NASHVILLE, Tenn., Aug. 9 /PRNewswire-FirstCall/ -- Healthcare Realty Trust Incorporated today announced results for the second quarter ended June 30, 2010. FFO per diluted common share for the three months ended June 30, 2010 totaled $0.36, which includes the net positive effect of certain non-recurring items totaling $2.2 million, or $0.04 per diluted common share. FFO per diluted common share for the six months ended June 30, 2010 totaled $0.67. FAD for the three months ended June 30, 2010 totaled $0.37 per diluted common share.
Revenues for the three months and six months ended June 30, 2010 totaled $65.4 million and $129.9 million, respectively. Income from continuing operations for the three and six months ended June 30, 2010 totaled $5.0 million and $6.1 million, respectively. Net income attributable to common stockholders for the three months ended June 30, 2010 totaled $6.5 million, or $0.10 per diluted common share. Net income attributable to common stockholders for the six months ended June 30, 2010 totaled $11.1 million, or $0.18 per diluted common share.
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 206 real estate properties and mortgages as of June 30, 2010, 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 12.6 million square feet. The Company provides property management services to approximately 8.8 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, 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 Condensed Consolidated Statements of Income (1) (Dollars in thousands, except per share data) (Unaudited) Three Months Ended June 30, -------- 2010 2009 ---- ---- REVENUES Master lease rent $14,752 $14,023 Property operating 47,350 45,866 Straight-line rent 733 345 Mortgage interest 469 978 Other operating 2,102 3,006 ----- ----- 65,406 64,218 EXPENSES General and administrative 3,545 5,329 Property operating 24,710 23,566 Bad debt, net (258) 127 Depreciation 16,817 15,418 Amortization 1,332 1,346 ----- ----- 46,146 45,786 OTHER INCOME (EXPENSE) Loss on extinguishment of debt - - Re-measurement gain of equity interest upon acquisition - - Interest expense (15,569) (9,985) Interest and other income, net 1,356 228 (14,213) (9,757) ------- ------ INCOME FROM CONTINUING OPERATIONS 5,047 8,675 DISCONTINUED OPERATIONS Income (loss) from discontinued operations (58) 696 Impairment - - Gain on sales of real estate properties 1,525 7,443 ----- ----- INCOME FROM DISCONTINUED OPERATIONS 1,467 8,139 ----- ----- NET INCOME 6,514 16,814 Less: Net income attributable to noncontrolling interests (40) (62) --- --- NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $6,474 $16,752 ====== ======= BASIC EARNINGS PER COMMON SHARE Income from continuing operations $0.08 $0.15 Discontinued operations 0.03 0.14 ---- ---- Net income attributable to common stockholders $0.11 $0.29 ===== ===== DILUTED EARNINGS PER COMMON SHARE Income from continuing operations $0.08 $0.15 Discontinued operations 0.02 0.13 ---- ---- Net income attributable to common stockholders $0.10 $0.28 ===== ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -BASIC 61,340,739 58,128,489 ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -DILUTED 62,382,409 58,899,618 ========== ========== Six Months Ended June 30, -------- 2010 2009 ---- ---- REVENUES Master lease rent $29,683 $28,742 Property operating 93,496 88,771 Straight-line rent 1,315 715 Mortgage interest 1,107 1,468 Other operating 4,272 6,515 ----- ----- 129,873 126,211 EXPENSES General and administrative 8,276 12,295 Property operating 49,381 46,919 Bad debt, net (457) 562 Depreciation 33,387 30,559 Amortization 2,633 2,827 ----- ----- 93,220 93,162 OTHER INCOME (EXPENSE) Loss on extinguishment of debt (480) - Re-measurement gain of equity interest upon acquisition - 2,701 Interest expense (31,880) (19,996) Interest and other income, net 1,793 383 (30,567) (16,912) ------- ------- INCOME FROM CONTINUING OPERATIONS 6,086 16,137 DISCONTINUED OPERATIONS Income (loss) from discontinued operations 866 1,528 Impairment - (22) Gain on sales of real estate properties 4,221 20,051 ----- ------ INCOME FROM DISCONTINUED OPERATIONS 5,087 21,557 ----- ------ NET INCOME 11,173 37,694 Less: Net income attributable to noncontrolling interests (105) (77) ---- --- NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $11,068 $37,617 ======= ======= BASIC EARNINGS PER COMMON SHARE Income from continuing operations $0.10 $0.28 Discontinued operations 0.08 0.37 ---- ---- Net income attributable to common stockholders $0.18 $0.65 ===== ===== DILUTED EARNINGS PER COMMON SHARE Income from continuing operations $0.10 $0.27 Discontinued operations 0.08 0.37 ---- ---- Net income attributable to common stockholders $0.18 $0.64 ===== ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -BASIC 60,654,907 58,153,637 ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -DILUTED 61,690,322 58,897,895 ========== ========== (1) The Condensed 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. HEALTHCARE REALTY TRUST INCORPORATED Condensed Consolidated Statements of Cash Flows (1) (Dollars in thousands) (Unaudited) Three Months Ended June 30, -------- 2010 2009 ---- ---- Cash flows from operating activities: Net income $6,514 $16,814 Non-cash items: --------------- Depreciation and amortization -real estate 17,563 16,703 Depreciation and amortization - other 1,513 835 Provision for bad debt, net (258) 129 Impairments - - Straight-line rent receivable (734) (319) Straight-line rent liability 103 111 Stock-based compensation 566 1,013 Provision for deferred post-retirement benefits 346 475 Re-measurement gain of equity interest upon acquisition - - Other non-cash items (542) 253 Total non-cash items 18,557 19,200 Other items: ------------ Accounts payable and accrued liabilities 633 (4,409) Other liabilities (1,484) (4,327) Other assets (692) (1,066) Gain on sales of real estate properties (1,525) (7,443) Loss on extinguishment of debt - - Payment of partial pension settlement (342) - State income taxes paid, net of refunds (497) (503) ---- Total other items (3,907) (17,748) ------ ------- Net cash provided by operating activities 21,164 18,266 Cash flows from investing activities: Acquisition and development of real estate properties (28,789) (28,715) Funding of mortgages and notes receivable (800) (5,365) Investment in unconsolidated joint ventures - (149) Proceeds from sales of real estate 4,035 18,971 Proceeds from mortgages and notes receivable repayments 33 60 --- --- Net cash provided by (used in) investing activities (25,521) (15,198) Cash flows from financing activities: Net (borrowings) repayments on unsecured credit facilities (27,000) 13,000 Repayments on notes and bonds payable (587) (1,021) Repurchase of notes payable - - Quarterly dividends paid (18,953) (22,849) Proceeds from issuance of common stock 44,424 165 Equity issuance costs (20) - Debt issuance costs - - Capital contributions received from noncontrolling interest holders 37 - Distributions to noncontrolling interests (134) (32) ---- --- Net cash used in financing activities (2,233) (10,737) Increase (decrease) in cash and cash equivalents (6,590) (7,669) Cash and cash equivalents, beginning of period 11,045 12,376 Cash and cash equivalents, end of period $4,455 $4,707 ====== ====== Six Months Ended June 30, -------- 2010 2009 ---- ---- Cash flows from operating activities: Net income $11,173 $37,694 Non-cash items: --------------- Depreciation and amortization -real estate 35,000 33,574 Depreciation and amortization - other 2,924 1,644 Provision for bad debt, net (457) 566 Impairments - 22 Straight-line rent receivable (1,319) (672) Straight-line rent liability 206 224 Stock-based compensation 1,320 2,301 Provision for deferred post-retirement benefits 782 1,967 Re-measurement gain of equity interest upon acquisition - (2,701) Other non-cash items (542) 507 Total non-cash items 37,914 37,432 Other items: ------------ Accounts payable and accrued liabilities 5,678 (3,200) Other liabilities (488) (3,346) Other assets (162) 134 Gain on sales of real estate properties (4,221) (20,051) Loss on extinguishment of debt 480 - Payment of partial pension settlement (342) (2,300) State income taxes paid, net of refunds (491) (569) ---- Total other items 454 (29,332) --- ------- Net cash provided by operating activities 49,541 45,794 Cash flows from investing activities: Acquisition and development of real estate properties (54,057) (61,791) Funding of mortgages and notes receivable (2,890) (8,816) Investment in unconsolidated joint ventures - (149) Proceeds from sales of real estate 23,623 82,878 Proceeds from mortgages and notes receivable repayments 69 98 --- --- Net cash provided by (used in) investing activities (33,255) 12,220 Cash flows from financing activities: Net (borrowings) repayments on unsecured credit facilities (30,000) 9,000 Repayments on notes and bonds payable (1,111) (21,569) Repurchase of notes payable (8,556) - Quarterly dividends paid (37,370) (45,678) Proceeds from issuance of common stock 59,469 348 Equity issuance costs (20) - Debt issuance costs (515) - Capital contributions received from noncontrolling interest holders 670 529 Distributions to noncontrolling interests (249) (75) ---- --- Net cash used in financing activities (17,682) (57,445) Increase (decrease) in cash and cash equivalents (1,396) 569 Cash and cash equivalents, beginning of period 5,851 4,138 Cash and cash equivalents, end of period $4,455 $4,707 ====== ====== (1) The Condensed Consolidated Statements of Cash Flows 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. RECONCILIATION OF FUNDS FROM OPERATIONS (1) (2): (Dollars in thousands, except per share data) (Unaudited) Three Months Ended June 30, -------- 2010 2009 ---- ---- Net Income Attributable to Common Stockholders $6,474 $16,752 Gain on sales of real estate properties (1,525) (7,443) Real estate depreciation and amortization 17,435 16,703 Total adjustments 15,910 9,260 ------ ----- Funds From Operations $22,384 $26,012 ======= ======= Funds From Operations Per Common Share -Basic $0.36 $0.45 ===== ===== Funds From Operations Per Common Share -Diluted $0.36 $0.44 ===== ===== Weighted Average Common Shares Outstanding -Basic 61,340,739 58,128,489 ========== ========== Weighted Average Common Shares Outstanding -Diluted 62,382,409 58,899,618 ========== ========== Six Months Ended June 30, -------- 2010 2009 ---- ---- Net Income Attributable to Common Stockholders $11,068 $37,617 Gain on sales of real estate properties (4,221) (20,051) Real estate depreciation and amortization 34,768 33,585 Total adjustments 30,547 13,534 ------ ------ Funds From Operations $41,615 $51,151 ======= ======= Funds From Operations Per Common Share -Basic $0.69 $0.88 ===== ===== Funds From Operations Per Common Share -Diluted $0.67 $0.87 ===== ===== Weighted Average Common Shares Outstanding -Basic 60,654,907 58,153,637 ========== ========== Weighted Average Common Shares Outstanding -Diluted 61,690,322 58,897,895 ========== ========== RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2): (Dollars in thousands, except per share data) (Unaudited) Three Months Ended June 30, 2010 ------------- Net Income Attributable to Common Stockholders $6,474 Gain on sales of real estate properties (1,525) Partial pension settlement (342) Total non-cash items included in cash flows from operating activities (3) 18,557 ------ Funds Available For Distribution $23,164 ======= Funds Available For Distribution Per Common Share -Diluted $0.37 ===== Weighted Average Common Shares Outstanding - Diluted 62,382,409 ========== 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, (1) while impairments are included in FFO and FFO per share. 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 (2) alternatives to cash flow as measures of liquidity. See the Condensed Consolidated Statements of Cash Flows (3) that are included in this earnings release.
Healthcare Realty Trust Incorporated
CONTACT: Gabrielle M. Andres, Corporate Communications, +1-615-269-8175
Web Site: http://www.healthcarerealty.com/
