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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): August 2, 2018 (August 2, 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 August 2, 2018, Healthcare Trust of America, Inc. (NYSE: HTA) ( “HTA”) issued a press release announcing its financial results for the three and six months ended June 30, 2018. HTA also commenced distributing its Supplemental Information for the three and six months ended June 30, 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: August 2, 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: August 2, 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
394491688_bestinclasslogo.jpg
 
PRESS RELEASE
 
Financial Contact:
 
Robert A. Milligan
 
Chief Financial Officer
 
480.998.3478
HEALTHCARE TRUST OF AMERICA, INC. REPORTS SECOND QUARTER 2018 EARNINGS
Normalized FFO of $0.41 Per Diluted Share
$294 Million of Dispositions Under Contract
Same-Property Cash NOI Growth of 2.6%
Scottsdale, Arizona (August 2, 2018) - Healthcare Trust of America, Inc. (NYSE: HTA) (“HTA”) announced results for the three and six months ended June 30, 2018.
Operating
Second Quarter 2018:
Net Income Attributable to Common Stockholders: Increased 359.3% to $15.3 million, compared to Q2 2017. Earnings per diluted share increased 333.3% to $0.07 per diluted share, compared to Q2 2017.
Funds From Operations (“FFO”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), increased 55.8%, to $84.4 million, compared to Q2 2017. FFO per diluted share increased 33.3%, to $0.40 per diluted share, compared to Q2 2017.
Normalized FFO: Increased 22.2%, to $85.1 million, compared to Q2 2017. Normalized FFO per diluted share increased 5.1%, to $0.41 per diluted share, compared to Q2 2017.
Normalized Funds Available for Distribution (“FAD”): Increased 19.2%, to $72.2 million, compared to Q2 2017.
Same-Property Cash Net Operating Income (“NOI”): Increased $1.9 million, or 2.6%, to $77.9 million, compared to Q2 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth would have been 3.1%.

Year-to-Date 2018:
Net Income Attributable to Common Stockholders: Increased 229.7%, to $25.1 million, compared to 2017. Earnings per diluted share increased 140.0%, to $0.12 per diluted share, compared to 2017.
FFO: As defined by NAREIT, increased 47.7%, to $169.0 million, compared to 2017. FFO per diluted share increased 15.7%, to $0.81 per diluted share, compared to 2017.
Normalized FFO: Increased 31.1%, to $170.1 million, compared to 2017. Normalized FFO per diluted share increased 2.5%, to $0.81 per diluted share, compared to 2017.
Normalized FAD: Increased 30.6%, to $148.2 million, compared to 2017.
Same-Property Cash NOI: Increased $3.7 million, or 2.5%, to $154.1 million, compared to 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth would have been 2.8%.

Portfolio
Leasing: During the three months ended June 30, 2018, HTA entered into new and renewal leases on approximately 1.0 million square feet of gross leasable area (“GLA”), or 4.2% of its portfolio. Tenant retention for the Same-Property portfolio was 86% by GLA for the quarter, which included approximately 0.7 million square feet of GLA of total expiring leases. Re-leasing spreads for renewal leases on a cash basis were 1.1%. Renewal leases included tenant improvements of $1.66 per square foot of GLA per year of the lease term and approximately one day of free rent per year of the lease term during the three months ended June 30, 2018.
Leased Rate: As of June 30, 2018, HTA had a leased rate for its portfolio of 91.9% by GLA and an occupancy rate of 90.9% by GLA.
Forest Park Update: During the six months ended June 30, 2018, HTA entered into approximately 41,000 square feet of GLA of new leases on the former Forest Park Dallas campus.
Development/Redevelopment: During the three months ended June 30, 2018, HTA announced a new development in its key gateway market of Miami, Florida and commenced two redevelopments, including an agreement to build a new on-campus MOB in the Raleigh, North Carolina market. The projects will have total expected construction costs of approximately $70.6 million and are approximately 78% pre-leased to major health systems. These projects include:
Jackson South MOB (Miami, Florida): In April 2018, HTA entered into an agreement to develop a new 51,000 square foot MOB located adjacent to the Jackson South Hospital in Coral Reef, Florida. Total development costs are estimated to be $21.6 million and the building is 70% pre-leased to the hospital. Construction is expected to begin in 2019.






Cary MOB (Raleigh, North Carolina): HTA announced it will redevelop the Medical Park of Cary, its existing 90,000 square foot medical park located adjacent to WakeMed Health & Hospital’s (“WakeMed”), a leading health system based in Raleigh, North Carolina. As part of the project, HTA will take down four existing buildings totaling 45,000 square feet of GLA and build a new 125,000 square foot Class A MOB. Following this development, Medical Park of Cary will increase to approximately 170,000 square feet of GLA, including buildings that will remain operational through construction. Construction is expected to begin in the spring of 2019, with delivery by 2021 and is expected to cost $43.0 million.
Investments: During the six months ended June 30, 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 other MOBs.
Dispositions: Subsequent to June 30, 2018, HTA entered into agreements to sell its Greenville, South Carolina MOB portfolio for a total of $294.3 million in two transactions, including the sale of a single MOB for $9.3 million that has closed subsequent to June 30, 2018 which was classified as held for sale as of June 30, 2018. The remaining properties are expected to close in August 2018. HTA has additional properties under contract to sell which would total up to an additional $60 million of gross proceeds. These properties are subject to customary closing conditions and no closings are assured. HTA intends to use the net proceeds to pay down debt, repurchase shares of its common stock, to invest in acquisitions and developments in markets where it believes it can utilize its property management and leasing platform to drive incremental returns, and for general corporate purposes.

2017 Investment Performance
Cash NOI: During the three months ended June 30, 2018, HTA generated $34.8 million of Cash NOI on its 2017 investments, including its investment in its unconsolidated joint venture. This Cash NOI includes over $2.2 million of income from property management and building engineering services provided to its tenants. As of June 30, 2018, HTA’s run rate yield on its 2017 investments was approximately 5.3%, which included the full year impact of new leases which have been executed, but which have not yet commenced.
Development: As of part the 2017 investments, HTA acquired seven development projects that were under construction and not stabilized at the date of acquisition. Prior to this quarter, HTA had completed five of the seven development projects. During the period ended June 30, 2018, HTA completed the development MOB of Memorial Hermann in Houston, Texas. This MOB was 100,000 square feet of GLA and 100% pre-leased to the hospital. The remaining development has been completed in July 2018.
As of June 30, 2018, the six completed development properties were 87% leased and generated $1.9 million of Cash NOI. HTA believes it is currently in the late stages of lease negotiations for an additional 33,000 square feet of GLA that would bring the leased rate on these development properties to 88%, 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 and Capital Markets
Balance Sheet: As of June 30, 2018, HTA had total leverage of 31.8% measured as debt less cash and cash equivalents to total capitalization, and 5.8x measured as debt less cash and cash equivalents to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization for real estate (“Adjusted EBITDAre”). Total liquidity at the end of the quarter was $1.0 billion, including $994.5 million of availability under HTA’s unsecured revolving credit facility and $26.2 million of cash and cash equivalents.
Debt: During the three months ended June 30, 2018, HTA paid down $96.0 million on its $286.0 million promissory note to the seller, as lender, in the Duke acquisition. The interest rate on the promissory note is 4% per annum.
Equity: In June 2018, HTA settled its forward sale arrangement pursuant to its forward equity agreement, which included approximately 2.6 million shares of its common stock for net proceeds of approximately $73.8 million, adjusted for costs to borrow equating to a net price to HTA of $28.94 per share of common stock.
Share Repurchase Plan: On June 8, 2018, HTA’s Board of Directors approved a stock repurchase plan authorizing HTA to purchase up to $100 million of its common stock from time to time prior to the expiration thereof on June 7, 2020. During June 2018, pursuant to this plan, HTA repurchased 333,002 shares of its common stock, at an average price of $26.26 per share, for an aggregate amount of $8.7 million. In August 2018, HTA’s Board of Directors terminated the foregoing plan and adopted a new plan with an increased share repurchase authorization of up to $300 million.

Subsequent Events
Debt: Subsequent to June 30, 2018, HTA’s operating partnership, HTALP, entered into a modification of its $200.0 million unsecured term loan due in 2023. This modification decreased pricing at HTA’s current credit rating by 65 bps from LIBOR plus 165 bps to LIBOR plus 100 bps. The maturity date was also extended by five months to January 2024. The other material terms of the unsecured term loan prior to the modification remained substantially unchanged.
Dividends: On August 2, 2018, HTA’s Board of Directors announced an increased quarterly dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on October 5, 2018 to stockholders of record of its common stock and holders of its OP Units on October 2, 2018.





Financial Results - Second Quarter 2018
Rental Income
Rental income increased 24.2% to $173.2 million for the three months ended June 30, 2018, compared to $139.5 million for the three months ended June 30, 2017.
Net Income
Net income increased 367.5% to $15.7 million for the three months ended June 30, 2018, compared to a net loss of $(5.9) million for the three months ended June 30, 2017.
FFO
FFO, as defined by NAREIT, was $0.40 per diluted share, or $84.4 million, for the three months ended June 30, 2018, compared to $0.30 per diluted share, or $54.2 million, for the three months ended June 30, 2017.
Normalized FFO
Normalized FFO was $0.41 per diluted share, or $85.1 million, for the three months ended June 30, 2018, compared to $0.39 per diluted share, or $69.6 million, for the three months ended June 30, 2017.
Normalized FAD
Normalized FAD increased 19.2% to $72.2 million, for the three months ended June 30, 2018, compared to $60.6 million for the three months ended June 30, 2017.
NOI
NOI increased 24.2% to $119.8 million for the three months ended June 30, 2018, compared to $96.4 million for the three months ended June 30, 2017.
Same-Property Cash NOI
Same-Property Cash NOI increased $1.9 million, or 2.6%, to $77.9 million, for the three months ended June 30, 2018, compared to $75.9 million for the three months ended June 30, 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth would have been 3.1%.
General and Administrative Expenses
General and administrative expenses were $8.7 million for the three months ended June 30, 2018, compared to $8.5 million for the three months ended June 30, 2017.
Interest Expense
Total interest expense was $26.3 million for the three months ended June 30, 2018, compared to $17.9 million for the three months ended June 30, 2017.
Tenant Retention
Tenant retention for the Same-Property portfolio was 86% by GLA for the quarter, which included approximately 0.7 million square feet of GLA of expiring leases.

Financial Results - Year-to-Date 2018
Rental Income
Rental income increased 32.4% to $348.8 million for the six months ended June 30, 2018, compared to $263.5 million for the six months ended June 30, 2017.
Net Income
Net income increased 215.1% to $25.7 million for the six months ended June 30, 2018, compared to $8.1 million for the six months ended June 30, 2017.
FFO
FFO, as defined by NAREIT, was $0.81 per diluted share, or $169.0 million, for the six months ended June 30, 2018, compared to $0.70 per diluted share, or $114.4 million, for the six months ended June 30, 2017.
Normalized FFO
Normalized FFO was $0.81 per diluted share, or $170.1 million, for the six months ended June 30, 2018, compared to $0.79 per diluted share, or $129.8 million, for the six months ended June 30, 2017.
Normalized FAD
Normalized FAD increased 30.6% to $148.2 million, for the six months ended June 30, 2018, compared to $113.5 million for the six months ended June 30, 2017.
NOI
NOI increased 31.7% to $239.4 million for the six months ended June 30, 2018, compared to $181.7 million for the six months ended June 30, 2017.





Same-Property Cash NOI
Same-Property Cash NOI increased $3.7 million, or 2.5%, to $154.1 million, for the six months ended June 30, 2018, compared to $150.4 million for the six months ended June 30, 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth would have been 2.8%.
General and Administrative Expenses
General and administrative expenses were $17.5 million for the six months ended June 30, 2018, compared to $16.9 million for the six months ended June 30, 2017.
Interest Expense
Total interest expense was $52.6 million for the six months ended June 30, 2018, compared to $33.4 million for the six months ended June 30, 2017.
Investment Activity
During the six months ended June 30, 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 other MOBs.
Leased Rate, Occupancy Rate and Tenant Retention
The leased rate (includes leases which have been executed, but which have not yet commenced) was 91.9% by GLA as of June 30, 2018. The occupancy rate of HTA’s portfolio was 90.9% by GLA as of June 30, 2018. Tenant retention for the Same-Property portfolio was 84% by GLA year-to-date, which included approximately 1.3 million square feet of expiring leases.
Credit Rated Tenants
Investment grade rated tenants as a percent of annualized base rent was 48% as of June 30, 2018. Additionally, 61% of HTA’s annualized base rent as of June 30, 2018 was derived from tenants that have (or whose parent companies have) a credit rating from a nationally recognized rating agency.
In-House Property Management and Leasing Platform
As of June 30, 2018, HTA’s in-house property management and leasing platform operated approximately 22.7 million square feet of GLA, or 94%, of HTA’s total portfolio.






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 24.2 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 Friday, August 3, 2018 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to review its financial performance and operating results for the three and six months ended June 30, 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: 10122321
Available August 3, 2018 (one hour after the end of the conference call) to September 3, 2018 at 12:00 p.m. Eastern Time (9:00 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)
 
 
June 30, 2018
 
December 31, 2017
ASSETS
 
 
 
 
Real estate investments:
 
 
 
 
Land
 
$
486,403

 
$
485,319

Building and improvements
 
5,873,927

 
5,830,824

Lease intangibles
 
633,938

 
639,199

Construction in progress
 
21,397

 
14,223

 
 
7,015,665

 
6,969,565

Accumulated depreciation and amortization
 
(1,146,260
)
 
(1,021,691
)
Real estate investments, net
 
5,869,405

 
5,947,874

Assets held for sale, net
 
6,916

 

Investment in unconsolidated joint venture
 
67,870

 
68,577

Cash and cash equivalents
 
26,191

 
100,356

Restricted cash
 
13,414

 
18,204

Receivables and other assets, net
 
215,250

 
207,857

Other intangibles, net
 
103,084

 
106,714

Total assets
 
$
6,302,130

 
$
6,449,582

LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Debt
 
$
2,683,531

 
$
2,781,031

Accounts payable and accrued liabilities
 
152,516

 
167,852

Liabilities of assets held for sale
 
161

 

Derivative financial instruments - interest rate swaps
 
548

 
1,089

Security deposits, prepaid rent and other liabilities
 
65,012

 
61,222

Intangible liabilities, net
 
64,964

 
68,203

Total liabilities
 
2,966,732

 
3,079,397

Commitments and contingencies
 
 
 
 
Redeemable noncontrolling interests
 
6,644

 
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; 207,493,355 and 204,892,118 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively
 
2,075

 
2,049

Additional paid-in capital
 
4,580,373

 
4,508,528

Accumulated other comprehensive loss
 
1,367

 
274

Cumulative dividends in excess of earnings
 
(1,332,759
)
 
(1,232,069
)
Total stockholders’ equity
 
3,251,056

 
3,278,782

Noncontrolling interests
 
77,698

 
84,666

Total equity
 
3,328,754

 
3,363,448

Total liabilities and equity
 
$
6,302,130

 
$
6,449,582






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
Rental income
$
173,221

 
$
139,525

 
$
348,788

 
$
263,518

Interest and other operating income
111

 
354

 
205

 
708

Total revenues
173,332

 
139,879

 
348,993

 
264,226

Expenses:
 
 
 
 
 
 
 
Rental
53,553

 
43,523

 
109,575

 
82,543

General and administrative
8,725

 
8,472

 
17,511

 
16,895

Transaction
396

 
5,073

 
587

 
5,357

Depreciation and amortization
69,104

 
55,353

 
139,496

 
102,409

Impairment

 
5,093

 
4,606

 
5,093

Total expenses
131,778

 
117,514

 
271,775

 
212,297

Income before other income (expense)
41,554

 
22,365

 
77,218

 
51,929

Interest income (expense):
 
 
 
 
 
 
 
Interest related to derivative financial instruments
186

 
(239
)
 
128

 
(563
)
Gain on change in fair value of derivative financial instruments, net

 
45

 

 
884

Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments
186

 
(194
)
 
128

 
321

Interest related to debt
(26,491
)
 
(17,706
)
 
(52,686
)
 
(33,764
)
Gain on sale of real estate, net

 

 

 
3

Loss on extinguishment of debt, net

 
(10,386
)
 

 
(10,418
)
Income from unconsolidated joint venture
403

 
63

 
973

 
63

Other income
5

 
6

 
40

 
14

Net income (loss)
$
15,657

 
$
(5,852
)
 
$
25,673

 
$
8,148

Net income attributable to noncontrolling interests
(311
)
 
(66
)
 
(525
)
 
(521
)
Net income (loss) attributable to common stockholders
$
15,346

 
$
(5,918
)
 
$
25,148

 
$
7,627

Earnings per common share - basic:
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
0.07

 
$
(0.03
)
 
$
0.12

 
$
0.05

Earnings per common share - diluted:
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
0.07

 
$
(0.03
)
 
$
0.12

 
$
0.05

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
205,241

 
176,464

 
205,155

 
159,218

Diluted
209,259

 
176,464

 
209,218

 
163,490

Dividends declared per common share
$
0.305

 
$
0.300

 
$
0.610

 
$
0.600






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Six Months Ended June 30,
 
2018
 
2017
Cash flows from operating activities:
 
 
 
Net income
$
25,673

 
$
8,148

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation, amortization and other
135,177

 
100,536

Share-based compensation expense
5,703

 
3,839

Impairment
4,606

 
5,093

Income from unconsolidated joint venture
(973
)
 
(63
)
Distributions from unconsolidated joint venture
975

 

Gain on sale of real estate, net

 
(3
)
Loss on extinguishment of debt, net

 
10,418

Change in fair value of derivative financial instruments

 
(884
)
Changes in operating assets and liabilities:
 
 
 
Receivables and other assets, net
(2,956
)
 
(2,742
)
Accounts payable and accrued liabilities
(13,254
)
 
14,272

Prepaid rent and other liabilities
1,157

 
1,907

Net cash provided by operating activities
156,108


140,521

Cash flows from investing activities:
 
 
 
Investments in real estate
(11,887
)
 
(2,202,815
)
Investment in unconsolidated joint venture

 
(68,839
)
Development of real estate
(23,861
)
 
(348
)
Proceeds from the sale of real estate

 
4,746

Capital expenditures
(34,110
)
 
(26,022
)
Collection of real estate notes receivable
347

 

Net cash used in investing activities
(69,511
)

(2,293,278
)
Cash flows from financing activities:
 
 
 
Borrowings on unsecured revolving credit facility
85,000

 
305,000

Payments on unsecured revolving credit facility
(85,000
)
 
(393,000
)
Proceeds from unsecured senior notes

 
900,000

Payments on secured mortgage loans
(99,218
)
 
(74,319
)
Deferred financing costs

 
(9,400
)
Debt extinguishment costs

 
(10,391
)
Security deposits
222

 
1,964

Proceeds from issuance of common stock
72,814

 
1,624,222

Repurchase and cancellation of common stock
(11,553
)
 
(3,339
)
Dividends paid
(125,128
)
 
(85,683
)
Distributions paid to noncontrolling interest of limited partners
(2,689
)
 
(2,722
)
Net cash (used in) provided by financing activities
(165,552
)

2,252,332

Net change in cash, cash equivalents and restricted cash
(78,955
)
 
99,575

Cash, cash equivalents and restricted cash - beginning of period
118,560

 
25,045

Cash, cash equivalents and restricted cash - end of period
$
39,605

 
$
124,620






HEALTHCARE TRUST OF AMERICA, INC.
NOI, CASH NOI AND SAME-PROPERTY CASH NOI
(In thousands)
(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Net income (loss)
$
15,657

 
$
(5,852
)
 
$
25,673

 
$
8,148

General and administrative expenses
8,725

 
8,472

 
17,511

 
16,895

Transaction expenses (1)
396

 
5,073

 
587

 
5,357

Depreciation and amortization expense
69,104

 
55,353

 
139,496

 
102,409

Impairment

 
5,093

 
4,606

 
5,093

Interest expense and net change in fair value of derivative financial instruments
26,305

 
17,900

 
52,558

 
33,443

Gain on sale of real estate, net

 

 

 
(3
)
Loss on extinguishment of debt, net

 
10,386

 

 
10,418

Income from unconsolidated joint venture
(403
)
 

 
(973
)
 

Other income
(5
)
 
(6
)
 
(40
)
 
(14
)
NOI
$
119,779

 
$
96,419

 
$
239,418

 
$
181,746

NOI percentage growth
24.2
%
 
 
 
31.7
%
 
 
 
 
 
 
 
 
 
 
NOI
$
119,779

 
$
96,419

 
$
239,418

 
$
181,746

Straight-line rent adjustments, net
(2,377
)
 
(1,616
)
 
(5,543
)
 
(2,825
)
Amortization of (below) and above market leases/leasehold interests, net
40

 
126

 
255

 
32

Notes receivable interest income and other GAAP adjustments
(19
)
 
(240
)
 
(149
)
 
(495
)
Cash NOI
$
117,423

 
$
94,689

 
$
233,981

 
$
178,458

Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI
(33,664
)
 
(11,973
)
 
(68,340
)
 
(14,535
)
Redevelopment Cash NOI
(365
)
 
(1,149
)
 
(622
)
 
(2,364
)
Intended for sale Cash NOI
(5,507
)
 
(5,628
)
 
(10,889
)
 
(11,122
)
Same-Property Cash NOI (2)
$
77,887

 
$
75,939

 
$
154,130

 
$
150,437

Same-Property Cash NOI percentage growth
2.6
%
 
 
 
2.5
%
 
 
 
 
 
 
 
 
 
 
(1) For the three and six months ended June 30, 2017, transaction costs include $4.6 million of non-incremental costs related to the Duke acquisition.
(2) Same-Property includes 321 and 319 buildings for the three and six months ended June 30, 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; (ii) amortization of below and above market leases/leasehold interests; (iii) notes receivable interest income; and (iv) other GAAP adjustments. 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 (i) properties which have not been owned and operated by HTA during the entire span of all periods presented and disposed properties, (ii) HTA’s share of unconsolidated joint ventures, (iii) development, redevelopment and land parcels, (iv) properties intended for disposition in the near term which have (a) been approved by the Board of Directors, (b) is actively marketed for sale, and (c) an offer has been received at prices HTA would transact and the sales process is ongoing, and (v) 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 June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Net income (loss) attributable to common stockholders
$
15,346

 
$
(5,918
)
 
$
25,148

 
$
7,627

Depreciation and amortization expense related to investments in real estate
68,585

 
54,968

 
138,441

 
101,657

Gain on sale of real estate, net

 

 

 
(3
)
Impairment

 
5,093

 
4,606

 
5,093

Proportionate share of joint venture depreciation and amortization
463

 
42

 
814

 
42

FFO attributable to common stockholders
$
84,394

 
$
54,185

 
$
169,009

 
$
114,416

Transaction expenses
252

 
430

 
443

 
714

Gain on change in fair value of derivative financial instruments, net

 
(45
)
 

 
(884
)
Loss on extinguishment of debt, net

 
10,386

 

 
10,418

Noncontrolling income from partnership units included in diluted shares
297

 
44

 
478

 
469

Other normalizing items, net (1)
144

 
4,643

 
144

 
4,643

Normalized FFO attributable to common stockholders
$
85,087

 
$
69,643

 
$
170,074

 
$
129,776

Other income
(5
)
 
(6
)
 
(40
)
 
(14
)
Non-cash compensation expense
2,224

 
1,309

 
5,703

 
3,839

Straight-line rent adjustments, net
(2,377
)
 
(1,616
)
 
(5,543
)
 
(2,825
)
Amortization of (below) and above market leases/leasehold interests and corporate assets, net
559

 
511

 
1,310

 
784

Deferred revenue - tenant improvement related
(38
)
 
(11
)
 
(69
)
 
(11
)
Amortization of deferred financing costs and debt discount/premium, net
1,291

 
853

 
2,580

 
1,639

Recurring capital expenditures, tenant improvements and leasing commissions
(14,511
)
 
(10,065
)
 
(25,861
)
 
(19,705
)
Normalized FAD attributable to common stockholders
$
72,230

 
$
60,618

 
$
148,154

 
$
113,483

 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders per diluted share
$
0.07

 
$
(0.03
)
 
$
0.12

 
$
0.05

FFO adjustments per diluted share, net
0.33

 
0.33

 
0.69

 
0.65

FFO attributable to common stockholders per diluted share
$
0.40

 
$
0.30

 
$
0.81

 
$
0.70

Normalized FFO adjustments per diluted share, net
0.01

 
0.09

 
0.00

 
0.09

Normalized FFO attributable to common stockholders per diluted share
$
0.41

 
$
0.39

 
$
0.81

 
$
0.79

 
 
 
 
 
 
 
 
Weighted average diluted common shares outstanding (2) 
209,259

 
180,672

 
209,218

 
163,490

 
 
 
 
 
 
 
 
(1) For the three and six months ended June 30, 2017, other normalizing items include $4.6 million of non-incremental costs related to the Duke acquisition that were included in transaction expenses on HTA’s condensed consolidated statements of operations.
(2) For the three months ended June 30, 2017, these securities are anti-dilutive on a GAAP basis as a result of HTA’s net loss, but are considered dilutive on a non-GAAP basis in periods where we report non-GAAP net income.
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.


(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

ex992supplement
ExhibitExhibit 99.2 99.2 99.1 MISSION MEDICAL OFFICE PORTFOIO MISSION VIEJO, CA


 
Table of Contents Company Overview Company Information 3 Second Quarter and Year-to-Date 2018 Highlights 6 Financial Highlights 8 Company Snapshot 9 Financial Information FFO, Normalized FFO, Normalized FAD and Adjusted EBITDAre 10 Capitalization, Interest Expense and Covenants 11 Debt Composition and Maturity Schedule 12 Portfolio Information Investment Activity 13 Regional Portfolio Distribution and Key Markets and Top 75 MSA Concentration 14 Development and Redevelopment Summary and Capital Expenditures 15 Same-Property Performance and NOI 16 Portfolio Diversification by Type, Historical Campus Proximity and Ownership Interests 17 Historical Leased Rate, New and Renewal Leasing Activity and Tenant Lease Expirations 18 Key Health System Relationships and Highlights 19 Financial Statements Condensed Consolidated Balance Sheets 20 Condensed Consolidated Statements of Operations 21 Condensed Consolidated Statements of Cash Flows 22 Reporting Definitions 23 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. 2Q 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 24.2 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 David A. Gershenson I Chief Accounting Officer 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 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 3


 
HTA: LARGEST DEDICATED OWNER OF MEDICAL OFFICE 24+ 94% ~17M SF 5.8x MILLION SQUARE INTERNALLY ON-CAMPUS Net Debt/ Adjusted FEET MANAGED (Largest on-campus owner in U.S.) EBITDAre BEST IN CLASS PORTFOLIO FOCUSED IN 20-25 KEY CONCENTRATED GEOGRAPHIC MARKETS 10 MARKETS ~ 1M+ SF 16 MARKETS > 500K SF SF Market Invested $’s 1.0M Boston, MA 411M Indianapolis, IN Pittsburgh, PA 969K Harford/New Haven, CT 278M 881K Albany, NY 179M Boston, MA 333K White Plains, NY 126M 3.2M TOTAL NORTHEAST $994M Hartford, CT 1.4M Indianapolis, IN 282M 1.1M Pittsburgh, PA 149M 323K Columbus, OH 77M Greenville, SC 2.8M TOTAL MIDWEST $508M SF Market Invested $’s 1.1M Atlanta, GA 325M Phoenix, AZ Atlanta, GA 632K Raleigh, NC 194M Houston, TX 965K Greenville, SC 179M 334K Charlotte, NC 95M Dallas, TX Miami, FL 290K Charleston, SC 75M 3.3M TOTAL SOUTHEAST $868M SF Market Invested $’s SF Market Invested $’s 2.1M Dallas, TX 843M 954K Tampa, FL 351M HTA Properties 1.6M Houston, TX 431M 995K Miami, FL 229M 408K Austin, TX 164M 511K Orlando, FL 156M HTA Market with ~ 1 Million+ SF 4.1M TOTAL TEXAS $1,438M 2.5M TOTAL FLORIDA $736M PM Offices FULL SERVICE INVESTMENT GRADE OPERATING PLATFORM FOCUS AND SCALE DIVERSIFICATION BALANCE SHEET Best in Class 94% of Portfolio in 450 Buildings throughout BBB/Baa2 Full Service Key Markets & 33 States Credit Rating Operating Platform Top 75 MSAs Top Tenant < 4.3% of ABR 5.8x Property Management Platform with Scale Creates: Net Debt/ Top Market < 9.6% of ABR Adjusted EBITDAre Leasing Local Expertise Size & Diversification $1.0B Facilities & Engineering Strong Relationships provides stability of Liquidity cash flows Construction & Operational Benefits Development Access to Better Performing Markets 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 4


 
FINANCIAL PERFORMANCE: DECADE OF VALUE CREATION Normalized FFO/Share Same Store Growth 4% $0.43 $0.42 $0.42 $0.41 $0.41 $0.41 $0.41 $0.40 $0.40 $0.40 $0.40 $0.39 $0.39 $0.39 3.3% 3.2% $0.37 3.1% 3.1% 3.1% 3.1% 3.0% 3% 2.9% 2.9% 3.0% $0.34 2.8% HTA Avg. 2.6% $0.31 2.3% $0.28 2.4% REIT MOB $0.25 2% Avg. 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 Annual Investments Top Health Systems 2012 $294,937 » Adventist Health » Highmark-Allegheny Health Network 2013 $397,826 » Atrium Health » Hospital Corporation of America 2014 $439,530 » Ascension Health » Mercy 2015 $271,510 » Baylor Scott & White Health » Providence St. Joseph Health 2016 $700,764 » Boston Medical Center » Steward Health Care System 2017 $2,722,467 » Community Health Systems » Tenet Healthcare System 2018 $12,269 » Duke Health » Tufts Medical Center $0 $800,000 $1,600,000 $2,400,000 » Greenville Health System » UNC Health Care $ (Thousands) DELIVERING SHAREHOLDER VALUE 8.6% Annualized Average Total Returns Since First Distribution in 2006 to June 30, 2018 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 5


 
Company Overview Operating Second Quarter 2018: • Net Income Attributable to Common Stockholders: Increased 359.3% to $15.3 million, compared to Q2 2017. Earnings per diluted share increased 333.3% to $0.07 per diluted share, compared to Q2 2017. • Funds From Operations (“FFO”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), increased 55.8%, to $84.4 million, compared to Q2 2017. FFO per diluted share increased 33.3%, to $0.40 per diluted share, compared to Q2 2017. • Normalized FFO: Increased 22.2%, to $85.1 million, compared to Q2 2017. Normalized FFO per diluted share increased 5.1%, to $0.41 per diluted share, compared to Q2 2017. • Normalized Funds Available for Distribution (“FAD”): Increased 19.2%, to $72.2 million, compared to Q2 2017. • Same-Property Cash Net Operating Income (“NOI”): Increased $1.9 million, or 2.6%, to $77.9 million, compared to Q2 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth would have been 3.1%. Year-to-Date 2018: • Net Income Attributable to Common Stockholders: Increased 229.7%, to $25.1 million, compared to 2017. Earnings per diluted share increased 140.0%, to $0.12 per diluted share, compared to 2017. • FFO: As defined by NAREIT, increased 47.7%, to $169.0 million, compared to 2017. FFO per diluted share increased 15.7%, to $0.81 per diluted share, compared to 2017. • Normalized FFO: Increased 31.1%, to $170.1 million, compared to 2017. Normalized FFO per diluted share increased 2.5%, to $0.81 per diluted share, compared to 2017. • Normalized FAD: Increased 30.6%, to $148.2 million, compared to 2017. • Same-Property Cash NOI: Increased $3.7 million, or 2.5%, to $154.1 million, compared to 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth would have been 2.8%. Portfolio • Leasing: During the three months ended June 30, 2018, HTA entered into new and renewal leases on approximately 1.0 million square feet of gross leasable area (“GLA”), or 4.2% of its portfolio. Tenant retention for the Same-Property portfolio was 86% by GLA for the quarter, which included approximately 0.7 million square feet of GLA of total expiring leases. Re-leasing spreads for renewal leases on a cash basis were 1.1%. Renewal leases included tenant improvements of $1.66 per square foot of GLA per year of the lease term and approximately one day of free rent per year of the lease term during the three months ended June 30, 2018. • Leased Rate: As of June 30, 2018, HTA had a leased rate for its portfolio of 91.9% by GLA and an occupancy rate of 90.9% by GLA. • Forest Park Update: During the six months ended June 30, 2018, HTA entered into approximately 41,000 square feet of GLA of new leases on the former Forest Park Dallas campus. • Development/Redevelopment: During the three months ended June 30, 2018, HTA announced a new development in its key gateway market of Miami, Florida and commenced two redevelopments, including an agreement to build a new on-campus MOB in the Raleigh, North Carolina market. The projects will have total expected construction costs of approximately $70.6 million and are approximately 78% pre-leased to major health systems. These projects include: ▪ Jackson South MOB (Miami, Florida): In April 2018, HTA entered into an agreement to develop a new 51,000 square foot MOB located adjacent to the Jackson South Hospital in Coral Reef, Florida. Total development costs are estimated to be $21.6 million and the building is 70% pre-leased to the hospital. Construction is expected to begin in 2019. ▪ Cary MOB (Raleigh, North Carolina): HTA announced it will redevelop the Medical Park of Cary, its existing 90,000 square foot medical park located adjacent to WakeMed Health & Hospital’s (“WakeMed”), a leading health system based in Raleigh, North Carolina. As part of the project, HTA will take down four existing buildings totaling 45,000 square feet of GLA and build a new 125,000 square foot Class A MOB. Following this development, Medical Park of Cary will increase to approximately 170,000 square feet of GLA, including buildings that will remain operational through construction. Construction is expected to begin in the spring of 2019, with delivery by 2021 and is expected to cost $43.0 million. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 6


 
Company Overview Portfolio - Cont. • Investments: During the six months ended June 30, 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 other MOBs. • Dispositions: Subsequent to June 30, 2018, HTA entered into agreements to sell its Greenville, South Carolina MOB portfolio for a total of $294.3 million in two transactions, including the sale of a single MOB for $9.3 million that has closed subsequent to June 30, 2018 which was classified as held for sale as of June 30, 2018. The remaining properties are expected to close in August 2018. HTA has additional properties under contract to sell which would total up to an additional $60 million of gross proceeds. These properties are subject to customary closing conditions and no closings are assured. HTA intends to use the net proceeds to pay down debt, repurchase shares of its common stock, to invest in acquisitions and developments in markets where it believes it can utilize its property management and leasing platform to drive incremental returns, and for general corporate purposes. 2017 Investment Performance • Cash NOI: During the three months ended June 30, 2018, HTA generated $34.8 million of Cash NOI on its 2017 investments, including its investment in its unconsolidated joint venture. This Cash NOI includes over $2.2 million of income from property management and building engineering services provided to its tenants. As of June 30, 2018, HTA’s run rate yield on its 2017 investments was approximately 5.3%, which included the full year impact of new leases which have been executed, but which have not yet commenced. • Development: As of part the 2017 investments, HTA acquired seven development projects that were under construction and not stabilized at the date of acquisition. Prior to this quarter, HTA had completed five of the seven development projects. During the period ended June 30, 2018, HTA completed the development MOB of Memorial Hermann in Houston, Texas. This MOB was 100,000 square feet of GLA and 100% pre-leased to the hospital. The remaining development has been completed in July 2018. As of June 30, 2018, the six completed development properties were 87% leased and generated $1.9 million of Cash NOI. HTA believes it is currently in the late stages of lease negotiations for an additional 33,000 square feet of GLA that would bring the leased rate on these development properties to 88%, 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 and Capital Markets • Balance Sheet: As of June 30, 2018, HTA had total leverage of 31.8% measured as debt less cash and cash equivalents to total capitalization, and 5.8x measured as debt less cash and cash equivalents to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization for real estate (“Adjusted EBITDAre”). Total liquidity at the end of the quarter was $1.0 billion, including $994.5 million of availability under HTA’s unsecured revolving credit facility and $26.2 million of cash and cash equivalents. • Debt: During the three months ended June 30, 2018, HTA paid down $96.0 million on its $286.0 million promissory note to the seller, as lender, in the Duke acquisition. The interest rate on the promissory note is 4% per annum. • Equity: In June 2018, HTA settled its forward sale arrangement pursuant to its forward equity agreement, which included approximately 2.6 million shares of its common stock for net proceeds of approximately $73.8 million, adjusted for costs to borrow equating to a net price to HTA of $28.94 per share of common stock. • Share Repurchase Plan: On June 8, 2018, HTA’s Board of Directors approved a stock repurchase plan authorizing HTA to purchase up to $100 million of its common stock from time to time prior to the expiration thereof on June 7, 2020. During June 2018, pursuant to this plan, HTA repurchased 333,002 shares of its common stock, at an average price of $26.26 per share, for an aggregate amount of $8.7 million. In August 2018, HTA’s Board of Directors terminated the foregoing plan and adopted a new plan with an increased share repurchase authorization of up to $300 million. Subsequent Events • Debt: Subsequent to June 30, 2018, HTA’s operating partnership, HTALP, entered into a modification of its $200.0 million unsecured term loan due in 2023. This modification decreased pricing at HTA’s current credit rating by 65 bps from LIBOR plus 165 bps to LIBOR plus 100 bps. The maturity date was also extended by five months to January 2024. The other material terms of the unsecured term loan prior to the modification remained substantially unchanged. • Dividends: On August 2, 2018, HTA’s Board of Directors announced an increased quarterly dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on October 5, 2018 to stockholders of record of its common stock and holders of its OP Units on October 2, 2018. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 7


 
Company Overview Financial Highlights (unaudited and dollars in thousands, except per share data) Three Months Ended 2Q18 1Q18 4Q17 3Q17 2Q17 INCOME ITEMS Revenues $ 173,332 $ 175,661 $ 173,770 $ 175,994 $ 139,879 NOl (1)(2) 119,779 119,639 120,497 119,663 96,419 Adjusted EBITDAre, annualized (1)(3) 456,596 461,212 457,540 457,716 442,316 FFO (1)(3) 84,394 84,615 85,562 84,248 54,185 Normalized FFO (1)(3) 85,087 84,987 86,732 85,449 69,643 Normalized FAD (1)(3) 72,230 75,924 72,610 74,767 60,618 Net income (loss) attributable to common stockholders per diluted share $ 0.07 $ 0.05 $ 0.20 $ 0.07 $ (0.03) FFO per diluted share 0.40 0.40 0.41 0.41 0.30 Normalized FFO per diluted share 0.41 0.41 0.42 0.42 0.39 Same-Property Cash NOI growth (4) 2.6% 2.3% 2.8% 2.9% 3.1% Fixed charge coverage ratio (5) 4.10x 4.28x 4.36x 4.35x 4.39x As of 2Q18 1Q18 4Q17 3Q17 2Q17 ASSETS Gross real estate investments $ 7,015,665 $ 7,000,502 $ 6,969,565 $ 6,977,851 $ 6,796,889 Total assets 6,302,130 6,359,835 6,449,582 6,413,522 6,366,758 CAPITALIZATION Net debt (6) $ 2,657,340 $ 2,724,048 $ 2,680,675 $ 2,856,758 $ 2,784,162 Total capitalization (7) 8,357,574 8,257,732 8,959,516 8,959,887 9,154,526 Net debt/total capitalization (6) 31.8% 33.0% 29.9% 31.9% 30.4% (1) Refer to pages 23 and 24 for the reporting definitions of NOI, Adjusted EBITDAre, FFO, Normalized FFO and Normalized FAD. (2) Refer to page 16 for a reconciliation of GAAP Net Income to NOI. (3) Refer to page 10 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 4Q17 - 2Q18 amounts and calculation based on net debt. All prior periods presented were based on total debt. Refer to page 11 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 (for 4Q17 - 2Q18) at the end of the period. All prior periods presented were based on total debt. Refer to page 11 for details. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 8


 
Company Overview Company Snapshot (as of June 30, 2018) Investments in Real Estate (1) $ 7.0 Total portfolio GLA (2) 24.2 Leased rate (3) 91.9% Same-Property portfolio tenant retention rate (YTD) (4) 84% % 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) 61% Weighted average remaining lease term for all buildings (7) 5.7 Weighted average remaining lease term for single-tenant buildings (7) 7.6 Weighted average remaining lease term for multi-tenant buildings (7) 4.7 Credit ratings (by Moody’s and Standard & Poor’s) Baa2(Negative)/BBB(Stable) Cash and cash equivalents (2) $ 26.2 Net debt/total capitalization 31.8% Weighted average interest rate per annum on portfolio debt (8) 3.56% Building Type Presence in Top MSAs (9) % of Portfolio (based on GLA) % of Portfolio (based on invested dollars) Hartford/New Medical Office Buildings Indianapolis, IN Atlanta, GA Haven, CT 95% 4.0% 4.7% 4.0% Tampa, FL Phoenix, AZ 5.0% 3.8% Denver, CO 3.5% Boston, MA 5.9% Orange County/Los Angeles, CA 3.4% Houston, TX 6.2% Senior Care 1% Hospitals 4% Dallas, TX 12.1% Remaining Top All Other Markets MSAs 6.1% 41.3% (1) Amount presented in billions. Refer to page 23 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 24 for the reporting definition of Retention. (5) Refer to page 23 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 14 for a detailed table of HTA’ s Key Markets and Top 75 MSA Concentration. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 9


 
Financial Information FFO, Normalized FFO, Normalized FAD and Adjusted EBITDAre (unaudited and in thousands, except per share data) FFO, Normalized FFO and Normalized FAD Three Months Ended Six Months Ended 2Q18 2Q17 2Q18 2Q17 Net income (loss) attributable to common stockholders $ 15,346 $ (5,918) $ 25,148 $ 7,627 Depreciation and amortization expense related to investments in real estate 68,585 54,968 138,441 101,657 Gain on sale of real estate, net — — — (3) Impairment — 5,093 4,606 5,093 Proportionate share of joint venture depreciation and amortization 463 42 814 42 FFO attributable to common stockholders $ 84,394 $ 54,185 $ 169,009 $ 114,416 Transaction expenses 252 430 443 714 Gain on change in fair value of derivative financial instruments, net — (45) — (884) Loss on extinguishment of debt, net — 10,386 — 10,418 Noncontrolling income from partnership units included in diluted shares 297 44 478 469 Other normalizing items, net (1) 144 4,643 144 4,643 Normalized FFO attributable to common stockholders $ 85,087 $ 69,643 $ 170,074 $ 129,776 Other income (5) (6) (40) (14) Non-cash compensation expense 2,224 1,309 5,703 3,839 Straight-line rent adjustments, net (2,377) (1,616) (5,543) (2,825) Amortization of (below) and above market leases/leasehold interests and corporate assets, net 559 511 1,310 784 Deferred revenue - tenant improvement related (38) (11) (69) (11) Amortization of deferred financing costs and debt discount/premium, net 1,291 853 2,580 1,639 Recurring capital expenditures, tenant improvements and leasing commissions (14,511) (10,065) (25,861) (19,705) Normalized FAD attributable to common stockholders $ 72,230 $ 60,618 $ 148,154 $ 113,483 Net income (loss) attributable to common stockholders per diluted share $ 0.07 $ (0.03) $ 0.12 $ 0.05 FFO adjustments per diluted share, net 0.33 0.33 0.69 0.65 FFO attributable to common stockholders per diluted share $ 0.40 $ 0.30 $ 0.81 $ 0.70 Normalized FFO adjustments per diluted share, net 0.01 0.09 0.00 0.09 Normalized FFO attributable to common stockholders per diluted share $ 0.41 $ 0.39 $ 0.81 $ 0.79 Weighted average diluted common shares outstanding (2) 209,259 180,672 209,218 163,490 Three Months Adjusted EBITDAre (3) Ended 2Q18 Net income $ 15,657 Interest expense 26,305 Depreciation and amortization expense 69,104 Proportionate share of joint venture depreciation and amortization 463 EBITDAre $ 111,529 Transaction expenses 252 Non-cash compensation expense 2,224 Other normalizing items, net 144 Adjusted EBITDAre 114,149 Adjusted EBITDAre, annualized $ 456,596 (1) For the three and six months ended 2Q17, other normalizing items include $4.6 million of non-incremental costs related to the Duke acquisition that were included in transaction expenses on HTA’s condensed consolidated statements of operations. (2) For the three months ended 2Q17, these securities are anti-dilutive on a GAAP basis as a result of HTA’s net loss, but are considered dilutive on a non-GAAP basis in periods where we report non-GAAP net income. (3) Refer to page 23 for the reporting definitions of EBITDAre as defined by NAREIT and Adjusted EBITDAre as previously defined as Adjusted EBITDA. 2Q 2018 I Supplemental Information . Healthcare Trust of America, Inc. I 10


 
Financial Information Capitalization, Interest Expense and Covenants (as of June 30, 2018, dollars and shares in thousands, except stock price) Capitalization Unsecured revolving credit facility $ — Unsecured term loans 500,000 Unsecured senior notes 1,850,000 Equity Secured mortgage loans 353,225 68% Deferred financing costs, net (14,440) Discount, net (5,254) Total debt $ 2,683,531 Secured Less: cash and cash equivalents 26,191 Debt 4% Net debt $ 2,657,340 Stock price (as of June 30, 2018) $ 26.96 Total diluted common shares outstanding 211,433 Equity capitalization $ 5,700,234 Total capitalization $ 8,357,574 Unsecured Debt Total undepreciated assets $ 7,448,390 28% Gross book value of unencumbered assets $ 6,414,594 Total debt/undepreciated assets 36.0% Net debt/total capitalization 31.8% Net debt/Adjusted EBITDAre ratio 5.8x Interest Expense Three Months Ended Six Months Ended 2Q18 2Q17 2Q18 2Q17 Interest (income) expense related to derivative financial instruments $ (186) $ 239 $ (128) $ 563 Gain on change in fair value of derivative financial instruments, net (1) — (45) — (884) Total interest related to derivative financial instruments, including net (186) 194 (128) (321) change in fair value of derivative financial instruments Interest expense related to debt 26,491 17,706 52,686 33,764 Total interest expense $ 26,305 $ 17,900 $ 52,558 $ 33,443 Interest expense excluding net change in fair value of derivative financial instruments $ 26,305 $ 17,945 $ 52,558 $ 34,327 Covenants Bank Loans Required 2Q18 Senior Notes Required 2Q18 Total leverage ≤ 60% 35% Total leverage ≤ 60% 37% Secured leverage ≤ 30% 5% Secured leverage ≤ 40% 5% Fixed charge coverage ≥ 1.50x 4.10x Unencumbered asset coverage ≥ 150% 286% Unencumbered leverage ≤ 60% 33% Interest coverage ≥ 1.50x 4.26x Unencumbered coverage ≥ 1.75x 3.71x (1) In March 2017, HTA designated its derivative financial instruments as cash flow hedges. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 11


 
Financial Information Debt Composition and Maturity Schedule (as of June 30, 2018, dollars in thousands) Debt Composition Unsecured Revolving Unsecured Unsecured Unsecured Unsecured Unsecured Credit Secured Senior Senior Unsecured Senior Unsecured Senior Senior Facility due Mortgage Notes due Notes due Term Loan Notes due Term Loan Notes due Notes due 2022 (1) Loans 2021 2022 due 2023 2023 due 2023 2026 2027 Total 2018 $ — $ 3,296 $ — $ — $ — $ — $ — $ — $ — $ 3,296 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 — 353,225 300,000 400,000 300,000 300,000 200,000 350,000 500,000 2,703,225 Deferred financing costs, net — (161) (1,314) (2,514) (2,165) (1,653) (1,511) (1,315) (3,807) (14,440) Premiums (discounts), net — 1,372 (1,001) (200) — (1,216) — (1,893) (2,316) (5,254) Total $ — $ 354,436 $ 297,685 $ 397,286 $ 297,835 $ 297,131 $ 198,489 $ 346,792 $ 493,877 $ 2,683,531 Stated rate (2) 3.18% 4.40% 3.38% 2.95% 3.28% 3.70% 3.78% 3.50% 3.75% 3.59% Hedged rate (3) 3.18% 4.50% 3.38% 2.95% 3.28% 3.70% 3.27% 3.50% 3.75% 3.56% Debt Maturity Schedule $1,800,000 $1,676,740 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $463,063 $400,000 $305,772 $200,000 $146,678 $107,676 $3,296 $0 2018 2019 2020 2021 2022 Thereafter 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 (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. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 12


 
Portfolio Information Investment Activity (as of June 30, 2018, dollars and GLA in thousands) 2018 Acquisitions % Leased at Property Market Date Acquired 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 Annual Investments (1) As of June 30, 2018, HTA has invested $7.0 billion primarily in MOBs, development properties and other healthcare assets comprising 24.2 million square feet of GLA. $2,900,000 $2,722,467 $2,300,000 $1,700,000 $1,100,000 $802,148 $700,764 $542,976 $500,000 $455,950 $439,530 $413,150 $397,826 $294,937 $271,510 $68,314 $12,269 ($82,885) ($35,685) ($39,483) ($85,150) -$100,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Acquisitions Dispositions (1) Excludes real estate note receivables and corporate assets. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 13


 
Portfolio Information Regional Portfolio Distribution and Key Markets and Top 75 MSA Concentration (as of June 30, 2018, dollars and GLA in thousands) Regional Portfolio Distribution % of Annualized Annualized Region Investment % of Investment Total GLA (1) % of Portfolio Base Rent (2) Base Rent Southwest $ 2,617,815 37.5% 8,129 33.5% $ 180,207 34.0% Southeast 2,018,032 28.9 7,354 30.3 161,315 30.5 Northeast 1,275,642 18.3 4,706 19.4 107,132 20.2 Midwest 1,064,193 15.2 4,038 16.7 80,224 15.2 Northwest 7,750 0.1 22 0.1 542 0.1 Total $ 6,983,432 100% 24,249 100% $ 529,420 100% Key Markets and Top 75 MSA Concentration (3) % of % of Annualized Annualized Key Markets Investment Investment Total GLA % of Portfolio Base Rent Base Rent Dallas, TX $ 843,274 12.1% 2,052 8.5% $ 50,024 9.5% Houston, TX 430,979 6.2 1,583 6.5 31,562 6.0 Boston, MA 410,730 5.9 1,037 4.3 32,665 6.2 Tampa, FL 350,746 5.0 954 3.9 23,520 4.4 Atlanta, GA 325,186 4.7 1,088 4.5 23,339 4.4 Indianapolis, IN 281,768 4.0 1,396 5.8 24,780 4.7 Hartford/New Haven, CT 277,931 4.0 969 4.0 21,474 4.1 Phoenix, AZ 267,781 3.8 1,315 5.4 25,093 4.7 Denver, CO 246,957 3.5 538 2.2 17,298 3.3 Orange County/Los Angeles, CA 241,242 3.4 513 2.1 13,973 2.6 Miami, FL 228,624 3.3 995 4.1 21,929 4.1 Raleigh, NC 194,429 2.8 632 2.6 15,636 3.0 Chicago, IL 190,778 2.7 382 1.6 11,500 2.2 Albany, NY 179,253 2.6 881 3.6 16,134 3.0 Greenville, SC 179,070 2.6 965 4.0 17,925 3.4 Austin, TX 164,425 2.3 408 1.7 8,467 1.6 Orlando, FL 156,300 2.2 511 2.1 11,188 2.1 Pittsburgh, PA 148,612 2.1 1,094 4.5 20,799 3.9 White Plains, NY 126,144 1.8 333 1.4 8,098 1.5 Milwaukee, WI 116,082 1.7 368 1.5 6,594 1.2 Top 20 MSAs 5,360,311 76.7 18,014 74.3 401,998 75.9 Additional Top MSAs 1,198,886 17.2 4,528 18.7 91,290 17.3 Total Key Markets & Top 75 MSAs $ 6,559,197 93.9% 22,542 93.0% $ 493,288 93.2% (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 23 for the reporting definition of Annualized Base Rent. (3) Key markets are titled as such based on HTA’s concentration in the respective MSA. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 14


 
Portfolio Information Development & Redevelopment Summary and Capital Expenditures (as of June 30, 2018, dollars and GLA in thousands) Development & Redevelopment Summary - Property Information Development/Redevelopment MSA Total GLA % Leased Memorial Hermann Plaza II MOB Houston, TX 100 100 Total Stabilized 100 100 Main Line Bryn Mawr MOB Philadelphia, PA 101 61 Total Unstabilized 101 61 Development: Providence Facey MOB Orange County/Los Angeles, CA 37 100 Jackson South MOB Miami, FL 51 70 Redevelopment: Cypress Station MOB Houston, TX 53 100 Cary MOB Raleigh, NC 125 72 Total Construction in Progress 266 81% Total Development and Redevelopment 467 81% Development & Redevelopment Summary - Financial Information Completion/ Redevelopments Total Development/ Estimated Removed From Construction Construction in Redevelopment Completion Operations (1) Cost Progress Costs to Complete Memorial Hermann Plaza II MOB 2Q18 $ 21,159 $ 11,899 $ 9,260 Total Stabilized $ 21,159 $ 11,899 $ 9,260 Main Line Bryn Mawr MOB 1Q17 $ 32,891 $ 31,706 $ 1,185 Total Unstabilized $ 32,891 $ 31,706 $ 1,185 Development: Providence Facey MOB 3Q18 $ 19,588 $ 15,235 $ 4,353 Jackson South MOB 1Q20 21,634 256 21,378 Redevelopment: Cypress Station MOB 4Q19 $ 5,882 6,000 — 6,000 Cary MOB 1Q21 6,013 42,965 304 42,661 Total Construction in Progress $ 11,895 $ 90,187 $ 15,795 $ 74,392 Total Development and Redevelopment $ 11,895 $ 144,237 $ 59,400 $ 84,837 Total construction costs/gross real estate investments 2.1% Development & Redevelopment Summary - Costs Three Months Ended Six Months Ended 2Q18 2Q18 Development/redevelopment $ 11,516 $ 25,597 Capital Expenditures Three Months Ended Six Months Ended 2Q18 2Q18 Recurring capital expenditures $ 4,007 $ 6,509 Tenant improvements - 2nd generation 7,410 13,863 Lease commissions (2) 3,094 5,489 Total recurring capital expenditures $ 14,511 $ 25,861 Capital expenditures - 1st generation/acquisition 2,823 4,428 Tenant improvements - 1st generation 4,500 6,568 Total capital expenditures $ 21,834 $ 36,857 (1) Represents the net book value for buildings placed in redevelopment and removed from HTA’s same property count. (2) For the three and six months ended 2Q18, lease commissions includes approximately $0.9 million and $2.2 million, respectively, of internal initial direct costs that may be subject to the adoption of Topic 842 (Leases) effective January 1, 2019. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 15


 
Portfolio Information Same-Property Performance and NOI (as of June 30, 2018, unaudited and dollars and GLA in thousands) Same-Property Performance Three Months Ended Sequential Year-Over-Year 2Q18 1Q18 2Q17 $ Change % Change $ Change % Change Rental revenue $ 88,413 $ 87,721 $ 86,584 $ 692 0.8% $ 1,829 2.1% Tenant recoveries 23,184 24,913 25,386 (1,729) (6.9) (2,202) (8.7) Total rental income 111,597 112,634 111,970 (1,037) (0.9) (373) (0.3) Expenses 33,710 35,208 36,031 (1,498) (4.3) (2,321) (6.4) Same-Property Cash NOI $ 77,887 $ 77,426 $ 75,939 $ 461 0.6% $ 1,948 2.6% Rental Margin (1) 88.1% 88.3% 87.7% As of 2Q18 1Q18 2Q17 Number of buildings 321 321 321 GLA 15,941 15,941 15,923 Leased GLA, end of period 14,669 14,671 14,601 Leased %, end of period 92.0% 92.0% 91.7% Occupancy GLA, end of period 14,478 14,484 14,459 Occupancy %, end of period 90.8% 90.9% 90.8% NOI (2) Three Months Ended 2Q18 2Q17 Net income (loss) $ 15,657 $ (5,852) General and administrative expenses 8,725 8,472 Transaction expenses (3) 396 5,073 Depreciation and amortization expense 69,104 55,353 Impairment — 5,093 Interest expense and net change in fair value of derivative financial instruments 26,305 17,900 Loss on extinguishment of debt, net — 10,386 Income from unconsolidated joint venture (403) — Other income (5) (6) NOI $ 119,779 $ 96,419 NOI percentage growth 24.2% NOI $ 119,779 $ 96,419 Straight-line rent adjustments, net (2,377) (1,616) Amortization of (below) and above market leases/leasehold interests, net 40 126 Notes receivable interest income and other GAAP adjustments (19) (240) Cash NOI $ 117,423 $ 94,689 Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI (33,664) (11,973) Redevelopment Cash NOI (365) (1,149) Intended for sale Cash NOI (5,507) (5,628) Same-Property Cash NOI $ 77,887 $ 75,939 Same-Property Cash NOI percentage growth 2.6% (1) Rental margin presents Same-Property Cash NOI divided by Same-Property rental revenue. (2) Refer to pages 23 and 24 for the reporting definitions of NOI, Cash NOI and Same-Property Cash NOI. (3) For the three months ended 2Q17, transaction costs include $4.6 million of non-incremental costs related to the Duke acquisition. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 16


 
Portfolio Information Portfolio Diversification by Type, Historical Campus Proximity and Ownership Interests (as of June 30, 2018, dollars and GLA in thousands) Portfolio Diversification by Type % of Number of Number of % of Total Annualized Annualized Buildings States GLA (1) GLA Base Rent Base Rent Medical Office Buildings Single-tenant 119 21 6,458 26.6% $ 147,233 27.8% Multi-tenant 313 32 16,482 68.0 343,950 65.0 Other Healthcare Facilities Hospitals 15 7 954 3.9 32,864 6.2 Senior care 3 1 355 1.5 5,373 1.0 Total 450 33 24,249 100% $ 529,420 100% % of Number of Number of % of Total Annualized Annualized Buildings States GLA (1) GLA Base Rent Base Rent Net-Lease/Gross-Lease Net-lease 295 30 15,397 63.5% $ 346,338 65.4% Gross-lease 155 19 8,852 36.5 183,082 34.6 Total 450 33 24,249 100% $ 529,420 100% Historical Campus Proximity (2)(3) As of 2Q18 1Q18 4Q17 3Q17 2Q17 Off-campus aligned 26% 26% 26% 26% 26% On-campus 70 70 70 70 71 On-campus/aligned 96% 96% 96% 96% 97% Off-campus/non-aligned 4 4 4 4 3 Total 100% 100% 100% 100% 100% Ownership Interests (4) % of As of (2) Number of Annualized (1) Annualized Buildings GLA Base Rent Base Rent 2Q18 1Q18 4Q17 3Q17 2Q17 Fee Simple 308 15,035 $ 334,227 63% 62% 62 % 62 % 62 % 62 % Customary Health System Restrictions 127 8,225 173,304 33 34 34 34 34 34 Economic with Limited Restrictions 5 262 7,334 1 1 1 1 1 1 Occupancy Health System Restrictions 10 727 14,555 3 3 3 3 3 3 Leasehold Interest Subtotal 142 9,214 195,193 37 38 38 38 38 38 Total 450 24,249 $ 529,420 100% 100% 100 % 100 % 100 % 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 24 for the reporting definitions of Off-campus/non-aligned and On-campus/aligned. (4) Refer to pages 23 and 24 for the reporting definitions of Customary Health System Restrictions, Economic with Limited Restrictions, and Occupancy Health System Restrictions. 2Q 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 June 30, 2018, dollars and GLA in thousands) Historical Leased Rate (1) As of 2Q18 1Q18 4Q17 3Q17 2Q17 Total portfolio leased rate 91.9% 91.8% 91.8% 91.7% 92.0% On-campus/aligned leased rate 91.9 91.8 91.8 91.7 92.0 Off-campus/non-aligned leased rate 90.8 91.9 91.6 92.5 92.3 Total portfolio occupancy rate 90.9 90.7 91.0 90.6 91.1 New and Renewal Leasing Activity (3) Average Base Rent Tenant Leasing Total GLA Average Term (2) Expiring Starting Improvements (3) Commissions (3) 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 2Q 2018 New Leases 190 7.8 24.98 26.75 2.03 Renewal Leases 819 5.9 22.83 23.08 9.81 1.67 Total 2Q 2018 1,009 6.3 23.23 12.99 1.74 YTD 2018 New Leases 367 7.1 24.27 25.76 1.77 Renewal Leases 1,305 5.4 $ 22.78 23.17 8.01 1.44 Total YTD 2018 1,672 5.8 $ 23.26 $ 11.99 $ 1.52 Tenant Lease Expirations % of GLA of Annualized Base % of Total Number of Total GLA of Expiring Rent of Expiring Annualized Expiration Expiring Leases Expiring Leases Leases Leases Base Rent Month-to-month 131 309 1.4% $ 6,810 1.3% 2018 246 838 3.8 20,941 4.0 2019 583 2,451 11.0 62,724 11.8 2020 464 2,026 9.1 48,821 9.2 2021 568 2,846 12.8 63,561 12.0 2022 390 2,151 9.6 50,975 9.6 2023 274 1,854 8.3 40,171 7.6 2024 183 1,834 8.2 41,850 7.9 2025 168 1,140 5.1 27,284 5.2 2026 149 1,217 5.5 25,442 4.8 2027 156 2,047 9.2 54,596 10.3 Thereafter 258 3,572 16.0 86,245 16.3 Total 3,570 22,285 100% $ 529,420 100% (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. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 18


 
Portfolio Information Key Health System Relationships and Highlights (as of June 30, 2018, dollars and GLA in thousands, except as otherwise noted) Key Health System Relationships (1) Weighted Average % of % of Remaining Credit Total Leased Leased Annualized Annualized Health System Lease Term (2) Rating GLA GLA Base Rent Base Rent Baylor Scott & White Health 8 Aa3 849 3.8% $ 22,393 4.2% Highmark-Allegheny Health Network (3) 4 Baa2 914 4.1 17,730 3.3 Greenville Health System 6 A1 806 3.6 15,977 3.0 Community Health Systems (TN) 7 Caa1 702 3.2 14,298 2.7 Hospital Corporation of America 3 Ba1 455 2.0 12,135 2.3 Providence St. Joseph Health 2 Aa3 435 2.0 11,832 2.2 Tenet Healthcare System 7 B2 474 2.1 11,401 2.1 Ascension Health 5 Aa2 465 2.1 10,686 2.0 Tufts Medical Center 9 Aa2 255 1.1 10,306 2.0 Steward Health Care System 8 NR 383 1.7 9,817 1.9 Adventist Health 4 Aa2 312 1.4 6,957 1.3 Harbin Clinic 9 NR 313 1.4 6,704 1.3 Mercy Health 8 Aa3 251 1.1 6,235 1.2 Atrium Health 2 Aa3 197 0.9 5,901 1.1 UNC Health Care 8 Aa3 215 1.0 5,629 1.1 Total 7,026 31.5% $ 168,001 31.7% Health System Relationship Highlights 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 approximately 48 hospitals, 800 patient care sites, 7,800 active physicians, and 47,000 employees.  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. Highmark-Allegheny Health Network has eight hospitals and more than 200 primary and specialty care practices. They have approximately 2,400 physicians in every clinical specialty, 19,000 employees and 2,000 volunteers. Together, they provide world-class medicine to patients in their communities, across the country and around the world. 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 affiliates own, operate or lease 119 hospitals in 20 dates with approximately 20,000 licensed beds. 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. Hospital Corporation of America (Ba1), based in Nashville, Tennessee, HCA is one of the nation’s leading providers of healthcare services. They are a company comprised of locally managed facilities that includes approximately 178 hospitals, 119 freestanding surgery centers in 20 states and the United Kingdom with 38,000 active physicians and employing approximately 249,000 people. HCA is committed to the care and improvement of human life and strives to deliver high quality, cost effective healthcare in the communities they serve. (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. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 19


 
Financial Statements Condensed Consolidated Balance Sheets (unaudited and in thousands, except share and per share data) As of 2Q18 4Q17 ASSETS Real estate investments: Land $ 486,403 $ 485,319 Building and improvements 5,873,927 5,830,824 Lease intangibles 633,938 639,199 Construction in progress 21,397 14,223 7,015,665 6,969,565 Accumulated depreciation and amortization (1,146,260) (1,021,691) Real estate investments, net 5,869,405 5,947,874 Assets held for sale, net 6,916 — Investment in unconsolidated joint venture 67,870 68,577 Cash and cash equivalents 26,191 100,356 Restricted cash 13,414 18,204 Receivables and other assets, net 215,250 207,857 Other intangibles, net 103,084 106,714 Total assets $ 6,302,130 $ 6,449,582 LIABILITIES AND EQUITY Liabilities: Debt $ 2,683,531 $ 2,781,031 Accounts payable and accrued liabilities 152,516 167,852 Liabilities of assets held for sale 161 — Derivative financial instruments - interest rate swaps 548 1,089 Security deposits, prepaid rent and other liabilities 65,012 61,222 Intangible liabilities, net 64,964 68,203 Total liabilities 2,966,732 3,079,397 Commitments and contingencies Redeemable noncontrolling interests 6,644 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; 207,493,355 and 204,892,118 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively 2,075 2,049 Additional paid-in capital 4,580,373 4,508,528 Accumulated other comprehensive loss 1,367 274 Cumulative dividends in excess of earnings (1,332,759) (1,232,069) Total stockholders’ equity 3,251,056 3,278,782 Noncontrolling interests 77,698 84,666 Total equity 3,328,754 3,363,448 Total liabilities and equity $ 6,302,130 $ 6,449,582 2Q 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 Six Months Ended 2Q18 2Q17 2Q18 2Q17 Revenues: Rental income $ 173,221 $ 139,525 $ 348,788 $ 263,518 Interest and other operating income 111 354 205 708 Total revenues 173,332 139,879 348,993 264,226 Expenses: Rental 53,553 43,523 109,575 82,543 General and administrative 8,725 8,472 17,511 16,895 Transaction 396 5,073 587 5,357 Depreciation and amortization 69,104 55,353 139,496 102,409 Impairment — 5,093 4,606 5,093 Total expenses 131,778 117,514 271,775 212,297 Income before other income (expense) 41,554 22,365 77,218 51,929 Interest income (expense): Interest related to derivative financial instruments 186 (239) 128 (563) Gain on change in fair value of derivative financial instruments, net — 45 — 884 Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments 186 (194) 128 321 Interest related to debt (26,491) (17,706) (52,686) (33,764) Gain on sale of real estate, net — — — 3 Loss on extinguishment of debt, net — (10,386) — (10,418) Income from unconsolidated joint venture 403 63 973 63 Other income 5 6 40 14 Net income (loss) $ 15,657 $ (5,852) $ 25,673 $ 8,148 Net income attributable to noncontrolling interests (311) (66) (525) (521) Net income (loss) attributable to common stockholders $ 15,346 $ (5,918) $ 25,148 $ 7,627 Earnings per common share - basic: Net income (loss) attributable to common stockholders $ 0.07 $ (0.03) $ 0.12 $ 0.05 Earnings per common share - diluted: Net income (loss) attributable to common stockholders $ 0.07 $ (0.03) $ 0.12 $ 0.05 Weighted average common shares outstanding: Basic 205,241 176,464 205,155 159,218 Diluted 209,259 176,464 209,218 163,490 Dividends declared per common share $ 0.305 $ 0.300 $ 0.610 $ 0.600 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 21


 
Financial Statements Condensed Consolidated Statements of Cash Flows (unaudited and in thousands) Six Months Ended 2Q18 2Q17 Cash flows from operating activities: Net income $ 25,673 $ 8,148 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 135,177 100,536 Share-based compensation expense 5,703 3,839 Impairment 4,606 5,093 Income from unconsolidated joint venture (973) (63) Distributions from unconsolidated joint venture 975 — Gain on sale of real estate, net — (3) Loss on extinguishment of debt, net — 10,418 Change in fair value of derivative financial instruments — (884) Changes in operating assets and liabilities: Receivables and other assets, net (2,956) (2,742) Accounts payable and accrued liabilities (13,254) 14,272 Prepaid rent and other liabilities 1,157 1,907 Net cash provided by operating activities 156,108 140,521 Cash flows from investing activities: Investments in real estate (11,887) (2,202,815) Investment in unconsolidated joint venture — (68,839) Development of real estate (23,861) (348) Proceeds from the sale of real estate — 4,746 Capital expenditures (34,110) (26,022) Collection of real estate notes receivable 347 — Net cash used in investing activities (69,511) (2,293,278) Cash flows from financing activities: Borrowings on unsecured revolving credit facility 85,000 305,000 Payments on unsecured revolving credit facility (85,000) (393,000) Proceeds from unsecured senior notes — 900,000 Payments on secured mortgage loans (99,218) (74,319) Deferred financing costs — (9,400) Debt extinguishment costs — (10,391) Security deposits 222 1,964 Proceeds from issuance of common stock 72,814 1,624,222 Repurchase and cancellation of common stock (11,553) (3,339) Dividends paid (125,128) (85,683) Distributions paid to noncontrolling interest of limited partners (2,689) (2,722) Net cash (used in) provided by financing activities (165,552) 2,252,332 Net change in cash, cash equivalents and restricted cash (78,955) 99,575 Cash, cash equivalents and restricted cash - beginning of period 118,560 25,045 Cash, cash equivalents and restricted cash - end of period $ 39,605 $ 124,620 2Q 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; (ii) amortization of below and above market leases/leasehold interests; (iii) notes receivable interest income; and (iv) other GAAP adjustments. 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. 2Q 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 (i) properties which have not been owned and operated by HTA during the entire span of all periods presented and disposed properties, (ii) HTA’s share of unconsolidated joint ventures, (iii) development, redevelopment and land parcels, (iv) properties intended for disposition in the near term which have (a) been approved by the Board of Directors, (b) is actively marketed for sale, and (c) an offer has been received at prices HTA would transact and the sales process is ongoing, and (v) 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. Tenant Recoveries: Tenant reimbursement revenue, which is comprised of additional amounts recoverable from tenants for real estate taxes, common area maintenance and other certain operating expenses are recognized as revenue on a gross basis in the period in which the related recoverable expenses are incurred.  HTA accrues revenue corresponding to these expenses on a quarterly basis to adjust recorded amounts to its best estimate of the final annual amounts to be billed. Subsequent to year-end, on a calendar year basis, HTA performs reconciliations on a lease-by-lease basis and bill or credit each tenant for any differences between the estimated expenses HTA billed and the actual expenses that were incurred. 2Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 24


 


 
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