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

Exhibit 99.1

News Release

Contact: Scott W. Holmes, Senior Vice President and Chief Financial Officer, (615) 269-8175

HEALTHCARE REALTY TRUST ANNOUNCES THIRD QUARTER RESULTS

     NASHVILLE, Tennessee November 5, 2007 — Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the third quarter that ended September 30, 2007. Revenues for the third quarter totaled $53.5 million, compared with the prior year’s $54.3 million. Net income for the third quarter was $5.5 million, or $0.12 per diluted common share, versus $8.1 million, or $0.17 per diluted common share, for the third quarter of 2006, which was prior to the sale of the Company’s senior living portfolio. Net income for the third quarter of 2007 included a gain of $3.6 million related to the disposition of two senior living properties and a non-cash impairment charge totaling $4.1 million related to the sale of a facility.

     Funds from operations (“FFO”), calculated according to the definition of the National Association of Real Estate Investment Trusts (“NAREIT”) and comprised primarily of net income and depreciation from real estate, but not adjusted for certain non-cash income and expense items, totaled $14.6 million compared with $23.8 million for the same period in 2006. FFO per diluted common share totaled $0.31 for the third quarter of 2007 compared with $0.50 for the third quarter of 2006, which was prior to the sale of the Company’s senior living portfolio. Before the $4.1 million non-cash impairment charge, FFO per diluted common share for the three months ended September 30, 2007 would have been $0.39. Funds available for distribution (“FAD”) for the third quarter of 2007 was $0.42 per diluted common share.

     Revenues for the nine months ended September 30, 2007 totaled $158.3 million compared with the prior year’s $159.4 million. Net income for the nine-month period was $55.5 million, or $1.17 per diluted common share, versus $32.1 million, or $0.68 per diluted common share, for the first nine months of 2006. Net income for the nine-month period of 2007 included a gain of $41.5 million largely related to the disposition of 53 senior living properties and related expenses. FFO totaled $53.7 million for the nine months ended September 30, 2007, compared with $76.3 million for the same period in 2006. FFO, per diluted common share, for the first nine months of 2007 was $1.13, versus $1.61 for the same period in 2006.

     Healthcare Realty Trust is a real estate investment trust that integrates owning, managing and developing income-producing real estate properties associated with the delivery of healthcare services throughout the United States. The Company had investments of approximately $1.7 billion in 177 real estate properties and mortgages as of September 30, 2007, excluding assets classified as held for sale and including investments in three unconsolidated limited liability companies. The Company’s 172 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 24 states, totaling approximately 10.6 million square feet. The Company provides property management services to approximately 7.1 million square feet nationwide.

The Company directs interested parties to its Internet page 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 a 10-Q filed with the SEC by Healthcare Realty Trust for the quarter ended September 30, 2007 and in a 10-K filed with the SEC by Healthcare Realty Trust for the year ended December 31, 2006. 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)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
REVENUES
Master lease rent	$	15,298		$	15,137		$	46,293		$	42,796
Property operating		32,356			30,934			95,488			92,750
Straight-line rent		639			541			734			2,319
Mortgage interest		353			1,402			1,057			4,738
Other operating		4,853			6,274			14,743			16,837
		53,499			54,288			158,315			159,440
EXPENSES
General and administrative		4,335			4,234			15,730			12,994
Property operating		19,271			17,040			55,106			51,633
Other operating		0			0			0			171
Impairments		0			2,311			0			2,311
Bad debt		53			184			136			856
Interest		12,611			13,886			38,383			39,203
Depreciation		11,400			10,273			33,243			30,351
Amortization		1,007			2,464			3,626			8,024
		48,677			50,392			146,224			145,543
INCOME FROM CONTINUING OPERATIONS		4,822			3,896			12,091			13,897
DISCONTINUED OPERATIONS
Income from discontinued operations		1,134			5,740			8,773			16,465
Impairments (2)		(4,057	)		(1,573	)		(6,849	)		(1,573	)
Gain on sales of real estate properties, net		3,587			0			41,459			3,275
INCOME FROM DISCONTINUED OPERATIONS		664			4,167			43,383			18,167
NET INCOME	$	5,486		$	8,063		$	55,474		$	32,064
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations per common share	$	0.10		$	0.08		$	0.26		$	0.30
Discontinued operations per common share	$	0.02		$	0.09		$	0.93		$	0.39
Net income per common share	$	0.12		$	0.17		$	1.19		$	0.69
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations per common share	$	0.10		$	0.08		$	0.25		$	0.29
Discontinued operations per common share	$	0.02		$	0.09		$	0.92		$	0.39
Net income per common share	$	0.12		$	0.17		$	1.17		$	0.68
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — BASIC		46,683,619			46,545,285			46,680,455			46,522,939
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — DILUTED		47,601,330			47,491,385			47,596,154			47,473,738

(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.
(2)	The impairment charge for the three months ended September 30, 2007 related to one property sold during the quarter and the impairment charges for the nine months ended September 30, 2007 related to the property sold during the third quarter and four other real estate assets classified as held for sale during the first quarter of 2007.

2

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

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
Cash flows from operating activities:
Net income	$	5,486		$	8,063		$	55,474		$	32,064
Non-cash items:
Depreciation and amortization - real estate		12,348			15,726			38,619			47,474
Depreciation and amortization - other		548			284			1,673			368
Provision for bad debt		33			184			115			1,251
Impairments		4,057			3,884			6,849			3,884
Increase in straight-line rent receivable		(640	)		(478	)		(735	)		(1,643	)
Increase in straight-line rent liability		174			0			1,269			0
Equity (income) loss from unconsolidated LLCs		(193	)		86			59			160
Consolidated (income) loss from variable interest entities		282			(36	)		676			824
Stock-based compensation		1,015			942			3,681			3,059
Provision for deferred post-retirement benefits		506			528			1,544			1,585
Other non-cash items		30			(133	)		108			(3	)
Total non-cash items		18,160			20,987			53,858			56,959
Other items:
Increase (decrease) in accounts payable and accrued liabilities		3,531			11,793			(3,287	)		6,846
Increase (decrease) in other liabilities		(2,505	)		(2,976	)		1,099			(2,056	)
(Increase) decrease in other assets		478			2,812			(1,732	)		1,183
Gain on sales of real estate, net		(3,588	)		0			(41,459	)		(3,275	)
Total other items		(2,084	)		11,629			(45,379	)		2,698
Net cash provided by operating activities		21,562			40,679			63,953			91,721
Cash flows from investing activities:
Acquisition and development of real estate properties		(68,845	)		(27,163	)		(106,808	)		(107,542	)
Funding of mortgages and notes receivable		51			(908	)		(4,020	)		(21,479	)
Investments in unconsolidated LLCs		0			(441	)		0			(10,314	)
Distributions from unconsolidated LLCs		603			302			1,127			726
Proceeds from sales of real estate		15,642			3,876			297,341			33,020
Proceeds from mortgages and notes receivable repayments		26			28,623			65,545			68,980
Net cash provided by (used in) investing activities		(52,523	)		4,289			253,185			(36,609	)
Cash flows from financing activities:
Borrowings on notes and bonds payable		99,001			63,000			403,840			310,000
Repayments on notes and bonds payable		(102,895	)		(76,834	)		(468,556	)		(262,196	)
Dividends paid		(18,458	)		(31,564	)		(308,780	)		(94,656	)
Proceeds from issuance of common stock		68,791			98			70,558			391
Interest rate swap termination		0			0			0			(10,127	)
Common stock redemption		0			0			(30	)		(481	)
Debt issuance costs		0			0			0			(1,333	)
Net cash provided by (used in) financing activities		46,439			(45,300	)		(302,968	)		(58,402	)
Increase (decrease) in cash and cash equivalents		15,478			(332	)		14,170			(3,290	)
Cash and cash equivalents, beginning of period		642			4,079			1,950			7,037
Cash and cash equivalents, end of period	$	16,120		$	3,747		$	16,120		$	3,747

3

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

	For the Three Months					For the Nine Months
	Ended September 30,					Ended September 30,
	2007			2006		2007			2006
Net Income	$	5,486		$	8,063	$	55,474		$	32,064
Gain on sales of real estate properties, net		(3,587	)		0		(41,459	)		(3,275	)
Real estate depreciation and amortization		12,664			15,726		39,734			47,474
Total adjustments		9,077			15,726		(1,725	)		44,199
Funds From Operations — Basic and Diluted	$	14,563		$	23,789	$	53,749		$	76,263
Funds From Operations Per Common Share — Basic	$	0.31		$	0.51	$	1.15		$	1.64
Funds From Operations Per Common Share — Diluted	$	0.31		$	0.50	$	1.13		$	1.61
Weighted Average Common Shares Outstanding — Basic		46,683,619			46,545,285		46,680,455			46,522,939
Weighted Average Common Shares Outstanding — Diluted		47,601,330			47,491,385		47,596,154			47,473,738

RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (1):
(Dollars in thousands, except per share data)
(Unaudited)

	For the Three
	Months Ended
	September 30, 2007
Net Income	$	5,486
Less: Gain on sales of real estate, net		(3,587	)
Plus: Total non-cash items included in cash flows from operating activities (2)		18,160
Funds Available For Distribution	$	20,059
Funds Available For Distribution Per Common Share — Diluted	$	0.42
Weighted Average Common Shares Outstanding — Diluted		47,601,330

(1)

Funds From Operations (“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.

(2)

See Condensed Consolidated Statements of Cash Flows.

4