excluding stock-based compensation
Termination fee received upon disposal of a real estate    —          (1,500)
asset
Normalized Funds Available For Distribution                $29,851    $26,563
Funds Available For Distribution Per Common Share—Diluted  $0.33      $0.36
Normalized Funds Available For Distribution Per Common     $0.34      $0.34
Share—Diluted
Weighted Average Common Shares Outstanding—Diluted         88,382     77,641

(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

Website: http://www.healthcarerealty.com
Contact: Carla Baca, Financial Communications, P: 615.269.8175
 
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