Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Shareholder Meeting (August 2009)
26 slides from Healthcare Realty Trust's shareholder meeting presentation, Aug 31, 2009
Slide 1: 2009 Annual Meeting of Stockholders of Healthcare Trust of America, Inc.
2009 Annual Meeting of Stockholders of Healthcare Trust of America, Inc. (formerly known as Grubb & Ellis Healthcare REIT) Scottsdale, AZ August 31, 2009
Slide 2: Forward-looking statements
Forward-looking statements The presentation materials contain forward-looking statements within the meaning of Private Securities Litigation Reform Act, and we intend that these forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements are not histor
Slide 3: Forward-looking statements
Forward-looking statements Our ability to effectively manage our company with our internal management team will significantly impact our ability to achieve our investment objectives. Our success depends to a significant degree upon the continued contributions of certain key personnel, each of whom w
Slide 4: Corporate Governance
Corporate Governance Five of the REIT's six directors are independent W. Bradley Blair, II Independent director of the company since September 2006 Chief executive officer, president and chairman of the board of directors of Golf Trust of America, Inc. from 1997 until November 2007 Managing Partner,
Slide 5: Corporate Governance
Corporate Governance Gary T. Wescombe Independent director of the company since October 2006 Chief financial officer and treasurer of Arnold and Mabel Beckman Foundation which supports scientific research Principal, American Oak Properties, LLC Partner in Warmington Wescombe Realty Partners from Oct
Slide 6: Strength of REIT Management
Strength of REIT Management Demonstrated leadership in Healthcare Real Estate Scott D. Peters CEO, President and Chairman of the Board CEO, President, Director of Grubb & Ellis Company (GBE:NYSE) - December 2007 - July 2008 Director, CEO, president of NNN Realty Advisors, Inc. from November 2006 -De
Slide 7: Strength of Management
Strength of Management Christopher E. Balish Senior Vice President - Asset Management First Vice President - Management Services, Lauth Property Group 2006-2009 General Manager - Taubman Group, 2005-2006 Chief Operating Officer, RMC Property Group; Vice President, Corporex; Senior Portfolio Manager,
Slide 8: Strength of Management
Strength of Management Kelly Hogan Controller Controller, Healthcare Trust of America, Inc., February 2009 Audit Manager at Deloitte & Touche LLP, 2002-2008 Accountant at Arthur Andersen LLP 2000-2002 Certified Public Accountant, Arizona and Minnesota 8
Slide 9: Organizational Chart
ORGANIZATIONAL CHART Board of Directors1 Scott D. Peters W. Bradley Blair II Warren D. Fix Larry L. Mathis Gary T. Wescombe Maurice J. DeWald Board Committees .. Investment Committee2 Audit Committee3 Nominating and Corporate Governance Committee4 Compensation Committee5 Risk Management Committee6 C
Slide 10: Timeline
Timeline 9/20/2006 - IPO Commences 1/22/2007 - 1st property acquisition completed 11/14/08 - Amended advisory agreement Set framework for transition to self-management Significantly reduced fees to advisor 3/31/2009 - REIT has $1.3 billion in total assets 4/6/2009 - Filed S-11 for a proposed follow-
Slide 11: Overview
Overview Unique Structure Our Business Self managed public, non-listed healthcare REIT - raised over $1 billion in equity since 2006 launch Self management = performance driven model; conflict free, immediate cost savings Portfolio focused on healthcare sector Strong macroeconomic trends: Aging popu
Slide 12: Company Fundamentals
Company Fundamentals 2009 Equity Raised to Date $484.6 Million Total Equity to Date $1.2 Billion Cash $445 Million Total assets $1.5 Billion Leverage 30% Average interest rate 5.7% Annual Rent $128 Million* Distributions 7.25% * $148 Million including proposed Greenville acquisition 12 NOTE: Portfol
Slide 13: Self Management
Self Management Transitioned corporate and property accounting effective July 27, 2009 Day-to-day accounting Consolidations and SEC Filings Banking and treasury management Efficient & Cost Beneficial Outsourcing: Tenant billings and cash receipts posting Accounts payable and cash disbursements Payro
Slide 14: Transition to DST Systems, Inc.
Transition to DST Systems, Inc. Transition to DST effective August 10, 2009 Updated prospectus with new Subscription documents with updated wiring instructions Benefits of transition: DST is a global leader in the financial services industry DST Vision is the leading web-based account management too
Slide 15: Framing the Healthcare Macroeconomic Opportunity
Fast Growing, Non-Discretionary Consumer Demand Expanding array of new technologies for managing chronic illness and promoting active lifestyles Longer life expectancies - ever growing need for advanced medical services Baby boomer generation just entering retirement - driving the need for high-qual
Slide 16: Projected National Health Expenditures
Projected National Health Expenditures Source: U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services, Office of the Actuary, "National Health Expenditures and Selected Economic Indicators, Levels and Annual Percent Change: Calendar Years 2003-2018." Projections are
Slide 17: Projected US Population Growth Aged 65+
Projected US Population Growth Aged 65+ Source: U.S. Census Bureau, Population Division, August 14, 2008 17
Slide 18: Our Investment Strategy
Our Investment Strategy To acquire quality properties that generate stable long-term growth in operating cash flow to pay regular cash distributions Currently 7.25% per annum* Focused on strategic relationships with key healthcare providers To preserve, protect and return your capital contributions;
Slide 19: Portfolio Snapshot
Portfolio Snapshot Existing and Active REIT with a $1 Billion Real Estate Portfolio 43 Properties (138 Buildings) One Other Real Estate Related Asset 19 States (including property securing our other real estate related asset) 5.5 Million Sq. Ft. 90% Occupancy As of June 30, 2009 19
Slide 20: Diversified Income Stream
Diversified Income Stream No single tenant accounted for 10% or more of gross leasable area of properties Broad geographic diversification As of June 30, 2009 20
Slide 21: Portfolio Strengths
Portfolio Strengths Quality - capable of sustaining long-term investment potential Location - access and visibility for tenants Fundamentals - markets with good supply/demand trends Growing population Strong employment base Barriers to entry - competition Predictable Capital Needs Cash Flow - demons
Slide 22: Recent Acquisition Highlights
Recent Acquisition Highlights OKLAHOMA CITY CONSOLIDATED (Deaconness Hospital) Oklahoma City, OK Type: Medical Office Sq.Ft.: 186,909 Acquired: 9/16/2008 MOUNTAIN PLAINS PORTFOLIO (Clear Lake Hospital) Houston, TX Type: Medical Office Sq.Ft.: 169,676 Acquired: 12/18/2008 RENAISSANCE MEDICAL CENTRE B
Slide 23: Pending Acquisition-Greenville Hospital System
Pending Acquisition-Greenville Hospital System $182,950,000 committed capital, scheduled to close in September, 2009 855,000 SF portfolio of 16 top-tier Medical Office Buildings in "A" locations Portfolio average age built/substantially renovated age of approximately 10 years. Fitch Ratings has assi
Slide 24: Self Management Score Card
Self Management Score Card 24 ADVISOR (before) SELF MANAGEMENT (current) ORGANIZATION Management Conflict of Interest Yes None Director Conflict of Interest Yes None Transaction Based Fees, excluding promote Yes None Performance Based Compensation No Yes Acquisition Conflict of Interest Yes None Dea
Slide 25: Property Management Services
25 Property Management Services - Independent 3rd Parties with fees at market rates World's largest real estate services company. Vary deep leasing/broker network nationwide Strong management team 40M sq. ft. of healthcare and mob under management Over 180M sq. ft. under management 10M sq. ft. of he
Slide 26: Projected Savings Over Years
Projected Savings Over 5 Years 26
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