EXHIBIT 99.2
(HEALTHCARE REALTY TRUST)
NEWS RELEASE
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Contact: Scott W. Holmes, Senior Vice President and Chief Financial Officer,
(615) 269-8175
HEALTHCARE REALTY TRUST ANNOUNCES SECOND QUARTER RESULTS
NASHVILLE, Tennessee July 24, 2003 -- Healthcare Realty Trust
Incorporated (NYSE:HR) today announced results for the second quarter that ended
June 30, 2003. Revenues for the second quarter totaled $48.6 million, compared
with the prior year's $48.3 million. Net income for the period was $17.6
million, or $0.42 per diluted common share, versus $22.3 million, or $0.50 per
diluted common share, for the second 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 $28.2 million
for the second quarter of 2003, compared with $27.7 million for the same period
in 2002. FFO per diluted common share for the second quarter of 2003 totaled
$0.68, compared with $0.67 for the second quarter of 2002. A reconciliation of
FFO to net income follows.
Revenues for the six months ended June 30, 2003 totaled $96.2 million
compared with the prior year's $98.0 million. Net income for the six-month
period was $36.2 million, or $0.87 per diluted common share, versus $42.1
million, or $0.94 per diluted common share, for the first six months of 2002.
Diluted funds from operations totaled $56.7 million for the first six months
ended June 30, 2003, compared with $56.5 million for the same period ended June
30, 2002. Funds from operations, per diluted common share, for the first six
months of 2003 was $1.36, equal with the same period in 2002.
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 June 30, 2003, the Company's portfolio was comprised of
ten 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 218 real estate properties or
mortgages, totaling approximately 11.0 million square feet. The Company provided
property management services to more than five 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 Second Quarter Results
Page Two
July 24, 2003
HEALTHCARE REALTY TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2003 2002 2003 2002
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Revenues:
Master lease rental income $ 23,521 $ 24,683 $ 46,427 $ 49,579
Property operating income 21,385 18,909 41,193 38,001
Straight line rent 606 50 1,271 1,231
Mortgage interest income 2,286 3,538 4,967 7,322
Interest and other income 762 1,130 2,342 1,830
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48,560 48,310 96,200 97,963
Expenses:
General and administrative 2,865 2,726 5,534 5,234
Property operating expenses 8,640 7,399 16,304 14,862
Interest 8,565 8,499 17,010 17,438
Depreciation 10,635 10,357 20,914 20,880
Amortization 13 33 27 76
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30,718 29,014 59,789 58,490
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Net income before net gain (loss)
on sale of real estate properties 17,842 19,296 36,411 39,473
Net gain (loss) on sale of real
estate properties (208) 2,959 (208) 2,630
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Net income $ 17,634 $ 22,255 $ 36,203 $ 42,103
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Net income per common share - Basic $ 0.43 $ 0.51 $ 0.89 $ 0.96
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Net income per common share - Diluted $ 0.42 $ 0.50 $ 0.87 $ 0.94
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Weighted average common
shares outstanding - Basic 40,905,717 40,652,146 40,864,745 40,561,412
============ =========== ============ ===========
Weighted average common
shares outstanding - Diluted 41,635,351 41,512,283 41,610,718 41,456,693
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HR Reports Second Quarter Results
Page Three
July 24, 2003
HEALTHCARE REALTY TRUST INCORPORATED
RECONCILIATION OF FUNDS FROM OPERATIONS (1)
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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2003 2002 2003 2002
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Net income (2) $ 17,634 $ 22,255 $ 36,203 $ 42,103
Net (gain)loss on sale of
real estate properties 208 (2,959) 208 (2,630)
Preferred stock dividend 0 (1,664) 0 (3,328)
Real estate depreciation 10,341 10,072 20,319 20,317
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Total adjustments 10,549 5,449 20,527 14,359
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Funds from operations - Basic
and Diluted $ 28,183 $ 27,704 $ 56,730 $ 56,462
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Funds from operations
per common share - Basic $ 0.69 $ 0.68 $ 1.39 $ 1.39
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Funds from operations
per common share - Diluted $ 0.68 $ 0.67 $ 1.36 $ 1.36
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Weighted average common
shares outstanding - Basic 40,905,717 40,652,146 40,864,745 40,561,412
=========== ============ =========== ============
Weighted average common
shares outstanding - Diluted 41,635,351 41,512,283 41,610,718 41,456,693
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(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"). 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."
The Company considers FFO to be an informative measure of REIT
performance commonly used in the REIT industry. 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) Net income includes non-cash deferred compensation of $686 and $842,
respectively, for the three months ended June 30, 2003 and 2002, and
$1.4 million and $1.5 million, respectively, for the six months ended
June 30, 2003 and 2002.
Healthcare Realty Trust maintains a website: www.healthcarerealty.com to provide
general corporate, investor and financial information.
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