Healthcare Realty Trust Inc 8-k (events Or Changes Between Quarterly Reports) 2009-02-23

Processed and formatted by SEC Watch - Visit SECWatch.com

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549

FORM 8-K CURRENT REPORT Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): February 23, 2009 (February 23, 2009)

HEALTHCARE REALTY TRUST INCORPORATED (Exact Name of Registrant as Specified in Charter) MARYLAND (State or other jurisdiction of incorporation)

001-11852 (Commission File Number)

62-1507028 (I.R.S. Employer Identification No.)

3310 West End Avenue, Suite 700, Nashville, Tennessee 37203 (Address of principal executive offices) (Zip Code) (615) 269-8175 (Registrant’s telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Processed and formatted by SEC Watch - Visit SECWatch.com

Item 2.02 Results of Operations and Financial Condition On February 23, 2009, Healthcare Realty Trust Incorporated issued a press release announcing its earnings for the fourth quarter ended December 31, 2008. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety. Item 7.01 Regulation FD Disclosure Healthcare Realty Trust is furnishing its Supplemental Information for the three months ended December 31, 2008, which is also contained on its website (www.healthcarerealty.com). See Exhibit 99.2 to this Current Report on Form 8-K. Item 9.01 Financial Statements and Exhibits 99.1

Fourth quarter earnings press release, dated February 23, 2009.

99.2

Supplemental Information for the three months ended December 31, 2008.

Processed and formatted by SEC Watch - Visit SECWatch.com

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HEALTHCARE REALTY TRUST INCORPORATED By

/s/ Scott W. Holmes Scott W. Holmes Executive Vice President and Chief Financial Officer

Date: February 23, 2009

Exhibit 99.1 HEALTHCARE REALTY Scott W. Holmes Executive Vice President & Chief Financial Officer P 615.269.8175 www.healthcarerealty.com NEWS RELEASE HEALTHCARE REALTY TRUST ANNOUNCES FOURTH QUARTER RESULTS NASHVILLE, Tennessee February 23, 2009 — Healthcare Realty Trust Incorporated (NYSE:HR) today announced results for the fourth quarter ended December 31, 2008. Funds from operations (“FFO”) per diluted common share for the three months ended December 31, 2008 totaled $0.49, which includes the net positive effect of certain one-time items totaling $6.5 million, or $0.11 per diluted common share, compared with FFO per diluted common share for the three months ended December 31, 2007, which totaled $0.39. FFO per diluted common share totaled $1.63 for the twelve months ended December 31, 2008, compared with the prior year’s $1.51. Funds available for distribution (“FAD”) for the three months ended December 31, 2008 totaled $0.54 per diluted common share. Revenues for the three months ended December 31, 2008 totaled $57.1 million, compared with the prior year’s $50.3 million. Revenues for the twelve months ended December 31, 2008 totaled $214.2 million, compared with the prior year’s $197.4 million. Income from continuing operations for the three months ended December 31, 2008 totaled $6.8 million, compared with $3.3 million for the three months ended December 31, 2007. Income from continuing operations for the twelve months ended December 31, 2008 totaled $18.2 million, compared with the prior year’s $11.2 million. Net income for the three months ended December 31, 2008 totaled $15.6 million, or $0.27 per diluted common share, versus $4.6 million, or $0.09 per diluted common share, for the three months ended 2007. Net income for the twelve months ended December 31, 2008 totaled $41.7 million, or $0.79 per diluted common share, compared with $60.1 million, or $1.24 per diluted common share for the twelve months ended December 31, 2007. Net income for the twelve months ended December 31, 2008, as compared to 2007, was affected by the disposition of the senior living assets and resulting gain included in discontinued operations in 2007. Healthcare Realty Trust is a real estate investment trust that integrates owning, managing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. The Company had investments of approximately $2.1 billion in 198 real estate properties and mortgages as of December 31, 2008, excluding assets classified as held for sale and including investments in two unconsolidated joint ventures. The Company’s 192 owned real estate properties, excluding assets classified as held for sale, are comprised of six facility types, located in 27 states, totaling approximately 11.7 million square feet. The Company provides property management services to approximately 8.5 million square feet nationwide. The Company directs interested parties to its Internet site, www.healthcarerealty.com, where 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 filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2008 under the heading “Risk Factors,” and as may be updated in its Quarterly Reports on Form 10-Q filed thereafter. 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.

Processed and formatted by SEC Watch - Visit SECWatch.com (HEALTHCARE REALTY LOGO)

Processed and formatted by SEC Watch - Visit SECWatch.com

HEALTHCARE REALTY TRUST INCORPORATED Consolidated Statements of Income (1) (Dollars in thousands, except per share data) Th re e Mon ths En de d De ce m be r 31, 2008 2007

Twe lve Mon ths En de d De ce m be r 31, 2008 2007

(Unau dite d)

REVENUES Master lease rent Property operating Straight-line rent Mortgage interest Other operating

$

EXPENSES General and administrative Property operating Impairment Bad debts, net of recoveries Depreciation Amortization

14,743 37,052 709 561 4,009 57,074

$

14,141 31,433 279 536 3,908 50,297

$

58,412 136,745 622 2,207 16,255 214,241

$

56,401 121,644 934 1,752 16,640 197,371

5,588 23,204 — 1,478 13,043 930 44,243

4,889 18,344 — 92 11,419 931 35,675

23,514 82,420 1,600 1,833 48,283 2,849 160,499

20,619 71,671 — 222 42,254 4,528 139,294

2,079 (9,748) 1,632 (6,037)

— (11,488) 133 (11,355)

4,102 (42,126) 2,440 (35,584)

— (48,307) 1,459 (46,848)

INCOME FROM CONTINUING OPERATIONS

6,794

3,267

18,158

11,229

DISCONTINUED OPERATIONS (2) Income from discontinued operations Impairments Gain on sales of real estate properties INCOME FROM DISCONTINUED OPERATIONS

8,917 (857) 745 8,805

2,615 (240) (1,054) 1,321

14,577 (886) 9,843 23,534

15,517 (7,089) 40,405 48,833

OTHER INCOME (EXPENSE) Gain on extinguishment of debt, net Interest expense Interest and other income, net

NET INCOME

$

15,599

$

4,588

$

41,692

$

60,062

BASIC EARNINGS PER COMMON SHARE Income from continuing operations per common share

$

0.12

$

0.07

$

0.35

$

0.24

Discontinued operations per common share Net income per common share DILUTED EARNINGS PER COMMON SHARE Income from continuing operations per common share

0.15

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — BASIC

0.46

1.02

$

0.27

$

0.09

$

0.81

$

1.26

$

0.12

$

0.06

$

0.35

$

0.23

Discontinued operations per common share Net income per common share

0.02

0.15 $

0.27

57,765,614

0.03 $

0.09

49,488,943

0.44 $

0.79

51,547,279

1.01 $

1.24

47,536,133

Processed and formatted by SEC Watch - Visit SECWatch.com

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — DILUTED

58,705,348

50,348,217

52,564,944

48,291,330

(1)

The Consolidated Statements of Income do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

(2)

In accordance with SFAS No. 144, “Accounting for Impairment or Disposal of Long-Lived Assets,” the Company reports real estate properties and related assets and liabilities to be sold as held for sale and includes the results of operations of real estate properties sold or held for sale in discontinued operations on the Company’s Consolidated Statements of Income. 2

Processed and formatted by SEC Watch - Visit SECWatch.com

HEALTHCARE REALTY TRUST INCORPORATED Consolidated Statements of Cash Flows (1) (Dollars in thousands) (Unaudited) Th re e Mon ths En de d De ce m be r 31, 2008 2007

Cash flows from operating activities: Net income Non-cash items: Depreciation and amortization — real estate Depreciation and amortization — other Provision for bad debt, net of recoveries Impairments Straight-line rent receivable Straight-line rent liability Equity in (income) losses from unconsolidated joint ventures Consolidated losses from variable interest entities Stock-based compensation Provision for deferred post-retirement benefits Other non-cash items Total non-cash items

$

Other items: Accounts payable and accrued liabilities Other liabilities Other assets Gain on sales of real estate properties Gain on sale of land Gain on extinguishment of debt State income taxes paid, net of refunds Total other items Net cash provided by operating activities Cash flows from investing activities: Acquisition and development of real estate properties Funding of mortgages and notes receivable Distributions received from unconsolidated joint ventures Partial redemption of preferred equity investment in unconsolidated joint ventures Proceeds from sales of real estate Proceeds from mortgages and notes receivable repayments Net cash provided by (used in) investing activities Cash flows from financing activities: Net borrowings (repayments) on unsecured credit facility Borrowings on notes and bonds payable Repayments on notes and bonds payable Repurchase of notes payable Special dividend paid Quarterly dividends paid Proceeds from issuance of common stock Equity issuance costs Common stock redemption Credit facility amendment and extension fees Net cash provided by (used in) financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period

$

15,599

$

4,588

Twe lve Mon ths En de d De ce m be r 31, 2008 2007

$

41,692

$

60,062

13,769 811 1,478 857 (718) 276 (1,114) — (707) 2,510 (13) 17,149

13,081 551 83 240 (308) 46 250 24 1,002 779 87 15,835

52,069 2,679 1,904 2,486 (643) 423 (1,021) — 2,780 4,992 559 66,228

51,692 2,232 198 7,089 (1,043) 954 309 700 4,678 2,323 195 69,327

(6,556) 3,812 1,765 (745) (384) (2,079) 39 (4,148) 28,600

(235) 3,897 1,407 1,054 — — (30) 6,093 26,516

3,097 3,740 6,794 (9,843) (384) (4,102) (612) (1,310) 106,610

(2,065) 4,445 (307) (40,405) — — (137) (38,469) 90,920

(245,250) (24,451) —

(24,084) (10,739) 287

(383,702) (36,970) 882

(130,799) (14,759) 1,414

— 12,452 5,602 (251,647)

— 14,586 27 (19,923)

5,546 37,133 8,236 (368,875)

— 311,927 65,572 233,355

261,000 — (1,093) (14,222) — (22,692) 193 (357) — (800) 222,029

6,000 — (884) — — (19,514) 220 (16) — — (14,194)

193,000 — (3,813) (45,460) — (81,301) 197,255 (389) (282) (1,126) 257,884

(54,000) 1,840 (7,440) — (227,157) (101,137) 70,780 (206) (386) — (317,706)

(1,018) 5,156 4,138

(7,601) 16,120 $ 8,519

(4,381) 8,519 4,138

6,569 1,950 8,519

$

$

Processed and formatted by SEC Watch - Visit SECWatch.com

(1)

The Consolidated Statements of Cash Flows do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. 3

Processed and formatted by SEC Watch - Visit SECWatch.com

RECONCILIATION OF FUNDS FROM OPERATIONS (1) (2): (Dollars in thousands, except per share data) (Unaudited) Th re e Mon ths En de d De ce m be r 31, 2008 2007

Net Income

$

Gain on sales of real estate properties Real estate depreciation and amortization Total adjustments

15,599

$

(1,129) 14,094 12,965

4,588

Twe lve Mon ths En de d De ce m be r 31, 2008 2007

$

1,054 13,764 14,818

41,692

$

(10,227) 53,972 43,745

60,062 (40,405) 53,499 13,094

Funds From Operations — Basic and Diluted

$

28,564

$

19,406

$

85,437

$

73,156

Funds From Operations Per Common Share — Basic

$

0.49

$

0.39

$

1.66

$

1.54

Funds From Operations Per Common Share — Diluted

$

0.49

$

0.39

$

1.63

$

1.51

Weighted Average Common Shares Outstanding — Basic

57,765,614

49,488,943

51,547,279

47,536,133

Weighted Average Common Shares Outstanding — Diluted

58,705,348

50,348,217

52,564,944

48,291,330

RECONCILIATION OF FUNDS AVAILABLE FOR DISTRIBUTION (2): (Dollars in thousands, except per share data) (Unaudited) Th re e Mon ths En de d De ce m be r 31, 2008

Net Income

$

Gain on sales of real estate properties Total non-cash items included in cash flows from operating activities (3)

15,599 (1,129) 17,149

Funds Available For Distribution

$

31,619

Funds Available For Distribution Per Common Share — Diluted

$

0.54

Weighted Average Common Shares Outstanding — Diluted

58,705,348

(1)

Funds from operations (“FFO”) is calculated according to the definition of the National Association of Real Estate Investment Trusts and is comprised primarily of net income and depreciation from real estate, but is not adjusted for certain non-cash income and expense items. Gains on the sale of real estate properties are excluded from FFO and FFO per share, while impairments are included in FFO and FFO per share.

(2)

FFO and Funds Available For Distribution (“FAD”) do not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States and are not necessarily indicative of cash available to fund cash needs. FFO and FAD should not be considered alternatives to net income as indicators of the Company’s operating performance or as alternatives to cash flow as measures of liquidity.

(3)

See the Consolidated Statements of Cash Flows that are included in this earnings release. 4

Exhibit 99.2 SUPPLEMENTAL INFORMATION Three Months Ended December 31, 2008

Processed and formatted by SEC Watch - Visit SECWatch.com

Dollars in thousands, except per share data, unless otherwise disclosed Furnished as of February 23, 2009 (Unaudited) (HEALTHCARE REALTY LOGO)

Copies of this report may be obtained at www.healthcarerealty.com or by contacting Gabrielle M. Andrés at 615.269.8471 or [email protected] In addition to the historical information contained within, the matters discussed in this report may contain forward-looking statements that involve estimates, assumptions, risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2008 under the heading “Risk Factors,” and as may be updated in its Quarterly Reports on Form 10-Q filed thereafter. Forward-looking statements represent the Company’s judgment as of the date of this report. The Company disclaims any obligation to update these estimates, assumptions and other forward-looking material. Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 1 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

TABLE OF CONTENTS Schedule 1 - Corporate Information

3

Schedule 2 - Consolidated Balance Sheets

4

Schedule 3 - Investment Progression

5

Schedule 4 - Investment by Type and Geographic Location

6

Schedule 5 - Development Properties

7

Schedule 6 - Square Feet Owned and/or Managed

8

Schedule 7 - Lease Maturity Schedule

9

Schedule 8 - Unconsolidated Joint Ventures

9

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 2 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(1)

CORPORATE INFORMATION A)

Corporate Headquarters: Healthcare Realty Trust Incorporated Healthcare Realty Services Incorporated 3310 West End Avenue, Suite 700 Nashville, TN 37203 Phone: 615.269.8175 Fax: 615.269.8461 E-mail: [email protected]

B)

Stock Exchange, Symbol and CUSIP Number: S e cu rity De scription

Common Stock Senior Notes due 2011 Senior Notes due 2014 C)

Web Site: www.healthcarerealty.com

D)

Executive Officers:

S tock Exch an ge

S ym bol

C US IP Nu m be r

NYSE OTC OTC

HR HR HR

421946104 421946AE4 421946AF1

David R. Emery, Chairman of the Board and Chief Executive Officer John M. Bryant, Jr., Executive Vice President and General Counsel Scott W. Holmes, Executive Vice President and Chief Financial Officer B. Douglas Whitman, II, Executive Vice President and Chief Operating Officer E)

Board of Directors: David R. Emery, Chairman of the Board and Chief Executive Officer, Healthcare Realty Trust Incorporated Errol L. Biggs, Ph.D., Director, Graduate Programs in Health Administration, University of Colorado C. Raymond Fernandez, M.D., Retired Chief Executive Officer, Piedmont Clinic Batey M. Gresham, Jr., A.I.A., Founder, Gresham Smith & Partners Marliese E. Mooney, Independent Healthcare Consultant Edwin B. Morris III, Managing Director, Morris & Morse Company Inc. J. Knox Singleton, President and Chief Executive Officer, Inova Health Systems Bruce D. Sullivan, Retired Audit Partner, Ernst & Young LLP Dan S. Wilford, Retired President and Chief Executive Officer, Memorial Hermann Healthcare System

F)

Professional Affiliations: Independent Registered Public Accounting Firm BDO Seidman, LLP 414 Union Street, Suite 1800 Nashville, TN 37219 Transfer Agent Computershare Trust Company, N.A. P.O. Box 43010 Providence, RI 02940-3010 Phone: 1-800-733-5001

G)

Dividend Reinvestment Plan: Through the Company’s transfer agent, Computershare, named stockholders of record can re-invest dividends in shares at a 5% discount without a service or sales charge. In addition, up to $60,000 of HR common stock may be purchased per calendar year through the transfer agent without a service or sales charge to the shareholder. For information, write Computershare, Investor Services, P.O. Box 43010, Providence, RI 02940-3010, or call 1-800-733-5001. Information may also be obtained at the transfer agent’s website, www.computershare.com.

H)

Direct Deposit of Dividends: Direct deposit of dividends is offered as a convenience to stockholders of record. For information, write Computershare, Investor Services, P.O. Box 43010, Providence, RI 02940-3010, or call 1-800-733-5001.

I)

Investor Relations: Healthcare Realty Trust Incorporated 3310 West End Avenue, Suite 700 Nashville, TN 37203 Attention: Gabrielle M. Andrés

Processed and formatted by SEC Watch - Visit SECWatch.com

Phone: 615.269.8471 Fax: 615.269.8461 E-mail: [email protected] Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 3 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(2)

CONSOLIDATED BALANCE SHEETS De ce m be r 31, 2008

De ce m be r 31, 2007

$

$

ASSETS Real estate properties: Land Buildings, improvements, and lease intangibles Personal property Construction in progress Less accumulated depreciation Total real estate properties, net

107,555 1,792,402 16,985 84,782 2,001,724 (367,360) 1,634,364

102,321 1,483,547 16,305 94,457 1,696,630 (345,457) 1,351,173

Cash and cash equivalents

4,138

8,519

Mortgage notes receivable

59,001

30,117

Assets held for sale and discontinued operations, net (1)

90,233

15,639

Other assets, net

77,044

90,044

Total assets

$

1,864,780

$

1,495,492

$

940,186

$

785,289

LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Notes and bonds payable Accounts payable and accrued liabilities

45,937

37,376

Liabilities held for sale and discontinued operations (1)

32,821

34

Other liabilities

51,016

40,798

1,069,960

863,497

—

—

592

507

1,490,535

1,286,071

(6,461)

(4,346)

736,874

695,182

(1,426,720)

(1,345,419)

794,820

631,995

Total liabilities Commitments and contingencies Stockholders’ equity: Preferred stock, $.01 par value; 50,000,000 shares authorized; none issued and outstanding Common stock, $.01 par value; 150,000,000 shares authorized; 59,246,284 and 50,691,331 shares issued and outstanding at December 31, 2008 and December 31, 2007, respectively Additional paid-in capital Accumulated other comprehensive loss Cumulative net income Cumulative dividends Total stockholders’ equity Total liabilities and stockholders’ equity

(1)

$

1,864,780

$

1,495,492

In accordance with SFAS No. 144, “Accounting for Impairment or Disposal of Long-Lived Assets,” the Company reports real estate properties and related assets and liabilities to be sold as held for sale on the Company’s Consolidated Balance Sheets and includes the results of operations of real estate properties sold or held for sale in discontinued operations on the Company’s Consolidated Statements of Income.

Processed and formatted by SEC Watch - Visit SECWatch.com

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 4 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(3)

INVESTMENT PROGRESSION A)

Construction in Progress Th re e Mon ths En de d De ce m be r 31, 2008

Nu m be r of Prope rtie s

Twe lve Mon ths En de d De ce m be r 31, 2008

7

$ 100,888

10

$ 94,457

0 (2) (1) 0 4

27,497 (35,190) 0 (8,413) $ 84,782

0 (5) (1) 0 4

74,085 (75,347) 0 (8,413) $ 84,782

Nu m be r of Prope rtie s

Balance at beginning of period Fundings on projects in existence at the beginning of the period Completions (1) CIP — Moved to Land Held for Development Land Held for Development — Disposition Balance at end of period B)

Real Estate Properties

Balance at beginning of period Acquisitions (2) Additions/Improvements Completions (CIP) (1) Assets classified as held for sale during the period (3) Dispositions (4) Balance at end of period C)

Nu m be r of Prope rtie s

Th re e Mon ths En de d De ce m be r 31, 2008

Nu m be r of Prope rtie s

Twe lve Mon ths En de d De ce m be r 31, 2008

166 24 0 2

$ 1,649,011 259,043 6,927 35,190

170 27 0 5

$ 1,602,173 335,603 27,572 75,347

(3) (1) 188

(32,214) (1,015) $ 1,916,942

(10) (4) 188

(116,808) (6,945) $ 1,916,942

Mortgage Notes Receivable

Nu m be r of Inve stm e n ts

Balance at beginning of period Fundings of new mortgages Fundings on mortgages in existence at the beginning of the period Principal reductions Repayments in full Scheduled principal payments Balance at end of period D)

Th re e Mon ths En de d De ce m be r 31, 2008

Nu m be r of Inve stm e n ts

Twe lve Mon ths En de d De ce m be r 31, 2008

3 1

$ 40,112 7,996

4 1

$ 30,117 7,996

0 0 0 0 4

16,455 (5,553) 0 (9) $ 59,001

0 0 (1) 0 4

28,974 (5,553) (2,504) (29) $ 59,001

Unconsolidated Joint Ventures

Nu m be r of Inve stm e n ts

Balance at beginning of period Equity in income (losses) recognized during the period Parital redemption of preferred equity investment Acquisition of remaining equity interest in joint venture (2) Distributions received during the period Balance at end of period

Th re e Mon ths En de d De ce m be r 31, 2008

Nu m be r of Inve stm e n ts

Twe lve Mon ths En de d De ce m be r 31, 2008

3

$ 11,835

3

$ 18,356

0

1,114

0

1,021

0

0

0

(5,546)

(1) 0 2

(10,165) 0 $ 2,784

(1) 0 2

(10,165) (882) $ 2,784

Processed and formatted by SEC Watch - Visit SECWatch.com

(1)

During the fourth quarter of 2008, the Company substantially completed development of two medical office buildings in Arizona.

(2)

During the fourth quarter of 2008, the Company acquired fifteen medical office buildings in North and South Carolina and one medical office building in Indiana. In addition, the Company acquired the remaining interest in a joint venture which owns five medical office buildings in Washington. Also, the Company acquired an 80% controlling interest in three joint ventures that concurrently purchased a medical office building, a physician clinic and a specialty outpatient facility in Iowa. The accounts of the joint ventures are included in the Company’s Consolidated Financial Statements.

(3)

During the fourth quarter of 2008, the Company entered into contracts to sell medical office buildings in Wyoming, Washington and Florida, and reclassified the buildings to held for sale.

(4)

During the fourth quarter of 2008, the Company sold a medical office building in Virginia.

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 5 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(4) INVESTMENT BY TYPE AND GEOGRAPHIC LOCATION (1) Me dical O ffice (MO B) Maste r Le ase s 1 Alabama 2 Arkansas 3 California 4 Florida 5 Georgia 6 Illinois 7 Iowa 8 Indiana 9 Massachusetts 10 Michigan 11 Missouri 12 Nevada 13 Pennsylvania 14 T ennessee 15 T exas 16 Virginia 17 Washington

Me dical O ffice /O u tpatie n t Physician Am bu latory S pe cialty C lin ics C are /S u rge ry O u tpatie n t (PC ) (ASC ) (SO P) $ 17,660

$

O the r (O TH)

$ 17,722

$ 9,493

Total

2.3% 0.1% 1.0% 4.8% 0.7% 0.7% 0.5% 3.3% 0.6% 0.6% 1.0% 0.6% 5.6% 1.3% 2.0% 2.4% 0.9%

$ 585,398

28.4%

(3) Norm aliz e d sam e facility NO I growth for Maste r Le ase s (4Q 2008 vs. 4Q 2007):

2.9%

8,363 37,372 2,683

$

9,520 3,132 1,486

12,688 11,703

3,411

1,801 21,597 12,035

$

2,156 43,406

3,790 13,105

4,913 3,801

8,011

16,370 113,867

18,701

7,640 3,714 30,918

17,314

$136,143

$ 40,166

7,020 19,529 Maste r Le ase s

$ 116,400

O pe ratin g Prope rtie s 1 Arizona 2 California 3 Colorado 4 District of Columbia 5 Florida 6 Hawaii 7 Illinois 8 Indiana 9 Kansas 10 Louisiana 11 Maryland 12 Michigan 13 Mississippi 14 Missouri 15 North Carolina 16 Pennsylvania 17 South Carolina 18 T ennessee 19 T exas 20 Washington O pe ratin g Prope rtie s

66,658 65,525 21,981 29,959 94,844 53,968 33,377 27,771 13,657 11,685 15,684 22,183 7,677 20,139 140,614 10,798 10,953 164,605 436,388 39,427

19,225 2,166 $ 29,856

10,194 $218,611

$44,222

68,618 100,557 21,981 29,959 112,678 53,968 33,377 27,771 13,657 11,685 15,684 22,183 7,677 20,139 140,614 10,798 10,953 166,941 476,008 39,427

3.3% 4.9% 1.1% 1.5% 5.4% 2.6% 1.6% 1.3% 0.7% 0.6% 0.8% 1.1% 0.4% 1.0% 6.8% 0.5% 0.5% 8.1% 23.0% 1.9%

$1,384,675

67.1%

(3) Norm aliz e d sam e facility NO I growth for O pe ratin g Prope rtie s (4Q 2008 vs. 4Q 2007):

3.0%

17,301 14,350

0.8% 0.7% 96.9%

$1,287,893

1,960 35,032

17,834

2,336 15,461

24,159

$ 37,591

$ 59,191

$

—

$

—

$

—

Lan d He ld for De ve lopm e n t C orporate Prope rty Total Equ ity In ve stm e n ts

$1,404,293

$173,734

$ 99,357

$ 29,856

$218,611

$44,222

$2,001,724

Ave rage Age of Facility (ye ars)

18

20

19

14

20

37

19

4Q 2008 Econ om ic O ccupancy (4)

84%

97%

89%

88%

100%

93%

87%

4Q 2008 S tabiliz e d O ccupancy (4)

89%

97%

89%

89%

100%

93%

91%

Mortgage Inve stm e n ts Mortgage Inve stm e n ts

$

Un con solidate d Join t Ve n ture s 1 Oregon 2 Utah Join t Ve n ture Inve stm e n ts

34,160

16,845

34,160

$ 16,845

7,996 $

7,996

$

—

$

—

$

—

$

1,702 1,082 $

% of Total

47,573 3,055 21,051 99,332 13,600 13,424 10,047 68,793 12,035 13,105 21,283 11,812 113,867 26,341 40,253 50,298 19,529

37,326 7,785 11,938 6,090

$ 2,698 3,055

S pe cialty Inpatie n t (SIP) (2)

1,702

$

—

$

—

$

—

$

—

$ 1,082

$

59,001

2.8%

59,001

2.8%

1,702 1,082

0.1% 0.1%

2,784

0.2%

Processed and formatted by SEC Watch - Visit SECWatch.com Total In ve stm e n ts

$1,440,155

Pe rce n t of $ In ve ste d Nu m be r of In ve stm e n ts

$190,579

$ 107,353

70.9%

9.4%

5.3%

123

33

12

$ 29,856

$218,611

1.5%

10.7%

7

12

$45,304 2.2% 11

$2,063,509

100.0%

100.0% 198

(1)

Excludes assets held for sale.

(2)

The Company’s inpatient rehabilitation facilities (included in SIP) have EBITDARM coverages of approximately 2.5 to 3.0 times.

(3)

The ‘same facility’ portfolio includes those properties that were in operation for the full quarter and for the full corresponding quarter of the prior year. The normalized same facility NOI growth rate in the portfolio is not representative of the entire portfolio. ''Normalized” means adjusted for items that would otherwise prohibit a meaningful comparison of NOI for the two periods. Approximately 79% of the Company’s owned real estate portfolio is included in the calculation of the ‘same facility’ NOI growth.

(4)

The economic and stabilized occupancies assume that properties under a Property Operating Agreement or Master Lease Agreement have 100% economic occupancy. The stabilized occupancies exclude development properties that were placed in service in the last 24 months. The average underlying tenant occupancy of the nine properties under Property Operating Agreements was approximately 64%.

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 6 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(5) DEVELOPMENT PROPERTIES CONSTRUCTION IN PROGRESS

S tate

Estim ate d C om ple tion Date

Prope rty Type

3Q 2009

MOB

C IP at Approxim ate De ce m be r 31, Prope rtie s S qu are Fe e t 2008

Estim ate d Re m aining Fu n dings

Estim ate d Total Inve stm e n t

Estim ate d S tabiliz ation Date

Under construction: Texas 4Q 2009

MOB

4Q 2009

MOB

1Q 2010

MOB

Illinois Texas Hawaii

1

135,000

$ 18,333

$ 14,667

$ 33,000

1

100,000

10,417

15,983

26,400

1

120,000

8,569

20,031

28,600

1

133,000

30,162

55,838

86,000

$ 106,519

$ 174,000

Land held for development: Texas (1) Texas

9,184 8,117 4

(1)

4Q 2011 4Q 2011 3Q 2012 1Q 2013

488,000

$ 84,782

During the fourth quarter of 2008, the Company reclassified a project from construction in progress to land held for development. STABILIZATION IN PROGRESS

S tate

Nu m be r of Prope rtie s

Date Tran sfe rre d from C IP

Prope rty Type

1

1Q 2007

MOB

Texas

S qu are Fe e t

171,033 1

2Q 2007

MOB

1

1Q 2008

MOB

2

3Q 2008

MOB

2

4Q 2008

MOB

Texas Texas Colorado Arizona

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Inve stm e n t at Estim ate d De ce m be r 31, Total 2008 Inve stm e n t

$

4Q 2008 NO I

Estim ate d S tabiliz ation Le ase d Date

23,347

$ 32,300

$ 236

50%

73,324

11,203

11,900

11

48%

140,221

20,869

24,900

191

47%

161,099

21,981

27,400

(434)

0%

180,256

35,472

42,700

(58)

0%

725,933

$ 112,872

$ 139,200

$ (54)

2Q 2010 1Q 2010 2Q 2011 4Q 2011 4Q 2011

Page 7 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(6) SQUARE FEET OWNED AND/OR MANAGED (1) A) By Geographic Location Nu m be r of Prope rtie s Th ird O wn e d Party Total 44 44 17 5 22 26 26 14 14 10 10 7 7 8 8 9 1 10 4 4 6 6 8 8 4 4 3 3 4 4 5 5 2 2 2 2 4 4 2 2 1 1 2 2 2 2 2 3 3 1 1 2 2 1 1 1 1

1 T exas 2 T ennessee 3 Florida 4 North Carolina 5 California 6 P ennsylvania 7 Virginia 8 Arizona 9 Illinois 10 Alabama 11 Michigan 12 Indiana 13 Hawaii 14 Washington 15 Missouri 16 District of Columbia 17 Colorado 18 Iowa 19 Louisiana 20 Mississippi 21 Maryland 22 Massachusetts 23 Georgia 24 Kansas 25 Nevada 26 South Carolina 27 Arkansas Total Prope rtie s / S qu are Fe e t

192

7

199

Not Man age d 213,292 75,000 546,884 93,000 437,601 476,204 115,100 327,535 121,672 205,499

O wn e d (2) Th ird Party C on stru ction Prope rty in Progre ss Man age d (3) Man age m e n t 255,000 2,985,544 1,278,736 252,883 607,425 724,291 458,955 63,914 382,338 142,955

100,000

59,106

199,749 102,566 173,502 141,058 106,146 182,836 161,099

133,000 91,561 81,580

145,457 133,211 58,036 94,664

39,648

84,242 78,779 70,908 47,904 39,801 11,963 3,153,273

488,000

8,107,734

351,637

Total 3,453,836 1,606,619 1,154,309 724,291 551,955 501,515 476,204 441,444 358,055 327,535 321,421 308,065 306,502 232,619 187,726 182,836 161,099 145,457 133,211 97,684 94,664 84,242 78,779 70,908 47,904 39,801 11,963

Pe rce n t 28.4% 13.3% 9.5% 6.0% 4.6% 4.1% 3.9% 3.7% 3.0% 2.7% 2.7% 2.6% 2.5% 1.9% 1.6% 1.5% 1.3% 1.2% 1.1% 0.8% 0.8% 0.7% 0.7% 0.6% 0.4% 0.3% 0.1%

12,100,644

100.0%

B) By Facility Type

Medical Office P hysician Clinics Specialty Inpatient Other Ambulatory Care/Surgery Specialty Outpatient Total Squ are Fe e t

Not Man age d 717,449 786,356 863,694 498,293

O wn e d C on stru ction in Progre ss Man age d (3) 488,000 7,606,578 232,866

160,200

428,490

8,107,734

11,749,007

Th ird Party Prope rty Man age m e n t 351,637

127,281 488,000

Pe rce n t of Total S qu are Footage

26.0%

4.0%

Total Num be r of Prope rtie s

64

4

C) By Occupancy

268,290

127,281 3,153,273

Total O wn e d 8,812,027 1,019,222 863,694 498,293

67.0%

97.0%

124

192

351,637

Total 9,163,664 1,019,222 863,694 498,293

Pe rce n t 75.7% 8.4% 7.1% 4.1%

428,490

3.5%

127,281

1.1%

12,100,644

100.0%

3.0%

100.0%

7

199

Processed and formatted by SEC Watch - Visit SECWatch.com

Medical Office

Occupants Greater than 1% 1 Baylor Health Care System 2 Healthsouth 3 Carolinas Healthcare System 4 HCA 5 Ascension Health Care System 6 OrthoIndy 7 Melbourne Internal Medicine Assocs All Other Occupants Less than 1% Total Square Feet

Physician Clinics

Ambulatory Care/Surgery

Specialty Outpatient

Specialty Inpatient

13,356

643,383

Other

845,251 16,878 545,659 30,495

235,600

8,749

16,400

202,059 58,474

117,525

134,520

Total

% of Total Square Feet

845,251 673,617

7.3% 5.7%

545,659 291,244

4.6% 2.5%

202,059 175,999

1.7% 1.5%

134,520

1.1%

7,188,563

590,628

402,863

113,925

102,786

481,893

8,880,658

75.6%

8,812,027

1,019,222

428,490

127,281

863,694

498,293

11,749,007

100.0%

(1)

Mortgage notes, investments in unconsolidated limited liability companies and assets classified as held for sale are excluded.

(2)

Approximately 70% of the portfolio is considered to be located on or adjacent to a hospital campus.

(3)

Excludes mortgage notes, investments in unconsolidated joint ventures and assets classified as held for sale, as well as third party managed properties. The owned and managed portfolio consists of 1,478 leases with an average of 4,130 square feet per lease.

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 8 of 9

Processed and formatted by SEC Watch - Visit SECWatch.com

(7) LEASE MATURITY SCHEDULE (1) An n u aliz e d Min im u m Re n ts (2)

2009 2010 2011 2012 2013 2014 2015 2016 2017 Thereafter

$41,477 22,017 22,361 22,316 28,454 12,177 5,992 7,911 12,305 24,244

Nu m be r of Le ase s

Ave rage S qu are Fe e t Pe r Le ase

Pe rce n tage of Re ve n u e s

457 257 220 179 153 67 42 22 31 115

20.8% 11.0% 11.2% 11.2% 14.3% 6.1% 3.0% 4.0% 6.2% 12.2%

4,235 (3) 3,943 4,243 5,407 7,705 8,181 7,667 13,392 20,706 10,199

(1)

Mortgage notes receivable, investments in unconsolidated joint ventures and assets classified as held for sale are excluded.

(2)

Represents the annualized minimum rents on leases in place, excluding the impact of renewals, future stepups in rent, or sponsor support payments under property operating agreements.

(3)

Based on square footage, the lease expirations in 2009 are approximately 27% master leases and 73% multitenant leases. The average size of these maturing leases is approximately 4,235 square feet. Of the multitenant leases expiring, approximately 86% of the square footage is on-campus and approximately 34% of the square footage represents maturing five-year leases with major hospital tenants resulting from the Company’s acquisitions in 2004 with Baylor Health Systems, Ascension Health Care Systems, MedStar Health, and Advocate Health Care. Considering the very high percentage of expiring multi-tenant leases being on-campus and with hospitals for outpatient services on the various campuses, the Company fully expects to renew the majority of these leases at market rates.

(8) UNCONSOLIDATED JOINT VENTURES O re gon

HR Ownership % HR Investment in JV, net (1) Income recorded by HR (2) Real Estate Depreciation and Amortization (3) Facility type Total unconsolidated assets of JV (4) Total unconsolidated debt of JV (4) Total unconsolidated equity of JV (4)

Utah

50% $ 1,702 $ 89

10% $ 1,082 $ 72

$

$

74 MOB $16,112 $12,597 $ 3,159

— OTH $34,669 $32,132 $ 2,537

(1)

At December 31, 2008.

(2)

Included in “Interest and other income, net” on the Company’s Consolidated Statements of Income for the three months ended December 31, 2008. In addition, the Company recorded JV income of $1,025 for the three months ended December 31, 2008 related to a joint venture in which the Company acquired the remaining equity interest during the fourth quarter of 2008.

(3)

The amount of real estate depreciation and amortization for the three months ended December 31, 2008 included in equity income (loss) recorded by the Company related to its joint venture investments accounted for under the equity method. Also, the Company recorded depreciation and amortization of $251 related to a joint venture in which the Company acquired the remaining equity interest during the fourth quarter of 2008. The Company adds these amounts back to net income in its calculation of funds from operations (FFO).

(4)

Unaudited information provided by the joint venture.

Healthcare Realty Trust Incorporated Supplemental Information Three Months Ended December 31, 2008

Page 9 of 9