HEALTHCARE REALTY TRUST INC - FORM 8-K - EX-99.1 - EXHIBIT99.1 - November 4, 2014

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8-K - 8-K - HEALTHCARE REALTY TRUST INChr-2014930xearnings8xk.htm
EX-99.2 - EXHIBIT99.2 - HEALTHCARE REALTY TRUST INCexhibit992thirdquarter2014.htm
EX-99.3 - EXHIBIT99.3 - HEALTHCARE REALTY TRUST INCexhibit993supplementalinfo.htm



Carla Baca
Director of Corporate Communications
P: 615.269.8175
News Release
HEALTHCARE REALTY TRUST REPORTS NORMALIZED FFO OF $0.37 PER SHARE FOR THE THIRD QUARTER

NASHVILLE, Tennessee, November 4, 2014 - Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the third quarter ended September 30, 2014. Normalized FFO for the three months ended September 30, 2014 totaled $0.37 per diluted common share.

Salient third quarter highlights include:
•
Normalized FFO grew $5.4 million, or 17.6% year-over-year, to $35.9 million. Over the same time period, normalized FFO per share increased 15.6%.
•
During the third quarter, the Company purchased two on-campus medical office buildings totaling 108,000 square feet for a total purchase price of $27.8 million. These properties are collectively 95% leased.
•
In October 2014, the Company acquired a 69,000 square foot, 97% leased, on-campus medical office building in Oklahoma for a purchase price of $17.4 million.
•
Occupancy at the twelve development conversion properties rose 8% in the third quarter to 78%. At this occupancy level, NOI is expected to be $4.7 million when all occupants are in place and paying rent for an entire quarter.
•
Same store NOI grew by 3.6% year-over-year and occupancy remained stable at 91%.
•
Leases totaling 770,000 square feet commenced or renewed at the Company's multi-tenant properties, including 572,000 square feet in the same store portfolio where tenant retention was 86%.
•
A dividend of $0.30 per common share was declared, which is 81.1% of normalized FFO.

For the three months ended September 30, 2014, year-over-year revenue grew by $10.8 million to $94.5 million. The Company reported net income attributable to common stockholders for the quarter of $4.0 million.
Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing 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 $3.2 billion in 201 real estate properties and mortgages as of September 30, 2014. The Company's 200 owned real estate properties are located in 30 states and total approximately 14.3 million square feet. The Company provides property management services to approximately 9.7 million square feet nationwide.
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Additional information regarding the Company, including this quarter's operations, can be found at www.healthcarerealty.com. 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, 2013 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 statements.


 
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HEALTHCARE REALTY TRUST INCORPORATED
Condensed Consolidated Balance Sheets (1) 
(amounts in thousands, except per share data)
(Unaudited)
 
ASSETS
 
 
 
 
Real Estate Properties:
 
9/30/2014

 
12/31/2013

Land
 

$183,991

 

$178,931

Buildings, improvements and lease intangibles
 
3,030,960

 
2,861,935

Personal property
 
9,535

 
9,267

Land held for development
 
17,054

 
17,054

Total real estate properties
 
3,241,540

 
3,067,187

Less accumulated depreciation
 
(693,517
)
 
(632,109
)
Total real estate properties, net
 
2,548,023

 
2,435,078

Cash and cash equivalents
 
1,684

 
8,671

Mortgage notes receivable
 
1,900

 
125,547

Assets held for sale and discontinued operations, net
 
11,479

 
6,852

Other assets, net
 
178,238

 
153,514

Total assets
 

$2,741,324

 

$2,729,662

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Notes and bonds payable
 

$1,403,379

 

$1,348,459

Accounts payable and accrued liabilities
 
60,017

 
73,741

Liabilities of discontinued operations
 
508

 
1,112

Other liabilities
 
57,913

 
61,064

Total liabilities
 
1,521,817

 
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; 98,119 and 95,924 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively
 
981

 
959

Additional paid-in capital
 
2,374,345

 
2,325,228

Accumulated other comprehensive income
 
51

 
51

Cumulative net income attributable to common stockholders
 
822,176

 
808,362

Cumulative dividends
 
(1,978,046
)
 
(1,891,123
)
Total stockholders’ equity
 
1,219,507

 
1,243,477

Noncontrolling interests
 
—

 
1,809

Total equity
 
1,219,507

 
1,245,286

Total liabilities and equity
 

$2,741,324

 

$2,729,662

 
(1)
The Condensed 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.


 
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HEALTHCARE REALTY TRUST INCORPORATED
Condensed Consolidated Statements of Operations (1) 
(amounts in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
 
Nine Months Ended September 30,
 
 
 
2014

 
2013

 
2014

 
2013

Revenues
 
 
 
 
 
 
 
 
Rental income
 

$92,987

 

$78,161

 

$270,513

 

$230,094

Mortgage interest
 
44

 
3,926

 
3,634

 
10,290

Other operating
 
1,475

 
1,579

 
4,349

 
4,542

 
 
94,506

 
83,666

 
278,496

 
244,926

Expenses
 
 
 
 
 
 
 
 
Property operating
 
34,678

 
32,244

 
102,077

 
92,742

General and administrative
 
5,190

 
5,582

 
16,834

 
17,961

Depreciation
 
25,660

 
21,716

 
74,408

 
63,970

Amortization
 
2,656

 
2,595

 
8,190

 
7,819

Bad debt, net of recoveries
 
3

 
109

 
123

 
116

 
 
68,187

 
62,246

 
201,632

 
182,608

Other Income (Expense)
 
 
 
 
 
 
 
 
Loss on extinguishments of debt
 
—

 
—

 
—

 
(29,638
)
Interest expense
 
(18,192
)
 
(17,043
)
 
(54,176
)
 
(55,738
)
Interest and other income, net
 
410

 
237

 
2,545

 
686

 
 
(17,782
)
 
(16,806
)
 
(51,631
)
 
(84,690
)
 
 
 
 
 
 
 
 
 
Income (Loss) From Continuing Operations
 
8,537

 
4,614

 
25,233

 
(22,372
)
 
 
 
 
 
 
 
 
 
Discontinued Operations
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations
 
121

 
1,241

 
(75
)
 
4,818

Impairments
 
(4,505
)
 
(6,259
)
 
(11,034
)
 
(9,889
)
Gain on sales of real estate properties
 
—

 
20,187

 
3

 
21,970

Income (Loss) From Discontinued Operations
 
(4,384
)
 
15,169

 
(11,106
)
 
16,899

 
 
 
 
 
 
 
 
 
Net Income (Loss)
 
4,153

 
19,783

 
14,127

 
(5,473
)
Less: Net (income) loss attributable to noncontrolling interests
 
(162
)
 
(18
)
 
(313
)
 
34

Net Income (Loss) Attributable To Common Stockholders
 

$3,991

 

$19,765

 

$13,814

 

($5,439
)
Basic Earnings (Loss) Per Common Share:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 

$0.09

 

$0.05

 

$0.27

 

($0.25
)
Discontinued operations
 
(0.05
)
 
0.16

 
(0.12
)
 
0.19

Net income (loss) attributable to common stockholders
 

$0.04

 

$0.21

 

$0.15

 

($0.06
)
Diluted Earnings (Loss) Per Common Share:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 

$0.09

 

$0.05

 

$0.26

 

($0.25
)
Discontinued operations
 
(0.05
)
 
0.16

 
(0.12
)
 
0.19

Net income (loss) attributable to common stockholders
 

$0.04

 

$0.21

 

$0.14

 

($0.06
)
Weighted Average Common Shares Outstanding—Basic
 
95,858

 
93,443

 
94,846

 
89,871

Weighted Average Common Shares Outstanding—Diluted
 
97,329

 
94,836

 
96,310

 
89,871

(1)
The Condensed 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.

 
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HEALTHCARE REALTY TRUST INCORPORATED
Reconciliation of FFO and Normalized FFO (1) (2) 
(amounts in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
Three Months Ended September 30,
 
 
 
2014

 
2013

Net Income Attributable to Common Stockholders
 

$3,991

 

$19,765

Gain on sales of real estate properties
 
—

 
(20,187
)
Impairments
 
4,505

 
6,259

Real estate depreciation and amortization
 
27,697

 
24,214

Total adjustments
 
32,202

 
10,286

Funds From Operations
 

$36,193

 

$30,051

Acquisition costs
 
188

 
504

Reversal of restricted stock amortization upon officer resignation
 
(445
)
 
—

Normalized Funds From Operations
 

$35,936

 

$30,555

Funds from Operations per Common Share—Diluted
 

$0.37

 

$0.32

Normalized Funds From Operations Per Common Share—Diluted
 

$0.37

 

$0.32

FFO Weighted Average Common Shares Outstanding
 
97,329

 
94,836



(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.










 
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