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 SECOND QUARTER RESULTS
NASHVILLE, Tennessee July 29, 2004 -- Healthcare Realty Trust
Incorporated (NYSE:HR) today announced results for the second quarter that
ended June 30, 2004. Revenues for the second quarter totaled $55.3 million,
compared with the prior year's $47.0 million. Net income for the period was
$15.6 million, or $0.37 per diluted common share, versus $17.6 million, or
$0.42 per diluted common share, for the second 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 second quarter of 2004, compared with $28.2 million for the
same period in 2003. FFO per diluted common share for the second quarter of
2004 totaled $0.69, compared with $0.68 for the second quarter of 2003. A
reconciliation of FFO to net income follows.
Revenues for the six months ended June 30, 2004 totaled $106.9 million
compared with the prior year's $94.0 million. Net income for the six-month
period was $33.4 million, or $0.79 per diluted common share, versus $36.2
million, or $0.87 per diluted common share, for the first six months of 2003.
Diluted funds from operations totaled $58.2 million for the first six months
ended June 30, 2004, compared with $56.7 million for the same period ended June
30, 2003. Funds from operations, per diluted common share, for the first six
months of 2004 was $1.37, versus $1.36 for the same period in 2003.
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, 2004, the Company had investments of
approximately $1.8 billion in 237 real estate properties or mortgages, totaling
approximately 12.7 million square feet. The Company's portfolio was comprised
of six major facility types, located in 32 states. The Company provided
property management services to approximately 6.6 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 Second Quarter Results
Page Two
July 29, 2004
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,
----------------------------- --------------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
REVENUES:
Master lease rental income $ 22,710 $ 21,970 $ 45,720 $ 44,310
Property operating income 28,392 21,385 53,157 41,186
Straight line rent 308 572 490 1,191
Mortgage interest income 2,819 2,286 5,632 4,967
Interest and other income 1,054 762 1,948 2,342
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55,283 46,975 106,947 93,996
EXPENSES:
General and administrative 2,823 2,865 6,240 5,534
Property operating expenses 13,061 8,637 23,424 16,298
Interest 11,783 8,565 20,755 17,010
Depreciation 11,978 10,492 23,065 20,619
Amortization 13 13 26 27
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39,658 30,572 73,510 59,488
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INCOME FROM CONTINUING OPERATIONS 15,625 16,403 33,437 34,508
DISCONTINUED OPERATIONS:
Operating income from discontinued operations 0 1,439 0 1,903
Gain (loss) on sale of real estate properties 0 (208) 0 (208)
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0 1,231 0 1,695
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NET INCOME $ 15,625 $ 17,634 $ 33,437 $ 36,203
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BASIC EARNINGS PER COMMON SHARE:
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE $ 0.37 $ 0.40 $ 0.80 $ 0.84
============================= ================================
DISCONTINUED OPERATIONS PER COMMON SHARE $ 0.00 $ 0.03 $ 0.00 $ 0.05
============================= ================================
NET INCOME PER COMMON SHARE $ 0.37 $ 0.43 $ 0.80 $ 0.89
============================= ================================
DILUTED EARNINGS PER COMMON SHARE:
INCOME FROM CONTINUING OPERATIONS PER COMMON SHARE $ 0.37 $ 0.39 $ 0.79 $ 0.83
============================= ================================
DISCONTINUED OPERATIONS PER COMMON SHARE $ 0.00 $ 0.03 $ 0.00 $ 0.04
============================= ================================
NET INCOME PER COMMON SHARE $ 0.37 $ 0.42 $ 0.79 $ 0.87
============================= ================================
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING - BASIC 41,741,375 40,905,717 41,723,754 40,864,745
============================= ================================
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING - DILUTED 42,414,150 41,635,351 42,434,219 41,610,718
============================= ================================
HR Reports Second Quarter Results
Page Three
July 29, 2004
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,
------------------------------ ------------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
NET INCOME (2) $ 15,625 $ 17,634 $ 33,437 $ 36,203
NET (GAIN) LOSS ON SALE OF REAL ESTATE PROPERTIES 567 208 567 208
REAL ESTATE DEPRECIATION AND AMORTIZATION 12,900 10,341 24,182 20,319
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TOTAL ADJUSTMENTS 13,467 10,549 24,749 20,527
----------- ----------- ----------- -----------
FUNDS FROM OPERATIONS - BASIC AND DILUTED $ 29,092 $ 28,183 $ 58,186 $ 56,730
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FUNDS FROM OPERATIONS PER COMMON SHARE - BASIC $ 0.70 $ 0.69 $ 1.39 $ 1.39
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FUNDS FROM OPERATIONS PER COMMON SHARE - DILUTED $ 0.69 $ 0.68 $ 1.37 $ 1.36
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC 41,741,375 40,905,717 41,723,754 40,864,745
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED 42,414,150 41,635,351 42,434,219 41,610,718
=========== =========== =========== ===========
(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 $849 thousand and
$686 thousand, respectively, for the three months ended June 30, 2004
and 2003, and $1.7 million and $1.4 million, respectively, for the six
months ended June 30, 2004 and 2003.
Healthcare Realty Trust maintains a website: www.healthcarerealty.com
to provide general corporate, investor and financial information.
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