HR Healthcare Realty Trust Incorporated

Healthcare Realty Trust Announces Third Quarter Results NASHVILLE, Tenn., Oct. 30 /PRNewswire-FirstCall/ -- Healthcare Realty Trust Incorporated today announced results for the third quarter that ended September 30, 2003. Revenues for the third quarter totaled $48.6 million, compared with the prior year's $49.8 million. Net income for the period was $17.4 million, or $0.42 per diluted common share, versus $20.5 million, or $0.44 per diluted common share, for the third quarter of 2002. Funds from operations ("FFO"), calculated according to the definition of the National Association of Real Estate Investment Trusts and comprised primarily of net income and depreciation from real estate, totaled $28.2 million for the third quarter of 2003, compared with $28.7 million for the same period in 2002. FFO per diluted common share for the third quarter of 2003 totaled $0.68, compared with $0.69 for the third quarter of 2002. A reconciliation of FFO to net income follows. Revenues for the nine months ended September 30, 2003 totaled $144.8 million compared with the prior year's $147.8 million. Net income for the nine-month period was $53.7 million, or $1.29 per diluted common share, versus $62.6 million, or $1.38 per diluted common share, for the first nine months of 2002. Diluted funds from operations totaled $84.9 million for the first nine months ended September 30, 2003, compared with $85.1 million for the same period ended September 30, 2002. Funds from operations, per diluted common share, for the first nine months of 2003 was $2.04, compared with $2.05 for the same period in 2002. Healthcare Realty Trust is a real estate investment trust that integrates owning, managing and developing income-producing real estate properties associated with the delivery of healthcare services throughout the United States. As of September 30, 2003, the Company's portfolio was comprised of ten major facility types, located in 30 states, and operated pursuant to contractual arrangements with 62 healthcare providers. The Company had investments of approximately $1.7 billion in 220 real estate properties or mortgages, totaling approximately 11.6 million square feet. The Company provided property management services to almost five million square feet nationwide. The Company directs interested parties to its Internet page site, http://www.healthcarerealty.com/, where material 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 a 10-K filed with the SEC by Healthcare Realty Trust for the year ended December 31, 2002. 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 Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Revenues: Master lease rental income $22,082 $25,276 $68,509 $74,855 Property operating income 21,997 19,626 63,190 57,627 Straight line rent 811 1,017 2,081 2,248 Mortgage interest income 2,710 3,292 7,678 10,614 Interest and other income 994 607 3,336 2,437 48,594 49,818 144,794 147,781 Expenses: General and administrative 2,701 3,140 8,235 8,374 Property operating expenses 8,758 7,486 25,062 22,348 Interest 8,627 8,529 25,637 25,966 Depreciation 10,585 10,386 31,500 31,267 Amortization 13 29 40 105 30,684 29,570 90,474 88,060 Net income before net gain (loss) on sale of real estate properties 17,910 20,248 54,320 59,721 Net gain (loss) on sale of real estate properties (461) 242 (668) 2, 872 Net income $17,449 $20,490 $53,652 $62,593 Net income per common share - $0.42 $0.45 $1.31 $1.40 Basic Net income per common share - $0.42 $0.44 $1.29 $1.38 Diluted Weighted average common shares outstanding - Basic 41,087,329 40,682,210 40,939,067 40,601,065 Weighted average common shares outstanding - Diluted 41,732,935 41,487,797 41,636,126 41,450,671 HEALTHCARE REALTY TRUST INCORPORATED Reconciliation of Funds From Operations (1) (Unaudited) (Dollars in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Net income (2) $17,449 $20,490 $53,652 $62,593 Net (gain) loss on sale of real estate properties 461 (242) 668 (2,872) Preferred stock dividend 0 (1,664) 0 (4,992) Real estate depreciation 10,308 10,094 30,628 30,411 Total adjustments 10,769 8,188 31,296 22,547 Funds from operations - Basic and Diluted $28,218 $28,678 $84,948 $85,140 Funds from operations per common share - Basic $0.69 $0.70 $2.08 $2.10 Funds from operations per common share - Diluted $0.68 $0.69 $2.04 $2.05 Weighted average common shares outstanding - Basic 41,087,329 40,682,210 40,939,067 40,601,065 Weighted average common shares outstanding - Diluted 41,732,935 41,487,797 41,636,126 41,450,671 (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"). Beginning with the first quarter of 2003, the Company calculated and reported FFO and FFO per share in accordance with NAREIT's April 2002 White Paper. NAREIT defines FFO as "The most commonly accepted and reported measure of REIT operating performance equal to a REIT's net income, excluding gains or losses from sales of property and adding back real estate depreciation." The Company considers FFO to be an informative measure of REIT performance commonly used in the REIT industry. However, FFO does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States ("GAAP") and is not necessarily indicative of cash available to fund cash needs. FFO should not be considered an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flow as a measure of liquidity. (2) Net income includes non-cash deferred compensation of $688 and $778, respectively, for the three months ended September 30, 2003 and 2002, and $2.1 million and $2.3 million, respectively, for the nine months ended September 30, 2003 and 2002. Healthcare Realty Trust maintains a website: http://www.healthcarerealty.com/ to provide general corporate, investor and financial information. DATASOURCE: Healthcare Realty Trust Incorporated CONTACT: Scott W. Holmes, Senior Vice President and Chief Financial Officer of Healthcare Realty Trust Incorporated, +1-615-269-8175 Web site: http://www.healthcarerealty.com/ Company News On-Call: http://www.prnewswire.com/comp/112435.html

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