Healthcare Realty Trust Reports Normalized FFO Of $0.38 Per Share For The Fourth Quarter

HEALTHCARE REALTY TRUST INCORPORATED

Consolidated Balance Sheets ⁽¹⁾

(amounts in thousands, except per share data)

ASSETS

Real Estate Properties:

12/31/2014

12/31/2013

Land

$183,060

$178,931

Buildings, improvements and lease intangibles

3,048,251

2,861,935

Personal property

9,914

9,267

Land held for development

17,054

17,054

Total real estate properties

3,258,279

3,067,187

Less accumulated depreciation

(700,671)

(632,109)

Total real estate properties, net

2,557,608

2,435,078

Cash and cash equivalents

3,519

8,671

Mortgage notes receivable

1,900

125,547

Assets held for sale and discontinued operations, net

9,146

6,852

Other assets, net

185,337

153,514

Total assets

$2,757,510

$2,729,662

LIABILITIES AND EQUITY

Liabilities:

Notes and bonds payable

$1,403,692

$1,348,459

Accounts payable and accrued liabilities

70,240

73,741

Liabilities of discontinued operations

372

1,112

Other liabilities

62,152

61,064

Total liabilities

1,536,456

1,484,376

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; 98,828 and 95,924 shares issued and
outstanding at December 31, 2014 and December 31, 2013, respectively

988

959

Additional paid-in capital

2,389,830

2,325,228

Accumulated other comprehensive income

(2,519)

51

Cumulative net income attributable to common stockholders

840,249

808,362

Cumulative dividends

(2,007,494)

(1,891,123)

Total stockholders' equity

1,221,054

1,243,477

Noncontrolling interests

—

1,809

Total equity

1,221,054

1,245,286

Total liabilities and equity

$2,757,510

$2,729,662

(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⁾

(amounts in thousands, except per share data)

(Unaudited)

Three Months Ended  December 31,

Twelve Months Ended December 31,

2014

2013

2014

2013

Revenues

Rental income

$93,649

$84,825

$361,525

$312,322

Mortgage interest

32

2,411

3,665

12,701

Other operating

1,320

1,386

5,665

5,926

95,001

88,622

370,855

330,949

Expenses

Property operating

33,386

31,227

134,057

122,571

General and administrative

5,990

5,758

22,808

23,704

Depreciation

25,881

23,074

99,384

86,239

Amortization

2,630

2,826

10,820

10,645

Bad debt, net of recoveries

(92)

61

31

172

67,795

62,946

267,100

243,331

Other Income (Expense)

Loss on extinguishments of debt

—

—

—

(29,638)

Interest expense

(18,237)

(17,772)

(72,413)

(73,511)

Gain on sale of cost method investment in real estate

—

1,492

—

1,492

Interest and other income, net

91

260

2,637

947

(18,146)

(16,020)

(69,776)

(100,710)

Income (Loss) From Continuing Operations

9,060

9,656

33,979

(13,092)

Discontinued Operations

Income from discontinued operations

728

52

967

5,246

Impairments

(995)

—

(12,029)

(9,889)

Gain on sales of real estate properties

9,280

2,748

9,283

24,718

Income (Loss) From Discontinued Operations

9,013

2,800

(1,779)

20,075

Net Income

18,073

12,456

32,200

6,983

Less: Net (income) attributable to noncontrolling interests

—

(72)

(313)

(37)

Net Income Attributable To Common Stockholders

$18,073

$12,384

$31,887

$6,946

Basic Earnings Per Common Share:

Income (loss) from continuing operations

$0.09

$0.10

$0.35

($0.14)

Discontinued operations

0.10

0.03

(0.02)

0.22

Net income attributable to common stockholders

$0.19

$0.13

$0.33

$0.08

Diluted Earnings Per Common Share:

Income (loss) from continuing operations

$0.09

$0.10

$0.35

($0.14)

Discontinued operations

0.09

0.03

(0.02)

0.22

Net income attributable to common stockholders

$0.18

$0.13

$0.33

$0.08

Weighted Average Common Shares Outstanding—Basic

96,566

94,114

95,279

90,941

Weighted Average Common Shares Outstanding—Diluted

98,086

95,485

96,759

90,941

(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,

2014

2013

Net Income Attributable to Common Stockholders

$18,073

$12,384

Gain on sales of real estate properties

(9,280)

(2,748)

Impairments

995

—

Real estate depreciation and amortization

27,897

25,776

Total adjustments

19,612

23,028

Funds From Operations ⁽³⁾

$37,685

$35,412

Acquisition costs

471

681

Reversal of restricted stock amortization upon director resignation

(115)

—

Security deposit recognized upon sale

(407)

—

Gain on sale of cost method investment in real estate

—

(1,492)

Normalized Funds From Operations

$37,634

$34,601

$0.38

$0.37

$0.38

$0.36

FFO Weighted Average Common Shares Outstanding

98,086

95,485

(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 does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in
        the United States of America and is not necessarily indicative of cash available to fund cash needs. FFO should not be considered an alternative
        to net income attributable to common stockholders as an indicator of the Company's operating performance or as an alternative to cash flow
        as a measure 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.