NASHVILLE, Tenn., Aug. 4 TN-Healthcare-Realty
NASHVILLE, Tenn., Aug. 4 /PRNewswire-FirstCall/ -- Healthcare Realty Trust
Incorporated (NYSE: HR) today announced results for the second quarter ended
June 30, 2008. Revenues for the three months ended June 30, 2008 totaled
$55.1 million, compared with the prior year's $51.5 million. Revenues for the
six months ended June 30, 2008 totaled $109.2 million, compared with the prior
year's $103.3 million. Income from continuing operations for the three months
ended June 30, 2008 totaled $4.8 million, compared with the prior year's $3.8
million. Income from continuing operations for the six months ended June 30,
2008 totaled $9.9 million, compared with the prior year's $5.9 million.
Net income for the second quarter of 2008 totaled $13.8 million, or $0.27
per diluted common share, versus $13.6 million, or $0.29 per diluted common
share, for the second quarter of 2007. Net income for the six months ended
June 30, 2008 totaled $20.6 million, or $0.41 per diluted common share,
compared with $50.0 million, or $1.05 per diluted common share for the six
months ended June 30, 2007. Net income for the three and six months ended
June 30, 2008, as compared to 2007, was affected by the disposition of the
senior living assets and resulting gain in 2007.
Funds from operations ("FFO") is calculated according to the definition of
the National Association of Real Estate Investment Trusts ("NAREIT") and is
comprised primarily of net income 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. FFO
totaled $19.2 million, or $0.38 per diluted common share, for the second
quarter ended June 30, 2008, compared with $18.9 million, or $0.40 per diluted
common share, for the same period in 2007. FFO totaled $38.6 million, or
$0.77 per diluted common share for the six months ended June 30, 2008,
compared with the prior year's $39.2 million, or $0.82 per diluted common
share.
Funds available for distribution for the second quarter of 2008 totaled
$0.43 per diluted common share.
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
$1.8 billion in 181 real estate properties and mortgages as of June 30, 2008,
excluding assets classified as held for sale and including investments in
three unconsolidated limited liability companies. The Company's 174 owned
real estate properties, excluding assets classified as held for sale, are
comprised of six facility types, located in 24 states, totaling approximately
10.8 million square feet. The Company provides property management services
to approximately 7.2 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, 2007 under the
heading "Risk Factors," and as may be 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
Condensed Consolidated Statements of Income (1)
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
REVENUES
Master lease rent $14,787$14,456$30,238$29,354
Property operating 34,886 31,803 68,911 63,343
Straight-line rent(137) 9 (204)43
Mortgage interest 542460 1,067812
Other operating 4,990 4,786 9,226 9,782
55,068 51,514109,238103,334
EXPENSES
General and administrative 5,863 5,220 11,908 11,395
Property operating 20,112 18,179 39,135 36,163
Bad debts, net of recoveries 115 77333 82
Interest11,209 12,153 22,407 25,558
Depreciation12,385 10,883 24,430 21,567
Amortization 575 1,204 1,169 2,620
50,259 47,716 99,382 97,385
INCOME FROM CONTINUING OPERATIONS 4,809 3,798 9,856 5,949
DISCONTINUED OPERATIONS (2)
Income from discontinued
operations 1,242 2,363 2,387 8,959
Impairments - -(29)(2,792)
Gain on sales of real estate
properties 7,715 7,482 8,352 37,871
INCOME FROM DISCONTINUED
OPERATIONS8,957 9,845 10,710 44,038
NET INCOME $13,766$13,643$20,566$49,987
BASIC EARNINGS PER COMMON SHARE
Income from continuing
operations per common share $0.10 $0.08 $0.20 $0.13
Discontinued operations per
common share$0.18 $0.21 $0.22 $0.94
Net income per common share $0.28 $0.29 $0.42 $1.07
DILUTED EARNINGS PER COMMON SHARE
Income from continuing
operations per common share $0.10 $0.08 $0.20 $0.13
Discontinued operations per
common share$0.17 $0.21 $0.21 $0.92
Net income per common share $0.27 $0.29 $0.41 $1.05
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING - BASIC 49,431,724 46,603,643 49,422,391 46,575,554
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING - DILUTED 50,474,762 47,577,334 50,442,808 47,587,624
(1) The Condensed Consolidated Statements of Income do not include all of
the information and footnotes required by generally accepted
accounting principles for complete financial statements.
(2) In accordance with SFAS No. 144, "Accounting for Impairment or
Disposal of Long-Lived Assets," the Company reports real estate
properties and related assets and liabilities to be sold as held for
sale and includes the results of operations of real estate properties
sold or held for sale in discontinued operations on the Company's
Condensed Consolidated Statements of Income.
HEALTHCARE REALTY TRUST INCORPORATED
Condensed Consolidated Statements of Cash Flows (1)
(Dollars in thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Cash flows from operating
activities:
Net income $13,766 $13,643 $20,566 $49,987
Non-cash items:
Depreciation and
amortization - real estate 12,72112,262 25,27626,265
Depreciation and
amortization - other640 5601,204 1,131
Provision for bad debt, net
of recoveries 11577 33182
Impairments- - 29 2,792
Straight-line rent receivable134 (34) 199 (95)
Straight-line rent liability 43 285 86 1,095
Equity in (income) losses
from unconsolidated LLCs (116) 155 148 252
Consolidated losses from
variable interest entities- 188- 394
Stock-based compensation 1,107 9542,403 2,666
Provision for deferred post-
retirement benefits 818 5221,654 1,038
Gain on repurchase of notes
payable (9)- (9)-
Other non-cash items 13333 43978
Total non-cash items 15,58615,002 31,76035,698
Other items:
Accounts payable and accrued
liabilities (7,465) (8,518) (3,686) (6,777)
Other liabilities (2,075)3,433 (2,810)3,605
Other assets(508) (2,141) 5,866(2,210)
Gain on sales of real estate
properties (7,715) (7,482) (8,352) (37,871)
State income taxes paid, net
of refunds (621) (25)(621) (41)
Total other items (18,384) (14,733) (9,603) (43,294)
Net cash provided by
operating activities 10,96813,912 42,72342,391
Cash flows from investing
activities:
Acquisition and development of
real estate properties(18,134) (20,157) (37,694) (37,963)
Funding of mortgages and notes
receivable (5,916) (145) (7,181) (4,071)
Distributions received from
unconsolidated LLCs 444 262 867 524
Proceeds from sales of real
estate 18,625 171,494 22,040 281,699
Proceeds from mortgage and
notes receivable repayments4352,512 7965,519
Net cash provided by (used
in) investing activities (4,938) 203,966 (21,889) 305,708
Cash flows from financing
activities:
Borrowings on notes and bonds
payable64,000 232,000 90,000 304,839
Repayments on notes and bonds
payable (50,918) (195,788) (69,825) (365,661)
Repurchase of notes payable (5,332)- (5,332)-
Special dividend paid- (227,157) - (227,157)
Quarterly dividends paid (19,534) (31,602) (39,067) (63,165)
Proceeds from issuance of
common stock 176 1,494 361 1,767
Common stock redemption (282) (16)(282) (30)
Credit facility amendment fee (326)- (326)-
Net cash used in financing
activities (12,216) (221,069) (24,471) (349,407)
Decrease in cash and cash
equivalents (6,186) (3,191) (3,637) (1,308)
Cash and cash equivalents,
beginning of period 11,068 3,8338,519 1,950
Cash and cash equivalents, end
of period$4,882 $642 $4,882 $642
(1) The Condensed Consolidated Statements of Cash Flows do not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements.
RECONCILIATION OF FUNDS FROM OPERATIONS (1):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
2008200720082007
Net Income $13,766 $13,643 $20,566 $49,987
Gain on sales of real
estate properties(7,715) (7,482) (8,352)(37,871)
Real estate
depreciation and
amortization 13,150 12,699 26,423 27,070
Total adjustments 5,435 5,217 18,071 (10,801)
Funds From Operations -
Basic and Diluted $19,201 $18,860 $38,637 $39,186
Funds From Operations
Per Common Share -
Basic$0.39 $0.40 $0.78 $0.84
Funds From Operations
Per Common Share -
Diluted $0.38 $0.40 $0.77 $0.82
Weighted Average Common
Shares Outstanding -
Basic 49,431,724 46,603,643 49,422,391 46,575,554
Weighted Average Common
Shares Outstanding -
Diluted 50,474,762 47,577,334 50,442,808 47,587,624
RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (1):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30, 2008
Net Income $13,766
Gain on sales of real estate
properties(7,715)
Total non-cash items included
in cash flows from operating
activities (2)15,586
Funds Available For Distribution $21,637
Funds Available For Distribution
Per Common Share - Diluted$0.43
Weighted Average Common Shares
Outstanding - Diluted50,474,762
(1) Funds From Operations ("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 and are not necessarily indicative of cash
available to fund cash needs. FFO and FAD should not be considered
alternatives to net income as indicators of the Company's operating
performance or as alternatives to cash flow as measures of liquidity.
(2) See the Condensed Consolidated Statements of Cash Flows that are
included in this earnings release.
SOURCE Healthcare Realty Trust Incorporated
