Document

EX-99.2 3 exhibit992supplementalinfo.htm EX-99.2 Document


1Q2023
Supplemental Information
FURNISHED AS OF MAY 9, 2023 - UNAUDITED


FORWARD LOOKING STATEMENTS & RISK FACTORS

This Supplemental Information report contains disclosures that are “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words and phrases such as “can,” “may,” “payable,” “indicative,” "predictive," “annualized,” “expect,” “expected,” “range of expectations,” "would have been," "budget," and other comparable terms in this report, and include, but are not limited to, statements related to the merger between Healthcare Realty Trust Incorporated (“Legacy HR” and, after the closing of the merger, the “Company” or "HR") and Healthcare Trust of America, Inc. (“HTA”) that closed on July 20, 2022 (the “Merger”). These forward-looking statements are made as of the date of this report and are not necessarily indicative of future performance. These statements are based on the current plans and expectations of Company management and are subject to a number of unknown risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those described in this release or implied by such forward-looking statements. Such risks and uncertainties include, among other things, the following: failure to realize the expected benefits of the Merger; the risk that the Company’s and HTA’s respective businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; risks related to future opportunities and plans for the Company, including the uncertainty of expected future financial performance and results of the Company; the possibility that, if the Company does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline; pandemics or other health crises, such as COVID-19; increases in interest rates; the availability and cost of capital at expected rates; competition for quality assets; negative developments in the operating results or financial condition of the Company's tenants, including, but not limited to, their ability to pay rent; the Company's ability to reposition or sell facilities with profitable results; the Company's ability to release space at similar rates as vacancies occur; the Company's ability to renew expiring leases; government regulations affecting tenants' Medicare and Medicaid reimbursement rates and operational requirements; unanticipated difficulties and/or expenditures relating to future acquisitions and developments; changes in rules or practices governing the Company's financial reporting; the Company may be required under purchase options to sell properties and may not be able to reinvest the proceeds from such sales at rates of return equal to the return received on the properties sold; uninsured or underinsured losses related to casualty or liability; the incurrence of impairment charges on its real estate properties or other assets; and other legal and operational matters. Other risks, uncertainties and factors that could cause actual results to differ materially from those projected are detailed under the heading “Risk Factors,” in the Annual Reports on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2022, under the heading "Risk Factors" and other risks described from time to time thereafter in the Legacy HR’s. HTA’s, and the Company's SEC filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Table of Contents


4			Highlights
6			Salient Facts
7			Corporate Information
8			Balance Sheet
9			Statements of Income
10			FFO, Normalized FFO, & FAD
11			Capital Funding & Commitments
12			Debt Metrics
13			Debt Covenants & Liquidity
14			Investment Activity
15			Re/development Activity
16			Portfolio
17			Health Systems
18			MOB Proximity to Hospital
19			Lease Maturity & Occupancy
20			Leasing Statistics
21			NOI Performance
22			NOI Reconciliations
23			EBITDA Reconciliations
25			Components of Net Asset Value
26			Components of Expected FFO

Copies of this report may be obtained at www.healthcarerealty.com or by contacting Investor Relations at 615.269.8175 or communications@healthcarerealty.com.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 3


Highlights


QUARTERLY HIGHLIGHTS

•Net loss attributable to common stockholders for the three months ended March 31, 2023 was $87.1 million or $0.23 per diluted common share.

•Normalized FFO per share totaled $0.40.

•Same store cash NOI, including the Company's share of joint ventures, for the first quarter increased 2.8% over the prior year. For the trailing twelve months ended March 31, 2023, same store cash NOI, including the Company's share of joint ventures, grew 2.9%.

•Predictive growth measures in the same store portfolio include:

◦Average in-place rent increases of 2.7%

◦Future annual contractual increases of 2.9% for leases commencing in the quarter.

◦Weighted average cash leasing spreads of 3.1% on 954,000 square feet renewed:

▪7% (<0% spread)

▪22% (0-3%)

▪52% (3-4%)

▪19% (>4%)

◦Tenant retention of 82.3%

◦Year-over-year absorption of 150,000 square feet resulted in an average occupancy increase of 50 basis points, to 89.0%.

•Portfolio leasing activity in the first quarter totaled 1,463,000 square feet related to 338 leases:

◦1,039,000 square feet of renewals

◦424,000 square feet of new and expansion leases

•Since January 31st, the Company has closed $96.0 million of asset sales. Year-to-date, the Company closed joint ventures and asset sale transactions totaling $208.8 million at a weighted average cap rate of 6.5%.

•The Company reserved $2.4 million, or approximately $0.01 per share, of first quarter revenue related to Legacy HTA assets more fully described below.

◦The Company reserved $1.5 million of rental income for three skilled nursing facilities in Florida, and $0.9 million in interest income due under a $54.1 million mezzanine construction loan for a project in Houston.

◦In addition, the Company recorded an allowance for credit loss of $5.2 million against the mezzanine loan principal balance and $3.4 million for previously deferred rent from the skilled nursing facilities. The Company normalized for the non-cash charges related to these balance sheet allowances.

◦The Company expects to generate in excess of $100 million in proceeds over the next twelve months from the repayment of the loan and the sale of the skilled nursing facilities.

◦The Company does not have any additional mezzanine loans or skilled nursing facilities in the portfolio.

•In March, the Company acquired an outpatient medical facility in Tampa, FL totaling 116,000 square feet for $31.5 million at a 6.6% cap rate. This building is adjacent to the 465-bed BayCare St. Joseph's Hospital. The Company now owns three buildings totaling 172,000 square feet in this cluster.

•In the first quarter, the Company entered into new interest rate swaps totaling $150 million at a weighted average rate of 3.8%. In January, $300 million of interest rate swaps expired.

•Net debt to adjusted EBITDA was 6.6 times at the end of the quarter. Leverage is expected to decline from additional asset sales and underlying portfolio NOI growth.

•A dividend of $0.31 per share was paid in March, which equaled 95% of FAD. For the trailing twelve months, quarterly dividends paid equaled 97% of FAD. A dividend of $0.31 per share will be paid on June 2, 2023 to stockholders and OP unitholders of record on May 16, 2023.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 4


Highlights

•On Tuesday, May 9, 2023, at 10:00 a.m. Central Time, Healthcare Realty Trust has scheduled a conference call to discuss earnings results, quarterly activities, general operations of the Company and industry trends. Simultaneously, a webcast of the conference call will be available to interested parties at www.healthcarerealty.com under the Investor Relations section. A webcast replay will be available following the call at the same address. Conference Call Access Details: Domestic Dial-In Number: +1 833-470-1428 access code 420531; All Other Locations: +1 404-975-4839 access code 420531. Replay Information: Domestic Dial-In Number: 866-813-9403 access code 380939; All Other Locations: +1 929-458-6194 access code 380939



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 5


Salient Facts 1
AS OF MARCH 31, 2023


			Properties

			715 properties totaling 41.8M SF
			71 markets in 35 states
			93% managed by Healthcare Realty
			92% outpatient medical facilities
			60% of NOI in Top 15 Markets


			Capitalization

			$13.1B enterprise value as of 3/31/23
			$7.4B market capitalization as of 3/31/23
			384.9M shares outstanding (including OP units)
			$0.31 quarterly dividend per share
			BBB/Baa2 S&P/Moody's
			43.0% net debt to enterprise value at 3/31/23
			6.6x net debt to adjusted EBITDA

1 Includes properties held in joint ventures.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 6


Corporate Information

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of March 31, 2023, the Company was invested in 715 real estate properties in 35 states totaling 41.8 million square feet and had an enterprise value of approximately $13.1 billion, defined as equity market capitalization plus the principal amount of debt less cash. The Company provided leasing and property management services to 93% of its portfolio.


EXECUTIVE OFFICERS

Todd J. Meredith
President and Chief Executive Officer

John M. Bryant, Jr.
Executive Vice President and General Counsel

J. Christopher Douglas
Executive Vice President and Chief Financial Officer

Robert E. Hull
Executive Vice President - Investments

Julie F. Wilson
Executive Vice President - Operations


			ANALYST COVERAGE

			Barclays Research
			BMO Capital Markets
			BTIG, LLC
			Citi Research
			Credit Suisse Securities (USA) LLC
			Green Street Advisors, Inc.
			J.P. Morgan Securities LLC
			Jefferies LLC
			KeyBanc Capital Markets Inc.
			Raymond James & Associates
			Scotiabank
			Stifel, Nicolaus & Company, Inc.
			Wells Fargo Securities, LLC


BOARD OF DIRECTORS

J. Knox Singleton

Chairman, Healthcare Realty Trust Incorporated

Retired Chief Executive Officer, Inova Health System

W. Bradley Blair, II

Vice Chairman, Healthcare Realty Trust Incorporated

Retired Chairman, Healthcare Trust of America

Todd J. Meredith

President and Chief Executive Officer

Healthcare Realty Trust Incorporated

John V. Abbott

Retired Chief Executive Officer

Aviation Asset Management Group, General Electric Company

Nancy H. Agee

President and Chief Executive Officer

Carilion Clinic

Vicki U. Booth

President and Board Chair

Ueberroth Family Foundation

Edward H. Braman

Retired Audit Partner

Ernst & Young LLP

Ajay Gupta

Chief Executive Officer

Physician Rehabilitation Network

James J. Kilroy

President and Portfolio Manager

Willis Investment Counsel

Jay P. Leupp

Managing Partner and Senior Portfolio Manager

Terra Firma Asset Management, LLC

Peter F. Lyle

Executive Vice President

Medical Management Associates, Inc.

Constance B. Moore

Retired President and CEO

BRE Properties, Inc.

Christann M. Vasquez

Retired Executive Vice President and Chief Operating Officer

Ascension Texas

David R. Emery (1944-2019)

Chairman Emeritus

Healthcare Realty Trust Incorporated



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 7


Balance Sheet
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA


ASSETS

	1Q 2023		4Q 2022		3Q 2022
Real estate properties
Land	$1,412,805		$1,439,798		$1,449,550
Buildings and improvements	11,196,297		11,332,037		11,439,797
Lease intangibles	929,008		959,998		968,914
Personal property	11,945		11,907		11,680
Investment in financing receivables, net	120,692		120,236		118,919
Financing lease right-of-use assets	83,420		83,824		79,950
Construction in progress	42,615		35,560		43,148
Land held for development	69,575		74,265		73,321
Total real estate investments	13,866,357		14,057,625		14,185,279
Less accumulated depreciation and amortization	(1,810,093)		(1,645,271)		(1,468,736)
Total real estate investments, net	12,056,264		12,412,354		12,716,543
Cash and cash equivalents	49,941		60,961		57,583

Assets held for sale, net	3,579		18,893		185,074
Operating lease right-of-use assets	336,112		336,983		321,365
Investments in unconsolidated joint ventures	327,746		327,248		327,752
Other assets, net and goodwill	795,242		693,192		587,126
Total assets	$13,568,884		$13,849,631		$14,195,443

LIABILITIES AND STOCKHOLDERS' EQUITY

	1Q 2023		4Q 2022		3Q 2022
Liabilities
Notes and bonds payable	$5,361,699		$5,351,827		$5,570,139
Accounts payable and accrued liabilities	155,210		244,033		231,018
Liabilities of properties held for sale	277		437		10,644
Operating lease liabilities	279,637		279,895		268,840
Financing lease liabilities	73,193		72,939		72,378
Other liabilities	232,029		218,668		203,398
Total liabilities	6,102,045		6,167,799		6,356,417


Redeemable non-controlling interests	2,000		2,014		—

Stockholders' equity
Preferred stock, $0.01 par value; 200,000 shares authorized	—		—		—
Common stock, $0.01 par value; 1,000,000 shares authorized	3,808		3,806		3,806
Additional paid-in capital	9,591,194		9,587,637		9,586,556
Accumulated other comprehensive (loss) income	(8,554)		2,140		5,524
Cumulative net income attributable to common stockholders	1,219,930		1,307,055		1,342,819
Cumulative dividends	(3,447,750)		(3,329,562)		(3,211,492)
Total stockholders' equity	7,358,628		7,571,076		7,727,213
Non-controlling interest	106,211		108,742		111,813
Total equity	7,464,839		7,679,818		7,839,026
Total liabilities and stockholders' equity	$	13,568,884	$	13,849,631	$	14,195,443



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 8


Statements of Income
DOLLARS IN THOUSANDS




	1Q 2023	4Q 2022
Revenues
Rental income	$324,093	$329,399
Interest income	4,214	4,227
Other operating	4,618	4,436
	332,925	338,062
Expenses
Property operating	122,040	117,009
General and administrative	14,935	14,417
Acquisition and pursuit costs 1	287	92
Merger-related costs	4,855	10,777
Depreciation and amortization	184,479	185,275
	326,596	327,570
Other income (expense)
Interest expense before merger-related fair value	(52,895)	(52,464)
Merger-related fair value adjustment	(10,864)	(11,979)
Interest expense	(63,759)	(64,443)
Gain on sales of real estate properties	1,007	73,083
Gain (loss) on extinguishment of debt	—	119
Impairment of real estate assets and credit loss reserves	(31,422)	(54,452)
Equity (loss) gain from unconsolidated joint ventures	(780)	89
Interest and other income (expense), net	547	(1,168)
	(94,407)	(46,772)
Net (loss) income	$(88,078)	$(36,280)
Net loss (income) attributable to non-controlling interests	953	516
Net (loss) income attributable to common stockholders	$(87,125)	$(35,764)

Basic earnings per common share	$(0.23)	$(0.10)
Diluted earnings per common share	$(0.23)	$(0.10)

Weighted average common shares outstanding - basic	378,840	378,617
Weighted average common shares outstanding - diluted 2	378,840	378,617

1Includes third party and travel costs related to the pursuit of acquisitions and developments.

2Potential common shares are not included in the computation of diluted earnings per share when a loss exists, as the effect would be an antidilutive per share amount. As a result, the Company's OP totaling 4,042,993 units was not included.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 9


FFO, Normalized FFO, & FAD 1,2,3
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA




	1Q 2023	4Q 2022
Net loss attributable to common stockholders	$(87,125)	$(35,764)
Net loss attributable to common stockholders per share 3	$(0.23)	$(0.10)

Gain on sales of real estate assets	$(1,007)	(73,083)
Impairments of real estate assets	26,227	54,452
Real estate depreciation and amortization	186,109	186,658
Non-controlling (loss) income from partnership units	(1,067)	(382)
Unconsolidated JV depreciation and amortization	4,841	4,020
FFO adjustments	$215,103	$171,665
FFO adjustments per common share - diluted	$0.56	$0.45
FFO	$127,978	$135,901
FFO per common share - diluted	$0.33	$0.35

Acquisition and pursuit costs	287	92
Merger-related costs	4,855	10,777
Lease intangible amortization	146	137

Non-routine legal costs/forfeited earnest money received	—	194
Debt financing costs	—	625
Allowance for credit losses 4	8,599	—
Merger-related fair value adjustment	10,864	11,979
Unconsolidated JV normalizing items 5	117	96
Normalized FFO adjustments	$24,868	$23,900
Normalized FFO adjustments per common share - diluted	$0.06	$0.06
Normalized FFO	$152,846	$159,801
Normalized FFO per common share - diluted	$0.40	$0.42

Non-real estate depreciation and amortization	604	624
Non-cash interest amortization, net 6	682	2,284
Rent reserves, net	1,371	(100)
Straight-line rent income, net	(8,246)	(9,873)
Stock-based compensation	3,745	3,573
Unconsolidated JV non-cash items 7	(227)	(316)
Normalized FFO adjusted for non-cash items	150,775	155,993
2nd generation TI	(8,882)	(13,523)
Leasing commissions paid	(7,013)	(7,404)
Capital expenditures	(8,946)	(25,669)
Total maintenance capex	(24,841)	(46,596)
FAD	$125,934	$109,397
Quarterly dividends and OP distributions	$119,442	$119,323
FFO wtd avg common shares outstanding - diluted 8	383,335	383,228

1Funds from operations (“FFO”) and FFO per share are operating performance measures adopted by the NAREIT. NAREIT defines FFO as “net income (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.”

2FFO, Normalized FFO and Funds Available for Distribution ("FAD") do not represent cash generated from operating activities determined in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs. FFO, Normalized FFO and FAD should not be considered alternatives to net income attributable to common stockholders as indicators of the Company's operating performance or as alternatives to cash flow as measures of liquidity.

3Potential common shares are not included in the computation of diluted earnings per share when a loss exists, as the effect would be an antidilutive per share amount.

4Includes a $5.2 million credit allowance for a mezzanine loan included in "Impairment of real estate and credit loss reserves" on the Statement of Income and $3.4 million reserve included in “Rental Income” on the Statement of Income for previously deferred rent and straight line rent for three skilled nursing facilities.

5Includes the Company's proportionate share of normalizing items related to unconsolidated joint ventures such as lease intangibles and acquisition and pursuit costs.

6Includes the amortization of deferred financing costs, discounts and premiums, and non-cash financing receivable amortization.

7Includes the Company's proportionate share of straight-line rent, net and rent reserves, net related to unconsolidated joint ventures.

8The Company utilizes the treasury stock method, which includes the dilutive effect of nonvested share-based awards outstanding of 401,937 for the three months ended March 31, 2023. Also includes the diluted impact of 4,042,993 OP units outstanding.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 10


Capital Funding & Commitments 1
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


ACQUISITION AND RE/DEVELOPMENT FUNDING
	Post-merger						Pre-merger
	1Q 2023		4Q 2022		3Q 2022		2Q 2022		1Q 2022
Acquisitions 2	$31,500		$26,388		$91,253		$163,762		$172,663
Re/development	16,928		23,372		31,546		9,387		7,664
1st generation TI & acquisition capex 3	11,870		21,218		12,596		8,103		7,473

MAINTENANCE CAPITAL EXPENDITURES FUNDING
	1Q 2023		4Q 2022		3Q 2022		2Q 2022		1Q 2022

2nd generation TI	$8,882		$13,523		$11,763		$5,051		$4,899
Leasing commissions paid	7,013		7,404		8,739		3,475		3,767
Capital expenditures	8,946		25,669		17,461		4,557		2,620
	$24,841		$46,596		$37,963		$13,083		$11,286
% of Cash NOI
2nd generation TI	4.2	%	6.4	%	5.5	%	5.6	%	5.6	%
Leasing commissions paid	3.3	%	3.5	%	4.1	%	3.9	%	4.3	%
Capital expenditures	4.3	%	12.1	%	8.1	%	5.1	%	3.0	%
	11.8	%	22.0	%	17.7	%	14.6	%	12.9	%

LEASING COMMITMENTS
	1Q 2023		4Q 2022		3Q 2022		2Q 2022		1Q 2022
Renewals
Square feet	949,285		623,363		632,690		205,400		260,202
2nd generation TI/square foot/lease year	$1.84		$1.90		$1.66		$1.66		$1.73
Leasing commissions/square foot/lease year	$0.87		$0.78		$1.03		$1.15		$1.04
Renewal commitments as a % of annual net rent	11.5	%	11.7	%	10.5	%	11.4	%	11.0	%
WALT (in months) 4	56.8		51.7		50.1		39.7		42.9

New leases
Square feet	274,344		297,340		262,904		79,467		96,001
2nd generation TI/square foot/lease year	$4.44		$6.25		$4.84		$7.07		$5.93
Leasing commissions/square foot/lease year	$0.83		$1.49		$1.39		$1.65		$1.90
New lease commitments as a % of annual net rent	21.6	%	36.2	%	28.1	%	40.6	%	32.2	%
WALT (in months) 4	84.7		72.7		87.1		77.4		76.9

All
Square feet	1,223,629		920,703		895,594		284,867		356,203


Leasing commitments as a % of annual net rent	14.7	%	21.0	%	16.9	%	22.6	%	19.2	%
WALT (in months) 4	63.1		58.4		61.0		50.2		52.1

1On July 20, 2022, Legacy HR and HTA closed the merger of the two companies, in which Legacy HR was the acquirer under GAAP. Accordingly, the historic financial statements of the combined company are those of Legacy HR.

2Acquisitions include properties acquired through joint ventures at the Company's ownership percentage.

3Acquisition capex includes near-term fundings underwritten as part of recent acquisitions.

4WALT = weighted average lease term.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 11


Debt Metrics1
DOLLARS IN THOUSANDS


SUMMARY OF INDEBTEDNESS AS OF MARCH 31, 2023
	PRINCIPAL BALANCE	BALANCE 1	MATURITY DATE	MONTHS TO MATURITY 2	INTEREST EXPENSE	CONTRACTUAL INTEREST EXPENSE	CONTRACTUAL RATE		EFFECTIVE RATE		FAIR VALUE MERGER ADJUSTED
SENIOR NOTES	$250,000	$249,206	5/1/2025	25	$2,470	$2,422	3.88	%	4.12	%
	600,000	573,410	8/1/2026	40	7,073	5,250	3.50	%	4.94	%	Y
	500,000	480,578	7/1/2027	51	5,712	4,687	3.75	%	4.76	%	Y
	300,000	296,995	1/15/2028	58	2,782	2,719	3.63	%	3.85	%
	650,000	567,863	2/15/2030	83	7,498	5,037	3.10	%	5.30	%	Y
	299,500	296,479	3/15/2030	84	1,927	1,797	2.40	%	2.72	%
	300,000	295,671	3/15/2031	96	1,592	1,538	2.05	%	2.25	%
	800,000	636,819	3/15/2031	96	8,127	4,000	2.00	%	5.13	%	Y
	$3,699,500	$3,397,021		68	$37,181	$27,450	2.97	%	4.43	%
TERM LOANS	$350,000	$349,494	7/20/2025	28	$4,870	$4,870	SOFR + 1.05%		5.72	%
	200,000	199,728	5/31/2026	38	2,783	2,783	SOFR + 1.05%		5.72	%
	150,000	149,532	6/1/2026	38	2,087	2,087	SOFR + 1.05%		5.72	%
	300,000	299,941	10/31/2026	43	4,175	4,175	SOFR + 1.05%		5.72	%
	200,000	199,397	7/1/2027	51	2,783	2,783	SOFR + 1.05%		5.72	%
	300,000	297,974	1/12/2028	57	4,175	4,175	SOFR + 1.05%		5.72	%
	$1,500,000	$1,496,066		42	$20,873	$20,873			5.72	%
$1.5B CREDIT FACILITY	$385,000	$385,000	10/31/2027	55	$4,577	$4,577	SOFR + 0.95%		5.76	%

MORTGAGES	$83,455	$83,612	various	23	$861	$852	4.07	%	4.00	%
	$5,667,955	$5,361,699		57	$63,492	$53,752	3.90	%	4.88	%	$2,550,000
Interest rate swaps					(3,911)	(3,911)
Interest cost capitalization					(570)	—
Unsecured credit facility fee & deferred financing costs					2,401	925
Amortization of fair value of January 2024 swap 3					1,429	—	1.21	%	3.21	%	Y
Financing right-of-use asset amortization					918	—
					$63,759	$50,766


DEBT MATURITIES SCHEDULE AS OF MARCH 31, 2023
	PRINCIPAL PAYMENTS
	BANK LOANS	SENIOR NOTES	MORTGAGE NOTES		TOTAL	WA RATE
2023			$18,212		$18,212	3.82	%
2024			25,353		25,353	4.41	%
2025	$350,000	$250,000	16,250		616,250	4.93	%
2026	650,000	600,000	23,640		1,273,640	4.64	%
2027	585,000	500,000			1,085,000	4.82	%
2028	300,000	300,000			600,000	4.67	%
Thereafter		2,049,500			2,049,500	2.41	%
Total	$1,885,000	$3,699,500	$83,455		$5,667,955	3.90	%
Fixed rate debt balance 4	$1,000,000	$3,699,500	$83,455		$4,782,955
% fixed rate debt to net debt			85.1	%
Company share of JV debt		$27,640


INTEREST RATE SWAPS
MATURITY	AMOUNT		FIXED SOFR RATE
January 2024	200,000		1.21	%
May 2026	100,000		2.15	%
June 2026	150,000		3.83	%
December 2026	150,000		3.84	%
June 2027	150,000		4.13	%
December 2027	250,000		3.79	%
As of 3/31/2023	$	1,000,000	3.17	%

1Balances are reflected net of discounts, fair value adjustments, and deferred financing costs and include premiums.

2Includes extension options.

3Interest expense includes $0.4 million of amortization related to the January 2023 expiring swap.

4Reflects $1.0 billion of interest rate swaps.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 12


Debt Covenants & Liquidity1
DOLLARS IN THOUSANDS


SELECTED FINANCIAL DEBT COVENANTS YEAR ENDED MARCH 31, 2023 2
	CALCULATION	REQUIREMENT	PER DEBT COVENANTS
Revolving credit facility and term loan
Leverage ratio	Total debt/total capital	Not greater than 60%	38.9	%
Secured leverage ratio	Total secured debt/total capital	Not greater than 30%	0.6	%
Unencumbered leverage ratio	Unsecured debt/unsecured real estate	Not greater than 60%	41.6	%
Fixed charge coverage ratio	EBITDA/fixed charges	Not less than 1.50x	3.4x
Unsecured coverage ratio	Unsecured EBITDA/unsecured interest	Not less than 1.75x	3.4x


Asset investments	Unimproved land, JVs & mortgages/total assets	Not greater than 35%	6.9	%

Senior Notes
Incurrence of total debt	Total debt/total assets	Not greater than 60%	38.9	%
Incurrence of debt secured by any lien	Secured debt/total assets	Not greater than 40%	0.6	%
Maintenance of total unsecured assets	Unencumbered assets/unsecured debt	Not less than 150%	254.3	%
Debt service coverage	EBITDA/interest expense	Not less than 1.5x	3.0x

Other
Net debt to adjusted EBITDA 3	Net debt (debt less cash)/adjusted EBITDA	Not required	6.6x

Net debt to enterprise value 4	Net debt/enterprise value	Not required	43.0	%


LIQUIDITY SOURCES

Cash			$49,941
Unsecured credit facility availability			1,115,000
Consolidated unencumbered assets (gross) 5			13,643,729

2Does not include all financial and non-financial covenants and restrictions that are required by the Company's various debt agreements. Financial measures include the Company's proportionate share of unconsolidated joint ventures, as applicable.

3See page 24 for a reconciliation of adjusted EBITDA.

4Based on the closing price of $19.33 on March 31, 2023 and 384,859,422 shares outstanding including outstanding OP units.

5Annualized first quarter 2023 unencumbered asset NOI was $792.8 million.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 13


Investment Activity
DOLLARS IN THOUSANDS


MOB ACQUISITION ACTIVITY
MARKET	COUNT	MILES TO CAMPUS	ASSOCIATED HEALTH SYSTEM	CLOSING	SQUARE FEET	LEASED %		PURCHASE PRICE 1		% OWNERSHIP
Tampa, FL	1	0.06	BayCare Health	3/10/2023	115,867	98	%	$31,500		100	%


YTD average cap rate 2								6.6	%


DISPOSITIONS TO REPAY ASSET SALE TERM LOAN
LOCATION	COUNT	CLOSING	SQUARE FEET	LEASED %		SALE PRICE
Tampa, FL & Miami, FL 3	2	1/12/2023	224,037	100	%	$93,250
Dallas, TX 4	1	1/30/2023	36,691	100	%	19,210
Total	3		260,728	100	%	$112,460


ADDITIONAL DISPOSITION ACTIVITY
LOCATION	COUNT	CLOSING	SQUARE FEET	LEASED %		SALE PRICE
St. Louis, MO	1	2/10/2023	6,500	100	%	$350
Los Angeles, CA	1	3/23/2023	37,165	100	%	21,000
Los Angeles, CA 5	1	3/30/2023	147,078	99	%	75,000
Total	3		190,743	99	%	$96,350

YTD total disposition activity			451,471			$208,810
YTD average cap rate 6						6.5	%

1Includes joint venture acquisitions at full acquisition price.

2For acquisitions, cap rate represents the forecasted first year NOI divided by purchase price. Does not include fees earned related to the unconsolidated joint venture.

3Includes two properties, sold in two separate transactions to the same buyer on the same date.

4Values and square feet are represented at 100%. The Company retained a 40% ownership interest in the joint venture that purchased this property.

5The Company entered into a mortgage note agreement with the buyer for $45 million.

6For dispositions, cap rate represents the in-place cash NOI divided by sales price.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 14


Re/development Activity
DOLLARS IN THOUSANDS


RE/DEVELOPMENT PROJECTS
MARKET	ASSOCIATED HEALTH SYSTEM		SQUARE FEET		CURRENT LEASED %		BUDGET	COST TO COMPLETE	PROJECT START	ESTIMATED COMPLETION/INITIAL LEASE COMMENCEMENT
Active development
Nashville, TN	Ascension		106,194		50	%	$44,000	$12,962	2Q 2021	3Q 2023
Orlando, FL 1	Advent Health		156,566		74	%	65,000	44,113	1Q 2022	2Q 2024
Raleigh, NC	UNC REX Health		120,694		17	%	52,600	36,948	2Q 2022	4Q 2024
Orlando, FL	Exalt Health		45,000		100	%	25,900	23,146	1Q 2023	1Q 2025
Total development			428,454		55	%	$187,500	$117,169
Projected stabilized yield - 6.5%-8.0%
Estimated stabilization period post completion - 12 - 36 months

Active redevelopment
Dallas, TX	Baylor Scott & White		217,114		65	%	17,500	5,141	4Q 2020	4Q 2023
Washington, DC	Inova Health		259,290		79	%	21,200	18,085	1Q 2022	2Q 2024
Houston, TX	HCA		314,861		62	%	30,000	28,814	2Q 2023	4Q 2025
Total redevelopment			791,265		68	%	$68,700	$52,040
Projected stabilized yield - 9.0%-12.0%
Estimated stabilization period post completion - 12 - 36 months

Total active re/development projects		1,219,719	63	%	$256,200		$169,209


PROSPECTIVE RE/DEVELOPMENT
MARKET	TYPE	SQUARE FEET 2	LEASED % 3		BUDGET	EXPECTED START	PROJECT DESCRIPTION
Fort Worth, TX	Dev	102,000	40	%	$48,000	2H 2023	New on-campus MOB
Houston, TX	Dev	112,000	60	%	59,000	2H 2023	New on-campus MOB
Phoenix, AZ	Dev	100,000	60	%	52,000	2H 2023	New MOB adjacent to campus
Denver, CO	Dev	230,000	100	%	150,000	2H 2024	New surgical facility and MOB adjacent to campus
Chicago, IL	Redev	73,657	55	%	12,500	2H 2023	On-campus MOB redevelopment
Washington, DC	Redev	57,323	72	%	10,078	2H 2023	Off-campus MOB redevelopment
Charlotte, NC	Redev	169,135	53	%	18,700	2H 2023	Two adjacent to campus MOBs redevelopment
Total prospective re/development		844,115	67	%	$350,278

1Investment is a construction loan with purchase rights upon completion.

2If project is identified as development (dev), then amount is projected building size. If project is a redevelopment (redev), then amount is existing building size.

3If project is identified as dev, then amount is expected preleasing percentage. If project is a redev, then amount is equal to current actual leased percentage.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 15


Portfolio 1,2
DOLLARS IN THOUSANDS


MARKETS
		WHOLLY OWNED COUNT	SQUARE FEET									WHOLLY OWNED

MARKET	MSA RANK		MOB		INPATIENT/SURGICAL		OFFICE		WHOLLY OWNED		JOINT VENTURES	TOTAL	% OF NOI		CUMULATIVE % OF NOI
Dallas, TX	4	45	3,308,315		307,783		199,800		3,815,898		226,076	4,041,974	9.7	%	9.7	%
Seattle, WA	15	29	1,592,501						1,592,501			1,592,501	5.9	%	15.6	%
Houston, TX	5	34	2,403,175		150,723		57,170		2,611,068			2,611,068	4.6	%	20.2	%
Boston, MA	11	18	964,945						964,945			964,945	4.5	%	24.7	%
Charlotte, NC	22	32	1,790,415						1,790,415			1,790,415	4.2	%	28.9	%
Denver, CO	19	33	1,780,819				93,869		1,874,688		116,616	1,991,304	4.2	%	33.1	%
Los Angeles, CA	2	21	1,034,336		63,000		104,377		1,201,713		702,453	1,904,166	4.2	%	37.3	%
Atlanta, GA	9	28	1,478,336						1,478,336			1,478,336	3.8	%	41.1	%
Miami, FL	7	22	1,307,086		133,500				1,440,586			1,440,586	3.6	%	44.7	%
Nashville, TN	36	12	1,135,678				108,691		1,244,369			1,244,369	2.8	%	47.5	%
Phoenix, AZ	10	35	1,512,304						1,512,304			1,512,304	2.7	%	50.2	%
Raleigh, NC	42	27	1,103,648						1,103,648			1,103,648	2.7	%	52.9	%
Austin, TX	29	13	863,700						863,700			863,700	2.4	%	55.3	%
Tampa, FL	18	20	1,010,924						1,010,924			1,010,924	2.4	%	57.7	%
Indianapolis, IN	33	36	1,080,947		61,398				1,142,345		273,479	1,415,824	2.2	%	59.9	%
Chicago, IL	3	7	712,757						712,757			712,757	2.2	%	62.1	%
Hartford, CT	48	30	768,947						768,947			768,947	2.1	%	64.2	%
New York, NY	1	14	614,522						614,522			614,522	1.9	%	66.1	%
Orlando, FL	23	8	359,477		186,998				546,475			546,475	1.9	%	68.0	%
San Francisco, CA	12	6	452,666						452,666		110,865	563,531	1.8	%	69.8	%
Other (51 markets)		211	11,254,119		629,392		1,228,363		13,111,874		519,911	13,631,785	30.2	%	100.0	%
Total		681	36,529,617		1,532,794		1,792,270		39,854,681		1,949,400	41,804,081	100.0	%
Number of properties			651		20		10		681		34	715
% of square feet			91.7	%	3.8	%	4.5	%	100.0	%
% multi-tenant			85.6	%	—	%	61.7	%	81.2	%
Investment			$12,469,848		$653,527		$504,985		$13,628,360
Quarterly cash NOI 1			$182,189		$12,727		$7,427		$202,343
% of cash NOI			90.0	%	6.3	%	3.7	%	100.0	%


BY BUILDING TYPE
	WHOLLY OWNED
	MULTI-TENANT		SINGLE-TENANT		SUBTOTAL		JOINT VENTURE		TOTAL
Number of properties	545		136		681		34		715
Square feet	32,365,920		7,488,761		39,854,681		1,949,400		41,804,081
% of square feet	77.4	%	17.9	%	95.3	%	4.7	%	100.0	%
Investment 1	$10,523,533		$3,104,827		$13,628,360		$358,239		$13,986,599
Quarterly cash NOI 1	$152,150		$50,193		$202,343		$4,192		$206,535
% of cash NOI	73.7	%	24.3	%	98.0	%	2.0	%	100.0	%

1Gross investment and quarterly cash NOI are reflected at the Company's ownership percentage.

2Excludes assets held for sale, land held for development, construction in progress and corporate property.

3The Company's weighted average ownership percentage in its joint ventures was approximately 44%.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 16


Health Systems 1


MOB PORTFOLIO
			BUILDING SQUARE FEET			# OF BLDGS			LEASED BY HEALTH SYSTEM	% OF LEASED SF		# OF LEASES

HEALTH SYSTEM	SYSTEM RANK 2	CREDIT RATING	ON/ADJACENT 3	OFF-CAMPUS AFFILIATED 4	TOTAL		% OF NOI
HCA	1	BBB-/Baa3	2,271,013	832,672	3,103,685	47	8.4	%	798,223	2.5	%	137
CommonSpirit	4	A-/Baa1	1,906,957	558,765	2,465,722	42	6.8	%	898,922	2.8	%	161
Baylor Scott & White	21	AA-/Aa3	2,570,180	66,376	2,636,556	29	6.2	%	1,246,085	3.9	%	193
Ascension Health	3	AA+/Aa2	2,156,369	97,551	2,253,920	24	5.5	%	929,797	2.9	%	146
Tenet Healthcare Corporation	6	B+/B1	1,526,040	414,278	1,940,318	35	4.2	%	423,711	1.3	%	90
Atrium Health	16	AA-/Aa3	682,654	348,792	1,031,446	18	3.2	%	912,781	2.9	%	82
AdventHealth	11	AA/Aa2	797,587	118,585	916,172	14	2.6	%	412,920	1.3	%	82
Wellstar Health System	75	A+/A2	896,773	23,088	919,861	18	2.5	%	580,281	1.8	%	81
UW Medicine (Seattle)	91	AA+/Aaa	461,363	169,709	631,072	10	2.5	%	292,712	0.9	%	31
Community Health Systems	8	CCC+/Caa1	1,024,527	—	1,024,527	26	2.5	%	384,850	1.2	%	50
Trinity Health	7	AA-/Aa3	633,711	153,938	787,649	11	2.1	%	493,431	1.6	%	67
Baptist Memorial Health Care	89	A-2/--	544,122	252,414	796,536	10	1.9	%	436,497	1.4	%	59
Providence St. Joseph Health	5	A/A1	330,287	31,601	361,888	8	1.6	%	111,557	0.4	%	24
Cedars-Sinai Health Systems	51	AA-/Aa3	199,701	90,607	290,308	5	1.5	%	52,891	0.2	%	19
Hawaii Pacific Health	181	--/A1	173,502	124,925	298,427	3	1.4	%	98,398	0.3	%	39
Banner Health	24	AA-/--	749,075	31,039	780,114	24	1.3	%	147,178	0.5	%	38
Overlake Health System	291	A/Baa1	230,710	—	230,710	3	1.2	%	73,676	0.2	%	8
WakeMed	185	--/A2	368,046	101,597	469,643	12	1.2	%	134,300	0.4	%	18
MedStar Health	45	A/A2	326,129	—	326,129	4	1.1	%	203,477	0.6	%	66
Bon Secours Health System	22	A+/A1	405,945	—	405,945	6	1.2	%	239,167	0.8	%	50
Boston Medical Center Corp	204	BBB/Baa2	161,254	—	161,254	1	1.0	%	86,947	0.3	%	9
Other (64 credit rated)			6,867,291	2,734,526	9,601,817	176	24.8	%	4,902,626	15.4	%
Subtotal - credit rated 5			25,283,236	6,150,463	31,433,699	526	84.7	%	13,860,427	43.6	%
Other non-credit rated 6			968,852	556,355	1,525,207	33	5.2	%	860,883	2.7	%
Off-campus non-affiliated 7			—	3,570,711	3,570,711	92	10.1	%	—	—	%
Wholly-owned			26,252,088	10,277,529	36,529,617	651	100.0	%	14,721,310	46.3	%
Joint ventures			1,143,456	579,868	1,723,324
Total			27,395,544	10,857,397	38,252,941

1Excludes construction in progress and assets classified as held for sale.

2Ranked by revenue based on Modern Healthcare's Healthcare Systems Financials Database.

3The Company defines an adjacent property as being no more than 0.25 miles from a hospital campus.

4Includes off-campus buildings where health systems lease 20% or more of the property and/or are located within 2 miles from a hospital campus.

5Based on square footage, 77.1% is associated and 40.8% is leased by an investment-grade rated healthcare provider.

6Includes 33 properties associated with a hospital system that is not credit rated.

7Includes off-campus buildings that are not 20% or more leased by a health system and are more than two miles from a hospital campus.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 17


MOB Proximity to Hospital 1,2


MOB BY LOCATION

	# OF PROPERTIES	SQUARE FEET	TOTAL		% GROUND LEASED
On campus	233	18,060,317	47.2	%	37.3	%
Adjacent to campus 3	202	9,335,227	24.4	%	4.0	%
Total on/adjacent	435	27,395,544	71.6	%	41.3	%
Off campus - affiliated 4	148	7,153,325	18.7	%	3.4	%
Off campus	95	3,704,072	9.7	%	1.2	%
	678	38,252,941	100.0	%	45.9	%
Wholly-owned	651	36,529,617
Joint ventures	27	1,723,324


MOB BY CLUSTER 5

	TOTAL				HOSPITAL CENTRIC 6
	# OF PROPERTIES	SQUARE FEET	% OF MOB SQUARE FEET		# OF PROPERTIES	SQUARE FEET	% OF MOB SQUARE FEET
Clustered	481	26,403,720	69.0	%	397	23,014,627	71.6	%
Non-clustered	197	11,849,221	31.0	%	135	9,126,871	28.4	%
Total	678	38,252,941	100.0	%	532	32,141,498	100.0	%

1Includes joint venture properties and excludes construction in progress and assets classified as held for sale.

2Proximity to hospital campus includes acute care hospitals with inpatient beds. The Company does not consider inpatient rehab hospitals (IRFs), skilled nursing facilities (SNFs) or long-term acute care hospitals (LTACHs) to be hospital campuses for distance calculations.

3The Company defines an adjacent property as being no more than 0.25 miles from a hospital campus.

4Includes off-campus buildings where health systems lease 20% or more of the property and/or are located within 2 miles from a hospital campus.

5A cluster is defined as at least two properties within a geographic radius of two miles. The Company believes clusters provide operational efficiencies and greater local leasing knowledge that accelerate NOI growth.

6Includes buildings that are located within two miles of a hospital campus.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 18


Lease Maturity & Occupancy1


LEASE MATURITY SCHEDULE
		SQUARE FEET						% OF LEASED TOTAL SQUARE FEET
	# OF LEASES	MULTI-TENANT 2		SINGLE-TENANT		TOTAL
2023	1,188	3,299,461		240,764		3,540,225		10.2	%
2024	1,278	4,375,445		910,510		5,285,955		15.2	%
2025	1,072	3,540,687		992,940		4,533,627		13.0	%
2026	880	3,285,338		484,579		3,769,917		10.8	%
2027	842	3,270,044		999,428		4,269,472		12.2	%
2028	553	2,176,872		662,687		2,839,559		8.1	%
2029	391	1,730,690		715,371		2,446,061		7.0	%
2030	319	1,615,408		705,833		2,321,241		6.7	%
2031	236	981,078		242,739		1,223,817		3.5	%
2032	285	1,787,697		334,424		2,122,121		6.1	%
Thereafter	265	1,534,647		985,638		2,520,285		7.2	%
Total occupied	7,309	27,597,367		7,274,913		34,872,280		87.5	%
Total building		32,365,920		7,488,761		39,854,681
Occupancy		85.3	%	97.1	%	87.5	%
WALTR (months) 3		49.4		73.3		54.4
WALT (months) 3		95.2		143.4		105.3


PORTFOLIO OCCUPANCY AND ABSORPTION
			OCCUPANCY %						ABSORPTION (square feet in thousands)
	# OF PROPERTIES	SQUARE FEET	1Q 2023		4Q 2022		1Q 2022		SEQUENTIAL	Y-O-Y
Same store multi-tenant	468	27,895,714	86.5	%	86.5	%	86.1	%	—	145
Same store single-tenant	120	6,575,340	99.5	%	99.5	%	99.5	%	5	5
Total same store properties	588	34,471,054	89.0	%	89.0	%	88.6	%	5	150
Acquisitions	67	3,182,795	88.1	%	87.3	%	87.4	%	17	(20)
Development completions	6	355,200	84.2	%	84.2	%	78.9	%	—	37
Re/development	12	1,203,543	59.4	%	61.0	%	68.2	%	(19)	(105)
Planned dispositions	8	642,089	58.9	%	65.8	%	74.0	%	(43)	(97)
Wholly-owned	681	39,854,681	87.5	%	87.6	%	87.6	%	(40)	(35)
Joint ventures	34	1,949,400	87.0	%	85.4	%	88.3	%	27	15
Total	715	41,804,081	87.5	%	87.5	%	87.6	%	(13)	(20)
Same store leased %			90.1	%
Total leased %			88.6	%

1Excludes joint ventures, land held for development, construction in progress, corporate property and assets classified as held for sale, unless noted otherwise.

2The average lease size in the multi-tenant portfolio is 3,955 square feet.

3WALTR = weighted average lease term remaining; WALT = weighted average lease term.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 19


Leasing Statistics


SAME STORE 1Q 2023 RENEWALS 1
	Q1 2023		TTM

Cash leasing spreads	3.1	%	3.1	%

Cash leasing spreads distribution
< 0% spread	7.4	%	8.3	%
0-3% spread	21.9	%	20.8	%
3-4% spread	51.7	%	51.3	%
> 4% spread	19.0	%	19.6	%
Total	100.0	%	100.0	%

Tenant retention rate	82.3	%	79.7	%


AVERAGE IN-PLACE CONTRACTUAL INCREASES 2
	MULTI-TENANT				SINGLE-TENANT				TOTAL
	% INCREASE		% OF BASE RENT		% INCREASE		% OF BASE RENT		% INCREASE		% OF BASE RENT
Same store 1	2.80	%	65.3	%	2.35	%	18.2	%	2.70	%	83.5	%
Acquisitions	2.55	%	6.6	%	2.48	%	1.2	%	2.54	%	7.8	%
Other 3	2.68	%	6.6	%	1.47	%	2.1	%	2.38	%	8.7	%
Total	2.77	%	78.5	%	2.27	%	21.5	%	2.66	%	100.0	%
Escalator type
Fixed	2.72	%	96.4	%	2.27	%	90.5	%	2.63	%	95.1	%
CPI	4.05	%	3.6	%	2.28	%	9.5	%	3.30	%	4.9	%


TYPE AND OWNERSHIP STRUCTURE 1
	MULTI-TENANT		SINGLE-TENANT		TOTAL
Tenant type
Hospital	44.6	%	72.3	%	50.2	%
Physician and other	55.4	%	27.7	%	49.8	%

Lease structure
Gross	9.2	%	3.9	%	8.1	%
Modified gross	31.7	%	10.8	%	27.5	%
Net	59.1	%	64.6	%	60.2	%
Absolute net 4	—	%	20.6	%	4.2	%

Ownership type
Ground lease	44.8	%	37.6	%	43.6	%
Fee simple	55.2	%	62.4	%	56.4	%


# OF LEASES BY SIZE 5
LEASED SQUARE FEET	# OF LEASES	WALT	WALTR
0 - 2,500	3,746	71.1	36.3
2,501 - 5,000	1,812	83.4	42.0
5,001 - 7,500	648	95.0	47.8
7,501 - 10,000	362	101.6	54.1
10,001 +	741	125.8	65.5
Total Leases	7,309	105.3	54.4

1Excludes recently acquired or disposed properties, construction in progress, land held for development, corporate property, planned dispositions and assets classified as held for sale.

2Excludes leases with lease terms of one year or less.

3Includes redevelopment properties, development completion, and joint ventures.

4Tenant is typically responsible for operating expenses and capital obligations.

5Excludes joint ventures, land held for development, construction in progress, corporate property and assets classified as held for sale.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 20


NOI Performance 1, 2
DOLLARS IN THOUSANDS, EXCEPT PER SQUARE FOOT DATA
REFLECTS COMBINED COMPANY RESULTS FOR ALL PERIODS


SAME STORE CASH NOI
	TTM 2023		1Q 2023		4Q 2022		3Q 2022		2Q 2022		TTM 2022		1Q 2022		4Q 2021		3Q 2021		2Q 2021
















Base revenue	$845,543		$213,646		$212,615		$211,613		$207,669		$821,681		$208,035		$205,810		$204,590		$203,246
Operating expense recoveries	253,255		65,280		60,742		64,558		62,675		238,779		63,444		58,307		58,742		58,286
Revenues	$1,098,798		$278,926		$273,357		$276,171		$270,344		$1,060,460		$271,479		$264,117		$263,332		$261,532
Expenses	390,134		100,366		95,200		100,476		94,092		371,692		97,830		90,777		93,609		89,476
Cash NOI	$708,664		$178,560		$178,157		$175,695		$176,252		$688,768		$173,649		$173,340		$169,723		$172,056
Revenue per occ SF 2	$35.88		$36.38		$35.68		$36.07		$35.36		$34.79		$35.59		$34.67		$34.61		$34.33
Margin	64.5	%	64.0	%	65.2	%	63.6	%	65.2	%	64.9	%	64.0	%	65.6	%	64.5	%	65.8	%
Average occupancy	88.8	%	89.0	%	88.9	%	88.9	%	88.7	%	88.4	%	88.5	%	88.4	%	88.3	%	88.4	%
Period end occupancy	89.0	%	89.0	%	89.0	%	88.8	%	88.9	%	88.6	%	88.6	%	88.5	%	88.3	%	88.3	%
Number of properties	588		588		588		588		588		588		588		588		588		588


SAME STORE GROWTH
	YEAR-OVER-YEAR
	TTM 2023		1Q 2023		4Q 2022		3Q 2022		2Q 2022









Revenue per occ SF 3	3.1	%	2.2	%	2.9	%	4.2	%	3.0	%
Avg occupancy (bps)	+40		+50		+50		+60		+30
Revenues	3.6	%	2.7	%	3.5	%	4.9	%	3.4	%
Base revenue	2.9	%	2.7	%	3.3	%	3.4	%	2.2	%
Exp recoveries	6.1	%	2.9	%	4.2	%	9.9	%	7.5	%
Expenses	5.0	%	2.6	%	4.9	%	7.3	%	5.2	%
Cash NOI	2.9	%	2.8	%	2.8	%	3.5	%	2.4	%


TOTAL CASH NOI
	1Q 2023	1Q 2022	% CHANGE		TTM 2023	TTM 2022	% CHANGE
Same store cash NOI	178,560	173,649	2.8	%	708,664	688,768	2.9	%
Same store joint ventures	1,946	1,955	(0.5	%)	7,722	7,182	7.5	%
	180,506	175,604	2.8	%	716,386	695,950	2.9	%
Acquisitions/development completions	18,174	12,285	47.9	%	69,745	26,711	161.1	%
Dispositions/assets held for sale/other	5,526	21,495	(74.3	%)	48,782	94,644	(48.5	%)
Joint venture property cash NOI	2,823	1,184	138.4	%	9,130	2,735	233.8	%
Redevelopment	2,445	3,534	(30.8	%)	11,026	16,267	(32.2	%)
Cash NOI	$209,474	$214,102	(2.2	%)	$855,069	$836,307	2.2	%

1Beginning with the third quarter of 2022, properties acquired through the merger with HTA were considered under each element of our same store criterion, except for the requirement that the property be owned for the full comparative period. If the property was owned by HTA for the full comparative period and each other criterion were met, the property was included in our same store pool.

2Excludes recently acquired or disposed properties, development completions, construction in progress, land held for development, corporate property, reposition properties, planned dispositions and assets classified as held for sale.

3Revenue per occ SF is calculated by dividing revenue by the average of the occupied SF for the period provided. Quarterly revenue per occ SF is annualized.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 21


NOI Reconciliations
DOLLARS IN THOUSANDS


BOTTOM UP RECONCILIATION
	1Q 2023	4Q 2022	3Q 2022 1	2Q 2022		1Q 2022	4Q 2021	3Q 2021	2Q 2021
Net income (loss)	($87,125)	($35,764)	$28,304	$6,130		$42,227	$21,607	($2,066)	$23,096


Other income (expense)	94,407	46,772	(89,477)	7,479		(29,293)	(468)	23,000	(2,223)
General and administrative expense	14,935	14,417	16,741	10,540		11,036	8,901	8,207	8,545
Depreciation and amortization expense	184,479	185,275	158,117	55,731		54,041	51,810	50,999	49,826
Other expenses 2	7,940	13,580	82,659	11,034		9,929	3,850	3,193	2,840
Straight-line rent expense	1,537	1,358	1,260	378		378	382	380	369
Straight-line rent revenue	(9,782)	(11,231)	(8,975)	(1,705)		(1,587)	(1,227)	(1,550)	(1,563)
Other revenue 3	(1,686)	(7,330)	(5,242)	(1,961)		(2,044)	(2,134)	(2,043)	(2,075)
Joint venture property cash NOI	4,769	4,579	3,877	2,551		2,052	1,331	1,210	1,035
Cash NOI	$209,474	$211,656	$187,264	$90,177		$86,739	$84,052	$81,330	$79,850
Pre-merger Legacy HTA NOI 4	—	—	27,114	129,384		127,363	127,253	124,807	124,913
Cash NOI including pre-merger Legacy HTA NOI	$209,474	$211,656	$214,378	$219,561		$214,102	$211,305	$206,137	$204,763
Acquisitions/development completions	(18,174)	(18,130)	(17,248)	(16,193)		(12,285)	(8,501)	(4,796)	(1,129)
Dispositions/assets held for sale/other	(5,526)	(7,792)	(14,706)	(20,758)		(21,495)	(23,504)	(24,620)	(25,025)
Joint venture property cash NOI	(4,769)	(4,579)	(3,877)	(3,627)		(3,139)	(2,404)	(2,210)	(2,164)
Redevelopment	(2,445)	(2,998)	(2,852)	(2,731)	-3095	(3,534)	(3,556)	(4,788)	(4,389)
Same store cash NOI	$178,560	$178,157	$175,695	$176,252		$173,649	$173,340	$169,723	$172,056

TOP DOWN RECONCILIATION
	1Q 2023	4Q 2022	3Q 2022	2Q 2022		1Q 2022	4Q 2021	3Q 2021	2Q 2021
Rental income before rent concessions	$328,115	$332,652	$301,692	$142,073		$139,775	$132,853	$132,971	$129,609
Rent concessions	(4,022)	(3,253)	(2,761)	(1,441)		(1,286)	(1,139)	(1,225)	(1,123)
Rental income	324,093	329,399	298,931	140,632		138,489	131,714	131,746	128,486
Parking income	2,391	2,413	2,428	1,919		1,753	2,134	2,187	1,880
Interest from financing receivable, net	2,227	2,284	2,034	1,957		1,930	1,766	1,917	510
Exclude straight-line rent revenue	(9,782)	(11,231)	(8,975)	(1,705)		(1,587)	(1,227)	(1,550)	(1,563)
Exclude other non-cash revenue 5	3,594	(3,059)	(2,280)	(1,142)		(1,322)	(1,325)	(1,261)	(1,528)
Cash revenue	322,523	319,806	292,138	141,661		139,263	133,062	133,039	127,785
Property operating expense	(122,040)	(117,009)	(112,473)	(57,010)		(57,464)	(53,032)	(55,518)	(51,509)
Exclude non-cash expenses 6	4,336	3,764	4,034	2,975		2,888	2,691	2,599	2,539
Non-controlling interest	(114)	516	(312)	—		—	—	—	—
Joint venture property cash NOI	4,769	4,579	3,877	2,551		2,052	1,331	1,210	1,035
Cash NOI	$209,474	$211,656	$187,264	$90,177		$86,739	$84,052	$81,330	$79,850
Pre-merger Legacy HTA NOI 4	—	—	27,114	129,384		127,363	127,253	124,807	124,913
Cash NOI including pre-merger Legacy HTA NOI	$209,474	$211,656	$214,378	$219,561		$214,102	$211,305	$206,137	$204,763
Acquisitions/development completions	(18,174)	(18,130)	(17,248)	(16,193)		(12,285)	(8,501)	(4,796)	(1,129)
Dispositions/assets held for sale/other	(5,526)	(7,792)	(14,706)	(20,758)		(21,495)	(23,504)	(24,620)	(25,025)
Joint venture property cash NOI	(4,769)	(4,579)	(3,877)	(3,627)		(3,139)	(2,404)	(2,210)	(2,164)
Redevelopment	(2,445)	(2,998)	(2,852)	(2,731)		(3,534)	(3,556)	(4,788)	(4,389)
Same store cash NOI	$178,560	$178,157	$175,695	$176,252		$173,649	$173,340	$169,723	$172,056

1Represents a full quarter on a combined company basis.

2Includes acquisition and pursuit costs, merger-related costs, rent reserves, above and below market ground lease intangible amortization, leasing commission amortization, non-cash adjustments for financing receivables, and ground lease straight-line rent.

3Includes management fee income, interest, above and below market lease intangible amortization, lease inducement amortization, lease termination fees, deferred financing cost amortization and principle related to investment in financing receivable, and tenant improvement overage amortization.

4Amounts include cash NOI from HTA properties, which were not included in our financial statements prior to July 20, 2022.

5Includes above and below market lease intangibles, lease inducements, lease termination fees, deferred financing cost amortization, financing receivable adjustments, and TI amortization.

6Includes above and below market ground lease intangible amortization, leasing commission amortization, and ground lease straight-line rent.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 22


NOI Reconciliations
DOLLARS IN THOUSANDS


RECONCILIATION OF NOI TO FULL QUARTER FFO AND NORMALIZED FFO
	1Q 2023	4Q 2022
Cash NOI	$209,474	$211,656
General and administrative expense	(14,935)	(14,417)
Straight-line rent	9,782	11,231
Interest and other income (expense), net	547	(1,168)
Management fees and other income	2,227	2,023
Note receivable interest income	1,987	1,943
Other non-cash revenue 1	(2,526)	3,059
Other non-cash expenses 2	(4,336)	(3,764)
Non-real estate impairment	(5,196)	—

Unconsolidated JV adjustments	(708)	(462)
Debt Covenant EBITDA	$196,316	$210,101
Interest expense	(63,759)	(64,443)
Loss on extinguishment of debt	—	119
Acquisition and pursuit costs	(287)	(92)
Merger-related costs	(4,855)	(10,777)
Leasing commission amortization 3	3,002	2,706
Non-real estate depreciation and amortization	(1,372)	(1,323)
Non controlling interest	(1,067)	(382)
Unconsolidated JV adjustments	—	(8)
FFO	$127,978	$135,901
Acquisition and pursuit costs	287	92
Merger-related costs	4,855	10,777
Lease intangible amortization	146	137
Significant non-recurring legal fees/forfeited earnest money received	—	194
Debt financing costs	—	625
Merger-related fair value adjustment	10,864	11,979
Allowance for credit losses	8,599	—
Unconsolidated JV normalizing items	117	96
Normalized FFO	$152,846	$159,801

1Includes above and below market lease intangibles, interest income related to sales-type leases, lease inducements, lease termination fees, deferred financing cost amortization, and principle related to investment in financing receivable and TI amortization.

2Includes above and below market ground lease intangible amortization, leasing commission amortization, and ground lease straight-line rent.

3Leasing commission amortization is included in the real estate depreciation and amortization add-back for FFO.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 23


EBITDA Reconciliations
DOLLARS IN THOUSANDS


RECONCILIATION OF EBITDA

	1Q 2023	4Q 2022
Net income	($87,125)	($35,764)
Interest expense	63,759	64,443
Depreciation and amortization	184,479	185,275
Unconsolidated JV depreciation and amortization	4,841	4,020
EBITDA	$165,954	$217,974
Leasing commission amortization	3,002	2,706
Gain on sales of real estate properties	(1,007)	(73,083)
Impairments on real estate properties	26,227	54,452
EBITDAre 1	$194,176	$202,049
EBITDA	$165,954	$217,974
Acquisition and pursuit costs	287	92
Merger-related costs	4,855	10,777
Gain on sales of real estate properties	(1,007)	(73,083)
Impairments on real estate assets	26,227	54,452
Loss on extinguishment of debt	—	(119)
Unconsolidated JV adjustments	—	8
Debt Covenant EBITDA	$196,316	$210,101
Leasing commission amortization	3,002	2,706
Lease intangible amortization	147	137
Acquisition/disposition timing impact 2	(945)	(1,704)
Stock based compensation	3,745	3,573

Allowance for credit losses 3	8,599	—
Rent reserves, net	1,371	(100)
Unconsolidated JV adjustments	117	96
Adjusted EBITDA	$212,352	$214,809

1Earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") is an operating performance measure adopted by NAREIT. NAREIT defines EBITDAre equal to “net income (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, impairments and minus gains on the disposition of depreciated property.”

2Adjusted to reflect quarterly EBITDA from properties acquired or disposed in the quarter.

3Includes a $5.2 million credit allowance for a mezzanine loan included in "Impairment of real estate and credit loss reserves" on the Statement of Income and $3.4 million reserve included in “Rental Income” on the Statement of Income for previously deferred rent and straight line rent for three skilled nursing facilities.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 24


Components of Net Asset Value
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


CASH NOI BY PROPERTY TYPE
	1Q 2023
ASSET TYPE	SAME STORE 1	ACQ./DEV. COMPLETIONS 2	JOINT VENTURE	REDEVELOPMENT	TIMING/OTHER ADJUSTMENTS 3	ADJUSTED CASH NOI	ANNUALIZED ADJUSTED NOI
MOB/Outpatient	$160,733	$18,174	$3,944	$2,445	$2,347	$187,643	$750,572
Inpatient/Surgical	10,425	—	825	—	—	11,250	45,000
Office	7,402	—	—	—	—	7,402	29,608
Total Cash NOI	$178,560	$18,174	$4,769	$2,445	$2,347	$206,295	$825,180


DEVELOPMENT PROPERTIES		TOTAL SHARES OUTSTANDING
Land held for development	$69,575	As of March 31, 2023 8		384,859,422
Re/development budget	256,200
	$325,775	IMPLIED CAP RATE
			STOCK PRICE	IMPLIED CAP RATE
		As of March 31, 2023 8	$19.33	6.7	%
OTHER ASSETS
Assets held for sale 4	$3,300	1Q 2023 High	$21.95	6.2	%
Planned dispositions	165,243	1Q 2023 Low	$18.11	7.0	%
Unstabilized properties 5	286,940
Cash and other assets 6	377,750
	$833,233

DEBT
Unsecured credit facility	$385,000

Unsecured term loans	1,500,000
Senior notes	3,699,500
Mortgage notes payable	83,455
Company share of joint venture debt	27,640
Remaining re/development funding	169,209
Other liabilities 7	187,101
	$6,051,905

1See NOI Performance schedule on page 21 for details on same store NOI.

2Adjusted to reflect quarterly NOI from properties acquired or stabilized re/developments completed during the full eight quarter period that are not included in same store NOI.

3Timing adjustments include adjustments to reflect full quarterly stabilized NOI of current quarter acquisitions of $0.5 million, re/development completion adjustments of $0.3 million, and management fee income of $2.0 million. This is partially offset by $0.5 million of positive NOI for unstabilized properties, which are shown in other assets.

4Assets held for sale include three real estate properties and one land parcel that are excluded from same store NOI and reflect the expected sale price or net book value.

5Includes 34 properties at their gross book value. These properties were comprised of 1.3 million square feet that generated positive NOI of $0.5 million.

6Includes cash of $49.9 million, prepaid assets of $88.2 million, notes receivable of $147.3 million, accounts receivable of $51.5 million, prepaid ground leases of $18.5 million, and other investments of $6.0 million. In addition, includes the Company's occupied portion of its corporate headquarters in Nashville and Charleston of $16.4 million.

7Includes only liabilities that are expected to reduce future cash or NOI and that are currently producing non-cash benefits to NOI. Included are accounts payable and accrued liabilities of $155.2 million, security deposits of $29.0 million, and deferred operating expense reimbursements of $2.9 million.

8Total shares outstanding includes OP units.



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 25


Components of Expected FFO
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA



	EXPECTED 2023				ACTUAL
	LOW		HIGH		Q1 2023		TTM
SAME STORE
Multi-tenant absorption (bps)	50		100		40

Revenue per occupied square foot	$36.25		$37.00		$36.38		$35.88
Cash NOI margin	64.0	%	65.0	%	64.0	%	64.5	%
Cash leasing spreads	3.0	%	4.0	%	3.1	%	3.1	%
Lease retention rate	75.0	%	90.0	%	82.3	%	79.7	%
Cash NOI growth	2.5	%	3.5	%	2.8	%	2.9	%

NON-SAME STORE
Normalized G&A	57,000		60,000		14,935
Straight-line rent, net	32,000		36,000		8,246

Funding activity
Acquisitions	$75,000		$125,000		31,500
Dispositions to repay asset sale term loan	112,460		112,460		112,460
Additional dispositions	225,000		350,000		96,350
Re/development	100,000		125,000		16,928
1st generation TI and acq. capex	45,000		85,000		11,870
Maintenance capex
2nd generation TI	50,000		60,000		8,882
Leasing commissions paid	30,000		35,000		7,013
Capital expenditures	60,000		65,000		8,946
Total maintenance capex	140,000		160,000		24,841

Cash yield
Acquisitions	6.0	%	6.5	%	6.6	%
Dispositions	6.0	%	7.0	%	6.5	%
Development (stabilized)	6.5	%	8.0	%
Redevelopment (stabilized)	9.0	%	12.0	%


Net debt to adjusted EBITDA	6.0x		6.5x		6.6x

Net income (loss) attributable to common stockholders per share	$(0.75)		$(1.00)		$(0.23)
Normalized FFO per share	$1.60		$1.65		$0.40



HEALTHCARE REALTY			1Q 2023 SUPPLEMENTAL INFORMATION 26