EXHIBIT 99.2
(HEALTHCARE REALTY TRUST LOGO)
NEWS RELEASE
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Contact: Scott W. Holmes, Senior Vice President and Chief Financial Officer,
(615) 269-8175
HEALTHCARE REALTY TRUST ANNOUNCES THIRD QUARTER RESULTS
NASHVILLE, Tennessee October 30, 2003 -- Healthcare Realty Trust
Incorporated (NYSE:HR) today announced results for the third quarter that ended
September 30, 2003. Revenues for the third quarter totaled $48.6 million,
compared with the prior year's $49.8 million. Net income for the period was
$17.4 million, or $0.42 per diluted common share, versus $20.5 million, or $0.44
per diluted common share, for the third 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 third quarter of 2003, compared with $28.7 million for the same period
in 2002. FFO per diluted common share for the third quarter of 2003 totaled
$0.68, compared with $0.69 for the third quarter of 2002. A reconciliation of
FFO to net income follows.
Revenues for the nine months ended September 30, 2003 totaled $144.8
million compared with the prior year's $147.8 million. Net income for the
nine-month period was $53.7 million, or $1.29 per diluted common share, versus
$62.6 million, or $1.38 per diluted common share, for the first nine months of
2002. Diluted funds from operations totaled $84.9 million for the first nine
months ended September 30, 2003, compared with $85.1 million for the same period
ended September 30, 2002. Funds from operations, per diluted common share, for
the first nine months of 2003 was $2.04, compared with $2.05 for 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 September 30, 2003, the Company's portfolio was comprised
of ten major facility types, located in 30 states, and operated pursuant to
contractual arrangements with 62 healthcare providers. The Company had
investments of approximately $1.7 billion in 220 real estate properties or
mortgages, totaling approximately 11.6 million square feet. The Company provided
property management services to almost 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 Third Quarter Results
Page Two
September 30, 2003
HEALTHCARE REALTY TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2003 2002 2003 2002
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Revenues:
Master lease rental income $ 22,082 $ 25,276 $ 68,509 $ 74,855
Property operating income 21,997 19,626 63,190 57,627
Straight line rent 811 1,017 2,081 2,248
Mortgage interest income 2,710 3,292 7,678 10,614
Interest and other income 994 607 3,336 2,437
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48,594 49,818 144,794 147,781
Expenses:
General and administrative 2,701 3,140 8,235 8,374
Property operating expenses 8,758 7,486 25,062 22,348
Interest 8,627 8,529 25,637 25,966
Depreciation 10,585 10,386 31,500 31,267
Amortization 13 29 40 105
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30,684 29,570 90,474 88,060
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Net income before net gain (loss)
on sale of real estate properties 17,910 20,248 54,320 59,721
Net gain (loss) on sale of real
estate properties (461) 242 (668) 2,872
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Net income $ 17,449 $ 20,490 $ 53,652 $ 62,593
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Net income per common share - $ 0.42 $ 0.45 $ 1.31 $ 1.40
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Basic
Net income per common share - $ 0.42 $ 0.44 $ 1.29 $ 1.38
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Diluted
Weighted average common
shares outstanding - Basic 41,087,329 40,682,210 40,939,067 40,601,065
============ ============ ============ ============
Weighted average common
shares outstanding - Diluted 41,732,935 41,487,797 41,636,126 41,450,671
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HR Reports Third Quarter Results
Page Three
September 30, 2003
HEALTHCARE REALTY TRUST INCORPORATED
RECONCILIATION OF FUNDS FROM OPERATIONS (1)
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------- ---------------------------
2003 2002 2003 2002
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Net income (2) $ 17,449 $ 20,490 $ 53,652 $ 62,593
Net (gain) loss on sale of real
estate properties 461 (242) 668 (2,872)
Preferred stock dividend 0 (1,664) 0 (4,992)
Real estate depreciation 10,308 10,094 30,628 30,411
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Total adjustments 10,769 8,188 31,296 22,547
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Funds from operations - Basic
and Diluted $ 28,218 $ 28,678 $ 84,948 $ 85,140
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Funds from operations
per common share - Basic $ 0.69 $ 0.70 $ 2.08 $ 2.10
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Funds from operations
per common share - Diluted $ 0.68 $ 0.69 $ 2.04 $ 2.05
============ ============ ============ ============
Weighted average common
shares outstanding - Basic 41,087,329 40,682,210 40,939,067 40,601,065
============ ============ ============ ============
Weighted average common
shares outstanding - Diluted 41,732,935 41,487,797 41,636,126 41,450,671
============ ============ ============ ============
(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 $688 and $778,
respectively, for the three months ended September 30, 2003 and 2002,
and $2.1 million and $2.3 million, respectively, for the nine months
ended September 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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