1、ANNUAL REPORT TO SHAREHOLDERSHealthcare Realty Trusts fourteenth year as a public company has brought continued growth of the Companysdiverse portfolio of healthcare assets.During the year,we strengthened our balance sheet and capitalized onthe Companys development capabilities for healthcare provid
2、ers in growing markets where medical office andoutpatient facilities are in high demand.We also continued to be selective about our acquisitions and remainedcommitted to profitable,long-term investments.We believe our strategy to focus on low-risk,high-growthinvestments will position the Company to
3、generate consistent,positive performance over time.We recently announced the Companys intention to sell its portfolio of senior living assets,further amplifyingour focus on medical office and outpatient property types.Upon the sales of the Companys senior livingproperties,more than 85 percent of our
4、 portfolio will be comprised of diverse outpatient facility types.Medical offices,ambulatory care and surgery,physician clinics and other specialty types demonstrate the widevariety of properties that characterize the low-business risk profile of our investment portfolio.Over the course of the year,
5、we pursued investments in these medical office andoutpatient property types,as they are related to the rising demand forhealthcare services.While economic indicators may fluctuate from year to year,there is a steady growth in the number of Americans seeking medicaltreatments on an outpatient basis.I
6、n fact,outpatient services have grown from10 percent to almost 80 percent of all medical procedures over the last decade.As the aged population grows,many healthcare organizations will expand andmodify their facilities to accommodate this trend.However,healthcare systems,reluctant to invest precious