Healthcare Realty Trust Reports Normalized FFO Of $0.31 Per Share For The Fourth Quarter

HEALTHCARE REALTY TRUST INCORPORATED
Consolidated Balance Sheets ⁽¹⁾
(dollars in thousands, except for share data)
(Unaudited)

ASSETS

Real Estate Properties:

12/31/2012

12/31/2011

Land

$ 161,875

$ 162,843

Buildings, improvements, and lease intangibles

2,625,538

2,521,226

Personal property

19,100

18,221

Construction in progress

-

61,152

Land held for development

25,171

25,176

Total real estate properties 

2,831,684

2,788,618

Less accumulated depreciation

(586,725)

(516,747)

Total real estate properties, net

2,244,959

2,271,871

Cash and cash equivalents

6,776

4,738

Mortgage notes receivable

162,191

97,381

Assets held for sale and discontinued operations, net

3,337

28,650

Other assets, net

122,709

118,382

Total assets

$ 2,539,972

$ 2,521,022

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Notes and bonds payable

$ 1,293,044

$ 1,393,537

Accounts payable and accrued liabilities

65,678

72,217

Liabilities of discontinued operations

131

518

Other liabilities

60,175

49,944

Total liabilities

1,419,028

1,516,216

Commitments and contingencies

Stockholders' Equity:

Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding

-

-

Common stock, $.01 par value; 150,000,000 shares authorized; 87,514,336 and 77,843,883
shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively

875

779

Additional paid-in capital

2,100,297

1,894,604

Accumulated other comprehensive loss

(2,092)

(3,332)

Cumulative net income attributable to common stockholders

801,416

795,951

Cumulative dividends

(1,779,552)

(1,683,196)

Total stockholders' equity

1,120,944

1,004,806

Total liabilities and stockholders' equity

$ 2,539,972

$ 2,521,022

         (1)      The Consolidated Balance Sheets 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 Operations ⁽¹⁾  
(dollars in thousands, except for share data)  
(Unaudited)  

 Three Months Ended  
           December 31, 
 

 Twelve Months Ended 
 December 31,

2012

2011

2012

2011

Revenues

Rental income

$ 77,207

$ 72,026

$ 301,055

$ 276,712

Mortgage interest 

2,611

1,723

9,186

6,973

Other operating 

1,442

1,510

6,109

7,907

81,260

75,259

316,350

291,592

Expenses

Property operating 

30,154

28,217

117,683

113,083

General and administrative

6,395

4,523

20,908

20,990

Depreciation

22,422

20,194

85,122

75,292

Amortization

2,923

2,465

10,510

8,198

Bad debt, net of recoveries

94

(169)

243

(250)

61,988

55,230

234,466

217,313

Other Income (Expense)

Loss on extinguishment of debt

-

-

-

(1,986)

Interest expense

(19,239)

(18,492)

(75,053)

(76,038)

Interest and other income, net

360

201

981

819

(18,879)

(18,291)

(74,072)

(77,205)

Income (Loss) From Continuing Operations

393

1,738

7,812

(2,926)

Discontinued Operations

Income (loss) from discontinued operations

(220)

535

1,757

2,404

Impairments

(7,712)

(4,999)

(14,908)

(6,697)

Gain on sales of real estate properties

1,177

5,642

10,874

7,035

Income (Loss) From Discontinued Operations

(6,755)

1,178

(2,277)

2,742

Net Income (Loss)

(6,362)

2,916

5,535

(184)

Less:  Net income attributable to noncontrolling interests

(29)

-

(70)

(30)

Net Income (Loss) Attributable to Common Stockholders 

$(6,391)

$ 2,916

$ 5,465

$ (214)

Basic Earnings (Loss) Per Common Share 

Income (loss) from continuing operations

$0.00

$ 0.02

$ 0.10

$ (0.04)

Discontinued operations 

(0.07)

0.02

(0.03)

0.04

Net income (loss) attributable to common stockholders

$(0.07)

$ 0.04

$ 0.07

$ 0.00

Diluted Earnings (Loss) Per Common Share

Income (loss) from continuing operations

$0.00

$ 0.02

$ 0.10

$ (0.04)

Discontinued operations 

(0.07)

0.02

(0.03)

0.04

Net income (loss) attributable to common stockholders

$(0.07)

$ 0.04

$ 0.07

$ 0.00

Weighted Average Common Shares Outstanding - Basic

85,725,611

76,404,709

78,844,840

72,720,147

Weighted Average Common Shares Outstanding - Diluted

87,049,034

77,474,951

80,127,883

72,720,147

(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
Reconciliation of Funds from Operations^{(1) (2)}
(dollars in thousands, except per share data)
(Unaudited)

Three Months Ended 
December 31, 2012 

Three Months Ended
December 31, 2011

Net Income (Loss) Attributable to Common Stockholders

$ (6,391)

$ 2,916

Gain on sales of real estate properties

(1,177)

(5,642)

Impairments

7,712

4,999

Real estate depreciation and amortization

24,932

23,062

Total adjustments

31,467

22,419

Funds From Operations

$ 25,076

$ 25,335

Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition

1,100

-

Acquisition costs

385

199

Write off of deferred financing costs upon renewal of line of credit facility

-

393

Normalized Funds From Operations

$ 26,561

$ 25,927

Funds From Operations Per Common Share - Diluted

$ 0.29

$ 0.33

Normalized Funds From Operations Per Common Share - Diluted

$ 0.31

$ 0.33

Weighted Average Common Shares Outstanding - Diluted

87,049,034

77,474,951

Reconciliation of Funds Available for Distribution⁽²⁾
(Dollars in thousands, except per share data)
(Unaudited)

Three Months Ended
December 31, 2012 

Three Months Ended
December 31, 2011

Net Income (Loss) Attributable to Common Stockholders

$ (6,391)

$ 2,916

Gain on sales of real estate properties

(1,177)

(5,642)

Impairments

7,712

4,999

Depreciation and amortization - real estate

24,932

23,062

Depreciation and amortization - other

1,579

1,942

Provision for bad debt, net 

93

(95)

Straight-line rent receivable

(1,087)

(1,137)

Straight-line rent liability

106

119

Stock-based compensation

904

650

Provision for deferred post-retirement benefits

266

461

Total non-cash items included in cash flows from operating activities 

33,328

24,359

Funds Available For Distribution

$ 26,937

$ 27,275

Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition

1,100

-

Acquisition costs

385

199

Normalized Funds Available For Distribution

$ 28,422

$ 27,474

Funds Available For Distribution Per Common Share - Diluted

$ 0.31

$ 0.35

Normalized Funds Available For Distribution Per Common Share - Diluted

$ 0.33

$ 0.35

Weighted Average Common Shares Outstanding - Diluted

87,049,034

77,474,951

(1)

Funds from operations ("FFO") and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). 

NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to "net income (computed in accordance with GAAP), excluding 

gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures."  

(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.