Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Investor Presentation (June 2013)
19 slides from Healthcare Realty Trust's investor presentation, Jun 6, 2013
Slide 1: Healthcare Trust of America, Inc. (HTA) Company Presentation
JUNE 2013 Healthcare Trust of America, Inc. (HTA) Company Presentation Exhibit 99.1
Slide 2: Forward Looking Statements
Leading owner of Medical Office Buildings 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 a
Slide 3: HTA – the MOB Specialist
Leading owner of Medical Office Buildings Company HTA – the MOB Specialist • Focused MOB operator • Core critical locations – barriers to entry • Fortress balance sheet • Investment grade • Leverage: 30%1 • Stability: 91% Occupied • Yield: 4.9%2 Growth Sector Tailwinds • Occupancy: 91% - 94% • Const
Slide 4: Company Snapshot as of March 31, 2013
Leading owner of Medical Office Buildings 1 As of 3/31/13 2 Undepreciated assets is defined as Total GAAP assets + accumulated depreciation + accumulated amortization related to tenant relationships and FAS 141/ ASC 805 lease adjustments 3 EBITDA for 1Q13 presented on an annualized basis. EBITDA for
Slide 5: Healthcare Expenditures and Employment
$0 $1 $2 $3 $4 $5 Trillions Healthcare Expenditures and Employment 4 Strong Healthcare Employment Projected Annual Healthcare Expenditures Sources: Centers for Medicare & Medicaid Services, Bureau of Labor Statistics, Rosen Consulting Group • Healthcare was the only major sector with employment grow
Slide 6: Affordable Care Act Changing Healthcare Delivery
Affordable Care Act 5 Changing Healthcare Delivery Increasing Insurance Coverage Sources: U.S. Census Bureau, U.S. Centers for Disease Control and Prevention, Congressional Budget Office, Bureau of Labor Statistics, Rosen Consulting Group 229 256 200 210 220 230 240 250 260 '21Before ACA After ACA U
Slide 7: Aging Demographics
Aging Demographics 6 Demographic Trends Support Increased Utilization • Baby Boomers are hitting retirement age • The 65+ age group will be the fastest growing demographic over the next 10 – 20 years • This age group is projected to account for nearly 17% of the U.S. population by 2020 • Healthcare
Slide 8: MOB Opportunity
MOB Opportunity Sources: Green Street Advisors, Marcus & Millichap, Rosen Consulting Group 7 Public REIT Owners 6% Other Owners 94% Large, Fragmented Industry On-Campus is the Best Location • Hospitals create strong tenant demand and retention • Maximizes utilization of significant hospital infrastr
Slide 9: MOB Supply and Demand
MOB Supply and Demand Sources: Marcus & Millichap, Rosen Consulting Group 8 Limited New Supply • Rental rates are still below 2008 levels • Rates are now experiencing positive growth • Supply and demand could have favorable impact on rates in the future • Barriers to entry for On-Campus MOBs • Recov
Slide 10: National Portfolio in Key Markets
Leading owner of Medical Office Buildings National Portfolio in Key Markets 9 GLA Percent GLA Percent Phoenix, AZ 1,152 9.0% Houston, TX 692 5.4% Pittsburgh, PA 978 7.6% Atlanta, GA 574 4.5% Greenville, SC 965 7.5% Dallas, TX 591 4.6% Indianapolis, IN 850 6.6% Boston, MA 359 2.8% Albany, NY 879 6.8%
Slide 11: In-House Property Management
Leading owner of Medical Office Buildings In-House Property Management Fully Integrated Asset Management Platform National Property Management Platform • 4 Regional Headquarters in Atlanta, Indianapolis, Scottsdale, and Charleston • Local property managers and building engineers covering 87% of HTA’
Slide 12: Portfolio Characteristics
Portfolio Characteristics 11 Healthcare System Relationships Tenant Mix (by Annual Base Rent) 58% 42% Credit Tenants Not Rated • Strong mix of single and multi-tenant buildings • Multi-tenanted buildings have weighted average remaining lease term of 5.5 years; mix of Gross and NNN leases • Single-te
Slide 13: Stable Cash Flows
Leading owner of Medical Office Buildings Stable Cash Flows 1 Top 15 Health System Tenants 2 Agency providing credit rating varies by tenant 3 Note that the credit rating might be for an affiliate or parent entity of HTA’s tenant 4 As of 3/31/13; 2013 lease rollover excludes MTM leases equal to 1.7%
Slide 14: Key Strategic Investments in Economic Downturn
Leading owner of Medical Office Buildings Greenville, SC Key Strategic Investments in Economic Downturn • 965k SF / 17 buildings • Major Tenant: Greenville Hospital System (Moody’s: A1) • Key Acquisition: GHS / $163mm / September 2009 Pittsburgh, PA Phoenix, AZ Albany, NY Boston, MA • 1.2mm SF / 33
Slide 15: Acquisition Strategy and Sourcing
Leading owner of Medical Office Buildings • HTA has developed and maintains extensive industry relationships • Dedicated buyer focused only on MOB space • Acquired $1.8 Bn of properties in 2008 - 2010 o HTA was a cash buyer during the economic recession o Limited competition o Attractive pricing • D
Slide 16: Proven Growth Track Record
Leading owner of Medical Office Buildings Proven Growth Track Record Total NOI ($mm) Normalized Funds From Operations1 ($mm) $52 $84 $137 $186 $204 $212 $0 $50 $100 $150 $200 2008 2009 2010 2011 2012 1Q13 $22 $43 $84 $116 $135 $137 $0 $20 $40 $60 $80 $100 $120 $140 $160 2008 2009 2010 2011 2012 1Q13
Slide 17: Strong, Flexible Balance Sheet
• Over $120 million of unrestricted cash as of 3/31/13 • $650 million of credit facility availability as of 3/31/13 • Average weighted borrowing cost of 4.19% • Average weighted debt maturity of 5.9 yrs3 Strong, Flexible Balance Sheet 5.4x 4.9x 5.4x 6.5x 7.2x 1.0x 3.0x 5.0x 7.0x 9.0x HTA HCP VTR HCN
Slide 18: Experienced Management Team
Experienced Management Team Scott Peters Chairman, CEO, and President • Co-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
Slide 19: Key Investment Highlights
Key Investment Highlights Dividend of $0.575 per share Medical Office Building Specialist 91% Occupancy in Growing Asset Class Internal Platform for Same Store Growth Strong Industry and Macroeconomic Trends 18 Investment Grade Balance Sheet
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