EXHIBIT 99.1
Healthcare Realty Trust
Investor Slide Presentation
In addition to the historical information contained within, the matters
discussed in this presentation may contain forward-looking statements that
involve risks and uncertainties. These risks are discussed in a 10-K filed with
the SEC by Healthcare Realty Trust for the year ended December 31, 2001.
Forward-looking statements represent the Company's judgment as of the date of
this presentation. The Company disclaims any obligation to update
forward-looking material.
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CORPORATE PROFILE
-- Integrated Real Estate Company Focused on Owning, Managing
and Developing Income-Producing Real Estate Properties
Associated With the Delivery of Healthcare Services
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CORPORATE PROFILE
- - Strategy
-- Provide Integrated Real Estate Solutions
-- Concentrate on Outpatient Healthcare Facilities
-- Focus on Long-Term Relationships
- - Internal & External Growth Capabilities
- - Client, Geographic & Property Type Diversification
- - Strong Capital Structure with Conservative Leverage
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PERFORMANCE HIGHLIGHTS
- - $1.6 Billion in Total Investments and Commitments
- - 238 Owned Properties and Mortgages, 11.3 Million Square Feet
- - 5.9 Million Square Feet Managed
- - 6.0% Average FFO Historical Growth, 1.5% Growth 1st Quarter, YOY
- - 33.8% Debt to Book Capitalization, Ranked 6th
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STRATEGY
- - Differentiation
-- Integrate Related Real Estate Services and Capital
-- Not A Finance Company
- - Added Value
-- Maximize Return on Assets
-- Mitigate Issues Related to Fraud & Abuse Statutes
-- Control Operating Expenses
- - Clients
-- Partnerships...Aligned, Long-Term Incentives
-- Foster Additional Investments Over Time
-- Publicly-Traded or Investment Grade
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STRATEGY
- - Markets
-- Invest with Leading Providers in Growth Markets
-- Geographic Diversification
- - Facilities
-- Emphasize Real Estate Fundamentals
-- Focus on Growth Sectors - Ancillary and Outpatient
-- Location, Location, Location
- - Growth
-- Strategic Acquisitions
-- Cross-Selling of Services
-- Proactive Property Management
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HEALTHCARE OVERVIEW
- - Healthcare Industry Fundamentals Remain Favorable - Non-Cyclical in
Slowing Economy
-- Strong Revenue Growth Trends
-- Higher Reimbursement
-- Rising Admissions
-- Lower Cost Pressures
-- Balance Sheet Improvement
- - Continued Emphasis on Outpatient and Lower-Cost Settings
- - Capital Needs Heighten Use of Alternative Sources of Capital
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HEALTHCARE OVERVIEW
- - Graphic Omitted: Inpatient Admissions per Thousand from 1950 to 2000
- -- Source: American Hospital Association, Hospital Statistics 2002.
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HEALTHCARE OVERVIEW
- - Graphic Omitted: Inpatient Days vs. Outpatient Visits from 1983 to 2000
- -- Source: American Hospital Association, Hospital Statistics 2002.
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HEALTHCARE OVERVIEW
- - Graphic Omitted: National Healthcare Spending in 2000
- -- Source: Centers for Medicare and Medicaid Services, Office of the
Actuary, National Health Statistics Group, 2000.
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HEALTHCARE OVERVIEW
- - Graphic Omitted: Acute Care Hospital Profit Margins from 1985 to 2000
- -- Source: American Hospital Association, as quoted in Modern Healthcare,
November 26, 2001, p. 12.
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HEALTHCARE OVERVIEW
- - Graphic Omitted: Acute Care Hospital Medicare Margins from 1984 to
2000
- -- Source: Medicare payment advisory commission, 2000 margin projected,
(202)653-7220.
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INVESTMENT BY FACILITY TYPE
- - Graphic Omitted: See Supplemental Data Report as of 3/31/02 for
additional information.
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INVESTMENT BY PROVIDER
- - Graphic Omitted: See Supplemental Data Report as of 3/31/02 for
additional information.
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INVESTMENT BY STATE
- - Chart and Map Omitted: See Supplemental Data Report as of 3/31/02 for
additional information.
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GROWTH OPPORTUNITIES
- - Existing Relationships
-- Additional Investments
-- Management Services Expansion
- - VHA Inc. Business Partnership
-- 2,200 Not-for-Profit Health Systems
- - Not-for-Profit Healthcare Sector
-- Strong Fundamentals
-- 91% of Rated Hospitals are Investment Grade
- - Healthcare Industry Size
-- 800,000 Physicians
-- 3,800 Privately-Owned Hospitals, 80% Not-for-Profit
-- $18 Billion Healthcare Construction Expenditures
-- $500 Billion in Healthcare Real Estate
- - Healthcare Industry Capital Demands
-- Balance Sheet Focus
-- Margin Pressures
-- Clinical Mission
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CAPITAL STRUCTURE
- - Strong Balance Sheet
- - Debt to Book Capitalization 33.8%
- - $300 Million 8.125% Senior Notes Due 2011
- - $150 Million Unsecured Credit Facility Due 2004
- - $88 Million in Senior Notes Due 2002 and 2006
- - Senior Notes Rated "Baa3" by Moody's, "BBB-" by Standard and Poor's,
and "BBB" by Fitch Ratings
- - 3 Million Shares Preferred Stock
(Information as of 3/31/02)
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INVESTMENTS & COMMITMENTS
- - Graphic Omitted: Total investments & commitments from 1995 to 2001.
See the Company's financial reports for additional information.
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REVENUES
- - Graphic Omitted: Total annual revenues from 1995 to 2001. See the
Company's financial reports for additional information.
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FUNDS FROM OPERATIONS - DILUTED
- - Graphic Omitted: Total funds from operations from 1995 to 2001. See
the Company's financial reports for additional information.
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DIVIDENDS PER SHARE
- - Graphic Omitted: Quarterly dividends per common share from first
quarter 1998 to first quarter 2002. See the Company's financial
reports for additional information.
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SUMMARY
- - Healthcare is a Large, Vital and Profitable Industry
-- Expanding Sectors of Healthcare Industry
-- Growth Markets with Prominent Clients
- - Distinct Competitive Advantages
-- Integrated Real Estate Services and Capital
-- Well-Defined, Differentiated Strategy
-- Innovative Transaction Structures
-- Extensive Experience and Client Relationships
-- Management Expertise
- - Low Leverage and Strong Balance Sheet
- - Cash Flow and Dividend Growth
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