NASHVILLE, Tenn., Aug. 10 /PRNewswire-FirstCall/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the second quarter ended June 30, 2009. Funds from operations ("FFO") per diluted common share for the three months ended June 30, 2009 totaled $0.44, compared with $0.38 for the three months ended June 30, 2008. FFO per diluted common share totaled $0.87 for the six months ended June 30, 2009, compared with the prior year's $0.77.
Funds available for distribution ("FAD") for the three months ended June 30, 2009 totaled $0.48 per diluted common share.
Revenues for the three months ended June 30, 2009 totaled $65.1 million, compared with the prior year's $52.6 million. Revenues for the six months ended June 30, 2009 totaled $128.1 million, compared with the prior year's $104.8 million. Income from continuing operations for the three months ended June 30, 2009 totaled $9.4 million, compared with $4.8 million for the three months ended June 30, 2008. Income from continuing operations for the six months ended June 30, 2009 totaled $17.1 million, compared with the prior year's $9.7 million.
Net income for the three months ended June 30, 2009 totaled $16.8 million, or $0.28 per diluted common share, versus $13.8 million, or $0.27 per diluted common share, for the three months ended 2008. Net income for the six months ended June 30, 2009 totaled $37.7 million, or $0.64 per diluted common share, compared with $20.6 million, or $0.41 per diluted common share for the six months ended June 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 203 real estate properties and mortgages as of June 30, 2009, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company's 198 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 28 states, totaling approximately 12.1 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, 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 Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
REVENUES
Master lease rent $14,953 $15,014 $30,604 $30,703
Property operating 45,866 32,899 88,776 65,014
Straight-line rent 328 (126) 688 (182)
Mortgage interest 978 542 1,468 1,067
Other operating 3,007 4,312 6,514 8,164
----- ----- ----- -----
65,132 52,641 128,050 104,766
EXPENSES
General and
administrative 5,329 5,863 12,296 11,908
Property operating 23,587 19,279 46,950 37,524
Bad debts, net of
recoveries 127 115 562 260
Depreciation 15,575 11,665 31,300 23,127
Amortization 1,346 566 2,827 1,150
----- --- ----- -----
45,964 37,488 93,935 73,969
OTHER INCOME (EXPENSE)
Gain on extinguishment
of debt, net - 9 - 9
Re-measurement
gain of equity
interest upon
acquisition - - 2,701 -
Interest expense (10,043) (10,886) (20,116) (21,764)
Interest and
other income,
net 228 486 383 622
--- --- --- ---
(9,815) (10,391) (17,032) (21,133)
------ ------- ------- -------
INCOME FROM
CONTINUING
OPERATIONS 9,353 4,762 17,083 9,664
DISCONTINUED OPERATIONS
Income from
discontinued
operations 18 1,289 582 2,582
Impairments - - (22) (29)
Gain on sales
of real estate
properties 7,443 7,715 20,051 8,352
----- ----- ------ -----
INCOME FROM
DISCONTINUED
OPERATIONS 7,461 9,004 20,611 10,905
----- ----- ------ ------
NET INCOME 16,814 13,766 37,694 20,569
Less: Net
income
attributable to
noncontrolling
interests (62) - (77) (3)
--- - --- --
NET INCOME
ATTRIBUTABLE TO
COMMON
STOCKHOLDERS $16,752 $13,766 $37,617 $20,566
======= ======= ======= =======
BASIC EARNINGS PER
COMMON SHARE
Income from
continuing
operations $0.16 $0.10 $0.29 $0.20
Discontinued
operations 0.13 0.18 0.36 0.22
---- ---- ---- ----
Net income
attributable to
common
stockholders $0.29 $0.28 $0.65 $0.42
===== ===== ===== =====
DILUTED EARNINGS PER
COMMON SHARE
Income from
continuing
operations $0.16 $0.09 $0.29 $0.19
Discontinued
operations 0.12 0.18 0.35 0.22
---- ---- ---- ----
Net income
attributable to
common
stockholders $0.28 $0.27 $0.64 $0.41
===== ===== ===== =====
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING -
BASIC 58,128,489 49,431,724 58,153,637 49,422,391
========== ========== ========== ==========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING -
DILUTED 58,899,618 50,474,762 58,897,895 50,442,808
========== ========== ========== ==========
(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 Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Cash flows from operating
activities:
Net income $16,814 $13,766 $37,694 $20,569
Non-cash items:
---------------
Depreciation and
amortization - real
estate 16,703 12,721 33,574 25,276
Depreciation and
amortization - other 835 640 1,644 1,204
Provision for bad
debt, net of
recoveries 129 115 566 331
Impairments - - 22 29
Straight-line rent
receivable (319) 134 (672) 199
Straight-line rent
liability 111 43 224 86
Equity in (income)
losses from
unconsolidated joint
ventures - (116) 2 148
Stock-based
compensation 1,013 1,107 2,301 2,403
Provision for
deferred post-
retirement benefits 475 818 1,967 1,654
Gain on repurchase of
notes payable - (9) - (9)
Re-measurement gain
of equity interest
upon acquisition - - (2,701) -
Other non-cash items 253 133 507 439
--- --- --- ---
Total non-cash
items 19,200 15,586 37,434 31,760
Other items:
------------
Accounts payable and
accrued liabilities (4,409) (7,465) (3,200) (3,686)
Other liabilities (4,327) (2,075) (3,346) (2,810)
Other assets (1,066) (508) 132 5,866
Gain on sales of real
estate properties (7,443) (7,715) (20,051) (8,352)
Payment of partial
pension settlement - - (2,300) -
State income taxes
paid, net of refunds (503) (621) (569) (621)
---- ---- ---- ----
Total other items (17,748) (18,384) (29,334) (9,603)
------- ------- ------- ------
Net cash provided by
operating activities 18,266 10,968 45,794 42,726
Cash flows from investing
activities:
Acquisition and
development of real
estate properties (28,715) (18,134) (61,791) (37,694)
Funding of mortgages
and notes receivable (5,365) (5,916) (8,816) (7,181)
Investment in
unconsolidated joint
ventures (149) - (149) -
Distributions received
from unconsolidated
joint ventures - 444 - 867
Proceeds from sales of
real estate 18,971 18,625 82,878 22,040
Proceeds from mortgages
and notes receivable
repayments 60 43 98 79
-- -- -- --
Net cash provided by
(used in) investing
activities (15,198) (4,938) 12,220 (21,889)
Cash flows from financing
activities:
Net borrowings on
unsecured credit
facility 13,000 14,000 9,000 22,000
Repayments on notes and
bonds payable (1,021) (918) (21,569) (1,825)
Repurchase of notes
payable - (5,332) - (5,332)
Quarterly dividends paid (22,849) (19,534) (45,678) (39,067)
Proceeds from issuance
of common stock 165 176 348 361
Common stock redemption - (282) - (282)
Credit facility
amendment fee - (326) - (326)
Capital contribution
received from
noncontrolling
interests - - 529 -
Distributions to
noncontrolling
interests (32) - (75) (3)
--- - --- --
Net cash used in
financing activities (10,737) (12,216) (57,445) (24,474)
------- ------- ------- -------
Increase (decrease) in
cash and cash equivalents (7,669) (6,186) 569 (3,637)
Cash and cash
equivalents, beginning of
period 12,376 11,068 4,138 8,519
------ ------ ----- -----
Cash and cash
equivalents, end of
period $4,707 $4,882 $4,707 $4,882
====== ====== ====== ======
(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 Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
Net Income
Attributable to
Common
Stockholders $16,752 $13,766 $37,617 $20,566
Gain on sales
of real estate
properties (7,443) (7,715) (20,051) (8,352)
Real estate
depreciation
and
amortization 16,703 13,150 33,585 26,423
------ ------ ------ ------
Total
adjustments 9,260 5,435 13,534 18,071
----- ----- ------ ------
Funds From
Operations -
Basic and
Diluted $26,012 $19,201 $51,151 $38,637
======= ======= ======= =======
Funds From
Operations Per
Common Share
- Basic $0.45 $0.39 $0.88 $0.78
===== ===== ===== =====
Funds From
Operations Per
Common Share
- Diluted $0.44 $0.38 $0.87 $0.77
===== ===== ===== =====
Weighted Average
Common Shares
Outstanding
- Basic 58,128,489 49,431,724 58,153,637 49,422,391
========== ========== ========== ==========
Weighted Average
Common Shares
Outstanding
- Diluted 58,899,618 50,474,762 58,897,895 50,442,808
========== ========== ========== ==========
RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30, 2009
-------------
Net Income Attributable to Common Stockholders $16,752
Gain on sales of real estate properties (7,443)
Total non-cash items included in cash flows
from operating activities (3) 19,200
------
Funds Available For Distribution $28,509
=======
Funds Available For Distribution Per Common
Share - Diluted $0.48
=====
Weighted Average Common Shares Outstanding
- Diluted 58,899,618
==========
(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.
