Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Investor Presentation (May 2012)
38 slides from Healthcare Realty Trust's investor presentation, May 31, 2012
Slide 1: Healthcare Trust of America, Inc. May 2012 Presentation
Exhibit 99.1 Healthcare A Company May Leading 2012 Presentation Owner Trust ofofAmerica, Medical Inc. Office Buildings
Slide 2: Forward-Looking Statements
Forward This assumptions within uncertainties things, the Factors estate are to availability York Forward-looking circumstances 1that acquire laws geographically expectations may document Stock market the future governing which looking bereal meaning Exchange; of made and that and economic, capital
Slide 3: Table of Contents
Table 1. 2. 3. 4. 25. Company Portfolio Healthcare Financial Investment of Contents and Review Overview Sector Execution AssetFundamentals Management & Summary Overview
Slide 4: Opportunity Overview: NYSE Listing
Opportunity Issuer NYSE Listing Approximately Shares expected No Dividend 1Phased Dividend Shares Healthcare /Outstanding in Date Ticker to /liquidity Offered yield yield be overview NYSE eligible HTA 230 $0.575 based Trust HTA for million Listing existing to on of per istrade America anot on total
Slide 5: Company Overview
Company Overview un
Slide 6: Healthcare Overview and HTA
Healthcare Overview •HTA •96% •Well-defined •Greater •Experienced •Favorable •Healthcare •Increased •Aging •Constrained A Focused Strong 5¹Significant As Leading ofof isGovernance March population aportfolio MOB than self healthcare Owner Trust macroeconomic Demographic reform new 50% management inv
Slide 7: Company Snapshot
Company Building 5% single-tenant States Debt/ AZ 4321–IN 5fair 6Buildings Tenant Based Excludes Undepreciated EBITDA Includes 10% Investment Credit-rated 11% value Total Credit TX on Renewal Type of Snapshot leases for share acquisition Undepreciated 10% Derivatives ratings buildings Gross 1Q12 gra
Slide 8: Corporate Strategy
Corporate HTA’s markets, Relationship Targeted On-campus Market Target Credit Attractive Conservative Internal Tenants on-campus properties high business credit-rated strategy growth with Transactions mix Philosophy growth locations driven capital the of isfriendly opportunities affiliated to single
Slide 9: Best-In-Class Value Proposition
Corporate Best-In-Class On-Campus Diversified Experienced Acquired, Value “Strong, Strong, 8Low leverage Proposition Flexible Patient, disposed Philosophy portfolio MOB Senior Portfolio Low Balance Prudent” focus cost and Management by debt asset tenant, Stable SheetFinancial managed state, and Team
Slide 10: Financial and Governance Statistics
mm 11.0 11.2 12.0 12.2 13.0 9.0 10.0 8.0 Stabilized 9.0x 10.0x 8.0x EBITDA Est. /2012 30.4% 30% Debt 1.0x 0.0x HTA as #Investments Sq Statistics % Portfolio Lease Tenant Development Unrestricted and Total Liquidity EBITDA/ Independent Staggered Shareholders Corporate 21Ownership Net 943number 3.0x A
Slide 11: History of Acquisition Growth
A History Company Current $0.4Bn Limited Historical Acquisition ($ $1,000 $600 $558 $800 $400 $408 $200 2007 $0 1Note: 10 in millions) 2009 $494 $214 $68 2008 Based $806 $1.5Bn competition—cash Includes Growth of2009 Volume on Prudent $2.5Bn acquisition 2010 mortgage by Growth 2011 Yearprice notes 2
Slide 12: Next Phase of Growth
Next Phase Access acquisition provide 11 to a robust public pipeline of Growth platform equity Potential markets for future in the growth equity future; issuances and lowering valuewhen creation our trading cost of capital at premium Utilize to Investment NAV to makeGrade accretive ratings acquisiti
Slide 13: Key Strategic Investments 2010-2012
Key Strategic Greenville $163mm Banner $107mm Albany $197mm Pittsburgh $133.5mm Steward $100mm 12 Sun Medical Portfolio / March September December November Metro Hospital / City 2010-2012 Investments Portfolio 2012 Portfolio 2009 2010 2009 372k 978k 641k 960k 856k SF SF/SF /SF 13 3 /buildings /build
Slide 14: Key Strategic Investments (cont'd)
Key Strategic Indiana $90mm Anchored Aurora $74mm Raleigh $44mm Deaconess $45mm 100% 13 NNN Wisconsin University /Portfolio June February December March by Clinic toIndiana Investments 2008 Aurora Deaconess 2010 Portfolio Portfolio 2009 Hospital 690k 2010 University 261k Health 315k SF 242k Health (
Slide 15: Experienced Management Team
Experienced Scott Chairman, •Co-Founded •CEO •Co-Founder, •EVP, Mark CEO, Mgr.of Vice Founder/Principal–Pacific Hospital Kellie VP Certified Amanda Manager Senior RSM Member Appointed 14 ofPresident, Peters EquiCo Engstrom, InSite Financial of Pacific CFO, Pruitt, Analyst, Manager, Real Administrato
Slide 16: Strong Corporate Governance
Strong •6 •5 •Five Audit Selects Risk Composed Primary management Annual All Proactive Opted 1No 15 corporate Corporate Compensation Advises Nominating Identifies Develops Investment Reviews 5Highlights IncludesMember Independent Management board Committee and election function the of and stockholde
Slide 17: Portfolio and Asset Management Overview
Portfolio and Asset Management Overview 16
Slide 18: Extensive Asset Management Platform
Extensive Robust Acquisitions Property Leasing Management Construction Proactive Integrated 3Asset 17 Acq/ Finance Management Operating regional Acquisition –Asset South/West 3.9mm 50% East 6.1mm 42% Midwest 2.4mm 64% Coast under SF and accounting, Disp Accounting Treasury Tax Execution Underwriting
Slide 19: Regionally Focused Portfolio
National Indianapolis, Midwest East Charleston, GLA: Portfolio Gross Total Occupancy 1Q12 Investment Credit-rated % 1Wtd GLA: On-Campus Avg. South/ buildings portfolio Tenant 6.1 real31% 20% 49% Portfolio, as remaining age SF estate grade 91% SC Southwest of tenants Renewal IN GLA: of 3/31/12 GLA /2
Slide 20: Diversified Portfolio and Tenant Mix
Diversified Geographic NY FL Other PA SC IN 264 Top Tenant Tenants Credit 56% 44% Rated Lease (by 40% Gross NNN 60% Multi- 66% Single Strong Multi-tenanted 19 10% 8% 9% Annual GLA) 7% buildings 560% credit-rated states Type Tenant mix Mix 31% AZ GA Not TX NNN 11% Base of Portfolio 5% Diversification
Slide 21: Stable Tenants, Top Credit Rating
Stable Top Rating Greenville Highmark Steward Institute Aurora Indiana Community West Kindred Select Deaconess Banner Hospital Total Granular Rollover 10% 15% 20% 25% 6.3% 2012 0% 5% Average 90.7% 93% 88.7% 89.5% 91% 2007 85% 87% 2189% Tenants1,2,3 Tenants 9.3% Penn 2013 2008 Tenants 7.4% Medical Ca
Slide 22: Property Management In-House
Property Currently 90% 100% 80% 50% 60% 70% 40% 30% 10% 20% managed 0% 2010 (Current) In-house Direct Fee Eliminate charges Indirect Efficiencies More Increased 1Plan 21Based % savings to 3rd % tenant In-house 2011 direct (Single- Benefits be (Multi- (5% Benefits on party Management Property RSF (Ye
Slide 23: Intensive Asset Management
Intensive Major Situation Asset HTA 2010 2011/12 Value 2.5% Significant 21Total assignments/buy-outs 22Excludes Retention focused — estimated Y-o-Y Management Enhancement health –established Asset transitioned improvement one rate same system internal Management property annualized defined store Imp
Slide 24: Healthcare Sector Fundamentals
Healthcare Sector Fundamentals 23
Slide 25: Favorable Demand Fundamentals
Favorable Demand Population Millions 100 80 20 14% 40 16% 60 018% 1980 Annual Trillions 80% $5 $4 $3 $2 $1 $0 Healthcare 2019f 2014f 2009 2004 1999 Adding Increasing Pushing Aging 30.7mm 65+ Growing 20% Source: 2410% 20% 12% 1969 1974 1979 1984 1989 1994 22% Population spends of 1990 U.S. GDP Expend
Slide 26: MOB Sector Benefiting from Shift to Outpatient Care
MOB Medical Fragmented REIT Other Annual Total Millions 1,000 200 400 2.9 600 3.1 0800 1992 Visits Outpatient 128 122 124 2,000 126 116 118 1,600 120 110 112 1,200 114 1989 ¹Inpatient 25 Source: 2.51,000 1,400 2.7 2,200 1,800 1994 1991 Visits, Owners 3.5 3.3 to Opportunity Visits Office Hospital Per
Slide 27: Value of On-Campus Medical Office
MOBofof (96% (4% Medical On-Campus Hospitals hospital Off-Campus Significant Lower Attracts 26 –retention GLA) Location, independent campuses GLA) Office create competition or is Value and the Aligned and strong Not Location, Best isrental physicians Aligned Property tenant Location from rate Locati
Slide 28: Medical Office Supply Outlook
Medical 86420Supply 10 12 14 16 18 20 MOB 15.0% 12.5% 11% 10% 10.0% 9% 8% 7.5% 5.0% 2.5% (1.8%) 0.0% 2002 Year-Over-Year New Hospitals Outlook Vacancy 4.2% On-campus Source: 27 0028% 9% 11% 10% Construction MOB 2004 1.0% -1.0% -3.0% -5.0% annual Vacancy Completions 7.0% 12% 9% of 9% Rosen Office is
Slide 29: Acquisition Strategy and Hospital Relationships
Acquisition Hospitals Systems Healthcare Mortgage Real HTA Brokers access MOB oREITs, Strong 1tenant Transactions HTA Hospital Estate Positioned has developers retention both relationships acquired wedeveloped Developers Lenders and do direct Strategy not measured Developer rates over tocontinue com
Slide 30: Financial Review
Financial Review 29
Slide 31: Financial Highlights
Financial Strong MOB Proven Historical Acquisition Stable, Credit Lease Consistently Investment Leverage Lowering 30 fundamentals structure—good Tenants Business Predictable Track –Highlights the NOI Grade low target high cost Record /relative Model FFO occupancy Balance size of Cash provide borrowi
Slide 32: Proven Track Record of NOI and FFO Growth
Proven Total $200 $206 $150 $50 $52 Normalized $120 $128 $140 2008 $0 $20 $22 $40 $43 $60 $80 $84 $100 NOI 1Note: 2other 31Normalized 1Q12 growth $186 $137 $85 $115 2009 NOI one-time NOI Growth is presented ($mm) and 2010 Funds driven FFO items Normalized Track 2011 From is by ondefined Record 1Q12
Slide 33: Strong Balance Sheet and Debt Maturities
Strong, Pro Secured 8.1x Equity 72.7% Balance Over $575 $400 $300 delayed $100 $18 Total 1% Income 2actual As Source Excludes ofForma $73 Debt of Total $30 million Liquidity results VTR 1.0x 3/31/12, Flexible +draw Sheet 9.0x $100 SNL million Interest 17.8% 5.8% Capital extension HTA credit of term
Slide 34: REIT Valuation Comparison
REIT ($ HTA* sq. IL % Market Share $25,130 Credit 40.8% Source: (1) for others and forma Note: mathematical Looking in MOB(2) CA, ft.) Occupancy HTA’s where millions) Portfolio None Price(3) for SNL HR Overview rating 12.4 35.2% TX, Valuations Company $23,686 Statements” the which OHI square 90% Fin
Slide 35: Key Investment Highlights
Key Investment High Attractive Extensive Experienced Conservative Greenville (Greenville, Desert (Phoenix, 34 Quality Ridge AZ) Relationships Industry Life SC) Senior Medical Balance Center Highlights Fundamentals Management Sheet Office Generating with Building Growth-Oriented Team Attractive Portf
Slide 36: Investment Execution & Summary
Investment Execution & Summary 35
Slide 37: NYSE Listing and Dividend
Listing 1HTA 36 hason will1st applied lower the tranche NYSE the to dividend list of Class its shares1 A per shares share on the to NYSE $0.575 Anticipated to provide atiming yield competitive is on or about with June HTA’s 6, 2012 publicly traded peers
Slide 38: Phased-in Liquidity for Outstanding Class B Shares
Phased-in Outstanding Class Equal Directors Board 37 A B B1 B2 B3 ownership/voting discretion has shares shares and Liquidity adopted shares Officers listed convert convert toasplit allow of resolution onshares Lock-up Class toNYSE to rights evenly Class Class Bwill between with Shares requiring A b
Healthcare Trust of America — Investor Presentation (May 2012) on 6ix