Healthcare Realty Trust Announces First Quarter Results

HEALTHCARE REALTY TRUST INCORPORATED 

Condensed Consolidated Statements of Income (1)

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2010

2009

REVENUES

Master lease rent

$      15,022

$      14,808

Property operating

46,146

42,905

Straight-line rent

584

382

Mortgage interest

638

489

Other operating

2,170

3,509

64,560

62,093

EXPENSES

General and administrative

4,731

6,966

Property operating

24,675

23,358

Bad debt, net

(199)

435

Depreciation

16,591

15,162

Amortization

1,301

1,481

47,099

47,402

OTHER INCOME (EXPENSE)

Loss on extinguishment of debt

(480)

-

Re-measurement gain of equity interest upon acquisition

-

2,701

Interest expense

(16,310)

(10,010)

Interest and other income, net

476

154

(16,314)

(7,155)

INCOME FROM CONTINUING OPERATIONS

1,147

7,536

DISCONTINUED OPERATIONS

Income from discontinued operations

815

757

Impairment

-

(22)

Gain on sales of real estate properties

2,696

12,609

INCOME FROM DISCONTINUED OPERATIONS

3,511

13,344

NET INCOME

4,658

20,880

Less:  Net income attributable to noncontrolling interests

(64)

(15)

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$        4,594

$      20,865

BASIC EARNINGS PER COMMON SHARE

Income from continuing operations

$          0.02

$          0.13

Discontinued operations

0.06

0.23

Net income attributable to common stockholders

$          0.08

$          0.36

DILUTED EARNINGS PER COMMON SHARE

Income from continuing operations

$          0.02

$          0.13

Discontinued operations

0.06

0.22

Net income attributable to common stockholders

$          0.08

$          0.35

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC

59,961,455

58,130,574

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED

60,969,730

58,847,384

(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

March 31,

2010

2009

Cash flows from operating activities:

Net income

$   4,658

$ 20,880

Non-cash items:

Depreciation and amortization - real estate

17,437

16,872

Depreciation and amortization - other

1,411

808

Provision for bad debt, net

(199)

437

Impairments

-

22

Straight-line rent receivable

(584)

(353)

Straight-line rent liability

103

113

Stock-based compensation

754

1,288

Provision for deferred post-retirement benefits

436

1,492

Re-measurement gain of equity interest upon acquisition

-

(2,701)

Other non-cash items

-

254

  Total non-cash items

19,358

18,232

Other items:

Accounts payable and accrued liabilities

5,058

1,090

Other liabilities

997

981

Other assets

488

1,201

Gain on sales of real estate properties

(2,696)

(12,609)

Loss on extinguishment of debt

480

-

Payment of partial pension settlement

-

(2,300)

State income taxes paid, net of refunds

(6)

53

  Total other items

4,321

(11,584)

Net cash provided by operating activities

28,337

27,528

Cash flows from investing activities:

Acquisition and development of real estate properties

(25,268)

(33,076)

Funding of mortgages and notes receivable

(2,090)

(3,451)

Proceeds from sales of real estate

19,588

63,907

Proceeds from mortgages and notes receivable repayments

36

38

Net cash provided by (used in) investing activities

(7,734)

27,418

Cash flows from financing activities:

Net repayments on unsecured credit facilities

(3,000)

(4,000)

Repayments on notes and bonds payable

(524)

(20,548)

Repurchase of notes payable

(8,556)

-

Quarterly dividends paid

(18,417)

(22,829)

Proceeds from issuance of common stock

15,044

183

Debt issuance costs

(474)

-

Capital contributions received from noncontrolling interest holders

633

529

Distributions to noncontrolling interests

(115)

(43)

Net cash used in financing activities

(15,409)

(46,708)

Increase in cash and cash equivalents

5,194

8,238

Cash and cash equivalents, beginning of period

5,851

4,138

Cash and cash equivalents, end of period

$ 11,045

$ 12,376

(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

March 31,

2010

2009

Net Income Attributable to Common Stockholders

$       4,594

$        20,865

  Gain on sales of real estate properties

(2,696)

(12,609)

  Real estate depreciation and amortization

17,333

16,883

  Total adjustments

14,637

4,274

Funds From Operations

$     19,231

$        25,139

Funds From Operations Per Common Share - Basic

$         0.32

$            0.43

Funds From Operations Per Common Share - Diluted

$         0.32

$            0.43

Weighted Average Common Shares Outstanding - Basic

59,961,455

58,130,574

Weighted Average Common Shares Outstanding - Diluted

60,969,730

58,847,384

RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

March 31, 2010

Net Income Attributable to Common Stockholders

$           4,594

  Gain on sales of real estate properties

(2,696)

  Total non-cash items included in cash flows from operating activities (3)

19,358

Funds Available For Distribution

$         21,256

Funds Available For Distribution Per Common Share - Diluted

$             0.35

Weighted Average Common Shares Outstanding - Diluted

60,969,730

(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 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 Condensed Consolidated Statements of Cash Flows that are included in this earnings release.