Healthcare Realty Trust 8-K Healthcare Realty Trust Announces Second Quarter Results

Exhibit 99.1

HEALTHCARE REALTY
Scott W. Holmes
Executive Vice President &
Chief Financial Officer
P 615.269.8175
www.healthcarerealty.com

NEWS RELEASE

HEALTHCARE REALTY TRUST ANNOUNCES SECOND QUARTER RESULTS

NASHVILLE, Tennessee, August 10, 2009 — Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the second quarter ended June 30, 2009. Funds from operations (“FFO”) per diluted common share for the three months ended June 30, 2009 totaled $0.44, compared with $0.38 for the three months ended June 30, 2008. FFO per diluted common share totaled $0.87 for the six months ended June 30, 2009, compared with the prior year’s $0.77.

Funds available for distribution (“FAD”) for the three months ended June 30, 2009 totaled $0.48 per diluted common share.

Revenues for the three months ended June 30, 2009 totaled $65.1 million, compared with the prior year’s $52.6 million. Revenues for the six months ended June 30, 2009 totaled $128.1 million, compared with the prior year’s $104.8 million. Income from continuing operations for the three months ended June 30, 2009 totaled $9.4 million, compared with $4.8 million for the three months ended June 30, 2008. Income from continuing operations for the six months ended June 30, 2009 totaled $17.1 million, compared with the prior year’s $9.7 million.

Net income for the three months ended June 30, 2009 totaled $16.8 million, or $0.28 per diluted common share, versus $13.8 million, or $0.27 per diluted common share, for the three months ended 2008. Net income for the six months ended June 30, 2009 totaled $37.7 million, or $0.64 per diluted common share, compared with $20.6 million, or $0.41 per diluted common share for the six months ended June 30, 2008.

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 $2.2 billion in 203 real estate properties and mortgages as of June 30, 2009, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company’s 198 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 28 states, totaling approximately 12.1 million square feet. The Company provides property management services to approximately 8.8 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, 2008 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 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,
	2009			2008			2009			2008
REVENUES
Master lease rent	$	14,953		$	15,014		$	30,604		$	30,703
Property operating		45,866			32,899			88,776			65,014
Straight-line rent		328			(126	)		688			(182	)
Mortgage interest		978			542			1,468			1,067
Other operating		3,007			4,312			6,514			8,164
		65,132			52,641			128,050			104,766
EXPENSES
General and administrative		5,329			5,863			12,296			11,908
Property operating		23,587			19,279			46,950			37,524
Bad debts, net of recoveries		127			115			562			260
Depreciation		15,575			11,665			31,300			23,127
Amortization		1,346			566			2,827			1,150
		45,964			37,488			93,935			73,969
OTHER INCOME (EXPENSE)
Gain on extinguishment of debt, net		—			9			—			9
Re-measurement gain of equity interest upon acquisition		—			—			2,701			—
Interest expense		(10,043	)		(10,886	)		(20,116	)		(21,764	)
Interest and other income, net		228			486			383			622
		(9,815	)		(10,391	)		(17,032	)		(21,133	)
INCOME FROM CONTINUING OPERATIONS		9,353			4,762			17,083			9,664
DISCONTINUED OPERATIONS
Income from discontinued operations		18			1,289			582			2,582
Impairments		—			—			(22	)		(29	)
Gain on sales of real estate properties		7,443			7,715			20,051			8,352
INCOME FROM DISCONTINUED OPERATIONS		7,461			9,004			20,611			10,905
NET INCOME		16,814			13,766			37,694			20,569
Less: Net income attributable to noncontrolling interests		(62	)		—			(77	)		(3	)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	16,752		$	13,766		$	37,617		$	20,566
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	0.16		$	0.10		$	0.29		$	0.20
Discontinued operations		0.13			0.18			0.36			0.22
Net income attributable to common stockholders	$	0.29		$	0.28		$	0.65		$	0.42
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	0.16		$	0.09		$	0.29		$	0.19
Discontinued operations		0.12			0.18			0.35			0.22
Net income attributable to common stockholders	$	0.28		$	0.27		$	0.64		$	0.41
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — BASIC		58,128,489			49,431,724			58,153,637			49,422,391
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — DILUTED		58,899,618			50,474,762			58,897,895			50,442,808

(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.

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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,
	2009			2008			2009			2008
Cash flows from operating activities:
Net income	$	16,814		$	13,766		$	37,694		$	20,569
Non-cash items:
Depreciation and amortization — real estate		16,703			12,721			33,574			25,276
Depreciation and amortization — other		835			640			1,644			1,204
Provision for bad debt, net of recoveries		129			115			566			331
Impairments		—			—			22			29
Straight-line rent receivable		(319	)		134			(672	)		199
Straight-line rent liability		111			43			224			86
Equity in (income) losses from unconsolidated joint ventures		—			(116	)		2			148
Stock-based compensation		1,013			1,107			2,301			2,403
Provision for deferred post-retirement benefits		475			818			1,967			1,654
Gain on repurchase of notes payable		—			(9	)		—			(9	)
Re-measurement gain of equity interest upon acquisition		—			—			(2,701	)		—
Other non-cash items		253			133			507			439
Total non-cash items		19,200			15,586			37,434			31,760
Other items:
Accounts payable and accrued liabilities		(4,409	)		(7,465	)		(3,200	)		(3,686	)
Other liabilities		(4,327	)		(2,075	)		(3,346	)		(2,810	)
Other assets		(1,066	)		(508	)		132			5,866
Gain on sales of real estate properties		(7,443	)		(7,715	)		(20,051	)		(8,352	)
Payment of partial pension settlement		—			—			(2,300	)		—
State income taxes paid, net of refunds		(503	)		(621	)		(569	)		(621	)
Total other items		(17,748	)		(18,384	)		(29,334	)		(9,603	)
Net cash provided by operating activities		18,266			10,968			45,794			42,726
Cash flows from investing activities:
Acquisition and development of real estate properties		(28,715	)		(18,134	)		(61,791	)		(37,694	)
Funding of mortgages and notes receivable		(5,365	)		(5,916	)		(8,816	)		(7,181	)
Investment in unconsolidated joint ventures		(149	)		—			(149	)		—
Distributions received from unconsolidated joint ventures		—			444			—			867
Proceeds from sales of real estate		18,971			18,625			82,878			22,040
Proceeds from mortgages and notes receivable repayments		60			43			98			79
Net cash provided by (used in) investing activities		(15,198	)		(4,938	)		12,220			(21,889	)
Cash flows from financing activities:
Net borrowings on unsecured credit facility		13,000			14,000			9,000			22,000
Repayments on notes and bonds payable		(1,021	)		(918	)		(21,569	)		(1,825	)
Repurchase of notes payable		—			(5,332	)		—			(5,332	)
Quarterly dividends paid		(22,849	)		(19,534	)		(45,678	)		(39,067	)
Proceeds from issuance of common stock		165			176			348			361
Common stock redemption		—			(282	)		—			(282	)
Credit facility amendment fee		—			(326	)		—			(326	)
Capital contribution received from noncontrolling interests		—			—			529			—
Distributions to noncontrolling interests		(32	)		—			(75	)		(3	)
Net cash used in financing activities		(10,737	)		(12,216	)		(57,445	)		(24,474	)
Increase (decrease) in cash and cash equivalents		(7,669	)		(6,186	)		569			(3,637	)
Cash and cash equivalents, beginning of period		12,376			11,068			4,138			8,519
Cash and cash equivalents, end of period	$	4,707		$	4,882		$	4,707		$	4,882

(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.

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RECONCILIATION OF FUNDS FROM OPERATIONS (1) (2):
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Net Income Attributable to Common Stockholders	$	16,752		$	13,766		$	37,617		$	20,566
Gain on sales of real estate properties		(7,443	)		(7,715	)		(20,051	)		(8,352	)
Real estate depreciation and amortization		16,703			13,150			33,585			26,423
Total adjustments		9,260			5,435			13,534			18,071
Funds From Operations — Basic and Diluted	$	26,012		$	19,201		$	51,151		$	38,637
Funds From Operations Per Common Share — Basic	$	0.45		$	0.39		$	0.88		$	0.78
Funds From Operations Per Common Share — Diluted	$	0.44		$	0.38		$	0.87		$	0.77
Weighted Average Common Shares Outstanding — Basic		58,128,489			49,431,724			58,153,637			49,422,391
Weighted Average Common Shares Outstanding — Diluted		58,899,618			50,474,762			58,897,895			50,442,808

RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2):
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended
	June 30, 2009
Net Income Attributable to Common Stockholders	$	16,752
Gain on sales of real estate properties		(7,443	)
Total non-cash items included in cash flows from operating activities (3)		19,200
Funds Available For Distribution	$	28,509
Funds Available For Distribution Per Common Share — Diluted	$	0.48
Weighted Average Common Shares Outstanding — Diluted		58,899,618

(1)	Funds from operations (“FFO”) is calculated according to the definition of the National Association of Real Estate Investment Trusts 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, while impairments are included in FFO and FFO per share.
(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 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.
(3)	See the Condensed Consolidated Statements of Cash Flows that are included in this earnings release.

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