Healthcare Realty Trust Reports Normalized FFO Of $0.37 Per Share For The Third Quarter

NASHVILLE, Tenn., Nov. 4, 2014 /PRNewswire/ -- Healthcare Realty Trust Incorporated 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.

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.

 

 

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.


 

 

 

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.


 

 

 

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.


 

SOURCE Healthcare Realty Trust Incorporated

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