Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Shareholder Meeting (July 2013)
19 slides from Healthcare Realty Trust's shareholder meeting presentation, Jul 9, 2013
Slide 1: Healthcare Trust of America Annual Meeting July 2013
JULY 2013 Healthcare Trust of America, Inc. (HTA) Annual Meeting
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 – Year in Review
Leading owner of Medical Office Buildings HTA – Year in Review • Listed on the New York Stock Exchange in June 2012 o First to list on the NYSE without raising equity o No shareholder dilution at unattractive price o 75% of original shares are now eligible to trade • Expanded shareholder base and of
Slide 4: Investor Returns
Leading owner of Medical Office Buildings Investor Returns • Total return of 76% from Jan 1, 2007 to July 3, 2013 ($11.001), inclusive of fees • Annualized Return of 9.1% over that time period • Significantly outperformed the S&P 500 and MSCI US REIT Index (RMS) • Dividend currently at $0.575/ share
Slide 5: Shareholder Base
Leading owner of Medical Office Buildings Shareholder Base 4 Locked Shares Locked Shares At Listing – June 6, 2012 June 30, 2013 Retail: 100% Retail: 55% Institutional: 45%1 Free Float Free Float Top Holders1 Institutional Investor Shares The Vanguard Group 10,483,152 Cohen & Steers Capital Mgmt 9,4
Slide 6: Company Summary, Portfolio Metrics and Balance Sheet Strength
1 As of 7/3/2013 2 Total Capitalization as of 3/31/2013. Refer to HTA’s Q1 2013 Supplemental for additional information 3 1Q13 EBITDA is presented on an assumed annualized basis as if 1Q13acquisitions closed on 1/1/13. The assumed annualized number may exceed actual results Company Summary Portfolio
Slide 7: HTA – MOB Specialist Positioned for the Future
Leading owner of Medical Office Buildings Company HTA –MOB Specialist Positioned for the Future • Dedicated MOB operator • Core critical locations – barriers to entry • Fortress balance sheet • Investment grade • Leverage: 30%1 • Stability: 91% Occupied • Dividend Yield: 5.2%2 Growth Sector Tailwind
Slide 8: Medical Office Tailwinds
Medical Office Tailwinds 7 • Affordable Care Act • Healthcare Employment is Strong • Healthcare Expenditures Increasing • Increasing Outpatient Care • Aging Population • Constrained Market Rents • Fragmented • Limited New Supply
Slide 9: Healthcare Expenditures and Employment
$0 $1 $2 $3 $4 $5 Trillions Healthcare Expenditures and Employment 8 Strong Healthcare Employment ProjectedAnnual Healthcare Expenditures Sources: Centers for Medicare & Medicaid Services, Bureau of Labor Statistics, Rosen Consulting Group • Healthcare was the only major sector with employment growt
Slide 10: Affordable Care Act Changing Healthcare Delivery
Affordable Care Act 9 Changing Healthcare DeliveryIncreasing 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 11: Aging Demographics
Aging Demographics 10 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 12: MOB Opportunity
MOB Opportunity Sources: Green Street Advisors, Marcus & Millichap, Rosen Consulting Group 11 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 infrast
Slide 13: MOB Supply and Demand
MOB Supply and Demand Sources: Marcus & Millichap, Rosen Consulting Group 12 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 • Reco
Slide 14: National Markets – Internally Managed
Leading owner of Medical Office Buildings National Markets – Internally Managed 13 GLA Percent GLA Percent Phoenix, AZ 1,152 9.0% Houston, TX 692 5.4% Pittsburgh, PA 978 7.6% Dallas, TX 591 4.6% Greenville, SC 965 7.5% Atlanta, GA 574 4.5% Albany, NY 879 6.8% Boston, MA 359 2.8% Indianapolis, IN 850
Slide 15: In-House Property Management
Leading owner of Medical Office Buildings In‐House Property ManagementFully Integrated Asset Management Platform National Property Management Platform • 4 Regional Headquarters in Atlanta, Indianapolis, Scottsdale, and Charleston • Local property management covering 87% of HTA’s portfolio • Leasing
Slide 16: Portfolio Characteristics
Portfolio Characteristics 15 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 17: 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 18: Shareholder Focus and Corporate Governance
Leading owner of Medical Office Buildings No Takeover Limits – HTA’s Board is committed to pursuing shareholder’s best interest in a takeover situation. To that end, HTA does not have any stockholder rights plans (poison pill) and has opted out of Maryland anti‐takeover provisions1 Shareholder Focus
Slide 19: 2013 Annual Meeting – Review of Key Actions
2013 Annual Meeting – Review of Key Actions Listed Shares on NYSE – No Dilution, No Fees Completed Internal Asset Management Platform – Removed 3rd Parties Competitive Cost of Capital – Debt & Equity Executed Phased-in Liquidity - 75% Floating Patient, Prudent Execution 18 Relevant Growth - Portfoli
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