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
Strategic Business Combination Update Healthcare Realty and Healthcare Trust of America May 5, 2022
Slide 2: Strategic Combination Update
Strategic Combination Update • Reached preliminary agreements with three institutional investors for net proceeds of $1.6 billion at a weighted average cap rate of 4.8% J O I N T V E N TU RE / • Expected to close in separate tranches, with the initial transactions expected to close prior A S S E T
Slide 3: Accretion Bridge
Accretion Bridge Using original transaction assumptions, Healthcare Realty anticipates achieving approximately 2.0% accretion on 2023 FAD per share. Excludes additional accretion potential from occupancy gains, rent growth, and accelerated external investment. HR 2023E FAD + HTA 2023E FAD - JV / ASS
Slide 4: Transaction Sources and Uses
Transaction Sources and Uses JV AND ASSET SALES SOUR CES ($ in Billions) CURRENT: PHASE 1 Equity exchange $7.2 • Before or around closing HTA senior unsecured notes 2.6 • $1.6 billion of proceeds Joint venture / asset sale proceeds 1.6 • $1.1 billion of HTA special dividend New bank debt 0.7 • $500
Slide 5: Portfolio Alignment
Portfolio Alignment The asset sales align the portfolios where Healthcare Realty can create the most value from its cluster strategy in target markets, while the joint venture positions New HR for future growth. MOB PORTFOLIO ASSET JOINT NEW HR (1) CHARACTERISTICS SALES VENTURE Square Feet 41.7M 2.5
Slide 6: Accelerated Growth
Accelerated Growth The strategic combination is expected to accelerate annual FAD per share growth by 100-200 basis points to 5-7%. 8% 7% +30bps +30bps DIRECT SOURCING 6% +20bps RE/D EV ELOPEMN T +100bps RE N T G RO W T H ANNUAL FAD PER SHARE GROWTH 5% OCCUPANCY GAINS 4.5% HR HISTORICAL AVERAGE 4.7%
Slide 7: Cluster Opportunity
Cluster Opportunity By clustering properties around hospital campuses, Healthcare Realty solves health system needs and accelerates per share growth. HEALTH SYSTEM NEEDS HR SOLUTION & VALUE SHAREHOLDER BENEFIT • Expand care footprint • Re/Development Occupancy gains • Patient experience • Reloc
Slide 8: Cluster Formation - Denver
Cluster Formation - Denver INVESTMENT PROGRESSION 2 012 2015 20 1 7 20 1 8 TODAY FUTURE Developed two on Acquired one MOB Developed 3rd on Acquired three buildings Current cluster size Embedded campus MOBs adjacent to campus campus MOB on 15 acres of land for development • 539,082 SF future developm
Slide 9: Cluster Formation - Seattle
Cluster Formation - Seattle INVESTMENT PROGRESSION 2 016 2017 20 20 20 22 TODAY FUTURE Acquired two on Acquired one Developed one MOB Acquired one MOB Current cluster size Embedded campus MOBs, adjacent MOB on 4 on campus adjacent to campus development • 331,256 SF including one for acres of land po
Slide 10: Market Clustering Strategy - Seattle
Market Clustering Strategy - Seattle Healthcare Realty's Seattle portfolio of hospital-centric clusters represents the company's model for growth. INVESTMENT PROGRESSION 2008 2012 2016 2020 2022 N # of Buildings 2 6 15 27 28 Edmonds 4 properties H Square Feet 141.0K 379.3K 957.7K 1,545.5K 1,558.8K $
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
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 documents free of charge through the website maintained by the SEC at
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