Healthcare Realty Trust Announces Fourth Quarter Results
NASHVILLE, Tenn., Feb. 22 /PRNewswire-FirstCall/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the fourth quarter ended December 31, 2009. Funds from operations ("FFO," as defined by the National Association of Real Estate Investment Trusts, "NAREIT") per diluted common share for the three months ended December 31, 2009 totaled $0.35, compared with $0.49 for the three months ended December 31, 2008. FFO per diluted common share totaled $1.66 for the twelve months ended December 31, 2009, compared with the prior year's $1.63.
Funds available for distribution ("FAD") for the three months ended December 31, 2009 totaled $0.39 per diluted common share.
Revenues for the three months ended December 31, 2009 totaled $63.7 million, compared with the prior year's $57.0 million. Revenues for the twelve months ended December 31, 2009 totaled $253.3 million, compared with the prior year's $213.9 million. Income from continuing operations for the three months ended December 31, 2009 totaled $3.9 million, compared with $6.9 million for the three months ended December 31, 2008. Income from continuing operations for the twelve months ended December 31, 2009 totaled $28.2 million, compared with the prior year's $18.2 million.
Net income attributable to common stockholders for the three months ended December 31, 2009 totaled $4.4 million, or $0.07 per diluted common share, versus $15.6 million, or $0.27 per diluted common share, for the three months ended December 31, 2008. Net income attributable to common stockholders for the twelve months ended December 31, 2009 totaled $51.1 million, or $0.87 per diluted common share, compared with $41.7 million, or $0.79 per diluted common share for the twelve months ended December 31, 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 $2.3 billion in 204 real estate properties and mortgages as of December 31, 2009, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company's 199 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 28 states, totaling approximately 12.3 million square feet. The Company provides property management services to approximately 9.3 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, 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
Consolidated Statements of Income (1)
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------
2009 2008 2009 2008
------------------ ------------------
REVENUES
Master lease rent $14,598 $14,657 $57,648 $58,073
Property operating 45,615 37,053 180,024 136,745
Straight-line rent 598 717 2,027 651
Mortgage interest 520 561 2,646 2,207
Other operating 2,333 4,009 10,959 16,255
----- ----- ------ ------
63,664 56,997 253,304 213,931
EXPENSES
General and administrative 5,090 5,588 22,493 23,514
Property operating 24,235 23,108 95,141 82,223
Impairment - - - 1,600
Bad debts, net of recoveries 108 1,478 537 1,833
Depreciation 16,076 12,972 62,447 48,129
Amortization 1,196 930 5,259 2,849
----- --- ----- -----
46,705 44,076 185,877 160,148
OTHER INCOME (EXPENSE)
Gain on extinguishment
of debt, net - 2,079 - 4,102
Re-measurement gain of
equity interest upon
acquisition - - 2,701 -
Interest expense (13,549) (9,748) (43,080) (42,126)
Interest and other income,
net 498 1,632 1,173 2,439
--- ----- ----- -----
(13,051) (6,037) (39,206) (35,585)
------- ------ ------- -------
INCOME FROM CONTINUING
OPERATIONS 3,908 6,884 28,221 18,198
DISCONTINUED OPERATIONS
Income from discontinued
operations 507 8,843 2,813 14,605
Impairments - (857) (22) (886)
Gain on sales of real
estate properties - 745 20,136 9,843
---- --- ------ -----
INCOME FROM DISCONTINUED
OPERATIONS 507 8,731 22,927 23,562
--- ----- ------ ------
NET INCOME 4,415 15,615 51,148 41,760
Less: Net income attributable
to noncontrolling interests (45) (16) (57) (68)
--- --- --- ---
NET INCOME ATTRIBUTABLE
TO COMMON STOCKHOLDERS $4,370 $15,599 $51,091 $41,692
====== ======= ======= =======
BASIC EARNINGS PER COMMON SHARE
Income from continuing
operations $0.07 $0.12 $0.48 $0.35
Discontinued operations - 0.15 0.40 0.46
---- ---- ---- ----
Net income attributable
to common stockholders $0.07 $0.27 $0.88 $0.81
===== ===== ===== =====
DILUTED EARNINGS PER COMMON SHARE
Income from continuing
operations $0.07 $0.12 $0.48 $0.35
Discontinued operations - 0.15 0.39 0.44
---- ---- ---- ----
Net income attributable
to common stockholders $0.07 $0.27 $0.87 $0.79
===== ===== ===== =====
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC 58,357,290 57,765,614 58,199,592 51,547,279
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
DILUTED 59,311,720 58,705,348 59,047,314 52,564,944
========== ========== ========== ==========
(1) The 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
Consolidated Statements of Cash Flows (1)
(Dollars in thousands)
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Cash flows from operating activities:
Net income $4,415 $15,615 $51,148 $41,760
Non-cash items:
---------------
Depreciation and amortization
- real estate 16,539 13,769 66,914 52,069
Depreciation and amortization
- other 1,493 812 4,007 2,679
Provision for bad debts, net
of recoveries 108 1,478 517 1,904
Impairments - 857 22 2,486
Straight-line rent receivable (577) (718) (1,925) (643)
Straight-line rent liability 108 276 444 423
Equity in (income) losses from
unconsolidated joint ventures - (1,114) 2 (1,021)
Stock-based compensation 425 (707) 3,711 2,780
Provision for deferred
post-retirement benefits 417 2,510 2,860 4,992
Re-measurement gain of equity
interest upon acquisition - - (2,701) -
Other non-cash items (38) (13) 723 559
--- --- --- ---
Total non-cash items 18,475 17,150 74,574 66,228
Other items:
------------
Accounts payable and accrued
liabilities (6,857) (6,556) 5,127 3,097
Other liabilities 4,864 3,280 (3,508) 2,313
Other assets (65) 1,765 (1,017) 6,794
Gain on sales of real estate
properties - (745) (20,136) (9,843)
Gain on sale of land - (384) - (384)
Gain on extinguishment of debt - (2,079) - (4,102)
Payment of partial pension settlement - - (2,300) -
State income taxes paid, net
of refunds (12) 39 (674) (612)
--- --- ---- ----
Total other items (2,070) (4,680) (22,508) (2,737)
------ ------ ------- ------
Net cash provided by operating
activities 20,820 28,085 103,214 105,251
Cash flows from investing activities:
Acquisition and development of
real estate properties (71,254) (245,250) (170,520) (383,702)
Funding of mortgages and notes
receivable (10,208) (24,451) (23,391) (36,970)
Investment in unconsolidated
joint ventures - - (184) -
Distributions received from
unconsolidated joint ventures - - - 882
Partial redemption of preferred equity
investment in an unconsolidated
joint venture - - - 5,546
Proceeds from sales of real estate - 12,452 83,441 37,133
Proceeds from mortgages and notes
receivable repayments 12,688 5,602 12,893 8,236
------ ----- ------ -----
Net cash used in investing
activities (68,774) (251,647) (97,761) (368,875)
Cash flows from financing activities:
Net borrowings (repayments) on
unsecured credit facilities (323,000) 261,000 (279,000) 193,000
Borrowings on notes and
bonds payable 377,969 - 377,969 -
Repayments on notes and
bonds payable (5,793) (1,093) (28,433) (3,813)
Repurchase of notes payable (14,222) - (45,460)
Quarterly dividends paid (22,855) (22,692) (91,385) (81,301)
Proceeds from issuance of
common stock 25,933 193 26,467 197,255
Equity issuance costs (3) (357) (3) (389)
Common stock redemption - - (8) (282)
Debt issuance costs (3,900) - (11,293) -
Credit facility amendment and
extension fees - (800) - (1,126)
Capital contributions received from
noncontrolling interests 457 573 2,228 1,469
Distributions to noncontrolling
interests (91) (58) (282) (110)
--- --- ---- ----
Net cash provided by (used in)
financing activities 48,717 222,544 (3,740) 259,243
------ ------- ------ -------
Increase (decrease) in cash and
cash equivalents 763 (1,018) 1,713 (4,381)
Cash and cash equivalents,
beginning of period 5,088 5,156 4,138 8,519
----- ----- ----- -----
Cash and cash equivalents,
end of period $5,851 $4,138 $5,851 $4,138
====== ====== ====== ======
(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,
------------------ -------------------
2009 2008 2009 2008
------------------ -------------------
Net Income Attributable
to Common Stockholders $4,370 $15,599 $51,091 $41,692
Gain on sales of real
estate properties - (1,129) (20,136) (10,227)
Real estate depreciation
and amortization 16,539 14,094 66,927 53,972
------ ------ ------ ------
Total adjustments 16,539 12,965 46,791 43,745
------ ------ ------ ------
Funds From Operations -
Basic and Diluted $20,909 $28,564 $97,882 $85,437
======= ======= ======= =======
Funds From Operations
Per Common Share - Basic $0.36 $0.49 $1.68 $1.66
===== ===== ===== =====
Funds From Operations
Per Common Share -
Diluted $0.35 $0.49 $1.66 $1.63
===== ===== ===== =====
Weighted Average Common
Shares Outstanding -
Basic 58,357,290 57,765,614 58,199,592 51,547,279
========== ========== ========== ==========
Weighted Average Common
Shares Outstanding -
Diluted 59,311,720 58,705,348 59,047,314 52,564,944
========== ========== ========== ==========
RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
December 31, 2009
------------------
Net Income Attributable to Common Stockholders $4,370
Gain on sales of real estate properties -
Total non-cash items included in cash flows
from operating activities (3) 18,475
------
Funds Available For Distribution $22,845
=======
Funds Available For Distribution Per Common Share - Diluted $0.39
=====
Weighted Average Common Shares Outstanding - Diluted 59,311,720
==========
(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 Consolidated Statements of Cash Flows that are included in
this earnings release.
SOURCE Healthcare Realty Trust Incorporated
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