NASHVILLE, Tenn., Feb. 22 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.
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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.
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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
