Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Investor Presentation (May 2012)
42 slides from Healthcare Realty Trust's investor presentation, May 17, 2012
Slide 1: Healthcare Trust of America, Inc. - Leading Owner of Medical Office Buildings
Exhibit 99.1 Exhibit Healthcare HTA A NYSE: Leading HTA 99.1 Owner Trust ofofAmerica, Medical Inc. Office Buildings
Slide 2: Forward-Looking Statements
Forward This estimates, looking and other believe statements. commercial property properties including liquidating qualified Forward-looking circumstances or THIS MADE THE MATERIALS INVESTORS DOCUMENTS AGENT DECISION May 1A Leading that uncertainties document 2012 SECURITIES things, COMMUNICATION ma
Slide 3: Management team internalized; planned NYSE listing
We intend Aggregated Management Non-traded Received May 2NYSE: 2012 HTA investment topublic $2.5B, (planned) List teamHTA offering internalized high grade onquality, the closed ratings NYSE inon-campus 2009 February in to July with Create 2011 2011 MOB noLiquidity, internalization focusedDrive portf
Slide 4: HTA Value Proposition
HTA will portfolio Managed ratings Value by over offer tenant, Proposition 240mm investors state, SFacity “Strong, of best real Significant in estate class Patient, MOB Built relationships Prudent” HTA focused enterprise REIT with leading with froma ground-up sustainable health systems (since and de
Slide 5: 1Q 2012 Performance
1Q Total Normalized 1st 321•Balance 4May Tenant 2% 1Q12 Renewal $0.14 $214mm Leverage Closed Over Excludes Stabilized Undepreciated Quarter 2012 2012 same NOI $700mm occupancy per Sheet retention new Performance increased rental in store of share, Acquisitions the FFO assets, acquisitions, $875mm 30
Slide 6: Advantages to Listing
Advantages Banner (Sun St (Novi, Greenville (Greenville, 5May John 2012 City, MI) Sun Providence AZ) Life City to SC)Listing Center MOB
Slide 7: Listing and Tendering
Listing and Tendering inourstrategic tenderoffer(subjecttoall portfolio,analysts’ processofmaximizing viewofhealthcare forShares appropriate Healthcare SECfilings)topurchase value sectorperformance,and andproviding Trust of America liquidity up NAVpremiumsin hasapplied to$150mmshares Wewill to lower
Slide 8: Why is HTA Listing?
Why is provides Listing opportunity HTAtoListing? purchase staged, HTAshares efficient, willon bemeasured the 1 ofopen onlymarket liquidity 2 publicly Access tolisted current to more companies stockholders efficient, significantly lower approximately costdedicated capital 16 months to MOB’s before L
Slide 9: Few Focused MOB Players
Few % 90% 30% Total mm 13.0 100% 11% 11.2 12.2 HTA Stabilized Medical Skilled Senior 8May MOB SF MOB 12.0 89% 21% 2012 HR MOB 75% 89% Housing Nursing Office in HCP 11.0 16% Development 1Focused Portfolio 50% GLA AsVTR 10.0 13% Building of25% 13/31/12. 9.0 Players HCN 0% 10%8.0SNH Source: in the OHIS
Slide 10: Proven Track Record Returns
Proven Track Returns dividendassumes received Record afor $10.10 $10.00 the May per$11.00 share 2012 price distribution. $12.00at $13.00 6/01/12, The $14.00 inclusive actual$15.00 price of annualized could $16.00 be$17.00 lower distributions than $18.00 theInception assumed of $0.725YE price per‘07
Slide 11: HTA vs Healthcare REIT Peers
HTA portfolio, EBITDA, asterisk the mathematical “Forward PeersHTA*Pure MOB190%89%0%13%16%21%28% Avg 000s)4$3,155$3,135$3,787$23,543$25,054$19,833$15,070Dividend EBITDA54.7x8.1x4.8x4.5x5.0x5.6x5.6xPrice4$10.10$22.10$21.36$58.49$41.26$55.83$39.81Consensus NAV45.6%41.2%38.3%41.7%29.0%31.2% low Lease P
Slide 12: Low-Risk Strategy
Low St (Lima, Chesterfield (Chesterfield, NIH (Baltimore, 11 Rita’s –Risk Triad OH) Cancer Strategy MD) Tech Rehab MO) Center Center
Slide 13: Extensive Operating Platform
Extensive Full Leasing Construction Acq/ Acquisitions Acquisition Finance Property SEC Proactive Tax Treasury Integrated Quarterly Rolling Web 53Asset 21 South/West 3.9mm 90% 50% East 6.1mm 95% 42% Midwest 2.4mm 82% 64% May 12regional asset years Operating Coast based occupancy under 2012 Reporting
Slide 14: National Portfolio
National Portfolio Gross Total Occupancy 1Q12 Investment Credit % Wtd Healthcare 1May OnAvg. 2012 buildings portfolio Tenant Campus real rated Portfolio, as remaining age estate System grade 91% of tenants Renewal of 3/31/12 GLA /located 264 Aligned1 properties assets tenants Regionally Relationship
Slide 15: Focused On Campus or Aligned with Leading Healthcare Systems
Medical Off- On-Campus/ Building Hospital Senior MOB Prime May 14 Campus 2012 90% Locations Care Office 5% Type Location 5% Aligned 4%Building On Campus 96%Focused or Aligned with Leading Healthcare Systems
Slide 16: Investment Grade Tenants
Investment Wtd Tenant Buildings (Yrs) Greenville Highmark Steward Institute Aurora Indiana Community West Kindred Select Deaconess Banner Hospital Cap Southwest Catholic Wellmont Sisters US Ascension 156% May 15 WPAHS Government Dist Avg of 2012 Penn (ABR) Medical of (As Health Total University Heal
Slide 17: Diversified Geographic Markets
Diversified Geographic TX IN SC PA FL NY GA OH TN Other AZ Key •GLA% 57.5% May 16 Albany, Atlanta,574,000GA Phoenix,1,152,000AZ Pittsburgh,978,000 Greenville,965,000 Indianapolis,820,000 Houston,692,000TX Dallas, Boston, Raleigh,242,000NC OklahomaCity,186,000 10% 8% 9% 4% 11% 5% 7% 4% Markets 2012 2
Slide 18: Limited Near-Term Lease Expirations
Limited Near-Term Lease Expirations 6.3% 9.3% 8.5% 7.4% 9.3% 7.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2012 2013 2014 2015 2016 2017 Less than 35% of Leases Maturing in Next 4 Years 1 As of 3/31/12 1
Slide 19: Healthcare Sector is Growing
Healthcare East (Charleston, Wellington (Wellington, Thunderbird (Glendale, 18 CooperAZ) Sector Medical SC) MOB FL) is Arts Growing Pavilion
Slide 20: Favorable Demand Drivers
Favorable Demand Population 100 Millions % 22% 1980 65+ As Annual $5.0 Trillions 1964 Healthcare 80% Adding Increasing Aging 30.7mm Growing Source: May 19 of a80 Population $4.5 % 20% 2012 Population 1990 1969 U.S. 60 of Expenditures 31mm Rosen more for Health 5.8% $4.0 18% Total Climate 40 integrat
Slide 21: Medical Office Buildings Strategic Value
Medical •Strategic Annual Total Millions 1,200 1992 3.5 Visits Outpatient 128 126 1989 2,000 Inpatient Source: Healthcare HTA A May 20Create Maximizes Long Cost-effective leading 3.3 2,200 124 2012 1994 1991 Visits, 1,000 1,800 toterm 3.1 Visits Rosen a122 Office Hospital Person Admissions/1000 Valu
Slide 22: Medical Office Supply and Outlook
Medical Supply 20 New •New MOB 15.0% 2002 7.0% Vacancy Year-Over-Year Outlook •Vacancy Source: Healthcare HTA A May 21leading 182012 Construction 2004 5.0% MOB 16 Vacancy Completions 12.5% of Rosen Office is Rate 14 has owner New Strong 2006 Trust 3.0% 12 supply improved, 10.0% Consulting Rates 10 M
Slide 23: MOB Industry Stability
MOB Industry 2014f 2016f Vacancy Stability Rate Source: Comparison Rosen Consulting Medical Office Group Total 13.6% Office 7.7% 16.3% 11.0% Office Average: 15.7% MOB Average: 9.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2002 2004 2006 2008 2010 2012f
Slide 24: Key Acquisitions: Greenville, Banner, Albany, Pittsburgh
Key Greenville Banner Albany $163mm 856k 91% $107mm 641k Anchored $197mm 960k Multiple Pittsburgh Steward $133.5mm 978k Majority $100mm 372k 100% Healthcare HTA A May 23leading Strategic NNN 2012 SF NNN Sun Medical Portfolio /Tenants anchored /owner 16 3923 13 by September December November March Me
Slide 25: Key Acquisitions: Indiana, Aurora, Raleigh
Key Indiana Aurora $90mm 690k Anchored $74mm 315k Raleigh Deaconess $44mm 242k Multi-tenant, $45mm 261k 100% Healthcare HTA A May 24leading Strategic 2012 SF NNN Wisconsin University /Portfolio /March June February December owner 624 510 by Clinic Trust buildings tobuildings Indiana on-campus Invest
Slide 26: Income, Growth and Value Creation
Income, San (Las Healthcare HTA A 25leading Martin Vegas, Growth owner Trust Medical NV) and of (Greenville, America. Medical Arts Value Pavilion Creation Office Inc. SC) Patewood (Houston, BuildingsMOB TX) C Fannin MOB
Slide 27: Financial Highlights
Financial MOB On-campus Proven Historical Acquisition Strong •Stable, Investment Leverage Limited Significant Lowering Healthcare HTA A May 26Credit Lease leading 2012 fundamentals Business financial Predictable Track structure—good Tenants near-term –Highlights owner the NOI Trust sector growth Gra
Slide 28: Proven Track Record of Growth
Proven Total $200.0 2008 $205.9 $185.7 $137.4 $84.5 $52.2 $140.0 $0.0 $20.0 $40.0 $60.0 $80.0 NOI $127.6 $114.7 $84.3 $42.7 $21.5 Normalized 1Note: 2other may Healthcare HTA A May 272008 Normalized 1Q12 leading exceed growth 2012 2009 NOI one-time NOI $150.0 $120.0 2009 Growth is owner presented ($m
Slide 29: Strong, Flexible Balance Sheet
Strong, 4.5x unsecured acquisitions on page 5.0x Flexible 105.6x borrowings regarding closed 1.0x Balance on 3.0x “Forward 1/1/12. in 5.0x 2Q12; Sheet7.0x EBITDA Over Looking Equity 9.0x $30at for HTA Statements.” million $10.10 HTAHRisof per VTR calculated cash share The HCP asestimates 2of HCN Sou
Slide 30: Sources of Continued Earnings Growth
Sources Same •Leasing Prudent •Utilize Healthcare HTA A May 29leading 2012 Store Acquisitions available ofactivity owner Continued Trust Growthof is liquidity America. increasing Medical Earnings toOffice acquire Inc. inGrowth 2012—positive Buildings properties •$214mm for occupancy of acquisitions
Slide 31: Limited Debt Maturities
Debt Limited $$700.0 $72.6 $18.5 $151.92 $50.2 2012 $55.4 $11.9 $100.0 $104.7 % 321Secured May 30 300.0 As The 2013 of of 2012 Total Maturities 2013 $300mm $600.0 maturities 3/31/12, Near debt 5.8% 2014 Unsecured Term $500.0 unsecured adjusted 2015 17.6% include Debt $400.0 2016 2.1% Term Maturities
Slide 32: Sustainable Distributions
Strong,tenants grade Sustainable Sustainable Distributions Distributions Stable$0.575 Income1 perMedical share annualized office building Paid quarterly focus 96%Competitive on-campus/with affiliated healthcare 91% peers occupancy 2012 Blended Limited near yieldterm of 6.5% leaseSustainable roll 93%
Slide 33: Management and Governance
HTA Enterprise Gwinnet (Atlanta, 32 Professional GA) (O’Fallon, Building MO) (Poughkeepsie, Winghaven Medical NY) Office Building St. Francis Medical Arts Pavilion
Slide 34: Experienced Management Team
Experienced Full Scott Chairman, HTA •CEO Holding Mark •CEO, •Mgr.of Kellie ‘87–’95 •VP Texas Amanda •Manager •Member •Appointed May 33 of operating 2012 in Peters Engstrom, and of Pruitt, InSite Financial 2006 Real Company/LSR, Houghton, Grubb of of Arizona CEO, to the Joint Management EVP-Chief Es
Slide 35: Strong Corporate Governance
Strong •6 •5 Audit •Selects financial Compensation •Advises Nominating Composed Identifies Develops Makes Investment •Reviews •Has Risk •Composed •Primary •Provides Annual 5Highlights All Proactive Opted 1No May 34ofIndependent Includes Member stockholder directors 62012 Management the Committee ind
Slide 36: Internalization and Fees Saved
HTA Fees Acquisition Asset 2010 May Stockholder Total < Replaces selling Over Units 321LTIP Healthcare A Net For Estimated Estimates $10.75 Leading Saved 2012 Long locked $200 $1.0 16,993,000 $87,977,000 1initial awarded ofexpenses3 Annual1 self <47% existing billion Owner Million Term Trust Since F
Slide 37: Phased-in Liquidity for Class B Shares
Phased-in Outstanding Class Equal Board May 36 2012 A B B1 B2 B3 ownership/voting discretion shares shares stockholder Liquidity shares (25% convert (25%) to split allow ofLiquidity to convert total) rights evenly Class all Class when between to A between Class shares Blisted shares all AClass over
Slide 38: Achievements and Key Metrics
Achievements Portfolio $3.2 Tenants Investment 26.5% 21Balance number May 37Enterprise 1Q12 Billion 2012 Debt EBITDA may 6.6 Sheet Metrics Grade Years to Estimated value exceed Metrics Flexibility to Enterprise Date is Average Credit assumes presented actual –Enterprise As Ratings with Value1 Remain
Slide 39: Next Steps
Next StepsMedical Shakerag (Peachtree Deaconess (Oklahoma Renaissance (Bountiful, 38 City, Medical UT) City, Medical GA) OK) Center Office Centre Building North
Slide 40: Considerations Vis-à-Vis the Tender Offer
What Tender Amount Process Considerations Taxable Avoids Complete Return Wait Paid Maintain Continue Flexibility Option Defers Do Move Open Increase Acquire Provide May 39 nothing within 2012 for Are ashares taxable to Shares market new your sale additional of results HTA HTA to company watch Curren
Slide 41: Tender Offer Questions and Answers
WeWhat Q: A: -Loss May 40 To Why -ItWill Negative 2012 isof provide significantly are Tender yield potential is the are you some tax investors purpose for tendering implications market ofShares accretive theof an considerations upside this for opportunity my to tender the stock? Company offer? to an
Slide 42: Contact Us
Contact Healthcare 16435 Scottsdale, Telephone: Fax: Email: May 41 (480) 2012 North info@htareit.com Us991-0755 AZ Trust (480) Scottsdale 85254 of 998-3478 America, Road,Inc. Suite 320
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