Attached files
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| 8-K - 8-K - HEALTHCARE TRUST OF AMERICA, INC. | a2017070128-k.htm |
Baylor McKinney MOB, Duke
McKinney, TX
Estrella Medical Center, HTA
Phoenix, AZ
Healthcare Trust of America, Inc.
Largest Dedicated Owner of Medical Office for the Future of Healthcare
Annual Meeting– July 2017
670 Albany at Boston Medical Center, HTA
Boston, MA
NYSE: HTA www.htareit.com
Exhibit 99.1
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
2 www.htareit.com
FORWARD LOOKING STATEMENTS
This document contains both historical and forward‐looking statements. Forward‐looking statements are based on current expectations, plans, estimates,
assumptions and beliefs, including expectations, plans, estimates, assumptions and beliefs about our company, the real estate industry, pending acquisitions,
future medical office building performance and the debt and equity capital markets. All statements other than statements of historical fact are, or may be
deemed to be, forward‐looking statements 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.
Forward‐looking statements include information concerning possible or assumed future results of operations of our Company. The forward‐looking statements
included in this document are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in
the forward‐looking statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward‐looking statements are based on reasonable assumptions, our actual results and
performance could differ materially from those set forth in the forward‐looking statements. Factors which could have a material adverse effect on our
operations and future prospects include, but are not limited to: changes in economic conditions affecting the healthcare property sector, the commercial real
estate market and the credit market; our ability to complete our pending acquisitions; competition for acquisition of medical office buildings and other facilities
that serve the healthcare industry; economic fluctuations in certain states in which our property investments are geographically concentrated; retention of our
senior management team; financial stability and solvency of our tenants; supply and demand for operating properties in the market areas in which we operate;
our ability to acquire properties, and to successfully operate those properties once acquired; changes in property taxes; legislative and regulatory changes,
including changes to laws governing the taxation of REITs and changes to laws governing the healthcare industry; fluctuations in reimbursements from third
party payors such as Medicare and Medicaid; changes in interest rates; the availability of capital and financing; restrictive covenants in our credit facilities;
changes in our credit ratings; our ability to remain qualified as a REIT; and the risk factors set forth in our 2016 Annual Report on Form 10‐K filed on February
21, 2017.
Forward‐looking statements speak only as of the date made. Except as otherwise required by the federal securities laws, we undertake no obligation to update
any forward‐looking statements to reflect the events or circumstances arising after the date as of which they are made. As a result of these risks and
uncertainties, readers are cautioned not to place undue reliance on the forward looking statements included in this document or that may be made elsewhere
from time to time by, or on behalf of, us.
For definitions of terms and reconciliations for certain financial measures disclosed herein, including, but not limited to, funds from operations (FFO),
normalized funds from operations (Normalized FFO), annualized base rents (ABR), net operating income (NOI), and on‐campus/aligned, please see our
Company’s earnings press release issued on April 26, 2017 and our Company’s Supplemental Financial Package for the quarter ended March 31, 2017, each
of which is available in the investor relations section of our Company’s website located at www.htareit.com.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
3 www.htareit.com
LARGEST OWNER OF MEDICAL OFFICE IN THE U.S.
Approximately 24 million square feet of gross leasable area (1)
SEASONED, SKILLED MANAGEMENT TEAM
Decades of experience, acquiring, owning and operating commercial real estate
10-year track record of delivering consistent shareholder value
CORE, CRITICAL MEDICAL REAL ESTATE
On-campus and core community focus within high demand medical hubs for the future of
healthcare delivery
DISCIPLINED, ACCRETIVE GROWTH STRATEGY
Disciplined underwriting of MOB assets with record of strong NOI growth
Supported by HTA’s in‐house management and leasing platform
$6.8 billion invested over the past decade (1)
CRITICAL MASS IN ESTABLISHED GATEWAY MARKETS
Key Market Focus – 20-25 markets with growing economies and favorable demographic trends
Operational Scale achieved with 17 markets of ~500k SF creating operating synergies and
enhanced relationships that drive growth
FULL SERVICE, BEST-IN-CLASS PLATFORM
Property management and leasing platform leads to consistent same store growth
Development team adds strategic growth capabilities for new and existing relationships
STRONG, INVESTMENT GRADE BALANCE SHEET
Management has track record of successful financial management
Low leverage balance sheet with investment grade ratings
(1) As of 6/30/17.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
4 www.htareit.com
A DECADE OF VALUE CREATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$413M
2.2 MSF
$543M
2.9 MSF
$456M
2.3 MSF
$802M
3.5 MSF
$68M
0.3 MSF
$295M
1.3 MSF
$398M
1.5 MSF
$440M
1.2 MSF
$272M
0.8 MSF
$701M
2.5 MSF
$2.6B (2)
6.3 MSF
2.2 GLA 5.2 GLA 7.4 GLA 10.9 GLA 11.2 GLA 12.6 GLA
14.1 GLA 14.8 GLA 15.5 GLA 17.7 GLA 24.0 GLA
Identified and Established
Pure Play MOB Strategy
2006–2011: Invested $2.3B, 11.2 MSF
• Cash Buyer During Great Recession
• Grew Portfolio with Limited Competition
• Attractive Cap Rates lead to Accretive Deals
• Strong Balance Sheet with Low Leverage
• Investment Grade Ratings from S&P/Moody’s~
Achieving Critical Mass in Key Cities
Building Operating Platform
2012–2016: Invested $2.1B, 7.2 MSF
• Shares Listed on NYSE – No Dilutive Equity
• In-House Asset Mgmt & Leasing Platform
• ~$1B Raised via Equity & Bond Offerings
• 1:2 Reverse Stock Split
• ~3% Same-Store Growth
Industry Leader
Positioned For Growth
2017 YTD: Invested $2.6B, 6.3 MSF
• Full Service Platform with Significant
Relationships
• Significant Operating Capabilities for
Continued Growth
• Significant Same Store Growth Potential
• Strong , Conservative Balance Sheet
Enters
Miami
Expands
Presence in
North Carolina
Expands
Presence in
New York &
North Carolina
Invested ~>$1B
Becomes Largest
MOB Owner in
New England
$2.6B MOBs
Development
Platform
Expands
Presence in
Texas & South
Florida
52 Properties
Midwest,
Southeast,
Florida,
Arizona,
Texas
Expands
Presence in
Boston &
Miami
Expands Presence
in Boston,
Charleston,
Indianapolis,
Raleigh
Enters Boston
Opens Atlanta
Regional
Office
Expands
Presence in
Indianapolis,
Dallas,
Houston &
Florida
Enters
Greenville
Expands
Presence in
Arizona
Cash Buyer During Downturn
Executes on
In-House Platform
Lists Shares
on NYSE
Significant Savings
In-House Platform
Largest MOB Owner & Operator
$1B Capital Allocation
1:2 Reverse Stock Split
TSR (1)
45%
TSR (1)
54%
TSR (1)
62%
TSR (1)
132%
TSR (1)
143%
TSR (1)
171%
TSR (1)
194%
(6/30/17)
(1) TSR (total shareholder returns) represents s tock appreciation plus the reinvestment of dividends. (2) Includes investments closed as of 6/30/2017
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
5 www.htareit.com
KEY ACCOMPLISHMENTS IN LAST YEAR
HTA has established itself as the premier Medical Office Building Owner in the United States with a full
service platform with capabilities and relationships to maintain strong, consistent performance. Key
achievements since 2016 include:
Internal Growth that Flows to the Bottom Line
• Same Store Growth of 3.0%+
• Continued Margin Expansion
• Successful Integration of acquisitions onto property management and leasing platform
Accretive External Growth that Strengthens Company’s Portfolio
• Investing over $3.5 Billion to become the largest MOB REIT
• Established critical mass in key markets, 92% in existing HTA markets - 17 markets now approximately 500k SF or greater
• Focused on high quality portfolios with 81% on-campus and 93% occupied in 2017
• Significant overlap creates opportunities for synergies while maintaining an efficient corporate infrastructure
Maintained and Strengthened Investment Grade Balance Sheet
• Raised over $2.0 Billion in common equity to maintain low leverage
• Lengthened debt maturities while locking in low interest rates
Full Service Operating and Development Platform
• Expanded property management and leasing platform to cover over 93% of the portfolio.
• Acquired the best in class development platform to provide strategic capabilities to healthcare providers
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
6 www.htareit.com
194% relative total Shareholder return (1/3/07—6/30/2017)
10.3% Annualized Average Total Returns Since First Distribution
Individuals who invested $1,000 with HTA at inception have an
investment worth over $1,944 with reinvested dividends at
6/30/2017
Significantly outperformed the RMS and the S&P 500.
Outperformed SNL HC REIT Index and Direct MOB Peers
INDUSTRY-LEADING PERFORMANCE
TRACK RECORD DELIVERING SHAREHOLDER VALUE
$0.32 $0.32 $0.32 $0.32 $0.32 $0.32
$0.34
$0.36 $0.36
$0.38
$0.37 $0.37
$0.38
$0.39
$0.37
$0.40 $0.40 $0.40
$0.41 $0.41
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17
Consistent Earnings Growth
(Normalized FFO Per Share) (1)
All data as of 6/30/2017 unless otherwise stated.
(1) Normalized FFO Per Share from 2Q‐12 through 3Q‐14 is adjusted to reflect 1:2 reverse stock split.
-75%
-2 %
25%
75%
12 %
175%
225%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
HTA Total Returns (Since Inception)
HTA US REIT Index (RMS) S&P 500
HTA: 194%
S&P: 114%
RMS: 67%
-75%
-25%
25%
75%
125%
175%
225%
2007 2008 2009 201 2011 2012 2013 2014 2015 2016 2017
HTA Total R turns (Since Inception)
HTA SNL HC REIT HR The Big 3: HCP, VTR, HCN
HR: 76%
BIG 3: 165%
SNL HC: 165%
HTA: 194%
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
7 www.htareit.com
Source: American Hospital Association
MEDICAL OFFICE: HEALTHCARE TAILWINDS
Healthcare is Fastest Growing Sector of U.S.
Economy
Healthcare employment is growing 2x faster than
any other sector
10,000 people turning 65 every day (4x as many
physician visits as younger population)
Millennials are forming families which drives
healthcare utilization
Healthcare Expenditures Increasing to 20% of U.S.
GDP
Healthcare is Moving Outpatient
Focus on Cost-Effective Care – Private Insurers &
Government Providers
Outpatient Procedures are Cost Effective - Visits
are Increasing
Health Systems & Providers Focused on
Convenience – Serving Patients Where They Are
Medical Office is Primary Beneficiary of this trend
1,000
1,200
1,400
1,600
1,800
2,000
2,200
100
105
110
115
120
125
130
135
140
145
150
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
OUTPATIENT VISITS ARE INCREASING OVERTIME
Inpatient Admissions/1000 Persons Outpatient Visits/1000 Persons
INPATIENT OUTPATIENT
10%
12%
14%
16%
18%
20%
22%
$1
$2
$2
$3
$3
$4
$4
$5
$5
$6
$6
Total National Health Expenditures Spending as a % of GDP
Source: U.S. Centers for Medicare & Medicaid Services
HEALTHCARE SPENDING CONTINUES TO INCREASE
(National Healthcare Expenditures 2006 – 2025f)
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
8 www.htareit.com
MEDICAL OFFICE PROVIDES ATTRACTIVE RISK AND RETURNS
MOBs Hospitals
Skilled
Nursing
Sr. Housing
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
9 www.htareit.com
HTA VTR HCP HCN HR DOC
MOB GLA (MM SF) 22.8 19.8 18.2 17.2 13.3 11.3
MOBs On-Campus (%) 71% 72% 82% 58% 85% 45%
Top - 75 MSA's 93% 77% 76% 85% 82% 66%
Acquisitions
(Avg Annual $ since 2012) $785M $69M $140M $299M $182M $517M
NFFO/Sh - Annualized Growth
(since 1Q12) 9.5% 2.5% -5.3% 5.4% 3.4% 18.5%
Avg SS Growth (since 2012) 3.1% 2.0% 2.1% 2.3% 3.3% 2.4%
Development
(Avg $ Invested since 2012) $126M* $7M $58M $97M $16M --
Moody's / S&P Ratings Baa2 / BBB Baa1 / BBB+ Baa2 / BBB Baa1 / BBB+ Baa2 / BBB BB+
* Includes HTA - Development, formerly Duke Realty Healthcare which HTA acquired in 2Q17. HTA data includes all Duke properties under contract to close in the next 30 days.
Note: Competitor Data from Company Fil ings and HTA's property level analysis
THE LEADER IN THE MEDICAL OFFICE SECTOR
HTA is not only the largest MOB REIT, we also have a high quality portfolio and best in class platform that has delivered
results across the board for shareholders.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
10 www.htareit.com
BEST-IN-CLASS PLATFORM DRIVES CONSISTENT GROWTH
ACQUISITIONS
Key Market Relationships and Disciplined Acumen Allows for Accretive Growth
National Leader in outpatient healthcare real estate – Approximately $7 billion invested
Achieved critical mass in established key gateway cities
Improved NAV; consistent and growing cash flows
Number One Development Platform Results in Strategic Dialogue with Providers and Growth Opportunities
Building Class A MOBs to expand HTA’s density within key gateway markets
HTA Development complements in-house operating platform
Maximize NOI growth driving higher same-store growth in the future
DEVELOPMENT
IN-HOUSE PROPERTY
MGMT & LEASING
PLATFORM
INVESTMENT GRADE
BALANCE SHEET
Specialized Asset Management Team Drives Same Store Performance in Key Markets
Market experts equipped to meet and exceed tenants’ changing demands
17 markets with approximate 500k SF or more creates operating synergies, cost savings and growth
opportunities
Drives sector leading same store growth
Strong Balance Sheet with Financial Flexibility
Raised more than $5.0 billion in debt and equity transactions since listing
Maintain low leverage with staggered debt maturities
Strong balance sheet allows for continued growth
On-Campus / Community Core Portfolio in Key Markets Provides Long Term Growth Trajectory
High Occupancies and Tenant Retention create dependable growth from consistent cash flows
Well-located MOBs drive demand from major healthcare systems and physician practices
Seasoned team of finance, real estate and accounting professionals
BEST-IN-CLASS
PORTFOLIO
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
11 www.htareit.com
HIGH QUALITY
REAL ESTATE
PORTFOLIO
Gross real estate investments ($ billions) $6.8
Total portfolio gross leasable area (GLA, millions) 24.3
Key Market and Top 75 MSA exposure (invested $) 93%
Leased rate (%) – As of 3/31/17 PF for 2Q Investments 92%
ASSET MGMT
DRIVES
PERFORMANCE
Properties managed by HTA’s in-house asset management 91%
Same-property tenant retention since listing (2012)
82%
Average same-store cash NOI growth since listing (2012) 3.1%
Average remaining lease term for all buildings (years)
5.2
STRONG
PERFORMANCE
Average annual portfolio growth from acquisitions since 2012
(as of 12/31/2016)
10.4%
Annualized NFFO/share growth since 2012 (CAGR)
(as of 3/31/2017)
10%
Total Annual Shareholder Returns Since Inception
194%
INVESTMENT
GRADE BALANCE
SHEET
Credit ratings by Moody’s and Standard & Poor’s Baa2 / BBB
Total Liquidity ($millions) $691
Total Debt / Total Market Capitalization 28.3%
Debt / Adjusted EBITDA 5.7X
71%
On-Campus/Adjacent
29%
COMPANY SNAPSHOT
3.6%
3.7%
3.8%
3.9%
3.9%
4.1%
4.8%
6.0%
6.3%
12.1%
Denver
Los Angeles
Tampa
Phoenix
Hartford
Indianapolis
Atlanta
Boston
Houston
Dallas|Ft. Worth
Core Community
Outpatient
Core-Critical Real Estate Portfolio
(Pro Forma % of GLA)
Premiere Gateway Cities – Top 10
(Pro Forma % of Invested $)
(as of 3/31/2017)
(as of 3/31/2017)
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
12 www.htareit.com
HTA
MARKETS
KEY MARKETS – STRONG MACRO ECONOMIC TRENDS
Median HHI Growth
30bps
Higher Growth
Unemployment
50bps
Lower
Unemployment
Bachelor’s Degree
130bps
More per Capita
Baby Boomer
Population Growth
50bps
Higher Growth 4.2%
Master’s Degree
130bps
More per Capita
Real GDP Growth
3.7%
4.4%
20.2%
8.8%
10.5%
210bps
Higher Growth
3.7%
3.4%
4.9%
18.9%
7.5%
8.4%
U.S.
AVG
Note: Data is not pro forma for Duke and Dignity portfolio transactions. Note: Pro forma portfolio composition.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
13 www.htareit.com
ON-CAMPUS/ ADJACENT (71%)
Health system and academic campuses have significant investments in healthcare infrastructure that is difficult to
re-locate – long-term, steady demand
Aligned or located on campuses of nationally and regionally recognized healthcare systems
High energy campuses where hospitals/universities are expanding and recruiting physicians
Physician convenience - hospital utilization or teach/research at medical schools
Considerations:
Ground leases imposed by health systems can often restrict tenants in on-campus MOBs; hospital campuses not
always convenient for patients
More hospitals consolidating as more procedures move to outpatient settings
GREENVILLE, SC – $179M, ACQUIRED 2009 TUFTS & BOSTON UNIVERSITY, BOSTON, MA – $250M, ACQUIRED 2014-2015
Hospital Campus Academic Medical Center
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
14 www.htareit.com
COMMUNITY CORE – OUTPATIENT (29%)
More than 2/3 of all physicians practice “off-campus”
(source: Revista)
Off-Campus is the lowest cost location for healthcare
Physician synergies and referral patterns provide stable
leasing environment
Growth Drivers for Off-Campus
Medical technology advances allows for more care to be
done off-campus. (i.e. full hip replacements)
Providers focused on capturing patients – Accountable Care
Organizations, Population Health Management
Health Insurers focusing off-campus to lower cost; United
Healthcare is the largest employer of physicians (17k+) and
positions them off-campus
Core Off-Campus Performance Is Strong
Traditional Real Estate – Well positioned off-campus MOB’s
performs as well as good, on-campus MOBs: High Retention
and Rent Spreads
Community Core = (i) Medical Hubs Off-Campus, (ii) Affluent
Submarket, (iii) Highly Visible Locations, and (iv) Multi-
Tenanted
HTA’s Community Core Portfolio
(% of HTA’s Off-Campus Portfolio)
• 82% in Medical Hubs, cluster of medical
buildings away from campus
• 71% Multi-Tenanted Buildings
• 84% in High Visibility Locations, located
adjacent to a freeway or major arterial
roads
• 74% in Affluent Submarkets or
Commercial District locations
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
15 www.htareit.com
BEST-IN-CLASS OPERATIONS, LEASING & DEVELOPMENT
In-House Property Management and Leasing Platform totaling 22.4 million
square feet or 93% of the Total Portfolio
40 bps margin expansion in SS NOI growth in Q1-17 with ongoing synergies
Since 2013, HTA has reduced operating expenses by ~$3.6 million, or
approximately 2% per year, in each of the last two years.
Existing Reputable Development Platform Enhances Growth Potential &
Relationships with Key Tenants
Vertically integrated
Deep network of healthcare relationships
Track record of delivering projects on time and on budget
ASSET MANAGEMENT
25+ PROPERTY MANAGERS
25 ACCOUNTING PROFESSIONALS
Vendor management and contract
negotiation focused on operating
expense reduction
Operating expense benchmarking against
HTA’s national portfolio
Lease abstracting, receivables and
collections management and forecasting
ENGINEERING AND
CONSTRUSTION MGMT
70+ BUILDING ENGINEERS
Identification and coordination of all
capital improvements and preventative
maintenance
Daily inspections and supervision of all
contract maintenance
Monitoring and reducing costly
unexpected capital requirements
Supervision of life safety systems and
manage emergency on-call system
LEASING SERVICES
15+ LEASING PROFESSIONALS
Focus on building critical relationships
directly with physicians and health
systems
Strategic leasing to maximize tenant
synergy and retain tenants that are
expanding practices
Regional dedication and knowledge of
surrounding medical office buildings
leasing terms and tenancy
VERTICALLY INTEGRATED
DEVELOPMENT PLATFORM
~15 DEVELOPMENT PROFESSIONALS
Deep network of healthcare
relationships
Track record of delivering projects on
time and on budget
Average historical starts of $126 million
per year
HIGH-DEMAND
LOCATIONS
7 PROJECTS
470,000 SQUARE FEET
86% pre-leased, mitigating lease-up risk
On-campus assets affiliated with top
performing healthcare systems
Class A MOB assets for the future
delivery of healthcare
ACCRETIVE GROWTH
PROSPECTS
~$50 MILLION REMAINING SPEND
$10 MILLION - $11 MILLION STABILIZED NOI
Accretive development projects in
established key, gateway cities adds
another growth driver to HTA’s fully
integrated platform
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
16 www.htareit.com
2017 Investments Creates Medical Office Leader
Note: Includes $138 Million in properties related to the Duke transaction that will close in 3Q17.
(1) Includes 1 property valued at $66 million that may be closed within next 18 months
Less Other
ROFRs(1)
2Q
Investments
Invested $2.75 Billion <$495 Million> $391 Million $2.65 Billion
~5.0% In-Place/
~5.25% Stabilized
# Properties
65 Stabilized /
7 Development
11 24
78 Stabilized /
7 Development
GLA 6.6 Million SF 1.4 Million SF 1.3 Million SF 6.5 Million SF
% On-Campus (By GLA) 81% 92% 90% 80%
% MOBs (By GLA) 87.7% 100.0% 100.0% 91.1%
% Leased 94.3% 97.5% 88.6% 92.6%
% in HTA Existing
Markets
85% 100% 100% 91%
Duke Transaction
TOTAL 2Q
INVESTMENTS
Cap Rate (2 )
~4.75% In- Place/
~5.0% Stabilized
~4.7% ~6%
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
17 www.htareit.com
STRATEGIC RATIONALE
24.3 mm (2)
Combined Total GLA
74%
Leased to Major
Hospital Systems(3)
~91%
Assets Within HTA’s
Markets(2)
3.4%
Combined Pro Forma
SS NOI Growth(6)
Transformational Acquisition Creates Dominant Public Pure-Play MOB Platform
National Leader in outpatient healthcare real estate, an unconsolidated sector undergoing significant
change and macroeconomic growth trends
Pro forma enterprise value of ~$9.0 billion makes HTA the largest public MOB platform(1)
High-Quality Portfolio Focused On-Campus and in Community Core Locations
~80% located directly on or adjacent to health system campuses
Combined portfolios exhibit best-in-class same property NOI growth
Core critical assets with excellent visibility in prime position for healthcare delivery
92% leased with 9.6 weighted average lease term(4)
New construction with an average age of 8 years(5) and very limited capital needs
Significant Portfolio Overlap Creates Scale in Key Gateway Markets
Pro forma portfolio focused in 20 markets with strong growth characteristics
Increased market density allows for significant operating synergies and growth opportunities utilizing the
combined operating platform.
Pro forma – 17 markets with approximately 500k or more SF of GLA
Combined Full-Service Operating Platform with History of Performance and Execution
HTA’s operating platform has demonstrated significant growth maximizing acquired properties
Proven development platform allows for full-service relationship with new and existing healthcare
providers
Development assets are currently 86% pre-leased
(1) Excludes all properties with exercised ROFR/ROFOs. Includes $138MM in properties that remain to close (2) Based on Q1’17 ABR. (3) Based on GLA of 2Q Investments. (4) Weighted average lease term of Duke
portfolio, does not include Dignity assets. (5) Average age of Duke portfolio, does not include Dignity assets. (6) Same store growth weighted by GLA at 12/31/16 since 2012.
(2) Includes $391 million investments in 24 MOBs, aggregating 1.3 million square feet as of June 30, 2017.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
18 www.htareit.com
100,000 Sq Ft.
1,000,000 Sq. Ft.
500,000 Sq. Ft.
Scale
Combined Portfolio by Square Feet
PROXIMITY TO EXISTING MARKETS DRIVES EFFICIENCIES
Uniquely positioned to create synergies across HTA’s existing markets
Proximity
HTA Duke + 1H Acquisitions Development
HTA has significant existing operating experience in all pro forma top markets
HTA manages 93% of the current portfolio through an In‐House Property Management and Leasing Platform, leading to better operating margins.
On a pro forma basis, HTA will be in 17 markets with each having approximately 500,000 or more SF of GLA
Proximity to
Closest HTA Asset
# of
Buildings
% of
Assets
Within 3 miles 7 6.9%
Within 5 miles 16 15.8%
Within 10 miles 45 44.6%
Within 20 miles 63 62.4%
Within 30 miles 72 71.3%
Within 50 miles 86 85.1%
100 Buildings
(94 Properties)
100%
Duke + 1H Acquisitions
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
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Tenant Rating % of ABR
Baa2 4.6%
A1 4.1%
Aa2 2.6%
B2 2.4%
B1 2.4%
B2 2.3%
A1 2.3%
A2 1.7%
A1 1.3%
Baa2 1.3%
Total 25.0%
EXPANDED RELATIONSHIPS WITH TOP HC SYSTEMS
As the largest MOB platform with expanded capabilities, HTA will continue to be an increasingly
critical partner to the top hospital systems.
Pro forma HTA’s exposure to investment grade rated tenants and provides the company exposure to new hospital relationships.
HTA Pre-Transaction
(1) Moody’s credit rating. (2) S&P credit rating.
(1)
HTA Post-Transaction
(1) Tenant Rating % of ABR
Aa3 3.4%
Baa2 3.4%
A1 3.0%
B2 2.9%
Aa2 1.9%
B2 1.8%
B1 1.7%
A1 1.7%
Aa2 1.6%
Aa3 1.6%
Total 22.8%
Duke + 1H Acquisitions
(1)
(2)
Tenant Rating % of ABR
Aa3 11.9%
Aa2 5.7%
Aa3 5.5%
B2 4.4%
B2 4.3%
NR 3.7%
A3 3.5%
AAA 3.4%
A 3.1%
Aa3 3.0%
Total 48.6%
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
20 www.htareit.com
$0
$50
$100
$150
$200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Millio
ns
NEW DEVELOPMENT CAPABILITIES ENHANCE GROWTH
Existing Reputable Development Platform Enhances Growth Potential & Relationships with Key Tenants
Vertically integrated platform that provides full offering of services from
construction, development, to property management
Deep network of healthcare relationships
Track record of delivering projects on time and on budget
Current development pipeline is 86% pre-leased / leased, minimizing
lease-up risk
Average historical development starts of $126 million per year
Main Line Bryn Mawr MOB
Philadelphia, PA | Main Line Health
Annual Development Starts(2)
86%
Pre-Leased
470,000
Square Feet
$10 - $11mm
Stabilized NOI(1)
~$50 mm
Remaining Cost to
Spend
7
Development
Projects
$126mm
Historical Avg.
(1) Actual results may differ materially from these estimates. Assumes development assets are leased to 100%.
(2) For the Duke portfolio only.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
21 www.htareit.com
$2
$101
$406
$145
$304
$1,848
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
2017 2018 2019 2020 2021 Thereafter
M
ill
io
n
s
Credit Facility Secured Mortgages Term Loans Unsecured Notes Seller Financing
WELL CAPITALIZED, FLEXIBLE BALANCE SHEET
HTA has completed the financing of its 2Q Investments in a manner that maintains its strong, investment grade
balance sheet.
Debt Maturity Schedule
Well-Laddered Debt Capitalization
with Limited Near-Term Maturities
Equity Financing
Raised over $1.7 Billion in common equity through overnight and ATM transactions in Q2
Maintained low leverage profile despite significant investments
Locked in cost of capital for long term accretion
Debt Financing
Raised approximately $1.2 Billion in debt to complete the financing
$900 Million in public unsecured bonds at 3.4% average interest rate and 7.8 years average duration
$286 Million in seller financing at 4.0% maturing in 3 equal installments
Note: Reflects announced 2Q Capital Market transactions
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
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HTA PROVEN HISTORY OF ACQUISITION SUCCESSES…
Disciplined Acquisition Underwriting
Play-offense history since inception - $4.4 billion of investments vs. $163 million of dispositions (through Q1 2017)
Duke MOB portfolio consists of complementary, high-quality assets similar to prior acquisitions
HTA’s management team has a proven track record of integrating assets onto the existing platform
($ in millions)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
To-Date
Acquisitions Dispositions
$413
$543
$456
$802
$68
$295
$398
$440
$83
$440
$36 $39
$272
$701
$2.6B
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
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EXPERIENCED MANAGEMENT TEAM
HTA’s Executive Leadership Team Has Decades of Experience
Scott Peters
Chairman, CEO, and President
Founded HTA in 2006
CEO of Grubb & Ellis (NYSE), ‘07‐’08
CEO of NNN Realty Advisors, ‘06‐’08
EVP, CFO, Triple Net Properties, Inc.,
‘04‐’06
Co‐Founder, CFO of Golf Trust of America,
Inc. (AMEX), ’97‐’07
EVP, Pacific Holding Company/LSR, ‘92‐’96
EVP, CFO, Castle & Cooke Properties, Inc.
(Dole Food Co.), ‘88‐’92
Robert Milligan, Chief Financial Officer
(With HTA Since 2011)
EVP Capital Markets, HTA, ‘11 – ‘16
Vice President, Bank of America Merrill Lynch, ‘07–’11
Senior Analyst / Financial Management Program, General Electric, ‘03 –’07
Amanda Houghton, EVP – Asset Management
(With HTA Since 2009)
Manager of Joint Ventures, Glenborough LLC, ‘06–’09
Senior Analyst, ING Clarion, ‘05 –’06
Senior Analyst, Weyerhauser Realty Investors, ‘04–’05
RSM EquiCo and Bernstein, Conklin, & Balcombe, ‘01‐’03
Keith Konkoli, EVP – Development
(28 years progressive development experience within the MOB space)
EVP - Healthcare, Duke realty, ‘14 – ‘17
SVP – Healthcare, Duke Realty ‘07 – ’14
SVP-Real Estate Operations, Duke Realty, ‘04 –’07
VP-Regional Asset Manager, Duke Realty, ’01 – ‘04
David Gershenson, Chief Accounting Officer
(With HTA Since 2012)
Director of Financial Planning & Analysis, HTA, ’14 – ’16
Assistant Controller, HTA ‘12 – ‘14
Senior Manager, BDO USA LLP, ’03 – ’12
Certified Public Accountant – California
Ann Atkinson, SVP – Acquisitions
(With HTA Since 2012)
Director of Acquisitions, HTA, ‘12 – ‘16
Real Estate Investment Specialist, JDM Partners, LLC, ’10 –’12
Medical Office Investment Broker, Cassidy Turley (f/k/a Grubb & Ellis), ‘04 –’10
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
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LARGEST OWNER OF MEDICAL OFFICE IN THE U.S.
Approximately 24 million square feet of gross leasable area (1)
SEASONED, SKILLED MANAGEMENT TEAM
Decades of experience, acquiring, owning and operating commercial real estate
10-year track record of delivering consistent shareholder value
CORE, CRITICAL MEDICAL REAL ESTATE
On-campus and core community focus within high demand medical hubs for the future of
healthcare delivery
DISCIPLINED, ACCRETIVE GROWTH STRATEGY
Disciplined underwriting of MOB assets with record of strong NOI growth
Supported by HTA’s in‐house management and leasing platform
$7+ billion invested over the past decade (1)
CRITICAL MASS IN ESTABLISHED GATEWAY MARKETS
Key Market Focus – 20-25 markets with growing economies and favorable demographic trends
Operational Scale achieved with 17 markets over 500k SF creating operating synergies and
enhanced relationships that drive growth
FULL SERVICE, BEST-IN-CLASS PLATFORM
Property management and leasing platform leads to consistent same store growth
Development team adds strategic growth capabilities for new and existing relationships
STRONG, INVESTMENT GRADE BALANCE SHEET
Management has track record of successful financial management
Low leverage balance sheet with investment grade ratings
(1) Pro-forma for Duke and recent Q2-17 acquisitions.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
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Healthcare Trust of America, Inc.
Leading owner of Medical Office Buildings Investor Presentation | July 2017
All Data as of June 30, 2017 Unless Otherwise Stated
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Core Locations & Performance
Core-Critical locations lead to long term demand
Stable Rental Performance Over All Cycles:
Occupancy and Rental Rates:
< 1% Defaults on MOBs in Downturn
Tenant Retention > 80% Industry Wide
Limited Re-tenanting Costs (10-12% of NOI) vs
Traditional Office (18 – 20+%)
Limited New Supply Given Core Locations (< 2% of
Inventory)
Medical Office is the “New” Office
MOBs outperformed traditional Office during
Downturn
Significant Private Capital Interest: Stable
Valuations, Additional Liquidity
Comparable Growth over Full Cycle with Lower
Volatility
Valuations Continue to be Compelling Relative to
Office: MOB REITs at 20-21x 2016 FAD vs Office
REITs at 25-26x 2016 FAD
Same Store Growth Over Time
Source: Green Street Advisors
10-Year CAGR Office 2.3% MOB: 2.4%
Nominal Cap Rates – Gap Remains
Source: Green Street Advisors