NASHVILLE, Tenn., July 30, 2014 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the second quarter ended June30, 2014. Normalized FFO for the three months ended June30, 2014 totaled $0.36 per diluted common share. Normalized FAD for the three months ended June30, 2014 totaled $0.37 per diluted common share.
Salient highlights include:
- Normalized FFO of $0.36 per share compared to NAREIT FFO of $0.38 per share reflects a cash reimbursement of $1.9 million for certain operating expenses incurred in prior years.
- Normalized FFO grew $5.5 million, or 19.2% year-over-year, to $34.2 million. Over the same time period, normalized FFO per share increased 12.5%.
- In May, Healthcare Realty assumed ownership of the outpatient facility in Oklahoma City, which was previously funded by the Company through a construction loan. The 200,000 square foot property is 100% leased to "AA-" rated Mercy Health.
- In June, the Company purchased two on-campus medical office buildings totaling 83,000 square feet for a total purchase price of $15.2 million. These properties are 97% leased and located in Austin, Texas and Greensboro, North Carolina.
- In July, the Company acquired a 60,000 square foot medical office building in Minneapolis for a purchase price of $19.9 million. The property is 100% leased and connected to Unity Hospital, a 220-bed hospital owned by Allina Health.
- The twelve development conversion properties generated NOI of $3.4 million and would have generated $4.1 million had all occupants been in place and paying rent for the entire quarter. Occupancy and leasing at these twelve properties increased to 70% and 82%, respectively.
- Same store NOI grew by 2.1% year-over-year and occupancy remained stable at 91%.
- Leases totaling 445,000 square feet were signed or renewed during the second quarter with tenant retention increasing to 87%.
- A dividend of $0.30 per common share was declared for the second quarter of 2014, which is 81.1% of normalized FAD.
For the three months ended June30, 2014, year-over-year revenue grew by $11.1 million to $92.9 million. The Company reported net income attributable to common stockholders for the quarter of $6.0 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 202 real estate properties and mortgages as of June30, 2014. The Company's 200 owned real estate properties are located in 29 states and total approximately 14.3 million square feet. The Company provides property management services to approximately 9.7 million square feet nationwide.
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.
HEALTHCARE REALTY TRUST INCORPORATED Condensed Consolidated Balance Sheets (1) (amounts in thousands, except per share data) (Unaudited) | ||||||||
ASSETS | ||||||||
Real Estate Properties: | 6/30/2014 | 12/31/2013 | ||||||
Land | $183,581 | $178,931 | ||||||
Buildings, improvements and lease intangibles | 3,014,422 | 2,861,935 | ||||||
Personal property | 9,504 | 9,267 | ||||||
Land held for development | 17,054 | 17,054 | ||||||
Total real estate properties | 3,224,561 | 3,067,187 | ||||||
Less accumulated depreciation | (675,890) | (632,109) | ||||||
Total real estate properties, net | 2,548,671 | 2,435,078 | ||||||
Cash and cash equivalents | 17,523 | 8,671 | ||||||
Mortgage notes receivable | 4,858 | 125,547 | ||||||
Assets held for sale and discontinued operations, net | 5,759 | 6,852 | ||||||
Other assets, net | 173,299 | 153,514 | ||||||
Total assets | $2,750,110 | $2,729,662 | ||||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Notes and bonds payable | $1,397,027 | $1,348,459 | ||||||
Accounts payable and accrued liabilities | 72,460 | 73,741 | ||||||
Liabilities of discontinued operations | 1,041 | 1,112 | ||||||
Other liabilities | 60,232 | 61,064 | ||||||
Total liabilities | 1,530,760 | 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; 97,172 and 95,924 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 972 | 959 | ||||||
Additional paid-in capital | 2,348,925 | 2,325,228 | ||||||
Accumulated other comprehensive income | 51 | 51 | ||||||
Cumulative net income attributable to common stockholders | 818,185 | 808,362 | ||||||
Cumulative dividends | (1,948,783) | (1,891,123) | ||||||
Total stockholders' equity | 1,219,350 | 1,243,477 | ||||||
Noncontrolling interests | - | 1,809 | ||||||
Total equity | 1,219,350 | 1,245,286 | ||||||
Total liabilities and equity | $2,750,110 | $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. |
HEALTHCARE REALTY TRUST INCORPORATED Condensed Consolidated Statements of Operations (1) (amounts in thousands, except per share data) (Unaudited) | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenues | ||||||||||||||||||||
Rental income | $90,541 | $76,883 | $178,301 | $152,687 | ||||||||||||||||
Mortgage interest | 969 | 3,427 | 3,590 | 6,364 | ||||||||||||||||
Other operating | 1,425 | 1,508 | 2,874 | 2,964 | ||||||||||||||||
92,935 | 81,818 | 184,765 | 162,015 | |||||||||||||||||
Expenses | ||||||||||||||||||||
Property operating | 34,136 | 31,235 | 67,510 | 60,636 | ||||||||||||||||
General and administrative | 5,666 | 5,840 | 11,644 | 12,380 | ||||||||||||||||
Depreciation | 24,911 | 21,379 | 48,990 | 42,501 | ||||||||||||||||
Amortization | 2,775 | 2,559 | 5,534 | 5,225 | ||||||||||||||||
Bad debt, net of recoveries | 73 | 19 | 120 | 7 | ||||||||||||||||
67,561 | 61,032 | 133,798 | 120,749 | |||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||
Loss on extinguishments of debt | - | (29,638) | - | (29,638) | ||||||||||||||||
Interest expense | (18,066) | (18,925) | (35,984) | (38,695) | ||||||||||||||||
Interest and other income, net | 2,036 | 219 | 2,136 | 449 | ||||||||||||||||
(16,030) | (48,344) | (33,848) | (67,884) | |||||||||||||||||
Income (Loss) From Continuing Operations | 9,344 | (27,558) | 17,119 | (26,618) | ||||||||||||||||
Discontinued Operations | ||||||||||||||||||||
Income (loss) from discontinued operations | (231) | 1,537 | (619) | 3,209 | ||||||||||||||||
Impairments | (3,105) | - | (6,529) | (3,630) | ||||||||||||||||
Gain on sales of real estate properties | 3 | 1,783 | 3 | 1,783 | ||||||||||||||||
Income (Loss) From Discontinued Operations | (3,333) | 3,320 | (7,145) | 1,362 | ||||||||||||||||
Net Income (Loss) | 6,011 | (24,238) | 9,974 | (25,256) | ||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (40) | 33 | (151) | 52 | ||||||||||||||||
Net Income (Loss) Attributable To Common Stockholders | $5,971 | ($24,205) | $9,823 | ($25,204) | ||||||||||||||||
Basic Earnings (Loss) Per Common Share: | ||||||||||||||||||||
Income (loss) from continuing operations | $0.10 | ($0.31) | $0.18 | ($0.30) | ||||||||||||||||
Discontinued operations | (0.04) | 0.04 | (0.08) | 0.01 | ||||||||||||||||
Net income (loss) attributable to common stockholders | $0.06 | ($0.27) | $0.10 | ($0.29) | ||||||||||||||||
Diluted Earnings (Loss) Per Common Share: | ||||||||||||||||||||
Income (loss) from continuing operations | $0.10 | ($0.31) | $0.18 | ($0.30) | ||||||||||||||||
Discontinued operations | (0.04) | 0.04 | (0.08) | 0.01 | ||||||||||||||||
Net income (loss) attributable to common stockholders | $0.06 | ($0.27) | $0.10 | ($0.29) | ||||||||||||||||
Weighted Average Common Shares Outstanding-Basic | 94,508 | 89,204 | 94,331 | 88,056 | ||||||||||||||||
Weighted Average Common Shares Outstanding-Diluted | 95,978 | 89,204 | 95,788 | 88,056 | ||||||||||||||||
(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 Reconciliation of FFO and Normalized FFO (1) (2) (amounts in thousands, except per share data) (Unaudited) | ||||||||||
Three Months Ended June 30, | ||||||||||
2014 | 2013 | |||||||||
Net Income (Loss) Attributable to Common Stockholders | $5,971 | ($24,205) | ||||||||
Gain on sales of real estate properties | (3) | (1,783) | ||||||||
Impairments | 3,105 | - | ||||||||
Real estate depreciation and amortization | 27,017 | 24,002 | ||||||||
Total adjustments | 30,119 | 22,219 | ||||||||
Funds From Operations | $36,090 | ($1,986) | ||||||||
Acquisition costs | 49 | 124 | ||||||||
Refund of prior year overpayment of certain operating expenses | (1,919) | - | ||||||||
Interest incurred related to the timing of insurance/redemption of senior notes | - | 667 | ||||||||
Loss on extinguishment of debt | - | 29,907 | ||||||||
Normalized Funds From Operations | $34,220 | $28,712 | ||||||||
Funds from Operations per Common Share-Diluted | $0.38 | ($0.02) | ||||||||
Normalized Funds From Operations Per Common Share-Diluted | $0.36 | $0.32 | ||||||||
FFO Weighted Average Common Shares Outstanding | 95,978 | 89,204 | ||||||||
Normalized FFO Weighted Average Common Shares Outstanding | 95,978 | 89,204 | ||||||||
(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. |
HEALTHCARE REALTY TRUST INCORPORATED Reconciliation of FAD and Normalized FAD (1) (amounts in thousands, except per share data) (Unaudited) | ||||||||||
Three Months Ended June 30, | ||||||||||
2014 | 2013 | |||||||||
Net Income (Loss) Attributable to Common Stockholders | $5,971 | ($24,205) | ||||||||
Gain on sales of real estate properties | (3) | (1,783) | ||||||||
Impairments | 3,105 | - | ||||||||
Depreciation and amortization | 28,825 | 25,723 | ||||||||
Provision for bad debt, net | 80 | 19 | ||||||||
Straight-line rent receivable | (2,513) | (1,802) | ||||||||
Straight-line rent liability | 209 | 102 | ||||||||
Stock-based compensation | 1,266 | 1,137 | ||||||||
Provision for deferred post-retirement benefits | 14 | 218 | ||||||||
Total non-cash items included in cash flows from operating activities | 30,983 | 23,614 | ||||||||
Funds Available For Distribution | $36,954 | ($591) | ||||||||
Acquisition costs | 49 | 124 | ||||||||
Refund of prior year overpayment of certain operating expenses | (1,919) | - | ||||||||
Interest incurred related to the timing of insurance/redemption of senior notes | - | 667 | ||||||||
Loss on extinguishment of debt | - | 29,907 | ||||||||
Normalized Funds Available For Distribution | $35,084 | $30,107 | ||||||||
Funds Available For Distribution Per Common Share-Diluted | $0.39 | ($0.01) | ||||||||
Normalized Funds Available For Distribution Per Common Share-Diluted | $0.37 | $0.34 | ||||||||
FAD Weighted Average Common Shares Outstanding | 95,978 | 88,382 | ||||||||
Normalized FAD Weighted Average Common Shares Outstanding | 95,978 | 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. |
SOURCE Healthcare Realty Trust Incorporated
