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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2018 (April 30, 2018)
HEALTHCARE TRUST OF AMERICA, INC.
HEALTHCARE TRUST OF AMERICA HOLDINGS, LP
(Exact name of registrant as specified in its charter)

Maryland
 
001-35568
 
20-4738467
Delaware
 
333-190916
 
20-4738347
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
16435 N. Scottsdale Road, Suite 320
 
 
 
 
Scottsdale, Arizona
 
 
 
85254
(Address of principal executive offices)
 
 
 
(Zip Code)
(480) 998-3478
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):
Healthcare Trust of America, Inc.
Emerging growth company o
Healthcare Trust of America Holdings, LP
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Healthcare Trust of America, Inc.
o
 
 
Healthcare Trust of America Holdings, LP
o
 
 






Item 2.02
Results of Operations and Financial Condition.
On April 30, 2018, Healthcare Trust of America, Inc. (NYSE: HTA) ( “HTA”) issued a press release announcing its financial results for the quarter ended March 31, 2018. HTA also commenced distributing its Supplemental Information for the quarter ended March 31, 2018. The press release and Supplemental Information are attached as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference. The press release and Supplemental Information are also available on HTA’s website, free of charge, at www.htareit.com.
The information included in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is deemed “furnished” and not filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
99.1
99.2






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
Healthcare Trust of America, Inc. 
 
Date: April 30, 2018
By:
/s/ Scott D. Peters  
 
 
 
Name: Scott D. Peters
 
 
 
Title: Chief Executive Officer, President and Chairman
 

 
Healthcare Trust of America Holdings, LP
 
 
 
 
 
 
By:
Healthcare Trust of America, Inc.,
 
 
 
its General Partner
 
 
 
 
 
Date: April 30, 2018
By:
/s/ Scott D. Peters  
 
 
 
Name: Scott D. Peters
 
 
 
Title: Chief Executive Officer, President and Chairman
 



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


Exhibit 99.1
393247298_bestinclasslogo.jpg
 
PRESS RELEASE
 
Financial Contact:
 
Robert A. Milligan
 
Chief Financial Officer
 
480.998.3478
HEALTHCARE TRUST OF AMERICA, INC. REPORTS FIRST QUARTER 2018 EARNINGS
Normalized FFO of $0.41 Per Diluted Share
Same-Property Cash NOI Growth of 2.3%, 3.2% Excluding Forest Park Properties
New Development Announced
Scottsdale, Arizona (April 30, 2018) - Healthcare Trust of America, Inc. (NYSE: HTA) (“HTA”) announced results for the three months ended March 31, 2018.
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.





Financial Results - First Quarter 2018
Rental Income
Rental income increased 41.6% to $175.6 million for the three months ended March 31, 2018, compared to $124.0 million for the three months ended March 31, 2017.
Net Income
Net income decreased (28.5)% to $10.0 million for the three months ended March 31, 2018, compared to $14.0 million for the three months ended March 31, 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.
FFO
FFO, as defined by NAREIT, was $0.40 per diluted share, or $84.6 million, for the three months ended March 31, 2018, compared to $0.41 per diluted share, or $60.2 million, for the three months ended March 31, 2017.
Normalized FFO
Normalized FFO was $0.41 per diluted share, or $85.0 million, for the three months ended March 31, 2018, which remained stable compared to the three months ended March 31, 2017.
Normalized FAD
Normalized FAD increased 43.6% to $75.9 million, for the three months ended March 31, 2018, compared to $52.9 million for the three months ended March 31, 2017.
NOI
NOI increased 40.2% to $119.6 million for the three months ended March 31, 2018, compared to $85.3 million for the three months ended March 31, 2017.
Same-Property Cash NOI
Same-Property Cash NOI increased $1.8 million, or 2.3%, to $81.0 million, for the three months ended March 31, 2018, compared to $79.2 million for the three months ended March 31, 2017. Excluding the MOBs located on its Forest Park campuses, Same-Property Cash NOI growth would have been 3.2%.
General and Administrative Expenses
General and administrative expenses were $8.8 million for the three months ended March 31, 2018, compared to $8.4 million for the three months ended March 31, 2017.
Interest Expense
Total interest expense was $26.3 million for the three months ended March 31, 2018, compared to $16.4 million for the three months ended March 31, 2017.
Investment Activity
During the three months ended March 31, 2018, 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.
Tenant Retention
Tenant retention for the Same-Property portfolio was 81% by GLA for the quarter, which included approximately 609,000 square feet of GLA of expiring leases.






About Healthcare Trust of America, Inc.
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.
Forward-Looking Language
This press release contains certain forward-looking statements with respect to HTA. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, plans or predictions of the future, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially and in adverse ways from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, without limitation, the following: changes in economic conditions generally and the real estate market specifically; legislative and regulatory changes, including changes to laws governing the taxation of REITs and changes to laws governing the healthcare industry; the availability of capital; changes in interest rates; competition in the real estate industry; the supply and demand for operating properties in our proposed market areas; changes in accounting principles generally accepted in the United States of America; policies and guidelines applicable to REITs; the availability of properties to acquire; and the availability of financing. Additional information concerning us and our business, including additional factors that could materially and adversely affect our financial results, include, without limitation, the risks described under Part I, Item 1A - Risk Factors, in our 2017 Annual Report on Form 10-K and in our filings with the SEC.
Conference Call
HTA will host a conference call and webcast on Monday, April 30, 2018 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) to review its financial performance and operating results for the three months ended March 31, 2018.
Conference Call and Webcast Details:
Domestic Dial-In Number: (877) 507-6265
International Dial-In Number: (412) 902-6633
Canada Dial-In Number: (855) 669-9657
Webcast: www.htareit.com under the Investor Relations tab
Replay Conference Call Details:
Domestic Dial-In Number: (877) 344-7529
International Dial-In Number: (412) 317-0088
Canada Dial-In Number: (855) 669-9658
Conference ID: 10119251
Available April 30, 2018 (one hour after the end of the conference call) to May 30, 2018 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time)
Supplemental Information
Supplemental financial data are available on the HTA’s website at www.htareit.com.





HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
(Unaudited)
 
 
March 31, 2018
 
December 31, 2017
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






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended March 31,
 
2018
 
2017
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






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Three Months Ended March 31,
 
2018
 
2017
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






HEALTHCARE TRUST OF AMERICA, INC.
NOI, CASH NOI AND SAME-PROPERTY CASH NOI
(In thousands)
(Unaudited)
 
Three Months Ended March 31,
 
2018
 
2017
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 (1)
$
81,003

 
$
79,172

Same-Property Cash NOI percentage growth
2.3
%
 
 
 
 
 
 
(1) Same-Property includes 342 buildings for the three months ended March 31, 2018 and 2017, respectively.
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 real estate investment trusts (“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.
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 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.
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.





HEALTHCARE TRUST OF AMERICA, INC.
FFO, NORMALIZED FFO AND NORMALIZED FAD
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended March 31,
 
2018
 
2017
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

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.
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.





HTA also 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.


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Section 3: EX-99.2 (EXHIBIT 99.2)

ex992033120181
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.


 


 
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