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

NASHVILLE, Tenn., May 6, 2015 /PRNewswire/ -- Healthcare Realty Trust Incorporated HR today announced results for the first quarter ended March 31, 2015.  Normalized FFO for the three months ended March 31, 2015 totaled $0.38 per diluted common share.  Over the same time period, year-over-year revenue grew by $5.9 million to $96.5 million.  The Company reported net income attributable to common stockholders for the quarter of $5.4 million.

Salient highlights include:

  • Normalized FFO for the first quarter grew $3.9 million, or 11.6% year-over-year, to $37.4 million. Over the same time period, normalized FFO per share increased 8.6%.
  • The four predictive growth measures in the same store multi-tenant portfolio were:
    • contractual increases for in-place leases ("annual bumps") averaged 3.0%
    • cash leasing spreads for renewals averaged 3.6%
    • tenant retention was 83.1%
    • the average yield on renewed leases increased 60 basis points
  • Average same store occupancy increased to 88.5% from 86.7% and revenue per occupied square foot increased 2.5% for the twelve months ended March 31, 2015 and 2014, respectively.
  • In January 2015, the Company acquired a 111,000 square foot medical office building in California for a total purchase price of $39.3 million. The property is located adjacent to two hospital campuses and is 97% leased.
  • The Company commenced two redevelopment projects with budgets totaling $63.2 million in Tennessee and Alabama with leases in place for 88% of the 432,000 square feet.
  • On April 24, 2015, the Company issued $250 million of unsecured senior notes due in May 2025 with a coupon rate of 3.875%. In conjunction with the issuance of these notes, the Company called its 6.5% unsecured senior notes due 2017, which will be redeemed on May 15, 2015.
  • During the first quarter, Fitch raised the Company's corporate credit rating to BBB with a stable outlook. In April 2015, Standard & Poor's revised its outlook to positive on the Company's BBB- rating. The Company also has a positive outlook on its Baa3 rating from Moody's.
  • A dividend of $0.30 per common share was declared, which is 78.9% of normalized FFO.

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 $3.3 billion in 199 real estate properties and mortgages as of March 31, 2015.  The Company's 198 owned real estate properties are located in 30 states and total approximately 14.3 million square feet.  The Company provided leasing and property management services to approximately 9.5 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, 2014 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:


3/31/2015 



12/31/2014 


Land


$187,951



$183,060


Buildings, improvements and lease intangibles


3,077,828



3,048,251


Personal property


10,014



9,914


Land held for development


21,376



17,054


Total real estate properties


3,297,169



3,258,279


Less accumulated depreciation


(723,393)



(700,671)


Total real estate properties, net


2,573,776



2,557,608


Cash and cash equivalents


10,417



3,519


Mortgage notes receivable


1,900



1,900


Assets held for sale and discontinued operations, net


14,164



9,146


Other assets, net


188,198



185,337


Total assets


$2,788,455



$2,757,510







LIABILITIES AND EQUITY





Liabilities:





Notes and bonds payable


$1,444,555



$1,403,692


Accounts payable and accrued liabilities


50,144



70,240


Liabilities of discontinued operations


102



372


Other liabilities


64,469



62,152


Total liabilities


1,559,270



1,536,456


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; 100,087 and 98,828 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively


1,001



988


Additional paid-in capital


2,423,121



2,389,830


Accumulated other comprehensive income


(3,242)



(2,519)


Cumulative net income attributable to common stockholders


845,631



840,249


Cumulative dividends


(2,037,326)



(2,007,494)


Total equity


1,229,185



1,221,054


Total liabilities and equity


$2,788,455



$2,757,510


 


(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

Condensed Consolidated Statements of Operations (1)

(amounts in thousands, except per share data)

(Unaudited)




Three Months Ended March 31,




2015



2014


Revenues





Rental income


$95,034



$86,502


Mortgage interest


31



2,621


Other operating


1,391



1,448




96,456



90,571


Expenses





Property operating


34,263



32,831


General and administrative


6,738



5,972


Depreciation


26,387



23,667


Amortization


2,667



2,759


Bad debts, net of recoveries


(207)



47




69,848



65,276


Other Income (Expense)





Interest expense


(18,322)



(17,918)


Impairment


(3,328)




Interest and other income, net


91



100




(21,559)



(17,818)







Income From Continuing Operations


5,049



7,477







Discontinued Operations





Income (loss) from discontinued operations


333



(89)


Impairments




(3,425)


Income (Loss) From Discontinued Operations


333



(3,514)







Net Income


5,382



3,963


Less: Net income attributable to noncontrolling interests




(111)


Net Income Attributable To Common Stockholders


$5,382



$3,852


Basic Earnings Per Common Share:





Income from continuing operations


$0.05



$0.08


Discontinued operations


0.00



(0.04)


Net income attributable to common stockholders


$0.05



$0.04


Diluted Earnings Per Common Share:





Income from continuing operations


$0.05



$0.08


Discontinued operations


0.00



(0.04)


Net income attributable to common stockholders


$0.05



$0.04


Weighted Average Common Shares Outstanding—Basic


98,360



94,152


Weighted Average Common Shares Outstanding—Diluted


99,137



95,585


 

(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 March 31,




2015



2014


Net Income Attributable to Common Stockholders


$5,382



$3,852


Impairments


3,328



3,425


Real estate depreciation and amortization


28,532



26,248


Total adjustments


31,860



29,673


Funds From Operations


$37,242



$33,525


Acquisition costs


38




Severance expense


141




Normalized Funds From Operations


$37,421



$33,525


Funds from Operations per Common Share—Diluted


$0.38



$0.35


Normalized Funds From Operations Per Common Share—Diluted


$0.38



$0.35


FFO Weighted Average Common Shares Outstanding


99,137



95,585


 

(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.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/healthcare-realty-trust-reports-normalized-ffo-of-038-per-share-for-the-first-quarter-300078997.html

SOURCE Healthcare Realty Trust Incorporated

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