Exhibit 99.2
SUPPLEMENTAL INFORMATION
Three Months Ended December 31, 2008
Dollars in thousands, except per share data, unless otherwise disclosed
Furnished as of February 23, 2009
(Unaudited)
Copies of this report may be obtained at www.healthcarerealty.com or by contacting Gabrielle M. Andrés at 615.269.8471 or gandres@healthcarerealty.com
In addition to the historical information contained within, the matters discussed in this report may contain forward-looking statements that involve estimates, assumptions, 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 may be 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 report. The Company disclaims any obligation to update these estimates, assumptions and other forward-looking material.
| | |
| | |
Healthcare Realty Trust Incorporated | | |
Supplemental Information | | |
Three Months Ended December 31, 2008 | | Page 1 of 9 |
TABLE OF CONTENTS
| | | | |
Schedule 1 - Corporate Information | | | 3 | |
| | | | |
Schedule 2 - Consolidated Balance Sheets | | | 4 | |
| | | | |
Schedule 3 - Investment Progression | | | 5 | |
| | | | |
Schedule 4 - Investment by Type and Geographic Location | | | 6 | |
| | | | |
Schedule 5 - Development Properties | | | 7 | |
| | | | |
Schedule 6 - Square Feet Owned and/or Managed | | | 8 | |
| | | | |
Schedule 7 - Lease Maturity Schedule | | | 9 | |
| | | | |
Schedule 8 - Unconsolidated Joint Ventures | | | 9 | |
| | |
| | |
Healthcare Realty Trust Incorporated | | |
Supplemental Information | | |
Three Months Ended December 31, 2008 | | Page 2 of 9 |
(1) | | 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
| B) | | Stock Exchange, Symbol and CUSIP Number: |
| | | | | | | | | | | | |
Security Description | | Stock Exchange | | Symbol | | CUSIP Number |
|
Common Stock | | NYSE | | HR | | | 421946104 | |
Senior Notes due 2011 | | OTC | | HR | | | 421946AE4 | |
Senior Notes due 2014 | | OTC | | HR | | | 421946AF1 | |
| C) | | Web Site:www.healthcarerealty.com |
|
| D) | | Executive Officers: |
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
B. Douglas Whitman, II, Executive Vice President and Chief Operating Officer
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., Retired Chief Executive Officer, Piedmont Clinic
Batey M. Gresham, Jr., A.I.A., Founder, Gresham Smith & Partners
Marliese E. Mooney, Independent Healthcare Consultant
Edwin B. Morris III, Managing Director, Morris & Morse Company Inc.
J. Knox Singleton, President and Chief Executive Officer, Inova Health Systems
Bruce D. Sullivan, Retired Audit Partner, Ernst & Young LLP
Dan S. Wilford, Retired President and Chief Executive Officer, Memorial Hermann Healthcare System
| F) | | Professional Affiliations: |
Independent Registered Public Accounting Firm
BDO Seidman, LLP
414 Union Street, Suite 1800
Nashville, TN 37219
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Phone: 1-800-733-5001
| G) | | Dividend Reinvestment Plan: |
Through the Company’s transfer agent, Computershare, named stockholders of record can re-invest dividends in shares at a 5% discount without a service or sales charge. In addition, up to $60,000 of HR common stock may be purchased per calendar year through the transfer agent without a service or sales charge to the shareholder. For information, write Computershare, Investor Services, P.O. Box 43010, Providence, RI 02940-3010, or call 1-800-733-5001. Information may also be obtained at the transfer agent’s website, www.computershare.com.
| H) | | Direct Deposit of Dividends: |
Direct deposit of dividends is offered as a convenience to stockholders of record. For information, write Computershare, Investor Services, P.O. Box 43010, Providence, RI 02940-3010, or call 1-800-733-5001.
Healthcare Realty Trust Incorporated
3310 West End Avenue, Suite 700
Nashville, TN 37203
Attention: Gabrielle M. Andrés
Phone: 615.269.8471
Fax: 615.269.8461
E-mail: gandres@healthcarerealty.com
| | |
| | |
Healthcare Realty Trust Incorporated | | |
Supplemental Information | | |
Three Months Ended December 31, 2008 | | Page 3 of 9 |
(2) | | CONSOLIDATED BALANCE SHEETS |
| | | | | | | | |
| | December 31, | | | December 31, | |
| | 2008 | | | 2007 | |
ASSETS | | | | | | | | |
| | | | | | | | |
Real estate properties: | | | | | | | | |
Land | | $ | 107,555 | | | $ | 102,321 | |
Buildings, improvements, and lease intangibles | | | 1,792,402 | | | | 1,483,547 | |
Personal property | | | 16,985 | | | | 16,305 | |
Construction in progress | | | 84,782 | | | | 94,457 | |
| | | | | | |
| | | 2,001,724 | | | | 1,696,630 | |
Less accumulated depreciation | | | (367,360 | ) | | | (345,457 | ) |
| | | | | | |
Total real estate properties, net | | | 1,634,364 | | | | 1,351,173 | |
| | | | | | | | |
Cash and cash equivalents | | | 4,138 | | | | 8,519 | |
| | | | | | | | |
Mortgage notes receivable | | | 59,001 | | | | 30,117 | |
| | | | | | | | |
Assets held for sale and discontinued operations, net (1) | | | 90,233 | | | | 15,639 | |
| | | | | | | | |
Other assets, net | | | 77,044 | | | | 90,044 | |
| | | | | | |
| | | | | | | | |
Total assets | | $ | 1,864,780 | | | $ | 1,495,492 | |
| | | | | | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Notes and bonds payable | | $ | 940,186 | | | $ | 785,289 | |
| | | | | | | | |
Accounts payable and accrued liabilities | | | 45,937 | | | | 37,376 | |
| | | | | | | | |
Liabilities held for sale and discontinued operations (1) | | | 32,821 | | | | 34 | |
| | | | | | | | |
Other liabilities | | | 51,016 | | | | 40,798 | |
| | | | | | |
|
Total liabilities | | | 1,069,960 | | | | 863,497 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
| | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding | | | — | | | | — | |
| | | | | | | | |
Common stock, $.01 par value; 150,000,000 shares authorized; 59,246,284 and 50,691,331 shares issued and outstanding at December 31, 2008 and December 31, 2007, respectively | | | 592 | | | | 507 | |
| | | | | | | | |
Additional paid-in capital | | | 1,490,535 | | | | 1,286,071 | |
| | | | | | | | |
Accumulated other comprehensive loss | | | (6,461 | ) | | | (4,346 | ) |
| | | | | | | | |
Cumulative net income | | | 736,874 | | | | 695,182 | |
| | | | | | | | |
Cumulative dividends | | | (1,426,720 | ) | | | (1,345,419 | ) |
| | | | | | |
| | | | | | | | |
Total stockholders’ equity | | | 794,820 | | | | 631,995 | |
| | | | | | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,864,780 | | | $ | 1,495,492 | |
| | | | | | |
| | |
(1) | | In accordance with SFAS No. 144, “Accounting for Impairment or Disposal of Long-Lived Assets,” the Company reports real estate properties and related assets and liabilities to be sold as held for sale on the Company’s Consolidated Balance Sheets and includes the results of operations of real estate properties sold or held for sale in discontinued operations on the Company’s Consolidated Statements of Income. |
| | |
| | |
Healthcare Realty Trust Incorporated | | |
Supplemental Information | | |
Three Months Ended December 31, 2008 | | Page 4 of 9 |
(3) | | INVESTMENT PROGRESSION |
| A) | | Construction in Progress |
| | | | | | | | | | | | | | | | |
| | | | | | Three | | | | | | Twelve |
| | Number of | | Months Ended | | Number of | | Months Ended |
| | Properties | | December 31, 2008 | | Properties | | December 31, 2008 |
Balance at beginning of period | | | 7 | | | $ | 100,888 | | | | 10 | | | $ | 94,457 | |
Fundings on projects in existence at the beginning of the period | | | 0 | | | | 27,497 | | | | 0 | | | | 74,085 | |
Completions (1) | | | (2 | ) | | | (35,190 | ) | | | (5 | ) | | | (75,347 | ) |
CIP — Moved to Land Held for Development | | | (1 | ) | | | 0 | | | | (1 | ) | | | 0 | |
Land Held for Development — Disposition | | | 0 | | | | (8,413 | ) | | | 0 | | | | (8,413 | ) |
| | | | |
Balance at end of period | | | 4 | | | $ | 84,782 | | | | 4 | | | $ | 84,782 | |
| | | | |
| B) | | Real Estate Properties |
| | | | | | | | | | | | | | | | |
| | | | | | Three | | | | | | Twelve |
| | Number of | | Months Ended | | Number of | | Months Ended |
| | Properties | | December 31, 2008 | | Properties | | December 31, 2008 |
Balance at beginning of period | | | 166 | | | $ | 1,649,011 | | | | 170 | | | $ | 1,602,173 | |
Acquisitions (2) | | | 24 | | | | 259,043 | | | | 27 | | | | 335,603 | |
Additions/Improvements | | | 0 | | | | 6,927 | | | | 0 | | | | 27,572 | |
Completions (CIP) (1) | | | 2 | | | | 35,190 | | | | 5 | | | | 75,347 | |
Assets classified as held for sale during the period (3) | | | (3 | ) | | | (32,214 | ) | | | (10 | ) | | | (116,808 | ) |
Dispositions (4) | | | (1 | ) | | | (1,015 | ) | | | (4 | ) | | | (6,945 | ) |
| | | | |
Balance at end of period | | | 188 | | | $ | 1,916,942 | | | | 188 | | | $ | 1,916,942 | |
| | | | |
| C) | | Mortgage Notes Receivable |
| | | | | | | | | | | | | | | | |
| | | | | | Three | | | | | | Twelve |
| | Number of | | Months Ended | | Number of | | Months Ended |
| | Investments | | December 31, 2008 | | Investments | | December 31, 2008 |
Balance at beginning of period | | | 3 | | | $ | 40,112 | | | | 4 | | | $ | 30,117 | |
Fundings of new mortgages | | | 1 | | | | 7,996 | | | | 1 | | | | 7,996 | |
Fundings on mortgages in existence at the beginning of the period | | | 0 | | | | 16,455 | | | | 0 | | | | 28,974 | |
Principal reductions | | | 0 | | | | (5,553 | ) | | | 0 | | | | (5,553 | ) |
Repayments in full | | | 0 | | | | 0 | | | | (1 | ) | | | (2,504 | ) |
Scheduled principal payments | | | 0 | | | | (9 | ) | | | 0 | | | | (29 | ) |
| | | | |
Balance at end of period | | | 4 | | | $ | 59,001 | | | | 4 | | | $ | 59,001 | |
| | | | |
| D) | | Unconsolidated Joint Ventures |
| | | | | | | | | | | | | | | | |
| | | | | | Three | | | | | | Twelve |
| | Number of | | Months Ended | | Number of | | Months Ended |
| | Investments | | December 31, 2008 | | Investments | | December 31, 2008 |
Balance at beginning of period | | | 3 | | | $ | 11,835 | | | | 3 | | | $ | 18,356 | |
Equity in income (losses) recognized during the period | | | 0 | | | | 1,114 | | | | 0 | | | | 1,021 | |
Parital redemption of preferred equity investment | | | 0 | | | | 0 | | | | 0 | | | | (5,546 | ) |
Acquisition of remaining equity interest in joint venture (2) | | | (1 | ) | | | (10,165 | ) | | | (1 | ) | | | (10,165 | ) |
Distributions received during the period | | | 0 | | | | 0 | | | | 0 | | | | (882 | ) |
| | | | |
Balance at end of period | | | 2 | | | $ | 2,784 | | | | 2 | | | $ | 2,784 | |
| | | | |
| | |
(1) | | During the fourth quarter of 2008, the Company substantially completed development of two medical office buildings in Arizona. |
|
(2) | | During the fourth quarter of 2008, the Company acquired fifteen medical office buildings in North and South Carolina and one medical office building in Indiana. In addition, the Company acquired the remaining interest in a joint venture which owns five medical office buildings in Washington. Also, the Company acquired an 80% controlling interest in three joint ventures that concurrently purchased a medical office building, a physician clinic and a specialty outpatient facility in Iowa. The accounts of the joint ventures are included in the Company’s Consolidated Financial Statements. |
|
(3) | | During the fourth quarter of 2008, the Company entered into contracts to sell medical office buildings in Wyoming, Washington and Florida, and reclassified the buildings to held for sale. |
|
(4) | | During the fourth quarter of 2008, the Company sold a medical office building in Virginia. |
| | |
| | |
Healthcare Realty Trust Incorporated | | |
Supplemental Information | | |
Three Months Ended December 31, 2008 | | Page 5 of 9 |
(4) INVESTMENT BY TYPE AND GEOGRAPHIC LOCATION (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Medical Office/Outpatient | | | | | | | | | | |
| | Medical | | Physician | | Ambulatory | | Specialty | | Specialty | | | | | | | | |
| | Office | | Clinics | | Care/Surgery | | Outpatient | | Inpatient | | Other | | | | | | % of |
| | (MOB) | | (PC) | | (ASC) | | (SOP) | | (SIP) (2) | | (OTH) | | Total | | Total |
| | |
Master Leases | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Alabama | | | | | | $ | 17,660 | | | | | | | $ | 2,698 | | | $ | 17,722 | | | $ | 9,493 | | | $ | 47,573 | | | | 2.3 | % |
2 Arkansas | | | | | | | | | | | | | | | 3,055 | | | | | | | | | | | | 3,055 | | | | 0.1 | % |
3 California | | | | | | | 8,363 | | | | | | | | | | | | 12,688 | | | | | | | | 21,051 | | | | 1.0 | % |
4 Florida | | $ | 37,326 | | | | 37,372 | | | $ | 9,520 | | | | 3,411 | | | | 11,703 | | | | | | | | 99,332 | | | | 4.8 | % |
5 Georgia | | | 7,785 | | | | 2,683 | | | | 3,132 | | | | | | | | | | | | | | | | 13,600 | | | | 0.7 | % |
6 Illinois | | | 11,938 | | | | | | | | 1,486 | | | | | | | | | | | | | | | | 13,424 | | | | 0.7 | % |
7 Iowa | | | 6,090 | | | | 1,801 | | | | | | | | 2,156 | | | | | | | | | | | | 10,047 | | | | 0.5 | % |
8 Indiana | | | | | | | 21,597 | | | | | | | | | | | | 43,406 | | | | 3,790 | | | | 68,793 | | | | 3.3 | % |
9 Massachusetts | | | | | | | 12,035 | | | | | | | | | | | | | | | | | | | | 12,035 | | | | 0.6 | % |
10 Michigan | | | | | | | | | | | | | | | | | | | | | | | 13,105 | | | | 13,105 | | | | 0.6 | % |
11 Missouri | | | | | | | | | | | 4,913 | | | | 16,370 | | | | | | | | | | | | 21,283 | | | | 1.0 | % |
12 Nevada | | | 8,011 | | | | | | | | 3,801 | | | | | | | | | | | | | | | | 11,812 | | | | 0.6 | % |
13 Pennsylvania | | | | | | | | | | | | | | | | | | | 113,867 | | | | | | | | 113,867 | | | | 5.6 | % |
14 Tennessee | | | 18,701 | | | | | | | | | | | | | | | | | | | | 7,640 | | | | 26,341 | | | | 1.3 | % |
15 Texas | | | | | | | 3,714 | | | | 17,314 | | | | | | | | 19,225 | | | | | | | | 40,253 | | | | 2.0 | % |
16 Virginia | | | 7,020 | | | | 30,918 | | | | | | | | 2,166 | | | | | | | | 10,194 | | | | 50,298 | | | | 2.4 | % |
17 Washington | | | 19,529 | | | | | | | | | | | | | | | | | | | | | | | | 19,529 | | | | 0.9 | % |
| | |
Master Leases | | $ | 116,400 | | | $ | 136,143 | | | $ | 40,166 | | | $ | 29,856 | | | $ | 218,611 | | | $ | 44,222 | | | $ | 585,398 | | | | 28.4 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | (3) Normalized same facility NOI growth for Master Leases (4Q2008 vs. 4Q2007): | | | | 2.9 | % |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Properties | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Arizona | | | 66,658 | | | | 1,960 | | | | | | | | | | | | | | | | | | | | 68,618 | | | | 3.3 | % |
2 California | | | 65,525 | | | | | | | | 35,032 | | | | | | | | | | | | | | | | 100,557 | | | | 4.9 | % |
3 Colorado | | | 21,981 | | | | | | | | | | | | | | | | | | | | | | | | 21,981 | | | | 1.1 | % |
4 District of Columbia | | | 29,959 | | | | | | | | | | | | | | | | | | | | | | | | 29,959 | | | | 1.5 | % |
5 Florida | | | 94,844 | | | | 17,834 | | | | | | | | | | | | | | | | | | | | 112,678 | | | | 5.4 | % |
6 Hawaii | | | 53,968 | | | | | | | | | | | | | | | | | | | | | | | | 53,968 | | | | 2.6 | % |
7 Illinois | | | 33,377 | | | | | | | | | | | | | | | | | | | | | | | | 33,377 | | | | 1.6 | % |
8 Indiana | | | 27,771 | | | | | | | | | | | | | | | | | | | | | | | | 27,771 | | | | 1.3 | % |
9 Kansas | | | 13,657 | | | | | | | | | | | | | | | | | | | | | | | | 13,657 | | | | 0.7 | % |
10 Louisiana | | | 11,685 | | | | | | | | | | | | | | | | | | | | | | | | 11,685 | | | | 0.6 | % |
11 Maryland | | | 15,684 | | | | | | | | | | | | | | | | | | | | | | | | 15,684 | | | | 0.8 | % |
12 Michigan | | | 22,183 | | | | | | | | | | | | | | | | | | | | | | | | 22,183 | | | | 1.1 | % |
13 Mississippi | | | 7,677 | | | | | | | | | | | | | | | | | | | | | | | | 7,677 | | | | 0.4 | % |
14 Missouri | | | 20,139 | | | | | | | | | | | | | | | | | | | | | | | | 20,139 | | | | 1.0 | % |
15 North Carolina | | | 140,614 | | | | | | | | | | | | | | | | | | | | | | | | 140,614 | | | | 6.8 | % |
16 Pennsylvania | | | 10,798 | | | | | | | | | | | | | | | | | | | | | | | | 10,798 | | | | 0.5 | % |
17 South Carolina | | | 10,953 | | | | | | | | | | | | | | | | | | | | | | | | 10,953 | | | | 0.5 | % |
18 Tennessee | | | 164,605 | | | | 2,336 | | | | | | | | | | | | | | | | | | | | 166,941 | | | | 8.1 | % |
19 Texas | | | 436,388 | | | | 15,461 | | | | 24,159 | | | | | | | | | | | | | | | | 476,008 | | | | 23.0 | % |
20 Washington | | | 39,427 | | | | | | | | | | | | | | | | | | | | | | | | 39,427 | | | | 1.9 | % |
| | |
Operating Properties | | $ | 1,287,893 | | | $ | 37,591 | | | $ | 59,191 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,384,675 | | | | 67.1 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | (3) Normalized same facility NOI growth for Operating Properties (4Q2008 vs. 4Q2007): | | | | 3.0 | % |
| | | | | | | |
|
Land Held for Development | | | | | | | | | | | | | | | | | | | | | | | | | | | 17,301 | | | | 0.8 | % |
Corporate Property | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,350 | | | | 0.7 | % |
| | |
Total Equity Investments | | $ | 1,404,293 | | | $ | 173,734 | | | $ | 99,357 | | | $ | 29,856 | | | $ | 218,611 | | | $ | 44,222 | | | $ | 2,001,724 | | | | 96.9 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Average Age of Facility (years) | | | 18 | | | | 20 | | | | 19 | | | | 14 | | | | 20 | | | | 37 | | | | 19 | | | | | |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
4Q 2008 Economic Occupancy (4) | | | 84 | % | | | 97 | % | | | 89 | % | | | 88 | % | | | 100 | % | | | 93 | % | | | 87 | % | | | | |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
4Q 2008 Stabilized Occupancy (4) | | | 89 | % | | | 97 | % | | | 89 | % | | | 89 | % | | | 100 | % | | | 93 | % | | | 91 | % | | | | |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage Investments | | | 34,160 | | | | 16,845 | | | | 7,996 | | | | | | | | | | | | | | | | 59,001 | | | | 2.8 | % |
| | |
Mortgage Investments | | $ | 34,160 | | | $ | 16,845 | | | $ | 7,996 | | | $ | — | | | $ | — | | | $ | — | | | $ | 59,001 | | | | 2.8 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unconsolidated Joint Ventures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Oregon | | | 1,702 | | | | | | | | | | | | | | | | | | | | | | | | 1,702 | | | | 0.1 | % |
2 Utah | | | | | | | | | | | | | | | | | | | | | | | 1,082 | | | | 1,082 | | | | 0.1 | % |
| | |
Joint Venture Investments | | $ | 1,702 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,082 | | | $ | 2,784 | | | | 0.2 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investments | | $ | 1,440,155 | | | $ | 190,579 | | | $ | 107,353 | | | $ | 29,856 | | | $ | 218,611 | | | $ | 45,304 | | | $ | 2,063,509 | | | | 100.0 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Percent of $ Invested | | | 70.9 | % | | | 9.4 | % | | | 5.3 | % | | | 1.5 | % | | | 10.7 | % | | | 2.2 | % | | | 100.0 | % | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Investments | | | 123 | | | | 33 | | | | 12 | | | | 7 | | | | 12 | | | | 11 | | | | 198 | | | | | |
| | | | | | |
| | |
(1) | | Excludes assets held for sale. |
|
(2) | | The Company’s inpatient rehabilitation facilities (included in SIP) have EBITDARM coverages of approximately 2.5 to 3.0 times. |
|
(3) | | The ‘same facility’ portfolio includes those properties that were in operation for the full quarter and for the full corresponding quarter of the prior year. The normalized same facility NOI growth rate in the portfolio is not representative of the entire portfolio. ''Normalized” means adjusted for items that would otherwise prohibit a meaningful comparison of NOI for the two periods. Approximately 79% of the Company’s owned real estate portfolio is included in the calculation of the ‘same facility’ NOI growth. |
|
(4) | | The economic and stabilized occupancies assume that properties under a Property Operating Agreement or Master Lease Agreement have 100% economic occupancy. The stabilized occupancies exclude development properties that were placed in service in the last 24 months. The average underlying tenant occupancy of the nine properties under Property Operating Agreements was approximately 64%. |
| | | | |
| | | | |
Healthcare Realty Trust Incorporated | | | | |
Supplemental Information | | | | |
Three Months Ended December 31, 2008 | | | | Page 6 of 9 |
(5) DEVELOPMENT PROPERTIES
CONSTRUCTION IN PROGRESS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Estimated | | | | | | | | | | | | CIP at | | Estimated | | Estimated | | Estimated |
| | Completion | | Property | | | | | | Approximate | | December 31, | | Remaining | | Total | | Stabilization |
State | | Date | | Type | | Properties | | Square Feet | | 2008 | | Fundings | | Investment | | Date |
|
Under construction: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Texas | | 3Q 2009 | | MOB | | | 1 | | | | 135,000 | | | $ | 18,333 | | | $ | 14,667 | | | $ | 33,000 | | | | 4Q 2011 | |
Illinois | | 4Q 2009 | | MOB | | | 1 | | | | 100,000 | | | | 10,417 | | | | 15,983 | | | | 26,400 | | | | 4Q 2011 | |
Texas | | 4Q 2009 | | MOB | | | 1 | | | | 120,000 | | | | 8,569 | | | | 20,031 | | | | 28,600 | | | | 3Q 2012 | |
Hawaii | | 1Q 2010 | | MOB | | | 1 | | | | 133,000 | | | | 30,162 | | | | 55,838 | | | | 86,000 | | | | 1Q 2013 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land held for development: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Texas (1) | | | | | | | | | | | | | | | 9,184 | | | | | | | | | | | | | |
Texas | | | | | | | | | | | | | | | 8,117 | | | | | | | | | | | | | |
|
| | | | | | | | | | |
| | | | | | | 4 | | | | 488,000 | | | $ | 84,782 | | | $ | 106,519 | | | $ | 174,000 | | | | | |
| | | | | | | | | | |
| | |
(1) | | During the fourth quarter of 2008, the Company reclassified a project from construction in progress to land held for development. |
STABILIZATION IN PROGRESS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Date | | | | | | | | Investment at | | Estimated | | | | | | | | | | Estimated |
| | Number of | | Transferred | | Property | | Square | | December 31, | | Total | | 4Q 2008 | | | | | | Stabilization |
State | | Properties | | from CIP | | Type | | Feet | | 2008 | | Investment | | NOI | | Leased | | Date |
|
Texas | | 1 | | 1Q 2007 | | MOB | | | 171,033 | | | $ | 23,347 | | | $ | 32,300 | | | $ | 236 | | | | 50 | % | | | 2Q 2010 | |
Texas | | 1 | | 2Q 2007 | | MOB | | | 73,324 | | | | 11,203 | | | | 11,900 | | | | 11 | | | | 48 | % | | | 1Q 2010 | |
Texas | | 1 | | 1Q 2008 | | MOB | | | 140,221 | | | | 20,869 | | | | 24,900 | | | | 191 | | | | 47 | % | | | 2Q 2011 | |
Colorado | | 2 | | 3Q 2008 | | MOB | | | 161,099 | | | | 21,981 | | | | 27,400 | | | | (434 | ) | | | 0 | % | | | 4Q 2011 | |
Arizona | | 2 | | 4Q 2008 | | MOB | | | 180,256 | | | | 35,472 | | | | 42,700 | | | | (58 | ) | | | 0 | % | | | 4Q 2011 | |
|
| | | | | | | | | | | | | | | | |
| | | | | | | | | 725,933 | | | $ | 112,872 | | | $ | 139,200 | | | $ | (54 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | |
Healthcare Realty Trust Incorporated | | | | |
Supplemental Information | | | | |
Three Months Ended December 31, 2008 | | | | Page 7 of 9 |
(6) SQUARE FEET OWNED AND/OR MANAGED (1)
A)By Geographic Location
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number of Properties | | Owned (2) | | Third Party | | | | |
| | | | | | Third | | | | | | Not | | Construction | | | | | | Property | | | | |
| | Owned | | Party | | Total | | Managed | | in Progress | | Managed (3) | | Management | | Total | | Percent |
| | | | |
1 Texas | | | 44 | | | | | | | | 44 | | | | 213,292 | | | | 255,000 | | | | 2,985,544 | | | | | | | | 3,453,836 | | | | 28.4 | % |
2 Tennessee | | | 17 | | | | 5 | | | | 22 | | | | 75,000 | | | | | | | | 1,278,736 | | | | 252,883 | | | | 1,606,619 | | | | 13.3 | % |
3 Florida | | | 26 | | | | | | | | 26 | | | | 546,884 | | | | | | | | 607,425 | | | | | | | | 1,154,309 | | | | 9.5 | % |
4 North Carolina | | | 14 | | | | | | | | 14 | | | | | | | | | | | | 724,291 | | | | | | | | 724,291 | | | | 6.0 | % |
5 California | | | 10 | | | | | | | | 10 | | | | 93,000 | | | | | | | | 458,955 | | | | | | | | 551,955 | | | | 4.6 | % |
6 Pennsylvania | | | 7 | | | | | | | | 7 | | | | 437,601 | | | | | | | | 63,914 | | | | | | | | 501,515 | | | | 4.1 | % |
7 Virginia | | | 8 | | | | | | | | 8 | | | | 476,204 | | | | | | | | | | | | | | | | 476,204 | | | | 3.9 | % |
8 Arizona | | | 9 | | | | 1 | | | | 10 | | | | | | | | | | | | 382,338 | | | | 59,106 | | | | 441,444 | | | | 3.7 | % |
9 Illinois | | | 4 | | | | | | | | 4 | | | | 115,100 | | | | 100,000 | | | | 142,955 | | | | | | | | 358,055 | | | | 3.0 | % |
10 Alabama | | | 6 | | | | | | | | 6 | | | | 327,535 | | | | | | | | | | | | | | | | 327,535 | | | | 2.7 | % |
11 Michigan | | | 8 | | | | | | | | 8 | | | | 121,672 | | | | | | | | 199,749 | | | | | | | | 321,421 | | | | 2.7 | % |
12 Indiana | | | 4 | | | | | | | | 4 | | | | 205,499 | | | | | | | | 102,566 | | | | | | | | 308,065 | | | | 2.6 | % |
13 Hawaii | | | 3 | | | | | | | | 3 | | | | | | | | 133,000 | | | | 173,502 | | | | | | | | 306,502 | | | | 2.5 | % |
14 Washington | | | 4 | | | | | | | | 4 | | | | 91,561 | | | | | | | | 141,058 | | | | | | | | 232,619 | | | | 1.9 | % |
15 Missouri | | | 5 | | | | | | | | 5 | | | | 81,580 | | | | | | | | 106,146 | | | | | | | | 187,726 | | | | 1.6 | % |
16 District of Columbia | | | 2 | | | | | | | | 2 | | | | | | | | | | | | 182,836 | | | | | | | | 182,836 | | | | 1.5 | % |
17 Colorado | | | 2 | | | | | | | | 2 | | | | | | | | | | | | 161,099 | | | | | | | | 161,099 | | | | 1.3 | % |
18 Iowa | | | 4 | | | | | | | | 4 | | | | 145,457 | | | | | | | | | | | | | | | | 145,457 | | | | 1.2 | % |
19 Louisiana | | | 2 | | | | | | | | 2 | | | | | | | | | | | | 133,211 | | | | | | | | 133,211 | | | | 1.1 | % |
20 Mississippi | | | 1 | | | | 1 | | | | 2 | | | | | | | | | | | | 58,036 | | | | 39,648 | | | | 97,684 | | | | 0.8 | % |
21 Maryland | | | 2 | | | | | | | | 2 | | | | | | | | | | | | 94,664 | | | | | | | | 94,664 | | | | 0.8 | % |
22 Massachusetts | | | 2 | | | | | | | | 2 | | | | 84,242 | | | | | | | | | | | | | | | | 84,242 | | | | 0.7 | % |
23 Georgia | | | 3 | | | | | | | | 3 | | | | 78,779 | | | | | | | | | | | | | | | | 78,779 | | | | 0.7 | % |
24 Kansas | | | 1 | | | | | | | | 1 | | | | | | | | | | | | 70,908 | | | | | | | | 70,908 | | | | 0.6 | % |
25 Nevada | | | 2 | | | | | | | | 2 | | | | 47,904 | | | | | | | | | | | | | | | | 47,904 | | | | 0.4 | % |
26 South Carolina | | | 1 | | | | | | | | 1 | | | | | | | | | | | | 39,801 | | | | | | | | 39,801 | | | | 0.3 | % |
27 Arkansas | | | 1 | | | | | | | | 1 | | | | 11,963 | | | | | | | | | | | | | | | | 11,963 | | | | 0.1 | % |
| | | | |
Total Properties / Square Feet | | | 192 | | | | 7 | | | | 199 | | | | 3,153,273 | | | | 488,000 | | | | 8,107,734 | | | | 351,637 | | | | 12,100,644 | | | | 100.0 | % |
| | | | |
B)By Facility Type
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Owned | | Third Party | | | | |
| | Not | | Construction | | | | | | Total | | Property | | | | |
| | Managed | | in Progress | | Managed (3) | | Owned | | Management | | Total | | Percent |
| | |
Medical Office | | | 717,449 | | | | 488,000 | | | | 7,606,578 | | | | 8,812,027 | | | | 351,637 | | | | 9,163,664 | | | | 75.7 | % |
Physician Clinics | | | 786,356 | | | | | | | | 232,866 | | | | 1,019,222 | | | | | | | | 1,019,222 | | | | 8.4 | % |
Specialty Inpatient | | | 863,694 | | | | | | | | | | | | 863,694 | | | | | | | | 863,694 | | | | 7.1 | % |
Other | | | 498,293 | | | | | | | | | | | | 498,293 | | | | | | | | 498,293 | | | | 4.1 | % |
Ambulatory Care/Surgery | | | 160,200 | | | | | | | | 268,290 | | | | 428,490 | | | | | | | | 428,490 | | | | 3.5 | % |
Specialty Outpatient | | | 127,281 | | | | | | | | | | | | 127,281 | | | | | | | | 127,281 | | | | 1.1 | % |
| | |
Total Square Feet | | | 3,153,273 | | | | 488,000 | | | | 8,107,734 | | | | 11,749,007 | | | | 351,637 | | | | 12,100,644 | | | | 100.0 | % |
| | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Percent of Total Square Footage | | | 26.0 | % | | | 4.0 | % | | | 67.0 | % | | | 97.0 | % | | | 3.0 | % | | | 100.0 | % | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Number of Properties | | | 64 | | | | 4 | | | | 124 | | | | 192 | | | | 7 | | | | 199 | | | | | |
| | | | | | |
C)By Occupancy
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | % of Total |
| | Medical | | Physician | | Ambulatory | | Specialty | | Specialty | | | | | | | | | | Square |
| | Office | | Clinics | | Care/Surgery | | Outpatient | | Inpatient | | Other | | Total | | Feet |
| | |
Occupants Greater than 1% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Baylor Health Care System | | | 845,251 | | | | | | | | | | | | | | | | | | | | | | | | 845,251 | | | | 7.3 | % |
2 Healthsouth | | | | | | | | | | | 16,878 | | | | 13,356 | | | | 643,383 | | | | | | | | 673,617 | | | | 5.7 | % |
3 Carolinas Healthcare System | | | 545,659 | | | | | | | | | | | | | | | | | | | | | | | | 545,659 | | | | 4.6 | % |
4 HCA | | | 30,495 | | | | 235,600 | | | | 8,749 | | | | | | | | | | | | 16,400 | | | | 291,244 | | | | 2.5 | % |
5 Ascension Health Care System | | | 202,059 | | | | | | | | | | | | | | | | | | | | | | | | 202,059 | | | | 1.7 | % |
6 OrthoIndy | | | | | | | 58,474 | | | | | | | | | | | | 117,525 | | | | | | | | 175,999 | | | | 1.5 | % |
7 Melbourne Internal Medicine Assocs | | | | | | | 134,520 | | | | | | | | | | | | | | | | | | | | 134,520 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Other Occupants Less than 1% | | | 7,188,563 | | | | 590,628 | | | | 402,863 | | | | 113,925 | | | | 102,786 | | | | 481,893 | | | | 8,880,658 | | | | 75.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Total Square Feet | | | 8,812,027 | | | | 1,019,222 | | | | 428,490 | | | | 127,281 | | | | 863,694 | | | | 498,293 | | | | 11,749,007 | | | | 100.0 | % |
| | |
| | |
(1) | | Mortgage notes, investments in unconsolidated limited liability companies and assets classified as held for sale are excluded. |
|
(2) | | Approximately 70% of the portfolio is considered to be located on or adjacent to a hospital campus. |
|
(3) | | Excludes mortgage notes, investments in unconsolidated joint ventures and assets classified as held for sale, as well as third party managed properties. The owned and managed portfolio consists of 1,478 leases with an average of 4,130 square feet per lease. |
| | | | |
| | | | |
Healthcare Realty Trust Incorporated | | | | |
Supplemental Information | | | | |
Three Months Ended December 31, 2008 | | | | Page 8 of 9 |
(7) LEASE MATURITY SCHEDULE (1)
| | | | | | | | | | | | | | | |
| | Annualized | | | | | | | | | | Average |
| | Minimum | | Number of | | Percentage | | Square Feet |
| | Rents (2) | | Leases | | of Revenues | | Per Lease |
2009 | | $41,477 | | | 457 | | | | 20.8 | % | | | 4,235 | (3) |
2010 | | 22,017 | | | 257 | | | | 11.0 | % | | | 3,943 | |
2011 | | 22,361 | | | 220 | | | | 11.2 | % | | | 4,243 | |
2012 | | 22,316 | | | 179 | | | | 11.2 | % | | | 5,407 | |
2013 | | 28,454 | | | 153 | | | | 14.3 | % | | | 7,705 | |
2014 | | 12,177 | | | 67 | | | | 6.1 | % | | | 8,181 | |
2015 | | 5,992 | | | 42 | | | | 3.0 | % | | | 7,667 | |
2016 | | 7,911 | | | 22 | | | | 4.0 | % | | | 13,392 | |
2017 | | 12,305 | | | 31 | | | | 6.2 | % | | | 20,706 | |
Thereafter | | 24,244 | | | 115 | | | | 12.2 | % | | | 10,199 | |
| | |
(1) | | Mortgage notes receivable, investments in unconsolidated joint ventures and assets classified as held for sale are excluded. |
|
(2) | | Represents the annualizedminimum rentson leases in place, excluding the impact of renewals, future step-ups in rent, or sponsor support payments under property operating agreements. |
|
(3) | | Based on square footage, the lease expirations in 2009 are approximately 27% master leases and 73% multi-tenant leases. The average size of these maturing leases is approximately 4,235 square feet. Of the multi-tenant leases expiring, approximately 86% of the square footage is on-campus and approximately 34% of the square footage represents maturing five-year leases with major hospital tenants resulting from the Company’s acquisitions in 2004 with Baylor Health Systems, Ascension Health Care Systems, MedStar Health, and Advocate Health Care. Considering the very high percentage of expiring multi-tenant leases being on-campus and with hospitals for outpatient services on the various campuses, the Company fully expects to renew the majority of these leases at market rates. |
(8) UNCONSOLIDATED JOINT VENTURES
| | | | | | | | | |
| | Oregon | | Utah |
| | |
HR Ownership % | | | 50 | % | | | 10 | % |
HR Investment in JV, net (1) | | $ | 1,702 | | | $ | 1,082 | |
Income recorded by HR (2) | | $ | 89 | | | $ | 72 | |
Real Estate Depreciation and Amortization (3) | | $ | 74 | | | $ | — | |
Facility type | | MOB | | | OTH | |
Total unconsolidated assets of JV (4) | | $ | 16,112 | | | $ | 34,669 | |
Total unconsolidated debt of JV (4) | | $ | 12,597 | | | $ | 32,132 | |
Total unconsolidated equity of JV (4) | | $ | 3,159 | | | $ | 2,537 | |
| | |
(1) | | At December 31, 2008. |
|
(2) | | Included in “Interest and other income, net” on the Company’s Consolidated Statements of Income for the three months ended December 31, 2008. In addition, the Company recorded JV income of $1,025 for the three months ended December 31, 2008 related to a joint venture in which the Company acquired the remaining equity interest during the fourth quarter of 2008. |
|
(3) | | The amount of real estate depreciation and amortization for the three months ended December 31, 2008 included in equity income (loss) recorded by the Company related to its joint venture investments accounted for under the equity method. Also, the Company recorded depreciation and amortization of $251 related to a joint venture in which the Company acquired the remaining equity interest during the fourth quarter of 2008. The Company adds these amounts back to net income in its calculation of funds from operations (FFO). |
|
(4) | | Unaudited information provided by the joint venture. |
| | | | |
| | | | |
Healthcare Realty Trust Incorporated | | | | |
Supplemental Information | | | | |
Three Months Ended December 31, 2008 | | | | Page 9 of 9 |