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

Exhibit 99.1

HEALTHCARE REALTY
Gabrielle M. Andrés
Corporate Communications
P 615.269.8175
www.healthcarerealty.com

NEWS RELEASE

HEALTHCARE REALTY TRUST ANNOUNCES FOURTH QUARTER RESULTS

NASHVILLE, Tennessee, February 22, 2010 — Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the fourth quarter ended December 31, 2009. Funds from operations (“FFO,” as defined by the National Association of Real Estate Investment Trusts, “NAREIT”) per diluted common share for the three months ended December 31, 2009 totaled $0.35, compared with $0.49 for the three months ended December 31, 2008. FFO per diluted common share totaled $1.66 for the twelve months ended December 31, 2009, compared with the prior year’s $1.63.

Funds available for distribution (“FAD”) for the three months ended December 31, 2009 totaled $0.39 per diluted common share.

Revenues for the three months ended December 31, 2009 totaled $63.7 million, compared with the prior year’s $57.0 million. Revenues for the twelve months ended December 31, 2009 totaled $253.3 million, compared with the prior year’s $213.9 million. Income from continuing operations for the three months ended December 31, 2009 totaled $3.9 million, compared with $6.9 million for the three months ended December 31, 2008. Income from continuing operations for the twelve months ended December 31, 2009 totaled $28.2 million, compared with the prior year’s $18.2 million.

Net income attributable to common stockholders for the three months ended December 31, 2009 totaled $4.4 million, or $0.07 per diluted common share, versus $15.6 million, or $0.27 per diluted common share, for the three months ended December 31, 2008. Net income attributable to common stockholders for the twelve months ended December 31, 2009 totaled $51.1 million, or $0.87 per diluted common share, compared with $41.7 million, or $0.79 per diluted common share for the twelve months ended December 31, 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 $2.3 billion in 204 real estate properties and mortgages as of December 31, 2009, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture. The Company’s 199 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 28 states, totaling approximately 12.3 million square feet. The Company provides property management services to approximately 9.3 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, 2009 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
Consolidated Statements of Income (1)
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2009			2008			2009			2008
REVENUES
Master lease rent	$	14,598		$	14,657		$	57,648		$	58,073
Property operating		45,615			37,053			180,024			136,745
Straight-line rent		598			717			2,027			651
Mortgage interest		520			561			2,646			2,207
Other operating		2,333			4,009			10,959			16,255
		63,664			56,997			253,304			213,931
EXPENSES
General and administrative		5,090			5,588			22,493			23,514
Property operating		24,235			23,108			95,141			82,223
Impairment		—			—			—			1,600
Bad debts, net of recoveries		108			1,478			537			1,833
Depreciation		16,076			12,972			62,447			48,129
Amortization		1,196			930			5,259			2,849
		46,705			44,076			185,877			160,148
OTHER INCOME (EXPENSE)
Gain on extinguishment of debt, net		—			2,079			—			4,102
Re-measurement gain of equity interest upon acquisition		—			—			2,701			—
Interest expense		(13,549	)		(9,748	)		(43,080	)		(42,126	)
Interest and other income, net		498			1,632			1,173			2,439
		(13,051	)		(6,037	)		(39,206	)		(35,585	)
INCOME FROM CONTINUING OPERATIONS		3,908			6,884			28,221			18,198
DISCONTINUED OPERATIONS
Income from discontinued operations		507			8,843			2,813			14,605
Impairments		—			(857	)		(22	)		(886	)
Gain on sales of real estate properties		—			745			20,136			9,843
INCOME FROM DISCONTINUED OPERATIONS		507			8,731			22,927			23,562
NET INCOME		4,415			15,615			51,148			41,760
Less: Net income attributable to noncontrolling interests		(45	)		(16	)		(57	)		(68	)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	4,370		$	15,599		$	51,091		$	41,692
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	0.07		$	0.12		$	0.48		$	0.35
Discontinued operations		—			0.15			0.40			0.46
Net income attributable to common stockholders	$	0.07		$	0.27		$	0.88		$	0.81
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	0.07		$	0.12		$	0.48		$	0.35
Discontinued operations		—			0.15			0.39			0.44
Net income attributable to common stockholders	$	0.07		$	0.27		$	0.87		$	0.79
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — BASIC		58,357,290			57,765,614			58,199,592			51,547,279
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — DILUTED		59,311,720			58,705,348			59,047,314			52,564,944

(1) The Consolidated Statements of Income 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.

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HEALTHCARE REALTY TRUST INCORPORATED
Consolidated Statements of Cash Flows (1)
(Dollars in thousands)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2009			2008			2009			2008
Cash flows from operating activities:
Net income	$	4,415		$	15,615		$	51,148		$	41,760
Non-cash items:
Depreciation and amortization — real estate		16,539			13,769			66,914			52,069
Depreciation and amortization — other		1,493			812			4,007			2,679
Provision for bad debts, net of recoveries		108			1,478			517			1,904
Impairments		—			857			22			2,486
Straight-line rent receivable		(577	)		(718	)		(1,925	)		(643	)
Straight-line rent liability		108			276			444			423
Equity in (income) losses from unconsolidated joint ventures		—			(1,114	)		2			(1,021	)
Stock-based compensation		425			(707	)		3,711			2,780
Provision for deferred post-retirement benefits		417			2,510			2,860			4,992
Re-measurement gain of equity interest upon acquisition		—			—			(2,701	)		—
Other non-cash items		(38	)		(13	)		723			559
Total non-cash items		18,475			17,150			74,574			66,228
Other items:
Accounts payable and accrued liabilities		(6,857	)		(6,556	)		5,127			3,097
Other liabilities		4,864			3,280			(3,508	)		2,313
Other assets		(65	)		1,765			(1,017	)		6,794
Gain on sales of real estate properties		—			(745	)		(20,136	)		(9,843	)
Gain on sale of land		—			(384	)		—			(384	)
Gain on extinguishment of debt		—			(2,079	)		—			(4,102	)
Payment of partial pension settlement		—			—			(2,300	)		—
State income taxes paid, net of refunds		(12	)		39			(674	)		(612	)
Total other items		(2,070	)		(4,680	)		(22,508	)		(2,737	)
Net cash provided by operating activities		20,820			28,085			103,214			105,251
Cash flows from investing activities:
Acquisition and development of real estate properties		(71,254	)		(245,250	)		(170,520	)		(383,702	)
Funding of mortgages and notes receivable		(10,208	)		(24,451	)		(23,391	)		(36,970	)
Investment in unconsolidated joint ventures		—			—			(184	)		—
Distributions received from unconsolidated joint ventures		—			—			—			882
Partial redemption of preferred equity investment in an unconsolidated joint venture		—			—			—			5,546
Proceeds from sales of real estate		—			12,452			83,441			37,133
Proceeds from mortgages and notes receivable repayments		12,688			5,602			12,893			8,236
Net cash used in investing activities		(68,774	)		(251,647	)		(97,761	)		(368,875	)
Cash flows from financing activities:
Net borrowings (repayments) on unsecured credit facilities		(323,000	)		261,000			(279,000	)		193,000
Borrowings on notes and bonds payable		377,969			—			377,969			—
Repayments on notes and bonds payable		(5,793	)		(1,093	)		(28,433	)		(3,813	)
Repurchase of notes payable					(14,222	)		—			(45,460	)
Quarterly dividends paid		(22,855	)		(22,692	)		(91,385	)		(81,301	)
Proceeds from issuance of common stock		25,933			193			26,467			197,255
Equity issuance costs		(3	)		(357	)		(3	)		(389	)
Common stock redemption		—			—			(8	)		(282	)
Debt issuance costs		(3,900	)		—			(11,293	)		—
Credit facility amendment and extension fees		—			(800	)		—			(1,126	)
Capital contributions received from noncontrolling interests		457			573			2,228			1,469
Distributions to noncontrolling interests		(91	)		(58	)		(282	)		(110	)
Net cash provided by (used in) financing activities		48,717			222,544			(3,740	)		259,243
Increase (decrease) in cash and cash equivalents		763			(1,018	)		1,713			(4,381	)
Cash and cash equivalents, beginning of period		5,088			5,156			4,138			8,519
Cash and cash equivalents, end of period	$	5,851		$	4,138		$	5,851		$	4,138

(1) The Consolidated Statements of Cash Flows do not include all of the information and footnotes required by accounting principles generally accepted in United States of America 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					Twelve Months Ended
	December 31,					December 31,
	2009		2008			2009			2008
Net Income Attributable to Common Stockholders	$	4,370	$	15,599		$	51,091		$	41,692
Gain on sales of real estate properties		—		(1,129	)		(20,136	)		(10,227	)
Real estate depreciation and amortization		16,539		14,094			66,927			53,972
Total adjustments		16,539		12,965			46,791			43,745
Funds From Operations — Basic and Diluted	$	20,909	$	28,564		$	97,882		$	85,437
Funds From Operations Per Common Share — Basic	$	0.36	$	0.49		$	1.68		$	1.66
Funds From Operations Per Common Share — Diluted	$	0.35	$	0.49		$	1.66		$	1.63
Weighted Average Common Shares Outstanding — Basic		58,357,290		57,765,614			58,199,592			51,547,279
Weighted Average Common Shares Outstanding — Diluted		59,311,720		58,705,348			59,047,314			52,564,944

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

`	Three Months Ended
	December 31, 2009
Net Income Attributable to Common Stockholders	$	4,370
Gain on sales of real estate properties		—
Total non-cash items included in cash flows from operating activities (3)		18,475
Funds Available For Distribution	$	22,845
Funds Available For Distribution Per Common Share — Diluted	$	0.39
Weighted Average Common Shares Outstanding — Diluted		59,311,720

(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 attributable to common stockholders 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 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)	See the Consolidated Statements of Cash Flows that are included in this earnings release.

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