Section 4: EX - 99.2 (SUPPLEMENTAL INFORMATION FOR THE THREE MONTHS ENDED MARCH 31, 2013)
Exhibit 99.2
1Q | 2013
Supplemental Information
FURNISHED AS OF MAY 1, 2013 (UNAUDITED)
Table of Contents
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| | | |
| | |
3 |
| | Corporate Information |
| | |
5 |
| | Historical Reconciliation of FFO |
| | |
6 |
| | Selected Financial Statement Information |
| | |
7 |
| | Property Progression |
| | |
8 |
| | Investment Activity |
| | |
9 |
| | Investment by Type and Geographic Location |
| | |
10 |
| | Square Feet by Geography |
| | |
11 |
| | Square Feet by Type, Provider and Building Size |
| | |
12 |
| | Lease Maturity and Tenant Size |
| | |
13 |
| | Occupancy Information |
| | |
14 |
| | Leasing Statistics |
| | |
15 |
| | Same Store Properties |
| | |
16 |
| | Components of Net Asset Value |
| | |
17 |
| | Components of Expected 2013 FFO |
Copies of this report may be obtained at www.healthcarerealty.com or by contacting Investor Relations at 615.269.8175 or communications@healthcarerealty.com.
Forward looking statements and risk factors:
This Supplemental Information report contains disclosures that are “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words and phrases such as “can,” “may,” “payable,” “indicative,” “annualized,” “expect,” “expected,” “future cash or NOI,” “deferred revenue,” “rent increases,” “range of expectations,” “components of expected 2013 FFO,” and other comparable terms and in this report. These forward-looking statements are made as of the date of this report and are not guarantees of future performance. These statements are based on the current plans and expectations of Company management and are subject to a number of unknown risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those described in this release or implied by such forward-looking statements. Such risks and uncertainties include, among other things, the following: changes in the economy; increases in interest rates; the availability and cost of capital at expected rates; changes to facility-related healthcare regulations; competition for quality assets; negative developments in the operating results or financial condition of the Company's tenants, including, but not limited to, their ability to pay rent and repay loans; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to re-lease space at similar rates as vacancies occur; the Company's ability to renew expiring long-term single-tenant net leases; the Company's ability to timely reinvest proceeds from the sale of assets at similar yields; government regulations affecting tenants' Medicare and Medicaid reimbursement rates and operational requirements; unanticipated difficulties and/or expenditures relating to future acquisitions and developments; changes in rules or practices governing the Company's financial reporting; the Company may be required under purchase options to sell properties and may not be able to reinvest the proceeds from such sales at rates of return equal to the return received on the properties sold; uninsured or underinsured losses related to casualty or liability; the incurrence of impairment charges on its real estate properties or other assets; and other legal and operational matters. Other risks, uncertainties and factors that could cause actual results to differ materially from those projected are detailed under the heading “Risk Factors,” in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2012 and other risks described from time to time thereafter in the Company's SEC filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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HEALTHCARE REALTY I 2 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Corporate Information
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 205 real estate properties and mortgages as of March 31, 2013. The Company’s 200 owned real estate properties are located in 28 states and total approximately 13.5 million square feet. The Company provided property management services to approximately 10.1 million square feet nationwide.
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| |
A | | Corporate Headquarters |
Healthcare Realty Trust Incorporated
3310 West End Avenue, Suite 700
Nashville, Tennessee 37203
Phone: 615.269.8175
Fax: 615.269.8461
E-mail: communications@healthcarerealty.com
Website: www.healthcarerealty.com
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| | | | |
| | David R. Emery | | Chairman of the Board and Chief Executive Officer |
| | John M. Bryant, Jr. | | Executive Vice President and General Counsel |
| | Scott W. Holmes | | Executive Vice President and Chief Financial Officer |
| | Todd J. Meredith | | Executive Vice President - Investments |
| | B. Douglas Whitman, II | | Executive Vice President - Corporate Finance |
|
| | | | |
| | David R. Emery | | Chairman of the Board and Chief Executive Officer, Healthcare Realty Trust Incorporated |
| | Errol L. Biggs, Ph.D. | | Director, Graduate Programs in Health Administration, University of Colorado |
| | C. Raymond Fernandez, M.D. | | Former Chief Executive Officer, Piedmont Clinic (Retired) |
| | Batey M. Gresham, Jr. | | Founder, Gresham Smith & Partners (Retired) |
| | Edwin B. Morris III | | Managing Director, Morris & Morse Company, Inc. |
| | J. Knox Singleton | | President and Chief Executive Officer, Inova Health System |
| | Bruce D. Sullivan | | Former Audit Partner, Ernst & Young LLP (Retired) |
| | Roger O. West | | Former General Counsel, Healthcare Realty Trust Incorporated (Retired) |
| | Dan S. Wilford | | Former President and Chief Executive Officer, Memorial Hermann Healthcare System (Retired) |
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HEALTHCARE REALTY I 3 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Corporate Information
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BDO USA, LLP
414 Union Street, Suite 1800, Nashville, Tennessee 37219
TRANSFER AGENT
Wells Fargo N.A., Shareowner Services
1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100
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| |
E | | Stock Exchange, Symbol and CUSIP Number |
|
| | | | |
| SECURITY DESCRIPTION | STOCK EXCHANGE | SYMBOL | CUSIP NUMBER |
| Common Stock | NYSE | HR | 421946104 |
| Senior Notes due 2017 | OTC | HR | 42225BAA4 |
| Senior Notes due 2021 | OTC | HR | 421946AG9 |
| Senior Notes due 2023 | OTC | HR | 421946AH7 |
|
| |
F | | Dividend Reinvestment Plan |
Through the Company’s transfer agent, Wells Fargo, named shareholders of record can re-invest dividends in shares at a 5% discount and may also purchase up to $60,000 of HR common stock per calendar year without a service or sales charge. For information, write Wells Fargo Shareowner Services, P.O. Box 64856, St. Paul, MN 55164-0856, or call 1.800.468.9716. Information may also be obtained at the transfer agent’s website, www.shareowneronline.com.
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| |
G | | Direct Deposit of Dividends |
Direct deposit of dividends is offered as a convenience to shareholders of record. For information, write Wells Fargo Shareowner Services, P.O. Box 64856, St. Paul, MN 55164-0856, or call 1.800.468.9716. Information may also be obtained at the transfer agent’s website, www.shareowneronline.com.
On April 30, 2013, the Company declared a dividend of $0.30 per share, payable on May 31, 2013 to stockholders of record on May 16, 2013.
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| | | | |
| | BMO Capital Markets Corp. | | JMP Securities LLC |
| | |
| | Cowen & Co. LLC | | KeyBanc Capital Markets Inc. |
| | |
| | Deutsche Bank Securities Inc. | | RBC Capital Markets Corp |
| | |
| | Goldman Sachs | | Sandler O’Neil & Partners LP |
| | |
| | Green Street Advisors, Inc. | | Stifel Nicolaus & Co |
| | |
| | J.J.B. Hilliard W.L. Lyons LLC | | SunTrust Robinson Humphrey |
| | |
| | J.P. Morgan Securities LLC | | Wells Fargo Securities LLC |
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HEALTHCARE REALTY I 4 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Historical Reconciliation of FFO (1) (2)
(amounts in thousands, except for share data)
|
| | | | | | | | | | | | | | | | | |
|
| | 2013 |
| | 2012 | |
| | Q1 |
| | Q4 |
| Q3 |
| Q2 |
| Q1 |
|
Net Income (Loss) Attributable to Common Stockholders | |
| ($999 | ) | |
| ($6,391 | ) |
| $5,815 |
|
| $2,908 |
|
| $3,134 |
|
Gain on sales of real estate properties | | — |
| | (1,177 | ) | (6,265 | ) | (3 | ) | (3,428 | ) |
Impairments | | 3,630 |
| | 7,712 |
| 2,860 |
| 167 |
| 4,170 |
|
Real estate depreciation and amortization | | 23,958 |
| | 24,932 |
| 23,336 |
| 23,467 |
| 23,428 |
|
Total adjustments | | 27,588 |
| | 31,467 |
| 19,931 |
| 23,631 |
| 24,170 |
|
Funds from Operations | | $26,589 | | $25,076 | $25,746 | $26,539 | $27,304 |
Write-off of deferred financing costs upon amendment of line of credit facility | | 252 |
| | — |
| — |
| — |
| — |
|
Acquisition costs | | 219 |
| | 385 |
| — |
| — |
| 109 |
|
Interest incurred related to the timing of issuance/redemption of senior notes | | 188 |
| | — |
| — |
| — |
| — |
|
Severance costs included in general and administrative expenses | | 609 |
| | — |
| — |
| — |
| — |
|
Amounts paid in settlement of a brokerage claim on a 2010 real estate acquisition | | — |
| | 1,100 |
| — |
| — |
| — |
|
Termination fee received upon disposal of a real estate asset | | — |
| | — |
| — |
| — |
| (1,500 | ) |
Normalized Funds from Operations | | $27,857 | | $26,561 | $25,746 | $26,539 | $25,913 |
Funds from Operations per Common Share—Diluted | | $0.30 | | $0.29 | $0.33 | $0.34 | $0.35 |
Normalized Funds from Operations Per Common Share—Diluted | | $0.32 | | $0.31 | $0.33 | $0.34 | $0.33 |
Weighted Average Common Shares Outstanding—Diluted | | 88,382 |
| | 87,049 |
| 78,021 |
| 77,712 |
| 77,641 |
|
| |
(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 principals generally accepted in the United States of America and are not necessarily indicative of cash available to fund cash needs. FFO 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. |
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HEALTHCARE REALTY I 5 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Selected Financial Statement Information
(dollars in thousands)
|
| | | | | | | | | | | | | | | | | | |
SELECTED BALANCE SHEET INFORMATION |
| | 2013 |
| | 2012 | | | 2011 |
|
| | Q1 |
| | Q4 |
| | Q3 |
| | Q2 |
| | Q1 |
| | Q4 |
|
Real estate properties, gross (1) | | $2,813,980 | | $2,831,684 | | $2,745,393 | | $2,768,273 | | $2,792,768 | | $2,788,618 |
Real estate properties, net (1) | | 2,216,546 |
| | 2,244,959 |
| | 2,187,442 |
| | 2,222,596 |
| | 2,252,407 |
| | 2,271,871 |
|
Construction in progress | | — |
| | — |
| | — |
| | 9,009 |
| | 10,864 |
| | 61,152 |
|
Land held for development | | 17,054 |
| | 25,171 |
| | 25,171 |
| | 25,171 |
| | 25,171 |
| | 25,176 |
|
Mortgage notes receivable | | 190,134 |
| | 162,191 |
| | 141,107 |
| | 118,059 |
| | 112,767 |
| | 97,381 |
|
Assets held for sale and discontinued operations, net | | 22,297 |
| | 3,337 |
| | 11,550 |
| | 12,921 |
| | 13,762 |
| | 28,650 |
|
Total assets | | 2,655,250 |
| | 2,539,972 |
| | 2,470,776 |
| | 2,472,324 |
| | 2,503,654 |
| | 2,521,022 |
|
Notes and bonds payable | | 1,415,119 |
| | 1,293,044 |
| | 1,212,615 |
| | 1,395,600 |
| | 1,418,571 |
| | 1,393,537 |
|
Total equity | | 1,136,616 |
| | 1,120,944 |
| | 1,151,067 |
| | 966,195 |
| | 985,727 |
| | 1,004,806 |
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SUMMARY OF INDEBTEDNESS |
| | Quarterly Interest Expense |
| | Balance as of 3/31/2013 |
| | Weighted Months to Maturity |
| | Effective Interest Rate |
|
Senior Notes due 2014, net of discount (2) | | $3,431 | | $264,561 | | — |
| | 5.19 | % |
Senior Notes due 2017, net of discount | | 4,943 |
| | 298,796 |
| | 46 |
| | 6.62 | % |
Senior Notes due 2021, net of discount | | 5,816 |
| | 397,373 |
| | 94 |
| | 5.86 | % |
Senior Notes due 2023, net of discount | | 133 |
| | 247,950 |
| | 121 |
| | 3.85 | % |
Total Senior Notes Outstanding | | 14,323 |
| | 1,208,680 |
| | 85 |
| | 5.49 | % |
Unsecured credit facility due 2017 | | 507 |
| | — |
| | 49 |
| | 1.60 | % |
Mortgage notes payable, net | | 3,474 |
| | 206,439 |
| | 47 |
| | 6.21 | % |
Total Outstanding Notes and Bonds Payable | | $18,304 | | $1,415,119 | | 64 |
| | 5.59 | % |
Cash on hand | | | | (94,171 | ) | | | | |
Net Debt | | | | $1,320,948 | | | | |
Interest cost capitalization | | (107 | ) | | | | | | |
Deferred financing costs | | 1,029 |
| | | | | | |
Unsecured credit facility fee | | 569 |
| | | | | | |
Total Quarterly Interest Expense | | $19,795 | | | | | | |
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REVENUES AND PROPERTY OPERATING EXPENSES (3) |
| | 2013 |
| | 2012 | | | 2011 |
|
| | Q1 |
| | Q4 |
| | Q3 |
| | Q2 |
| | Q1 |
| | Q4 |
|
Property operating income | | $62,492 | | $62,125 | | $60,787 | | $60,466 | | $58,484 | | $58,015 |
Single-tenant net lease | | 13,851 |
| | 13,024 |
| | 12,571 |
| | 12,542 |
| | 11,917 |
| | 11,894 |
|
Straight-line rent | | 1,848 |
| | 1,262 |
| | 1,607 |
| | 1,336 |
| | 1,698 |
| | 1,262 |
|
Rental income | | 78,191 |
| | 76,411 |
| | 74,965 |
| | 74,344 |
| | 72,099 |
| | 71,171 |
|
Mortgage interest | | 2,937 |
| | 2,611 |
| | 2,244 |
| | 2,039 |
| | 2,292 |
| | 1,723 |
|
Other operating | | 1,456 |
| | 1,442 |
| | 1,522 |
| | 1,370 |
| | 1,774 |
| | 1,509 |
|
Total Revenues | | $82,584 | | $80,464 | | $78,731 | | $77,753 | | $76,165 | | $74,403 |
Property operating expense | | $29,826 | | $30,081 | | $29,931 | | $29,196 | | $28,285 | | $28,175 |
| |
(1) | Includes construction in progress and land held for development. |
| |
(2) | Outstanding bonds were repaid on April 18, 2013. |
| |
(3) | Prior periods have been restated to conform to the current period presentation for assets classified as held for sale and discontinued operations. |
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HEALTHCARE REALTY I 6 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Property Progression
|
| | | | | | | |
REAL ESTATE PROPERTIES AND MORTGAGES |
| | Beginning of Period |
| Net Change |
| End of Period |
|
Stabilized | | | |
Multi-tenant (1) (2) (3) | 130 |
| 1 |
| 131 |
|
Single-tenant net lease (4) | 41 |
| (2 | ) | 39 |
|
SIP | 12 |
| — |
| 12 |
|
CIP | — |
| — |
| — |
|
Mortgages (5) | 4 |
| 1 |
| 5 |
|
Reposition (3) | 19 |
| (1 | ) | 18 |
|
Balance | 206 |
| (1 | ) | 205 |
|
Assets held for sale (2) (4) | | 1 |
| 3 |
| 4 |
|
Unconsolidated JV | | 1 |
| — |
| 1 |
|
| |
(1) | The Company purchased a medical office building in Tennessee. |
| |
(2) | The Company reclassified a medical office building to held for sale from stabilized, multi-tenant. |
| |
(3) | The Company reclassified a medical office building from reposition to stabilized, multi-tenant. |
| |
(4) | The Company reclassified two inpatient rehabilitation facilities in Alabama and Florida to held for sale. |
| |
(5) | The Company financed the sale of a parcel of land owned by the Company. |
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HEALTHCARE REALTY I 7 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Investment Activity
(dollars in thousands)
|
| | | | | | | | | | | | | | |
2013 INVESTMENT ACTIVITY (1) |
Location | | Property Type | | Investment Type | | Closing | | Investment at Acquisition | | Approximate Square Feet |
| | Aggregate Leased % |
|
Germantown, TN | | MOB | | Acquisition | | 1/29/2013 | | $15,678 | | 52,225 |
| | 100 | % |
Total | | | | | | | | $15,678 | | 52,225 |
| | 100 | % |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
HISTORICAL INVESTMENT ACTIVITY |
| | Acquisitions (2) |
| | Mortgage Funding |
| | Construction Mortgage Funding |
| | Development Funding |
| | Total Investments |
| | Dispositions |
|
2009 | |
| $70,664 |
| |
| $9,900 |
| |
| $10,616 |
| |
| $85,120 |
| |
| $176,300 |
| |
| $106,688 |
|
2010 | | 301,600 |
| | 3,700 |
| | 20,740 |
| | 63,301 |
| | 389,341 |
| | 34,708 |
|
2011 | | 150,312 |
| | 40,000 |
| | 61,931 |
| | 79,375 |
| | 331,618 |
| | 22,700 |
|
2012 | | 94,951 |
| | — |
| | 78,297 |
| | 5,608 |
| | 178,856 |
| | 91,384 |
|
2013 | | 15,678 |
| | — |
| | 24,304 |
| | — |
| | 39,982 |
| | 4,984 |
|
Total | |
| $633,205 |
| |
| $53,600 |
| |
| $195,888 |
| |
| $233,404 |
| |
| $1,116,097 |
| |
| $260,464 |
|
% of Total | | 62.1 | % | | 3.6 | % | | 13.9 | % | | 20.4 | % | | 100.0 | % | | |
|
| | | | | | | | | | | | | | | | | | | | | |
DEVELOPMENT PROPERTIES |
| | Properties |
| | Amount Funded 1Q 2013 |
| | Total Amount Funded Through 3/31/2013 |
| | Approximate Square Feet |
| | Aggregate Leased % |
| | 1Q 2013 Adjusted Aggregate NOI/Interest (3) |
| | Estimated Remaining Fundings |
|
Construction mortgage loans | | 2 |
| | $24,304 | | $142,745 | | 386,000 |
| | 100 | % | | $2,094 | | $59,869 |
Stabilization in progress | | 12 |
| | 3,509 |
| | 409,450 |
| | 1,282,716 |
| | 65 | % | | 1,348 |
| | 40,000 |
|
Total | | 14 |
| | $27,813 | | $552,195 | | 1,668,716 |
| | 73 | % | | $3,442 | |
|
|
| |
(1) | Refer to 2013 Form 10-Q Footnote 2 for more information on the Company’s acquisitions. |
| |
(2) | Net of mortgage notes receivable payoffs upon acquisition. |
| |
(3) | Aggregate NOI and adjusted NOI for the first quarter of 2013 for the properties in stabilization was approximately $1.3 million. |
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HEALTHCARE REALTY I 8 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Investment by Type and Geographic Location (1)
(dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| MOB/OUTPATIENT (83.1%) | | INPATIENT (14.0%) | | OTHER (2.9%) | | | | |
| Properties |
| | Mortgages |
| | Rehab |
| | Surgical |
| | Mortgages |
| | Other |
| | Mortgages |
| | Total |
| | % of Total |
|
Texas |
| $649,277 |
| |
| $3,666 |
| |
| $54,191 |
| |
| $92,000 |
| | $ | — |
| | $ | — |
| | $ | — |
| |
| $799,134 |
| | 26.7 | % |
Virginia | 191,669 |
| | | | | | | | | | 11,839 |
| | | | 203,508 |
| | 6.8 | % |
Tennessee | 190,235 |
| | | | | | | | | | 7,874 |
| | | | 198,109 |
| | 6.6 | % |
North Carolina | 149,440 |
| | | | | | | | | | | | | | 149,440 |
| | 5.0 | % |
Washington | 147,767 |
| | | | | | | | | | | | | | 147,767 |
| | 4.9 | % |
Indiana | 100,106 |
| | | | | | 43,406 |
| | | | 3,790 |
| | | | 147,302 |
| | 4.9 | % |
Iowa | 99,801 |
| | | | | | | | | | | | 39,973 |
| | 139,774 |
| | 4.7 | % |
Colorado | 136,671 |
| | | | | | | | | | | | | | 136,671 |
| | 4.6 | % |
Pennsylvania | 10,798 |
| | | | 120,422 |
| | | | | | | | | | 131,220 |
| | 4.4 | % |
California | 114,983 |
| | | | 12,688 |
| | | | | | | | | | 127,671 |
| | 4.2 | % |
Missouri | 43,557 |
| | | | | | | | 76,339 |
| | | | | | 119,896 |
| | 4.0 | % |
Hawaii | 119,575 |
| | | | | | | | | | | | | | 119,575 |
| | 4.0 | % |
Florida | 98,178 |
| | 3,750 |
| | | | | | | | | | | | 101,928 |
| | 3.4 | % |
Arizona | 76,340 |
| | | | 16,012 |
| | | | | | | | | | 92,352 |
| | 3.1 | % |
Oklahoma |
|
| | 66,406 |
| | | | | | | | | | | | 66,406 |
| | 2.2 | % |
Illinois | 63,928 |
| | | | | | | | | | | | | | 63,928 |
| | 2.1 | % |
Michigan | 22,503 |
| | | | | | | | | | 13,105 |
| | | | 35,608 |
| | 1.2 | % |
Alabama | 21,687 |
| | | | | | | | | | 9,782 |
| | | | 31,469 |
| | 1.1 | % |
Washington, DC | 29,932 |
| | | | | | | | | | | | | | 29,932 |
| | 1.0 | % |
Other (10 states) | 130,249 |
| | | | | | | | | | | | | | 130,249 |
| | 4.5 | % |
Sub-total |
| $2,396,696 |
| |
| $73,822 |
| |
| $203,313 |
| |
| $135,406 |
| |
| $76,339 |
| |
| $46,390 |
| |
| $39,973 |
| |
| $2,971,939 |
| | 99.4 | % |
Land held for development | | | | | | | | | | | | | | | 17,054 |
| | 0.6 | % |
Total Investments |
| $2,396,696 |
| |
| $73,822 |
| |
| $203,313 |
| |
| $135,406 |
| |
| $76,339 |
| |
| $46,390 |
| |
| $39,973 |
| |
| $2,988,993 |
| | 100.0 | % |
Percent of $ Invested | 80.6 | % | | 2.5 | % | | 6.8 | % | | 4.6 | % | | 2.6 | % | | 1.6 | % | | 1.3 | % | | 100.0 | % | | |
Number of Investments | 177 |
| | 3 |
| | 11 |
| | 2 |
| | 1 |
| | 10 |
| | 1 |
| | 205 |
| | |
| |
(1) | Excludes gross assets held for sale, one unconsolidated joint venture and corporate property. |
|
| | |
| | |
| | |
HEALTHCARE REALTY I 9 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Square Feet by Geography (1)
|
| | | | | | | | | | | | | | | | | | |
BY STATE, OWNED PROPERTIES |
| | Number of Properties |
| | Managed by HR |
| | Managed by Third Party |
| | Single-Tenant Net Leases |
| | Total |
| | Percent |
|
Texas | | 49 |
| | 3,264,487 |
| | 398,947 |
| | 323,126 |
| | 3,986,560 |
| | 29.5 | % |
Tennessee | | 17 |
| | 1,334,134 |
| | | | 75,000 |
| | 1,409,134 |
| | 10.4 | % |
Virginia | | 15 |
| | 553,532 |
| | 136,427 |
| | 334,454 |
| | 1,024,413 |
| | 7.6 | % |
North Carolina | | 15 |
| | 747,603 |
| | | | | | 747,603 |
| | 5.5 | % |
Indiana | | 6 |
| | | | 382,695 |
| | 205,499 |
| | 588,194 |
| | 4.4 | % |
California | | 10 |
| | 488,371 |
| | | | 63,000 |
| | 551,371 |
| | 4.1 | % |
Colorado | | 7 |
| | 540,051 |
| | | | | | 540,051 |
| | 4.0 | % |
Pennsylvania | | 7 |
| |
|
| | | | 532,520 |
| | 532,520 |
| | 4.0 | % |
Florida | | 9 |
| | 256,302 |
| | 206,139 |
| | 45,548 |
| | 507,989 |
| | 3.8 | % |
Washington | | 6 |
| | 311,824 |
| | | | 159,071 |
| | 470,895 |
| | 3.5 | % |
Arizona | | 10 |
| | 382,045 |
| | | | 51,903 |
| | 433,948 |
| | 3.2 | % |
Iowa | | 8 |
| | 233,413 |
| | | | 178,267 |
| | 411,680 |
| | 3.1 | % |
Illinois | | 4 |
| | 243,491 |
| | | | 110,000 |
| | 353,491 |
| | 2.6 | % |
Michigan | | 8 |
| | 199,749 |
| | | | 121,672 |
| | 321,421 |
| | 2.4 | % |
Hawaii | | 3 |
| | 298,427 |
| | | | | | 298,427 |
| | 2.2 | % |
Alabama | | 5 |
| | 120,192 |
| | 139,887 |
| | | | 260,079 |
| | 1.9 | % |
Missouri | | 5 |
| | 177,039 |
| | | | 13,478 |
| | 190,517 |
| | 1.4 | % |
Washington, DC | | 2 |
| | 182,836 |
| | | | | | 182,836 |
| | 1.4 | % |
Louisiana | | 2 |
| | | | 136,155 |
| | | | 136,155 |
| | 1.0 | % |
Other (9 states) | | 12 |
| | 339,067 |
| | 131,361 |
| | 79,034 |
| | 549,462 |
| | 4.0 | % |
Total | | 200 |
| | 9,672,563 |
| | 1,531,611 |
| | 2,292,572 |
| | 13,496,746 |
| | 100.0 | % |
|
| | | | | | | | | | | | | | | | | | | | |
BY MARKET |
| | | | Square Feet |
| | Percent |
| | | | | | Square Feet |
| | Percent |
|
1 |
| | Dallas-Ft. Worth, TX | | 2,314,184 |
| | 17.1 | % | | 12 |
| | Des Moines, IA | | 411,680 |
| | 3.1 | % |
2 |
| | Nashville, TN | | 794,912 |
| | 5.9 | % | | 13 |
| | Seattle-Bellevue, WA | | 379,334 |
| | 2.8 | % |
3 |
| | Charlotte, NC | | 787,404 |
| | 5.8 | % | | 14 |
| | Chicago, IL | | 353,491 |
| | 2.6 | % |
4 |
| | San Antonio, TX | | 689,764 |
| | 5.1 | % | | 15 |
| | Honolulu, HI | | 298,427 |
| | 2.2 | % |
5 |
| | Houston, TX | | 649,392 |
| | 4.8 | % | | 16 |
| | Phoenix, AZ | | 288,511 |
| | 2.1 | % |
6 |
| | Indianapolis, IN | | 558,694 |
| | 4.1 | % | | 17 |
| | Austin, TX | | 272,220 |
| | 2.0 | % |
7 |
| | Richmond, VA | | 558,209 |
| | 4.1 | % | | 18 |
| | Washington, DC | | 241,739 |
| | 1.8 | % |
8 |
| | Los Angeles, CA | | 551,371 |
| | 4.1 | % | | 19 |
| | Miami, FL | | 215,980 |
| | 1.6 | % |
9 |
| | Denver-Colorado Springs, CO | | 540,051 |
| | 4.0 | % | | 20 |
| | Detroit, MI | | 211,057 |
| | 1.6 | % |
10 |
| | Memphis, TN | | 515,876 |
| | 3.8 | % | | | | Other (35 Markets) | | 2,398,246 |
| | 17.9 | % |
11 |
| | Roanoke, VA | | 466,204 |
| | 3.5 | % | | | | Total | | 13,496,746 |
| | 100.0 | % |
|
| | | | | | | | | | | | | | | | | | |
ON/OFF CAMPUS |
| | 2013 |
| | 2012 | | | 2011 |
|
| | 1Q |
| | 4Q |
| | 3Q |
| | 2Q |
| | 1Q |
| | 4Q |
|
On/adjacent | | 77 | % | | 78 | % | | 78 | % | | 77 | % | | 75 | % | | 74 | % |
Off (2) | | 23 | % | | 22 | % | | 22 | % | | 23 | % | | 25 | % | | 26 | % |
| | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| |
(1) | Mortgage notes receivable, an investment in one unconsolidated joint venture and assets classified as held for sale are excluded. |
| |
(2) | Approximately 42% of the off-campus square feet are anchored by a hospital system. |
|
| | |
| | |
| | |
HEALTHCARE REALTY I 10 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Square Feet by Type, Provider and Building Size (1)
|
| | | | | | | | | | | | | | | | | | | | | |
BY FACILITY TYPE |
| | Managed by HR |
| | Managed by Third Party |
| | Single-Tenant Net Leases |
| | Total |
| | Percent of Total |
| | Third Party Managed by HR |
| | Total |
|
Medical Office/Outpatient | | 9,672,563 |
| | 1,275,890 |
| | 1,025,840 |
| | 11,974,293 |
| | 88.7 | % | | 443,886 |
| | 12,418,179 |
|
Inpatient Rehab | | | | | | 750,390 |
| | 750,390 |
| | 5.6 | % | | | | 750,390 |
|
Inpatient Surgical | | | | | | 273,770 |
| | 273,770 |
| | 2.0 | % | | | | 273,770 |
|
Other | | | | 255,721 |
| | 242,572 |
| | 498,293 |
| | 3.7 | % | | | | 498,293 |
|
Total Square Feet | | 9,672,563 |
| | 1,531,611 |
| | 2,292,572 |
| | 13,496,746 |
| | 100.0 | % | | 443,886 |
| | 13,940,632 |
|
Percent of Total Square Footage | | 71.7 | % | | 11.3 | % | | 17.0 | % | | 100.0 | % | | | | | | |
Total Number of Properties | | 141 |
| | 19 |
| | 40 |
| | 200 |
| | | | | | |
|
| | | | | | | | | | | |
BY PROVIDER | | | | | | |
Top Providers | Credit Rating | Associated Buildings (2) |
| Associated SF (2) |
| % of Total SF (3) |
| Leased SF Total |
| % of Total SF |
|
Baylor Health System | AA-/Aa3 | 25 |
| 2,168,819 |
| 16.1 | % | 1,013,846 |
| 7.5 | % |
Ascension Health | AA+/Aa1 | 15 |
| 1,021,838 |
| 7.6 | % | 334,284 |
| 2.5 | % |
HCA | B+/B1 | 14 |
| 863,596 |
| 6.4 | % | 422,227 |
| 3.1 | % |
Carolinas Health System | --/Aa3 | 16 |
| 787,404 |
| 5.8 | % | 615,245 |
| 4.6 | % |
Catholic Health Initiative | AA-/Aa3 | 12 |
| 740,723 |
| 5.5 | % | 457,242 |
| 3.4 | % |
Bon Secours Health System | A-/A3 | 7 |
| 548,209 |
| 4.1 | % | 219,989 |
| 1.6 | % |
HealthSouth | BB-/Ba3 | 7 |
| 502,778 |
| 3.7 | % | 502,778 |
| 3.1 | % |
Tenet Healthcare Corporation | B/B1 | 8 |
| 481,077 |
| 3.6 | % | 138,822 |
| 1.0 | % |
Baptist Memorial Hospital | AA/-- | 5 |
| 424,306 |
| 3.1 | % | 41,242 |
| 0.3 | % |
Indiana University Hospital | AAA/A1 | 3 |
| 382,695 |
| 2.8 | % | 192,929 |
| 1.4 | % |
Vanguard Health System | B/B2 | 3 |
| 278,007 |
| 2.1 | % | 38,743 |
| 0.3 | % |
Medstar | A-/A2 | 3 |
| 241,739 |
| 1.8 | % | 113,612 |
| 0.8 | % |
Advocate Health Care | AA/Aa2 | 2 |
| 238,391 |
| 1.8 | % | 58,157 |
| 0.4 | % |
Memorial Hermann | A+/A1 | 4 |
| 206,090 |
| 1.5 | % | 82,686 |
| 0.6 | % |
Scott and White | A/A1 | 2 |
| 206,125 |
| 1.5 | % | 203,601 |
| 1.5 | % |
St. Luke's Episcopal Health | AA-/-- | 2 |
| 192,857 |
| 1.4 | % | 19,956 |
| 0.1 | % |
Overlake Hospital | A-/A2 | 1 |
| 191,051 |
| 1.4 | % | 67,125 |
| 0.5 | % |
University of Colorado Health | A+/A1 | 3 |
| 194,949 |
| 1.4 | % | 39,478 |
| 0.3 | % |
Hawaii Pacific Health | A-/A3 | 2 |
| 173,502 |
| 1.3 | % | 36,531 |
| 0.3 | % |
OrthoIndy | N/R | 2 |
| 175,999 |
| 1.3 | % | 175,999 |
| 1.3 | % |
Other- Credit Rated | | 14 |
| 658,821 |
| 4.9 | % | | |
Total - Credit Rated | | 148 |
| 10,502,977 |
| 77.8 | % | | |
Total | | 200 |
| 13,496,746 |
| 100.0 | % | | |
|
| | | | | | | | | | | | |
BY BUILDING SQUARE FEET |
Size Range by Square Feet | | % of Total |
| | Total Square Footage |
| | Average Square Feet |
| | Number of Properties |
|
>100,000 | | 42.4 | % | | 5,718,915 |
| | 139,486 |
| | 41 |
|
<100,000 and >75,000 | | 23.9 | % | | 3,224,035 |
| | 84,843 |
| | 38 |
|
<75,000 and >50,000 | | 18.4 | % | | 2,489,640 |
| | 62,241 |
| | 40 |
|
<50,000 | | 15.3 | % | | 2,064,156 |
| | 25,483 |
| | 81 |
|
Total | | 100.0 | % | | 13,496,746 |
| | 67,484 |
| | 200 |
|
| |
(1) | Excludes mortgage notes receivable, an investment in one unconsolidated joint venture and assets classified as held for sale. |
| |
(2) | Associated buildings and square footage refers to on-campus, adjacent or off-campus/affiliated properties associated with these healthcare providers. |
| |
(3) | Based on square footage, 77.8% of HR's portfolio is affiliated with a credit rated healthcare provider and 59.5% is affiliated with an investment-grade rated healthcare provider. |
|
| | |
| | |
| | |
HEALTHCARE REALTY I 11 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Lease Maturity and Tenant Size (1)
(dollars in thousands)
|
| | | | | | | | | | | | | | | |
LEASE MATURITY SCHEDULE |
| | | | NUMBER OF LEASES | | | | |
| | Annualized Minimum Rents (2) |
| | Multi-Tenant Properties |
| | Single-Tenant Net Lease Properties |
| | Percentage of Revenues |
| | Total Sq. Ft. |
|
2013 | | $37,251 | | 361 |
| | 4 |
| | 14.5 | % | | 1,370,255 |
|
2014 | | 46,706 |
| | 415 |
| | 10 |
| | 18.2 | % | | 1,876,420 |
|
2015 | | 29,446 |
| | 294 |
| | — |
| | 11.4 | % | | 1,169,268 |
|
2016 | | 26,570 |
| | 222 |
| | 5 |
| | 10.3 | % | | 981,294 |
|
2017 | | 30,534 |
| | 206 |
| | 5 |
| | 11.9 | % | | 1,305,628 |
|
2018 | | 15,010 |
| | 118 |
| | — |
| | 5.8 | % | | 673,820 |
|
2019 | | 9,586 |
| | 54 |
| | 1 |
| | 3.7 | % | | 365,900 |
|
2020 | | 12,255 |
| | 44 |
| | 1 |
| | 4.8 | % | | 461,797 |
|
2021 | | 9,381 |
| | 45 |
| | 3 |
| | 3.6 | % | | 419,004 |
|
2022 | | 13,785 |
| | 51 |
| | 3 |
| | 5.4 | % | | 571,687 |
|
Thereafter | | 26,770 |
| | 52 |
| | 8 |
| | 10.4 | % | | 1,058,479 |
|
|
| | | | | | |
AVERAGE TENANT SIZE |
| | NUMBER OF LEASES |
Square Footage | | Multi-Tenant Properties (3) |
| | Single-Tenant Net Lease Properties |
|
0 - 2,500 | | 977 |
| | — |
|
2,501 - 5,000 | | 486 |
| | — |
|
5,001 - 7,500 | | 150 |
| | 1 |
|
7,501 - 10,000 | | 80 |
| | 2 |
|
10,001 + | | 169 |
| | 37 |
|
Total Leases | | 1,862 |
| | 40 |
|
| |
(1) | Excludes mortgage notes receivable, construction in progress, an investment in one unconsolidated joint venture, corporate property and assets classified as held for sale unless otherwise noted. |
| |
(2) | Represents the annualized minimum rents on leases in-place, excluding the impact of potential lease renewals, future step-ups in rent, or sponsor support payments under financial support agreements and straight-line rent. |
| |
(3) | The average lease size in the multi-tenant properties is 4,275 square feet. |
|
| | |
| | |
| | |
HEALTHCARE REALTY I 12 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Occupancy Information (1)
(dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | |
OCCUPANCY BY FACILITY TYPE | | | | | | | | | | | | | | |
| | | | | | 2013 | | 2012 | |
Facility Type | | Investment at 3/31/2013 |
| | Square Feet at 3/31/2013 |
| | Q1 |
| | Q4 |
| | Q3 |
| | Q2 |
| | Q1 |
|
Medical office/outpatient | | $1,987,246 | | 10,691,577 |
| | 85.8 | % | | 86.5 | % | | 86.1 | % | | 85.5 | % | | 86.2 | % |
Inpatient | | 338,719 |
| | 1,024,160 |
| | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
Other | | 46,390 |
| | 498,293 |
| | 83.7 | % | | 83.4 | % | | 76.2 | % | | 76.2 | % | | 76.2 | % |
Portfolio Occupancy (2) | | $2,372,355 | | 12,214,030 |
| | 86.9 | % | | 87.7 | % | | 87.1 | % | | 86.6 | % | | 87.2 | % |
Stabilization in Progress Occupancy (3) | | $409,450 | | 1,282,716 |
| | 45.2 | % | | 41.2 | % | | 37.3 | % | | 32.5 | % | | 27.9 | % |
|
| | | | | | | | | | | | | | | | |
OCCUPANCY (2) | | | | | | | | | |
| | | | 2013 |
| | 2012 | |
| Investment at 3/31/2013 |
| Square Feet at 3/31/2013 |
| | Q1 |
| | Q4 |
| Q3 |
| Q2 |
| Q1 |
|
Multi-Tenant | | | | | | | | | |
Same store (4) | $1,613,243 | 8,838,479 |
| | 87.4 | % | | 87.9 | % | 87.7 | % | 87.1 | % | 88.7 | % |
Acquisitions | 53,432 |
| 238,591 |
| | 96.8 | % | | 96.5 | % | 95.7 | % | 95.7 | % | 95.1 | % |
Reposition | 140,024 |
| 844,388 |
| | 44.0 | % | | 47.5 | % | 47.9 | % | 41.5 | % | 43.0 | % |
Total | $1,806,699 | 9,921,458 |
| | 83.9 | % | | 84.6 | % | 84.5 | % | 83.7 | % | 84.4 | % |
| | | | | | | | | |
Single-Tenant Net lease | | | | | | | | | |
Same store (4) | $488,568 | 2,020,960 |
| | 100.0 | % | | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Acquisitions | 66,290 |
| 207,698 |
| | 100.0 | % | | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Reposition | 10,798 |
| 63,914 |
| | 100.0 | % | | 100.0 | % | — |
| — |
| — |
|
Total | $565,656 | 2,292,572 |
| | 100.0 | % | | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
| | | | | | | | | |
Total | | | | | | | | | |
Same store (4) | $2,101,811 | 10,859,439 |
| | 89.7 | % | | 90.3 | % | 90.1 | % | 89.6 | % | 91.0 | % |
Acquisitions | 119,722 |
| 446,289 |
| | 98.3 | % | | 98.0 | % | 96.0 | % | 95.5 | % | 92.2 | % |
Reposition | 150,822 |
| 908,302 |
| | 47.9 | % | | 51.1 | % | 47.9 | % | 41.6 | % | 43.0 | % |
Total | $2,372,355 | 12,214,030 |
| | 86.9 | % | | 87.7 | % | 87.1 | % | 86.6 | % | 87.2 | % |
| | | | | | | | | |
# of Properties | | | | | | | | | |
Same store (4) | | | | 161 |
| | 162 |
| 154 |
| 159 |
| 162 |
|
Acquisitions | | | | 8 |
| | 9 |
| 10 |
| 10 |
| 9 |
|
Reposition | | | | 18 |
| | 19 |
| 19 |
| 17 |
| 19 |
|
Total | | | | 187 |
| | 190 |
| 183 |
| 186 |
| 190 |
|
| |
(1) | Excludes mortgage notes receivable, construction in progress, an investment in one unconsolidated joint venture, corporate property and assets classified as held for sale. |
| |
(2) | The portfolio occupancy assumes that properties under a Property Operating Agreement or Single-Tenant Net Leases have 100% occupancy. The average underlying tenant occupancy of the five properties under Property Operating Agreements, as directed by the respective sponsor, was approximately 76%. The portfolio occupancy excludes the twelve development properties currently in stabilization. |
| |
(3) | The properties in stabilization are currently 65% leased. The difference between occupied and leased reflects tenants that have signed leases but have not taken occupancy because of buildout to the suite. |
| |
(4) | In order to provide meaningful comparisons, same store occupancy excludes properties that were recently acquired or disposed of, properties held for sale, and properties in stabilization or conversion. |
|
| | |
| | |
| | |
HEALTHCARE REALTY I 13 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Leasing Statistics (1)(2)(3)
|
| | | | | | | | | | | |
| | | | | | |
| 2013 |
| | 2012 | |
| Q1 |
| | Q4 |
| Q3 |
| Q2 |
| Q1 |
|
Contractual increases for in-place leases ("annual bumps") | | | | | | |
Multi-tenant properties | 3.0 | % | | 3.1 | % | 3.2 | % | 3.1 | % | 3.3 | % |
Single-tenant net lease properties | 1.8 | % | | 2.1 | % | 2.3 | % | 2.5 | % | 3.0 | % |
Newly executed leases ("cash leasing spreads") | 1.8 | % | | 1.0 | % | 0.4 | % | 1.8 | % | 1.8 | % |
Tenant retention rate, multi-tenant properties | 84.2 | % | | 76.4 | % | 85.1 | % | 79.7 | % | 85.4 | % |
|
| | | |
| | |
| As of 3/31/2013 |
| |
Multi-Tenant Contractual Rental Rate Increases by Type (4) | | |
Annual increase | 79.6 | % | |
Non-annual increase | 9.5 | % | |
No increase within Remaining Term | 10.9 | % | |
| | |
Tenant Type | | |
Multi-Tenant properties | | |
Hospital | 39.8 | % | |
Physician and other | 60.2 | % | |
Single-Tenant net lease properties | | |
Hospital | 89.5 | % | |
Other | 10.5 | % | |
| | |
Lease Structure | |
Gross | 26.5 | % | |
Modified gross | 38.7 | % | |
Net | 34.8 | % | |
| | |
Ownership Type | |
Ground lease | 54.8 | % | |
Fee simple | 45.2 | % | |
| |
(1) | Excludes mortgage notes receivable, construction in progress, an investment in one unconsolidated joint venture, corporate property and assets classified as held for sale. |
| |
(2) | All percentages presented are calculated based on total square feet. |
| |
(3) | Represents historical rental rate increases and may not be indicative of future increases. |
| |
(4) | "Non-annual increase" refers to leases that have a term greater than one year, but do not have rent increases each year. "No Increase within Remaining Term" refers to leases with less than one year remaining or have a term greater than one year, but no increases during the current lease term. |
|
| | |
| | |
| | |
HEALTHCARE REALTY I 14 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Same Store Properties
(dollars in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
SAME STORE PROPERTIES (1)(2) | | | | | | | | | | | | | | |
| | | | | | | | SEQUENTIAL | | YEAR-OVER-YEAR |
| | 1Q 2013 |
| | 4Q 2012 |
| | 1Q 2012 |
| | $ |
| | Percentage Change |
| | $ |
| | Percentage Change |
|
Multi-tenant | | | | | | | |
|
| |
|
| |
|
| |
|
|
Revenues | |
| $55,653 |
| |
| $55,751 |
| |
| $55,204 |
| |
| ($98 | ) | | (0.2 | )% | |
| $449 |
| | 0.8 | % |
Expenses | | 23,545 |
| | 23,449 |
| | 23,746 |
| | 96 |
| | 0.4 | % | | (201 | ) | | (0.8 | )% |
NOI | |
| $32,108 |
| |
| $32,302 |
| |
| $31,458 |
| |
| ($194 | ) | | (0.6 | )% | |
| $650 |
| | 2.1 | % |
Occupancy | | 87.4 | % | | 87.9 | % | | 88.3 | % | | | | | | | | |
Number of properties | | 125 |
| | 125 |
| | 125 |
| | | | | | | | |
| | | | | | | | | | | | | | |
Single-tenant net lease | | | | | | | | | | | | | | |
Revenues | |
| $12,786 |
| |
| $12,723 |
| |
| $11,829 |
| |
| $63 |
| | 0.5 | % | |
| $957 |
| | 8.1 | % |
Expenses | | 383 |
| | 400 |
| | (151 | ) | | (17 | ) | | (4.3 | )% | | 534 |
| | (353.6 | )% |
NOI | |
| $12,403 |
| |
| $12,323 |
| |
| $11,980 |
| |
| $80 |
| | 0.6 | % | |
| $423 |
| | 3.5 | % |
Occupancy | | 100.0 | % | | 100.0 | % | | 100.0 | % | | | | | | | | |
Number of properties | | 36 |
| | 36 |
| | 36 |
| | | | | | | | |
| | | | | | | | | | | | | | |
Total Revenues | | 68,439 |
| | 68,474 |
| | 67,033 |
| |
| ($35 | ) | | (0.1 | )% | | 1,406 |
| | 2.1 | % |
Total Expenses | | 23,928 |
| | 23,849 |
| | 23,595 |
| | 79 |
| | 0.3 | % | | 333 |
| | 1.4 | % |
Total NOI | | $44,511 | | $44,625 | | $43,438 | |
| ($114 | ) | | (0.3 | )% | |
| $1,073 |
| | 2.5 | % |
Occupancy | | 89.7 | % | | 90.1 | % | | 90.5 | % | | | | | | | | |
Number of properties | | 161 |
| | 161 |
| | 161 |
| | | | | | | | |
|
| | | | | | | | | |
RECONCILIATION OF NOI |
| | 1Q 2013 |
| | 4Q 2012 |
| | 1Q 2012 |
|
Rental income | | $78,191 | | $76,411 | | $72,099 |
Rental lease guaranty income (a) | | 1,275 |
| | 1,226 |
| | 1,243 |
|
Exclude straight-line rent revenue | | (1,848 | ) | | (1,262 | ) | | (1,698 | ) |
Revenue | | 77,618 |
| | 76,375 |
| | 71,644 |
|
Revenue not included in same store | | (9,179 | ) | | (7,901 | ) | | (4,611 | ) |
Same store revenue | | $68,439 | | $68,474 | | $67,033 |
| | | | | | |
Property operating expense | | $29,826 | | $30,081 | | $28,285 |
Property operating expense not included in same store | | (5,898 | ) | | (6,232 | ) | | (4,690 | ) |
Same store property operating expense | | $23,928 | | $23,849 | | $23,595 |
| | | | | | |
Same store NOI | | $44,511 | | $44,625 | | $43,438 |
(a) Other operating income reconciliation: | | | | | | |
Rental lease guaranty income | | $1,275 | | $1,226 | | $1,243 |
Interest income | | 91 |
| | 124 |
| | 138 |
|
Other | | 90 |
| | 92 |
| | 393 |
|
Total consolidated other operating income | | $1,456 | | $1,442 | | $1,774 |
| |
(1) | Excludes mortgage notes receivable, construction in progress, an investment in one unconsolidated joint venture, corporate property and assets classified as held for sale. |
| |
(2) | In order to provide meaningful comparisons, same store NOI is adjusted for certain non-routine items and excludes properties that were recently acquired or disposed of, properties held for sale, and properties in stabilization or conversion. |
|
| | |
| | |
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HEALTHCARE REALTY I 15 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Components of Net Asset Value
(dollars in thousands)
|
| | | | | | | | | | | | | | | | |
| | | | | | | | | | |
Asset Type | | Same Store 1Q 2013 NOI (1) |
| | Adjustments (2) |
| | Adjusted 1Q 2013 NOI |
| | Annualized Adjusted 1Q 2013 NOI |
| | % of Adjusted NOI |
|
MOB / Outpatient | | $35,732 | | $2,149 | | $37,881 | | $151,524 | | 81.2 | % |
Inpatient rehab | | 4,486 |
| | — |
| | 4,486 |
| | 17,944 |
| | 9.6 | % |
Inpatient surgical | | 2,936 |
| | — |
| | 2,936 |
| | 11,744 |
| | 6.3 | % |
Other | | 1,357 |
| | — |
| | 1,357 |
| | 5,428 |
| | 2.9 | % |
Subtotal | | $44,511 | | $2,149 | | $46,660 | |
| $186,640 |
| | 100.0 | % |
TOTAL SHARES OUTSTANDING (3) 90,402,345
|
| | | |
| | |
+ | ADD: DEVELOPMENT PROPERTIES AND MORTGAGES(4) |
| Land held for development | $17,054 |
| Stabilization in progress | 409,450 |
|
| Mortgage notes receivable | 190,134 |
|
| | |
| Subtotal | $616,638 |
| | |
| | |
+ | ADD: OTHER ASSETS | |
| Assets held for sale (5) | $32,943 |
| Properties not in Same Store NOI (6) | 98,385 |
|
| Cash and other assets (7) | 160,951 |
|
| | |
| Subtotal | $292,279 |
| | |
| | |
- | SUBTRACT: DEBT | |
| Unsecured credit facility (8) | $ - |
| Senior notes (8) | 1,214,737 |
|
| Mortgage notes payable (8) | 209,132 |
|
| Other liabilities (9) | 71,867 |
|
| | |
| Subtotal | $1,495,736 |
| | |
| |
(1) | See Same Store Properties schedule on page 15 for details on same store NOI. |
| |
(2) | Same store NOI is adjusted to reflect a full quarter of NOI from properties acquired during the prior five quarters. |
| |
(3) | Total shares outstanding as of April 26, 2013. |
| |
(4) | Land held for development, stabilization in progress, and mortgage notes receivable reflect gross book value. |
| |
(5) | Assets held for sale are excluded from same store NOI and reflect net book value or the fixed purchase price, where applicable. |
| |
(6) | Reflects net carrying amount of certain properties not included in same store NOI, which comprises 908,302 square feet and generated NOI of approximately $0.6 million for 1Q 2013. |
| |
(7) | Includes cash of $94.2 million and other assets of $66.8 million that are expected to generate future cash or NOI and assets that are currently causing non-cash reductions to NOI. Other assets include prepaid assets of $52.3 million, above-market intangible assets (net) of $13.1 million, equity investment in an unconsolidated joint venture of $1.3 million, and notes receivable (net) of $0.1 million. |
| |
(8) | Outstanding principal balances. |
| |
(9) | Includes only liabilities that are expected to reduce future cash or NOI and that are currently producing non-cash benefits to NOI. Included are accounts payable and accrued liabilities of $45.7 million, pension plan liability of $15.4 million, security deposits of $4.7 million, market-rate lease intangibles of $4.5 million, and deferred operating expense reimbursements of $1.5 million. Also, excludes deferred revenue of $31.6 million. |
|
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HEALTHCARE REALTY I 16 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
Components of Expected 2013 FFO
(dollars in thousands, except per square foot data)
|
| | | | | | | | | |
| QUARTERLY RANGE OF EXPECTATIONS (1) | | | | |
| | | Low |
| | High |
|
| Occupancy | | | | |
| Multi-Tenant Same Store | | 87.0 | % | | 89.0 | % |
| Multi-Tenant Reposition | | 40.0 | % | | 50.0 | % |
| Single-Tenant Net Lease | | 95.0 | % | | 100.0 | % |
| | | | | |
| Same Store Revenue per Occupied Square Foot | | | | |
| Multi-Tenant | |
| $28.00 |
| |
| $30.25 |
|
| Single-Tenant Net Lease | |
| $24.00 |
| |
| $26.25 |
|
| | | | | |
| Same Store Multi-Tenant NOI Margin | | 55.0 | % | | 58.0 | % |
| | | | | |
| Multi-Tenant Contractual Rent Increases by Type (% of SF) | | | | |
| Annual Increase | | 75.0 | % | | 80.0 | % |
| Non-annual Increase | | 7.5 | % | | 12.0 | % |
| No Increase within Remaining Term | | 12.0 | % | | 15.0 | % |
| | | | | |
| Contractual Annual Rent Increases | | | | |
| Multi-Tenant | | 3.0 | % | | 3.5 | % |
| Single-Tenant Net Lease | | 2.0 | % | | 3.0 | % |
| | | | | |
| Multi-Tenant Cash Releasing Spreads | | 0.5 | % | | 3.0 | % |
| | | | | |
| Multi-Tenant Lease Retention Rate | | 75.0 | % | | 85.0 | % |
| | | | | |
| Same Store Multi-Tenant NOI Growth | | 2.0 | % | | 4.0 | % |
| | | | | |
| ANNUAL RANGE OF EXPECTATIONS | | | | |
| | | Low |
| | High |
|
| Stabilization in Process ("SIP") | | | | |
| Year-End 2013 Lease Percentage | | 75.0 | % | | 85.0 | % |
| Year-End 2013 Occupancy Percentage | | 65.0 | % | | 70.0 | % |
| | | | | |
| Normalized G&A | | $21,000 | | $23,000 |
| | | | | |
| Funding Activity | | | | |
| SIP Funding (tenant improvements) | |
| $15,000 |
| |
| $25,000 |
|
| Construction Mortgage Funding | |
| $84,000 |
| |
| $85,000 |
|
| Acquisitions | |
| $100,000 |
| |
| $200,000 |
|
| Dispositions | |
| $50,000 |
| |
| $70,000 |
|
| | | | | |
| Cap/Interest Rate | | | | |
| Construction Mortgage Funding | | 6.75 | % | | 8.00 | % |
| Acquisitions | | 6.00 | % | | 8.00 | % |
| Dispositions | | 7.00 | % | | 8.50 | % |
| | | | | |
| Leverage (Debt/Cap) | | 40.0 | % | | 45.0 | % |
(1) Indicates range in which quarterly results are expected to fall.
|
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HEALTHCARE REALTY I 17 | | 1Q I 2013 SUPPLEMENTAL INFORMATION |
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