NASHVILLE, Tenn., Nov. 1, 2011 /PRNewswire/ -- Healthcare Realty
Trust Incorporated (NYSE: HR) today announced results for the third
quarter ended September 30, 2011.
Normalized FFO for the three months ended September 30, 2011 totaled $0.31 per diluted common share. Normalized
FAD for the three months ended September 30,
2011 totaled $0.33 per diluted
common share.
For the three months ended September 30,
2011, revenues totaled $76.1
million, income from continuing operations totaled
$0.2 million, and net income
attributable to common stockholders totaled $0.6 million.
Salient highlights include:
- The Company renewed and expanded its unsecured credit facility.
The new $700 million credit
facility, led by Wells Fargo and JP Morgan, includes 17 banks and
matures in October 2015 with an
option to extend the facility for an additional year. The new
facility is priced at LIBOR plus 150 basis points, with an annual
facility fee of 35 basis points. The all-in cost of the new
facility is a 135 basis point improvement over the previous credit
facility.
- The Company invested $144.8
million during the quarter, including $107.2 million of acquisitions in Richmond, Virginia, $8.8 million in construction mortgage loans, and
$28.8 million in properties under
construction. On October 26th,
the Company acquired the remaining two outpatient buildings in the
Richmond portfolio for
approximately $19.7 million.
- Improved sentiment among healthcare providers increased the
leased percentage of properties in stabilization from 29% to 33%,
and prospective commitments should increase the percentage to near
50% in the coming months.
- Property operations in the Company's stabilized portfolio were
steady, with occupancy remaining at 87%.
- Contractual increases for in-place leases averaged 3.2% in the
third quarter, up slightly from 3.1% in the second quarter.
- Average rate increases on newly executed leases ("cash leasing
spreads") averaged 2.3%, up from 1.7% in the second quarter.
- Tenant retention was stable at 84%.
- A quarterly dividend of $0.30 per
share was declared, which is 91% 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 219 real estate properties and
mortgages as of September 30, 2011,
excluding assets classified as held for sale and including an
investment in one unconsolidated joint venture. The Company's
208 owned real estate properties, excluding assets classified as
held for sale, are located in 29 states and total approximately
13.9 million square feet. The Company provides property
management services to approximately 10.0 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, 2010 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 Statements of Operations (1)
|
|
(Dollars in
thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
Master lease rent
|
$
14,049
|
|
$
13,303
|
|
$
43,312
|
|
$
41,056
|
|
|
Property operating
|
57,078
|
|
47,716
|
|
163,280
|
|
140,008
|
|
|
Straight-line rent
|
1,109
|
|
639
|
|
3,536
|
|
1,989
|
|
|
Mortgage interest
|
1,776
|
|
601
|
|
5,250
|
|
1,708
|
|
|
Other operating
|
2,067
|
|
2,128
|
|
6,425
|
|
6,399
|
|
|
|
76,079
|
|
64,387
|
|
221,803
|
|
191,160
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
General and administrative
|
5,530
|
|
4,243
|
|
16,469
|
|
12,513
|
|
|
Property operating
|
30,851
|
|
26,681
|
|
87,423
|
|
75,116
|
|
|
Impairment
|
-
|
|
1,259
|
|
-
|
|
1,259
|
|
|
Bad debt, net
|
(353)
|
|
39
|
|
(80)
|
|
(438)
|
|
|
Depreciation
|
19,959
|
|
16,975
|
|
57,928
|
|
49,582
|
|
|
Amortization
|
2,214
|
|
1,237
|
|
5,753
|
|
3,869
|
|
|
|
58,201
|
|
50,434
|
|
167,493
|
|
141,901
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt
|
-
|
|
-
|
|
(1,986)
|
|
(480)
|
|
|
Interest expense
|
(17,928)
|
|
(15,923)
|
|
(57,546)
|
|
(47,803)
|
|
|
Interest and other income, net
|
205
|
|
187
|
|
636
|
|
1,799
|
|
|
|
(17,723)
|
|
(15,736)
|
|
(58,896)
|
|
(46,484)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
155
|
|
(1,783)
|
|
(4,586)
|
|
2,775
|
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
690
|
|
485
|
|
1,791
|
|
2,878
|
|
|
Impairments
|
(1,551)
|
|
(6,102)
|
|
(1,698)
|
|
(6,102)
|
|
|
Gain on sales of real estate properties
|
1,357
|
|
4,092
|
|
1,393
|
|
8,313
|
|
INCOME (LOSS) FROM DISCONTINUED OPERATIONS
|
496
|
|
(1,525)
|
|
1,486
|
|
5,089
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
651
|
|
(3,308)
|
|
(3,100)
|
|
7,864
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net (income) loss attributable to noncontrolling interests
|
(4)
|
|
60
|
|
(31)
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ 647
|
|
$
(3,248)
|
|
$
(3,131)
|
|
$
7,820
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
$
0.00
|
|
$
(0.03)
|
|
$
(0.06)
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
0.01
|
|
(0.02)
|
|
0.02
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders
|
$
0.01
|
|
$
(0.05)
|
|
$
(0.04)
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
$
0.00
|
|
$
(0.03)
|
|
$
(0.06)
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
0.01
|
|
(0.02)
|
|
0.02
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders
|
$
0.01
|
|
$
(0.05)
|
|
$
(0.04)
|
|
$
0.13
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC
|
76,139,055
|
|
62,369,773
|
|
71,478,463
|
|
61,232,810
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED
|
77,177,114
|
|
62,369,773
|
|
71,478,463
|
|
62,269,413
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Condensed
Consolidated Statements of Cash Flows (1)
|
|
(Dollars in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
651
|
|
$
(3,308)
|
|
$
(3,100)
|
|
$
7,864
|
|
|
|
Non-cash items:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization -
real estate
|
21,709
|
|
18,202
|
|
62,300
|
|
53,202
|
|
|
|
Depreciation and amortization -
other
|
1,757
|
|
1,358
|
|
5,084
|
|
4,282
|
|
|
|
Provision for bad debt,
net
|
(352)
|
|
39
|
|
(65)
|
|
(418)
|
|
|
|
Impairments
|
1,551
|
|
7,361
|
|
1,698
|
|
7,361
|
|
|
|
Straight-line rent
receivable
|
(1,098)
|
|
(604)
|
|
(3,493)
|
|
(1,923)
|
|
|
|
Straight-line rent
liability
|
123
|
|
103
|
|
369
|
|
309
|
|
|
|
Stock-based
compensation
|
670
|
|
525
|
|
2,272
|
|
1,845
|
|
|
|
Provision for deferred
post-retirement benefits
|
465
|
|
385
|
|
1,383
|
|
1,167
|
|
|
|
Other non-cash items
|
-
|
|
-
|
|
-
|
|
(542)
|
|
|
|
Total non-cash
items
|
24,825
|
|
27,369
|
|
69,548
|
|
65,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
(4,030)
|
|
4,171
|
|
(1,380)
|
|
9,358
|
|
|
|
Other liabilities
|
(182)
|
|
2,056
|
|
6,117
|
|
1,568
|
|
|
|
Other assets
|
844
|
|
(6,762)
|
|
(4,532)
|
|
(6,923)
|
|
|
|
Gain on sales of real estate
properties
|
(1,357)
|
|
(4,092)
|
|
(1,393)
|
|
(8,313)
|
|
|
|
Loss on extinguishment of
debt
|
-
|
|
-
|
|
1,986
|
|
480
|
|
|
|
Payment of partial pension
settlement
|
-
|
|
-
|
|
-
|
|
(342)
|
|
|
|
Total other
items
|
(4,725)
|
|
(4,627)
|
|
798
|
|
(4,172)
|
|
|
|
Net cash provided by operating
activities
|
20,751
|
|
19,434
|
|
67,246
|
|
68,975
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Acquisition and development of
real estate properties
|
(96,740)
|
|
(129,596)
|
|
(179,851)
|
|
(183,653)
|
|
|
Funding of mortgages and notes
receivable
|
(8,837)
|
|
(11,031)
|
|
(91,978)
|
|
(13,921)
|
|
|
Proceeds from sales of real
estate
|
1,218
|
|
9,698
|
|
4,993
|
|
33,321
|
|
|
Proceeds from mortgages and
notes receivable repayments
|
14,930
|
|
7,316
|
|
14,988
|
|
7,385
|
|
|
|
Net cash used in investing
activities
|
(89,429)
|
|
(123,613)
|
|
(251,848)
|
|
(156,868)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Net borrowings on unsecured credit facility
|
52,000
|
|
111,000
|
|
175,000
|
|
81,000
|
|
|
Repayments on notes and bonds payable
|
(921)
|
|
(648)
|
|
(2,537)
|
|
(1,759)
|
|
|
Repurchase of notes payable
|
-
|
|
-
|
|
(280,201)
|
|
(8,556)
|
|
|
Dividends paid
|
(23,348)
|
|
(19,111)
|
|
(65,918)
|
|
(56,481)
|
|
|
Proceeds from issuance of common stock
|
27,791
|
|
19,995
|
|
251,836
|
|
79,444
|
|
|
Purchase of noncontrolling interests
|
-
|
|
-
|
|
(1,591)
|
|
-
|
|
|
Common stock redemptions
|
-
|
|
-
|
|
(51)
|
|
-
|
|
|
Debt issuance and assumption costs
|
(566)
|
|
(201)
|
|
(922)
|
|
(716)
|
|
|
Capital contributions received from noncontrolling interest holders
|
-
|
|
16
|
|
-
|
|
686
|
|
|
Distributions to noncontrolling interest holders
|
-
|
|
(150)
|
|
(281)
|
|
(399)
|
|
|
|
Net cash provided by financing activities
|
54,956
|
|
110,901
|
|
75,335
|
|
93,219
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
(13,722)
|
|
6,722
|
|
(109,267)
|
|
5,326
|
|
Cash and cash equivalents, beginning of period
|
17,776
|
|
4,455
|
|
113,321
|
|
5,851
|
|
Cash and cash equivalents, end of period
|
$
4,054
|
|
$
11,177
|
|
$
4,054
|
|
$
11,177
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF FUNDS FROM
OPERATIONS (1) (2):
(Dollars in thousands, except
per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Common Stockholders
|
$
647
|
$
(3,248)
|
|
$
(3,131)
|
$
7,820
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of real estate properties
|
(1,357)
|
(4,092)
|
|
(1,393)
|
(8,313)
|
|
|
Real estate depreciation and amortization
|
21,709
|
18,075
|
|
62,173
|
52,843
|
|
|
Total adjustments
|
20,352
|
13,983
|
|
60,780
|
44,530
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations
|
$
20,999
|
$
10,735
|
|
$
57,649
|
$
52,350
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations Per Common Share - Diluted
|
$
0.27
|
$
0.17
|
|
$
0.79
|
$
0.84
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Diluted
|
77,177,114
|
63,424,706
|
|
72,570,555
|
62,269,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):
|
|
|
|
|
|
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
September
30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Common Stockholders
|
|
$
647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of real estate properties
|
|
(1,357)
|
|
|
|
|
|
Total non-cash items included in cash flows from operating activities (3)
|
|
24,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available For Distribution
|
|
$
24,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available For Distribution Per Common Share - Diluted
|
|
$
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Diluted
|
|
77,177,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORMALIZING OF FUNDS FROM OPERATIONS AND FUNDS AVAILABLE FOR DISTRIBUTION:
|
|
|
|
|
|
|
(Dollars in thousands, except per share data)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
September
30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations
|
|
$
20,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
|
|
1,551
|
|
|
|
|
|
Acquisition costs
|
|
400
|
|
|
|
|
|
Seasonal utilities
|
|
1,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized Funds From Operations
|
|
$
24,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized Funds From Operations Per Common Share - Diluted
|
|
$
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Diluted
|
|
77,177,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
September
30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Available For Distribution
|
|
$
24,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs
|
|
400
|
|
|
|
|
|
Seasonal utilities
|
|
1,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized Funds Available For Distribution
|
|
$
25,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized Funds Available For Distribution Per Common Share - Diluted
|
|
$
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding - Diluted
|
|
77,177,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (loss) attributable to common stockholders 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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
See the Condensed Consolidated Statements of Cash Flows that are included in this earnings release.
|
|
|
|
|
|
|
|
|
SOURCE Healthcare Realty Trust Incorporated