HEALTHCARE REALTY TRUST INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 30, 2014

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8-K - 8-K - HEALTHCARE REALTY TRUST INCa1q2014earningsform8-k.htm
EX-99.2 - EXHIBIT 99.2 - HEALTHCARE REALTY TRUST INCexhibit992supplementalinfo.htm



Carla Baca
Director of Corporate Communications
P: 615.269.8175
News Release
HEALTHCARE REALTY TRUST REPORTS NORMALIZED FFO OF $0.35 PER SHARE FOR THE FIRST QUARTER

NASHVILLE, Tennessee, April 30, 2014 - Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the first quarter ended March 31, 2014. Normalized FFO for the three months ended March 31, 2014 totaled $0.35 per diluted common share. Normalized FAD for the three months ended March 31, 2014 totaled $0.36 per diluted common share.

Salient highlights include:
•
Normalized FFO grew $5.7 million, or 20.3% year-over-year, to $33.5 million. Over the same time period, normalized FFO per share increased 9.4%.
•
The twelve development conversion properties generated NOI of $3.1 million and would have generated $3.6 million had all occupants been in place and paying rent for the entire quarter. Occupancy and leasing at these twelve properties increased to 66% and 81%, respectively.
•
Leases totaling 441,000 square feet were signed or renewed during the first quarter, on track with expectations, with tenant retention increasing to 82%.
•
Same store NOI grew by 0.5% year-over-year. Multi-tenant operating expenses, notably utilities and snow removal, were adversely affected by harsh winter conditions.
•
Occupancy at the same store properties remained stable at 91%.
•
A dividend of $0.30 per common share was declared for the first quarter of 2014, which is 83.3% of normalized FAD.

For the three months ended March 31, 2014, year-over-year revenues grew by $11.6 million to $91.9 million. The Company reported net income attributable to common stockholders for the quarter of $3.9 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 $3.2 billion in 201 real estate properties and mortgages as of March 31, 2014. The Company's 198 owned real estate properties are located in 28 states and total approximately 14.0 million square feet. The Company provides property management services to approximately 10.3 million square feet nationwide.
__________________________________________________________________________________________________________



 
 
 
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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, 2013 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.


 
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HEALTHCARE REALTY TRUST INCORPORATED
Condensed Consolidated Balance Sheets (1) 
(amounts in thousands, except per share data)
(Unaudited)
 
ASSETS
 
 
 
 
Real Estate Properties:
 
3/31/2014

 
12/31/2013

Land
 

$176,553

 

$178,931

Buildings, improvements and lease intangibles
 
2,903,471

 
2,861,935

Personal property
 
9,369

 
9,267

Land held for development
 
17,054

 
17,054

Total real estate properties
 
3,106,447

 
3,067,187

Less accumulated depreciation
 
(652,349
)
 
(632,109
)
Total real estate properties, net
 
2,454,098

 
2,435,078

Cash and cash equivalents
 
10,169

 
8,671

Mortgage notes receivable
 
86,372

 
125,547

Assets held for sale and discontinued operations, net
 
10,218

 
6,852

Other assets, net
 
160,267

 
153,514

Total assets
 

$2,721,124

 

$2,729,662

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Notes and bonds payable
 

$1,388,241

 

$1,348,459

Accounts payable and accrued liabilities
 
50,682

 
73,741

Liabilities of discontinued operations
 
971

 
1,112

Other liabilities
 
59,436

 
61,064

Total liabilities
 
1,499,330

 
1,484,376

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; 96,038 and 95,924 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively
 
960

 
959

Additional paid-in capital
 
2,326,889

 
2,325,228

Accumulated other comprehensive income
 
51

 
51

Cumulative net income attributable to common stockholders
 
812,214

 
808,362

Cumulative dividends
 
(1,919,925
)
 
(1,891,123
)
Total stockholders’ equity
 
1,220,189

 
1,243,477

Noncontrolling interests
 
1,605

 
1,809

Total equity
 
1,221,794

 
1,245,286

Total liabilities and equity
 

$2,721,124

 

$2,729,662

 
(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.


 
HEALTHCAREREALTY.COM  | PAGE 3 OF 6


HEALTHCARE REALTY TRUST INCORPORATED
Condensed Consolidated Statements of Operations (1) 
(amounts in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2014

 
2013

Revenues
 
 
 
 
Rental income
 

$87,829

 

$75,880

Mortgage interest
 
2,621

 
2,937

Other operating
 
1,449

 
1,456

 
 
91,899

 
80,273

Expenses
 
 
 
 
Property operating
 
33,431

 
29,452

General and administrative
 
5,978

 
6,540

Depreciation
 
24,134

 
21,180

Amortization
 
2,759

 
2,666

Bad debt, net of recoveries
 
47

 
(12
)
 
 
66,349

 
59,826

Other Income (Expense)
 
 
 
 
Interest expense
 
(17,918
)
 
(19,771
)
Interest and other income, net
 
100

 
231

 
 
(17,818
)
 
(19,540
)
 
 
 
 
 
Income From Continuing Operations
 
7,732

 
907

 
 
 
 
 
Discontinued Operations
 
 
 
 
Income (loss) from discontinued operations
 
(344
)
 
1,705

Impairments
 
(3,425
)
 
(3,630
)
Loss From Discontinued Operations
 
(3,769
)
 
(1,925
)
 
 
 
 
 
Net Income (Loss)
 
3,963

 
(1,018
)
Less: Net (income) loss attributable to noncontrolling interests
 
(111
)
 
19

Net Income (Loss) Attributable To Common Stockholders
 

$3,852

 

($999
)
Basic Earnings (Loss) Per Common Share:
 
 
 
 
Income from continuing operations
 

$0.08

 

$0.01

Discontinued operations
 
(0.04
)
 
(0.02
)
Net income (loss) attributable to common stockholders
 

$0.04

 

($0.01
)
Diluted Earnings (Loss) Per Common Share:
 
 
 
 
Income from continuing operations
 

$0.08

 

$0.01

Discontinued operations
 
(0.04
)
 
(0.02
)
Net income (loss) attributable to common stockholders
 

$0.04

 

($0.01
)
Weighted Average Common Shares Outstanding—Basic
 
94,152

 
86,894

Weighted Average Common Shares Outstanding—Diluted
 
95,585

 
88,382

(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.

 
HEALTHCAREREALTY.COM  | PAGE 4 OF 6


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,
 
 
 
2014

 
2013

Net Income (Loss) Attributable to Common Stockholders
 

$3,852

 

($999
)
Impairments
 
3,425

 
3,630

Real estate depreciation and amortization
 
26,248

 
23,958

Total adjustments
 
29,673

 
27,588

Funds From Operations
 

$33,525

 

$26,589

Acquisition costs
 
—

 
219

Write-off deferred financing costs upon renewal of line of credit
 
—

 
252

Interest incurred related to the timing of insurance/redemption of senior notes
 
—

 
188

Severance costs included in general and administrative expenses
 
—

 
609

Normalized Funds From Operations
 

$33,525

 

$27,857

Funds from Operations per Common Share—Diluted
 

$0.35

 

$0.30

Normalized Funds From Operations Per Common Share—Diluted
 

$0.35

 

$0.32

FFO Weighted Average Common Shares Outstanding
 
95,585

 
88,382

Normalized FFO Weighted Average Common Shares Outstanding
 
95,585

 
88,382



(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 does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs. FFO should not be considered an alternative to net income attributable to common stockholders as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.









 
HEALTHCAREREALTY.COM  | PAGE 5 OF 6


HEALTHCARE REALTY TRUST INCORPORATED
Reconciliation of FAD and Normalized FAD (1) 
(amounts in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2014

 
2013

Net Income (Loss) Attributable to Common Stockholders
 

$3,852

 

($999
)
Impairments
 
3,425

 
3,630

Depreciation and amortization
 
28,049

 
25,868

Provision for bad debt, net
 
47

 
(12
)
Straight-line rent receivable
 
(2,303
)
 
(1,680
)
Straight-line rent liability
 
108

 
102

Stock-based compensation
 
1,516

 
1,848

Provision for deferred post-retirement benefits
 
13

 
217

Total non-cash items included in cash flows from operating activities
 
30,855

 
29,973

Funds Available For Distribution
 

$34,707

 

$28,974

Acquisition costs
 
—

 
219

Write-off deferred financing costs upon renewal of line of credit
 
—

 
252

Interest incurred related to the timing of insurance/redemption of senior notes
 
—

 
188

Severance costs included in general and administrative expenses excluding stock based compensation
 
—

 
218

Normalized Funds Available For Distribution
 

$34,707

 

$29,851

Funds Available For Distribution Per Common Share—Diluted
 

$0.36

 

$0.33

Normalized Funds Available For Distribution Per Common Share—Diluted
 

$0.36

 

$0.34

FAD Weighted Average Common Shares Outstanding
 
95,485

 
88,382

Normalized FAD Weighted Average Common Shares Outstanding
 
95,485

 
88,382



(1)
Funds Available For Distribution (“FAD”) does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and is not necessarily indicative of cash available to fund cash needs. FAD should not be considered an alternative to net income attributable to common stockholders as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.

 
HEALTHCAREREALTY.COM  | PAGE 6 OF 6

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