Healthcare Realty Trust Reports Normalized FFO Of $0.36 Per Share For The Fourth Quarter

HEALTHCARE REALTY TRUST INCORPORATED

Consolidated Balance Sheets ⁽¹⁾

(amounts in thousands, except for share data)

ASSETS

Real Estate Properties:

12/31/2013

12/31/2012

Land

$178,931

$161,875

Buildings, improvements and lease intangibles

2,861,935

2,625,538

Personal property

9,267

8,739

Land held for development

17,054

25,171

Total real estate properties

3,067,187

2,821,323

Less accumulated depreciation

(632,109)

(580,617)

Total real estate properties, net

2,435,078

2,240,706

Cash and cash equivalents

8,671

6,776

Mortgage notes receivable

125,547

162,191

Assets held for sale and discontinued operations, net

6,852

3,337

Other assets, net

153,514

126,962

Total assets

$2,729,662

$2,539,972

LIABILITIES AND EQUITY

Liabilities:

Notes and bonds payable

$1,348,459

$1,293,044

Accounts payable and accrued liabilities

73,741

65,678

Liabilities of discontinued operations

1,112

131

Other liabilities

61,064

60,175

Total liabilities

1,484,376

1,419,028

Commitments and contingencies

Equity:

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

—

—

Common stock, $.01 par value; 150,000 shares authorized; 95,924 and 87,514 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively

959

875

Additional paid-in capital

2,325,228

2,100,297

Accumulated other comprehensive income (loss)

51

(2,092)

Cumulative net income attributable to common stockholders

808,362

801,416

Cumulative dividends

(1,891,123)

(1,779,552)

Total stockholders' equity

1,243,477

1,120,944

Noncontrolling interests

1,809

—

Total equity

1,245,286

1,120,944

Total liabilities and equity

$2,729,662

$2,539,972

HEALTHCARE REALTY TRUST INCORPORATED

Consolidated Statements of Operations ⁽¹⁾

(amounts in thousands, except for share data)

(Unaudited)

Three Months Ended

 December 31,

Twelve Months Ended

December 31,

2013

2012

2013

2012

Revenues

Rental income

$86,318

$74,197

$318,294

$288,787

Mortgage interest

2,411

2,611

12,701

9,186

Other operating

1,387

1,442

5,931

6,101

90,116

78,250

336,926

304,074

Expenses

Property operating

31,945

29,841

125,565

116,470

General and administrative

5,764

6,395

23,729

20,905

Depreciation

23,608

21,632

88,380

81,966

Amortization

2,826

2,900

10,645

10,418

Bad debt, net of recoveries

66

92

184

241

64,209

60,860

248,503

230,000

Other Income (Expense)

Loss on extinguishments of debt

—

—

(29,638)

—

Interest expense

(17,772)

(19,215)

(73,511)

(74,955)

Gain on sale of cost method investment in real estate

1,492

—

1,492

—

Interest and other income, net

261

358

966

976

(16,019)

(18,857)

(100,691)

(73,979)

Income (Loss) From Continuing Operations

9,888

(1,467)

(12,268)

95

Discontinued Operations

Income from discontinued operations

(180)

1,640

4,422

9,474

Impairments

—

(7,712)

(9,889)

(14,908)

Gain on sales of real estate properties

2,748

1,177

24,718

10,874

Income From Discontinued Operations

2,568

(4,895)

19,251

5,440

Net Income (Loss)

12,456

(6,362)

6,983

5,535

Less: Net (income) attributable to noncontrolling interests

(72)

(29)

(37)

(70)

Net Income (Loss) Attributable To Common Stockholders

$12,384

($6,391)

$6,946

$5,465

Basic Earnings (Loss) Per Common Share:

Income (loss) from continuing operations

$0.11

($0.01)

($0.13)

$0.00

Discontinued operations

0.02

(0.06)

0.21

0.07

Net income (loss) attributable to common stockholders

$0.13

($0.07)

$0.08

$0.07

Diluted Earnings (Loss) Per Common Share:

Income (loss) from continuing operations

$0.10

($0.01)

($0.13)

$0.00

Discontinued operations

0.03

(0.06)

0.21

0.07

Net income (loss) attributable to common stockholders

$0.13

($0.07)

$0.08

$0.07

Weighted Average Common Shares Outstanding—Basic

94,114

85,726

90,941

78,845

Weighted Average Common Shares Outstanding—Diluted

95,485

85,726

90,941

80,128

(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 FFO and Normalized FFO ^{(1) (2)}

(amounts in thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

2013

2012

Net Income Attributable to Common Stockholders

$12,384

($6,391)

Gain on sales of real estate properties

(2,748)

(1,177)

Impairments

—

7,712

Real estate depreciation and amortization

25,776

24,932

Total adjustments

23,028

31,467

Funds From Operations ⁽³⁾

$35,412

$25,076

Gain on sale of cost method investment in real estate

(1,492)

Acquisition costs

681

385

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

—

1,100

Normalized Funds From Operations

$34,601

$26,561

Funds from Operations per Common Share—Diluted

$0.37

$0.29

Normalized Funds From Operations Per Common Share—Diluted

$0.36

$0.31

FFO Weighted Average Common Shares Outstanding

95,485

87,049

Normalized FFO Weighted Average Common Shares Outstanding

95,485

87,049

(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)     FFO for the fourth quarter of 2013 includes the impact of a gain recognized on the sale of a cost method investment in an unconsolidated limited liability company. 

HEALTHCARE REALTY TRUST INCORPORATED

Reconciliation of FAD and Normalized FAD ⁽¹⁾

(amounts in thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

2013

2012

Net Income Attributable to Common Stockholders

$12,384

($6,391)

Gain on sales of real estate properties

(2,748)

(1,177)

Impairments

—

7,712

Depreciation and amortization

27,590

26,511

Provision for bad debt, net

66

93

Straight-line rent receivable

(2,954)

(1,087)

Straight-line rent liability

115

106

Stock-based compensation

1,079

904

Provision for deferred post-retirement benefits

218

266

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

23,366

33,328

Funds Available For Distribution

$35,750

$26,937

Gain on sale of cost method investment in real estate

(1,492)

Acquisition costs

681

385

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

—

1,100

Normalized Funds Available For Distribution

$34,939

$28,422

Funds Available For Distribution Per Common Share—Diluted

$0.37

$0.31

Normalized Funds Available For Distribution Per Common Share—Diluted

$0.37

$0.33

FAD Weighted Average Common Shares Outstanding

95,485

87,049

Normalized FAD Weighted Average Common Shares Outstanding

95,485

87,049

(1) 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.