Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - HEALTHCARE TRUST OF AMERICA, INC. | ex99120170426er.htm |
| 8-K - 8-K - HEALTHCARE TRUST OF AMERICA, INC. | hta201704268-k.htm |
99.1
MISSION MEDICAL OFFICE PORTFOIO
MISSION VIEJO, CA
Exhibit 99.2
Company Overview
Company Information 3
First Quarter 2017 Highlights 4
Financial Highlights 5
Company Snapshot 6
Financial Information
FFO, Normalized FFO, Normalized FAD and Adjusted EBITDA 7
Capitalization, Interest Expense and Covenants 8
Debt Composition and Maturity Schedule 9
Portfolio Information
Investment Activity 10
Regional Portfolio Distribution and Key Markets and Top 75 MSA Concentration 11
Same-Property Performance and NOI 12
Portfolio Diversification by Type, Historical Campus Proximity and Ownership Interests 13
Tenant Lease Expirations and Historical Leased Rate 14
Key Health System Relationships and In-House Property Management and Leasing Platform 15
Health System Relationship Highlights 16
Financial Statements
Condensed Consolidated Balance Sheets 17
Condensed Consolidated Statements of Operations 18
Condensed Consolidated Statements of Cash Flows 19
Reporting Definitions 20
Forward-Looking Statements:
Certain statements contained in this report constitute forward-looking statements within the meaning of the safe harbor from civil liability provided
for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Such statements include, in particular, statements
about our plans, strategies, prospects and estimates regarding future medical office building market performance. Additionally, such statements
are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially and in
adverse ways from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future
periods. Forward-looking statements are generally identifiable by the use of such terms as “expect,” “project,” “may,” “should,” “could,” “would,”
“intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “opinion,” “predict,” “potential,” “pro forma” or the negative of such terms and
other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements. We cannot guarantee
the accuracy of any such forward-looking statements contained in this report, and we do not intend to publicly update or revise any forward-
looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Any such forward-looking
statements reflect our current views about future events, are subject to unknown risks, uncertainties, and other factors, and are based on a
number of assumptions involving judgments with respect to, among other things, future economic, competitive and market conditions, all of
which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such
forward-looking statements, including our ability to generate positive cash flow from operations, provide dividends to stockholders, and maintain
the value of our real estate properties, may be significantly hindered. Forward-looking statements express expectations of future events. All
forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and
they are subject to numerous known and unknown risks and uncertainties that could cause actual events or results to differ materially from
those projected. Due to these inherent uncertainties, our stockholders are urged not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date made. In addition, we undertake no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated events or changes to projections over time, except as required
by law. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed
on such statements. Additional information concerning us and our business, including additional factors that could materially affect our financial
results, is included herein and in our filings with the SEC.
Table of Contents
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 2
Company Information
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings (“MOBs”) in the United
States, based on gross leasable area (“GLA”). We provide the real estate infrastructure for the integrated delivery of healthcare services in
highly desirable locations. Over the last decade, we have invested $4.3 billion primarily in MOBs and other healthcare assets comprising 17.8
million square feet of GLA. Our investments are targeted in 15 to 20 key markets that we believe have superior healthcare demographics that
support strong, long-term demand for medical office space. We have achieved, and continue to achieve, critical mass within these key markets
by expanding our presence through accretive acquisitions, and utilizing our in-house operating expertise through our regionally located property
management and leasing platform.
Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that we
believe have significantly outperformed the S&P 500 and US REIT indices. More information about HTA can be found on the Company’s
website at www.htareit.com.
Company Overview
Executive Management
Scott D. Peters I Chairman, Chief Executive Officer and President
Robert A. Milligan I Chief Financial Officer, Secretary and Treasurer
Amanda L. Houghton I Executive Vice President - Asset Management
Contact Information
Corporate Headquarters
Healthcare Trust of America, Inc. I NYSE: HTA
16435 North Scottsdale Road, Suite 320
Scottsdale, Arizona 85254
480.998.3478
www.htareit.com
Investor Relations
Robert A. Milligan I Chief Financial Officer, Secretary and Treasurer
Mary C. Jensen I Vice President - Capital Markets
16435 North Scottsdale Road, Suite 320
Scottsdale, Arizona 85254
480.998.3478
info@htareit.com
Transfer Agent
Computershare
P.O. Box 505000
Louisville, KY 40233
888.801.0107
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 3
First Quarter 2017 Highlights
Operating
• Net Income Attributable to Common Stockholders: Increased 37.4% to $13.5 million, compared to Q1 2016.
Earnings per diluted share increased 12.5% to $0.09 per diluted share, compared to Q1 2016.
• FFO: As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), increased 27.1% to $60.2
million, compared to Q1 2016. FFO per diluted share increased 13.9% to $0.41 per diluted share, compared to Q1
2016.
• Normalized FFO: Increased 15.4% to $60.1 million, compared to Q1 2016. Normalized FFO per diluted share
increased 2.5% to $0.41 per diluted share, compared to Q1 2016.
• Normalized FAD: Increased 8.8% to $52.9 million, compared to Q1 2016.
• Same-Property Cash Net Operating Income (“NOI”): Increased $2.2 million, or 3.2%, to $70.5 million, compared to
Q1 2016. Same-Property rental revenue increased $1.7 million, or 2.2%, to $79.5 million, compared to Q1 2016.
Portfolio
• Investments: HTA invested $34.7 million to acquire medical office buildings totaling approximately 78,000 square feet
of gross leasable area (“GLA”) that were 100% leased and located in its key market of Tampa, Florida, and strategically
expanded its presence in College Station, Texas. In addition, HTA invested in the expansion of its New Haven,
Connecticut campus. This expansion totaled approximately 11,000 square feet of GLA.
Subsequent to the end of the quarter, HTA executed a purchase and sale agreement with a purchase price of $150.0
million consisting of approximately 592,000 square feet of GLA located within certain of its 15 to 20 key markets.
• Dispositions: HTA completed the disposition of a medical office building located in Texas for a gross sales price of
$5.0 million (approximately 48,000 square feet of GLA).
• Leasing: HTA entered into new and renewal leases on approximately 776,000 square feet of GLA, or 4.4% of its
portfolio. Tenant retention for the Same-Property portfolio was 80% by GLA for the quarter, which included
approximately 462,000 square feet of expiring leases. Renewal leases included tenant improvements of $1.45 per
square foot per year of the lease term and less than one week of free rent per year of the lease term.
• Leased Rate: At the end of the quarter, HTA had a leased rate for its portfolio of 91.8% by GLA and 91.7% for its
Same-Property portfolio.
Balance Sheet and Capital Markets
• Balance Sheet: At the end of the quarter, HTA had total leverage of 28.3% measured as debt to market capitalization,
and 5.7x measured as debt to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted
EBITDA”). Total liquidity at the end of the quarter was $690.5 million, including $674.5 million of availability under its
unsecured revolving credit facility and $16.0 million of cash and cash equivalents.
• Equity Raise: Subsequent to the end of the quarter, HTA raised approximately $62.3 million from the sale of its
common stock at an average price of $31.20 per share through its ATM program.
Company Overview
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 4
(1) Refer to pages 20 and 21 for the reporting definitions of NOI, Adjusted EBITDA, FFO, Normalized FFO and Normalized FAD.
(2) Refer to page 12 for a reconciliation of GAAP Net Income to NOI.
(3) Refer to page 7 for the reconciliations of GAAP Net Income Attributable to Common Stockholders to FFO, Normalized FFO, Normalized FAD and Net Income to Adjusted EBITDA.
(4) Calculated as the increase in Same-Property Cash NOI for the quarter as compared to the same period in the previous year.
(5) Calculated as Adjusted EBITDA divided by interest expense (excluding change in fair market value of derivatives) and scheduled principal payments.
(6) Calculated as the common stock price on the last trading day of the period multiplied by the total diluted common shares outstanding at the end of the period, plus total debt
outstanding at the end of the period. Refer to page 8 for details.
Financial Highlights
(unaudited and dollars in thousands, except per share data)
Three Months Ended
1Q17 4Q16 3Q16 2Q16 1Q16
INCOME ITEMS
Revenues $ 124,347 $ 122,039 $ 118,340 $ 113,234 $ 107,315
NOl (1)(2) 85,327 83,587 81,455 78,173 73,962
Adjusted EBITDA (1)(3) 319,132 312,340 311,776 294,256 279,916
FFO (1)(3) 60,231 60,944 53,972 53,273 47,381
Normalized FFO (1)(3) 60,133 59,513 57,132 56,461 52,115
Normalized FAD (1)(3) 52,865 52,197 49,222 50,061 48,603
Net income attributable to
common stockholders per diluted share $ 0.09 $ 0.11 $ 0.04 $ 0.09 $ 0.08
FFO per diluted share 0.41 0.42 0.38 0.38 0.36
Normalized FFO per diluted share 0.41 0.41 0.40 0.40 0.40
Same-Property Cash NOI growth (4) 3.2% 2.9% 3.3% 3.1% 3.0%
Fixed charge coverage ratio (5) 4.30x 4.20x 4.08x 4.06x 3.85x
As of
1Q17 4Q16 3Q16 2Q16 1Q16
ASSETS
Gross real estate investments $ 4,360,906 $ 4,320,613 $ 4,255,076 $ 4,058,071 $ 3,806,206
Total assets 3,753,017 3,747,844 3,715,890 3,532,289 3,310,519
CAPITALIZATION
Total debt $ 1,811,208 $ 1,768,905 $ 1,712,598 $ 1,631,642 $ 1,667,320
Total capitalization (6) 6,409,685 6,020,188 6,476,814 6,227,027 5,565,352
Total debt/market capitalization 28.3% 29.4% 26.4% 26.2% 30.0%
Company Overview
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 5
Investments in Real Estate (1) $ 4.3
Total portfolio GLA (2) 17.8
Leased rate 91.8%
Same-Property portfolio tenant retention rate (YTD)(3) 80%
% of GLA on-campus/aligned 96%
% of invested dollars in key markets & top 75 MSAs (4) 92%
Investment grade tenants (5) 44%
Credit rated tenants (5) 59%
Weighted average remaining lease term for all buildings (6) 5.2
Weighted average remaining lease term for single-tenant buildings (6) 6.6
Weighted average remaining lease term for multi-tenant buildings (6) 4.6
Credit ratings (by Moody’s and Standard & Poor’s) Baa2(Stable)/BBB(Stable)
Cash and cash equivalents (2) $ 16.0
Debt/market capitalization 28.3%
Weighted average interest rate per annum on portfolio debt (7) 3.30%
Building Type Presence in Top MSAs (8)
Company Snapshot
(as of March 31, 2017)
Company Overview
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 6
(1) Amount presented in billions. Refer to page 20 for the reporting definition of Investments in Real Estate.
(2) Amounts presented in millions.
(3) Refer to page 21 for the reporting definition of Retention.
(4) Refer to page 20 for the reporting definition of Metropolitan Statistical Area.
(5) Amounts based on annualized base rent.
(6) Amounts presented in years.
(7) Includes the impact of interest rate swaps.
(8) Refer to page 11 for a detailed table of our Key Markets and Top 75 MSA Concentration.
% of Portfolio (based on GLA) % of Portfolio (based on invested dollars)
Medical Office Buildings
94%
Hospitals
4%
Senior Care
2%
Additional Top 75
MSAs
41.0%All Other Markets
8.0%
Boston, MA
9.6%
Hartford/
New Haven, CT
6.3%
Dallas, TX
5.5%
Houston, TX
4.6%
Phoenix, AZ
4.4%
Orange County/Los
Angeles, CA
4.4%
Albany, NY
4.2% Greenville, SC
4.2%
Miami, FL
4.1%
Atlanta, GA
3.7%
FFO, Normalized FFO and Normalized FAD Three Months Ended
1Q17 1Q16
Net income attributable to common stockholders $ 13,545 $ 9,860
Depreciation and amortization expense related to investments in real estate 46,689 37,521
Gain on sale of real estate, net (3) —
FFO attributable to common stockholders $ 60,231 $ 47,381
Transaction expenses (1) 284 1,813
(Gain) loss on change in fair value of derivative financial instruments, net (839) 2,792
Loss on extinguishment of debt, net 32 —
Noncontrolling income from partnership units included in diluted shares 425 145
Other normalizing items, net (2) — (16)
Normalized FFO attributable to common stockholders $ 60,133 $ 52,115
Other income (8) (53)
Non-cash compensation expense 2,530 1,803
Straight-line rent adjustments, net (1,209) (1,451)
Amortization of (below) and above market leases/leasehold interests and corporate assets, net 273 740
Amortization of deferred financing costs and debt discount/premium, net 786 717
Recurring capital expenditures, tenant improvements and leasing commissions (9,640) (5,268)
Normalized FAD attributable to common stockholders $ 52,865 $ 48,603
Net income attributable to common stockholders per diluted share $ 0.09 $ 0.08
FFO adjustments per diluted share, net 0.32 0.28
FFO attributable to common stockholders per diluted share $ 0.41 $ 0.36
Normalized FFO adjustments per diluted share, net 0.00 0.04
Normalized FFO attributable to common stockholders per diluted share $ 0.41 $ 0.40
Weighted average diluted common shares outstanding 146,117 131,240
Adjusted EBITDA
Three Months
Ended
1Q17
Net income $ 14,000
Depreciation and amortization expense 47,056
Interest expense and net change in fair value of derivative financial instruments 15,543
EBITDA $ 76,599
Transaction expenses 284
Gain on sales of real estate, net (3)
Non-cash compensation expense 2,530
Pro forma impact of acquisitions/dispositions 341
Loss on extinguishment of debt, net 32
79,783
Adjusted EBITDA $ 319,132
FFO, Normalized FFO, Normalized FAD and Adjusted EBITDA
(unaudited and in thousands, except per share data)
Financial Information
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 7
(1) For the period ended 1Q17, amounts have been adjusted to reflect the prospective presentation of the early adoption of ASU 2017-01 as of January 1, 2017.
(2) For the period ended 1Q17, other normalizing items excludes lease termination fees as they are deemed to be generated in the ordinary course of business.
Capitalization
Unsecured revolving credit facility $ 170,000
Unsecured term loans 500,000
Unsecured senior notes 950,000
Secured mortgage loans 203,312
Deferred financing costs, net (9,042)
Discount, net (3,062)
Total debt $ 1,811,208
Stock price (as of March 31, 2017) $ 31.46
Total diluted common shares outstanding 146,169
Equity capitalization $ 4,598,477
Total capitalization $ 6,409,685
Total undepreciated assets $ 4,610,003
Debt/market capitalization 28.3%
Debt/undepreciated assets 39.3%
Debt/Adjusted EBITDA ratio 5.7x
Equity
72%
Secured
Debt
3%
Unsecured
Debt
25%
Financial Information
Capitalization, Interest Expense and Covenants
(as of March 31, 2017, dollars and shares in thousands, except stock price)
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 8
Interest Expense
Covenants
Three Months Ended
1Q17 1Q16
Interest related to derivative financial instruments $ 324 $ 645
(Gain) loss on change in fair value of derivative financial instruments, net (1) (839) 2,792
Total interest related to derivative financial instruments, including net change in fair value of derivative
financial instruments
(515) 3,437
Interest related to debt 16,058 14,128
Total interest expense $ 15,543 $ 17,565
Interest expense excluding net change in fair value of derivative financial instruments $ 16,382 $ 14,773
Bank Loans Required 1Q17
Total leverage ≤ 60% 38%
Secured leverage ≤ 30% 4%
Fixed charge coverage ≥ 1.50x 4.30x
Unencumbered leverage ≤ 60% 38%
Unencumbered coverage ≥ 1.75x 4.63x
Senior Notes Required 1Q17
Total leverage ≤ 60% 40%
Secured leverage ≤ 40% 4%
Unencumbered asset coverage ≥ 150% 254%
Interest coverage ≥ 1.50x 4.36x
(1) In March 2017, HTA designated its derivative financial instruments as cash flow hedges.
Unsecured Revolving Credit Facility due 2020 Secured Mortgage Loans
Unsecured Term Loan due 2019 Unsecured Term Loan due 2023
Unsecured Senior Notes due 2021 Unsecured Senior Notes due 2023
Unsecured Senior Notes due 2026
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2017 2018 2019 2020 2021 Thereafter
Financial Information
Debt Composition and Maturity Schedule
(as of March 31, 2017, dollars in thousands)
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 9
Unsecured
Revolving
Credit Facility
due 2020 (1)
Secured
Mortgage
Loans
Unsecured
Term Loan
due 2019 (2)
Unsecured
Senior Notes
due 2021
Unsecured
Senior Notes
due 2023
Unsecured
Term Loan due
2023
Unsecured
Senior Notes
due 2026 Total
2017 $ — $ 36,428 $ — $ — $ — $ — $ — $ 36,428
2018 — 4,721 — — — — — 4,721
2019 — 10,839 300,000 — — — — 310,839
2020 170,000 49,795 — — — — — 219,795
2021 — 3,842 — 300,000 — — — 303,842
Thereafter — 97,687 — — 300,000 200,000 350,000 947,687
Subtotal 170,000 203,312 300,000 300,000 300,000 200,000 350,000 1,823,312
Deferred
financing costs,
net — (276) (1,468) (1,847) (2,061) (1,871) (1,519) (9,042)
Premiums
(discounts), net — 1,977 — (1,388) (1,513) — (2,138) (3,062)
Total $ 170,000 $ 205,013 $ 298,532 $ 296,765 $ 296,426 $ 198,129 $ 346,343 $ 1,811,208
Stated rate (3) 2.05% 5.01% 2.15% 3.38% 3.70% 2.65% 3.50% 3.23%
Hedged rate (4) 2.05% 5.41% 2.15% 3.38% 3.70% 2.87% 3.50% 3.30%
Debt Composition
(1) Rate does not include the 20 basis point facility fee that is payable on the entire $850 million revolving credit facility.
(2) Does not reflect the 1-year extension at the option of the borrower which could extend the term loan to 2020.
(3) The stated rate on the debt instrument as of the end of the period.
(4) The effective rate incorporates any swap instruments that serve to fix variable rate debt, as of the end of the period.
Debt Maturity Schedule
$36,428 $4,721
$310,839
$219,795
$303,842
$947,687
(2)
(1)
Property Market Date Acquired
% Leased at
Acquisition Purchase Price GLA
MatureWell MOB College Station, TX January 100% $ 13,600 23
Medical Village of Tampa MOB Tampa, FL March 100 21,100 55
Total $ 34,700 78
Portfolio Information
Investment Activity
(as of March 31, 2017, dollars and GLA in thousands)
2017 Acquisitions
Annual Investments (1)
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 10
(1) Excludes real estate note receivables, expansions and corporate assets.
2017 Dispositions
As of March 31, 2017, HTA has invested $4.3 billion primarily in MOBs and other healthcare assets comprising 17.8 million square feet of GLA.
Acquisitions Dispositions
$900,000
$700,000
$500,000
$300,000
$100,000
-$100,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$413,150
$542,976
$455,950
$802,148
$68,314
$294,937
$397,826
$439,530
$271,510
$35,685
$700,764
$39,483$82,885
$34,700
$5,000
Property Market Date Disposed Disposition Price GLA
Baylor Medical MOB Waxahachie, TX February $ 5,000 48
Region Investment % of Investment Total GLA % of Portfolio
Annualized
Base Rent (1)
% of
Annualized
Base Rent
Southwest $ 1,282,174 30.0% 4,871 27.4% $ 108,676 28.7%
Southeast 1,186,967 27.8 5,349 30.1 110,814 29.3
Northeast 1,180,472 27.6 4,528 25.5 101,921 27.0
Midwest 616,112 14.4 2,992 16.9 56,188 14.9
Northwest 7,750 0.2 23 0.1 528 0.1
Total $ 4,273,475 100% 17,763 100% $ 378,127 100%
Portfolio Information
Regional Portfolio Distribution and Key Markets and Top 75 MSA Concentration
(as of March 31, 2017, dollars and GLA in thousands)
Regional Portfolio Distribution
Key Markets and Top 75 MSA Concentration (2)
(1) Refer to page 20 for the reporting definition of Annualized Base Rent.
(2) Key markets are titled as such based on HTA’s concentration in the respective MSA.
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 11
Key Markets Investment
% of
Investment Total GLA % of Portfolio
Annualized
Base Rent
% of
Annualized
Base Rent
Boston, MA $ 410,730 9.6% 1,037 5.8% $ 32,154 8.5%
Hartford/New Haven, CT 269,177 6.3 950 5.3 19,992 5.3
Dallas, TX 236,278 5.5 681 3.8 17,366 4.6
Houston, TX 196,295 4.6 874 4.9 20,398 5.4
Phoenix, AZ 189,641 4.4 1,018 5.7 19,389 5.1
Orange County/Los Angeles, CA 189,500 4.4 432 2.4 12,066 3.2
Albany, NY 179,253 4.2 881 5.0 16,274 4.3
Greenville, SC 179,070 4.2 965 5.4 18,091 4.8
Miami, FL 173,807 4.1 889 5.0 18,320 4.8
Atlanta, GA 156,743 3.7 663 3.7 13,145 3.5
Indianapolis, IN 155,700 3.6 977 5.5 15,414 4.1
Tampa, FL 155,086 3.6 494 2.8 10,799 2.9
Pittsburgh, PA 148,612 3.5 1,094 6.2 20,154 5.3
Raleigh, NC 135,010 3.2 532 3.0 12,843 3.4
Denver, CO 111,700 2.6 371 2.1 8,808 2.3
White Plains, NY 92,750 2.2 276 1.6 6,991 1.8
Charleston, SC 87,474 2.0 296 1.7 7,529 2.0
Milwaukee, WI 77,068 1.8 323 1.8 5,127 1.4
Columbus, OH 75,021 1.8 290 1.6 6,031 1.6
St. Louis, MO 67,092 1.6 277 1.6 6,385 1.7
Top 20 MSAs 3,286,007 76.9 13,320 74.9 287,276 76.0
Additional Top 75 MSAs 647,182 15.1 2,957 16.6 59,890 15.8
Total Key Markets & Top 75
MSAs $ 3,933,189 92.0% 16,277 91.5% $ 347,166 91.8%
Three Months Ended Sequential Year-Over-Year
1Q17 4Q16 1Q16 $ Change % Change $ Change % Change
Rental revenue $ 79,510 $ 79,545 $ 77,796 $ (35) 0.0 % $ 1,714 2.2%
Tenant recoveries 21,824 20,967 21,022 857 4.1 802 3.8
Total rental income 101,334 100,512 98,818 822 0.8 2,516 2.5
Expenses 30,839 30,456 30,486 383 1.3 353 1.2
Same-Property Cash NOI $ 70,495 $ 70,056 $ 68,332 $ 439 0.6 % $ 2,163 3.2%
As of
1Q17 4Q16 1Q16
Number of buildings 286 286 286
GLA 14,686 14,685 14,687
Leased GLA, end of period 13,467 13,486 13,513
Leased %, end of period 91.7% 91.8% 92.0%
NOI (1) Three Months Ended
1Q17 1Q16
Net income $ 14,000 $ 10,036
General and administrative expenses 8,423 6,773
Transaction expenses (2) 284 1,813
Depreciation and amortization expense 47,056 37,828
Interest expense and net change in fair value of derivative financial instruments 15,543 17,565
Gain on sale of real estate, net (3) —
Loss on extinguishment of debt, net 32 —
Other income (8) (53)
NOI $ 85,327 $ 73,962
NOI percentage growth 15.4%
NOI $ 85,327 $ 73,962
Straight-line rent adjustments, net (1,209) (1,451)
Amortization of (below) and above market leases/leasehold interests, net and lease termination fees (94) 417
Cash NOI $ 84,024 $ 72,928
Notes receivable interest income (292) —
Non Same-Property Cash NOI (13,237) (4,596)
Same-Property Cash NOI $ 70,495 $ 68,332
Same-Property Cash NOI percentage growth 3.2%
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 12
Portfolio Information
Same-Property Performance and NOI
(as of March 31, 2017, unaudited and dollars and GLA in thousands)
Same-Property Performance
(1) Refer to pages 20 and 21 for the reporting definitions of NOI, Cash NOI and Same-Property Cash NOI.
(2) For the period ended 1Q17, amounts have been adjusted to reflect the prospective presentation of the early adoption of ASU 2017-01 as of January 1, 2017.
As of
1Q17 4Q16 3Q16 2Q16 1Q16
Off-campus aligned 29% 30% 29% 30% 27%
On-campus 67 67 68 67 70
On-campus/aligned 96% 97% 97% 97% 97%
Off-campus/non-aligned 4 3 3 3 3
Total 100% 100% 100% 100% 100%
Number of
Buildings
Number of
States GLA
% of Total
GLA
Annualized
Base Rent
% of
Annualized
Base Rent
Medical Office Buildings
Single-tenant 86 20 4,208 23.7% $ 91,019 24.0%
Multi-tenant 258 26 12,545 70.6 258,641 68.4
Other Healthcare Facilities
Hospitals 10 4 655 3.7 23,353 6.2
Senior care 3 1 355 2.0 5,114 1.4
Total 357 31 17,763 100% $ 378,127 100%
Number of
Buildings
Number of
States GLA
% of Total
GLA
Annualized
Base Rent
% of
Annualized
Base Rent
Net-Lease/Gross-Lease
Net-lease 229 29 11,055 62.2% $ 243,719 64.5%
Gross-lease 128 18 6,708 37.8 134,408 35.5
Total 357 31 17,763 100% $ 378,127 100%
(1) Percentages shown as percent of total GLA.
(2) Refer to page 21 for the reporting definitions of Off-campus/non-aligned and On-campus/aligned.
(3) Refer to pages 20 and 21 for the reporting definitions of Customary Health System Restrictions, Economic with Limited Restrictions, and Occupancy Health System Restrictions.
Portfolio Information
Portfolio Diversification by Type, Historical Campus Proximity and Ownership Interests
(as of March 31, 2017, dollars and GLA in thousands)
Portfolio Diversification by Type
Historical Campus Proximity (1)(2)
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 13
Ownership Interests (3)
Number of
Buildings GLA
Annualized
Base Rent
% of
Annualized
Base Rent
As of (1)
1Q17 4Q16 3Q16 2Q16 1Q16
Fee Simple 257 12,179 $ 256,676 68% 69% 68% 68% 68% 68%
Customary Health System
Restrictions 85 4,594 100,269 26 26 26 26 26 25
Economic with Limited
Restrictions 5 262 6,675 2 1 2 2 2 2
Occupancy Health System
Restrictions 10 728 14,507 4 4 4 4 4 5
Leasehold Interest Subtotal 100 5,584 121,451 32 31 32 32 32 32
Total 357 17,763 $ 378,127 100% 100% 100% 100% 100% 100%
As of
1Q17 4Q16 3Q16 2Q16 1Q16
Total portfolio leased rate 91.8% 91.9% 91.8% 92.2% 92.1%
On-campus/aligned leased rate 91.8% 91.9% 91.8% 92.3% 92.2%
Off-campus/non-aligned leased rate 90.3% 90.1% 90.8% 89.4% 88.3%
Total portfolio occupancy rate 91.0% 91.2% 91.3% 91.6% 91.4%
Expiration
Number of
Expiring Leases
Total GLA of
Expiring Leases
% of GLA of
Expiring
Leases
Annualized Base
Rent of
Expiring Leases
% of Total
Annualized
Base Rent
Month-to-month 114 273 1.7% $ 5,532 1.5%
2017 409 1,174 7.2 27,086 7.2
2018 406 1,869 11.5 40,860 10.8
2019 373 1,755 10.8 45,293 11.9
2020 277 1,189 7.3 29,482 7.8
2021 391 2,175 13.3 47,646 12.6
2022 212 1,437 8.8 33,928 9.0
2023 108 989 6.1 20,497 5.4
2024 129 1,689 10.4 37,820 10.0
2025 112 702 4.3 14,984 4.0
2026 74 712 4.4 13,544 3.6
Thereafter 146 2,339 14.2 61,455 16.2
Total 2,751 16,303 100% $ 378,127 100%
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Healthcare Trust of America, Inc. I 14
Portfolio Information
Tenant Lease Expirations and Historical Leased Rate
(as of March 31, 2017, dollars and GLA in thousands)
Tenant Lease Expirations
Historical Leased Rate
Health System
Weighted
Average
Remaining
Lease Term (2)
Credit
Rating
Total Leased
GLA
% of
Leased
GLA
Annualized
Base Rent
% of
Annualized
Base Rent
Highmark-Allegheny Health Network (3) 6 Baa2 914 5.6% $ 17,533 4.6%
Greenville Health System 7 A1 798 4.9 15,415 4.1
Tufts Medical Center 10 Aa2 252 1.6 9,952 2.6
Steward Health Care System 10 B2 380 2.3 9,181 2.4
Hospital Corporation of America 3 B1 356 2.2 8,972 2.4
Community Health Systems (TN) 4 B2 361 2.2 8,823 2.3
Providence St. Joseph Health 2 A1 262 1.6 8,682 2.3
Aurora Health Care 7 A2 277 1.7 6,385 1.7
Rush University Medical Center 3 A1 137 0.8 4,932 1.3
Boston Medical Center 4 Baa2 87 0.5 4,804 1.3
Indiana University Health 2 Aa3 312 1.9 4,615 1.2
Tenet Healthcare 3 B2 179 1.1 4,206 1.1
Deaconess Health System 7 AA- 261 1.6 4,130 1.1
Boston University 4 A1 74 0.5 4,021 1.1
Community Health Network (IN) 4 A2 187 1.2 3,544 0.9
Mercy Health 10 Aa3 112 0.7 3,540 0.9
UnitedHealth Group 5 A3 191 1.2 3,457 0.9
Total 5,140 31.6% $ 122,192 32.2%
As of March 31, 2017, HTA’s in-house property management and leasing platform operated approximately 16.2 million square feet of GLA, or 91%, of HTA’s
total portfolio.
Portfolio Information
Key Health System Relationships and In-House Property Management and Leasing Platform
(as of March 31, 2017, dollars and GLA in thousands, except as otherwise noted)
Key Health System Relationships (1)
In-House Property Management and Leasing Platform
(1) The amounts in this table illustrate only direct leases with selected top health systems in the HTA portfolio and is not inclusive of all HTA’s health system tenants.
(2) Amounts presented in years.
(3) Credit rating refers to Highmark, Inc.
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 15
Key Market
Portfolio Property
Regional Offices
(includes corporate headquarters)
Onsite Management Offices
Boston Medical Center (Baa2), located in the historic South End Medical cluster of Boston, Massachusetts, is a private, not-for-profit academic
center seeing more than one million patient visits a year. BMC is the primary teaching affiliate for the Boston University’s School of Medicine,
and is the busiest trauma and emergency services center in New England. They have initiated a $300 million campus redesign which will
include an additional 400,000 SF for inpatient services. As a recognized leader in groundbreaking medical research, BMC received
approximately $120 million in 2015 to fund over 500 research and service projects.
Community Health Systems, Inc. (B2), headquartered in Franklin, Tennessee, is one of the nation’s leading operators of general acute care
hospitals. The organization includes 158 affiliated hospitals in 22 states with approximately 123,000 employees and 20,000 physicians.
Affiliated hospitals are dedicated to providing quality healthcare for local residents and contribute to the economic development of their
communities. Based on the unique needs of each community served, these hospitals offer a wide range of diagnostic, medical and surgical
services in inpatient and outpatient settings.
Greenville Health System (A1), located in Greenville, South Carolina, is a public not-for-profit academic healthcare delivery system committed
to medical excellence through clinical care, education and research. GHS is a health resource for its community and a leader in transforming
the delivery of healthcare for the benefit of people and communities served. The University of South Carolina School of Medicine Greenville is
located on GHS’ Greenville Memorial Medical Campus. The medical school is focused on transforming healthcare by training physicians to
connect with communities, patients, colleagues and technology in a new, more progressive way.
Highmark-Allegheny Health Network (Baa2), based in Pittsburgh, Pennsylvania, is a diversified healthcare partner that serves members
across the United States through its businesses in health insurance, dental insurance, vision care and reinsurance. In 2013, Highmark and
West Penn Allegheny combined to create an integrated care delivery model which they believe will preserve an important community asset that
provides high-quality, efficient health care for patients. Highmark’s mission is to deliver high quality, accessible, understandable and affordable
experiences, outcomes and solutions to their customers.
Hospital Corporation of America (B1), based in Nashville, Tennessee, HCA was one of the nation’s first hospital companies. Today, they are
a company comprised of locally managed facilities that includes approximately 171 hospitals, 118 freestanding surgery centers in 20 states and
the United Kingdom employing approximately 233,000 people. Approximately four to five percent of all inpatient care delivered in the country
today is provided by HCA facilities. HCA is committed to the care and improvement of human life and strives to deliver high quality, cost
effective healthcare in the communities they serve.
Indiana University Health (Aa3), based in Indianapolis, Indiana, is Indiana’s most comprehensive healthcare system. A unique partnership
with Indiana University School of Medicine, one of the nation’s leading medical schools, gives patients access to innovative treatments and
therapies. IU Health is comprised of hospitals, physicians and allied services dedicated to providing preeminent care throughout Indiana and
beyond.
Providence St. Joseph Health (Aa3), based in Seattle, Washington and Irvine, California, is held together by Providence Health and Services
and St. Joseph Health, a not-for-profit health and social services system that will serve as the parent organization for more than 100,000
caregivers (employees) across seven states.
Steward Health Care System (B2), located in Boston, Massachusetts, is a community-based accountable care organization and community
hospital network with 3,000 physicians, 10 hospital campuses, 24 affiliated urgent care providers, home care, hospice and other services. The
system serves more than one million patients annually in over 150 communities in the greater Boston area. Other Steward Health Care entities
include Steward Medical Group, Steward Health Care Network, and Steward Home Care.
Tenet Healthcare System (B2), located in Dallas, Texas, is a leading health care services company. Through its network, Tenet operates 80
hospitals, over 470 outpatient centers and has over 130,000 employees. Across the network, compassionate, quality care is provided to millions
of patients through a wide range of services. Tenet is affiliated with Conifer Health Solutions, which helps hospitals, employers and health
insurance companies improve the efficiency and performance of their operations and the health of the people they serve.
Tufts Medical Center (BBB), located in Boston, Massachusetts, is a 415-bed academic medical center, providing everything from routine and
emergency care to treating the most complex diseases and injuries affecting adults and children throughout New England. Tufts Medical Center
is the principal teaching hospital for Tufts University School of Medicine, and has consistently been ranked in the top quartile of major academic
medical centers in the country by The University Health System Consortium.
WellStar Health System (A2), located in Atlanta, Georgia, is a leading not-for-profit health system with over 3,200 beds in the Southeast.
Today, the WellStar Health System is comprised of 11 hospitals, eight urgent care centers, 16 satellite diagnostic imaging centers, over 1,000
medical providers, and over 20,000 employees. With the acquisition of Tenet Healthcare’s five Georgia-based hospitals and a new partnership
with West Georgia Health in LaGrange, GA., WellStar becomes the largest health system in Georgia and one of the largest not-for-profit health
systems in the country.
Portfolio Information
Health System Relationship Highlights
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 16
As of
1Q17 4Q16
ASSETS
Real estate investments:
Land $ 392,714 $ 386,526
Building and improvements 3,500,633 3,466,516
Lease intangibles 467,559 467,571
4,360,906 4,320,613
Accumulated depreciation and amortization (856,986) (817,593)
Real estate investments, net 3,503,920 3,503,020
Cash and cash equivalents 16,034 11,231
Restricted cash and escrow deposits 8,043 13,814
Receivables and other assets, net 179,719 173,461
Other intangibles, net 45,301 46,318
Total assets $ 3,753,017 $ 3,747,844
LIABILITIES AND EQUITY
Liabilities:
Debt $ 1,811,208 $ 1,768,905
Accounts payable and accrued liabilities 98,222 105,034
Derivative financial instruments - interest rate swaps 1,653 1,920
Security deposits, prepaid rent and other liabilities 51,409 49,859
Intangible liabilities, net 36,009 37,056
Total liabilities 1,998,501 1,962,774
Commitments and contingencies
Redeemable noncontrolling interests 4,661 4,653
Equity:
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and
outstanding — —
Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 141,825,110 and
141,719,134 shares issued and outstanding as of March 31, 2017 and December 31, 2016,
respectively 1,418 1,417
Additional paid-in capital 2,754,229 2,754,818
Accumulated other comprehensive loss (85) —
Cumulative dividends in excess of earnings (1,098,561) (1,068,961)
Total stockholders’ equity 1,657,001 1,687,274
Noncontrolling interests 92,854 93,143
Total equity 1,749,855 1,780,417
Total liabilities and equity $ 3,753,017 $ 3,747,844
Financial Statements
Condensed Consolidated Balance Sheets
(unaudited and in thousands, except share data)
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 17
Three Months Ended
1Q17 1Q16
Revenues:
Rental income $ 123,993 $ 107,250
Interest and other operating income 354 65
Total revenues 124,347 107,315
Expenses:
Rental 39,020 33,353
General and administrative 8,423 6,773
Transaction 284 1,813
Depreciation and amortization 47,056 37,828
Total expenses 94,783 79,767
Income before other income (expense) 29,564 27,548
Interest expense:
Interest related to derivative financial instruments (324) (645)
Gain (loss) on change in fair value of derivative financial instruments, net 839 (2,792)
Total interest related to derivative financial instruments, including net change in fair value of derivative
financial instruments 515 (3,437)
Interest related to debt (16,058) (14,128)
Gain on sale of real estate, net 3 —
Loss on extinguishment of debt, net (32) —
Other income 8 53
Net income $ 14,000 $ 10,036
Net income attributable to noncontrolling interests (455) (176)
Net income attributable to common stockholders $ 13,545 $ 9,860
Earnings per common share - basic:
Net income attributable to common stockholders $ 0.10 $ 0.08
Earnings per common share - diluted:
Net income attributable to common stockholders $ 0.09 $ 0.08
Weighted average common shares outstanding:
Basic 141,780 129,336
Diluted 146,117 131,240
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 18
Financial Statements
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share data)
Three Months Ended
1Q17 1Q16
Cash flows from operating activities:
Net income $ 14,000 $ 10,036
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other 46,213 37,091
Share-based compensation expense 2,530 1,803
Bad debt expense 103 92
Gain on sale of real estate, net (3) —
Loss on extinguishment of debt, net 32 —
Change in fair value of derivative financial instruments (839) 2,792
Changes in operating assets and liabilities:
Receivables and other assets, net (7,771) (1,438)
Accounts payable and accrued liabilities (7,934) (10,370)
Security deposits, prepaid rent and other liabilities 682 446
Net cash provided by operating activities 47,013 40,452
Cash flows from investing activities:
Investments in real estate (34,706) (158,686)
Proceeds from the sale of real estate 4,746 —
Capital expenditures (12,894) (8,824)
Restricted cash, escrow deposits and other assets 5,771 (799)
Net cash used in investing activities (37,083) (168,309)
Cash flows from financing activities:
Borrowings on unsecured revolving credit facility 92,000 166,000
Payments on unsecured revolving credit facility (10,000) (88,000)
Payments on secured mortgage loans (40,155) (1,761)
Security deposits 14 729
Proceeds from issuance of common stock — 91,757
Repurchase and cancellation of common stock (3,118) (1,901)
Dividends paid (42,536) (37,473)
Distributions paid to noncontrolling interest of limited partners (1,332) (737)
Net cash (used in) provided by financing activities (5,127) 128,614
Net change in cash and cash equivalents 4,803 757
Cash and cash equivalents - beginning of period 11,231 13,070
Cash and cash equivalents - end of period $ 16,034 $ 13,827
Financial Statements
Condensed Consolidated Statements of Cash Flows
(unaudited and in thousands)
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 19
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 20
Reporting Definitions
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”): Is presented on an assumed annualized basis.
We define Adjusted EBITDA for HTA as net income computed in accordance with GAAP plus: (i) depreciation and amortization; (ii) interest
expense and net change in the fair value of derivative financial instruments; (iii) transaction expenses; (iv) gain or loss on the sales of real estate;
(v) non-cash compensation expense; (vi) pro forma impact of our acquisitions/dispositions; and (vii) other normalizing items. We consider
Adjusted EBITDA an important measure because it provides additional information to allow management, investors, and our current and potential
creditors to evaluate and compare our core operating results and our ability to service debt.
Annualized Base Rent: Annualized base rent is calculated by multiplying contractual base rent for the end of the period by 12 (excluding the
impact of abatements, concessions, and straight-line rent).
Cash Net Operating Income (“Cash NOI”): Cash NOI is a non-GAAP financial measure which excludes from NOI: (i) straight-line rent adjustments;
and (ii) amortization of below and above market leases/leasehold interests. Contractual base rent, contractual rent increases, contractual rent
concessions and changes in occupancy or lease rates upon commencement and expiration of leases are a primary driver of HTA’s revenue
performance. HTA believes that Cash NOI, which removes the impact of straight-line rent adjustments, provides another measurement of the
operating performance of its operating assets. Additionally, HTA believes that Cash NOI is a widely accepted measure of comparative operating
performance of real estate investment trusts (“REITs”). However, HTA’s use of the term Cash NOI may not be comparable to that of other REITs
as they may have different methodologies for computing this amount. Cash NOI should not be considered as an alternative to net income or
loss (computed in accordance with GAAP) as an indicator of our financial performance. Cash NOI should be reviewed in connection with other
GAAP measurements.
Credit Ratings: Credit ratings of our tenants or their parent companies.
Customary Health System Restrictions: Ground leases with a health system lessor that include restrictions on tenants that may be considered
competitive with the hospital, which may include provisions that tenants must have hospital privileges.
Economic with Limited Restrictions: Ground leases that are primarily economic in nature and contain no material restrictions on tenancy.
Funds from Operations (“FFO”): HTA computes FFO in accordance with the current standards established by NAREIT. NAREIT defines FFO
as net income or loss attributable to common stockholders (computed in accordance with GAAP), excluding gains or losses from sales of real
estate property and impairment write-downs of depreciable assets, plus depreciation and amortization related to investments in real estate, and
after adjustments for unconsolidated partnerships and joint ventures. HTA presents this non-GAAP financial measure because it considers it
an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other
interested parties in the evaluation of REITs. Historical cost accounting assumes that the value of real estate assets diminishes ratably over
time. Since real estate values have historically risen or fallen based on market conditions, many industry investors have considered the
presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Because FFO
excludes depreciation and amortization unique to real estate, among other items, it provides a perspective not immediately apparent from net
income or loss attributable to common stockholders.
Gross Leasable Area (“GLA”): Gross leasable area (in square feet).
Investments in Real Estate: Based on acquisition price.
Leased Rate: Leased rate represents the percentage of total GLA that is leased, including month-to-month leases and leases which have been
executed, but which have not yet commenced, as of the date reported.
Metropolitan Statistical Area (“MSA”): Is a geographical region with a relatively high population density at its core and close economic ties
throughout the area. MSAs are defined by the Office of Management and Budget.
Net Operating Income (“NOI”): NOI is a non-GAAP financial measure that is defined as net income or loss (computed in accordance with GAAP)
before: (i) general and administrative expenses; (ii) transaction expenses; (iii) depreciation and amortization expense; (iv) interest expense and
net change in fair value of derivative financial instruments; (v) gain or loss on sales of real estate; (vi) gain or loss on extinguishment of debt;
and (vii) other income or expense. HTA believes that NOI provides an accurate measure of the operating performance of its operating assets
because NOI excludes certain items that are not associated with the management of its properties. Additionally, HTA believes that NOI is a
widely accepted measure of comparative operating performance of REITs. However, HTA’s use of the term NOI may not be comparable to that
of other REITs as they may have different methodologies for computing this amount. NOI should not be considered as an alternative to net
income or loss (computed in accordance with GAAP) as an indicator of our financial performance. NOI should be reviewed in connection with
other GAAP measurements.
Normalized Funds Available for Distribution (“Normalized FAD”): HTA computes Normalized FAD, which excludes from Normalized FFO: (i)
other income or expense; (ii) non-cash compensation expense; (iii) straight-line rent adjustments; (iv) amortization of below and above market
leases/leasehold interests and corporate assets; (v) amortization of deferred financing costs and debt premium/discount; and (vi) recurring
capital expenditures, tenant improvements and leasing commissions. HTA believes this non-GAAP financial measure provides a meaningful
supplemental measure of our operating performance. Normalized FAD should not be considered as an alternative to net income or loss attributable
to common stockholders (computed in accordance with GAAP) as an indicator of our financial performance, nor is it indicative of cash available
to fund cash needs. Normalized FAD should be reviewed in connection with other GAAP measurements.
1Q 2017 I Supplemental Information
Healthcare Trust of America, Inc. I 21
Reporting Definitions - Continued
Normalized Funds From Operations (“Normalized FFO”): HTA computes Normalized FFO, which excludes from FFO: (i) transaction expenses;
(ii) gain or loss on change in fair value of derivative financial instruments; (iii) gain or loss on extinguishment of debt; (iv) noncontrolling income
or loss from partnership units included in diluted shares; and (v) other normalizing items, which include items that are unusual and infrequent
in nature. HTA presents this non-GAAP financial measure because it allows for the comparison of our operating performance to other REITs
and between periods on a consistent basis. HTA’s methodology for calculating Normalized FFO may be different from the methods utilized by
other REITs and, accordingly, may not be comparable to other REITs. Normalized FFO should not be considered as an alternative to net income
or loss attributable to common stockholders (computed in accordance with GAAP) as an indicator of our financial performance, nor is it indicative
of cash available to fund cash needs. Normalized FFO should be reviewed in connection with other GAAP measurements.
Occupancy Health System Restrictions: Ground leases with customary health system restrictions whereby the restrictions cease if occupancy
in the buildings/on-campus fall below stabilized occupancy, which is generally between 85% and 90%.
Off-Campus/Non-Aligned: A building or portfolio that is not located on or adjacent to a healthcare or hospital campus or does not have a majority
alignment with a recognized healthcare system.
On-Campus/Aligned: On-campus refers to a property that is located on or adjacent to a healthcare or hospital campus. Aligned refers to a
property that is not on a healthcare or hospital campus, but anchored by a healthcare system.
Recurring Capital Expenditures, Tenant Improvements and Leasing Commissions: Represents amounts paid for: (i) recurring capital expenditures
required to maintain and re-tenant our properties; (ii) second generation tenant improvements; and (iii) leasing commissions paid to secure new
tenants. Excludes capital expenditures and tenant improvements for recent acquisitions that were contemplated in the purchase price or closing
agreements.
Retention: Represents the sum of the total leased GLA of tenants that renewed a lease during the period over the total GLA of leases that
renewed or expired during the period.
Same-Property Cash Net Operating Income (“Same-Property Cash NOI”): To facilitate the comparison of Cash NOI between periods, HTA
calculates comparable amounts for a subset of its owned properties referred to as “Same-Property”. Same-Property Cash NOI excludes
properties which have not been owned and operated by HTA during the entire span of all periods presented, excluding properties intended for
disposition in the near term, notes receivable interest income and certain non-routine items. Same-Property Cash NOI should not be considered
as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of our financial performance. Same-Property Cash
NOI should be reviewed in connection with other GAAP measurements.
