EXHIBIT 99.2
[HEALTHCARE REALTY TRUST LOGO]
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 29, 2004 -- Healthcare Realty Trust
Incorporated (NYSE:HR) today announced results for the first quarter that ended
March 31, 2004. Revenues for the first quarter totaled $51.7 million, compared
with the prior year's $47.0 million. Net income for the period was $17.8
million, or $0.42 per diluted common share, versus $18.6 million, or $0.45 per
diluted common share, for the first quarter of 2003.
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 $29.1 million
for the first quarter of 2004, compared with $28.5 million for the same period
in 2003. FFO per diluted common share for the first quarter of 2004 totaled
$0.69, compared with $0.69 for the first quarter of 2003. A reconciliation of
FFO 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, 2004, the Company had investments of
approximately $1.7 billion in 228 real estate properties or mortgages, totaling
approximately 11.8 million square feet. The Company's portfolio was comprised of
six major facility types, located in 30 states. The Company provided property
management services to approximately 5.2 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, 2003. 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 29, 2004
HEALTHCARE REALTY TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
-------------------------
2004 2003
---------- ----------
Revenues:
Master lease rental income $ 23,010 $ 22,339
Property operating income 24,764 19,801
Straight line rent 182 620
Mortgage interest income 2,814 2,681
Interest and other income 894 1,580
---------- ----------
51,664 47,021
Expenses:
General and administrative 3,417 2,669
Property operating expenses 10,362 7,661
Interest 8,973 8,446
Depreciation 11,087 10,128
Amortization 13 13
---------- ----------
33,852 28,917
---------- ----------
Income from continuing operations 17,812 18,104
Discontinued Operations:
Operating income from discontinued operations 0 464
Gain (loss) on sale of real estate properties 0 0
---------- ----------
0 464
---------- ----------
Net income $ 17,812 $ 18,568
========== ==========
Basic earnings per common share:
Income from continuing operations per common share $ 0.43 $ 0.44
========== ==========
Discontinued operations per common share $ 0.00 $ 0.01
========== ==========
Net income per common share $ 0.43 $ 0.45
========== ==========
Diluted earnings per common share:
Income from continuing operations per common share $ 0.42 $ 0.44
========== ==========
Discontinued operations per common share $ 0.00 $ 0.01
========== ==========
Net income per common share $ 0.42 $ 0.45
========== ==========
Weighted average common shares outstanding - Basic 41,668,173 40,819,618
========== ==========
Weighted average common shares outstanding - Diluted 42,379,283 41,615,403
========== ==========
</Table>
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HR Reports First Quarter Results
Page Four
April 24, 2003
HEALTHCARE REALTY TRUST INCORPORATED
RECONCILIATION OF FUNDS FROM OPERATIONS (1)
(UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
-------------------------
2004 2003
---------- ----------
Net income (2) $ 17,812 $ 18,568
Net (gain) loss on sale of real estate properties 0 0
Real estate depreciation and amortization 11,282 9,979
---------- ----------
Total adjustments 11,282 9,979
---------- ----------
Funds from operations - Basic and Diluted $ 29,094 $ 28,547
========== ==========
Funds from operations per common share - Basic $ 0.70 $ 0.70
========== ==========
Funds from operations per common share - Diluted $ 0.69 $ 0.69
========== ==========
Weighted average common shares outstanding - Basic 41,668,173 40,819,618
========== ==========
Weighted average common shares outstanding - Diluted 42,379,283 41,615,403
========== ==========
</Table>
(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"). 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 $848 thousand and $692
thousand, respectively, for the three months ended March 31, 2004 and 2003.
Healthcare Realty Trust maintains a website: www.healthcarerealty.com to provide
general corporate, investor and financial information.
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