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 FOURTH QUARTER RESULTS
NASHVILLE, Tennessee January 29, 2004 -- Healthcare Realty Trust
Incorporated (NYSE:HR) today announced results for the fourth quarter that
ended December 31, 2003. Revenues for the fourth quarter totaled $49.9 million,
compared with the prior year's $45.8 million. Net income for the period was
$16.9 million, or $0.40 per diluted common share, versus $7.5 million, or $0.18
per diluted common share, for the fourth quarter of 2002. Net income for the
fourth quarter of 2002 included an $11.8 million charge which was substantially
non-cash. Excluding the charge, net income would have been $19.3 million, or
$0.46 per diluted common share for the three months ended December 31, 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 $29.0
million for the fourth quarter of 2003, compared with $16.9 million for the
same period in 2002. FFO per diluted common share for the fourth quarter of
2003 totaled $0.69, compared with $0.40 for the fourth quarter of 2002.
Excluding the charge, FFO for the fourth quarter of 2002 would have been $28.7
million, or $0.69 per diluted common share. A reconciliation of FFO to net
income follows.
Revenues for the twelve months ended December 31, 2003 totaled $192.0
million compared with the prior year's $185.7 million. Net income for the
twelve-month period was $70.5 million, or $1.69 per diluted common share,
versus $70.1 million, or $1.55 per diluted common share, for the same period in
2002. Excluding the charge, net income would have been $81.9 million, or $1.84
per diluted common share for the twelve months ended December 31, 2002. Diluted
funds from operations totaled $114.0 million for the twelve months ended
December 31, 2003, compared with $102.0 million for the same period ended
December 31, 2002. Funds from operations, per diluted common share, for the
twelve months ended December 31, 2003 was $2.73, compared with $2.45 for the
same period in 2002. Excluding the charge, FFO for the twelve months ended
December 31, 2002 would have been $113.9 million, or $2.74 per diluted common
share.
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 December 31, 2003, the Company's portfolio was comprised
of ten major facility types, located in 30 states, and operated pursuant to
contractual arrangements with 61 healthcare providers. The Company had
investments of approximately $1.7 billion in 218 real estate properties or
mortgages, totaling approximately 11.3 million square feet. The Company
provided property management services to approximately 4.7 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 Fourth Quarter Results
Page Two
January 29, 2004
HEALTHCARE REALTY TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------------- -------------------------------
2003 2002 2003 2002
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Revenues:
Master lease rental income $ 23,088 $ 22,647 $ 88,963 $ 91,966
Property operating income 22,771 18,673 85,954 74,477
Straight line rent 552 844 2,553 2,588
Mortgage interest income 2,763 2,694 10,441 13,308
Interest and other income 751 980 4,086 3,407
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49,925 45,838 191,997 185,746
Expenses:
General and administrative 2,887 13,854 11,122 22,229
Property operating expenses 9,821 7,420 34,876 28,542
Interest 8,964 8,229 34,601 34,195
Depreciation 10,973 10,013 42,142 39,587
Amortization 13 25 53 126
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32,658 39,541 122,794 124,679
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Income from continuing operations 17,267 6,297 69,203 61,067
Discontinued Operations:
Operating income from discontinued operations 30 685 2,413 5,636
Gain (loss) on sale of real estate properties (441) 516 (1,109) 3,388
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(411) 1,201 1,304 9,024
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Net income $ 16,856 $ 7,498 $ 70,507 $ 70,091
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Basic earnings per common share:
Income from continuing operations per common share $ 0.41 $ 0.15 $ 1.68 $ 1.35
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Discontinued operations per common share $ (0.01) $ 0.03 $ 0.03 $ 0.22
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Net income per common share $ 0.40 $ 0.18 $ 1.71 $ 1.57
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Diluted earnings per common share:
Income from continuing operations per common share $ 0.41 $ 0.15 $ 1.66 $ 1.34
============ ============ ============ ============
Discontinued operations per common share $ (0.01) $ 0.03 $ 0.03 $ 0.21
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Net income per common share $ 0.40 $ 0.18 $ 1.69 $ 1.55
============ ============ ============ ============
Weighted average common
shares outstanding - Basic 41,693,382 41,147,227 41,129,282 40,974,532
============ ============ ============ ============
Weighted average common
shares outstanding - Diluted 42,276,811 41,747,036 41,780,088 41,606,068
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HR Reports First Quarter Results
Page Three
January 29, 2004
HEALTHCARE REALTY TRUST INCORPORATED
RECONCILIATION OF FUNDS FROM OPERATIONS (1)
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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2003 2002 2003 2002
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Net income (2) $ 16,856 $ 7,498 $ 70,507 $ 70,091
Net (gain) loss on sale of
real estate properties 441 (516) 1,109 (3,388)
Preferred stock dividend 0 0 0 (4,992)
Real estate depreciation
and amortization 11,741 9,907 42,370 40,317
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Total adjustments 12,182 9,391 43,479 31,937
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Funds from operations - Basic
and Diluted $ 29,038 $ 16,889 $ 113,986 $ 102,028
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Funds from operations
per common share - Basic $ 0.70 $ 0.41 $ 2.77 $ 2.49
============ ============ ============ ============
Funds from operations
per common share - Diluted $ 0.69 $ 0.40 $ 2.73 $ 2.45
============ ============ ============ ============
Weighted average common
shares outstanding - Basic 41,693,382 41,147,227 41,129,282 40,974,532
============ ============ ============ ============
Weighted average common
shares outstanding - Diluted 42,276,811 41,747,036 41,780,088 41,606,068
============ ============ ============ ============
(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 $581,
respectively, for the three months ended December 31, 2003 and 2002,
and $2.9 million and $2.3 million, respectively, for the twelve months
ended December 31, 2003 and 2002. Net income for the three and twelve
months ended December 31, 2002 includes an $11.8 million charge
related to the retirement of one executive officer and the elimination
of several other officer and employee positions in the fourth quarter
of 2002.
Healthcare Realty Trust maintains a website: www.healthcarerealty.com to
provide general corporate, investor and financial information.
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