Healthcare Realty Trust Reports Normalized Ffo Of $0.36 Per Share For The Fourth Quarter
The following excerpt is from the company's SEC filing
NASHVILLE, Tennessee, February 19, 2014 - Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the fourth quarter ended December 31, 2013. Normalized FFO for the three months ended December 31, 2013 totaled $0.36 per diluted common share. Normalized FAD for the three months ended December 31, 2013 totaled $0.37 per diluted common share.
•The twelve development properties currently in conversion are 80% leased, with occupancy increasing to 63% at year-end, and would have resulted in NOI of $3.4 million had all occupants been in place and paying rent for the entire quarter.
cquisitions totaled $212.6 million for 2013, with an average leased percentage of 93%. During the fourth quarter, the Company purchased five properties totaling 374,000 square feet for a total purchase price of $102.6 million. The buildings are 94% leased and are located in markets where Healthcare Realty already has a presence including Seattle, Denver, Charlotte and Austin.
•Dispositions totaled $20.5 million in the fourth quarter and $101.9 million for the year. 2013 dispositions include eight off-campus medical office buildings, four inpatient rehab facilities, and one land parcel.
•Leases totaling 1,242,000 square feet were signed or renewed during the year with an average retention rate of 80%, and the Company maintained occupancy at 91% at its same store properties at year-end.
•A dividend of $0.30 per common share was declared for the fourth quarter of 2013, which is 81.1% of normalized FAD.
For the three months ended December 31, 2013, year-over-year revenues grew by $11.9 million to $90.1 million. The Company reported net income attributable to common stockholders for the quarter of $12.4 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 $3.2 billion in 202 real estate properties and mortgages as of December 31, 2013. The Company's 198 owned real estate properties are located in 28 states and total approximately 13.9 million square feet. The Company provides property management services to approximately 10.3 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.
ASSETS Real Estate Properties: 12/31/2013 12/31/2012Land $178,931 $161,875Buildings, improvements and lease intangibles 2,861,935 2,625,538Personal property 9,267 8,739Land held for development 17,05425.17625,171Total real estate properties 3,067,187 2,821,323Less accumulated depreciation (632,109) (580,617)Total real estate properties, net 2,435,078 2,240,706Cash and cash equivalents 8,671 6,776Mortgage notes receivable 125,547 162,191Assets held for sale and discontinued operations, net 6,852 3,337Other assets, net 153,514 126,962Total assets $2,729,662 $2,539,972 LIABILITIES AND EQUITY Liabilities: Notes and bonds payable $1,348,459 $1,293,044Accounts payable and accrued liabilities 73,741 65,678Liabilities of discontinued operations 1,112 131Other liabilities 61,064 60,175Total liabilities 1,484,376 1,419,028Commitments 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; 95,924 and 87,514 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively 959 875Additional paid-in capital 2,325,228 2,100,297Accumulated other comprehensive income (loss) 51 (2,092)Cumulative net income attributable to common stockholders 808,362 801,416Cumulative dividends (1,891,123) (1,779,552)Total stockholders’ equity 1,243,477 1,120,944Noncontrolling interests 1,809 —Total equity 1,245,286 1,120,944Total liabilities and equity $2,729,662 $2,539,972
(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.
(Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2013 2012 2013 2012Revenues Rental income $86,318 $74,197 $318,294 $288,787Mortgage interest 2,411 2,611 12,701 9,186Other operating 1,387 1,442 5,931 6,101 90,116 78,250 336,926 304,074Expenses Property operating 31,945 29,841 125,565 116,470General and administrative 5,764 6,395 23,729 20,905Depreciation 23,608 21,632 88,380 81,966Amortization 2,826 2,900 10,645 10,418Bad debt, net of recoveries 66 92 184 241 64,209 60,860 248,503 230,000Other Income (Expense) Loss on extinguishments of debt — — (29,638) —Interest expense (17,772) (19,215) (73,511) (74,955)Gain on sale of cost method investment in real estate 1,492 — 1,492 —Interest and other income, net 261 358 966 976 (16,019) (18,857) (100,691) (73,979) Income (Loss) From Continuing Operations 9,888 (1,467) (12,268) 95 Discontinued Operations Income from discontinued operations (180) 1,640 4,422 9,474Impairments — (7,712) (9,889) (14,908)Gain on sales of real estate properties 2,748 1,177 24,718 10,874Income From Discontinued Operations 2,568 (4,895) 19,251 5,440 Net Income (Loss) 12,456 (6,362) 6,983 5,535Less: Net (income) attributable to noncontrolling interests (72) (29) (37) (70)Net Income (Loss) Attributable To Common Stockholders $12,384 ($6,391) $6,946 $5,465Basic Earnings (Loss) Per Common Share: Income (loss) from continuing operations $0.11 ($0.01) ($0.13) $0.00Discontinued operations 0.02 (0.06) 0.21 0.07Net income (loss) attributable to common stockholders $0.13 ($0.07) $0.08 $0.07Diluted Earnings (Loss) Per Common Share: Income (loss) from continuing operations $0.10 ($0.01) ($0.13) $0.00Discontinued operations 0.03 (0.06) 0.21 0.07Net income (loss) attributable to common stockholders $0.13 ($0.07) $0.08 $0.07Weighted Average Common Shares Outstanding—Basic 94,114 85,726 90,941 78,845Weighted Average Common Shares Outstanding—Diluted 95,485 85,726 90,941 80,128
(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.
(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.
(3)FFO for the fourth quarter of 2013 includes the impact of a gain recognized on the sale of a cost method investment in an unconsolidated limited liability company.
Three Months Ended December 31, 2013 2012Net Income Attributable to Common Stockholders $12,384 ($6,391)Gain on sales of real estate properties (2,748) (1,177)Impairments — 7,712Depreciation and amortization 27,590 26,511Provision for bad debt, net 66 93Straight-line rent receivable (2,954) (1,087)Straight-line rent liability 115 106Stock-based compensation 1,079 904Provision for deferred post-retirement benefits 218 266Total non-cash items included in cash flows from operating activities 23,366 33,328Funds Available For Distribution $35,750 $26,937Gain on sale of cost method investment in real estate (1,492) Acquisition costs 681 385Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition — 1,100Normalized Funds Available For Distribution $34,939 $28,422Funds Available For Distribution Per Common Share—Diluted $0.37$0.31Normalized Funds Available For Distribution Per Common Share—Diluted $0.37 $0.33FAD Weighted Average Common Shares Outstanding 95,485 87,049Normalized FAD Weighted Average Common Shares Outstanding 95,485 87,049
(1)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.
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. Healthcare Realty Trust Incorporated next reports earnings on February 19, 2014.
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