Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Merger or Acquisition (May 2022)
12 slides from Healthcare Realty Trust's merger presentation, May 5, 2022
Slide 1: Strategic Business Combination Update
Healthcare Realty and Healthcare Trust of America May 5, 2022 Strategic Business Combination Update
Slide 2: Strategic Combination Update
2 Strategic Combination Update • $1.1 billion HTA special cash dividend • Accretive growth capital for acquisition and re/development funding • Opportunistic, accretive share repurchase ($500 million recent authorization) USE OF PROCEEDS • $1.5 billion revolving credit facility with expected full av
Slide 3: Accretion Bridge
3 Accretion Bridge (1) 2023 weighted average share count assumed to be approximately 159 million for HR Standalone and approximately 406 million for New HR, consistant with the proxy filed on May 2, 2022. (2) Based on $1.12 billion assumed proceeds for the special dividend. NOI loss on assets contri
Slide 4: Transaction Sources and Uses
4 Transaction Sources and Uses CURRENT: PHASE 1 • Before or around closing • $1.6 billion of proceeds • $1.1 billion of HTA special dividend • $500 million of excess proceeds - Growth capital - Opportunistic share repurchase SOURCES ($ in Billions) Equity exchange $7.2 HTA senior unsecured notes 2.6
Slide 5: MOB Portfolio Characteristics
5 MOB PORTFOLIO CHARACTERISTICS NEW HR(1) ASSET SALES JOINT VENTURE Square Feet 41.7M 2.5M 1.0M % Off-Campus 32.7% 52.5% 33.4% % Single-Tenant 18.0% 48.1% 38.9% WALTR(2) 4.7 years 6.0 years 6.4 years 10-Mile Population Growth 5.0% 4.3% 4.7% Average Rent Growth(3) 2.7% 2.5% 2.8% Key Markets Rome (GA)
Slide 6: Accelerated Growth
6 Accelerated Growth 0% 1% 2% 3% 4% 5% 6% 7% 8% 2019 4.4% 2020 4.4% 2021 4.7% 4.5% HR H ISTOR ICAL AVERAGE A N N U A L F A D P E R S H A R E G R O W T H The strategic combination is expected to accelerate annual FAD per share growth by 100-200 basis points to 5-7%. OCCUPANCY GAINS +100bps • HR – 87.
Slide 7: Cluster Opportunity
7 Cluster Opportunity By clustering properties around hospital campuses, Healthcare Realty solves health system needs and accelerates per share growth. (1) Includes 38 buildings for HR and 72 buildings for HTA (2) Based on estimated value of $400 per square foot and an average building size of 65,00
Slide 8: Cluster Formation - Denver
8 Cluster Formation - Denver Centura St. Anthony Campus HR MOB & Future DevelopmentHealthcare Realty Property H St. Anthony Hospital HR MOB & Future DevelopmentHealthcare Realty Property Developed two on campus MOBs • 186,672 SF • $50.3M 2012 2015 Acquired one MOB adjacent to campus • 47,508 SF • $9
Slide 9: Cluster Formation - Seattle
9 Cluster Formation - Seattle H HR MOB & Future DevelopmentHealthcare Realty Property Acquired two on campus MOBs, including one for redevelopment • 134,099 SF • $77.9M 2016 2017 Acquired one adjacent MOB on 4 acres of land • 32,828 SF • $9.7M 2020 Developed one MOB on campus • 151,031 SF • $52.5M 2
Slide 10: Market Clustering Strategy - Seattle
10 N H H H H H H H H H H Edmonds Northgate Seattle Bellevue Kirkland Issaquah RentonBurien Tacoma 4 properties $50.2M investment 171k square feet 4 properties $124.6M investment 256k square feet 2 properties $65.2M investment 135k square feet 1 property $23.6M investment 36k square feet 3 properties
Slide 11: Forward-looking statements
This communication contains certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act. Healthcare Realty Trust Incorporated (“HR”) and Healthcare Trust of America, Inc. (“HTA”) intend s
Slide 12: Additional information and where to find it
Information as of December 31, 2021 unless otherwise disclosed THE SEC IN CONNECTION WITH THE PROPOSEDTRANSACTION, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HR, HTA AND THE PROPOSED TRANSACTION. Investors and security holders may obtain copies of these documen
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