Healthcare Realty Trust Reports Normalized FFO Of $0.42 Per Share For The Second Quarter

NASHVILLE, Tenn., Aug. 03, 2016 (GLOBE NEWSWIRE) -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the second quarter ended June 30, 2016. Normalized FFO for the three months ended June 30, 2016 totaled $0.42 per diluted common share. Revenue for the second quarter grew by $5.9 million to $102.6 million compared to the same quarter in 2015. The Company reported net income of $12.1 million or $0.12 per share for the quarter.

Salient highlights include:
  • Normalized FFO for the second quarter grew 10.7% year-over-year to $44.1 million.  Over the same time period, normalized FFO per share increased 5.0%.
  • For the trailing twelve months ended June 30, 2016, same store revenue grew 4.0%, operating expenses increased 3.4%, and same store NOI grew 4.3%.
  • Same store revenue per average occupied square foot increased 3.3% over the prior year.
  • Average same store occupancy increased to 89.9% from 89.3% a year ago.
  • Leasing activity totaled 418,000 square feet related to 137 leases:
    • 260,000 square feet of renewals
    • 158,000 square feet of new and expansion leases
  • Four predictive growth measures in the same store multi-tenant portfolio:
    • Contractual rent increases occurring in the quarter averaged 2.9%
    • Cash leasing spreads were 6.3% on 228,000 square feet renewed: 0% of square feet (<0% spread), 12% (0-3%), 41% (3-4%) and 47% (>4%)
    • Tenant retention was 81.2%
    • The average yield on renewed leases increased 90 basis points
  • In April 2016, the Company acquired a 100% leased, 46,600 square foot medical office building in Seattle, Washington for a purchase price of $21.6 million. The property is located on UW Medicine's Valley Medical Center campus.
  • In May 2016, the Company acquired an 80% leased, 63,000 square foot medical office building in Los Angeles, California for a purchase price of $20.0 million. The property is located on HCA's West Hills Hospital and Medical Center campus.
  • The Company is working on the acquisition of two MOBs for a combined purchase price of $98 million and expects to close in October 2016.  These properties total 191,000 square feet, are 100% leased, and are on hospital campuses in Seattle and Washington, D.C.
  • On July 5, 2016, the Company completed the sale of 9.2 million shares of common stock for net proceeds of approximately $304.6 million to fund investment activity.
  • During the second quarter, the Company sold 2.4 million shares through the at-the-market (ATM) program, generating net proceeds of $74.9 million.
  • In July 2016, the Company renewed its $700 million unsecured credit facility. The new credit facility includes 14 banks and matures in July 2020 with an option to extend the facility for an additional year.
  • In July 2016, S&P Global Ratings upgraded the Company's senior unsecured debt rating to BBB.
  • A dividend of $0.30 per common share was declared, which is equal to 71.4% of normalized FFO per share.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States.  As of June 30, 2016, the Company had investments of approximately $3.4 billion in 202 real estate properties located in 30 states totaling approximately 14.5 million square feet.  The Company provided leasing and property management services to approximately 10.0 million square feet nationwide.

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