NASHVILLE, Tenn., Nov. 9 /PRNewswire-FirstCall/ -- Healthcare Realty Trust Incorporated today announced results for the third quarter ended September 30, 2009. Funds from operations ("FFO") per diluted common share for the three months ended September 30, 2009 totaled $0.44, compared with $0.36 for the three months ended September 30, 2008. FFO per diluted common share totaled $1.31 for the nine months ended September 30, 2009, compared with the prior year's $1.13.
Funds available for distribution ("FAD") for the three months ended September 30, 2009 totaled $0.47 per diluted common share.
Revenues for the three months ended September 30, 2009 totaled $64.1 million, compared with the prior year's $54.7 million. Revenues for the nine months ended September 30, 2009 totaled $192.1 million, compared with the prior year's $159.4 million. Income from continuing operations for the three months ended September 30, 2009 totaled $8.7 million, compared with $3.7 million for the three months ended September 30, 2008. Income from continuing operations for the nine months ended September 30, 2009 totaled $25.7 million, compared with the prior year's $13.4 million.
Net income attributable to common stockholders for the three months ended September 30, 2009 totaled $9.1 million, or $0.15 per diluted common share, versus $5.5 million, or $0.11 per diluted common share, for the three months ended 2008. Net income attributable to common stockholders for the nine months ended September 30, 2009 totaled $46.7 million, or $0.79 per diluted common share, compared with $26.1 million, or $0.52 per diluted common share for the nine months ended September 30, 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 $2.2 billion in 206 real estate properties and mortgages as of September 30, 2009, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company's 201 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 9.0 million square feet nationwide.
The Company directs interested parties to its Internet site, http://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 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 Condensed Consolidated Statements of Income (1) (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ---------------- ---------------- 2009 2008 2009 2008 ---- ---- ---- ---- REVENUES Master lease rent $14,973 $15,166 $45,576 $45,869 Property operating 45,638 34,721 134,414 99,736 Straight-line rent 676 124 1,364 (58) Mortgage interest 658 579 2,126 1,647 Other operating 2,111 4,084 8,626 12,246 ----- ----- ----- ------ 64,056 54,674 192,106 159,440 EXPENSES General and administrative 5,107 6,018 17,402 17,926 Property operating 23,979 21,625 70,929 59,149 Impairment - 1,600 - 1,600 Bad debts, net of recoveries (133) 95 429 355 Depreciation 15,906 12,166 47,207 35,293 Amortization 1,236 769 4,063 1,919 ----- --- ----- ----- 46,095 42,273 140,030 116,242 OTHER INCOME (EXPENSE) Gain on extinguishment of debt, net - 2,015 - 2,024 Re-measurement gain of equity interest upon acquisition - - 2,701 - Interest expense (9,587) (10,863) (29,703) (32,627) Interest and other income, net 292 185 675 807 --- --- --- --- (9,295) (8,663) (26,327) (29,796) ------ ------ ------- ------- INCOME FROM CONTINUING OPERATIONS 8,666 3,738 25,749 13,402 DISCONTINUED OPERATIONS Income from discontinued operations 289 1,092 870 3,674 Impairments - - (22) (29) Gain on sales of real estate properties 84 746 20,136 9,098 --- --- ------ ----- INCOME FROM DISCONTINUED OPERATIONS 373 1,838 20,984 12,743 --- ----- ------ ------ NET INCOME 9,039 5,576 46,733 26,145 Less: Net (income) loss attributable to noncontrolling interests 65 (49) (12) (52) --- --- --- --- NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $9,104 $5,527 $46,721 $26,093 ====== ====== ======= ======= BASIC EARNINGS PER COMMON SHARE Income from continuing operations $0.15 $0.07 $0.44 $0.27 Discontinued operations 0.01 0.04 0.36 0.26 ---- ---- ---- ---- Net income attributable to common stockholders $0.16 $0.11 $0.80 $0.53 ===== ===== ===== ===== DILUTED EARNINGS PER COMMON SHARE Income from continuing operations $0.15 $0.07 $0.44 $0.27 Discontinued operations 0.00 0.04 0.35 0.25 ---- ---- ---- ---- Net income attributable to common stockholders $0.15 $0.11 $0.79 $0.52 ===== ===== ===== ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC 58,174,482 49,530,813 58,150,024 49,438,796 ========== ========== ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED 59,064,066 50,614,173 58,950,870 50,481,469 ========== ========== ========== ========== (1) The Condensed Consolidated Statements of Income do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. HEALTHCARE REALTY TRUST INCORPORATED Condensed Consolidated Statements of Cash Flows (1) (Dollars in thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- Cash flows from operating activities: Net income $9,039 $5,576 $46,733 $26,145 Non-cash items: --------------- Depreciation and amortization - real estate 16,801 13,025 50,375 38,300 Depreciation and amortization - other 870 663 2,514 1,868 Provision for bad debts, net of recoveries (137) 95 429 426 Impairments - 1,600 22 1,629 Straight-line rent receivable (676) (124) (1,348) 75 Straight-line rent liability 112 61 336 147 Equity in (income) losses from unconsolidated joint ventures - (55) 2 93 Stock-based compensation 985 1,084 3,286 3,487 Provision for deferred post-retirement benefits 476 828 2,443 2,482 Gain on repurchase of notes payable - (2,015) - (2,024) Re-measurement gain of equity interest upon acquisition - - (2,701) - Other non-cash items 254 133 761 572 --- --- --- --- Total non-cash items 18,685 15,295 56,119 47,055 Other items: ------------ Accounts payable and accrued liabilities 15,183 13,325 11,984 9,653 Other liabilities (5,006) 2,739 (8,352) (71) Other assets (1,137) (837) (1,005) 5,029 Gain on sales of real estate properties (84) (746) (20,136) (9,098) Payment of partial pension settlement - - (2,300) - State income taxes paid, net of refunds (93) (30) (662) (651) --- --- ---- ---- Total other items 8,863 14,451 (20,471) 4,862 ----- ------ ------- ----- Net cash provided by operating activities 36,587 35,322 82,381 78,062 Cash flows from investing activities: Acquisition and development of real estate properties (37,462) (100,758) (99,253) (138,452) Funding of mortgages and notes receivable (4,367) (5,338) (13,183) (12,519) Investment in unconsolidated joint ventures (35) - (184) - Distributions received from unconsolidated joint ventures - 15 - 882 Partial redemption of preferred equity investment in unconsolidated joint ventures - 5,546 - 5,546 Proceeds from sales of real estate 563 2,641 83,441 24,681 Proceeds from mortgages and notes receivable repayments 107 2,555 205 2,634 --- ----- --- ----- Net cash used in investing activities (41,194) (95,339) (28,974) (117,228) Cash flows from financing activities: Net borrowings on unsecured credit facilities 35,000 (90,000) 44,000 (68,000) Repayments on notes and bonds payable (1,071) (895) (22,640) (2,720) Repurchase of notes payable - (25,906) - (31,238) Quarterly dividends paid (22,852) (19,542) (68,530) (58,609) Proceeds from issuance of common stock 186 196,701 534 197,062 Equity issuance costs - (18) - (32) Common stock redemption (8) - (8) (282) Debt issuance costs (7,393) - (7,393) - Credit facility amendment fee - - - (326) Capital contributions received from noncontrolling interests 1,242 - 1,771 - Distributions to noncontrolling interests (116) (49) (191) (52) ---- --- ---- --- Net cash provided by (used in) financing activities 4,988 60,291 (52,457) 35,803 ----- ------ ------- ------ Increase (decrease) in cash and cash equivalents 381 274 950 (3,363) Cash and cash equivalents, beginning of period 4,707 4,882 4,138 8,519 ----- ----- ----- ----- Cash and cash equivalents, end of period $5,088 $5,156 $5,088 $5,156 ====== ====== ====== ====== (1) The Condensed 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 Nine Months Ended September 30, September 30, ---------------- ---------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net Income Attributable to Common Stockholders $9,104 $5,527 $46,721 $26,093 Gain on sales of real estate properties (84) (746) (20,136) (9,098) Real estate depreciation and amortization 16,801 13,456 50,387 39,878 ------ ------ ------ ------ Total adjustments 16,717 12,710 30,251 30,780 ------ ------ ------ ------ Funds From Operations - Basic and Diluted $25,821 $18,237 $76,972 $56,873 ======= ======= ======= ======= Funds From Operations Per Common Share - Basic $0.44 $0.37 $1.32 $1.15 ===== ===== ===== ===== Funds From Operations Per Common Share - Diluted $0.44 $0.36 $1.31 $1.13 ===== ===== ===== ===== Weighted Average Common Shares Outstanding - Basic 58,174,482 49,530,813 58,150,024 49,438,796 ========== ========== ========== ========== Weighted Average Common Shares Outstanding - Diluted 59,064,066 50,614,173 58,950,870 50,481,469 ========== ========== ========== ========== RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2): (Dollars in thousands, except per share data) (Unaudited) Three Months Ended September 30, 2009 ------------------ Net Income Attributable to Common Stockholders $9,104 Gain on sales of real estate properties (84) Total non-cash items included in cash flows from operating activities (3) 18,685 ------ Funds Available For Distribution $27,705 ======= Funds Available For Distribution Per Common Share - Diluted $0.47 ===== Weighted Average Common Shares Outstanding - Diluted 59,064,066 ========== (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 Condensed Consolidated Statements of Cash Flows that are included in this earnings release.
Healthcare Realty Trust Incorporated
CONTACT: HEALTHCARE REALTY, Gabrielle M. Andres, Corporate
Communications, +1-615-269-8175
Web Site: http://www.healthcarerealty.com/
