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

S u p p l e m e n t a l    D a t a    R e p o r t

Three Months Ended September 30, 2006

Dollars in thousands, except per share data, unless otherwise disclosed

Updated as of October 30, 2006

Quarterly Supplemental Data Report is also available on the Company’s website — www.healthcarerealty.com
Gabrielle M. Andres (615) 269-8471
Email:GAndres@healthcarerealty.com

Healthcare Realty Trust	Page 1 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

1) CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	September 30, 2006			December 31, 2005
ASSETS
Real estate properties (1):
Land	$	137,629		$	133,195
Buildings, improvements, and lease intangibles		1,728,559			1,670,884
Personal property		22,324			21,932
Construction in progress		25,101			7,030
		1,913,613			1,833,041
Less accumulated depreciation		(356,506	)		(315,794	)
Total real estate properties, net		1,557,107			1,517,247
Cash and cash equivalents		3,747			7,037
Mortgage notes receivable		75,462			105,795
Assets held for sale, net (2)		0			21,415
Other assets, net		100,837			96,158
Total assets	$	1,737,153		$	1,747,652
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Notes and bonds payable	$	820,852		$	778,446
Accounts payable and accrued liabilities		41,634			30,774
Other liabilities		21,822			25,964
Total liabilities		884,308			835,184
Commitments and contingencies		0			0
Stockholders’ equity:
Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding		0			0
Common stock, $.01 par value; 150,000,000 shares authorized; issued and outstanding, 47,816,079 — 2006; 47,768,148 — 2005		478			478
Additional paid-in capital		1,222,233			1,220,522
Deferred compensation		(11,755	)		(13,013	)
Cumulative net income		627,465			595,401
Cumulative dividends		(985,576	)		(890,920	)
Total stockholders’ equity		852,845			912,468
Total liabilities and stockholders’ equity	$	1,737,153		$	1,747,652

(1)	Total weighted average depreciable life is 34.3 years as of December 31, 2005. (see schedule 5)
(2)	In accordance with SFAS No. 144, “Accounting for Impairment or Disposal of Long-Lived Assets,” the Company will report assets as held for sale and include the related results of operations in discontinued operations on the Company’s income statement.

Healthcare Realty Trust	Page 2 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

2) CONSOLIDATED STATEMENTS OF INCOME (1)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006		2005
	(Unaudited)			(Unaudited)			(Unaudited)		(Unaudited)
REVENUES
Master lease rental income	$	21,528		$	17,744		$	61,698	$	52,511
Property operating income		31,628			35,626			94,843		101,179
Straight-line rent		524			286			2,265		(1,127	)
Mortgage interest income		2,957			2,624			9,096		6,276
Other operating income (2)		11,429			9,396			31,160		26,711
		68,066			65,676			199,062		185,550
EXPENSES
General and administrative		4,245			4,682			13,005		12,006
Property operating expenses		17,752			19,056			53,409		53,468
Other operating expenses (2)		4,163			4,291			13,000		11,879
Impairment (3)		3,811			—			3,811		—
Bad debt expense		184			131			1,251		131
Interest		14,033			12,176			39,652		35,484
Depreciation		13,188			14,724			39,036		37,990
Amortization		2,467			3,054			8,048		9,181
		59,843			58,114			171,212		160,139
INCOME FROM CONTINUING OPERATIONS		8,223			7,562			27,850		25,411
DISCONTINUED OPERATIONS:
Operating income (loss) from discontinued operations		(87	)		1,109			1,012		8,797
Gain on sale of real estate properties and impairments, net		(73	)		(6	)		3,202		6,773
		(160	)		1,103			4,214		15,570
NET INCOME	$	8,063		$	8,665		$	32,064	$	40,981
BASIC EARNINGS PER COMMON SHARE:
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE	$	0.18		$	0.16		$	0.60	$	0.55
DISCONTINUED OPERATIONS PER COMMON SHARE	$	(0.01	)	$	0.03		$	0.09	$	0.33
NET INCOME PER COMMON SHARE	$	0.17		$	0.19		$	0.69	$	0.88
DILUTED EARNINGS PER COMMON SHARE:
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE	$	0.17		$	0.16		$	0.59	$	0.54
DISCONTINUED OPERATIONS PER COMMON SHARE	$	—		$	0.02		$	0.09	$	0.32
NET INCOME PER COMMON SHARE	$	0.17		$	0.18		$	0.68	$	0.86
WTD AVERAGE COMMON SHARES OUTSTANDING — BASIC		46,545,285			46,484,410			46,522,939		46,457,378
WTD AVERAGE COMMON SHARES OUTSTANDING — DILUTED		47,491,385			47,443,704			47,473,738		47,399,383

(1)	The income statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
(2)	Includes the operations of the properties consolidated in the Company’s consolidated financial statements as required in FIN 46(R) as variable interest entities.
(3)	Includes impairments on two assets.

Healthcare Realty Trust	Page 3 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

2) CONSOLIDATED STATEMENTS OF INCOME (cont.)

     RECONCILIATION OF NET INCOME TO TAXABLE INCOME (unaudited)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
Net income	$	8,063		$	8,665		$	32,064		$	40,981
Depreciation and amortization		2,449			5,401			11,423			12,338
Gain or Loss on disposition of depreciable assets		23			0			5,010			3,615
Straight-line rent		(454	)		(267	)		(2,203	)		1,305
162(m) compensation		912			0			2,115			0
VIE Consolidation		(36	)		0			824			0
Other		3,587			4,779			7,125			4,305
		6,481			9,913			24,294			21,563
Taxable Income (1)	$	14,544		$	18,578		$	56,358		$	62,544

(1) Before REIT dividend paid deduction

NOTE: The differences between financial statement net income and REIT taxable income arise from income and expenses included in net income that are nontaxable or nondeductible, respectively, for federal income tax purposes, or that are taxable or deductible, respectively, in another period or periods due to timing differences between the methods of accounting appropriate under generally accepted accounting principles and those required for federal income tax purposes. Such differences for the Company include those listed above in detail and other differences, which are attributable to deferred rents, reserves for doubtful accounts and other contingencies, prepaid expenses, deferred compensation, nondeductible expenses, nontaxable income, purchase accounting differences arising from tax-free reorganizations, and other differences between GAAP and federal income tax accounting methods.

Healthcare Realty Trust	Page 4 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

3) STATEMENT OF CASH FLOWS

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	8,063		$	8,665		$	32,064		$	40,981
Non-cash items:
Depreciation and amortization — real estate		15,726			17,889			47,474			47,721
Depreciation and amortization — other		284			309			113			950
Amortization of deferred loan fees		—			8			255			242
Impairments due to sale of real estate		73			—			73			710
Equity in losses from unconsolidated LLCs		86			106			160			251
Consolidated (income) losses from variable interest entities		(36	)		358			824			2,893
Deferred compensation amortization		942			1,068			2,832			2,835
FAS123R stock compensation expense		—			—			227			—
Provision for deferred post-retirement benefits		528			247			1,585			740
Provision for bad debt		184			131			1,251			131
Impairment		3,811			—			3,811			—
(Increase) decrease in straight-line rent receivable		(478	)		(267	)		(1,643	)		1,305
Other non-cash items		(133	)		(10	)		(3	)		(186	)
Total non-cash items		20,987			19,839			56,959			57,592
Other items:
Decrease in other liabilities		(2,976	)		(141	)		(2,056	)		(2,095	)
(Increase) decrease in other assets		2,812			(6,139	)		1,183			(12,722	)
Increase in accounts payable and accrued liabilities		11,793			18,320			6,846			15,745
Gain on sale of real estate, net		—			6			(3,275	)		(7,483	)
Total other items		11,629			12,046			2,698			(6,555	)
Net cash provided by operating activities		40,679			40,550			91,721			92,018
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition and development of real estate properties		(27,163	)		(20,117	)		(107,542	)		(81,421	)
Funding of mortgages and notes receivable		(908	)		(650	)		(21,479	)		(64,976	)
Investment in unconsolidated LLCs		(441	)		—			(10,314	)		(11,135	)
Distributions from unconsolidated LLCs		302			212			726			326
Proceeds from sales of real estate		3,876			—			33,020			124,879
Proceeds from mortgage and notes receivable repayments		28,623			1,852			68,980			11,013
Net cash provided by (used in) investing activities		4,289			(18,703	)		(36,609	)		(21,314	)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on notes and bonds payable		63,000			41,000			310,000			163,248
Repayments on notes and bonds payable		(76,834	)		(27,554	)		(272,323	)		(138,280	)
Dividends paid		(31,564	)		(31,521	)		(94,656	)		(93,822	)
Debt issuance costs		—			—			(1,333	)		—
Common stock redemption		—			—			(481	)		—
Proceeds from issuance of common stock		98			(19	)		391			853
Net cash used in financing activities		(45,300	)		(18,094	)		(58,402	)		(68,001	)
Increase (decrease) in cash and cash equivalents		(332	)		3,753			(3,290	)		2,703
Cash and cash equivalents, beginning of period		4,079			1,633			7,037			2,683
Cash and cash equivalents, end of period	$	3,747		$	5,386		$	3,747		$	5,386

4) RECONCILIATION OF FUNDS FROM OPERATIONS (1) — Unaudited

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2006		2005		2006			2005
Net Income (2)	$	8,063	$	8,665	$	32,064		$	40,981
Gain on Sale of Real Estate Properties, net		—		6		(3,275	)		(7,483	)
Real Estate Depreciation and Amortization		15,726		17,889		47,474			47,721
Total Adjustments		15,726		17,895		44,199			40,238
Funds From Operations — Basic and Diluted	$	23,789	$	26,560	$	76,263		$	81,219
Funds From Operations Per Common Share — Basic	$	0.51	$	0.57	$	1.64		$	1.75
Funds From Operations Per Common Share — Diluted	$	0.50	$	0.56	$	1.61		$	1.71
Wtd Average Common Shares Outstanding — Basic		46,545,285		46,484,410		46,522,939			46,457,378
Wtd Average Common Shares Outstanding — Diluted		47,491,385		47,443,704		47,473,738			47,399,383

(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 generally accepted accounting principles), excluding gains (or losses) from sales of property plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.” Impairments are not added back to net income to measure FFO.
	Management uses FFO and FFO per share to compare and evaluate its own operating results from period to period, and to monitor the operating results of the Company’s peers in the REIT industry. The Company reports FFO and FFO per share because these measures are observed by management to also be the predominant measures used by the REIT industry and by industry analysts to evaluate REITs. However, FFO does not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States (“GAAP”) and is not necessarily indicative of cash available to fund cash needs. FFO should not be considered an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.
(2)	See Schedule 3, Statement of Cash Flows, for a reconciliation of non-cash items included in net income. Net income for the three- and nine-month periods ended September 30, 2006 includes non-cash impairment charges totaling $3.8 million related to two assets. Before these charges, FFO per diluted common share for the three months ended September 30, 2006 would have been $0.58.

Healthcare Realty Trust	Page 5 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

5) INVESTMENT PROGRESSION

A) Construction in Progress

			For the Three				For the Nine
	Number of		Months Ended		Number of		Months Ended
	Properties		09/30/06		Properties		09/30/06
Balance at beginning of period		4	$	13,814		2	$	7,030
Fundings on projects in existence at the beginning of the period		0		11,287		0		3,318
New Projects started during the period (1)		0		0		2		14,753
Completions		0		0		0		0
Balance at end of period		4	$	25,101		4	$	25,101

B) Real Estate Properties (2)

				For the Three						For the Nine
	Number of			Months Ended			Number of			Months Ended
	Properties			09/30/06			Properties			09/30/06
Balance at beginning of period		231		$	1,877,815			235		$	1,852,119
Acquisitions		1			8,328			3			73,241
Additions/Improvements		0			4,747			0			17,895
Completions (CIP)		0			0			0			0
Sales (1)		(1	)		(2,378	)		(7	)		(54,743	)
Balance at end of period		231		$	1,888,512			231		$	1,888,512

C) Mortgage Notes Receivable

				For the Three						For the Nine
	Number of			Months Ended			Number of			Months Ended
	Investments			09/30/06			Investments			09/30/06
Balance at beginning of period		11		$	101,823			12		$	105,795
Funding of Mortgages (1)		1			1,986			4			36,827
Repayments (1)		(2	)		(28,281	)		(6	)		(66,603	)
Amortization		0			0			0			(255	)
Scheduled Principal Payments		0			(66	)		0			(302	)
Balance at end of period		10		$	75,462			10		$	75,462

D) Unconsolidated LLCs

			For the Three					For the Nine
	Number of		Months Ended			Number of		Months Ended
	Investments		09/30/06			Properties		09/30/06
Balance at beginning of period		3	$	20,095			1	$	10,720
New investments (1)		0		0			2		9,045
Investments in existing joint ventures		0		441			0		1,269
Equity earnings		0		(86	)		0		(160	)
Cash distributions		0		(302	)		0		(726	)
Balance at end of period		3	$	20,148			3	$	20,148

(1)	During the quarter, the Company purchased land located in Texas for $8.3 million. In addition, the Company financed the sale of an ancillary hospital facility and received a $2.0 million mortgage note receivable. Also, two mortgage note receivables totaling $28.3 million were repaid in full.
(2)	Real Estate Properties includes assets held for sale.

Healthcare Realty Trust	Page 6 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

6) INVESTMENT BY TYPE AND GEOGRAPHIC LOCATION

						Inpatient Facilities
				Medical Office/		Assisted		Skilled		Inpatient		Independent		Other
				Outpatient		Living		Nursing		Rehab		Living		Inpatient				% of
				Facilities		Facilities		Facilities		Facilities		Facilities		Facilities		Total		Total
Master Leases
	1	Alabama		$	29,803	$	4,457			$	17,722					$	51,982		2.6	%
	2	Arizona			5,253												5,253		0.3	%
	3	Arkansas			3,055												3,055		0.2	%
	4	California			9,409										$ 12,688		22,097		1.1	%
	5	Florida			89,269		17,077				11,703						118,049		5.9	%
	6	Georgia			14,385		6,025										20,410		1.0	%
	7	Illinois			13,425												13,425		0.7	%
	8	Indiana			21,597			$	3,790						43,406		68,793		3.4	%
	9	Massachusetts			12,034												12,034		0.6	%
	10	Michigan							24,261						13,859		38,120		1.9	%
	11	Mississippi					3,569										3,569		0.2	%
	12	Missouri			21,078		6,250		11,139								38,467		1.9	%
	13	Nevada			3,801												3,801		0.2	%
	14	North Carolina					3,982										3,982		0.2	%
	15	Ohio					4,612										4,612		0.2	%
	16	Oklahoma							13,038								13,038		0.6	%
	17	Pennsylvania					32,179		21,765		113,867						167,811		8.4	%
	18	South Carolina							27,536								27,536		1.4	%
	19	Tennessee			7,963		3,967		6,499				$ 20,000				38,429		1.9	%
	20	Texas			41,418		28,895				13,203		44,123		6,023		133,662		6.7	%
	21	Virginia			74,585		17,675		37,234								129,494		6.3	%
		Total Master Leases		$	347,075	$	128,688	$	145,262	$	156,495		$ 64,123		$ 75,976	$	917,619		45.7	%
				Same facility NOI growth for Master Leases (3Q2006 vs. 3Q2005): 2.5%
Operating Properties
	1	Arizona	$		27,122											$	27,122		1.3	%
	2	California			97,977												97,977		4.9	%
	3	District of Columbia			29,756												29,756		1.5	%
	4	Florida			108,719												108,719		5.4	%
	5	Hawaii			30,419												30,419		1.5	%
	6	Illinois			19,579												19,579		1.0	%
	7	Kansas			12,166												12,166		0.6	%
	8	Louisiana			11,685												11,685		0.6	%
	9	Maryland			14,809												14,809		0.7	%
	10	Michigan			21,505												21,505		1.1	%
	11	Mississippi			10,163												10,163		0.5	%
	12	Missouri			19,512												19,512		1.0	%
	13	Nevada			53,638												53,638		2.7	%
	14	Pennsylvania			13,621												13,621		0.7	%
	15	Tennessee			156,494												156,494		7.8	%
	16	Texas			335,091												335,091		16.6	%
	17	Wyoming			19,603												19,603		1.0	%
		Total Oper. Properties	$		981,859	$	—	$	—	$	—	$	—	$	—	$	981,859		48.9	%
				Same facility NOI growth for Operating Properties (3Q2006 vs. 3Q2005): 3.1%
		Corporate Property															14,135		0.6	%
		Total Equity Investments		$	1,328,934	$	128,688	$	145,262	$	156,495	$	64,123	$	75,976	$	1,913,613		95.2	%
Wtd Avg Depreciable Life (yrs) as of 12/31/05:					34.4		32.8		33.3		34.8		33.1		34.6		34.3
Wtd Avg Period Held (yrs) as of 12/31/05:					7.8		6.2		6.7		7.2		4.4		8.6		6.6

Mortgages
	1	Arizona				$	4,471														$	4,471		0.2	%
	2	California	$	14,920			4,658															19,578		1.0	%
	3	Georgia					4,750															4,750		0.2	%
	4	Indiana													$	6,000						6,000		0.3	%
	5	Michigan								3,927												3,927		0.2	%
	6	Oregon					2,525															2,525		0.1	%
	7	Texas		1,984																		1,984		0.1	%
	8	Washington					32,227															32,227		1.7	%
		Total Mtg. Investments	$	16,904		$	48,631		$	3,927		$	—		$	6,000		$	—		$	75,462		3.8	%
			Same facility NOI growth for Mortgages (3Q2006 vs. 3Q2005): 1.9%
Unconsolidated LLCs
	1	Oregon	$	2,321																	$	2,321		0.1	%
	2	Utah				$	6,627															6,627		0.3	%
	3	Washington		11,200																		11,200		0.6	%
		Total LLC Investments	$	13,521		$	6,627		$	—		$	—		$	—		$	—		$	20,148		1.0	%
		Total Investments	$	1,359,359		$	183,946		$	149,189		$	156,495		$	70,123		$	75,976		$	2,009,223		100.0	%
		Percent of $ Invested		68.2	%		9.2	%		7.5	%		7.8	%		3.5	%		3.8	%		100.0	%
		Number of Investments		164			33			30			9			8			4			248

Healthcare Realty Trust	Page 7 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

7) SQUARE FEET OWNED AND/OR MANAGED (1)

A) By Geographic Location

	Number of Properties						Owned						Third Party
			Third				Not		Construction				Property
	Owned		Party		Total		Managed		In Progress		Managed		Management		Total		Percent
1 Texas		52				52		832,454		380,200		2,300,789				3,513,443		26.5	%
2 Tennessee		23		5		28		536,799				1,259,148		247,723		2,043,670		15.5	%
3 Florida		29				29		751,233				567,103				1,318,336		10.0	%
4 Virginia		24		1		25		997,007						111,998		1,109,005		8.4	%
5 Pennsylvania		18				18		722,053				63,914				785,967		6.0	%
6 Michigan		12				12		364,635				199,749				564,384		4.3	%
7 California		11				11		97,913				458,465				556,378		4.2	%
8 Alabama		7				7		355,430								355,430		2.7	%
9 Hawaii		3				3				144,000		138,479				282,479		2.1	%
10 Missouri		10				10		172,412				106,146				278,558		2.1	%
11 Arizona		7		1		8		44,230				161,300		59,106		264,636		2.0	%
12 Illinois		3				3		115,100				142,955				258,055		2.0	%
13 Nevada		3				3		16,878				225,456				242,334		1.8	%
14 Indiana		3				3		205,499								205,499		1.6	%
15 South Carolina		4				4		187,958								187,958		1.4	%
16 District of Columbia		2				2						182,836				182,836		1.4	%
17 Mississippi		3		1		4		25,000				94,987		40,192		160,179		1.2	%
18 Wyoming		1				1						139,647				139,647		1.1	%
19 Georgia		5				5		139,245								139,245		1.1	%
20 Oklahoma		5				5		139,216								139,216		1.1	%
21 Louisiana		2				2						133,211				133,211		1.0	%
22 Maryland		2				2						94,664				94,664		0.7	%
23 Massachusetts		2				2		84,242								84,242		0.6	%
24 Kansas		1				1						70,908				70,908		0.5	%
25 North Carolina		1				1		33,181								33,181		0.3	%
26 Ohio		1				1		33,181								33,181		0.3	%
27 Arkansas		1				1		11,963								11,963		0.1	%
Total Properties / Square Feet		235		8		243		5,865,629		524,200		6,339,757		459,019		13,188,605		100.0	%

B) By Facility Type

	Owned												Third Party
	Not			Construction						Total			Property									No.
	Managed			In Progress			Managed			Owned			Management			Total			Percent			of Beds
Medical Office/Outpatient Facilities		2,302,185			524,200			6,339,757			9,166,142			459,019			9,625,161			73.0	%		n/a
Skilled Nursing Facilities		973,446									973,446						973,446			7.4	%		2,215
Assisted Living Facilities		886,982									886,982						886,982			6.7	%		3,260
Independent Living Facilities		725,767									725,767						725,767			5.5	%		757
Inpatient Rehab Hospitals		643,383									643,383						643,383			4.9	%		940
Other Inpatient Facilities		333,866									333,866						333,866			2.5	%		416
Total Square Feet		5,865,629			524,200			6,339,757			12,729,586			459,019			13,188,605			100.0	%		7,588
Percent of Total Square Footage		44.5	%		4.0	%		48.0	%		96.5	%		3.5	%		100.0	%
Total Number of Properties		136			4			95			235			8			243

(1) Mortgage and LLC investments not included.

Healthcare Realty Trust	Page 8 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

8) SQUARE FOOTAGE BY OWNERSHIP TYPE (1)

     A)Occupants Greater Than 1% (2)

		Medical		Inpatient Facilities
		Office/		Assisted		Skilled		Inpatient		Independent			Other
		Outpatient		Living		Nursing		Rehab		Living			Inpatient				% of Total
		Facilities		Facilities		Facilities		Facilities		Facilities			Facilities		Total		Square Feet (3)
1	Healthsouth		105,176						643,383							748,559		5.9	%
2	Baylor Health Systems		568,072													568,072		4.5	%
3	Emeritus Corporation				502,119											502,119		3.9	%
4	HCA		421,282													421,282		3.3	%
5	Cordia Enterprises										417,025					417,025		3.3	%
6	Senior Lifestyles										308,742					308,742		2.4	%
7	Epic Healthcare						269,967									269,967		2.1	%
8	OrthoIndy		58,474											117,525		175,999		1.4	%
9	Formation Capital						151,172									151,172		1.2	%
10	Ascension Nashville		150,612													150,612		1.2	%
11	Melbourne Internal Medicine Assocs		140,125													140,125		1.1	%
	All Other Occupants:		7,722,401		471,327		465,843		82,384		(82,384	)		216,341		8,875,912		69.7	%
	Total		9,166,142		973,446		886,982		725,767		643,383			333,866		12,729,586		100.0	%

(1)	Mortgage and LLC investments not included.
(2)	Medical Office/Outpatient Facilities consist of approximately 2,465 occupants with an average square footage of approximately 3,719 feet per each, while Inpatient Facilities consists of 19 occupants with an average square footage of approximately 188,000 feet per each.
(3)	Based on Total Square Footage of Owned Properties.

9) LEASE/MORTGAGE MATURITY SCHEDULE

     A)Leases

										Weighted
			Number of							Average
			Operating		Estimated		Percent of			Remaining
	Number of		Property		Annualized		Annualized			Lease
	Master Leases		Leases		Net Revenue		Net Revenue			Term (Years)
2006		1		122	$	10,210		4.9	%		0.00
2007		10		278		21,069		10.1	%		0.06
2008		14		197		23,542		11.3	%		0.24
2009		18		279		34,927		16.8	%		0.38
2010		11		124		16,316		7.8	%		0.32
2011		9		80		17,221		8.3	%		0.42
2012		4		25		6,787		3.3	%		0.18
2013		24		31		22,263		10.7	%		0.92
2014		4		28		7,375		3.5	%		0.17
2015		8		19		10,031		4.8	%		0.35
After 2015		26		22		38,369		18.5	%		3.22
Total		129		1,205	$	208,110		100.0	%		6.26
Number of Properties Represented: 231

B)Mortgages

								Weighted
								Average
			Estimated		Percent of			Remaining
	Number of		Annualized		Annualized			Mortgage
	Mortgages		Net Revenue		Net Revenue			Term (Years)
2006		2	$	756		9.6	%		0.01
2007		1		548		7.0	%		0.02
2008		3		3,827		48.7	%		0.79
2009		2		1,329		16.9	%		0.35
2010		0		—		0.0	%		0.00
2011		0		—		0.0	%		0.00
2012		0		—		0.0	%		0.00
2013		0		—		0.0	%		0.00
2014		0		—		0.0	%		0.00
2015		0		—		0.0	%		0.00
After 2015		2		1,403		17.8	%		2.55
Total		10	$	7,863		100.0	%		3.72

Healthcare Realty Trust	Page 9 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

10) CONSTRUCTION IN PROGRESS — AS OF SEPTEMBER 30, 2006

	Estimated
	Substantial				Investment		Remaining		Total
Operator	Completion Date		Properties		Balance		Commitment		Real Estate (1)
Baylor North Garland MOB		2Q 2007		1	$	1,608	$	10,220	$	11,828
Baylor Downtown MOB		2Q 2007		1		13,145		17,159		30,304
Baylor All Saints MOB		3Q 2007		1		2,784		17,941		20,725
Hawaii MOB (1)		4Q 2008		1		7,564		62,436		70,000
				4	$	25,101	$	107,756	$	132,857
Percentage of construction in progress to total investment portfolio:										1.25	%

(1)	In 2004, the Company acquired land in Honolulu. The site is currently under preparation, and the building is in the design phase.
(2)	During the three and nine months ended September 30, 2006, the Company capitalized interest in the amount of $0.2 million and $0.9 million, respectively.

11) DIVIDEND HISTORY (dollars not rounded to thousands)

A) Common Stock

				Change
				From Prior
Operating Period	Payment Date	Amount		Quarter		Annualized
First Quarter 2001	June 7, 2001	$	0.575	$	0.005	$	2.30
Second Quarter 2001	Sept. 6, 2001		0.580		0.005		2.32
Third Quarter 2001	Dec. 6, 2001		0.585		0.005		2.34
Fourth Quarter 2001	Mar. 6, 2002		0.590		0.005		2.36
First Quarter 2002	June 6, 2002		0.595		0.005		2.38
Second Quarter 2002	Sept. 5, 2002		0.600		0.005		2.40
Third Quarter 2002	Dec. 5, 2002		0.605		0.005		2.42
Fourth Quarter 2002	Mar. 6, 2003		0.610		0.005		2.44
First Quarter 2003	June 5, 2003		0.615		0.005		2.46
Second Quarter 2003	Sept. 4, 2003		0.620		0.005		2.48
Third Quarter 2003	Dec. 4, 2003		0.625		0.005		2.50
Fourth Quarter 2003	Mar. 4, 2004		0.630		0.005		2.52
First Quarter 2004	June 3, 2004		0.635		0.005		2.54
Second Quarter 2004	Sept. 2, 2004		0.640		0.005		2.56
Third Quarter 2004	Dec. 2, 2004		0.645		0.005		2.58
Fourth Quarter 2004	Mar. 3, 2005		0.650		0.005		2.60
First Quarter 2005	June 2, 2005		0.655		0.005		2.62
Second Quarter 2005	Sept. 1, 2005		0.660		0.005		2.64
Third Quarter 2005	Dec. 2, 2005		0.660		0.000		2.64
Fourth Quarter 2005	Mar. 2, 2006		0.660		0.000		2.64
First Quarter 2006	June 1, 2006		0.660		0.000		2.64
Second Quarter 2006	Sept. 1, 2006		0.660		0.000		2.64
Third Quarter 2006	Dec. 1, 2006		0.660		0.000		2.64

B) Information Regarding Taxable Status of 2005 Cash Distributions on HR Common Shares

	Cash		Taxable				Total
	Distribution		Ordinary		Return of		Capital
	Per Share		Dividend		Capital		Gain
2005	$	2.6250000	$	1.7684479	$	0.7402763	$	0.1162758

Healthcare Realty Trust	Page 10 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

12) LONG-TERM DEBT INFORMATION — As of September 30, 2006

A) Breakdown Between Fixed and Variable Rate Debt:

	Balance		Effective Rate
Fixed Rate Debt:
Senior Notes due 2011, net	$	301,134	7.896%	See Note (C)
Senior Notes due 2014, net		298,805	5.190%	See Note (D)
Mortgage Notes Payable		60,913	Range from 5.49% to 8.00%	See Note (E)
		660,852
Variable Rate Debt:
Unsecured Credit Facility due 2009		160,000	0.90% over LIBOR	See Note (F)
		160,000
Total	$	820,852

B) Future Maturities:

																2011
	2006			2007			2008			2009			2010			and After		Total
Fixed Rate Debt:
Senior Notes due 2011, net	$	52		$	219		$	236		$	255		$	276		$	300,096	$	301,134
Senior Notes due 2014, net		(33	)		(138	)		(145	)		(153	)		(161	)		299,435		298,805
Mortgage Notes Payable		852			3,565			3,831			4,122			4,434			44,109		60,913
Variable Rate Debt:
Unsecured Credit Facility due 2009		—			—			—			160,000			—			—		160,000
	$	871		$	3,646		$	3,922		$	164,224		$	4,549		$	643,640	$	820,852

C)	In May 2001, the Company sold $300 million principal amount of unsecured Senior Notes due May 2011. The notes were issued at a discount, which yielded an 8.202% interest rate. Also in 2001, the Company entered into interest rate swaps (“swaps”) for $125 million to offset changes in the fair value of $125 million of the notes. The Company re-couponed the swaps in 2003 and terminated the swaps in June 2006, resulting in a net premium of $1.2 million, which will be amortized against interest expense through the remaining term of the notes.
D)	In March 2004, the Company sold at a discount $300 million principal amount of 5.125% unsecured Senior Notes due April 2014. The notes were priced to yield 5.19%.
E)	In April 2001, the Company entered into eight Mortgage Notes Payable with an aggregate principal balance of $35 million related to collateral with a book value at March 31, 2001 of $78.2 million. These Mortgage Notes Payable and related collateral are held by special purpose entities whose sole members are solely owned subsidiaries of HR. These Mortgage Notes Payable bear interest at 7.22%, are payable in monthly installments of principal and interest and mature in May 2011. In April 2006, the Company repaid three of these mortgages totaling $6.0 million. Related to its second quarter 2005 acquisitions, the Company concurrently entered into or assumed mortgage notes of $9.2 million with contractual interest rates ranging from 5.55% to 8.00%. In December 2005, the Company entered into a $15.1 million Mortgage Note Payable bearing interest of 5.49%.
F)	Effective January 25, 2006, the Company entered into a three-year $400 million senior unsecured revolving credit facility. The facility may be increased to $650 million at any time during the first two years of the facility term, at the Company’s request, subject to the availability of additional capital commitments, and may be extended for one year. The new facility currently bears interest at LIBOR rates plus 0.90% payable quarterly and matures in January 2009. In addition, the Company pays a facility fee, currently 0.20%, on the commitment and is subject to other terms and conditions customary for such transactions.
G)	Credit Rating:
	Moody’s Investors Service has assigned a “Baa3” credit rating to the Company’s Senior Notes due 2011 and 2014.
	Standard & Poor’s has assigned a “BBB-” credit rating to the Company’s Senior Notes due 2011 and 2014.
	Fitch Ratings has assigned a “BBB” credit rating to the Company’s Senior Notes due 2011 and 2014.

Healthcare Realty Trust	Page 11 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

13)	COMMON SHARES INFORMATION
	The share amounts below set forth the computation of basic and diluted shares (in accordance with FASB Statement No. 128) which will be used as the denominator in the computation of EPS and FFO per share amounts:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
Total Common shares Outstanding		47,816,079			47,757,000			47,816,079			47,757,000
Weighted Average Common shares Outstanding		47,812,395			47,758,528			47,801,686			47,742,312
Weighted Average Actual Restricted Stock shares		(1,267,110	)		(1,274,118	)		(1,278,747	)		(1,284,934	)
Denominator shares for Basic Common Share EPS and FFO		46,545,285			46,484,410			46,522,939			46,457,378
Dilutive effect of restricted stock shares		912,699			909,071			910,976			891,934
Dilutive effect of employee stock purchase plan		33,401			50,223			39,823			50,071
Denominator shares for Diluted Common Share EPS and FFO		47,491,385			47,443,704			47,473,738			47,399,383

Note 1: As of September 30, 2006, HR had approximately 1,778 shareholders of record.

14) BENEFICIAL SECURITY OWNERSHIP BY MANAGEMENT AND DIRECTORS AS OF SEPTEMBER 30, 2006

Officers	Owned			Restricted (1)		Total
David R. Emery		185,872	(2)		773,757		959,629
Scott W. Holmes		2,310			23,403		25,713
J. D. Carter Steele		3,723			23,155		26,878
John M. Bryant, Jr.		854			10,202		11,056
Other Officers as a group		35,948			401,652		437,600
Directors as a group		51,434			25,050		76,484
Total		280,141			1,257,219		1,537,360

(1)	These shares are subject to long-term vesting requirements pursuant to the terms of the 1993 Employees Stock Incentive Plan, the 2003 Employees Restricted Stock Incentive Plan and the HR Discretionary Bonus Program.
(2)	Includes 143,352 shares owned by the Emery Family Limited Partnership and 1,448 shares owned by the Emery Family 1993 Irrevocable Trust. Mr. Emery is a limited partner of the partnership and a beneficiary of the trust, but has no voting or investment power with respect to the shares owned by such partnership or trust.

15) INSTITUTIONAL HOLDINGS AS OF JUNE 30, 2006

A	)	Institutional shares Held:	29,938,395		(Source: Form 13F Filings)
B	)	Number of Institutions:	213
C	)	Percentage of Common shares Outstanding:	62.62	%

16) BOOK VALUE PER COMMON SHARE

Total Stockholders’ Equity	$	852,845
Total Common shares Outstanding		47,816,079
Book Value Per Common Share	$	17.84

Healthcare Realty Trust	Page 12 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

17) OTHER CORPORATE INFORMATION

A) Corporate Headquarters:

Healthcare Realty Trust Incorporated
Healthcare Realty Services Incorporated
3310 West End Avenue, Suite 700
Nashville, TN 37203
Phone: (615) 269-8175
Fax: (615) 269-8461
E-mail: communications@healthcarerealty.com

     Other Offices:

Central Regional Office — Arizona
Eastern Regional Office — Tennessee
Southwestern Regional Office — Texas
Western Regional Office — California

B) Stock Exchange, Symbol and CUSIP Number:

Security Description	Stock Exchange	Symbol	CUSIP Number
Common Stock	New York Stock Exchange	HR		421946104
Senior Notes due 2011	OTC	HR		421946AE4
Senior Notes due 2014	OTC	HR		421946AF1

C)	Web Site:www.healthcarerealty.com
D)	Corporate Officers:

Healthcare Realty Trust Incorporated
David R. Emery, Chairman of the Board and Chief Executive Officer
John M. Bryant, Jr., Senior Vice President and General Counsel
Scott W. Holmes, Senior Vice President and Chief Financial Officer
J. D. Carter Steele, Senior Vice President and Chief Operating Officer
Fredrick M. Langreck, Senior Vice President / Treasurer
B. Douglas Whitman, Senior Vice President / Real Estate Investments
James M. Albright, Vice President / Asset Management
Stephen E. Cox, Jr., Vice President / Assistant General Counsel
James C. Douglas, Vice President / Asset Administration
Angela R. Hoke, Vice President and Chief Accounting Officer
Leigh Ann Stach, Vice President / Financial Reporting
Roger O. West, Vice President / Special Counsel
William R. Davis, Associate Vice President / Information Technology
Toni L. Ewing, Associate Vice President / Asset Administration
Robert E. Hull, Associate Vice President / Asset Administration
Matthew J. Lederer, Associate Vice President / Real Estate Investments
Bethany A. Mancini, Associate Vice President / Corporate Communications
Todd J. Meredith, Associate Vice President / Real Estate Investments
Rebecca T. Oberlander, Associate Vice President / Human Resources
Amy M. Poley, Associate Vice President / Real Estate Investments
Timothy H. Staggs, Associate Vice President / Corporate Compliance
Kimberly R. Sullivan, Associate Vice President / Asset Administration
Rita H. Todd, Corporate Secretary

Healthcare Realty Services Incorporated
J. D. Carter Steele, President
Anne C. Barbour, Vice President / National Asset Manager
Gilbert T. Irvin, Vice President / Operations
Julie A. Wilson, Vice President / National Asset Manager
Amy A. Byrd, Associate Vice President / National Asset Manager
Revell M. Lester, Associate Vice President / Project Development Services
Steve L. Standifer, Associate Vice President / Real Estate Investments

E) Board of Directors:

David R. Emery, Chairman of the Board and Chief Executive Officer, Healthcare Realty Trust Incorporated
Errol L. Biggs, Ph.D., Director — Center for Health Administration, University of Colorado (Healthcare Academician)
C. Raymond Fernandez, M.D., Chief Executive Officer and Chief Medical Officer, Piedmont Clinic (Physician)
Batey M. Gresham, Jr., A.I.A., Founder, Gresham Smith & Partners (Healthcare Architect)
Marliese E. Mooney (Hospital Operations Consultant)
Edwin B. Morris III, Managing Director, Morris & Morse (Real Estate Finance Executive)
J. Knox Singleton, Chief Executive Officer, INOVA Health Systems (Healthcare Provider Executive)
Bruce D. Sullivan, retired audit partner, Ernst & Young LLP (Accounting and Financial Reporting Executive)
Dan S. Wilford, retired President and Chief Executive Officer, Memorial Hermann Healthcare System (Healthcare Provider Executive)

Healthcare Realty Trust	Page 13 of 14
Supplemental Data Report
Three Months Ended September 30, 2006

17) OTHER CORPORATE INFORMATION (cont.)

F) Professional Affiliations:

Independent Public Auditors
BDO Seidman, LLP
Clark Tower
5100 Poplar Avenue, Suite 2600
Memphis, TN 38137-2601

Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Phone: (781) 575-3400

G) Direct Deposit of Dividends:

Direct deposit of dividends is offered as a convenience to stockholders of record. For information, write Computershare, Shareholder Services, P.O. Box 43010, Providence, RI 02940-3010, or call (781) 575-3400.

H) Analysts Providing Research Coverage on HR:

A.G. Edwards & Sons, Inc.	John Sheehan (314) 955-5834
BMO Capital Markets-US	Richard Anderson (212) 885-4180
Friedman, Billings, Ramsey & Co.	Paul Morgan (415) 874-3412
Ryan Beck & Co.	Robert Mains (201) 748-4965
Stifel Nicolaus & Co., Inc.	Jerry Doctrow (410) 454-5142
Wachovia Securities	Stephen Swett (212) 909-0954

I) Investor Relations:

Healthcare Realty Trust Incorporated
3310 West End Avenue, Suite 700
Nashville, TN 37203
Attention: Gabrielle M. Andres
Phone: (615) 269-8471
Fax: (615) 269-8461
E-mail: GAndres@healthcarerealty.com

In addition to the historical information contained within, this enclosed information may contain forward-looking statements that involve risks and uncertainties, including the development of transactions that may materially differ from the results of these projections. These risks are discussed in a 10-K filed with the SEC by Healthcare Realty Trust for the year ended December 31, 2005. Forward-looking statements represent the Company’s judgment as of the date of the release of this information. The Company disclaims any obligation to update this forward-looking material.

Healthcare Realty Trust	Page 14 of 14
Supplemental Data Report
Three Months Ended September 30, 2006