Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HEALTHCARE REALTY TRUST INC | g22137e8vk.htm |
| EX-99.2 - EX-99.2 - HEALTHCARE REALTY TRUST INC | g22137exv99w2.htm |
Exhibit 99.1
HEALTHCARE REALTY
Gabrielle M. Andrés
Corporate Communications
P 615.269.8175
www.healthcarerealty.com
Gabrielle M. Andrés
Corporate Communications
P 615.269.8175
www.healthcarerealty.com
NEWS
RELEASE
HEALTHCARE
REALTY TRUST ANNOUNCES FOURTH QUARTER RESULTS
NASHVILLE, Tennessee, February 22, 2010 — Healthcare Realty Trust Incorporated (NYSE:HR) today
announced results for the fourth quarter ended December 31,
2009. Funds from operations (“FFO,” as defined by the
National Association of Real Estate Investment Trusts, “NAREIT”)
per diluted common share for the three months ended December 31, 2009 totaled $0.35, compared with
$0.49 for the three months ended December 31, 2008. FFO per diluted common share totaled $1.66 for
the twelve months ended December 31, 2009, compared with the prior year’s $1.63.
Funds available for distribution (“FAD”) for the three months ended December 31, 2009 totaled $0.39
per diluted common share.
Revenues for the three months ended December 31, 2009 totaled $63.7 million, compared with the
prior year’s $57.0 million. Revenues for the twelve months ended December 31, 2009 totaled $253.3
million, compared with the prior year’s $213.9 million. Income from continuing operations for the
three months ended December 31, 2009 totaled $3.9 million, compared with $6.9 million for the three
months ended December 31, 2008. Income from continuing operations for the twelve months ended
December 31, 2009 totaled $28.2 million, compared with the prior year’s $18.2 million.
Net income attributable to common stockholders for the three months ended December 31, 2009 totaled
$4.4 million, or $0.07 per diluted common share, versus $15.6 million, or $0.27 per diluted common
share, for the three months ended December 31, 2008. Net income attributable to common stockholders for the
twelve months ended December 31, 2009 totaled $51.1 million, or $0.87 per diluted common share,
compared with $41.7 million, or $0.79 per diluted common share for the twelve months ended December
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 $2.3 billion in 204 real estate properties and mortgages as of December 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 12.3
million square feet. The Company provides property management services to approximately 9.3
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, 2009 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
Consolidated Statements of Income (1)
(Dollars in thousands, except per share data)
(Unaudited)
Consolidated Statements of Income (1)
(Dollars in thousands, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
REVENUES |
||||||||||||||||
Master lease rent |
$ | 14,598 | $ | 14,657 | $ | 57,648 | $ | 58,073 | ||||||||
Property operating |
45,615 | 37,053 | 180,024 | 136,745 | ||||||||||||
Straight-line rent |
598 | 717 | 2,027 | 651 | ||||||||||||
Mortgage interest |
520 | 561 | 2,646 | 2,207 | ||||||||||||
Other operating |
2,333 | 4,009 | 10,959 | 16,255 | ||||||||||||
| 63,664 | 56,997 | 253,304 | 213,931 | |||||||||||||
EXPENSES |
||||||||||||||||
General and administrative |
5,090 | 5,588 | 22,493 | 23,514 | ||||||||||||
Property operating |
24,235 | 23,108 | 95,141 | 82,223 | ||||||||||||
Impairment |
— | — | — | 1,600 | ||||||||||||
Bad debts, net of recoveries |
108 | 1,478 | 537 | 1,833 | ||||||||||||
Depreciation |
16,076 | 12,972 | 62,447 | 48,129 | ||||||||||||
Amortization |
1,196 | 930 | 5,259 | 2,849 | ||||||||||||
| 46,705 | 44,076 | 185,877 | 160,148 | |||||||||||||
OTHER INCOME (EXPENSE) |
||||||||||||||||
Gain on extinguishment of debt, net |
— | 2,079 | — | 4,102 | ||||||||||||
Re-measurement gain of equity interest upon acquisition |
— | — | 2,701 | — | ||||||||||||
Interest expense |
(13,549 | ) | (9,748 | ) | (43,080 | ) | (42,126 | ) | ||||||||
Interest and other income, net |
498 | 1,632 | 1,173 | 2,439 | ||||||||||||
| (13,051 | ) | (6,037 | ) | (39,206 | ) | (35,585 | ) | |||||||||
INCOME FROM CONTINUING OPERATIONS |
3,908 | 6,884 | 28,221 | 18,198 | ||||||||||||
DISCONTINUED OPERATIONS |
||||||||||||||||
Income from discontinued operations |
507 | 8,843 | 2,813 | 14,605 | ||||||||||||
Impairments |
— | (857 | ) | (22 | ) | (886 | ) | |||||||||
Gain on sales of real estate properties |
— | 745 | 20,136 | 9,843 | ||||||||||||
INCOME FROM DISCONTINUED OPERATIONS |
507 | 8,731 | 22,927 | 23,562 | ||||||||||||
NET INCOME |
4,415 | 15,615 | 51,148 | 41,760 | ||||||||||||
Less: Net income attributable to noncontrolling interests |
(45 | ) | (16 | ) | (57 | ) | (68 | ) | ||||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ | 4,370 | $ | 15,599 | $ | 51,091 | $ | 41,692 | ||||||||
BASIC EARNINGS PER COMMON SHARE |
||||||||||||||||
Income from continuing operations |
$ | 0.07 | $ | 0.12 | $ | 0.48 | $ | 0.35 | ||||||||
Discontinued operations |
— | 0.15 | 0.40 | 0.46 | ||||||||||||
Net income attributable to common stockholders |
$ | 0.07 | $ | 0.27 | $ | 0.88 | $ | 0.81 | ||||||||
DILUTED EARNINGS PER COMMON SHARE |
||||||||||||||||
Income from continuing operations |
$ | 0.07 | $ | 0.12 | $ | 0.48 | $ | 0.35 | ||||||||
Discontinued operations |
— | 0.15 | 0.39 | 0.44 | ||||||||||||
Net income attributable to common stockholders |
$ | 0.07 | $ | 0.27 | $ | 0.87 | $ | 0.79 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — BASIC |
58,357,290 | 57,765,614 | 58,199,592 | 51,547,279 | ||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — DILUTED |
59,311,720 | 58,705,348 | 59,047,314 | 52,564,944 | ||||||||||||
| (1) | The Consolidated Statements of Income 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. |
2
HEALTHCARE REALTY TRUST INCORPORATED
Consolidated Statements of Cash Flows (1)
(Dollars in thousands)
(Unaudited)
Consolidated Statements of Cash Flows (1)
(Dollars in thousands)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Cash flows from operating activities: |
||||||||||||||||
Net income |
$ | 4,415 | $ | 15,615 | $ | 51,148 | $ | 41,760 | ||||||||
Non-cash
items: |
||||||||||||||||
Depreciation and amortization — real estate |
16,539 | 13,769 | 66,914 | 52,069 | ||||||||||||
Depreciation and amortization — other |
1,493 | 812 | 4,007 | 2,679 | ||||||||||||
Provision for bad debts, net of recoveries |
108 | 1,478 | 517 | 1,904 | ||||||||||||
Impairments |
— | 857 | 22 | 2,486 | ||||||||||||
Straight-line rent receivable |
(577 | ) | (718 | ) | (1,925 | ) | (643 | ) | ||||||||
Straight-line rent liability |
108 | 276 | 444 | 423 | ||||||||||||
Equity in (income) losses from unconsolidated joint ventures |
— | (1,114 | ) | 2 | (1,021 | ) | ||||||||||
Stock-based compensation |
425 | (707 | ) | 3,711 | 2,780 | |||||||||||
Provision for deferred post-retirement benefits |
417 | 2,510 | 2,860 | 4,992 | ||||||||||||
Re-measurement gain of equity interest upon acquisition |
— | — | (2,701 | ) | — | |||||||||||
Other non-cash items |
(38 | ) | (13 | ) | 723 | 559 | ||||||||||
Total non-cash items |
18,475 | 17,150 | 74,574 | 66,228 | ||||||||||||
Other
items: |
||||||||||||||||
Accounts payable and accrued liabilities |
(6,857 | ) | (6,556 | ) | 5,127 | 3,097 | ||||||||||
Other liabilities |
4,864 | 3,280 | (3,508 | ) | 2,313 | |||||||||||
Other assets |
(65 | ) | 1,765 | (1,017 | ) | 6,794 | ||||||||||
Gain on sales of real estate properties |
— | (745 | ) | (20,136 | ) | (9,843 | ) | |||||||||
Gain on sale of land |
— | (384 | ) | — | (384 | ) | ||||||||||
Gain on extinguishment of debt |
— | (2,079 | ) | — | (4,102 | ) | ||||||||||
Payment of partial pension settlement |
— | — | (2,300 | ) | — | |||||||||||
State income taxes paid, net of refunds |
(12 | ) | 39 | (674 | ) | (612 | ) | |||||||||
Total other items |
(2,070 | ) | (4,680 | ) | (22,508 | ) | (2,737 | ) | ||||||||
Net cash provided by operating activities |
20,820 | 28,085 | 103,214 | 105,251 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Acquisition and development of real estate properties |
(71,254 | ) | (245,250 | ) | (170,520 | ) | (383,702 | ) | ||||||||
Funding of mortgages and notes receivable |
(10,208 | ) | (24,451 | ) | (23,391 | ) | (36,970 | ) | ||||||||
Investment in unconsolidated joint ventures |
— | — | (184 | ) | — | |||||||||||
Distributions received from unconsolidated joint ventures |
— | — | — | 882 | ||||||||||||
Partial redemption of preferred equity investment in an unconsolidated joint venture |
— | — | — | 5,546 | ||||||||||||
Proceeds from sales of real estate |
— | 12,452 | 83,441 | 37,133 | ||||||||||||
Proceeds from mortgages and notes receivable repayments |
12,688 | 5,602 | 12,893 | 8,236 | ||||||||||||
Net cash used in investing activities |
(68,774 | ) | (251,647 | ) | (97,761 | ) | (368,875 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Net borrowings (repayments) on unsecured credit facilities |
(323,000 | ) | 261,000 | (279,000 | ) | 193,000 | ||||||||||
Borrowings on notes and bonds payable |
377,969 | — | 377,969 | — | ||||||||||||
Repayments on notes and bonds payable |
(5,793 | ) | (1,093 | ) | (28,433 | ) | (3,813 | ) | ||||||||
Repurchase of notes payable |
(14,222 | ) | — | (45,460 | ) | |||||||||||
Quarterly dividends paid |
(22,855 | ) | (22,692 | ) | (91,385 | ) | (81,301 | ) | ||||||||
Proceeds from issuance of common stock |
25,933 | 193 | 26,467 | 197,255 | ||||||||||||
Equity issuance costs |
(3 | ) | (357 | ) | (3 | ) | (389 | ) | ||||||||
Common stock redemption |
— | — | (8 | ) | (282 | ) | ||||||||||
Debt issuance costs |
(3,900 | ) | — | (11,293 | ) | — | ||||||||||
Credit facility amendment and extension fees |
— | (800 | ) | — | (1,126 | ) | ||||||||||
Capital contributions received from noncontrolling interests |
457 | 573 | 2,228 | 1,469 | ||||||||||||
Distributions to noncontrolling interests |
(91 | ) | (58 | ) | (282 | ) | (110 | ) | ||||||||
Net cash provided by (used in) financing activities |
48,717 | 222,544 | (3,740 | ) | 259,243 | |||||||||||
Increase (decrease) in cash and cash equivalents |
763 | (1,018 | ) | 1,713 | (4,381 | ) | ||||||||||
Cash and cash equivalents, beginning of period |
5,088 | 5,156 | 4,138 | 8,519 | ||||||||||||
Cash and cash equivalents, end of period |
$ | 5,851 | $ | 4,138 | $ | 5,851 | $ | 4,138 | ||||||||
| (1) | The Consolidated Statements of Cash Flows do not include all of the information and footnotes required by accounting principles generally accepted in United States of America for complete financial statements. |
3
RECONCILIATION OF FUNDS FROM OPERATIONS (1) (2):
(Dollars in thousands, except per share data)
(Unaudited)
(Dollars in thousands, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net Income Attributable to Common Stockholders |
$ | 4,370 | $ | 15,599 | $ | 51,091 | $ | 41,692 | ||||||||
Gain on sales of real estate properties |
— | (1,129 | ) | (20,136 | ) | (10,227 | ) | |||||||||
Real estate depreciation and amortization |
16,539 | 14,094 | 66,927 | 53,972 | ||||||||||||
Total adjustments |
16,539 | 12,965 | 46,791 | 43,745 | ||||||||||||
Funds From Operations — Basic and Diluted |
$ | 20,909 | $ | 28,564 | $ | 97,882 | $ | 85,437 | ||||||||
Funds From Operations Per Common Share — Basic |
$ | 0.36 | $ | 0.49 | $ | 1.68 | $ | 1.66 | ||||||||
Funds From Operations Per Common Share — Diluted |
$ | 0.35 | $ | 0.49 | $ | 1.66 | $ | 1.63 | ||||||||
Weighted Average Common Shares Outstanding — Basic |
58,357,290 | 57,765,614 | 58,199,592 | 51,547,279 | ||||||||||||
Weighted Average Common Shares Outstanding — Diluted |
59,311,720 | 58,705,348 | 59,047,314 | 52,564,944 | ||||||||||||
RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):
(Dollars in thousands, except per share data)
(Unaudited)
(Dollars in thousands, except per share data)
(Unaudited)
| ` | Three Months Ended | |||
| December 31, 2009 | ||||
Net Income Attributable to Common Stockholders |
$ | 4,370 | ||
Gain on sales of real estate properties |
— | |||
Total non-cash items included in cash flows from operating activities (3) |
18,475 | |||
Funds Available For Distribution |
$ | 22,845 | ||
Funds Available For Distribution Per Common Share —
Diluted |
$ | 0.39 | ||
Weighted Average Common Shares Outstanding — Diluted |
59,311,720 | |||
| (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 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 Consolidated Statements of Cash Flows that are included in this earnings release. |
4