HR Healthcare Realty Trust Incorporated

NASHVILLE, Tenn., May 11 /PRNewswire-FirstCall/ -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the first quarter ended March 31, 2009. Funds from operations ("FFO") per diluted common share for the three months ended March 31, 2009 totaled $0.43, compared with $0.39 for the three months ended March 31, 2008. FFO would have been $0.38 per diluted common share for the three months ended March 31, 2009, before the recognition of a $2.7 million non-cash re-measurement gain, as required by FASB Statement No. 141( R ), resulting from the buyout of a joint venture partner by the Company. Funds available for distribution ("FAD") for the three months ended March 31, 2009 totaled $0.41 per diluted common share. Revenues for the three months ended March 31, 2009 totaled $63.0 million, compared with the prior year's $52.2 million. Income from continuing operations for the three months ended March 31, 2009 totaled $7.8 million, compared with $4.9 million for the three months ended March 31, 2008. Net income for the three months ended March 31, 2009 totaled $20.9 million, or $0.35 per diluted common share, versus $6.8 million, or $0.13 per diluted common share, for the three months ended March 31, 2008. Healthcare Realty Trust is a real estate investment trust that integrates owning, managing 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 $2.1 billion in 204 real estate properties and mortgages as of March 31, 2009, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company's 199 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 28 states, totaling approximately 12.1 million square feet. The Company provides property management services to approximately 8.5 million square feet nationwide. The Company directs interested parties to its Internet site, http://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, 2008 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 material. HEALTHCARE REALTY TRUST INCORPORATED Condensed Consolidated Statements of Income(1) (Dollars in thousands, except per share data) Three Months Ended March 31, --------- 2009 2008 ---- ---- (Unaudited) REVENUES Master lease rent $15,737 $15,773 Property operating 42,910 32,115 Straight-line rent 351 (61) Mortgage interest 489 525 Other operating 3,509 3,850 ----- ----- 62,996 52,202 EXPENSES General and administrative 6,967 6,045 Property operating 23,363 18,251 Bad debts, net of recoveries 435 145 Depreciation 15,753 11,489 Amortization 1,481 585 ----- --- 47,999 36,515 OTHER INCOME (EXPENSE) Re-measurement gain of equity interest upon acquisition 2,701 - Interest expense (10,074) (10,878) Interest and other income, net 155 136 --- --- (7,218) (10,742) ------ ------- INCOME FROM CONTINUING OPERATIONS 7,779 4,945 DISCONTINUED OPERATIONS (2) Income from discontinued operations 514 1,249 Impairments (22) (29) Gain on sales of real estate properties 12,609 637 ------ --- INCOME FROM DISCONTINUED OPERATIONS 13,101 1,857 ------ ----- NET INCOME 20,880 6,802 Less: Net income attributable to noncontrolling interests (15) (3) --- -- NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $20,865 $6,799 ======= ====== BASIC EARNINGS PER COMMON SHARE Income from continuing operations $0.13 $0.10 Discontinued operations 0.23 0.04 ---- ---- Net income attributable to common stockholders $0.36 $0.14 ===== ===== DILUTED EARNINGS PER COMMON SHARE Income from continuing operations $0.13 $0.10 Discontinued operations 0.22 0.03 ---- ---- Net income attributable to common stockholders $0.35 $0.13 ===== ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC 58,130,574 49,413,058 ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED 58,847,384 50,407,119 ========== ========== (1) The Condensed Consolidated Statements of Income do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. (2) In accordance with SFAS No. 144, "Accounting for Impairment or Disposal of Long-Lived Assets," the Company reports real estate properties and related assets and liabilities to be sold as held for sale and includes the results of operations of real estate properties sold or held for sale in discontinued operations on the Company's Condensed Consolidated Statements of Income. HEALTHCARE REALTY TRUST INCORPORATED Condensed Consolidated Statements of Cash Flows (1) (Dollars in thousands) (Unaudited) Three Months Ended March 31, --------- 2009 2008 ---- ---- Cash flows from operating activities: Net income $20,880 $6,802 Non-cash items: --------------- Depreciation and amortization - real estate 16,872 12,555 Depreciation and amortization - other 808 564 Provision for bad debt, net of recoveries 437 217 Impairments 22 29 Straight-line rent receivable (353) 64 Straight-line rent liability 113 43 Equity in losses from unconsolidated joint ventures 2 264 Stock-based compensation 1,288 1,296 Provision for deferred post- retirement benefits 1,492 836 Re-measurement gain of equity interest upon acquisition (2,701) - Other non-cash items 254 306 --- --- Total non-cash items 18,234 16,174 Other items: ------------ Accounts payable and accrued liabilities 1,090 3,779 Other liabilities 981 (734) Other assets 1,199 6,374 Gain on sales of real estate properties (12,609) (637) Payment of partial pension settlement (2,300) - State income taxes paid, net of refunds 53 - -- - Total other items (11,586) 8,782 ------- ----- Net cash provided by operating activities 27,528 31,758 Cash flows from investing activities: Acquisition and development of real estate properties (33,076) (19,560) Funding of mortgages and notes receivable (3,451) (1,265) Distributions received from unconsolidated joint ventures - 423 Proceeds from sales of real estate 63,907 3,415 Proceeds from mortgages and notes receivable repayments 38 36 -- -- Net cash provided by (used in) investing activities 27,418 (16,951) Cash flows from financing activities: Net borrowings (repayments) on unsecured credit facility (4,000) 8,000 Repayments on notes and bonds payable (20,548) (907) Quarterly dividends paid (22,829) (19,533) Proceeds from issuance of common stock 183 185 Proceeds received from noncontrolling interests 529 - Distributions to noncontrolling interests (43) (3) --- -- Net cash used in financing activities (46,708) (12,258) ------- ------- Increase in cash and cash equivalents 8,238 2,549 Cash and cash equivalents, beginning of period 4,138 8,519 ----- ----- Cash and cash equivalents, end of period $12,376 $11,068 ======= ======= (1) The Condensed Consolidated Statements of Cash Flows do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. RECONCILIATION OF FUNDS FROM OPERATIONS (1) (2): (Dollars in thousands, except per share data) (Unaudited) Three Months Ended March 31, --------- 2009 2008 ---- ---- Net Income Attributable to Common Stockholders $20,865 $6,799 Gain on sales of real estate properties (12,609) (637) Real estate depreciation and amortization 16,883 13,273 ------ ------ Total adjustments 4,274 12,636 ----- ------ Funds From Operations - Basic and Diluted $25,139 $19,435 ======= ======= Funds From Operations Per Common Share - Basic $0.43 $0.39 ===== ===== Funds From Operations Per Common Share - Diluted $0.43 $0.39 ===== ===== Weighted Average Common Shares Outstanding - Basic 58,130,574 49,413,058 ========== ========== Weighted Average Common Shares Outstanding - Diluted 58,847,384 50,407,119 ========== ========== RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2): (Dollars in thousands, except per share data) (Unaudited) Three Months Ended March 31, 2009 -------------- Net Income Attributable to Common Stockholders $20,865 Gain on sales of real estate properties (12,609) Partial pension settlement (2,300) Total non-cash items included in cash flows from operating activities (3) 18,234 ------ Funds Available For Distribution $24,190 ======= Funds Available For Distribution Per Common Share - Diluted $0.41 ===== Weighted Average Common Shares Outstanding - Diluted 58,847,384 ========== (1) Funds from operations ("FFO") is calculated according to the definition of the National Association of Real Estate Investment Trusts and is comprised primarily of net income and depreciation from real estate, but is not adjusted for certain non-cash income and expense items. Gains on the sale of real estate properties are excluded from FFO and FFO per share, while impairments are included in FFO and FFO per share. (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 and are not necessarily indicative of cash available to fund cash needs. FFO and FAD should not be considered alternatives to net income as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity. (3) See the Condensed Consolidated Statements of Cash Flows that are included in this earnings release. DATASOURCE: Healthcare Realty Trust CONTACT: Scott W. Holmes, Executive Vice President & Chief Financial Officer, of Healthcare Realty Trust, +1-615-269-8175, http://www.healthcarerealty.com/ Web Site: http://www.healthcarerealty.com/

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