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SANTA ANA, Calif., July 1 /PRNewswire/ — Grubb & Ellis Healthcare REIT, Inc. today announced the acquisition of Medical Portfolio 3, a collection of 13 healthcare-related properties comprising 20 buildings, located throughout Indianapolis.
Medical Portfolio 3 consists of approximately 689,000 square feet of gross leaseable area. The portfolio is 91 percent leased, and is primarily anchored by Clarian health Partners, which has occupancy in nine of the 13 properties for an approximate gross leaseable area of 325,000 square feet.
Clarian Health, one of the largest healthcare providers in Indiana, is a consolidated healthcare organization that is comprised of Methodist Hospital, Indiana University Hospital and Riley Hospital for Children. The nine properties leased to Clarian health represent the company’s “Beltway Strategy,” an initiative to provide a network of state-of-the-art medical facilities and services to the community in convenient locations off or near the Indianapolis beltway, Interstate 465, delivering quality care and convenience to the communities near retail, residential and commercial areas in the entire eight-county region. Most of these medical properties are anchored by outpatient centers with substantial ancillary programs such as ambulatory surgery centers, imaging centers and primary care practices.
“Clarian health adds to the attractiveness of this acquisition because they are a high quality credit tenant that provides stability to the rent roll,” said Danny Prosky, Executive Vice President of Acquisitions for Grubb & Ellis Healthcare REIT. “This portfolio is not only located in a thriving metropolitan area, but enjoys strong occupancy as well, making this acquisition an outstanding one for the Grubb & Ellis Healthcare REIT portfolio.”
Medical Portfolio 3 was acquired from HCP, Inc . Financing for this acquisition was primarily provided by Fifth Third Bank, and through utilization of the Grubb & Ellis Healthcare REIT line of credit.
As of June 20, 2008, Grubb & Ellis Healthcare REIT has sold approximately 37.4 million shares of its common stock, excluding the shares issued under its distribution reinvestment plan, for approximately $374 million through its initial public offering, which began in the third quarter of 2006.
Grubb & Ellis Healthcare REIT offers a monthly distribution of 7.25 percent per annum and, as of June 27, 2008, has made 34 geographically diverse acquisitions for a total of 100 buildings valued at approximately $706 million, based on purchase price.
About Grubb & Ellis
Grubb & Ellis Company , one of the largest and most respected commercial real estate services companies, is the sponsor of Grubb & Ellis Healthcare REIT, Inc. With more than 130 owned and affiliate offices worldwide, Grubb & Ellis offers property owners, corporate occupants and investors comprehensive integrated real estate solutions, including transaction, management, consulting and investment advisory services supported by proprietary market research and extensive local market expertise.
Grubb & Ellis and its subsidiaries are leading sponsors of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including tax-deferred 1031 tenant-in-common (TIC) exchanges; public non-traded real estate investment trusts (REITs) and real estate investment funds. As of March 31, 2008, more than $3.4 billion in investor equity has been raised for these investment programs. The company and its subsidiaries currently manage a growing portfolio of more than 218 million square feet of real estate. In 2007, Grubb & Ellis was selected from among 15,000 vendors as Microsoft Corporation’s Vendor of the Year. For more information regarding Grubb & Ellis Company, please visit .
FORWARD-LOOKING LANGUAGE
This press release contains certain forward-looking statements with respect to the importance that the property adds to the Grubb & Ellis Healthcare REIT portfolio. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, plans or predictions of the future, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward- looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: uncertainties regarding changes in the healthcare industry; uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the local economy and demand for healthcare related services in the greater Indianapolis, Indiana area; the strengths and financial condition of Clarian health Partners; the uncertainties relating to the implementation of our real estate investment strategy; and other risk factors as outlined in the company’s prospectus, as amended from time to time, and as detailed from time to time in our periodic reports, as filed with the Securities and Exchange Commission.
Grubb & Ellis Healthcare REIT, Inc.

KING OF PRUSSIA, Pa., April 25 /PRNewswire-FirstCall/ — Universal health Realty Income Trust announced today that for the quarter ended March 31, 2008, net income was $4.2 million, or $.35 per diluted share, as compared to $5.8 million, or $.49 per diluted share, during the same quarter in the prior year. Included in our financial results during the first quarter of 2008 was increased depreciation expense of $329,000, or $.03 per diluted share, recorded by certain of our unconsolidated limited liability companies (”LLC”) in connection with the newly constructed medical office buildings which opened during the fourth quarter of 2007 (as discussed below) and the depreciation expense recorded on the replacement assets received from Universal health Services, Inc. in connection with the previously disclosed Chalmette Medical Center (”Chalmette”) asset exchange and substitution transaction. Favorably impacting net income during the quarter ended March 31, 2007 was a combined gain of $1,041,000, or $.09 per diluted share, consisting of: (i) a gain of $789,000, or $.07 per diluted share, related to the recovery of replacement real estate assets in connection with the Chalmette asset exchange and substitution agreement, and; (ii) a gain of $252,000, or $.02 per diluted share, resulting from the sale of real property by a LLC.
Funds from operations (”FFO”) were $7.3 million, or $.62 per diluted share, during the first quarter of 2008 as compared to $7.4 million, or $.62 per diluted share, during the comparable quarter of the prior year. The first quarter dividend of $.58 per share was paid on March 31, 2008.
During the fourth quarter of 2007, three newly constructed medical office buildings, which are owned by LLCs in which we hold 95%, non-controlling ownership interests, were completed and opened as follows: (i) Canyon Springs Medical Plaza located in Gilbert, Arizona; (ii) Phoenix Children’s East Valley Care Center located in Gilbert, Arizona, and; (iii) Centennial Hills Medical Office Building I located in Las Vegas, Nevada. The Phoenix Children’s East Valley Care Center is a single tenant facility which is fully occupied pursuant to the terms of a twenty-year lease. Leasing activity at the Canyon Springs Medical Plaza and Centennial Hills Medical Office Building I, which are multi-tenant facilities, continued to improve during the first quarter of 2008 as these facilities continue their initial lease-up.
In addition, as of March 31, 2008, construction continues on three new medical office buildings, which are owned by LLCs, as follows: (i) Palmdale Medical Plaza located in Palmdale, California, which is scheduled to be completed and opened during the second quarter of 2008; (ii) Summerlin Hospital Medical Office Building III located in Las Vegas, Nevada, which is scheduled to be completed and opened during the fourth quarter of 2008, and; (iii) Deer Valley Medical Office Building III located in Phoenix, Arizona, which is scheduled to be completed and opened during the second quarter of 2009.
Also, in February of 2008, we purchased the Kindred Hospital; Corpus Christi, a 74-bed long-term acute care hospital located in Corpus Christi, Texas for a total purchase price of $8.1 million. We paid $4.7 million in cash and assumed $3.4 million of third-party mortgage debt that is non-recourse to us. The lease payments on this facility are unconditionally guaranteed by Kindred Healthcare, Inc. until its scheduled expiration in June, 2019.
At March 31, 2008, our shareholders’ equity was $157.8 million and our liabilities for borrowed funds were $49.7 million, including mortgage debt of consolidated entities, which is non-recourse to us, totaling $23.9 million.
Universal health Realty Income Trust, a real estate investment trust, invests in healthcare and human service related facilities including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute care facilities, surgery centers, childcare centers and medical office buildings. We have forty-seven real estate investments in fourteen states.
Funds from operations, is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, we believe that information regarding FFO is helpful to shareholders and potential investors. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (”NAREIT”), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we interpret the definition. To facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income determined in accordance with GAAP. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income determined in accordance with GAAP. In addition, FFO should not be used as: (i) an indication of our financial performance determined in accordance with GAAP; (ii) as an alternative to cash flow from operating activities determined in accordance with GAAP; (iii) as a measure of our liquidity; (iv) nor is FFO an indicator of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of our reported net income to FFO is shown below.
The matters discussed in this report, as well as the news releases issued from time to time by us, include certain statements containing the words “believes”, “anticipates”, “intends”, “expects” and words of similar import, which constitute “forward-looking statements” within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward- looking statements, whether as a result of new information, future events or otherwise.
Universal health Realty Income Trust
Consolidated Statements of Income
For the Three Months Ended March 31, 2008 and 2007
(amounts in thousands, except per share amounts)
(unaudited)

Three Months
Ended March 31,
2008 2007
Revenues:
Base rental - UHS facilities $3,062 $3,062
Base rental - Non-related parties 2,397 2,335
Bonus rental - UHS facilities 1,008 1,037
Tenant reimbursements and other - Non-related
parties 488 585
Tenant reimbursements and other - UHS facilities 24 24
6,979 7,043

Expenses:
Depreciation and amortization 1,406 1,260
Advisory fees to UHS 367 351
Other operating expenses 1,135 1,141
2,908 2,752

Income before equity in income of unconsolidated
limited liability companies (”LLCs”), property
damage recovered from UHS (Chalmette) and
interest expense 4,071 4,291

Equity in income of unconsolidated LLCs
(including recognition of gain on sale of
real property of $252 during the three months
ended March 31, 2007) 612 947

Replacement property recovered from UHS - Chalmette - 789

Interest expense (525) (362)

Income from continuing operations 4,158 5,665

Income from discontinued operations, net - 146

Net income $4,158 $5,811

Basic earnings per share:
From continuing operations $0.35 $0.48
From discontinued operations $0.00 $0.01
Total basic earnings per share $0.35 $0.49

Diluted earnings per share:
From continuing operations $0.35 $0.48
From discontinued operations $0.00 $0.01
Total diluted earnings per share $0.35 $0.49

Weighted average number of shares outstanding
- Basic 11,843 11,792
Weighted average number of share equivalents 38 113
Weighted average number of shares and
equivalents outstanding - Diluted 11,881 11,905

Calculation of Funds From Operations (”FFO”):
Three Months
Ended March 31,
2008 2007
Net income $4,158 $5,811

Plus: Depreciation and amortization expense:
Consolidated investments 1,388 1,244
Unconsolidated affiliates 1,787 1,350
Discontinued operations - 31
Less: Gain on LLC’s sale of real property - (252)
Gain on asset exchange and substitution
agreement with UHS - Chalmette - (789)
Funds from operations (FFO) $7,333 $7,395

Funds from operations (FFO) per share - Basic $0.62 $0.63
Funds from operations (FFO) per share - Diluted $0.62 $0.62

Dividend paid per share $0.580 $0.570

Universal health Realty Income Trust
Consolidated Balance Sheets
(dollar amounts in thousands)
(unaudited)

March 31, December 31,
Assets: 2008 2007

Real Estate Investments:
Buildings and improvements $186,255 $178,655
Accumulated depreciation (62,016) (60,627)
124,239 118,028
Land 18,819 18,258
Construction in progress 8,808 7,511
Net Real Estate Investments 151,866 143,797

Investments in and advances to limited
liability companies (”LLCs”) 53,416 52,030

Other Assets:
Cash and cash equivalents 1,089 1,131
Bonus rent receivable from UHS 1,008 960
Rent receivable - other 536 746
Deferred charges, notes receivable and other
assets, net 2,942 1,085
Total Assets $210,857 $199,749

Liabilities and Shareholders’ Equity:

Liabilities:
Line of credit borrowings $25,800 $16,800
Mortgage note payable, non-recourse to us 7,041 3,717
Mortgage and construction loans payable of
consolidated LLCs, non-recourse to us 16,851 16,100
Accrued interest 106 125
Accrued expenses and other liabilities 2,462 1,874
Tenant reserves, escrows, deposits and
prepaid rents 716 741
Total Liabilities 52,976 39,357

Minority interests 86 87

Shareholders’ Equity:
Preferred shares of beneficial interest, $.01
par value; 5,000,000 shares authorized; none
issued and outstanding - -
Common shares, $.01 par value; 95,000,000
shares authorized; issued and outstanding:
2008 - 11,848,545; 2007 -11,841,938 118 118
Capital in excess of par value 188,840 188,638
Cumulative net income 331,223 327,065
Cumulative dividends (362,386) (355,516)
Total Shareholders’ Equity 157,795 160,305
Total Liabilities and Shareholders’ Equity $210,857 $199,749

Universal health Realty Income Trust

WASHINGTON, April 21 /PRNewswire-USNewswire/ — With the U.S. economy in the doldrums, state legislators from across the country are discussing cost-effective ways to invigorate budgets, improve health care quality and finance much-needed infrastructure projects. The National Conference of State Legislatures will host its annual Spring Forum where legislators will share ideas, strategies and best practices as well as hear the latest happenings on Capitol Hill.
NCSL’s Spring Forum will take place at the Hyatt Regency Capitol Hill, 400 New Jersey Avenue NW from April 24-26. In addition to sessions covering REAL ID, immigration and Medicaid regulations, Sen. Lamar Alexander and Rep. Barney Frank will give key note addresses on the effectiveness of the state-federal partnership and the home mortgage foreclosure situation. Also, European Union’s Ambassador to the United States, John Bruton will speak at Saturday’s general session breakfast.
Media Events:
– Release of State Budget Update: State finances are weakening, according to reports by legislative fiscal directors. On the other hand, several states are reaping the rewards of high oil prices. Find out in this quarterly update of state budget performance which states’ revenues met expectations and which didn’t. Report will be available at a news event 10 a.m., Friday, April 25 at the Hall of States, 444 North Capitol Street, NW.
– Release of State Immigration Activity Update: Similar to 2007, this year states are considering an array of legislation regarding immigration. This report will update the numbers of immigration-related bills introduced and enacted in state legislatures during 2008. Report will be available at a news event at 10 a.m., Wednesday, April 24 at the Hall of States, 444 North Capitol Street, NW.
Spring Forum highlights include:
– Federalism and State Activity: Senator Lamar Alexander, former governor of Tennessee and now chair of the Republican Senate Conference, has seen federalism issues from both the state and federal perspectives. In his keynote discussion, he will address his concerns including Real ID, Internet taxation, the Federal Consent Decrees Fairness Act, and flexibility in the No Child Left Behind act. Thursday, April 24 in the Ticon/Yorktown/Valley Rooms, 4:00 - 5 p.m.
– Home Mortgage Foreclosures: Representative Barney Frank, chairman of the House Financial Services Committee and a member of Congress since 1981, will address the subprime mortgage situation, the federal stimulus package, the government role in regulating financial services in the global economy, and states’ future role in insurance regulation. Friday, April 25 in the Regency A Room, 8:30 a.m. - 9 a.m.
– The European Union’s ambassador to the United States: John Bruton, is a former Irish prime minister, who helped transform the Irish economy into the “Celtic Tiger,” one of the fastest growing economies in the world. Since taking up his position in Washington in 2004, Bruton has had one-on-one meetings with more than 250 members of Congress to explain EU developments and discuss the importance of the EU-US relationship. Saturday, April 26 in the Hyatt-Columbia ABC, 8 a.m. - 10 a.m.
– Water Resources: Water policy was once primarily a Western issue, but droughts in the East and rapid population growth in many states have made water a key issue nationally. Friday, April 25 in the Columbia A Room, 3 p.m. - 4:30 p.m.
– Medicaid Update from the Centers for Medicare and Medicaid Services: Kerry Weems, Centers for Medicare and Medicaid Services, U.S. Department of health and Human Services, Washington, D.C., will provide an update for states. Thursday, April 25 Hyatt-Lexington/Bunker Hill, 1 p.m.
– REAL ID: Final Rules . . . State Responses: The Department of Homeland Security published final regulations for state implementation of REAL ID in the Jan. 29, 2008, Federal Register. This session will review the final rules, the flexibilities they provide for state implementation, DHS’ new cost estimate, and state responses thus far. Thursday, April 24, Congressional B Room, 1:15 pm - 2:15 pm.
– Smart Electric Grid Forum: Legislators and other energy leaders will learn about U.S. grid modernization, including growth in demand, the critical importance of power quality and reliability, aging workforce and assets, physical and cyber security of the electric infrastructure, and environmental and cost pressures. Thursday, April 24, Capitol Hilton 8 a.m. - 3:30 p.m.
– NCSL Foundation Partners Project on Transportation Finance: Public Private Partnerships?: The NCSL Foundation for State Legislatures is convening this “scoping meeting” to assess interest in establishing a Partners Project related to Public Private Partnerships. Thursday, April 24, Hyatt Bryce Room, 8 a.m. - 9 a.m.
– Covering High-Cost, High-Risk People: Whose Responsibility?: State interest in both health “reform” and health cost savings creates special challenges for covering patients considered “high risk” and high cost. What are the roles of state-sponsored high-risk pools, the health insurance industry, government, providers and the high-cost individuals themselves in providing and paying for care? Friday, April 25, Hyatt Lexington/Bunker Room, 3 p.m. - 4 p.m.
A complete agenda is available at .
Members of the media are invited to attend. Media can register online or onsite, there is no registration fee for reporters. Media is asked to check in at the NCSL registration desk to obtain a press badge. Please drop by the Press Room, located in the Hyatt Grand-Canyon Room.
NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.
National Conference of State Legislatures