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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): October 25, 2018 (October 25, 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)
http://www.htareit.com
(Internet address)
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 October 25, 2018, Healthcare Trust of America, Inc. (NYSE: HTA) ( “HTA”) issued a press release announcing its financial results for the three and nine months ended September 30, 2018. HTA also commenced distributing its Supplemental Information for the three and nine months ended September 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: October 25, 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: October 25, 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
395483585_bestinclasslogoa04.jpg
 
PRESS RELEASE
 
Financial Contact:
 
Robert A. Milligan
 
Chief Financial Officer
 
480.998.3478
HEALTHCARE TRUST OF AMERICA, INC. REPORTS THIRD QUARTER 2018 EARNINGS
Normalized FFO of $0.41 Per Diluted Share
Same-Property Cash NOI Growth of 2.5%
Completed $306 Million of Dispositions in Non-Core Properties

Scottsdale, Arizona (October 25, 2018) - Healthcare Trust of America, Inc. (NYSE: HTA) (“HTA”) announced results for the three and nine months ended September 30, 2018.

Operating
Third Quarter 2018:
Net Income Attributable to Common Stockholders: Increased $159.2 million, to $173.0 million, compared to Q3 2017. Earnings per diluted share increased $0.75, to $0.82 per diluted share, compared to Q3 2017.
Funds From Operations (“FFO”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), decreased (3.4)%, to $81.4 million, compared to Q3 2017. FFO per diluted share decreased (7.3)%, to $0.38 per diluted share, compared to Q3 2017.
Normalized FFO: Increased 0.8%, to $86.1 million, compared to Q3 2017. Normalized FFO per diluted share decreased (2.4)%, to $0.41 per diluted share, compared to Q3 2017.
Normalized Funds Available for Distribution (“FAD”): Decreased (8.0)%, to $68.8 million, compared to Q3 2017.
Same-Property Cash Net Operating Income (“NOI”): Increased $2.7 million, or 2.5%, to $108.8 million, compared to Q3 2017.

Year-to-Date 2018:
Net Income Attributable to Common Stockholders: Increased $176.7 million, to $198.1 million, compared to 2017. Earnings per diluted share increased $0.82, to $0.94 per diluted share, compared to 2017.
FFO: As defined by NAREIT, increased 26.0%, to $250.4 million, compared to 2017. FFO per diluted share increased 6.3%, to $1.19 per diluted share, compared to 2017.
Normalized FFO: Increased 19.0%, to $256.2 million, compared to 2017. Normalized FFO per diluted share increased 0.8%, to $1.22 per diluted share, compared to 2017.
Normalized FAD: Increased 15.3%, to $217.0 million, compared to 2017.
Same-Property Cash NOI: Increased $5.6 million, or 2.4%, to $233.2 million, compared to 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth was 2.7%.

Portfolio
Leasing: During the three months ended September 30, 2018, HTA entered into new and renewal leases on approximately 532,000 square feet of gross leasable area (“GLA”), or 2.3%, of its portfolio. Tenant retention for the Same-Property portfolio was 82% by GLA for the quarter, which included approximately 381,000 square feet of GLA of total expiring leases. Re-leasing spreads for renewal leases on a cash basis were approximately 3.7%. Renewal leases included tenant improvements of $1.53 per square foot of GLA per year of the lease term and less than one day of free rent per year of the lease term during the three months ended September 30, 2018.
Leased Rate: As of September 30, 2018, HTA had a leased rate for its portfolio of 92.1% by GLA and an occupancy rate of 90.9% by GLA.
Forest Park Update: During the three months ended September 30, 2018, HTA entered into approximately 41,000 square feet of GLA of new leases on the former Forest Park Dallas campus (the “Campus”), bringing total new leasing for the Campus to 81,000 square feet of GLA for the nine months ended September 30, 2018. The total leased rate for the Campus was approximately 84% as of September 30, 2018.






Dispositions: During the three months ended September 30, 2018, HTA completed the disposition of 19 MOBs, primarily located in Greenville, South Carolina for an aggregate gross sales price of $305.9 million and totaling approximately 1.1 million square feet of GLA, generating gains of approximately $166.4 million, and consisted of the following:
In August 2018, HTA completed the disposition of its Greenville, South Carolina MOB portfolio (the “Greenville Disposition”), which consisted of 17 MOBs for an aggregate gross sales price of $294.3 million in two transactions, including (i) the sale of a single MOB which HTA classified as held for sale as of June 30, 2018, and (ii) the Greenville Disposition which consisted of approximately 965,000 square feet of GLA.
Additionally, HTA completed the disposition of two MOBs located in Derry, New Hampshire and North Adams, Massachusetts for an aggregate gross sales price of $11.6 million, totaling approximately 120,000 square feet of GLA.
Development/Redevelopment: During the nine months ended September 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 Raleigh, North Carolina. These projects will have total expected construction costs of approximately $70.6 million and are approximately 78% pre-leased to major health systems.
Investments: During the nine months ended September 30, 2018, HTA invested approximately $13.9 million to acquire three MOBs of approximately 60,000 square feet of GLA in the key market of Raleigh, North Carolina. In addition, HTA invested approximately $3.9 million to consolidate its ownership interests in several other MOBs.

2017 Investment Performance
Cash NOI: During the three months ended September 30, 2018, HTA generated $36.4 million of Cash NOI from its 2017 investments, including its investment in its unconsolidated joint venture. As of September 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 part of the 2017 investments, HTA acquired seven development projects that were under construction and not stabilized at the date of acquisition. During the quarter, HTA completed the remaining development of the Providence Facey MOB in Los Angeles, California. This MOB is approximately 37,000 square feet of GLA and is 100% pre-leased.

Balance Sheet and Capital Markets
Balance Sheet: As of September 30, 2018, HTA had total leverage of 29.7%, measured as debt less cash and cash equivalents to total capitalization, and 5.3x, 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 $1.2 billion, including $994.5 million of availability under HTA’s unsecured revolving credit facility and $225.5 million of cash and cash equivalents.
Debt: In August 2018, HTA prepaid approximately $72.6 million of its fixed and variable rate mortgages, including the settlement of three cash flow hedges, utilizing net proceeds from the Greenville Disposition to do so. Additionally, in August 2018, HTA’s operating partnership, HTALP, entered into a modification of its $200.0 million unsecured term loan previously due in 2023. This modification decreased pricing at HTA’s current credit rating by 65 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.
Stock Repurchase Plan: In August 2018, HTA’s Board of Directors approved a stock repurchase plan authorizing HTA to purchase up to $300.0 million of its common stock from time to time. During the nine months ended September 30, 2018, HTA repurchased 628,002 shares of its common stock at an average price of $26.25 per share, for an aggregate amount of approximately $16.5 million. As of September 30, 2018, the remaining amount of common stock available for repurchase under the stock repurchase plan was approximately $283.5 million.

Impact of Future Accounting Standards
Topic 842 Leases: In February 2016, the Financial Accounting Standards Board issued Topic 842, which is effective for HTA as of January 1, 2019. As part of Topic 842, companies are required to expense initial direct costs that are currently capitalized. For the nine months ended September 30, 2018, HTA capitalized approximately $3.7 million of internal costs related to leasing activities. Utilizing a traditional third party leasing commission structure of 3% of gross lease value, total leasing commissions would have totaled over $9 million during the nine months ended September 30, 2018.
As of January 1, 2019, these external costs, which are primarily external broker fees and external legal fees, will be recorded in HTA’s consolidated statement of operations as additional general and administrative expenses. HTA estimates the range of these expenses to be approximately $6 million to $8 million on an annualized basis and effecting Earnings Per Share and corresponding FFO by approximately $0.03 to $0.04 per share on an annualized basis.






Subsequent Events
Debt: Subsequent to September 30, 2018, HTA prepaid approximately $67.2 million of its fixed rate mortgages. HTA did not incur any prepayment fees related to this transaction.
Dividends: On October 25, 2018, HTA’s Board of Directors announced a quarterly dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on January 9, 2019 to stockholders of record of its common stock and holders of its OP Units on January 2, 2019.
Stock Repurchase Plan: Subsequent to September 30, 2018, HTA repurchased 289,519 shares of its common stock at an average price of $25.69 per share, for an aggregate amount of approximately $7.4 million under its stock repurchase plan.

Financial Results - Third Quarter 2018
Rental Income
Rental income decreased (0.2)% to $175.0 million for the three months ended September 30, 2018, compared to $175.4 million for the three months ended September 30, 2017.
Net Income
Net income increased $162.4 million, to $176.3 million for the three months ended September 30, 2018, compared to $14.0 million for the three months ended September 30, 2017.
FFO
FFO, as defined by NAREIT, was $0.38 per diluted share, or $81.4 million, for the three months ended September 30, 2018, compared to $0.41 per diluted share, or $84.2 million, for the three months ended September 30, 2017.
Normalized FFO
Normalized FFO was $0.41 per diluted share, or $86.1 million, for the three months ended September 30, 2018, compared to $0.42 per diluted share, or $85.4 million, for the three months ended September 30, 2017.
Normalized FAD
Normalized FAD decreased (8.0)% to $68.8 million, for the three months ended September 30, 2018, compared to $74.8 million for the three months ended September 30, 2017.
NOI
NOI decreased (0.3)% to $119.3 million for the three months ended September 30, 2018, compared to $119.7 million for the three months ended September 30, 2017.
Same-Property Cash NOI
Same-Property Cash NOI increased $2.7 million, or 2.5%, to $108.8 million, for the three months ended September 30, 2018, compared to $106.2 million for the three months ended September 30, 2017.
General and Administrative Expenses
General and administrative expenses were $8.8 million for the three months ended September 30, 2018, compared to $8.3 million for the three months ended September 30, 2017.
Interest Expense
Total interest expense was $24.8 million for the three months ended September 30, 2018, compared to $26.2 million for the three months ended September 30, 2017.
Disposition Activity
During the three months ended September 30, 2018, HTA completed the disposition of 19 MOBs, primarily located in Greenville, South Carolina for an aggregate gross sales price of $305.9 million and totaling approximately 1.1 million square feet of GLA, generating gains of approximately $166.4 million.
Tenant Retention
Tenant retention for the Same-Property portfolio was 82% by GLA for the quarter, which included approximately 381,000 square feet of GLA of expiring leases.






Financial Results - Year-to-Date 2018
Rental Income
Rental income increased 19.3% to $523.8 million for the nine months ended September 30, 2018, compared to $438.9 million for the nine months ended September 30, 2017.
Net Income
Net income increased $179.9 million to $202.0 million for the nine months ended September 30, 2018, compared to $22.1 million for the nine months ended September 30, 2017.
FFO
FFO, as defined by NAREIT, was $1.19 per diluted share, or $250.4 million, for the nine months ended September 30, 2018, compared to $1.12 per diluted share, or $198.7 million, for the nine months ended September 30, 2017.
Normalized FFO
Normalized FFO was $1.22 per diluted share, or $256.2 million, for the nine months ended September 30, 2018, compared to $1.21 per diluted share, or $215.2 million, for the nine months ended September 30, 2017.
Normalized FAD
Normalized FAD increased 15.3% to $217.0 million, for the nine months ended September 30, 2018, compared to $188.3 million for the nine months ended September 30, 2017.
NOI
NOI increased 19.1% to $358.8 million for the nine months ended September 30, 2018, compared to $301.3 million for the nine months ended September 30, 2017.
Same-Property Cash NOI
Same-Property Cash NOI increased $5.6 million, or 2.4%, to $233.2 million, for the nine months ended September 30, 2018, compared to $227.6 million for the nine months ended September 30, 2017. Excluding the MOBs located on HTA’s Forest Park Dallas campus, Same-Property Cash NOI growth was 2.7%.
General and Administrative Expenses
General and administrative expenses were $26.3 million for the nine months ended September 30, 2018, compared to $25.2 million for the nine months ended September 30, 2017.
Interest Expense
Total interest expense was $77.4 million for the nine months ended September 30, 2018, compared to $59.6 million for the nine months ended September 30, 2017.
Investment Activity
During the nine months ended September 30, 2018, HTA invested $13.9 million to acquire three MOBs of approximately 60,000 square feet of GLA in the key market of Raleigh, North Carolina. 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 (which includes leases which have been executed, but which have not yet commenced) was 92.1% by GLA as of September 30, 2018. The occupancy rate of HTA’s portfolio was 90.9% by GLA as of September 30, 2018. Tenant retention for the Same-Property portfolio was 83% by GLA year-to-date, which included approximately 1.7 million square feet of GLA of expiring leases.
Credit Rated Tenants
Investment grade rated tenants as a percent of annualized base rent was 46% as of September 30, 2018. Additionally, 59% of HTA’s annualized base rent as of September 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 September 30, 2018, HTA’s in-house property management and leasing platform operated approximately 21.7 million square feet of GLA, or 93%, of its total portfolio.






About Healthcare Trust of America, Inc.
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 23.2 million square feet of GLA, with $6.8 billion invested primarily in MOBs. 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 outperformed the S&P 500 and US REIT indices. More information about HTA can be found on the Company’s Website (www.htareit.com), 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, October 26, 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 nine months ended September 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: 10125150
Available October 26, 2018 (one hour after the end of the conference call) to November 26, 2018 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time)






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
(Unaudited)
 
 
September 30, 2018
 
December 31, 2017
ASSETS
 
 
 
 
Real estate investments:
 
 
 
 
Land
 
$
483,541

 
$
485,319

Building and improvements
 
5,743,439

 
5,830,824

Lease intangibles
 
604,215

 
639,199

Construction in progress
 
27,273

 
14,223

 
 
6,858,468

 
6,969,565

Accumulated depreciation and amortization
 
(1,151,490
)
 
(1,021,691
)
Real estate investments, net
 
5,706,978

 
5,947,874

Investment in unconsolidated joint venture
 
67,592

 
68,577

Cash and cash equivalents
 
225,518

 
100,356

Restricted cash
 
14,639

 
18,204

Receivables and other assets, net
 
213,482

 
207,857

Other intangibles, net
 
100,475

 
106,714

Total assets
 
$
6,328,684

 
$
6,449,582

LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Debt
 
$
2,609,659

 
$
2,781,031

Accounts payable and accrued liabilities
 
160,246

 
167,852

Derivative financial instruments - interest rate swaps
 

 
1,089

Security deposits, prepaid rent and other liabilities
 
55,753

 
61,222

Intangible liabilities, net
 
62,887

 
68,203

Total liabilities
 
2,888,545

 
3,079,397

Commitments and contingencies
 
 
 
 
Redeemable noncontrolling interests
 
6,610

 
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; 207,231,171 and 204,892,118 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively
 
2,072

 
2,049

Additional paid-in capital
 
4,574,913

 
4,508,528

Accumulated other comprehensive income
 
648

 
274

Cumulative dividends in excess of earnings
 
(1,224,006
)
 
(1,232,069
)
Total stockholders’ equity
 
3,353,627

 
3,278,782

Noncontrolling interests
 
79,902

 
84,666

Total equity
 
3,433,529

 
3,363,448

Total liabilities and equity
 
$
6,328,684

 
$
6,449,582






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
Rental income
$
175,038

 
$
175,431

 
$
523,826

 
$
438,949

Interest and other operating income
97

 
563

 
302

 
1,271

Total revenues
175,135

 
175,994

 
524,128

 
440,220

Expenses:
 
 
 
 
 
 
 
Rental
55,789

 
56,331

 
165,364

 
138,874

General and administrative
8,770

 
8,283

 
26,281

 
25,178

Transaction
346

 
261

 
933

 
5,618

Depreciation and amortization
70,568

 
70,491

 
210,064

 
172,900

Impairment
4,281

 

 
8,887

 
5,093

Total expenses
139,754

 
135,366

 
411,529

 
347,663

Income before other income (expense)
35,381

 
40,628

 
112,599

 
92,557

Interest income (expense):
 
 
 
 
 
 
 
Interest related to derivative financial instruments
169

 
(264
)
 
297

 
(827
)
Gain on change in fair value of derivative financial instruments, net

 

 

 
884

Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments
169

 
(264
)
 
297

 
57

Interest related to debt
(25,003
)
 
(25,924
)
 
(77,689
)
 
(59,688
)
Gain on sale of real estate, net
166,372

 

 
166,372

 
3

Loss on extinguishment of debt, net
(1,092
)
 
(774
)
 
(1,092
)
 
(11,192
)
Income from unconsolidated joint venture
432

 
318

 
1,405

 
381

Other income (expense)
89

 
(27
)
 
129

 
(13
)
Net income
$
176,348

 
$
13,957

 
$
202,021

 
$
22,105

Net income attributable to noncontrolling interests
(3,362
)
 
(194
)
 
(3,887
)
 
(715
)
Net income attributable to common stockholders
$
172,986

 
$
13,763

 
$
198,134

 
$
21,390

Earnings per common share - basic:
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
0.83

 
$
0.07

 
$
0.96

 
$
0.12

Earnings per common share - diluted:
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
0.82

 
$
0.07

 
$
0.94

 
$
0.12

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
207,513

 
200,674

 
205,950

 
173,189

Diluted
211,444

 
204,795

 
209,968

 
177,410

Dividends declared per common share
$
0.310

 
$
0.305

 
$
0.920

 
$
0.905






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Nine Months Ended September 30,
 
2018
 
2017
Cash flows from operating activities:
 
 
 
Net income
$
202,021

 
$
22,105

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation, amortization and other
203,550

 
169,057

Share-based compensation expense
7,830

 
5,493

Impairment
8,887

 
5,093

Income from unconsolidated joint venture
(1,405
)
 
(381
)
Distributions from unconsolidated joint venture
1,680

 

Gain on sale of real estate, net
(166,372
)
 
(3
)
Loss on extinguishment of debt, net
1,092

 
11,192

Change in fair value of derivative financial instruments

 
(884
)
Changes in operating assets and liabilities:
 
 
 
Receivables and other assets, net
(7,820
)
 
(19,854
)
Accounts payable and accrued liabilities
(5,932
)
 
29,566

Prepaid rent and other liabilities
(2,780
)
 
7,158

Net cash provided by operating activities
240,751


228,542

Cash flows from investing activities:
 
 
 
Investments in real estate
(17,389
)
 
(2,357,570
)
Investment in unconsolidated joint venture

 
(68,839
)
Development of real estate
(29,593
)
 
(19,163
)
Proceeds from the sale of real estate
302,440

 
4,746

Capital expenditures
(61,136
)
 
(42,990
)
Collection of real estate notes receivable
524

 

Net cash provided by (used in) investing activities
194,846


(2,483,816
)
Cash flows from financing activities:
 
 
 
Borrowings on unsecured revolving credit facility
145,000

 
515,000

Payments on unsecured revolving credit facility
(145,000
)
 
(528,000
)
Proceeds from unsecured senior notes

 
900,000

Payments on secured mortgage loans
(173,212
)
 
(75,444
)
Deferred financing costs
(782
)
 
(16,902
)
Debt extinguishment costs
(1,909
)
 
(10,391
)
Security deposits
499

 
1,932

Proceeds from issuance of common stock
72,814

 
1,624,222

Issuance of operating partnership units
411

 

Repurchase and cancellation of common stock
(19,431
)
 
(3,413
)
Dividends paid
(188,414
)
 
(145,877
)
Distributions paid to noncontrolling interest of limited partners
(3,976
)
 
(4,019
)
Net cash (used in) provided by financing activities
(314,000
)

2,257,108

Net change in cash, cash equivalents and restricted cash
121,597

 
1,834

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

 
25,045

Cash, cash equivalents and restricted cash - end of period
$
240,157

 
$
26,879






HEALTHCARE TRUST OF AMERICA, INC.
NOI, CASH NOI AND SAME-PROPERTY CASH NOI
(In thousands)
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net income
$
176,348

 
$
13,957

 
$
202,021

 
$
22,105

General and administrative expenses
8,770

 
8,283

 
26,281

 
25,178

Transaction expenses (1)
346

 
261

 
933

 
5,618

Depreciation and amortization expense
70,568

 
70,491

 
210,064

 
172,900

Impairment
4,281

 

 
8,887

 
5,093

Interest expense and net change in fair value of derivative financial instruments
24,834

 
26,188

 
77,392

 
59,631

Gain on sale of real estate, net
(166,372
)
 

 
(166,372
)
 
(3
)
Loss on extinguishment of debt, net
1,092

 
774

 
1,092

 
11,192

Income from unconsolidated joint venture
(432
)
 
(318
)
 
(1,405
)
 
(381
)
Other (income) expense
(89
)
 
27

 
(129
)
 
13

NOI
$
119,346

 
$
119,663

 
$
358,764

 
$
301,346

NOI percentage growth
(0.3
)%
 
 
 
19.1
%
 
 
 
 
 
 
 
 
 
 
NOI
$
119,346

 
$
119,663

 
$
358,764

 
$
301,346

Straight-line rent adjustments, net
(2,746
)
 
(3,009
)
 
(8,289
)
 
(5,834
)
Amortization of (below) and above market leases/leasehold interests, net
(65
)
 
214

 
190

 
246

Notes receivable interest income and other GAAP adjustments
(33
)
 
(588
)
 
(218
)
 
(1,163
)
Cash NOI
$
116,502

 
$
116,280

 
$
350,447

 
$
294,595

Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI
(6,065
)
 
(7,337
)
 
(112,557
)
 
(59,865
)
Redevelopment Cash NOI
(607
)
 
(1,540
)
 
(1,923
)
 
(4,072
)
Intended for sale Cash NOI
(1,007
)
 
(1,243
)
 
(2,815
)
 
(3,063
)
Same-Property Cash NOI (2)
$
108,823

 
$
106,160

 
$
233,152

 
$
227,595

Same-Property Cash NOI percentage growth
2.5
 %
 
 
 
2.4
%
 
 
 
 
 
 
 
 
 
 
(1) For the nine months ended September 30, 2017, transaction costs included $4.6 million of non-incremental costs related to the Duke acquisition.
(2) Same-Property includes 403 and 317 buildings for the three and nine months ended September 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 September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net income attributable to common stockholders
$
172,986

 
$
13,763

 
$
198,134

 
$
21,390

Depreciation and amortization expense related to investments in real estate
70,004

 
70,021

 
208,445

 
171,678

Gain on sale of real estate, net
(166,372
)
 

 
(166,372
)
 
(3
)
Impairment
4,281

 

 
8,887

 
5,093

Proportionate share of joint venture depreciation and amortization
463

 
464

 
1,277

 
506

FFO attributable to common stockholders
$
81,362

 
$
84,248

 
$
250,371

 
$
198,664

Transaction expenses
346

 
261

 
789

 
975

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

 

 

 
(884
)
Loss on extinguishment of debt, net
1,092

 
774

 
1,092

 
11,192

Noncontrolling income from partnership units included in diluted shares
3,344

 
166

 
3,822

 
635

Other normalizing items, net (1)

 

 
144

 
4,643

Normalized FFO attributable to common stockholders
$
86,144

 
$
85,449

 
$
256,218

 
$
215,225

Other (income) expense
(89
)
 
27

 
(129
)
 
13

Non-cash compensation expense
2,127

 
1,654

 
7,830

 
5,493

Straight-line rent adjustments, net
(2,746
)
 
(3,009
)
 
(8,289
)
 
(5,834
)
Amortization of (below) and above market leases/leasehold interests and corporate assets, net
499

 
683

 
1,809

 
1,467

Deferred revenue - tenant improvement related
(1
)
 
(12
)
 
(70
)
 
(23
)
Amortization of deferred financing costs and debt discount/premium, net
1,277

 
1,290

 
3,857

 
2,929

Recurring capital expenditures, tenant improvements and leasing commissions
(18,397
)
 
(11,315
)
 
(44,258
)
 
(31,020
)
Normalized FAD attributable to common stockholders
$
68,814

 
$
74,767

 
$
216,968

 
$
188,250

 
 
 
 
 
 
 
 
Net income attributable to common stockholders per diluted share
$
0.82

 
$
0.07

 
$
0.94

 
$
0.12

FFO adjustments per diluted share, net
(0.44
)
 
0.34

 
0.25

 
1.00

FFO attributable to common stockholders per diluted share
$
0.38

 
$
0.41

 
$
1.19

 
$
1.12

Normalized FFO adjustments per diluted share, net
0.03

 
0.01

 
0.03

 
0.09

Normalized FFO attributable to common stockholders per diluted share
$
0.41

 
$
0.42

 
$
1.22

 
$
1.21

 
 
 
 
 
 
 
 
Weighted average diluted common shares outstanding
211,444

 
204,795

 
209,968

 
177,410

 
 
 
 
 
 
 
 
(1) For the nine months ended September 30, 2017, other normalizing items included $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.
HTA computes FFO in accordance with the current standards established by NAREIT. NAREIT defines FFO as net income or loss attributable to common stockholders (computed in accordance with GAAP), excluding gains or losses from sales of real estate property and impairment write-downs of depreciable assets, plus depreciation and amortization related to investments in real estate, and after adjustments for unconsolidated partnerships and joint ventures. HTA presents this non-GAAP financial measure because it considers it an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Historical cost accounting assumes that the value of real estate assets diminishes ratably over time. Since real estate values have historically risen or fallen based on market conditions, many industry investors have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Because FFO excludes depreciation and amortization unique to real estate, among other items, it provides a perspective not immediately apparent from net income or loss attributable to common stockholders.





HTA computes Normalized FFO, which excludes from FFO: (i) transaction expenses; (ii) gain or loss on change in fair value of derivative financial instruments; (iii) gain or loss on extinguishment of debt; (iv) noncontrolling income or loss from partnership units included in diluted shares; and (v) other normalizing items, which include items that are unusual and infrequent in nature. HTA presents this non-GAAP financial measure because it allows for the comparison of its operating performance to other REITs and between periods on a consistent basis. HTA’s methodology for calculating Normalized FFO may be different from the methods utilized by other REITs and, accordingly, may not be comparable to other REITs. Normalized FFO should not be considered as an alternative to net income or loss attributable to common stockholders (computed in accordance with GAAP) as an indicator of its financial performance, nor is it indicative of cash available to fund cash needs. Normalized FFO should be reviewed in connection with other GAAP measurements.
HTA also computes Normalized FAD, which excludes from Normalized FFO: (i) other income or expense; (ii) non-cash compensation expense; (iii) straight-line rent adjustments; (iv) amortization of below and above market leases/leasehold interests and corporate assets; (v) amortization of deferred financing costs and debt premium/discount; and (vi) recurring capital expenditures, tenant improvements and leasing commissions. HTA believes this non-GAAP financial measure provides a meaningful supplemental measure of its operating performance. Normalized FAD should not be considered as an alternative to net income or loss attributable to common stockholders (computed in accordance with GAAP) as an indicator of its financial performance, nor is it indicative of cash available to fund cash needs. Normalized FAD should be reviewed in connection with other GAAP measurements.


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Section 3: EX-99.2 (EXHIBIT 99.2)

ex992supplementa01
ExhibitExhibit 99.2 99.2 99.1Exhibit 99.2 MISSION MEDICAL OFFICE PORTFOIO MISSION VIEJO, CA


 
Table of Contents Company Overview Company Information 3 Third 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. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 2


 
Company Information Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings (“MOBs”) in the United States, comprising approximately 23.2 million square feet of gross leasable area (“GLA”), with $6.8 billion invested primarily in MOBs. 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 outperformed the S&P 500 and US REIT indices. More information about HTA can be found on the Company’s Website (www.htareit.com), 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 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 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 3


 
HTA: LARGEST DEDICATED OWNER OF MEDICAL OFFICE 23+ 93% ~16M SF 5.3x 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 9 MARKETS ~ 1M+ SF 15 MARKETS > 500K SF SF Market Invested $’s 965K Boston, MA 397M Indianapolis, IN 977K Harford/New Haven, CT 278M Pittsburgh, PA 833K Albany, NY 170M 333K White Plains, NY 126M Boston, MA 3.1M TOTAL NORTHEAST $971M Hartford, CT 1.4M Indianapolis, IN 282M 1.1M Pittsburgh, PA 149M 323K Columbus, OH 77M 2.8M TOTAL MIDWEST $508M SF Market Invested $’s 1.1M Atlanta, GA 325M Phoenix, AZ 668K Raleigh, NC 200M Atlanta, GA 335K Charlotte, NC 95M Houston, TX 290K Charleston, SC 75M Dallas, TX Miami, FL 2.4M TOTAL SOUTHEAST $695M SF Market Invested $’s SF Market Invested $’s 2.1M Dallas, TX 843M 954K Tampa, FL 351M 1.6M Houston, TX 431M 994K Miami, FL 229M 409K Austin, TX 164M 512K Orlando, FL 156M 4.1M TOTAL TEXAS $1,438M 2.5M TOTAL FLORIDA $736M FULL SERVICE INVESTMENT GRADE OPERATING PLATFORM FOCUS AND SCALE DIVERSIFICATION BALANCE SHEET Best in Class 94% of Portfolio in 434 Buildings throughout BBB/Baa2 Full Service Key Markets & 32 States Credit Rating Operating Platform Top 75 MSAs Top Tenant < 4.4% of ABR 5.3x Property Management Platform with Scale Creates: Net Debt/ Top Market < 10.1% of ABR Adjusted EBITDAre Leasing Local Expertise Size & Diversification $1.2B Facilities & Engineering Strong Relationships provides stability of Liquidity cash flows Construction & Operational Benefits Development Access to Better Performing Markets 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 4


 
FINANCIAL PERFORMANCE: DECADE OF VALUE CREATION Normalized FFO/Share Same Store Growth $0.43 4% $0.42 $0.42 $0.41 $0.41 $0.41 $0.41 $0.41 $0.41 3.3% $0.40 $0.40 $0.40 3.2% 3.1% 3.1% 3.1% $0.39 $0.39 3.0% 3% 2.9% 2.9% $0.39 2.8% 2.9% 2.6% HTA 2.5% Avg. $0.37 2.3% 2.4% REIT MOB Avg. $0.35 2% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Steady & Reliable Dividend Top Health Systems $1.25 $1.24 » Adventist Health » Hospital Corporation of America » Atrium Health » Mercy Health $1.23 $1.22 $1.22 $1.22 $1.22 » Ascension Health » Providence St. Joseph Health $1.21 » Baylor Scott & White Health » Steward Health Care System $1.20 $1.20 $1.20 $1.20 » Boston Medical Center » Tenet Healthcare System $1.19 » Community Health Systems » Trinity Health $1.18 $1.18 $1.18 » Duke Health » Tufts Medical Center $1.17 » Highmark-Allegheny Health Network » UNC Health Care 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 DELIVERING SHAREHOLDER VALUE 8.4% Annualized Average Total Returns Since First Distribution in 2006 to September 30, 2018 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 5


 
Company Overview Operating Third Quarter 2018: • Net Income Attributable to Common Stockholders: Increased $159.2 million, to $173.0 million, compared to Q3 2017. Earnings per diluted share increased $0.75, to $0.82 per diluted share, compared to Q3 2017. • Funds From Operations (“FFO”): As defined by the National Association of Real Estate Investment Trusts (“NAREIT”), decreased (3.4)%, to $81.4 million, compared to Q3 2017. FFO per diluted share decreased (7.3)%, to $0.38 per diluted share, compared to Q3 2017. • Normalized FFO: Increased 0.8%, to $86.1 million, compared to Q3 2017. Normalized FFO per diluted share decreased (2.4)%, to $0.41 per diluted share, compared to Q3 2017. • Normalized Funds Available for Distribution (“FAD”): Decreased (8.0)%, to $68.8 million, compared to Q3 2017. • Same-Property Cash Net Operating Income (“NOI”): Increased $2.7 million, or 2.5%, to $108.8 million, compared to Q3 2017. Year-to-Date 2018: • Net Income Attributable to Common Stockholders: Increased $176.7 million, to $198.1 million, compared to 2017. Earnings per diluted share increased $0.82, to $0.94 per diluted share, compared to 2017. • FFO: As defined by NAREIT, increased 26.0%, to $250.4 million, compared to 2017. FFO per diluted share increased 6.3%, to $1.19 per diluted share, compared to 2017. • Normalized FFO: Increased 19.0%, to $256.2 million, compared to 2017. Normalized FFO per diluted share increased 0.8%, to $1.22 per diluted share, compared to 2017. • Normalized FAD: Increased 15.3%, to $217.0 million, compared to 2017. Same-Property Cash NOI: Increased $5.6 million, or 2.4%, to $233.2 million, compared to 2017. Excluding the MOBs located on its Forest Park Dallas campus, Same-Property Cash NOI growth was 2.7%. Portfolio • Leasing: During the three months ended September 30, 2018, HTA entered into new and renewal leases on approximately 532,000 square feet of gross leasable area (“GLA”), or 2.3%, of its portfolio. Tenant retention for the Same-Property portfolio was 82% by GLA for the quarter, which included approximately 381,000 square feet of GLA of total expiring leases. Re-leasing spreads for renewal leases on a cash basis were approximately 3.7%. Renewal leases included tenant improvements of $1.53 per square foot of GLA per year of the lease term and less than one day of free rent per year of the lease term during the three months ended September 30, 2018. • Leased Rate: As of September 30, 2018, HTA had a leased rate for its portfolio of 92.1% by GLA and an occupancy rate of 90.9% by GLA. • Forest Park Update: During the three months ended September 30, 2018, HTA entered into approximately 41,000 square feet of GLA of new leases on the former Forest Park Dallas campus (the “Campus”), bringing total new leasing for the Campus to 81,000 square feet of GLA for the nine months ended September 30, 2018. The total leased rate for the Campus was approximately 84% as of September 30, 2018. • Dispositions: During the three months ended September 30, 2018, HTA completed the disposition of 19 MOBs, primarily located in Greenville, South Carolina for an aggregate gross sales price of $305.9 million and totaling approximately 1.1 million square feet of GLA, generating gains of approximately $166.4 million, and consisted of the following: ◦ In August 2018, HTA completed the disposition of its Greenville, South Carolina MOB portfolio (the “Greenville Disposition”), which consisted of 17 MOBs for an aggregate gross sales price of $294.3 million in two transactions, including (i) the sale of a single MOB which HTA classified as held for sale as of June 30, 2018, and (ii) the Greenville Disposition which consisted of approximately 965,000 square feet of GLA. ◦ Additionally, HTA completed the disposition of two MOBs located in Derry, New Hampshire and North Adams, Massachusetts for an aggregate gross sales price of $11.6 million, totaling approximately 120,000 square feet of GLA. • Development/Redevelopment: During the nine months ended September 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 Raleigh, North Carolina. These projects will have total expected construction costs of approximately $70.6 million and are approximately 78% pre-leased to major health systems. • Investments: During the nine months ended September 30, 2018, HTA invested approximately $13.9 million to acquire three MOBs of approximately 60,000 square feet of GLA in the key market of Raleigh, North Carolina. In addition, HTA invested approximately $3.9 million to consolidate its ownership interests in several other MOBs. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 6


 
Company Overview 2017 Investment Performance • Cash NOI: During the three months ended September 30, 2018, HTA generated $36.4 million of Cash NOI from its 2017 investments, including its investment in its unconsolidated joint venture. As of September 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 part of the 2017 investments, HTA acquired seven development projects that were under construction and not stabilized at the date of acquisition. During the quarter, HTA completed the remaining development of the Providence Facey MOB in Los Angeles, California. This MOB is approximately 37,000 square feet of GLA and is 100% pre-leased. Balance Sheet and Capital Markets • Balance Sheet: As of September 30, 2018, HTA had total leverage of 29.7%, measured as debt less cash and cash equivalents to total capitalization, and 5.3x, 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 $1.2 billion, including $994.5 million of availability under HTA’s unsecured revolving credit facility and $225.5 million of cash and cash equivalents. • Debt: In August 2018, HTA prepaid approximately $72.6 million of its fixed and variable rate mortgages, including the settlement of three cash flow hedges, utilizing net proceeds from the Greenville Disposition to do so. Additionally, in August 2018, HTA’s operating partnership, HTALP, entered into a modification of its $200.0 million unsecured term loan previously due in 2023. This modification decreased pricing at HTA’s current credit rating by 65 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. • Stock Repurchase Plan: In August 2018, HTA’s Board of Directors approved a stock repurchase plan authorizing HTA to purchase up to $300.0 million of its common stock from time to time. During the nine months ended September 30, 2018, HTA repurchased 628,002 shares of its common stock at an average price of $26.25 per share, for an aggregate amount of approximately $16.5 million. As of September 30, 2018, the remaining amount of common stock available for repurchase under the stock repurchase plan was approximately $283.5 million. Impact of Future Accounting Standards • Topic 842 Leases: In February 2016, the Financial Accounting Standards Board issued Topic 842, which is effective for HTA as of January 1, 2019. As part of Topic 842, companies are required to expense initial direct costs that are currently capitalized. For the nine months ended September 30, 2018, HTA capitalized approximately $3.7 million of internal costs related to leasing activities. Utilizing a traditional third party leasing commission structure of 3% of gross lease value, total leasing commissions would have totaled over $9 million during the nine months ended September 30, 2018. As of January 1, 2019, these external costs, which are primarily external broker fees and external legal fees, will be recorded in HTA’s consolidated statement of operations as additional general and administrative expenses. HTA estimates the range of these expenses to be approximately $6 million to $8 million on an annualized basis and effecting Earnings Per Share and corresponding FFO by approximately $0.03 to $0.04 per share on an annualized basis. Subsequent Events • Debt: Subsequent to September 30, 2018, HTA prepaid approximately $67.2 million of its fixed rate mortgages. HTA did not incur any prepayment fees related to this transaction. • Dividends: On October 25, 2018, HTA’s Board of Directors announced a quarterly dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on January 9, 2019 to stockholders of record of its common stock and holders of its OP Units on January 2, 2019. • Stock Repurchase Plan: Subsequent to September 30, 2018, HTA repurchased 289,519 shares of its common stock at an average price of $25.69 per share, for an aggregate amount of approximately $7.4 million under its stock repurchase plan. 3Q 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 3Q18 2Q18 1Q18 4Q17 3Q17 INCOME ITEMS Revenues $ 175,135 $ 173,332 $ 175,661 $ 173,770 $ 175,994 NOl (1)(2) 119,346 119,779 119,639 120,497 119,663 Adjusted EBITDAre, annualized (1)(3) 446,928 456,596 461,212 457,540 457,716 FFO (1)(3) 81,362 84,394 84,615 85,562 84,248 Normalized FFO (1)(3) 86,144 85,087 84,987 86,732 85,449 Normalized FAD (1)(3) 68,814 72,230 75,924 72,610 74,767 Net income attributable to common stockholders per diluted share $ 0.82 $ 0.07 $ 0.05 $ 0.20 $ 0.07 FFO per diluted share 0.38 0.40 0.40 0.41 0.41 Normalized FFO per diluted share 0.41 0.41 0.41 0.42 0.42 Same-Property Cash NOI growth (4) 2.5% 2.6% 2.3% 2.8% 2.9% Fixed charge coverage ratio (5) 4.22x 4.10x 4.28x 4.36x 4.35x As of 3Q18 2Q18 1Q18 4Q17 3Q17 ASSETS Gross real estate investments $ 6,858,468 $ 7,015,665 $ 7,000,502 $ 6,969,565 $ 6,977,851 Total assets 6,328,684 6,302,130 6,359,835 6,449,582 6,413,522 CAPITALIZATION Net debt (6) $ 2,384,141 $ 2,657,340 $ 2,724,048 $ 2,680,675 $ 2,856,758 Total capitalization (7) 8,015,778 8,357,574 8,257,732 8,959,516 8,959,887 Net debt/total capitalization (6) 29.7% 31.8% 33.0% 29.9% 31.9% (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 - 3Q18 amounts and calculation based on net debt. 3Q17 amount and calculation 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 - 3Q18) at the end of the period. 3Q17 calculated amount based on total debt. Refer to page 11 for details. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 8


 
Company Overview Company Snapshot (as of September 30, 2018) Investments in Real Estate (1) $ 6.8 Total portfolio GLA (2) 23.2 Leased rate (3) 92.1% Same-Property portfolio tenant retention rate (YTD) (4) 83% % of GLA managed internally 93% % of GLA on-campus/adjacent 68% % of invested dollars in key markets & top 75 MSAs (5) 94% Investment grade tenants (6) 46% Credit rated tenants (6) 59% Weighted average remaining lease term for all buildings (7) 5.6 Weighted average remaining lease term for single-tenant buildings (7) 7.5 Weighted average remaining lease term for multi-tenant buildings (7) 4.6 Credit ratings (by Moody’s and Standard & Poor’s) Baa2(Stable)/BBB(Stable) Cash and cash equivalents (2) $ 225.5 Net debt/total capitalization 29.7% Weighted average interest rate per annum on portfolio debt (8) 3.49% 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 94% 4.2% 4.8% 4.1% Tampa, FL Phoenix, AZ 5.2% 3.9% Denver, CO 3.6% Boston, MA 5.8% Orange County/Los Angeles, CA 3.6% Houston, TX 6.3% Senior Care 2% Hospitals 4% Dallas, TX 12.4% Remaining Top All Other Markets MSAs 6.3% 39.8% (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. 3Q 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 Nine Months Ended 3Q18 3Q17 3Q18 3Q17 Net income attributable to common stockholders $ 172,986 $ 13,763 $ 198,134 $ 21,390 Depreciation and amortization expense related to investments in real estate 70,004 70,021 208,445 171,678 Gain on sale of real estate, net (166,372) — (166,372) (3) Impairment 4,281 — 8,887 5,093 Proportionate share of joint venture depreciation and amortization 463 464 1,277 506 FFO attributable to common stockholders $ 81,362 $ 84,248 $ 250,371 $ 198,664 Transaction expenses 346 261 789 975 Gain on change in fair value of derivative financial instruments, net — — — (884) Loss on extinguishment of debt, net 1,092 774 1,092 11,192 Noncontrolling income from partnership units included in diluted shares 3,344 166 3,822 635 Other normalizing items, net (1) — — 144 4,643 Normalized FFO attributable to common stockholders $ 86,144 $ 85,449 $ 256,218 $ 215,225 Other (income) expense (89) 27 (129) 13 Non-cash compensation expense 2,127 1,654 7,830 5,493 Straight-line rent adjustments, net (2,746) (3,009) (8,289) (5,834) Amortization of (below) and above market leases/leasehold interests and corporate assets, net 499 683 1,809 1,467 Deferred revenue - tenant improvement related (1) (12) (70) (23) Amortization of deferred financing costs and debt discount/premium, net 1,277 1,290 3,857 2,929 Recurring capital expenditures, tenant improvements and leasing commissions (18,397) (11,315) (44,258) (31,020) Normalized FAD attributable to common stockholders $ 68,814 $ 74,767 $ 216,968 $ 188,250 Net income attributable to common stockholders per diluted share $ 0.82 $ 0.07 $ 0.94 $ 0.12 FFO adjustments per diluted share, net (0.44) 0.34 0.25 1.00 FFO attributable to common stockholders per diluted share $ 0.38 $ 0.41 $ 1.19 $ 1.12 Normalized FFO adjustments per diluted share, net 0.03 0.01 0.03 0.09 Normalized FFO attributable to common stockholders per diluted share $ 0.41 $ 0.42 $ 1.22 $ 1.21 Weighted average diluted common shares outstanding 211,444 204,795 209,968 177,410 Three Months Adjusted EBITDAre (2) Ended 3Q18 Net income $ 176,348 Interest expense 24,834 Depreciation and amortization expense 70,568 Gain on sale of real estate, net (166,372) Impairment 4,281 Proportionate share of joint venture depreciation and amortization 463 EBITDAre $ 110,122 Transaction expenses 346 Loss on extinguishment of debt, net 1,092 Non-cash compensation expense 2,127 Pro forma impact of acquisitions/dispositions (1,955) Adjusted EBITDAre 111,732 Adjusted EBITDAre, annualized $ 446,928 (1) For the nine months ended 3Q17, other normalizing items included $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) Refer to page 23 for the reporting definitions of EBITDAre as defined by NAREIT and Adjusted EBITDAre as previously defined as Adjusted EBITDA. 3Q 2018 I Supplemental Information . Healthcare Trust of America, Inc. I 10


 
Financial Information Capitalization, Interest Expense and Covenants (as of September 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 279,230 70% Deferred financing costs, net (14,448) Discount, net (5,123) Total debt $ 2,609,659 Secured Less: cash and cash equivalents 225,518 Debt 4% Net debt $ 2,384,141 Stock price (as of September 30, 2018) $ 26.67 Total diluted common shares outstanding 211,160 Equity capitalization $ 5,631,637 Total capitalization $ 8,015,778 Unsecured Debt Total undepreciated assets $ 7,480,174 26% Gross book value of unencumbered assets $ 6,431,670 Total debt/undepreciated assets 34.9% Net debt/total capitalization 29.7% Net debt/Adjusted EBITDAre ratio 5.3x Interest Expense Three Months Ended Nine Months Ended 3Q18 3Q17 3Q18 3Q17 Interest (income) expense related to derivative financial instruments $ (169) $ 264 $ (297) $ 827 Gain on change in fair value of derivative financial instruments, net (1) — — — (884) Total interest related to derivative financial instruments, including net (169) 264 (297) (57) change in fair value of derivative financial instruments Interest expense related to debt 25,003 25,924 77,689 59,688 Total interest expense $ 24,834 $ 26,188 $ 77,392 $ 59,631 Interest expense excluding net change in fair value of derivative financial instruments $ 24,834 $ 26,188 $ 77,392 $ 60,515 Covenants Bank Loans Required 3Q18 Senior Notes Required 3Q18 Total leverage ≤ 60% 34% Total leverage ≤ 60% 37% Secured leverage ≤ 30% 4% Secured leverage ≤ 40% 4% Fixed charge coverage ≥ 1.50x 4.22x Unencumbered asset coverage ≥ 150% 309% Unencumbered leverage ≤ 60% 34% Interest coverage ≥ 1.50x 4.24x Unencumbered coverage ≥ 1.75x 3.68x (1) In March 2017, HTA designated its derivative financial instruments as cash flow hedges. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 11


 
Financial Information Debt Composition and Maturity Schedule (as of September 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 2024 2026 2027 Total 2018 $ — $ 1,086 $ — $ — $ — $ — $ — $ — $ — $ 1,086 2019 — 99,453 — — — — — — — 99,453 2020 — 99,641 — — — — — — — 99,641 2021 — 4,840 300,000 — — — — — — 304,840 2022 — 62,089 — 400,000 — — — — — 462,089 Thereafter — 12,121 — — 300,000 300,000 200,000 350,000 500,000 1,662,121 Subtotal — 279,230 300,000 400,000 300,000 300,000 200,000 350,000 500,000 2,629,230 Deferred financing costs, net — (63) (1,208) (2,353) (2,135) (1,571) (2,131) (1,274) (3,713) (14,448) Premiums (discounts), net — 1,246 (921) (188) — (1,156) — (1,842) (2,262) (5,123) Total $ — $ 280,413 $ 297,871 $ 397,459 $ 297,865 $ 297,273 $ 197,869 $ 346,884 $ 494,025 $ 2,609,659 Stated rate (2) 3.36% 4.32% 3.38% 2.95% 3.46% 3.70% 3.31% 3.50% 3.75% 3.54% Hedged rate (3) 3.36% 4.32% 3.38% 2.95% 3.46% 3.70% 2.70% 3.50% 3.75% 3.49% Debt Maturity Schedule $1,800,000 $1,662,121 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $462,089 $400,000 $304,840 $200,000 $99,453 $99,641 $1,086 $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 2024 ($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. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 12


 
Portfolio Information Investment Activity (as of September 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 Sunset Ridge MOB (2 buildings) Raleigh, NC August 80 5,460 36 Total $ 17,729 70 2018 Dispositions Property Market Date Disposed Purchase Price GLA Greenville Portfolio (17 buildings) Greenville, SC August $ 294,250 965 Northern Berkshire MOB North Adams, MA August 600 48 Nutfield Professional Center MOB Derry, NH September 11,000 72 $ 305,850 1,085 YTD gain on sale of real estate, net $166,372 Annual Investments (1) As of September 30, 2018, HTA has invested $6.8 billion primarily in MOBs, development properties and other healthcare assets comprising 23.2 million square feet of GLA. $3,150,000 $2,722,467 $2,450,000 $1,750,000 $1,050,000 $802,148 $700,764 $542,976 $455,950 $413,150 $397,826 $439,530 $350,000 $294,937 $271,510 $68,314 $17,729 ($82,885) ($35,685) ($39,483) ($85,150) ($305,850) -$350,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Acquisitions Dispositions (1) Excludes real estate note receivables and corporate assets. 3Q 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 September 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 38.6% 8,154 35.1% $ 187,686 36.1% Southeast 1,844,422 27.2 6,424 27.6 145,761 28.1 Northeast 1,252,260 18.4 4,594 19.8 106,623 20.5 Midwest 1,064,193 15.7 4,035 17.4 79,036 15.2 Northwest 7,750 0.1 22 0.1 562 0.1 Total $ 6,786,440 100% 23,229 100% $ 519,668 100% 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 12.4% 2,053 8.8% $ 52,117 10.0% Houston, TX 430,979 6.3 1,579 6.8 35,596 6.8 Boston, MA 396,530 5.8 965 4.2 32,234 6.2 Tampa, FL 350,746 5.2 954 4.1 23,596 4.5 Atlanta, GA 325,186 4.8 1,088 4.7 23,344 4.5 Indianapolis, IN 281,768 4.2 1,395 6.0 24,873 4.8 Hartford/New Haven, CT 277,931 4.1 977 4.2 21,573 4.2 Phoenix, AZ 267,781 3.9 1,315 5.7 25,264 4.9 Denver, CO 246,957 3.6 538 2.3 17,372 3.4 Orange County/Los Angeles, CA 241,242 3.6 550 2.4 15,595 3.0 Miami, FL 228,624 3.4 994 4.3 22,459 4.3 Raleigh, NC 199,889 2.9 668 2.9 16,354 3.1 Chicago, IL 190,778 2.8 382 1.6 11,514 2.2 Albany, NY 170,071 2.5 833 3.6 15,977 3.1 Austin, TX 164,425 2.4 409 1.8 8,565 1.6 Orlando, FL 156,300 2.3 512 2.2 11,277 2.2 Pittsburgh, PA 148,612 2.2 1,094 4.7 20,824 4.0 White Plains, NY 126,144 1.9 333 1.4 8,279 1.6 Milwaukee, WI 116,082 1.7 368 1.6 6,402 1.2 Charlotte, NC 94,697 1.4 335 1.4 7,527 1.5 Top 20 MSAs 5,258,016 77.4 17,342 74.7 400,742 77.1 Additional Top MSAs 1,104,189 16.3 4,183 18.0 81,807 15.8 Total Key Markets & Top 75 MSAs $ 6,362,205 93.7% 21,525 92.7% $ 482,549 92.9% (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. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 14


 
Portfolio Information Development & Redevelopment Summary and Capital Expenditures (as of September 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% Providence Facey MOB Orange County/Los Angeles, CA 37 100 Total Stabilized 137 100 Main Line Bryn Mawr MOB Philadelphia, PA 101 65 Total Unstabilized 101 65 Development: 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 229 78 Total Development and Redevelopment 467 82% 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 $ 12,665 $ 8,494 Providence Facey MOB 3Q18 19,588 18,945 643 Total Stabilized $ 40,747 $ 31,610 $ 9,137 Main Line Bryn Mawr MOB 1Q17 $ 32,891 $ 31,707 $ 1,184 Total Unstabilized $ 32,891 $ 31,707 $ 1,184 Development: Jackson South MOB 1Q20 $ 21,634 $ 631 $ 21,003 Redevelopment: Cypress Station MOB 4Q19 $ 5,811 6,000 — 6,000 Cary MOB 1Q21 6,037 42,965 530 42,435 Total Construction in Progress $ 11,848 $ 70,599 $ 1,161 $ 69,438 Total Development and Redevelopment $ 11,848 $ 144,237 $ 64,478 $ 79,759 Total construction costs/gross real estate investments 2.1% Development & Redevelopment Summary - Costs Three Months Ended Nine Months Ended 3Q18 3Q18 Development/redevelopment $ 5,867 $ 31,464 Capital Expenditures Three Months Ended Nine Months Ended 3Q18 3Q18 Recurring capital expenditures $ 9,214 $ 15,723 Tenant improvements - 2nd generation 6,625 20,488 Lease commissions (2) 2,558 8,047 Total recurring capital expenditures $ 18,397 $ 44,258 Capital expenditures - 1st generation/acquisition 1,406 5,834 Tenant improvements - 1st generation 9,553 16,121 Total capital expenditures $ 29,356 $ 66,213 (1) Represents the net book value for buildings placed in redevelopment and removed from HTA’s same store pool. (2) For the three and nine months ended 3Q18, lease commissions includes approximately $1.5 million and $3.7 million, respectively, of internal initial direct costs subject to the adoption of Topic 842 (Leases) effective January 1, 2019. Refer to page 7 for the Impact of Future Accounting Standards under Company Overview for more detail. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 15


 
Portfolio Information Same-Property Performance and NOI (as of September 30, 2018, unaudited and dollars and GLA in thousands) Same-Property Performance Three Months Ended Sequential Year-Over-Year 3Q18 2Q18 3Q17 $ Change % Change $ Change % Change Rental revenue $ 121,166 $ 120,042 $ 117,955 $ 1,124 0.9% $ 3,211 2.7% Tenant recoveries 37,901 35,254 39,290 2,647 7.5 (1,389) (3.5) Total rental income 159,067 155,296 157,245 3,771 2.4 1,822 1.2 Expenses 50,244 47,373 51,085 2,871 6.1 (841) (1.6) Same-Property Cash NOI $ 108,823 $ 107,923 $ 106,160 $ 900 0.8% $ 2,663 2.5% Rental Margin (1) 89.8% 89.9% 90.0% As of 3Q18 2Q18 3Q17 Number of buildings 403 403 403 GLA 21,743 21,749 21,603 Leased GLA, end of period 20,038 20,054 19,852 Leased %, end of period 92.2% 92.2% 91.9% Occupancy GLA, end of period 19,813 19,814 19,687 Occupancy %, end of period 91.1% 91.1% 91.1% NOI (2) Three Months Ended 3Q18 3Q17 Net income $ 176,348 $ 13,957 General and administrative expenses 8,770 8,283 Transaction expenses 346 261 Depreciation and amortization expense 70,568 70,491 Impairment 4,281 — Interest expense and net change in fair value of derivative financial instruments 24,834 26,188 Gain on sale of real estate, net (166,372) — Loss on extinguishment of debt, net 1,092 774 Income from unconsolidated joint venture (432) (318) Other (income) expense (89) 27 NOI $ 119,346 $ 119,663 NOI percentage growth (0.3)% NOI $ 119,346 $ 119,663 Straight-line rent adjustments, net (2,746) (3,009) Amortization of (below) and above market leases/leasehold interests, net (65) 214 Notes receivable interest income and other GAAP adjustments (33) (588) Cash NOI $ 116,502 $ 116,280 Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI (6,065) (7,337) Redevelopment Cash NOI (607) (1,540) Intended for sale Cash NOI (1,007) (1,243) Same-Property Cash NOI $ 108,823 $ 106,160 Same-Property Cash NOI percentage growth 2.5 % (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. 3Q 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 September 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 110 21 6,013 25.9% $ 140,762 27.1% Multi-tenant 306 31 15,908 68.5 340,476 65.5 Other Healthcare Facilities Hospitals 15 7 954 4.1 33,057 6.4 Senior care 3 1 354 1.5 5,373 1.0 Total 434 32 23,229 100% $ 519,668 100% % of Number of Number of % of Total Annualized Annualized Buildings States GLA (1) GLA Base Rent Base Rent Net-Lease/Gross-Lease Net-lease 277 29 14,343 61.7% $ 334,958 64.5% Gross-lease 157 19 8,886 38.3 184,710 35.5 Total 434 32 23,229 100% $ 519,668 100% Historical Campus Proximity (2)(3) As of 3Q18 2Q18 1Q18 4Q17 3Q17 Off-campus aligned 28% 26% 26% 26% 26% On-campus 68 70 70 70 70 On-campus/aligned 96% 96% 96% 96% 96% Off-campus/non-aligned 4 4 4 4 4 Total 100% 100% 100% 100% 100% Ownership Interests (4) % of As of (2) Number of Annualized (1) Annualized Buildings GLA Base Rent Base Rent 3Q18 2Q18 1Q18 4Q17 3Q17 Fee Simple 304 14,995 $ 338,976 65% 65% 62 % 62 % 62 % 62 % Customary Health System Restrictions 123 7,875 171,208 33 34 34 34 34 34 Economic with Limited Restrictions 6 323 9,022 2 1 1 1 1 1 Occupancy Health System Restrictions 1 36 462 — — 3 3 3 3 Leasehold Interest Subtotal 130 8,234 180,692 35 35 38 38 38 38 Total 434 23,229 $ 519,668 100% 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. 3Q 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 September 30, 2018, dollars and GLA in thousands) Historical Leased Rate (1) As of 3Q18 2Q18 1Q18 4Q17 3Q17 Total portfolio leased rate 92.1% 91.9% 91.8% 91.8% 91.7% On-campus/aligned leased rate 92.2 91.9 91.8 91.8 91.7 Off-campus/non-aligned leased rate 91.1 90.8 91.9 91.6 92.5 Total portfolio occupancy rate 90.9 90.9 90.7 91.0 90.6 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 3Q 2018 New Leases 206 7.6 23.13 17.93 2.26 Renewal Leases 326 4.2 $ 21.18 21.97 6.51 0.68 Total 3Q 2018 532 5.6 22.10 11.24 1.33 YTD 2018 New Leases 573 7.3 24.05 22.91 1.95 Renewal Leases 1,631 5.2 $ 22.52 22.97 7.73 1.30 Total YTD 2018 2,204 5.7 $ 23.07 $ 11.81 $ 1.47 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 109 270 1.3% $ 5,814 1.1% 2018 162 595 2.8 16,415 3.1 2019 589 2,381 11.1 61,809 11.9 2020 475 2,038 9.5 49,551 9.5 2021 601 2,885 13.5 65,665 12.6 2022 388 2,078 9.7 49,727 9.6 2023 303 1,860 8.7 40,712 7.8 2024 173 1,179 5.5 29,018 5.6 2025 162 1,097 5.1 26,281 5.1 2026 148 1,212 5.7 25,384 4.9 2027 154 2,029 9.5 55,401 10.7 Thereafter 283 3,775 17.6 93,891 18.1 Total 3,547 21,399 100% $ 519,668 100% (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 foot. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 18


 
Portfolio Information Key Health System Relationships and Highlights (as of September 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 7 Aa3 849 4.0% $ 22,531 4.3% Highmark-Allegheny Health Network (3) 4 Baa1 914 4.3 17,730 3.4 Hospital Corporation of America 4 BB+ 459 2.1 13,081 2.5 Providence St. Joseph Health 1 Aa3 435 2.0 12,193 2.4 Tenet Healthcare System 7 B2 496 2.3 12,067 2.3 Community Health Systems (TN) 8 CCC+ 544 2.5 11,160 2.2 Tufts Medical Center 9 BBB 255 1.2 10,614 2.1 Ascension Health 5 Aa2 445 2.1 10,004 1.9 Steward Health Care System 8 NR 383 1.8 9,841 1.9 Adventist Health 4 Aa2 332 1.6 7,456 1.4 Harbin Clinic 9 NR 313 1.5 6,704 1.3 Mercy Health 8 Aa3 251 1.2 6,307 1.2 Atrium Health 2 AA- 197 0.9 5,901 1.2 UNC Health Care 8 Aa3 222 1.0 5,779 1.1 Trinity Health 9 Aa3 185 0.9 5,307 1.0 Total 6,280 29.4% $ 156,675 30.2% 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 (Baa1), 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. Hospital Corporation of America (BB+), 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. Providence St. Joseph Health (Aa3), a not-for-profit and social services system providing a comprehensive range of health and social services across Alaska, California, Montana, New Mexico, Oregon, Texas and Washington. They have more than 119,000 caregivers/employees serving in 51 hospitals and more than 800 clinics. Tenet Healthcare System (B2), headquartered in Dallas, Texas, is a leading health care services company. Through its network, Tenet operates 89 hospitals, over 470 outpatient centers and has over 115,000 employees in 47 states. Across the network, compassionate, quality care is provided to millions of patients through a wide range of services. Tenet is affiliated with Conifer Health Solutions, which helps hospitals, employers and health insurance companies improve the efficiency and performance of their operations and the health of the people 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. 3Q 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 3Q18 4Q17 ASSETS Real estate investments: Land $ 483,541 $ 485,319 Building and improvements 5,743,439 5,830,824 Lease intangibles 604,215 639,199 Construction in progress 27,273 14,223 6,858,468 6,969,565 Accumulated depreciation and amortization (1,151,490) (1,021,691) Real estate investments, net 5,706,978 5,947,874 Investment in unconsolidated joint venture 67,592 68,577 Cash and cash equivalents 225,518 100,356 Restricted cash 14,639 18,204 Receivables and other assets, net 213,482 207,857 Other intangibles, net 100,475 106,714 Total assets $ 6,328,684 $ 6,449,582 LIABILITIES AND EQUITY Liabilities: Debt $ 2,609,659 $ 2,781,031 Accounts payable and accrued liabilities 160,246 167,852 Derivative financial instruments - interest rate swaps — 1,089 Security deposits, prepaid rent and other liabilities 55,753 61,222 Intangible liabilities, net 62,887 68,203 Total liabilities 2,888,545 3,079,397 Commitments and contingencies Redeemable noncontrolling interests 6,610 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; 207,231,171 and 204,892,118 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively 2,072 2,049 Additional paid-in capital 4,574,913 4,508,528 Accumulated other comprehensive income 648 274 Cumulative dividends in excess of earnings (1,224,006) (1,232,069) Total stockholders’ equity 3,353,627 3,278,782 Noncontrolling interests 79,902 84,666 Total equity 3,433,529 3,363,448 Total liabilities and equity $ 6,328,684 $ 6,449,582 3Q 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 Nine Months Ended 3Q18 3Q17 3Q18 3Q17 Revenues: Rental income $ 175,038 $ 175,431 $ 523,826 $ 438,949 Interest and other operating income 97 563 302 1,271 Total revenues 175,135 175,994 524,128 440,220 Expenses: Rental 55,789 56,331 165,364 138,874 General and administrative 8,770 8,283 26,281 25,178 Transaction 346 261 933 5,618 Depreciation and amortization 70,568 70,491 210,064 172,900 Impairment 4,281 — 8,887 5,093 Total expenses 139,754 135,366 411,529 347,663 Income before other income (expense) 35,381 40,628 112,599 92,557 Interest income (expense): Interest related to derivative financial instruments 169 (264) 297 (827) Gain on change in fair value of derivative financial instruments, net — — — 884 Total interest related to derivative financial instruments, including net change in fair value of derivative financial instruments 169 (264) 297 57 Interest related to debt (25,003) (25,924) (77,689) (59,688) Gain on sale of real estate, net 166,372 — 166,372 3 Loss on extinguishment of debt, net (1,092) (774) (1,092) (11,192) Income from unconsolidated joint venture 432 318 1,405 381 Other income (expense) 89 (27) 129 (13) Net income $ 176,348 $ 13,957 $ 202,021 $ 22,105 Net income attributable to noncontrolling interests (3,362) (194) (3,887) (715) Net income attributable to common stockholders $ 172,986 $ 13,763 $ 198,134 $ 21,390 Earnings per common share - basic: Net income attributable to common stockholders $ 0.83 $ 0.07 $ 0.96 $ 0.12 Earnings per common share - diluted: Net income attributable to common stockholders $ 0.82 $ 0.07 $ 0.94 $ 0.12 Weighted average common shares outstanding: Basic 207,513 200,674 205,950 173,189 Diluted 211,444 204,795 209,968 177,410 Dividends declared per common share $ 0.310 $ 0.305 $ 0.920 $ 0.905 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 21


 
Financial Statements Condensed Consolidated Statements of Cash Flows (unaudited and in thousands) Nine Months Ended 3Q18 3Q17 Cash flows from operating activities: Net income $ 202,021 $ 22,105 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and other 203,550 169,057 Share-based compensation expense 7,830 5,493 Impairment 8,887 5,093 Income from unconsolidated joint venture (1,405) (381) Distributions from unconsolidated joint venture 1,680 — Gain on sale of real estate, net (166,372) (3) Loss on extinguishment of debt, net 1,092 11,192 Change in fair value of derivative financial instruments — (884) Changes in operating assets and liabilities: Receivables and other assets, net (7,820) (19,854) Accounts payable and accrued liabilities (5,932) 29,566 Prepaid rent and other liabilities (2,780) 7,158 Net cash provided by operating activities 240,751 228,542 Cash flows from investing activities: Investments in real estate (17,389) (2,357,570) Investment in unconsolidated joint venture — (68,839) Development of real estate (29,593) (19,163) Proceeds from the sale of real estate 302,440 4,746 Capital expenditures (61,136) (42,990) Collection of real estate notes receivable 524 — Net cash provided by (used in) investing activities 194,846 (2,483,816) Cash flows from financing activities: Borrowings on unsecured revolving credit facility 145,000 515,000 Payments on unsecured revolving credit facility (145,000) (528,000) Proceeds from unsecured senior notes — 900,000 Payments on secured mortgage loans (173,212) (75,444) Deferred financing costs (782) (16,902) Debt extinguishment costs (1,909) (10,391) Security deposits 499 1,932 Proceeds from issuance of common stock 72,814 1,624,222 Issuance of operating partnership units 411 — Repurchase and cancellation of common stock (19,431) (3,413) Dividends paid (188,414) (145,877) Distributions paid to noncontrolling interest of limited partners (3,976) (4,019) Net cash (used in) provided by financing activities (314,000) 2,257,108 Net change in cash, cash equivalents and restricted cash 121,597 1,834 Cash, cash equivalents and restricted cash - beginning of period 118,560 25,045 Cash, cash equivalents and restricted cash - end of period $ 240,157 $ 26,879 3Q 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. 3Q 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. 3Q 2018 I Supplemental Information Healthcare Trust of America, Inc. I 24


 


 
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