99.1
MISSION MEDICAL OFFICE PORTFOIO
MISSION VIEJO, CA
Exhibit 99.2
Company Overview
Company Information 3
First Quarter 2018 Highlights 6
Financial Highlights 7
Company Snapshot 8
Financial Information
FFO, Normalized FFO, Normalized FAD and Adjusted EBITDAre 9
Capitalization, Interest Expense and Covenants 10
Debt Composition and Maturity Schedule 11
Portfolio Information
Investment Activity 12
Regional Portfolio Distribution and Key Markets and Top 75 MSA Concentration 13
Development Summary and Capital Expenditures 14
Same-Property Performance and NOI 15
Portfolio Diversification by Type, Historical Campus Proximity and Ownership Interests 16
Historical Leased Rate, New and Renewal Leasing Activity and Tenant Lease Expirations 17
Key Health System Relationships and Highlights 18
Financial Statements
Condensed Consolidated Balance Sheets 19
Condensed Consolidated Statements of Operations 20
Condensed Consolidated Statements of Cash Flows 21
Reporting Definitions 22
Forward-Looking Statements:
Certain statements contained in this report constitute forward-looking statements within the meaning of the safe harbor from civil liability provided
for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Such statements include, in particular, statements
about our plans, strategies, prospects and estimates regarding future medical office building market performance. Additionally, such statements
are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially and in
adverse ways from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future
periods. Forward-looking statements are generally identifiable by the use of such terms as “expect,” “project,” “may,” “should,” “could,” “would,”
“intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “opinion,” “predict,” “potential,” “pro forma” or the negative of such terms and
other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements. We cannot guarantee
the accuracy of any such forward-looking statements contained in this report, and we do not intend to publicly update or revise any forward-
looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Any such forward-looking
statements reflect our current views about future events, are subject to unknown risks, uncertainties, and other factors, and are based on a
number of assumptions involving judgments with respect to, among other things, future economic, competitive and market conditions, all of
which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such
forward-looking statements, including our ability to generate positive cash flow from operations, provide dividends to stockholders, and maintain
the value of our real estate properties, may be significantly hindered. Forward-looking statements express expectations of future events. All
forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and
they are subject to numerous known and unknown risks and uncertainties that could cause actual events or results to differ materially from
those projected. Due to these inherent uncertainties, our stockholders are urged not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date made. In addition, we undertake no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated events or changes to projections over time, except as required
by law. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed
on such statements. Additional information concerning us and our business, including additional factors that could materially affect our financial
results, is included herein and in our filings with the SEC.
Table of Contents
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 2
Company Information
Healthcare Trust of America, Inc. (NYSE: HTA) Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of
medical office buildings in the United States, comprising over 24.1 million square feet of GLA, with over $7.0 billion invested primarily in medical
office buildings. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments
are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions which
translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a
strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing,
property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each
market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant
retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated
relationships at the local level.
Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have
significantly outperformed the S&P 500 and US REIT indices. More information about HTA can be found on the Company’s Website, Facebook,
LinkedIn and Twitter.
Executive Management
Scott D. Peters I Chairman, Chief Executive Officer and President
Robert A. Milligan I Chief Financial Officer, Secretary and Treasurer
Amanda L. Houghton I Executive Vice President - Asset Management
K. Ann Atkinson I Senior Vice President - Acquisitions
Caroline E. Chiodo I Senior Vice President - Finance
Contact Information
Corporate Headquarters
Healthcare Trust of America, Inc. I NYSE: HTA
16435 North Scottsdale Road, Suite 320
Scottsdale, Arizona 85254
480.998.3478
www.htareit.com
Follow Us:
Investor Relations
Robert A. Milligan I Chief Financial Officer, Secretary and Treasurer
16435 North Scottsdale Road, Suite 320
Scottsdale, Arizona 85254
480.998.3478
info@htareit.com
Transfer Agent
Computershare
P.O. Box 505000
Louisville, KY 40233
888.801.0107
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 3
HTA: LARGEST DEDICATED OWNER OF MEDICAL OFFICE
BEST IN CLASS PORTFOLIO
FOCUSED IN 20-25 KEY CONCENTRATED GEOGRAPHIC MARKETS
24+
MILLION SQUARE
FEET
94%
INTERNALLY
MANAGED
~17M SF
ON-CAMPUS
(Largest on-campus owner in U.S.)
5.9x
Net Debt/ Adjusted
EBITDAre
FULL SERVICE
OPERATING PLATFORM FOCUS AND SCALE DIVERSIFICATION
INVESTMENT GRADE
BALANCE SHEET
Best in Class
Full Service
Operating Platform
Property Management
Leasing
Facilities & Engineering
Construction &
Development
94% of Portfolio in
Key Markets &
Top 75 MSAs
Platform with Scale Creates:
Local Expertise
Strong Relationships
Operational Benefits
Access to Better Performing
Markets
449 Buildings throughout
33 States
Top Tenant < 4.3% of ABR
Top Market < 9.6% of ABR
Size & Diversification
provides stability of
cash flows
BBB/Baa2
Credit Rating
5.9x
Net Debt/Adjusted
EBITDAre
$1.1B
Liquidity
SF Market Invested $’s
952K Tampa, FL 351M
995K Miami, FL 229M
512K Orlando, FL 156M
2.5M TOTAL FLORIDA $736M
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 4
10 MARKETS ~ 1M+ SF 16 MARKETS > 500K SF
HTA Properties
HTA Market with ~ 1 Million+ SF
PM Offices
Dallas, TX
Houston, TX
Miami, FL
Atlanta, GA
Phoenix, AZ
Greenville, SC
Boston, MA
Hartford, CT
Pittsburgh, PA
Indianapolis, IN
SF Market Invested $’s
2.1M Dallas, TX 843M
1.5M Houston, TX 431M
408K Austin, TX 164M
4.0M TOTAL TEXAS $1,438M
SF Market Invested $’s
1.0M Boston, MA 411M
970K Harford/New Haven, CT 278M
881K Albany, NY 179M
333K White Plains, NY 126M
3.2M TOTAL NORTHEAST $994M
1.4M Indianapolis, IN 282M
1.1M Pittsburgh, PA 149M
323K Columbus, OH 77M
2.8M TOTAL MIDWEST $508M
SF Market Invested $’s
1.1M Atlanta, GA 325M
632K Raleigh, NC 194M
965K Greenville, SC 179M
334K Charlotte, NC 95M
289K Charleston, SC 75M
3.3M TOTAL SOUTHEAST $868M
FINANCIAL PERFORMANCE: DECADE OF VALUE CREATION
8.5% Annualized Average Total Returns Since First Distribution in 2006 to March 31, 2018
Consistent Same Store Growth - 3.0% Average Normalized FFO/Share
$0.43
$0.40
$0.37
$0.34
$0.31
$0.28
$0.25
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
$0.38
$0.39 $0.39
$0.40 $0.40 $0.40
$0.41 $0.41
$0.39
$0.42 $0.42
$0.41
5%
4%
3%
2%
1%
0%
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
3.0% 3.1% 3.1% 3.0% 3.1%
3.3%
2.9%
3.2% 3.1%
2.9% 2.8%
2.3%
DELIVERING SHAREHOLDER VALUE
Annual Investments
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 5
2.4%
REIT
MOB
Avg
$0 $800,000 $1,600,000 $2,400,000
$ (Thousands)
2012
2013
2014
2015
2016
2017
2018
$294,937
$397,826
$439,530
$271,510
$700,764
$2,722,467
$12,269
Top Health Systems
» Adventist Health » Highmark-Allegheny Health Network
» Atrium Health » Hospital Corporation of America
» Ascension Health » Mercy
» Baylor Scott & White Health » Providence St. Joseph Health
» Boston Medical Center » Steward Health Care System
» Community Health Systems » Tenet Healthcare System
» Duke Health » Tufts Medical Center
» Greenville Health System
First Quarter 2018 Highlights
Operating
• Net Income Attributable to Common Stockholders: Decreased (27.6)% to $9.8 million, compared to Q1 2017. Earnings per
diluted share decreased (44.4)% to $0.05 per diluted share, compared to Q1 2017. This decrease is primarily related to the
increase in depreciation and amortization of $23.3 million as a result of the increase in the size of our investment portfolio.
• Funds From Operations (“FFO”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), increased
40.5%, to $84.6 million, compared to Q1 2017. FFO per diluted share decreased (2.4)%, to $0.40 per diluted share, compared to
Q1 2017.
• Normalized FFO: Increased 41.3%, to $85.0 million, compared to Q1 2017. Normalized FFO per diluted share remained stable at
$0.41 per diluted share, compared to Q1 2017.
• Normalized Funds Available for Distribution (“FAD”): Increased 43.6%, to $75.9 million, compared to Q1 2017.
• Same-Property Cash Net Operating Income (“NOI”): Increased $1.8 million, or 2.3%, to $81.0 million, compared to Q1 2017.
Excluding the MOBs located on its Forest Park campuses, Same-Property Cash NOI growth would have been 3.2%. This increase
was driven by an increase of 1.5% in Same-Property rental revenue and an increase of 70 bps to 88.5% in Same-Property rental
margins, measured as Same-Property Cash NOI divided by Same-Property rental revenue, compared to Q1 2017. From an
occupancy perspective for the Same-Property pool, the leased rate increased 20 bps to 92.1% while the occupancy rate declined 10
bps to 91.0%, compared to Q1 2017.
Portfolio
• Leasing: HTA entered into new and renewal leases on approximately 663,000 square feet of GLA, or 2.7% of its portfolio. Tenant
retention for the Same-Property portfolio was 81% by GLA for the quarter, which included approximately 609,000 square feet of GLA
of total expiring leases. Releasing spreads for renewal leases on a cash basis were 2.7%. Renewal leases included tenant
improvements of $1.07 per square foot of GLA per year of the lease term and approximately seven days of free rent per year of the
lease term.
• Leased Rate: As of March 31, 2018, HTA had a leased rate for its portfolio of 91.8% by GLA and an occupancy rate of 90.7% by
GLA.
• Forest Park Update: During the three months ended March 31, 2018, HTA entered into approximately 41,000 square feet of GLA of
new leases on the former Forest Park Dallas campus. This leasing included approximately 37,000 square feet of GLA that is directly
leased to the hospital.
• Development: Subsequent to March 31, 2018, HTA entered into a development agreement for a new MOB in the key gateway
market of Miami, Florida. The state-of-the-art MOB will total approximately 51,000 square feet of GLA and be located adjacent to
the Jackson South Hospital. Total development costs are estimated to be $21.8 million and the building is expected to be 70% pre-
leased to the hospital with construction expected to begin in 2019.
• Investments: During the quarter, HTA remained disciplined and strategically expanded within its key gateway markets. HTA
invested $8.4 million to acquire an MOB of approximately 24,000 square feet of GLA in Raleigh, North Carolina, that was 100%
leased as of the acquisition date to Duke Health System. In addition, HTA invested $3.9 million to consolidate its ownership
interests in several MOBs.
• Dispositions: As of April 30, 2018, HTA has received letters of intent to sell multiple MOBs totaling an aggregate sales price of over
$50 million. These properties are subject to customary closing conditions and no closings are assured.
2017 Investment Performance
• Cash NOI: During the three months ended March 31, 2018, HTA generated $34.5 million of Cash NOI on its 2017 investments,
including its investment in its unconsolidated joint venture. This Cash NOI includes approximately $1.8 million of income from
property management and building engineering services provided to its tenants. As of March 31, 2018, HTA’s run rate yield on its
2017 investments was approximately 5.2%, which included the full year impact of new leases that were signed but not yet occupied.
• Development: During the three months ended March 31, 2018, five of the seven acquired development properties were completed.
The remaining two development properties, which are 100% pre-leased, are on track to be completed by the middle of 2018. As of
the end of the quarter, the five development properties were 84% leased and generated $1.1 million of Cash NOI. HTA believes it is
currently in the late stages of lease negotiations for an additional 26,000 square feet of GLA that would bring the leased rate on
these development properties to 89% if completed. In total, the seven development properties are projected to generate between
approximately $2.5 million and $2.8 million in quarterly Cash NOI upon completion and stabilization.
Balance Sheet
• Balance Sheet: As of March 31, 2018, HTA had total leverage of 33.0% measured as net debt (total debt less cash and cash
equivalents) to total capitalization, and 5.9x measured as net debt to Adjusted Earnings before Interest, Taxes, Depreciation and
Amortization for real estate (“Adjusted EBITDAre”). Total liquidity at the end of the quarter was $1.1 billion, including $994.5 million
of availability under HTA’s unsecured revolving credit facility, $56.2 million of cash and cash equivalents and a $75.0 million forward
equity agreement, excluding anticipated costs to borrow.
Company Overview
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 6
(1) Refer to pages 22 and 23 for the reporting definitions of NOI, Adjusted EBITDAre, FFO, Normalized FFO and Normalized FAD.
(2) Refer to page 15 for a reconciliation of GAAP Net Income to NOI.
(3) Refer to page 9 for the reconciliations of GAAP Net Income Attributable to Common Stockholders to FFO, Normalized FFO, Normalized FAD and Adjusted EBITDAre.
(4) Calculated as the increase in Same-Property Cash NOI for the quarter as compared to the same period in the previous year.
(5) Calculated as Adjusted EBITDAre divided by interest expense (excluding change in fair market value of derivatives) and scheduled principal payments.
(6) For the periods ending 1Q18 and 4Q17 amounts and calculation based on net debt. All prior periods presented were based on total debt. Refer to page 10 for components of net
debt.
(7) Calculated as the common stock price on the last trading day of the period multiplied by the total diluted common shares outstanding at the end of the period, plus net debt (1Q18
and 4Q17 only) at the end of the period. All prior periods presented were based on total debt. Refer to page 10 for details.
Financial Highlights
(unaudited and dollars in thousands, except per share data)
Three Months Ended
1Q18 4Q17 3Q17 2Q17 1Q17
INCOME ITEMS
Revenues $ 175,661 $ 173,770 $ 175,994 $ 139,879 $ 124,347
NOl (1)(2) 119,639 120,497 119,663 96,419 85,327
Adjusted EBITDAre, annualized (1)(3) 461.212 457,540 457.716 442,316 319,132
FFO (1)(3) 84,615 85,562 84.248 54,185 60,231
Normalized FFO (1)(3) 84,987 86,732 85,449 69,643 60,133
Normalized FAD (1)(3) 75,924 72,610 74,767 60,618 52,865
Net income (loss) attributable to
common stockholders per diluted share $ 0.05 $ 0.20 $ 0.07 $ (0.03) $ 0.09
FFO per diluted share 0.40 0.41 0.41 0.30 0.41
Normalized FFO per diluted share 0.41 0.42 0.42 0.39 0.41
Same-Property Cash NOI growth (4) 2.3% 2.8% 2.9% 3.1% 3.2%
Fixed charge coverage ratio (5) 4.28x 4.36x 4.35x 4.39x 4.30x
As of
1Q18 4Q17 3Q17 2Q17 1Q17
ASSETS
Gross real estate investments $ 7,000,502 $ 6,969,565 $ 6,977,851 $ 6,796,889 $ 4,360,906
Total assets 6,359,835 6,449,582 6,413,522 6,366,758 3,753,017
CAPITALIZATION
Net debt (6) $ 2,724,048 $ 2,680,675 $ 2,856,758 $ 2,784,162 $ 1,811,208
Total capitalization (7) 8,257,732 8,959,516 8,959,887 9,154,526 6,409,685
Net debt/total capitalization (6) 33.0% 29.9% 31.9% 30.4% 28.3%
Company Overview
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 7
Investments in Real Estate (1) $ 7.0
Total portfolio GLA (2) 24.1
Leased rate (3) 91.8%
Same-Property portfolio tenant retention rate (YTD) (4) 81%
% of GLA managed internally 94%
% of GLA on-campus/adjacent 70%
% of invested dollars in key markets & top 75 MSAs (5) 94%
Investment grade tenants (6) 48%
Credit rated tenants (6) 60%
Weighted average remaining lease term for all buildings (7) 5.8
Weighted average remaining lease term for single-tenant buildings (7) 8.0
Weighted average remaining lease term for multi-tenant buildings (7) 4.6
Credit ratings (by Moody’s and Standard & Poor’s) Baa2(Negative)/BBB(Stable)
Cash and cash equivalents (2) $ 56.2
Net debt/total capitalization 33.0%
Weighted average interest rate per annum on portfolio debt (8) 3.54%
Building Type Presence in Top MSAs (9)
Company Snapshot
(as of March 31, 2018)
Company Overview
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 8
(1) Amount presented in billions. Refer to page 22 for the reporting definition of Investments in Real Estate.
(2) GLA and cash presented in millions. Total portfolio GLA excludes GLA for projects under development and includes 100% of the GLA of its unconsolidated joint venture.
(3) Calculations are based on percentage of total GLA, excluding GLA for development properties.
(4) Refer to page 23 for the reporting definition of Retention.
(5) Refer to page 22 for the reporting definition of Metropolitan Statistical Area.
(6) Amounts based on annualized base rent.
(7) Amounts presented in years.
(8) Includes the impact of interest rate swaps.
(9) Refer to page 13 for a detailed table of HTA’ s Key Markets and Top 75 MSA Concentration.
% of Portfolio (based on GLA) % of Portfolio (based on invested dollars)
Medical Office Buildings
95%
Hospitals
4%
Senior Care
1%
Remaining Top
MSAs
41.3%
All Other Markets
6.1%
Dallas, TX
12.1%
Houston, TX
6.2%
Boston, MA
5.9%
Tampa, FL
5.0%
Atlanta, GA
4.7%
Indianapolis, IN
4.0%
Hartford/New
Haven, CT
4.0% Phoenix, AZ
3.8%
Denver, CO
3.5%
Orange County/Los
Angeles, CA
3.4%
FFO, Normalized FFO and Normalized FAD Three Months Ended
1Q18 1Q17
Net income attributable to common stockholders $ 9,802 $ 13,545
Depreciation and amortization expense related to investments in real estate 69,856 46,689
Gain on sale of real estate, net — (3)
Impairment 4,606 —
Proportionate share of joint venture depreciation and amortization 351 —
FFO attributable to common stockholders $ 84,615 $ 60,231
Transaction expenses 191 284
Gain on change in fair value of derivative financial instruments, net — (839)
Loss on extinguishment of debt, net — 32
Noncontrolling income from partnership units included in diluted shares 181 425
Normalized FFO attributable to common stockholders $ 84,987 $ 60,133
Other income (35) (8)
Non-cash compensation expense 3,479 2,530
Straight-line rent adjustments, net (3,166) (1,209)
Amortization of (below) and above market leases/leasehold interests and corporate assets, net 751 273
Deferred revenue - tenant improvement related (31) —
Amortization of deferred financing costs and debt discount/premium, net 1,289 786
Recurring capital expenditures, tenant improvements and leasing commissions (11,350) (9,640)
Normalized FAD attributable to common stockholders $ 75,924 $ 52,865
Net income attributable to common stockholders per diluted share $ 0.05 $ 0.09
FFO adjustments per diluted share, net 0.35 0.32
FFO attributable to common stockholders per diluted share $ 0.40 $ 0.41
Normalized FFO adjustments per diluted share, net 0.01 0.00
Normalized FFO attributable to common stockholders per diluted share $ 0.41 $ 0.41
Weighted average diluted common shares outstanding 209,177 146,117
Adjusted EBITDAre (1)
Three Months
Ended
1Q18
Net income $ 10,016
Interest expense and net change in fair value of derivative financial instruments 26,253
Depreciation and amortization expense 70,392
Impairment 4,606
Proportionate share of joint venture depreciation and amortization 351
EBITDAre $ 111,618
Transaction expenses 191
Non-cash compensation expense 3,479
Pro forma impact of acquisitions 15
Adjusted EBITDAre 115,303
Adjusted EBITDAre, annualized $ 461,212
FFO, Normalized FFO, Normalized FAD and Adjusted EBITDAre
(unaudited and in thousands, except per share data)
Financial Information
(1) Refer to page 22 for the reporting definitions of EBITDAre as defined by NAREIT and Adjusted EBITDAre as previously defined as Adjusted EBITDA.
.
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 9
Capitalization
Unsecured revolving credit facility $ —
Unsecured term loans 500,000
Unsecured senior notes 1,850,000
Secured mortgage loans 450,844
Deferred financing costs, net (15,145)
Discount, net (5,408)
Total debt $ 2,780,291
Less: cash and cash equivalents 56,243
Net debt $ 2,724,048
Stock price (as of March 31, 2018) $ 26.45
Total diluted common shares outstanding 209,213
Equity capitalization $ 5,533,684
Total capitalization $ 8,257,732
Total undepreciated assets $ 7,447,097
Gross book value of unencumbered assets $ 6,265,075
Total debt/undepreciated assets 37.3%
Net debt/total capitalization 33.0%
Net debt/Adjusted EBITDAre ratio 5.9x
Equity
67%
Secured
Debt
5%
Unsecured
Debt
28%
Financial Information
Capitalization, Interest Expense and Covenants
(as of March 31, 2018, dollars and shares in thousands, except stock price)
Interest Expense
Covenants
Three Months Ended
1Q18 1Q17
Interest related to derivative financial instruments $ 58 $ 324
Gain on change in fair value of derivative financial instruments, net (1) — (839)
Total interest related to derivative financial instruments, including net change in fair value of derivative
financial instruments
58 (515)
Interest related to debt 26,195 16,058
Total interest expense $ 26,253 $ 15,543
Interest expense excluding net change in fair value of derivative financial instruments $ 26,253 $ 16,382
Bank Loans Required 1Q18
Total leverage ≤ 60% 36%
Secured leverage ≤ 30% 6%
Fixed charge coverage ≥ 1.50x 4.28x
Unencumbered leverage ≤ 60% 34%
Unencumbered coverage ≥ 1.75x 4.93x
Senior Notes Required 1Q18
Total leverage ≤ 60% 38%
Secured leverage ≤ 40% 6%
Unencumbered asset coverage ≥ 150% 281%
Interest coverage ≥ 1.50x 4.13x
(1) In March 2017, HTA designated its derivative financial instruments as cash flow hedges.
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 10
Secured Mortgage Loans Unsecured Senior Notes due 2021
Unsecured Senior Notes due 2022 Unsecured Term Loan due 2023 ($300M)
Unsecured Senior Notes due 2023 Unsecured Term Loan due 2023 ($200M)
Unsecured Senior Notes due 2026 Unsecured Senior Notes due 2027
$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2018 2019 2020 2021 2022 Thereafter
Financial Information
Debt Composition and Maturity Schedule
(as of March 31, 2018, dollars in thousands)
Unsecured
Revolving
Credit
Facility due
2022 (1)
Secured
Mortgage
Loans
Unsecured
Senior
Notes due
2021
Unsecured
Senior
Notes due
2022
Unsecured
Term Loan
due 2023
Unsecured
Senior
Notes due
2023
Unsecured
Term Loan
due 2023
Unsecured
Senior
Notes due
2026
Unsecured
Senior
Notes due
2027 Total
2018 $ — $ 100,915 $ — $ — $ — $ — $ — $ — $ — $ 100,915
2019 — 107,676 — — — — — — — 107,676
2020 — 146,678 — — — — — — — 146,678
2021 — 5,772 300,000 — — — — — — 305,772
2022 — 63,063 — 400,000 — — — — — 463,063
Thereafter — 26,740 — — 300,000 300,000 200,000 350,000 500,000 1,676,740
Subtotal — 450,844 300,000 400,000 300,000 300,000 200,000 350,000 500,000 2,800,844
Deferred financing
costs, net — (178) (1,420) (2,674) (2,285) (1,736) (1,583) (1,356) (3,913) (15,145)
Premiums
(discounts), net — 1,471 (1,080) (211) — (1,276) — (1,943) (2,369) (5,408)
Total $ — $ 452,137 $ 297,500 $ 397,115 $ 297,715 $ 296,988 $ 198,417 $ 346,701 $ 493,718 $ 2,780,291
Stated rate (2) 2.93% 4.30% 3.38% 2.95% 2.98% 3.70% 3.53% 3.50% 3.75% 3.55%
Hedged rate (3) 2.93% 4.39% 3.38% 2.95% 2.98% 3.70% 3.22% 3.50% 3.75% 3.54%
Debt Composition
(1) Rate does not include the 20 basis point facility fee that is payable on the entire $1.0 billion revolving credit facility.
(2) The stated rate on the debt instrument as of the end of the period.
(3) The effective rate incorporates any swap instruments that serve to fix variable rate debt, as of the end of the period.
Debt Maturity Schedule
$100,915 $107,676 $146,678
$305,772
$463,063
$1,676,740
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 11
Property Market Date Acquired
% Leased at
Acquisition Purchase Price (1) GLA
Medical Office Condos and Land Various January/February 100 $ 3,854 10
Sandy Forks MOB Raleigh, NC February 100 8,415 24
Total $ 12,269 34
Portfolio Information
Investment Activity
(as of March 31, 2018, dollars and GLA in thousands)
2018 Acquisitions
Annual Investments (1)
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 12
(1) Excludes real estate note receivables and corporate assets.
As of March 31, 2018, HTA has invested $7.0 billion primarily in MOBs, development properties and other healthcare assets comprising 24.1 million square
feet of GLA.
Acquisitions Dispositions
$2,900,000
$2,300,000
$1,700,000
$1,100,000
$500,000
-$100,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$413,150
$542,976
$455,950
$802,148
$68,314
($39,483)
$294,937
$397,826
$271,510
$439,530
$700,764
($35,685)($82,885) ($85,150)
$2,722,467
$12,269
Region Investment % of Investment Total GLA (1) % of Portfolio
Annualized
Base Rent (2)
% of
Annualized
Base Rent
Southwest $ 2,617,815 37.5% 8,030 33.3% $ 179,678 34.0%
Southeast 2,018,032 28.9 7,352 30.4 160,004 30.3
Northeast 1,275,642 18.3 4,707 19.5 106,359 20.1
Midwest 1,064,193 15.2 4,037 16.7 81,484 15.5
Northwest 7,750 0.1 22 0.1 542 0.1
Total $ 6,983,432 100% 24,148 100% $ 528,067 100%
Portfolio Information
Regional Portfolio Distribution and Key Markets and Top 75 MSA Concentration
(as of March 31, 2018, dollars and GLA in thousands)
Regional Portfolio Distribution
Key Markets and Top 75 MSA Concentration (3)
(1) Total portfolio GLA excludes GLA of projects under development and includes 100% of the GLA of its unconsolidated joint venture.
(2) Refer to page 22 for the reporting definition of Annualized Base Rent.
(3) Key markets are titled as such based on HTA’s concentration in the respective MSA.
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 13
Key Markets Investment
% of
Investment Total GLA % of Portfolio
Annualized
Base Rent
% of
Annualized
Base Rent
Dallas, TX $ 843,274 12.1% 2,052 8.5% $ 49,919 9.5%
Houston, TX 430,979 6.2 1,484 6.2 31,584 6.0
Boston, MA 410,730 5.9 1,037 4.3 32,290 6.1
Tampa, FL 350,746 5.0 952 3.9 23,483 4.4
Atlanta, GA 325,186 4.7 1,088 4.5 23,296 4.4
Indianapolis, IN 281,768 4.0 1,396 5.8 24,781 4.7
Hartford/New Haven, CT 277,931 4.0 970 4.0 21,326 4.0
Phoenix, AZ 267,781 3.8 1,316 5.5 25,005 4.7
Denver, CO 246,957 3.5 538 2.2 17,343 3.3
Orange County/Los Angeles, CA 241,242 3.4 513 2.1 13,736 2.6
Miami, FL 228,624 3.3 995 4.1 21,561 4.1
Raleigh, NC 194,429 2.8 632 2.6 15,602 3.0
Chicago, IL 190,778 2.7 382 1.6 11,486 2.2
Albany, NY 179,253 2.6 881 3.7 16,118 3.0
Greenville, SC 179,070 2.6 965 4.0 17,917 3.4
Austin, TX 164,425 2.3 408 1.7 8,311 1.6
Orlando, FL 156,300 2.2 512 2.1 10,863 2.1
Pittsburgh, PA 148,612 2.1 1,094 4.5 20,736 3.9
White Plains, NY 126,144 1.8 333 1.4 8,070 1.5
Milwaukee, WI 116,082 1.7 368 1.5 7,703 1.5
Top 20 MSAs 5,360,311 76.7 17,916 74.2 401,130 76.0
Additional Top MSAs 1,198,886 17.2 4,526 18.7 90,977 17.2
Total Key Markets & Top 75
MSAs $ 6,559,197 93.9% 22,442 92.9% $ 492,107 93.2%
Portfolio Information
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 14
Development Market Total GLA % Leased
Baptist Memorial Oxford MOB Oxford, MS 80 97%
BS&W EMC - Grand Prairie MOB Dallas, TX 27 100
UNC REX Holly Springs MOB Raleigh, NC 45 100
Stabilized Total 152 98
Main Line Bryn Mawr MOB Philadelphia, PA 101 61
Centegra Health MOB Chicago, IL 81 84
Unstabilized Total 182 71
Memorial Hermann Plaza II MOB Houston, TX 100 100
Providence Facey MOB Orange County, CA 37 100
Construction in Progress total 137 100
Total 471 88%
Development
Completion/
Estimated
Completion
Total
Construction Cost
Construction in
Progress Costs to Complete
Baptist Memorial Oxford MOB 3Q17 $ 21,956 $ 21,479 $ 477
BS&W EMC - Grand Prairie MOB 4Q17 16,736 15,010 1,726
UNC REX Holly Springs MOB 4Q17 18,970 18,008 962
Stabilized Total 57,662 54,497 3,165
Main Line Bryn Mawr MOB 1Q17 32,891 31,655 1,236
Centegra Health MOB 1Q17 24,239 23,709 530
Unstabilized Total 57,130 55,364 1,766
Memorial Hermann Plaza II MOB 2Q18 21,159 9,067 12,092
Providence Facey MOB 2Q18 19,008 13,905 5,103
Construction in Progress total $ 40,167 $ 22,972 $ 17,195
Stabilized yield 6.8%
Total construction costs/gross real estate
investments 2.2%
Development Summary - Development Costs Three Months Ended
1Q18
Development $ 14,081
Capital Expenditures Three Months Ended
1Q18
Recurring capital expenditures $ 2,502
Tenant improvements - 2nd generation 6,453
Lease commissions (1) 2,395
Total recurring capital expenditures $ 11,350
Capital expenditures - 1st generation/acquisition 1,604
Tenant improvements - 1st generation 2,068
Total capital expenditures $ 15,022
Development Summary and Capital Expenditures
(as of March 31, 2018, dollars and GLA in thousands)
Development Summary - Property Information
Development Summary - Financial Information
(1) For the three months ended 1Q18, lease commissions includes approximately $1.3 million of initial direct costs that may be subject to the adoption of Topic 842 (Leases) effective
January 1, 2019.
Three Months Ended Sequential Year-Over-Year
1Q18 4Q17 1Q17 $ Change % Change $ Change % Change
Rental revenue $ 91,516 $ 92,359 $ 90,201 $ (843) (0.9)% $ 1,315 1.5%
Tenant recoveries 26,184 23,910 25,221 2,274 9.5 963 3.8
Total rental income 117,700 116,269 115,422 1,431 1.2 2,278 2.0
Expenses 36,697 34,055 36,250 2,642 7.8 447 1.2
Same-Property Cash NOI $ 81,003 $ 82,214 $ 79,172 $ (1,211) (1.5)% $ 1,831 2.3%
Rental Margin (1) 88.5% 89.0% 87.8%
As of
1Q18 4Q17 1Q17
Number of buildings 342 342 342
GLA 16,853 16,852 16,833
Leased GLA, end of period 15,529 15,506 15,464
Leased %, end of period 92.1% 92.0% 91.9%
Occupancy GLA, end of period 15,337 15,364 15,335
Occupancy %, end of period 91.0% 91.2% 91.1%
NOI (2) Three Months Ended
1Q18 1Q17
Net income $ 10,016 $ 14,000
General and administrative expenses 8,786 8,423
Transaction expenses 191 284
Depreciation and amortization expense 70,392 47,056
Impairment 4,606 —
Interest expense and net change in fair value of derivative financial instruments 26,253 15,543
Gain on sale of real estate, net — (3)
Loss on extinguishment of debt, net — 32
Income from unconsolidated joint venture (570) —
Other income (35) (8)
NOI $ 119,639 $ 85,327
NOI percentage growth 40.2%
NOI $ 119,639 $ 85,327
Straight-line rent adjustments, net (3,166) (1,209)
Amortization of (below) and above market leases/leasehold interests, net 215 (94)
Cash NOI $ 116,688 $ 84,024
Notes receivable interest income (36) (292)
Non Same-Property Cash NOI (35,649) (4,560)
Same-Property Cash NOI $ 81,003 $ 79,172
Same-Property Cash NOI percentage growth 2.3%
Portfolio Information
Same-Property Performance and NOI
(as of March 31, 2018, unaudited and dollars and GLA in thousands)
Same-Property Performance
(1) Rental margin presents Same-Property Cash NOI divided by Same-Property rental revenue.
(2) Refer to pages 22 and 23 for the reporting definitions of NOI, Cash NOI and Same-Property Cash NOI.
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 15
As of
1Q18 4Q17 3Q17 2Q17 1Q17
Off-campus aligned 26% 26% 26% 26% 29%
On-campus 70 70 70 71 67
On-campus/aligned 96% 96% 96% 97% 96%
Off-campus/non-aligned 4 4 4 3 4
Total 100% 100% 100% 100% 100%
Number of
Buildings
Number of
States GLA (1)
% of Total
GLA
Annualized
Base Rent
% of
Annualized
Base Rent
Medical Office Buildings
Single-tenant 118 21 6,359 26.3% $ 146,548 27.8%
Multi-tenant 313 32 16,480 68.2 343,497 65.0
Other Healthcare Facilities
Hospitals 15 7 954 4.0 32,780 6.2
Senior care 3 1 355 1.5 5,242 1.0
Total 449 33 24,148 100% $ 528,067 100%
Number of
Buildings
Number of
States GLA (1)
% of Total
GLA
Annualized
Base Rent
% of
Annualized
Base Rent
Net-Lease/Gross-Lease
Net-lease 295 30 15,392 63.7% $ 344,870 65.3%
Gross-lease 154 19 8,756 36.3 183,197 34.7
Total 449 33 24,148 100% $ 528,067 100%
(1) Total portfolio GLA excludes GLA of projects under development and includes 100% of the GLA of its unconsolidated joint venture.
(2) Percentages shown as percent of total GLA.
(3) Refer to page 23 for the reporting definitions of Off-campus/non-aligned and On-campus/aligned.
(4) Refer to pages 22 and 23 for the reporting definitions of Customary Health System Restrictions, Economic with Limited Restrictions, and Occupancy Health System Restrictions.
Portfolio Information
Portfolio Diversification by Type, Historical Campus Proximity and Ownership Interests
(as of March 31, 2018, dollars and GLA in thousands)
Portfolio Diversification by Type
Historical Campus Proximity (2)(3)
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 16
Ownership Interests (4)
Number of
Buildings GLA (1)
Annualized
Base Rent
% of
Annualized
Base Rent
As of (2)
1Q18 4Q17 3Q17 2Q17 1Q17
Fee Simple 308 15,033 $ 331,887 63% 62% 62 % 62 % 62 % 69 %
Customary Health System
Restrictions 126 8,126 174,786 33 34 34 34 34 26
Economic with Limited
Restrictions 5 262 6,891 1 1 1 1 1 1
Occupancy Health System
Restrictions 10 727 14,503 3 3 3 3 3 4
Leasehold Interest Subtotal 141 9,115 196,180 37 38 38 38 38 31
Total 449 24,148 $ 528,067 100% 100% 100 % 100 % 100 % 100 %
Total GLA Average Term (2)
Average Base Rent (3) Tenant
Improvements (3)
Leasing
Commissions (3) Expiring Starting
1Q 2018
New Leases 177 6.4 $ 23.47 $ 24.72 $ 1.50
Renewal Leases 486 4.5 $ 22.69 23.31 4.81 1.04
Total 1Q 2018 663 5.0 $ 23.33 $ 10.40 $ 1.17
As of
1Q18 4Q17 3Q17 2Q17 1Q17
Total portfolio leased rate 91.8% 91.8% 91.7% 92.0% 91.8%
On-campus/aligned leased rate 91.8 91.8 91.7 92.0 91.8
Off-campus/non-aligned leased rate 91.9 91.6 92.5 92.3 90.3
Total portfolio occupancy rate 90.7 91.0 90.6 91.1 91.0
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 17
Portfolio Information
Historical Leased Rate, New and Renewal Leasing Activity and Tenant Lease Expirations
(as of March 31, 2018, dollars and GLA in thousands)
New and Renewal Leasing Activity
Historical Leased Rate (1)
Expiration
Number of
Expiring Leases
Total GLA of
Expiring Leases
% of GLA of
Expiring
Leases
Annualized Base
Rent of Expiring
Leases
% of Total
Annualized
Base Rent
Month-to-month 146 454 2.0% $ 11,641 2.2%
2018 395 1,384 6.2 28,948 5.5
2019 554 2,335 10.5 61,250 11.6
2020 455 2,010 9.1 48,162 9.1
2021 545 2,814 12.7 62,443 11.8
2022 384 2,197 9.9 51,907 9.8
2023 221 1,594 7.2 32,972 6.3
2024 176 1,848 8.3 42,058 8.0
2025 161 1,104 5.0 26,236 5.0
2026 136 1,111 5.0 22,691 4.3
2027 143 1,985 9.0 52,496 9.9
Thereafter 218 3,338 15.1 87,263 16.5
Total 3,534 22,174 100% $ 528,067 100%
Tenant Lease Expirations
(1) Calculations are based on percentage of total GLA, excluding GLA for projects under development and including 100% of the GLA of its unconsolidated joint venture.
(2) Amounts presented in years.
(3) Amounts presented per square feet.
Health System
Weighted
Average
Remaining
Lease Term (2)
Credit
Rating
Total Leased
GLA
% of
Leased
GLA
Annualized
Base Rent
% of
Annualized
Base Rent
Baylor Scott & White Health 8 Aa3 852 3.9% $ 22,405 4.2%
Highmark-Allegheny Health Network (3) 5 Baa2 914 4.1 17,691 3.4
Greenville Health System 6 A1 806 3.6 15,976 3.0
Community Health Systems (TN) 7 Caa1 728 3.3 15,136 2.9
Providence St. Joseph Health 2 Aa3 435 2.0 11,820 2.2
Ascension Health 2 Aa2 473 2.1 11,791 2.2
Tenet Healthcare System 7 B2 446 2.0 10,760 2.0
Tufts Medical Center 9 Aa2 255 1.2 10,306 2.0
Hospital Corporation of America 4 BB 363 1.6 9,622 1.8
Steward Health Care System 9 NR 383 1.7 9,507 1.8
SCL Health 13 Aa3 167 0.8 8,284 1.6
Harbin Clinic 10 NR 313 1.4 6,704 1.3
Adventist Health 4 Aa2 282 1.3 6,211 1.2
Mercy Health 9 Aa3 251 1.1 6,196 1.2
Atrium Health 3 Aa3 197 0.9 5,901 1.1
Total 6,865 31.0% $ 168,310 31.9%
Health System Relationship Highlights
Portfolio Information
Key Health System Relationships and Highlights
(as of March 31, 2018, dollars and GLA in thousands, except as otherwise noted)
Key Health System Relationships (1)
(1) The amounts in this table illustrate only direct leases with selected top health systems in the HTA portfolio and is not inclusive of all HTA’s health system tenants.
(2) Amounts presented in years.
(3) Credit rating refers to Highmark, Inc.
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 18
Baylor Scott & White Health (Aa3), headquartered in Dallas, Texas, is the largest not-for-profit health care system in Texas. Baylor Scott & White
Health was started in 2013 with the combination of Baylor Health Care System and Scott & White Healthcare. BS&W includes 48 hospitals, more
than 1,000 patient care sites, and more than 9,600 active physicians. BS&W provides inpatient, outpatient, rehabilitation, and emergency medical
services helping 5.1 million patients annually.
Highmark-Allegheny Health Network (Baa2), based in Pittsburgh, Pennsylvania, is a diversified healthcare partner that serves members across the
United States through its businesses in health insurance, dental insurance, vision care and reinsurance. In 2013, Highmark and West Penn Allegheny
combined to create an integrated care delivery model which they believe will preserve an important community asset that provides high-quality,
efficient health care for patients. Highmark’s mission is to deliver high quality, accessible, understandable and affordable experiences, outcomes and
solutions to their customers.
Greenville Health System (A1), located in Greenville, South Carolina, is a public not-for-profit academic healthcare delivery system committed to
medical excellence through clinical care, education and research. GHS is a health resource for its community and a leader in transforming the
delivery of healthcare for the benefit of people and communities served. The University of South Carolina School of Medicine Greenville is located on
GHS’ Greenville Memorial Medical Campus. The medical school is focused on transforming healthcare by training physicians to connect with
communities, patients, colleagues and technology in a new, more progressive way.
Community Health Systems (TN) (Caa1), headquartered in Franklin, Tennessee, is one of the nation’s leading operators of general acute care
hospitals. The organization includes 137 affiliated hospitals in 21 states with approximately 123,000 employees and 20,000 physicians. Affiliated
hospitals are dedicated to providing quality healthcare for local residents and contribute to the economic development of their communities. Based on
the unique needs of each community served, these hospitals offer a wide range of diagnostic, medical and surgical services in inpatient and outpatient
settings.
Providence St. Joseph Health (Aa3), based in Seattle, Washington and Irvine, California, is held together by Providence Health and Services and
St. Joseph Health, a not-for-profit and social services system that will serve as the parent organization for more than 111,000 caregivers (employees)
across seven states.
As of
1Q18 4Q17
ASSETS
Real estate investments:
Land $ 486,403 $ 485,319
Building and improvements 5,851,437 5,830,824
Lease intangibles 638,103 639,199
Construction in progress 24,559 14,223
7,000,502 6,969,565
Accumulated depreciation and amortization (1,087,262) (1,021,691)
Real estate investments, net 5,913,240 5,947,874
Investment in unconsolidated joint venture 69,147 68,577
Cash and cash equivalents 56,243 100,356
Restricted cash 12,695 18,204
Receivables and other assets, net 203,686 207,857
Other intangibles, net 104,824 106,714
Total assets $ 6,359,835 $ 6,449,582
LIABILITIES AND EQUITY
Liabilities:
Debt $ 2,780,291 $ 2,781,031
Accounts payable and accrued liabilities 134,574 167,852
Derivative financial instruments - interest rate swaps 742 1,089
Security deposits, prepaid rent and other liabilities 59,530 61,222
Intangible liabilities, net 66,665 68,203
Total liabilities 3,041,802 3,079,397
Commitments and contingencies
Redeemable noncontrolling interests 6,770 6,737
Equity:
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and
outstanding — —
Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 205,179,776 and
204,892,118 shares issued and outstanding as of March 31, 2018 and December 31, 2017,
respectively 2,052 2,049
Additional paid-in capital 4,511,736 4,508,528
Accumulated other comprehensive loss 1,157 274
Cumulative dividends in excess of earnings (1,284,826) (1,232,069)
Total stockholders’ equity 3,230,119 3,278,782
Noncontrolling interests 81,144 84,666
Total equity 3,311,263 3,363,448
Total liabilities and equity $ 6,359,835 $ 6,449,582
Financial Statements
Condensed Consolidated Balance Sheets
(unaudited and in thousands, except share and per share data)
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 19
Three Months Ended
1Q18 1Q17
Revenues:
Rental income $ 175,567 $ 123,993
Interest and other operating income 94 354
Total revenues 175,661 124,347
Expenses:
Rental 56,022 39,020
General and administrative 8,786 8,423
Transaction 191 284
Depreciation and amortization 70,392 47,056
Impairment 4,606 —
Total expenses 139,997 94,783
Income before other income (expense) 35,664 29,564
Interest expense:
Interest related to derivative financial instruments (58) (324)
Gain on change in fair value of derivative financial instruments, net — 839
Total interest related to derivative financial instruments, including net change in fair value of derivative
financial instruments (58) 515
Interest related to debt (26,195) (16,058)
Gain on sale of real estate, net — 3
Loss on extinguishment of debt, net — (32)
Income from unconsolidated joint venture 570 —
Other income 35 8
Net income $ 10,016 $ 14,000
Net income attributable to noncontrolling interests (214) (455)
Net income attributable to common stockholders $ 9,802 $ 13,545
Earnings per common share - basic:
Net income attributable to common stockholders $ 0.05 $ 0.10
Earnings per common share - diluted:
Net income attributable to common stockholders $ 0.05 $ 0.09
Weighted average common shares outstanding:
Basic 205,069 141,780
Diluted 209,177 146,117
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 20
Financial Statements
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share data)
Three Months Ended
1Q18 1Q17
Cash flows from operating activities:
Net income $ 10,016 $ 14,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other 68,303 46,213
Share-based compensation expense 3,507 2,530
Bad debt expense 3 103
Impairment 4,606 —
Income from unconsolidated joint venture (570) —
Gain on sale of real estate, net — (3)
Loss on extinguishment of debt, net — 32
Change in fair value of derivative financial instruments — (839)
Changes in operating assets and liabilities:
Receivables and other assets, net 9,274 (7,771)
Accounts payable and accrued liabilities (30,780) (7,934)
Prepaid rent and other liabilities (3,479) 682
Net cash provided by operating activities 60,880 47,013
Cash flows from investing activities:
Investments in real estate (11,887) (34,706)
Development of real estate (13,235) —
Proceeds from the sale of real estate — 4,746
Capital expenditures (17,417) (12,894)
Collection of real estate notes receivable 172 —
Net cash used in investing activities (42,367) (42,854)
Cash flows from financing activities:
Borrowings on unsecured revolving credit facility — 92,000
Payments on unsecured revolving credit facility — (10,000)
Payments on secured mortgage loans (1,598) (40,155)
Security deposits 52 14
Repurchase and cancellation of common stock (2,709) (3,118)
Dividends paid (62,546) (42,536)
Distributions paid to noncontrolling interest of limited partners (1,334) (1,332)
Net cash used in financing activities (68,135) (5,127)
Net change in cash, cash equivalents and restricted cash (49,622) (968)
Cash, cash equivalents and restricted cash - beginning of period 118,560 25,045
Cash, cash equivalents and restricted cash - end of period $ 68,938 $ 24,077
Financial Statements
Condensed Consolidated Statements of Cash Flows
(unaudited and in thousands)
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 21
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 22
Reporting Definitions
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Adjusted EBITDAre”): Previously defined as Adjusted
EBITDA, Adjusted EBITDAre is presented on an assumed annualized basis. HTA defines Adjusted EBITDAre as EBITDAre (computed in
accordance with NAREIT as defined below) plus: (i) transaction expenses; (ii) gain or loss on extinguishment of debt; (iii) non-cash compensation
expense; (iv) pro forma impact of its acquisitions/dispositions; and (v) other normalizing items. HTA considers Adjusted EBITDAre an important
measure because it provides additional information to allow management, investors, and its current and potential creditors to evaluate and
compare its core operating results and its ability to service debt.
Annualized Base Rent: Annualized base rent is calculated by multiplying contractual base rent for the end of the period by 12 (excluding the
impact of abatements, concessions, and straight-line rent).
Cash Net Operating Income (“Cash NOI”): Cash NOI is a non-GAAP financial measure which excludes from NOI: (i) straight-line rent adjustments;
and (ii) amortization of below and above market leases/leasehold interests. Contractual base rent, contractual rent increases, contractual rent
concessions and changes in occupancy or lease rates upon commencement and expiration of leases are a primary driver of HTA’s revenue
performance. HTA believes that Cash NOI, which removes the impact of straight-line rent adjustments, provides another measurement of the
operating performance of its operating assets. Additionally, HTA believes that Cash NOI is a widely accepted measure of comparative operating
performance of real estate investment trusts (“REITs”). However, HTA’s use of the term Cash NOI may not be comparable to that of other REITs
as they may have different methodologies for computing this amount. Cash NOI should not be considered as an alternative to net income or
loss (computed in accordance with GAAP) as an indicator of its financial performance. Cash NOI should be reviewed in connection with other
GAAP measurements.
Credit Ratings: Credit ratings of HTA’s tenants or their parent companies.
Customary Health System Restrictions: Ground leases with a health system ground lessor that include restrictions on tenants that may be
considered competitive with the hospital, including provisions that tenants must have hospital privileges.
Economic with Limited Restrictions: Ground leases that are primarily economic in nature and contain no material restrictions on tenancy.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”): NAREIT defines EBITDAre as net income or loss
(computed in accordance with GAAP) plus: (i) interest expense and net change in the fair value of derivative financial instruments; (ii) income
tax expense (not applicable to HTA); (iii) depreciation and amortization; (iv) impairment; (v) gain or loss from sale of real estate; and (vi) and
proportionate share of joint venture depreciation, amortization and other adjustments.
Funds from Operations (“FFO”): HTA computes FFO in accordance with the current standards established by NAREIT. NAREIT defines FFO
as net income or loss attributable to common stockholders (computed in accordance with GAAP), excluding gains or losses from sales of real
estate property and impairment write-downs of depreciable assets, plus depreciation and amortization related to investments in real estate, and
after adjustments for unconsolidated partnerships and joint ventures. HTA presents this non-GAAP financial measure because it considers it
an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other
interested parties in the evaluation of REITs. Historical cost accounting assumes that the value of real estate assets diminishes ratably over
time. Since real estate values have historically risen or fallen based on market conditions, many industry investors have considered the
presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Because FFO
excludes depreciation and amortization unique to real estate, among other items, it provides a perspective not immediately apparent from net
income or loss attributable to common stockholders.
Gross Leasable Area (“GLA”): Gross leasable area in square feet.
Investments in Real Estate: Based on acquisition price.
Leased Rate: Leased rate represents the percentage of total GLA that is leased (excluding GLA for properties under development), including
month-to-month leases and leases which have been executed, but which have not yet commenced, as of the date reported.
Metropolitan Statistical Area (“MSA”): Is a geographical region with a relatively high population density at its core and close economic ties
throughout the area. MSAs are defined by the Office of Management and Budget.
Net Operating Income (“NOI”): NOI is a non-GAAP financial measure that is defined as net income or loss (computed in accordance with GAAP)
before: (i) general and administrative expenses; (ii) transaction expenses; (iii) depreciation and amortization expense; (iv) impairment; (v) interest
expense and net change in fair value of derivative financial instruments; (vi) gain or loss on sales of real estate; (vii) gain or loss on extinguishment
of debt; (viii) income or loss from unconsolidated joint venture; and (ix) other income or expense. HTA believes that NOI provides an accurate
measure of the operating performance of its operating assets because NOI excludes certain items that are not associated with the management
of its properties. Additionally, HTA believes that NOI is a widely accepted measure of comparative operating performance of REITs. However,
HTA’s use of the term NOI may not be comparable to that of other REITs as they may have different methodologies for computing this amount.
NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of its financial
performance. NOI should be reviewed in connection with other GAAP measurements.
1Q 2018 I Supplemental Information
Healthcare Trust of America, Inc. I 23
Reporting Definitions - Continued
Normalized Funds Available for Distribution (“Normalized FAD”): HTA computes Normalized FAD, which excludes from Normalized FFO: (i)
other income or expense; (ii) non-cash compensation expense; (iii) straight-line rent adjustments; (iv) amortization of below and above market
leases/leasehold interests and corporate assets; (v) amortization of deferred financing costs and debt premium/discount; and (vi) recurring
capital expenditures, tenant improvements and leasing commissions. HTA believes this non-GAAP financial measure provides a meaningful
supplemental measure of its operating performance. Normalized FAD should not be considered as an alternative to net income or loss attributable
to common stockholders (computed in accordance with GAAP) as an indicator of its financial performance, nor is it indicative of cash available
to fund cash needs. Normalized FAD should be reviewed in connection with other GAAP measurements.
Normalized Funds From Operations (“Normalized FFO”): HTA computes Normalized FFO, which excludes from FFO: (i) transaction expenses;
(ii) gain or loss on change in fair value of derivative financial instruments; (iii) gain or loss on extinguishment of debt; (iv) noncontrolling income
or loss from partnership units included in diluted shares; and (v) other normalizing items, which include items that are unusual and infrequent
in nature. HTA presents this non-GAAP financial measure because it allows for the comparison of its operating performance to other REITs and
between periods on a consistent basis. HTA’s methodology for calculating Normalized FFO may be different from the methods utilized by other
REITs and, accordingly, may not be comparable to other REITs. Normalized FFO should not be considered as an alternative to net income or
loss attributable to common stockholders (computed in accordance with GAAP) as an indicator of its financial performance, nor is it indicative
of cash available to fund cash needs. Normalized FFO should be reviewed in connection with other GAAP measurements.
Occupancy Health System Restrictions: Ground leases with customary health system restrictions whereby the restrictions cease if occupancy
in the buildings/on-campus fall below stabilized occupancy, which is generally between 85% and 90%.
Off-Campus/Non-Aligned: A building or portfolio that is not located on or adjacent to a healthcare or hospital campus or does not have full
alignment with a recognized healthcare system.
On-Campus/Aligned: On-campus refers to a property that is located on or adjacent to a healthcare or hospital campus. Aligned refers to a
property that is not on a healthcare or hospital campus, but is anchored by a healthcare system.
Recurring Capital Expenditures, Tenant Improvements and Leasing Commissions: Represents amounts paid for: (i) recurring capital expenditures
required to maintain and re-tenant its properties; (ii) second generation tenant improvements; and (iii) leasing commissions paid to secure new
tenants. Excludes capital expenditures and tenant improvements for recent acquisitions that were contemplated in the purchase price or closing
agreements.
Retention: Represents the sum of the total leased GLA of tenants that renewed a lease during the period over the total GLA of leases that
renewed or expired during the period.
Same-Property Cash Net Operating Income (“Same-Property Cash NOI”): To facilitate the comparison of Cash NOI between periods, HTA
calculates comparable amounts for a subset of its owned and operational properties referred to as “Same-Property”. Same-Property Cash NOI
excludes properties which have not been owned and operated by HTA during the entire span of all periods presented, excluding properties
intended for disposition in the near term, development and land parcels, HTA’s share of unconsolidated joint ventures, notes receivable interest
income and certain non-routine items. Same-Property Cash NOI should not be considered as an alternative to net income or loss (computed
in accordance with GAAP) as an indicator of its financial performance. Same-Property Cash NOI should be reviewed in connection with other
GAAP measurements.
