Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Shareholder Meeting (July 2019)
13 slides from Healthcare Realty Trust's shareholder meeting presentation, Jul 9, 2019
Slide 1: The Largest Dedicated Owner & Operator of Medical Office Buildings in the U.S. – 2019 Annual Meeting
HEALTHCARE TRUST OF AMERICA, INC. The Largest Dedicated Owner & Operator of Medical Office Buildings in the U.S. 2019 Annual Meeting 670 Albany, Boston MA Owned and Operated by HTA
Slide 2: 2019 Annual Meeting Agenda
Healthcare Trust of America – 2019 Annual Meeting Agenda 1. Introduction 2. Rules of Conduct 3. Order of Business & Introduction of Inspector of Elections 4. Proper Notice & Quorum 5. Proposals and Voting 6. Official Adjournment 7. Company Presentation 8. CEO Q&A
Slide 3: Company Presentation
Company Presentation The Pavilion MOB |Dallas, TX Owned and Operated by HTA
Slide 4: Forward Looking Statements
F O R W A R D L O O K I N G S T A T E M E N T S 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 and beliefs about our
Slide 5: The Medical Office Building Thesis
THE MEDICAL OFFICE BUILDING THESIS WHY HEALTHCARE? 5% 11% • Healthcare is the fastest growing sector in dollars and in employment within the US. 19% • Aging demographics boost healthcare spending: 10,000 people turning 65 every day (4x as many physician visits as younger population). • Healthcare is
Slide 6: HTA is the Largest Dedicated Owner & Operator of Medical Office Buildings in the U.S.
HTA IS THE LARGEST DEDICATED OWNER & OPERATOR OF MEDICAL OFFICE BUILDINGS IN THE U.S. $6.8B 23M+ SF 184% BBB / Baa2 GROSS INVESTMENTS LARGEST ON-CAMPUS OWNER TOTAL SHAREHOLDER RETURNS INVESTMENT GRADE BALANCESHEET Since December 2006* ONLY VERTICALLY INTEGRATED OPERATING PLATFORM IN MEDICAL OFFICE P
Slide 7: Attractive Shareholder Returns: 4.5% Dividend + Earnings Growth Potential
8.7% ATTRACTIVE SHAREHOLDER RETURNS: 4.5% DIVIDEND + EARNINGS GROWTH POTENTIAL SHAREHOLDER RETURN COMPONENTS MEDIUM TERM POTENTIAL: ~8 TO 12% Operating Assumption Returns DIVIDEND YIELD Reliable 4.5% Operating Assumption FFO Impact Same Store Revenue Growth 2-3% base revenue 3.0% Same Store Expense
Slide 8: Our Strategic Focus
OUR STRATEGIC FOCUS CORE, CRITICAL MEDICAL REAL ESTATE DISCIPLINED, ACCRETIVE GROWTH STRATEGY • On-campus and core community off-campus focus within high demand • Disciplined record of acquiring and developing MOBs with strong medical hubs for the future of healthcare delivery accretion and NOI grow
Slide 9: Execution Creates the Superior Platform
EXECUTION CREATES THE SUPERIOR PLATFORM 2013 2018 Portfolio Size ($B) $3.0B $6.8 B Portfolio Size 14.1MM SF 23.2MM SF (GLA in millions) Top Markets Phoenix Dallas IN THE LAST 5 YEARS, WE Pittsburgh Houston Greenville Boston HAVE GROWN OUR Albany Tampa Indianapolis Atlanta PORTFOLIO & EARNINGS % Top
Slide 10: Strong Performance Among Peers
STRONG PERFORMANCE AMONG PEERS Strong Same Store Growth Efficient Capital Allocation Drives Returns Avg. SS Growth Since 2013 Cap-Ex as % of NOI Since 2013 3.5% 3.2% 3.0% 35% 31% 3.0% 2.6% 30% 2.3% 2.5% 25% 22% 2.0% 1.5% 20% 1.5% 1.3% 15% 13% 1.0% 10% 0.5% 5% 0.0% 0% HTA VTR WELL HCP DOC HR HTA HR O
Slide 11: 2018 – Integrating the Platform & Increasing Dry Powder
2018 – INTEGRATING THE PLATFORM & INCREASING DRY POWDER Same Store Growth + 2.5% • Base revenue growth – 2.2% driving performance. • Leasing strong – Increasing leasing spreads to 2.6% FY and 4.4% in 4Q. Retention of 81% FY. • Expense savings – Bundling & using scale to drive base margin expansion o
Slide 12: 2019 – Disciplined Execution, Patiently Looking for Opportunities
2019 – DISCIPLINED EXECUTION, PATIENTLY LOOKING FOR OPPORTUNITIES Same Store Growth Above Peer Average • Expected range 2.0 to 3.0% • Focused leasing performance: (i) releasing spreads > 2%; (ii) annual escalators > 2.5%; (iii) retention of 80%+ • Platform driving margin growth: 25bps of base margin
Slide 13: Thank You
THANK YOU CHECK US OUT @ WWW.HTAREIT.COM Mission Tower, Orange County / Los Angeles, CA Owned and Operated by HTA
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