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Press release from PR Newswire

Healthcare Realty Trust Reports Normalized FFO Of $0.31 Per Share For The Fourth Quarter

Wednesday, February 20, 2013

Healthcare Realty Trust Reports Normalized FFO Of $0.31 Per Share For The Fourth Quarter17:05 EST Wednesday, February 20, 2013NASHVILLE, Tenn., Feb. 20, 2013 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced results for the fourth quarter ended December 31, 2012.  Normalized FFO for the three months ended December 31, 2012 totaled $0.31 per diluted common share.  Normalized FAD for the three months ended December 31, 2012 totaled $0.33 per diluted common share.  Salient highlights include:The year-over-year NOI for the same facility portfolio increased 3.8% in the fourth quarter. Healthcare Realty's stabilizing properties ("SIP") were 60% leased at year-end 2012.  NOI for the SIP properties reached approximately $1 million per quarter. Since the beginning of the fourth quarter, the Company acquired five facilities for a total purchase price of $87.6 million.  The buildings total approximately 288,000 square feet and have an average occupancy rate of 98%.  The per share results for the quarter were negatively affected by approximately $0.03 because of the 9.2 million shares issued at the end of the third quarter used primarily to fund the Mercy Health properties under construction.  This interim dilution will reverse to accretion as the properties are completed in the second half of 2013. In January 2013, the Company sold 1.6 million shares of common stock under its at-the-market equity offering program ("ATM") for approximately $39.7 million in net proceeds used to fund recent acquisitions. A dividend of $0.30 per share was declared for the fourth quarter of 2012, which is 90.9% of normalized FAD. For the three months ended December 31, 2012, revenues grew by $1.7 million to $81.3 million, income from continuing operations totaled $0.4 million, and the Company recognized a net loss, including $7.7 million in impairment charges, totaling $6.4 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 $3.0 billion in 207 real estate properties and mortgages as of December 31, 2012.  The Company's 202 owned real estate properties are located in 28 states and total approximately 13.6 million square feet.  The Company provides property management services to approximately 10.1 million square feet nationwide.The Company directs interested parties to its Internet site, www.healthcarerealty.com, where information is posted regarding this quarter's operations.  Please contact the Company at 615.269.8175 to request a printed copy of this information.In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2012 under the heading "Risk  Factors," and as updated in its Quarterly Reports on Form 10-Q filed thereafter. Forward-looking statements represent the Company's judgment as of the date of this release.  The Company disclaims any obligation to update forward-looking statements. HEALTHCARE REALTY TRUST INCORPORATEDConsolidated Balance Sheets (1) (dollars in thousands, except for share data)(Unaudited)ASSETSReal Estate Properties:12/31/201212/31/2011Land$ 161,875$ 162,843Buildings, improvements, and lease intangibles2,625,5382,521,226Personal property19,10018,221Construction in progress-61,152Land held for development25,17125,176Total real estate properties 2,831,6842,788,618Less accumulated depreciation(586,725)(516,747)Total real estate properties, net2,244,9592,271,871Cash and cash equivalents6,7764,738Mortgage notes receivable162,19197,381Assets held for sale and discontinued operations, net3,33728,650Other assets, net122,709118,382Total assets$ 2,539,972$ 2,521,022LIABILITIES AND STOCKHOLDERS' EQUITYLiabilities:Notes and bonds payable$ 1,293,044$ 1,393,537Accounts payable and accrued liabilities65,67872,217Liabilities of discontinued operations131518Other liabilities60,17549,944Total liabilities1,419,0281,516,216Commitments and contingenciesStockholders' Equity:Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding--Common stock, $.01 par value; 150,000,000 shares authorized; 87,514,336 and 77,843,883 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively875779Additional paid-in capital2,100,2971,894,604Accumulated other comprehensive loss(2,092)(3,332)Cumulative net income attributable to common stockholders801,416795,951Cumulative dividends(1,779,552)(1,683,196)Total stockholders' equity1,120,9441,004,806Total liabilities and stockholders' equity$ 2,539,972$ 2,521,022         (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)   (dollars in thousands, except for share data)  (Unaudited)    Three Months Ended             December 31,   Twelve Months Ended  December 31, 2012201120122011RevenuesRental income$ 77,207$ 72,026$ 301,055$ 276,712Mortgage interest 2,6111,7239,1866,973Other operating 1,4421,5106,1097,90781,26075,259316,350291,592ExpensesProperty operating 30,15428,217117,683113,083General and administrative6,3954,52320,90820,990Depreciation22,42220,19485,12275,292Amortization2,9232,46510,5108,198Bad debt, net of recoveries94(169)243(250)61,98855,230234,466217,313Other Income (Expense)Loss on extinguishment of debt---(1,986)Interest expense(19,239)(18,492)(75,053)(76,038)Interest and other income, net360201981819(18,879)(18,291)(74,072)(77,205)Income (Loss) From Continuing Operations3931,7387,812(2,926)Discontinued OperationsIncome (loss) from discontinued operations(220)5351,7572,404Impairments(7,712)(4,999)(14,908)(6,697)Gain on sales of real estate properties1,1775,64210,8747,035Income (Loss) From Discontinued Operations(6,755)1,178(2,277)2,742Net Income (Loss)(6,362)2,9165,535(184)Less:  Net income attributable to noncontrolling interests(29)-(70)(30)Net Income (Loss) Attributable to Common Stockholders $(6,391)$ 2,916$ 5,465$ (214)Basic Earnings (Loss) Per Common Share Income (loss) from continuing operations$0.00$ 0.02$ 0.10$ (0.04)Discontinued operations (0.07)0.02(0.03)0.04Net income (loss) attributable to common stockholders$(0.07)$ 0.04$ 0.07$ 0.00Diluted Earnings (Loss) Per Common ShareIncome (loss) from continuing operations$0.00$ 0.02$ 0.10$ (0.04)Discontinued operations (0.07)0.02(0.03)0.04Net income (loss) attributable to common stockholders$(0.07)$ 0.04$ 0.07$ 0.00Weighted Average Common Shares Outstanding - Basic85,725,61176,404,70978,844,84072,720,147Weighted Average Common Shares Outstanding - Diluted87,049,03477,474,95180,127,88372,720,147(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 INCORPORATEDReconciliation of Funds from Operations(1) (2) (dollars in thousands, except per share data)(Unaudited)Three Months Ended December 31, 2012 Three Months EndedDecember 31, 2011Net Income (Loss) Attributable to Common Stockholders$ (6,391)$ 2,916Gain on sales of real estate properties(1,177)(5,642)Impairments7,7124,999Real estate depreciation and amortization24,93223,062Total adjustments31,46722,419Funds From Operations$ 25,076$ 25,335Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition1,100-Acquisition costs385199Write off of deferred financing costs upon renewal of line of credit facility-393Normalized Funds From Operations$ 26,561$ 25,927Funds From Operations Per Common Share - Diluted$ 0.29$ 0.33Normalized Funds From Operations Per Common Share - Diluted$ 0.31$ 0.33Weighted Average Common Shares Outstanding - Diluted87,049,03477,474,951Reconciliation of Funds Available for Distribution(2) (Dollars in thousands, except per share data)(Unaudited)Three Months Ended December 31, 2012 Three Months Ended December 31, 2011Net Income (Loss) Attributable to Common Stockholders$ (6,391)$ 2,916Gain on sales of real estate properties(1,177)(5,642)Impairments7,7124,999Depreciation and amortization - real estate24,93223,062Depreciation and amortization - other1,5791,942Provision for bad debt, net 93(95)Straight-line rent receivable(1,087)(1,137)Straight-line rent liability106119Stock-based compensation904650Provision for deferred post-retirement benefits266461Total non-cash items included in cash flows from operating activities 33,32824,359Funds Available For Distribution$ 26,937$ 27,275Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition1,100-Acquisition costs385199Normalized Funds Available For Distribution$ 28,422$ 27,474Funds Available For Distribution Per Common Share - Diluted$ 0.31$ 0.35Normalized Funds Available For Distribution Per Common Share - Diluted$ 0.33$ 0.35Weighted Average Common Shares Outstanding - Diluted87,049,03477,474,951(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 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. SOURCE Healthcare Realty Trust IncorporatedFor further information: Carla Baca, Financial Communications, +1-615-269-8175