Healthcare Realty Trust Incorporated · NYSE:HR
Healthcare Realty Trust — Healthcare Trust of America — Investor Presentation (March 2014)
29 slides from Healthcare Realty Trust's investor presentation, Mar 14, 2014
Slide 1: Special Stockholder Meeting March 2014
Exhibit 99.1 Patewood Greenville, Healthcare Special MARCH Stockholder 2014 MOB Trust SC B of America, Meeting Inc. (HTA)
Slide 2: Forward Looking Statements
FORWARD This estimates, looking and other believe statements. commercial property we of financing; Forward-looking circumstances or For available adjusted 1our REITs that operate; company’s definitions uncertainties document things, may that statements earnings investments for and assumptions restri
Slide 3: HTA Overview
income The Aging Affordable Strong Health HTA MOBs Supply 2Significantly healthcare Overview is controls demographics systems healthcare are have of aand leading, new traditional Care long average underinvested ongoing MOBs sector are Act term dedicated employment capital adding lease real isappreci
Slide 4: Strong Same Store Portfolio Performance
Strong Same Portfolio Acquired The Moody’s 3Balance Company store Operating sheet occupancy upgraded $398 growth isis performed million positioned committed Performance of tohas Baa2 more ofincreased well attractive, for in than toDecember in agrowth 3.0% strong 2013 tostable 91.6% for and with and
Slide 5: Consistent History of Shareholder Friendly Governance
Consistent History Shareholder Eliminated Listing Board Strong Independent Annual No 41anti-takeover Includes Takeover /Corporate on election Executive of Shareholder NYSE: Maryland Shareholder Conflicts Fees: Actions Board- Limits provisions1 ofWaived Governance Investment First all5-as Law and HTA
Slide 6: HTA Outperformed Since Listing
Shareholder -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 6/6/2012 HTA 51-Since Annualized Based RMS has its-20.0% on founding Outperformed generated 9/30/2012 SNL aReturns Total $9.00 HCin Returns initial 26% 12/30/2012 REIT 2006, Peers Total share of HTAsince 8.6% 10.4% Returns price 3/30/2013 h
Slide 7: Experienced Management Team
Experienced Scott Chairman, Co-Founded CEO Co-Founder, EVP, Kellie VP Certified Mark CEO, Mgr. Founder/Principal-Pacific Hospital Amanda Manager RSM Appointed Robert Vice 6Senior ofPresident, of Pacific CFO, Peters EquiCo Engstrom, InSite Financial Pruitt, Analyst, Analyst Manager, Milligan, Real Gr
Slide 8: National Portfolio
National MIDWEST NORTHEAST SOUTHEAST GLA: SOUTH/SOUTHWEST Regional Portfolio Key GLA Phoenix, Pittsburgh, Greenville, Albany, 71Indianapolis, As Markets of Percent 2.9M 2.6M 4.4M 4.2M 12/31/13 NY Portfolio: AZ Asset Property PA SC SF 879 1,152 IN GLA 1,094 965 Management 850 6.3% Percent 14.1 8.2% 6
Slide 9: Operating Platform and Same Store Performance
Operating Same Portfolio Good Rents 7Fully Local In-House % 90% 2009 Strong Organization Institutionalized 8Specialized Regional of 80% total 2010 Integrated Store leasing property rolling Portfolio occupancy Property 70% GLA Performance 2011 Offices Growth Leasing flat Focused pipeline managers 60%
Slide 10: Disciplined Investment Criteria
KeyOn-Campus (i) (ii) (iv) (v) (vi) (vii) 2013 Total MOBs Occupancy On-Campus/Affiliated On-Campus Multi-Tenanted Disciplined 9Note: Generally Affiliated Stabilized Long Investment Accretive Acquisitions Investments GLA As100% of term (Square at growth 12/31/13 92% Texas with $25 closing occupancy,
Slide 11: 2013 Acquisition Highlights
2013 Acquisition Highlights 10
Slide 12: Strong, Unsecured Balance Sheet
Strong, 12/31/2013 Unsecured 11.4% Balance 66.0% Equity 22.6% $18 $595 Weighted Total 5.3x 1.0x 3.0x 5.0x 7.0x 9.0x HTA Debt $500 $8 2014 % 21Secured 3assumed 11Based Source Pro of $74 million 4.8x Total HCP Maturities1,3 million $400 2015 Liquidity Debt forma $55 Flexible on Sheet Debt debt annuali
Slide 13: HTA Highlights
HTA Leverage, Medical Strong 92% Portfolio Low Dividend 7900 HOUSTON, RALEIGH RALEIGH, 12 Occupancy –FANNIN Industry Company Office Expansion Yield MEDICAL NC TXHigh Building of &in Highlights 5.0% Macroeconomic Defensive, through Liquidity CENTER Specialist Disciplined Growing Trends Asset Acquisit
Slide 14: Additional Information
Additional Information 13
Slide 15: Company Snapshot
Company Medical Gross Investment Credit-rated % Average Liquidity Total –Weighted 1Note: 2EBITDA 3and Presence TX Other FL AZ GA IN NY PA SC (Based Credit 56% Not 14 40% Tenant 91.6% Lease Gross of 9% 12% 8% 13% 10% 5% 6% Listing Rated Portfolio Portfolio Debt/ Net As 28% real Tenants ratings Rated
Slide 16: Sector Overview
Sector Overview 15
Slide 17: Healthcare Expenditures and Employment Growth
Annual 1964 $0 $1 $2 80% $3 $4 $5 Trillions Strong Projected All Physicians Total Registered Physician Occupational 0% Healthcare Increasing Sources: 16 Occupations 20% 1969 Healthcare Healthcare Healthcare 40% Centers U.S. Assistants expenditures demand 1974 Nurses and Techs Expenditures expenditur
Slide 18: Increasing U.S. Insurance Coverage and Outpatient Shift
Increasing U.S. 260 Before 200 210 220 230 229 240 250 Key +12% +27mm Additional Accountable Physicians Changing 1991 1,000 106 108 1,200 110 1,400 112 114 1,600 116 118 1,800 120 2,000 122 124 2,200 126 Inpatient Outpatient Trend Affordable Preventative Sources: 17 256 provisions Residents 1993 toA
Slide 19: Aging Demographics
Aging Millions 100 80 20 14% 40 16% 60 018% 1980 65+ Elderly Annual > $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Demographic Baby The This Healthcare Key Sources: 1810% 25 20% 12% 22% 65+ Population driver age yrs 1990 Boomers Demographics Population Utilize Healthcare 25-34 age Population group U
Slide 20: MOB Owners Fragmented; Public REITs Own Small Share
MOB Owners Large, Public Other Health Location Medical On-Campus Hospitals Maximizes Cost-effective Limited Sources: 19 Opportunity REIT Fragmented systems development developable Office Green iscreate utilization Critical isOwners 94% location the is selling Street strong aBest Industry $250Bn land
Slide 21: MOB Rental Rates and Limited Supply
MOB 502SF, 10 15 25 30 Near Limited Constrained Medical $/SF $27 $26 $25 $24 $22 $23 $21 $20 $19 2008 Rental Rates Supply Barriers Recovery Sources: 20 008Millions 10% 8% 6% 4% 2% 0% -2% -4% per term 2009 are Supply Rate rates and New new to office Office Year Marcus now in development entry 2010 de
Slide 22: Investments Overview
Investments Overview 21
Slide 23: 2013 Acquisition Highlight: Florida Developer Portfolio
2013Statistics Key Location: Total GLA: Occupancy Acquired: Seller: Health 22 Acquisition Investment: 365k Regional System Florida December at square closing: Affiliation: Developer Highlight (Tampa $127million feet 2013 98%and HCA, - Florida Jupiter) CHS,Developer and andIndiana Jupiter Portfolio B
Slide 24: 2013 Acquisition Highlight: South Florida Tenet Portfolio
2013Statistics Key Location: GLA: Occupancy Acquired: Price Health 23 Acquisition /428k SF: System Florida September $147 at square closing: Affiliation: Highlight (Miami feet2013 88%–Tenet -West South Healthcare Palm Florida Beach) Tenet Buildings: Acquisition 6 on-campus properties / 4 campuses To
Slide 25: 2013 Acquisition Highlight: Forest Park Medical Center, Dallas
2013Statistics Key Location: Buildings: GLA: Occupancy Acquired: Seller: Health 24 Acquisition 279k Regional System Texas 2012/ 3at square on-campus closing: Affiliation: (Dallas Developer 2013 Highlight feet100% MSA) properties Forest - Forest Park / Park 2 campuses Medical Acquisitions Center Tota
Slide 26: Lincoln Medical Center, Parker, CO
Lincoln Location: Buildings: Total GLA: Seller: Key Recent HTA 25 Tenants: Statistics Owned Investment: 115k Regional Acquisition Medical Parker, 1square off-campus, MOB HCADeveloper Center CO $42 feet, - HealthOne (Denver million, 4 affiliated acresMSA) July of adjacent 2013 land Occupancy at closi
Slide 27: Texas A&M Health Science Center, Bryan
TexasTenants: Location: Total GLA: Occupancy Acquired: Seller: Key HEALTH ATM TEXAS 26 Statistics Investment: A&M 124k Regional A&M Bryan, SCIENCE March at square Health Texas closing: UNIVERSITY Developer Texas 2013 $39.8million feet A&M Sciences CENTER 100% (College (Moody’s Center Station) A) and
Slide 28: Austin, Texas Acquisitions
Austin, Key Location: Buildings: Total GLA: Occupancy Health 27 Statistics Investment: 84k System Texas Austin, square 2aton-campus Acquisitions closing: Affiliation: TX feet $29.3100% million HCA Acquired: October/ November 2013 Sellers: Regional Developers
Slide 29: Monroeville, PA Acquisition
Monroeville Location: Total GLA: Occupancy Acquired: Key Recent HTA 28 Tenants: Statistics Owned Investment: 115k Acquisition Monroeville, July at square Acquisition MOB UPMC closing: 2013 $15 feet (S&P million 98% PA (Pittsburgh A) MSA) Buildings: 2 adjacent to campus
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