EXHIBIT 99.2
HEALTHCARE REALTY TRUST
NEWS RELEASE
Contact: Scott W. Holmes, Senior Vice President and Chief Financial Officer,
(615) 269-8175
HEALTHCARE REALTY TRUST ANNOUNCES FIRST QUARTER RESULTS
NASHVILLE, Tennessee April 24, 2003 -- Healthcare Realty Trust
Incorporated (NYSE:HR) today announced results for the first quarter that ended
March 31, 2003. Revenues for the first quarter totaled $47.6 million, compared
with the prior year's $49.7 million. Net income for the period was $18.6
million, or $0.45 per diluted common share, versus $19.8 million, or $0.44 per
diluted common share, for the first quarter of 2002.
Funds from operations ("FFO"), calculated according to the definition
of the National Association of Real Estate Investment Trusts and comprised
primarily of net income and depreciation from real estate, totaled $28.5 million
for the first quarter of 2003, compared with $28.8 million for the same period
in 2002. FFO per diluted common share for the first quarter of 2003 totaled
$0.69, compared with $0.69 for the first quarter of 2002. Funds available for
distribution ("FAD"), which is derived from FFO and excludes nonrecurring and
non-cash expenses as well as straight line rental revenue, totaled $28.9 million
for the first quarter of 2003, compared with $28.6 million for the same period
in 2002. FAD per diluted common share for the first quarter of 2003 totaled
$0.69, compared with $0.69 for the first quarter of 2002. A reconciliation of
FFO and FAD to net income follows.
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. As of March 31, 2003, the Company's portfolio was comprised of
nine major facility types, located in 29 states, and operated pursuant to
contractual arrangements with 60 healthcare providers. The Company had
investments of approximately $1.6 billion in 219 real estate properties or
mortgages, totaling approximately 10.5 million square feet. The Company
provided property management services to almost six million square feet
nationwide.
The Company directs interested parties to its Internet page site,
www.healthcarerealty.com, where material 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-K filed with the SEC by Healthcare Realty Trust for the year
ended December 31, 2002. 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.
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HR Reports First Quarter Results
Page Two
April 24, 2003
HEALTHCARE REALTY TRUST INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2003 2002
----------- ------------
Revenues:
Master lease rental income $ 22,905 $ 24,896
Property operating income 19,809 19,092
Straight line rent 665 1,181
Mortgage interest income 2,681 3,784
Management fees 272 314
Interest and other income 1,308 386
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47,640 49,653
Expenses:
General and administrative 2,669 2,508
Property operating expenses 7,664 7,463
Interest 8,446 8,939
Depreciation 10,280 10,523
Amortization 13 43
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29,072 29,476
----------- ------------
Net income before net gain (loss) on sale of real estate properties 18,568 20,177
Net gain (loss) on sale of real estate properties -- (329)
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Net income $ 18,568 $ 19,848
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Net income per common share - Basic $ 0.45 $ 0.45
=========== ============
Net income per common share - Diluted $ 0.45 $ 0.44
=========== ============
Weighted average common shares outstanding - Basic 40,819,618 40,486,486
=========== ============
Weighted average common shares outstanding - Diluted 41,615,403 41,434,098
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HR Reports First Quarter Results
Page Three
April 24, 2003
HEALTHCARE REALTY TRUST INCORPORATED
RECONCILIATION OF FUNDS FROM OPERATIONS AND FUNDS AVAILABLE FOR DISTRIBUTION (1)
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
-------------------------------
2003 2002
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Net income $ 18,568 $ 19,848
Net (gain)/loss on sale of real estate properties 0 329
Preferred stock dividend 0 (1,664)
Real estate depreciation 9,979 10,244
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Total adjustments 9,979 8,909
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Funds from operations - Basic and Diluted $ 28,547 $ 28,757
============ ============
Funds from operations per common share - Basic $ 0.70 $ 0.71
============ ============
Funds from operations per common share - Diluted $ 0.69 $ 0.69
============ ============
Funds from operations - Diluted $ 28,547 $ 28,757
Elimination of the recognition of rental revenues
on a straight line basis (665) (1,181)
Deferred compensation amortization 692 680
Depreciation of non-real estate assets 301 279
Amortization of non-real estate assets 13 43
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Total adjustments 341 (179)
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Funds available for distribution $ 28,888 $ 28,578
============ ============
Funds available for distribution per common share - Basic $ 0.71 $ 0.71
============ ============
Funds available for distribution per common share - Diluted $ 0.69 $ 0.69
============ ============
Weighted average common shares outstanding - Basic 40,819,618 40,486,486
============ ============
Weighted average common shares outstanding - Diluted 41,615,403 41,434,098
============ ============
(1) Funds from operations ("FFO") and FFO per share are operating
performance measures adopted by the National Association of Real Estate
Investment Trusts ("NAREIT"). Beginning with the first quarter of 2003,
the Company calculated and reported FFO and FFO per share in accordance
with NAREIT's April 2002 White Paper. NAREIT defines FFO as "The most
commonly accepted and reported measure of REIT operating performance
equal to a REIT's net income, excluding gains or losses from sales of
property and adding back real estate depreciation."
Funds available for distribution ("FAD") and FAD per share are also
operating performance measures adopted by NAREIT that measure a REIT's
ability to generate cash and distribute dividends to its shareholders.
NAREIT defines FAD as "In addition to subtracting from FFO normalized
recurring real estate expenditures and other non-cash items, FAD is
usually derived by also subtracting nonrecurring expenditures."
The Company considers FFO and FAD to be informative measures of REIT
performance commonly used in the REIT industry. However, neither FFO
nor FAD represents cash generated from operating activities determined
in accordance with accounting principles generally accepted in the
United States ("GAAP") and are not necessarily indicative of cash
available to fund cash needs. FFO and FAD should not be considered
alternatives to net income as an indicator of the Company's operating
performance or as alternatives to cash flow as a measure of liquidity.
Healthcare Realty Trust maintains a website: www.healthcarerealty.com to provide
general corporate, investor and financial information.
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