NASHVILLE, Tenn., Feb. 23 /PRNewswire-FirstCall/ -- Healthcare Realty
Trust Incorporated (NYSE: HR) today announced results for the fourth quarter
ended December 31, 2008. Funds from operations (''FFO'') per diluted common
share for the three months ended December 31, 2008 totaled $0.49, which
includes the net positive effect of certain one-time items totaling $6.5
million, or $0.11 per diluted common share, compared with FFO per diluted
common share for the three months ended December 31, 2007, which totaled
$0.39. FFO per diluted common share totaled $1.63 for the twelve months ended
December 31, 2008, compared with the prior year's $1.51. Funds available for
distribution ('FAD') for the three months ended December 31, 2008 totaled
$0.54 per diluted common share.
Revenues for the three months ended December 31, 2008 totaled $57.1
million, compared with the prior year's $50.3 million. Revenues for the
twelve months ended December 31, 2008 totaled $214.2 million, compared with
the prior year's $197.4 million. Income from continuing operations for the
three months ended December 31, 2008 totaled $6.8 million, compared with $3.3
million for the three months ended December 31, 2007. Income from continuing
operations for the twelve months ended December 31, 2008 totaled $18.2
million, compared with the prior year's $11.2 million.
Net income for the three months ended December 31, 2008 totaled $15.6
million, or $0.27 per diluted common share, versus $4.6 million, or $0.09 per
diluted common share, for the three months ended 2007. Net income for the
twelve months ended December 31, 2008 totaled $41.7 million, or $0.79 per
diluted common share, compared with $60.1 million, or $1.24 per diluted common
share for the twelve months ended December 31, 2007. Net income for the
twelve months ended December 31, 2008, as compared to 2007, was affected by
the disposition of the senior living assets and resulting gain included in
discontinued operations in 2007.
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 198 real estate properties and mortgages as of December 31,
2008, excluding assets classified as held for sale and including investments
in two unconsolidated joint ventures. The Company's 192 owned real estate
properties, excluding assets classified as held for sale, are comprised of six
facility types, located in 27 states, totaling approximately 11.7 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,
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 may be 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
(Unaudited)
REVENUES
Master lease rent $14,743 $14,141 $58,412 $56,401
Property operating 37,052 31,433 136,745 121,644
Straight-line rent 709 279 622 934
Mortgage interest 561 536 2,207 1,752
Other operating 4,009 3,908 16,255 16,640
57,074 50,297 214,241 197,371
EXPENSES
General and
administrative 5,588 4,889 23,514 20,619
Property operating 23,204 18,344 82,420 71,671
Impairment - - 1,600 -
Bad debts, net of
recoveries 1,478 92 1,833 222
Depreciation 13,043 11,419 48,283 42,254
Amortization 930 931 2,849 4,528
44,243 35,675 160,499 139,294
OTHER INCOME (EXPENSE)
Gain on extinguishment
of debt, net 2,079 - 4,102 -
Interest expense (9,748) (11,488) (42,126) (48,307)
Interest and other
income, net 1,632 133 2,440 1,459
(6,037) (11,355) (35,584) (46,848)
INCOME FROM CONTINUING
OPERATIONS 6,794 3,267 18,158 11,229
DISCONTINUED OPERATIONS (2)
Income from
discontinued
operations 8,917 2,615 14,577 15,517
Impairments (857) (240) (886) (7,089)
Gain on sales of
real estate properties 745 (1,054) 9,843 40,405
INCOME FROM DISCONTINUED
OPERATIONS 8,805 1,321 23,534 48,833
NET INCOME $15,599 $4,588 $41,692 $60,062
BASIC EARNINGS PER
COMMON SHARE
Income from continuing
operations per
common share $0.12 $0.07 $0.35 $0.24
Discontinued operations
per common share 0.15 0.02 0.46 1.02
Net income per
common share $0.27 $0.09 $0.81 $1.26
DILUTED EARNINGS PER
COMMON SHARE
Income from continuing
operations per
common share $0.12 $0.06 $0.35 $0.23
Discontinued operations
per common share 0.15 0.03 0.44 1.01
Net income per
common share $0.27 $0.09 $0.79 $1.24
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
BASIC 57,765,614 49,488,943 51,547,279 47,536,133
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
DILUTED 58,705,348 50,348,217 52,564,944 48,291,330
(1)The 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 Consolidated Statements of Income.
HEALTHCARE REALTY TRUST INCORPORATED
Consolidated Statements of Cash Flows (1)
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Cash flows from operating
activities:
Net income $15,599 $4,588 $41,692 $60,062
Non-cash items:
Depreciation and amortization
- real estate 13,769 13,081 52,069 51,692
Depreciation and amortization
- other 811 551 2,679 2,232
Provision for bad debt, net
of recoveries 1,478 83 1,904 198
Impairments 857 240 2,486 7,089
Straight-line rent receivable (718) (308) (643) (1,043)
Straight-line rent liability 276 46 423 954
Equity in (income) losses
from unconsolidated joint
ventures (1,114) 250 (1,021) 309
Consolidated losses from
variable interest entities - 24 - 700
Stock-based compensation (707) 1,002 2,780 4,678
Provision for deferred post-
retirement benefits 2,510 779 4,992 2,323
Other non-cash items (13) 87 559 195
Total non-cash items 17,149 15,835 66,228 69,327
Other items:
Accounts payable and accrued
liabilities (6,556) (235) 3,097 (2,065)
Other liabilities 3,812 3,897 3,740 4,445
Other assets 1,765 1,407 6,794 (307)
Gain on sales of real estate
properties (745) 1,054 (9,843) (40,405)
Gain on sale of land (384) - (384) -
Gain on extinguishment of
debt (2,079) - (4,102) -
State income taxes paid, net
of refunds 39 (30) (612) (137)
Total other items (4,148) 6,093 (1,310) (38,469)
Net cash provided by
operating activities 28,600 26,516 106,610 90,920
Cash flows from investing
activities:
Acquisition and development of
real estate properties (245,250) (24,084) (383,702) (130,799)
Funding of mortgages and notes
receivable (24,451) (10,739) (36,970) (14,759)
Distributions received from
unconsolidated joint ventures - 287 882 1,414
Partial redemption of preferred
equity investment in
unconsolidated joint ventures - - 5,546 -
Proceeds from sales of real
estate 12,452 14,586 37,133 311,927
Proceeds from mortgages and
notes receivable repayments 5,602 27 8,236 65,572
Net cash provided by (used
in) investing activities (251,647) (19,923) (368,875) 233,355
Cash flows from financing
activities:
Net borrowings (repayments) on
unsecured credit facility 261,000 6,000 193,000 (54,000)
Borrowings on notes and bonds
payable - - - 1,840
Repayments on notes and bonds
payable (1,093) (884) (3,813) (7,440)
Repurchase of notes payable (14,222) - (45,460) -
Special dividend paid - - - (227,157)
Quarterly dividends paid (22,692) (19,514) (81,301) (101,137)
Proceeds from issuance of
common stock 193 220 197,255 70,780
Equity issuance costs (357) (16) (389) (206)
Common stock redemption - - (282) (386)
Credit facility amendment and
extension fees (800) - (1,126) -
Net cash provided by (used
in) financing activities 222,029 (14,194) 257,884 (317,706)
Increase (decrease) in cash and
cash equivalents (1,018) (7,601) (4,381) 6,569
Cash and cash equivalents,
beginning of period 5,156 16,120 8,519 1,950
Cash and cash equivalents, end of
period $4,138 $8,519 $4,138 $8,519
(1)The 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 Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Net Income $15,599 $4,588 $41,692 $60,062
Gain on sales of real
estate properties (1,129) 1,054 (10,227) (40,405)
Real estate
depreciation and
amortization 14,094 13,764 53,972 53,499
Total adjustments 12,965 14,818 43,745 13,094
Funds From Operations -
Basic and Diluted $28,564 $19,406 $85,437 $73,156
Funds From Operations
Per Common Share -
Basic $0.49 $0.39 $1.66 $1.54
Funds From Operations
Per Common Share -
Diluted $0.49 $0.39 $1.63 $1.51
Weighted Average Common
Shares Outstanding -
Basic 57,765,614 49,488,943 51,547,279 47,536,133
Weighted Average Common
Shares Outstanding -
Diluted 58,705,348 50,348,217 52,564,944 48,291,330
RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
December 31, 2008
Net Income $15,599
Gain on sales of real
estate properties (1,129)
Total non-cash items
included in cash
flows from operating
activities (3) 17,149
Funds Available For
Distribution $31,619
Funds Available For
Distribution Per Common
Share - Diluted $0.54
Weighted Average Common
Shares Outstanding -
Diluted 58,705,348
(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 Consolidated Statements of Cash Flows that are included in this
earnings release.
SOURCE Healthcare Realty Trust Incorporated
