Healthcare Realty Trust Announces Fourth Quarter Results

HEALTHCARE REALTY TRUST INCORPORATED

Consolidated Statements of Operations (1)

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2010

2009

2010

2009

REVENUES

Master lease rent

$      13,326

$      13,655

$      54,659

$      53,340

Property operating

50,206

45,024

190,205

177,849

Straight-line rent

557

599

2,509

2,052

Mortgage interest

669

520

2,377

2,646

Other operating

2,244

2,328

8,644

10,951

67,002

62,126

258,394

246,838

EXPENSES

General and administrative

4,380

5,081

16,894

22,478

Property operating

26,273

23,733

101,355

93,249

Bad debt, net

9

110

(429)

535

Depreciation

17,824

15,675

67,440

60,847

Amortization

1,473

1,196

5,342

5,259

49,959

45,795

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

(17,908)

(13,549)

(65,710)

(43,080)

Interest and other income, net

620

425

2,419

1,099

(17,288)

(13,124)

(63,771)

(39,280)

INCOME (LOSS) FROM CONTINUING OPERATIONS

(245)

3,207

4,021

25,190

DISCONTINUED OPERATIONS

Income from discontinued operations

737

1,208

3,385

5,844

Impairments

(150)

-

(7,511)

(22)

Gain on sales of real estate properties

40

-

8,352

20,136

INCOME FROM DISCONTINUED OPERATIONS

627

1,208

4,226

25,958

NET INCOME

382

4,415

8,247

51,148

Less:  Net income attributable to noncontrolling interests

(2)

(45)

(47)

(57)

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$           380

$        4,370

$        8,200

$      51,091

BASIC EARNINGS PER COMMON SHARE

Income from continuing operations

$          0.00

$          0.05

$          0.06

$          0.43

Discontinued operations

0.01

0.02

0.07

0.45

Net income attributable to common stockholders

$          0.01

$          0.07

$          0.13

$          0.88

DILUTED EARNINGS PER COMMON SHARE

Income from continuing operations

$          0.00

$          0.05

$          0.06

$          0.43

Discontinued operations

0.01

0.02

0.07

0.44

Net income attributable to common stockholders

$          0.01

$          0.07

$          0.13

$          0.87

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

(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

Twelve Months Ended

December 31,

December 31,

2010

2009

2010

2009

Cash flows from operating activities:

Net income

$  382

$  4,415

$  8,247

$  51,148

Non-cash items:

Depreciation and amortization - real estate

19,011

16,539

72,213

66,914

Depreciation and amortization - other

1,399

1,493

5,681

4,007

Provision for bad debt, net

9

108

(409)

517

Impairments

150

-

7,511

22

Straight-line rent receivable

(549)

(577)

(2,472)

(1,925)

Straight-line rent liability

(217)

108

92

444

Equity in losses from unconsolidated joint ventures

-

-

-

2

Stock-based compensation

566

425

2,411

3,711

Provision for deferred post-retirement benefits

223

417

1,390

2,860

Re-measurement gain of equity interest upon acquisition

-

-

-

(2,701)

Other non-cash items

-

(38)

(542)

723

  Total non-cash items

20,592

18,475

85,875

74,574

Other items:

Accounts payable and accrued liabilities

(3,494)

(6,857)

6,367

5,127

Other liabilities

(1,098)

4,864

470

(3,508)

Other assets

(2,212)

(65)

(9,137)

(1,017)

Gain on sales of real estate properties

(40)

-

(8,352)

(20,136)

Loss on extinguishment of debt

-

-

480

-

Payment of partial pension settlement

(2,240)

-

(2,582)

(2,300)

State income taxes paid, net of refunds

(30)

(12)

(533)

(674)

  Total other items

(9,114)

(2,070)

(13,287)

(22,508)

Net cash provided by operating activities

11,860

20,820

80,835

103,214

Cash flows from investing activities:

Acquisition and development of real estate properties

(185,381)

(71,254)

(369,034)

(170,520)

Funding of mortgages and notes receivable

(11,188)

(10,208)

(25,109)

(23,391)

Investment in unconsolidated joint venture

-

-

-

(184)

Proceeds from sales of real estate

1,191

-

34,512

83,441

Proceeds from mortgages and notes receivable repayments

1,816

12,688

9,201

12,893

Net cash used in investing activities

(193,562)

(68,774)

(350,430)

(97,761)

Cash flows from financing activities:

Net repayments on unsecured credit facilities

(131,000)

(323,000)

(50,000)

(279,000)

Borrowings on notes and bonds payable

396,800

377,969

396,800

377,969

Repayments on notes and bonds payable

(757)

(5,793)

(2,516)

(28,433)

Repurchase of notes payable

-

-

(8,556)

-

Quarterly dividends paid

(19,340)

(22,855)

(75,821)

(91,385)

Proceeds from issuance of common stock

38,768

25,933

118,235

26,467

Equity issuance costs

(7)

(3)

(30)

(3)

Common stock redemption

-

-

-

(8)

Debt issuance and assumption costs

(483)

(3,900)

(1,199)

(11,293)

Capital contributions received from noncontrolling interest holders

(53)

457

633

2,228

Distributions to noncontrolling interests

(82)

(91)

(481)

(282)

Net cash provided by (used in) financing activities

283,846

48,717

377,065

(3,740)

Increase in cash and cash equivalents

102,144

763

107,470

1,713

Cash and cash equivalents, beginning of period

11,177

5,088

5,851

4,138

Cash and cash equivalents, end of period

$ 113,321

$    5,851

$ 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.