NASHVILLE, Tenn., Feb. 22, 2011 /PRNewswire/ -- Healthcare Realty Trust Incorporated today announced results for the fourth quarter ended December 31, 2010. FFO per diluted common share for the three months ended December 31, 2010 totaled $0.30. FFO per diluted common share for the twelve months ended December 31, 2010 totaled $1.14, which includes the effect of non-cash impairment charges totaling $7.5 million, or $0.12 per diluted common share. FAD for the three months ended December 31, 2010 totaled $0.29 per diluted common share.
Revenues for the three and twelve months ended December 31, 2010 totaled $67.0 million and $258.4 million, respectively. Income (loss) from continuing operations for the three and twelve months ended December 31, 2010 totaled ($0.2) million and $4.0 million, respectively. Net income attributable to common stockholders for the three months ended December 31, 2010 totaled $0.4 million, or $0.01 per diluted common share. Net income attributable to common stockholders for the twelve months ended December 31, 2010 totaled $8.2 million, or $0.13 per diluted common share. Along with FFO, net income attributable to common stockholders for the twelve months ended December 31, 2010 was also affected by impairment charges.
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 $2.6 billion in 209 real estate properties and mortgages as of December 31, 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 13.3 million square feet. The Company provides property management services to approximately 9.2 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, 2010 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 Consolidated Statements of Operations (1) (Dollars in thousands, except per share data) (Unaudited) Three Months Ended December 31, ------------ 2010 2009 ---- ---- REVENUES Master lease rent $13,326 $13,655 Property operating 50,206 45,024 Straight-line rent 557 599 Mortgage interest 669 520 Other operating 2,244 2,328 ----- ----- 67,002 62,126 EXPENSES General and administrative 4,380 5,081 Property operating 26,273 23,733 Bad debt, net 9 110 Depreciation 17,824 15,675 Amortization 1,473 1,196 ----- ----- 49,959 45,795 OTHER INCOME (EXPENSE) Loss on extinguishment of debt - - Re-measurement gain of equity interest upon acquisition - - Interest expense (17,908) (13,549) Interest and other income, net 620 425 (17,288) (13,124) ------- ------- INCOME (LOSS) FROM CONTINUING OPERATIONS (245) 3,207 DISCONTINUED OPERATIONS Income from discontinued operations 737 1,208 Impairments (150) - Gain on sales of real estate properties 40 - --- --- INCOME FROM DISCONTINUED OPERATIONS 627 1,208 --- ----- NET INCOME 382 4,415 Less: Net income attributable to noncontrolling interests (2) (45) --- --- NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $380 $4,370 ==== ====== BASIC EARNINGS PER COMMON SHARE Income from continuing operations $0.00 $0.05 Discontinued operations 0.01 0.02 ---- ---- Net income attributable to common stockholders $0.01 $0.07 ===== ===== DILUTED EARNINGS PER COMMON SHARE Income from continuing operations $0.00 $0.05 Discontinued operations 0.01 0.02 ---- ---- Net income attributable to common stockholders $0.01 $0.07 ===== ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -BASIC 63,176,732 58,357,290 ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -DILUTED 64,241,164 59,311,720 ========== ========== Twelve Months Ended December 31, ------------ 2010 2009 ---- ---- REVENUES Master lease rent $54,659 $53,340 Property operating 190,205 177,849 Straight-line rent 2,509 2,052 Mortgage interest 2,377 2,646 Other operating 8,644 10,951 ----- ------ 258,394 246,838 EXPENSES General and administrative 16,894 22,478 Property operating 101,355 93,249 Bad debt, net (429) 535 Depreciation 67,440 60,847 Amortization 5,342 5,259 ----- ----- 190,602 182,368 OTHER INCOME (EXPENSE) Loss on extinguishment of debt (480) - Re-measurement gain of equity interest upon acquisition - 2,701 Interest expense (65,710) (43,080) Interest and other income, net 2,419 1,099 (63,771) (39,280) ------- ------- INCOME (LOSS) FROM CONTINUING OPERATIONS 4,021 25,190 DISCONTINUED OPERATIONS Income from discontinued operations 3,385 5,844 Impairments (7,511) (22) Gain on sales of real estate properties 8,352 20,136 ----- ------ INCOME FROM DISCONTINUED OPERATIONS 4,226 25,958 ----- ------ NET INCOME 8,247 51,148 Less: Net income attributable to noncontrolling interests (47) (57) --- --- NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $8,200 $51,091 ====== ======= BASIC EARNINGS PER COMMON SHARE Income from continuing operations $0.06 $0.43 Discontinued operations 0.07 0.45 ---- ---- Net income attributable to common stockholders $0.13 $0.88 ===== ===== DILUTED EARNINGS PER COMMON SHARE Income from continuing operations $0.06 $0.43 Discontinued operations 0.07 0.44 ---- ---- Net income attributable to common stockholders $0.13 $0.87 ===== ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -BASIC 61,722,786 58,199,592 ========== ========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -DILUTED 62,770,826 59,047,314 ========== ========== (1) The 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 Consolidated Statements of Cash Flows (1) (Dollars in thousands) (Unaudited) Three Months Ended December 31, ------------ 2010 2009 ---- ---- Cash flows from operating activities: Net income $382 $4,415 Non-cash items: --------------- Depreciation and amortization -real estate 19,011 16,539 Depreciation and amortization - other 1,399 1,493 Provision for bad debt, net 9 108 Impairments 150 - Straight-line rent receivable (549) (577) Straight-line rent liability (217) 108 Equity in losses from unconsolidated joint ventures - - Stock-based compensation 566 425 Provision for deferred post- retirement benefits 223 417 Re-measurement gain of equity interest upon acquisition - - Other non-cash items - (38) Total non-cash items 20,592 18,475 Other items: ------------ Accounts payable and accrued liabilities (3,494) (6,857) Other liabilities (1,098) 4,864 Other assets (2,212) (65) Gain on sales of real estate properties (40) - Loss on extinguishment of debt - - Payment of partial pension settlement (2,240) - State income taxes paid, net of refunds (30) (12) --- Total other items (9,114) (2,070) ------ ------ Net cash provided by operating activities 11,860 20,820 Cash flows from investing activities: Acquisition and development of real estate properties (185,381) (71,254) Funding of mortgages and notes receivable (11,188) (10,208) Investment in unconsolidated joint venture - - Proceeds from sales of real estate 1,191 - Proceeds from mortgages and notes receivable repayments 1,816 12,688 ----- ------ Net cash used in investing activities (193,562) (68,774) Cash flows from financing activities: Net repayments on unsecured credit facilities (131,000) (323,000) Borrowings on notes and bonds payable 396,800 377,969 Repayments on notes and bonds payable (757) (5,793) Repurchase of notes payable - - Quarterly dividends paid (19,340) (22,855) Proceeds from issuance of common stock 38,768 25,933 Equity issuance costs (7) (3) Common stock redemption - - Debt issuance and assumption costs (483) (3,900) Capital contributions received from noncontrolling interest holders (53) 457 Distributions to noncontrolling interests (82) (91) --- --- Net cash provided by (used in) financing activities 283,846 48,717 Increase in cash and cash equivalents 102,144 763 Cash and cash equivalents, beginning of period 11,177 5,088 Cash and cash equivalents, end of period $113,321 $5,851 ======== ====== Twelve Months Ended December 31, ------------ 2010 2009 ---- ---- Cash flows from operating activities: Net income $8,247 $51,148 Non-cash items: --------------- Depreciation and amortization -real estate 72,213 66,914 Depreciation and amortization - other 5,681 4,007 Provision for bad debt, net (409) 517 Impairments 7,511 22 Straight-line rent receivable (2,472) (1,925) Straight-line rent liability 92 444 Equity in losses from unconsolidated joint ventures - 2 Stock-based compensation 2,411 3,711 Provision for deferred post- retirement benefits 1,390 2,860 Re-measurement gain of equity interest upon acquisition - (2,701) Other non-cash items (542) 723 Total non-cash items 85,875 74,574 Other items: ------------ Accounts payable and accrued liabilities 6,367 5,127 Other liabilities 470 (3,508) Other assets (9,137) (1,017) Gain on sales of real estate properties (8,352) (20,136) Loss on extinguishment of debt 480 - Payment of partial pension settlement (2,582) (2,300) State income taxes paid, net of refunds (533) (674) ---- Total other items (13,287) (22,508) ------- ------- Net cash provided by operating activities 80,835 103,214 Cash flows from investing activities: Acquisition and development of real estate properties (369,034) (170,520) Funding of mortgages and notes receivable (25,109) (23,391) Investment in unconsolidated joint venture - (184) Proceeds from sales of real estate 34,512 83,441 Proceeds from mortgages and notes receivable repayments 9,201 12,893 ----- ------ Net cash used in investing activities (350,430) (97,761) Cash flows from financing activities: Net repayments on unsecured credit facilities (50,000) (279,000) Borrowings on notes and bonds payable 396,800 377,969 Repayments on notes and bonds payable (2,516) (28,433) Repurchase of notes payable (8,556) - Quarterly dividends paid (75,821) (91,385) Proceeds from issuance of common stock 118,235 26,467 Equity issuance costs (30) (3) Common stock redemption - (8) Debt issuance and assumption costs (1,199) (11,293) Capital contributions received from noncontrolling interest holders 633 2,228 Distributions to noncontrolling interests (481) (282) ---- ---- Net cash provided by (used in) financing activities 377,065 (3,740) Increase in cash and cash equivalents 107,470 1,713 Cash and cash equivalents, beginning of period 5,851 4,138 Cash and cash equivalents, end of period $113,321 $5,851 ======== ====== (1) The 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 Twelve Months Ended December 31, December 31, ------------ ------------ 2010 2009 2010 2009 ---- ---- ---- ---- Net Income Attributable to Common Stockholders $380 $4,370 $8,200 $51,091 Gain on sales of real estate properties (40) - (8,352) (20,136) Real estate depreciation and amortization 18,883 16,539 71,725 66,927 ------ ------ ------ ------ Total adjustments 18,843 16,539 63,373 46,791 ------ ------ ------ ------ Funds From Operations $19,223 $20,909 $71,573 $97,882 ======= ======= ======= ======= Funds From Operations Per Common Share - Basic $0.30 $0.36 $1.16 $1.68 ===== ===== ===== ===== Funds From Operations Per Common Share - Diluted $0.30 $0.35 $1.14 $1.66 ===== ===== ===== ===== Weighted Average Common Shares Outstanding - Basic 63,176,732 58,357,290 61,722,786 58,199,592 ========== ========== ========== ========== Weighted Average Common Shares Outstanding - Diluted 64,241,164 59,311,720 62,770,826 59,047,314 ========== ========== ========== ========== RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2): (Dollars in thousands, except per share data) (Unaudited) Three Months Ended December 31, 2010 ------------- Net Income Attributable to Common Stockholders $380 Gain on sales of real estate properties (40) Partial pension settlement (2,240) Total non-cash items included in cash flows from operating activities (3) 20,592 ------ Funds Available For Distribution $18,692 ======= Funds Available For Distribution Per Common Share - Diluted $0.29 ===== Weighted Average Common Shares Outstanding - Diluted 64,241,164 ========== (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 (loss) 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, 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 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 alternatives to cash flow as measures of liquidity. (3) See the 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, http://www.healthcarerealty.com/
Web Site: http://www.healthcarerealty.com/
