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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2019 (April 25, 2019)
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 April 25, 2019, Healthcare Trust of America, Inc. (NYSE: HTA) (“HTA”) issued a press release announcing its financial results for the three months ended March 31, 2019. HTA also commenced distributing its Supplemental Information for the three months ended March 31, 2019. The press release and Supplemental Information are attached as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference. The press release and Supplemental Information are also available on HTA’s website, free of charge, at www.htareit.com.
The information included in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is deemed “furnished” and not filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
99.1
99.2






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
Healthcare Trust of America, Inc. 
 
Date: April 25, 2019
By:
/s/ Scott D. Peters  
 
 
 
Name: Scott D. Peters
 
 
 
Title: Chief Executive Officer, President and Chairman
 

 
Healthcare Trust of America Holdings, LP
 
 
 
 
 
 
By:
Healthcare Trust of America, Inc.,
 
 
 
its General Partner
 
 
 
 
 
Date: April 25, 2019
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
397659031_bestinclasslogoa09.jpg
 
PRESS RELEASE
 
Financial Contact:
 
Robert A. Milligan
 
Chief Financial Officer
 
480.998.3478

HEALTHCARE TRUST OF AMERICA, INC. REPORTS FIRST QUARTER 2019 EARNINGS
Scottsdale, Arizona (April 25, 2019) - Healthcare Trust of America, Inc. (NYSE: HTA) (“HTA”) announced results for the three months ended March 31, 2019.

First Quarter 2019 Highlights
Net Income Attributable to Common Stockholders increased $3.6 million, to $13.4 million, compared to Q1 2018. Earnings per diluted share increased $0.01, to $0.06 per diluted share, compared to Q1 2018.
Funds From Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), was $82.9 million, or $0.40 per diluted share, for Q1 2019. Due to the adoption of Topic 842, initial direct costs are now reported in general and administrative expenses. For Q1 2018, we capitalized approximately $1.3 million of initial direct costs.
Normalized FFO was $83.1 million, or $0.40 per diluted share, for Q1 2019.
Normalized Funds Available for Distribution (“FAD”) was $73.2 million for Q1 2019.
Same-Property Cash Net Operating Income (“NOI”) increased $3.0 million, or 2.7%, to $112.4 million, compared to Q1 2018.
Leasing: HTA’s portfolio had a leased rate of 91.8% by gross leasable area (“GLA”) and an occupancy rate of 90.6% by GLA for Q1 2019. During Q1 2019, HTA executed 1.1 million square feet of GLA of new and renewal leases. Re-leasing spreads increased to 5.9% and tenant retention for the Same-Property portfolio was 86% by GLA for Q1 2019.

Balance Sheet and Capital Markets
Balance Sheet: HTA ended Q1 2019 with total liquidity of $1.1 billion, inclusive of $61.1 million of cash and cash equivalents, resulting in total leverage of (i) 29.3%, measured as debt less cash and cash equivalents to total capitalization, and (ii) 5.6x, measured as debt less cash and cash equivalents to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization for real estate (“Adjusted EBITDAre”).
Stock Repurchase Plan: During Q1 2019, HTA repurchased 345,786 shares of its common stock totaling approximately $8.5 million, at an average price of $24.65 per share.

Noteworthy Q1 2019 Activities
Investments: In Q1 2019, HTA invested approximately $18.8 million to acquire a medical office building (“MOB”) in Westport, Connecticut. In addition, as of April 25, 2019, HTA has an additional $70 million of investments that have closed or are under exclusive contract. These MOBs are located in HTA’s existing key markets and will be operated by our asset management and leasing platform. Altogether, these MOBs have a year one capitalization rate of over 5.7%, excluding potential synergies from our full-service operating platform. These investments remain subject to customary closing conditions.
Forest Park Update: In February 2019, it was announced that HCA - Medical City Dallas will open Medical City Heart Hospital and Medical City Spine Hospital this fall on HTA’s Forest Park Dallas campus. These hospitals are destination hospitals for highly specialized advanced cardiovascular and spine care consisting of the only dedicated cardiac emergency room in Dallas. In addition, HTA ended Q1 2019 with a total leased rate of approximately 93% for its Forest Park portfolio.
Dividends: On April 25, 2019, HTA’s Board of Directors announced a quarterly cash dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on July 11, 2019 to stockholders of record of its common stock and holders of its OP Units on July 3, 2019.

Impact of Topic 842 Leases
The Financial Accounting Standards Board issued Topic 842, which was effective for HTA as of January 1, 2019. Topic 842 modifies the treatment of initial direct costs, which historically under Topic 840 have been capitalized upon meeting criteria provided for in the applicable guidance. Topic 842 also eliminates the accounting recognition of expenses paid directly by tenants and moves certain bad debt costs from expense to revenue. In Q1 2018, HTA capitalized $1.3 million of initial direct leasing costs that would now be expensed. In addition, HTA recognized $3.6 million of tenant paid property taxes in both revenues and expenses and a nominal amount of bad debt costs recognized in expenses.





2019 Guidance
For 2019, HTA reaffirms the following guidance ranges (in millions, except per share data):
 
 
Annual Expectations
 
 
Low
to
High
Net income attributable to common stockholders per share
 
$0.33
 
$0.36
 
 
 
 
 
Same-Property Cash NOI
 
2.0%
 
3.0%
 
 
 
 
 
FFO per share, as defined by NAREIT
 
$1.61
 
$1.66
 
 
 
 
 
Normalized FFO per share
 
$1.62
 
$1.67

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 2018 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, April 26, 2019 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to review its financial performance and operating results for the three months ended March 31, 2019.
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: 10130087
Available April 26, 2019 (one hour after the end of the conference call) to May 26, 2019 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)
 
 
March 31, 2019
 
December 31, 2018
ASSETS
 
 
 
 
Real estate investments:
 
 
 
 
Land
 
$
483,848

 
$
481,871

Building and improvements
 
5,807,582

 
5,787,152

Lease intangibles
 
596,568

 
599,864

Construction in progress
 
6,541

 
4,903

 
 
6,894,539

 
6,873,790

Accumulated depreciation and amortization
 
(1,264,637
)
 
(1,208,169
)
Real estate investments, net
 
5,629,902

 
5,665,621

Investment in unconsolidated joint venture
 
67,072

 
67,172

Cash and cash equivalents
 
61,073

 
126,221

Restricted cash
 
7,402

 
7,309

Receivables and other assets, net
 
221,202

 
223,415

Right-of-use assets, net
 
243,446

 

Other intangibles, net
 
12,457

 
98,738

Total assets
 
$
6,242,554

 
$
6,188,476

LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Debt
 
$
2,541,619

 
$
2,541,232

Accounts payable and accrued liabilities
 
139,462

 
185,073

Security deposits, prepaid rent and other liabilities
 
42,044

 
59,567

Lease liabilities
 
197,313

 

Intangible liabilities, net
 
40,820

 
61,146

Total liabilities
 
2,961,258

 
2,847,018

Commitments and contingencies
 
 
 
 
Redeemable noncontrolling interests
 
6,520

 
6,544

Equity:
 
 
 
 
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding
 

 

Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 205,099,708 and 205,267,349 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively
 
2,051

 
2,053

Additional paid-in capital
 
4,517,961

 
4,525,969

Accumulated other comprehensive (loss) income
 
(75
)
 
307

Cumulative dividends in excess of earnings
 
(1,322,443
)
 
(1,272,305
)
Total stockholders’ equity
 
3,197,494

 
3,256,024

Noncontrolling interests
 
77,282

 
78,890

Total equity
 
3,274,776

 
3,334,914

Total liabilities and equity
 
$
6,242,554

 
$
6,188,476






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended March 31,
 
2019
 
2018
Revenues:
 
 
 
Rental income
$
168,875

 
$
175,567

Interest and other operating income
91

 
94

Total revenues
168,966

 
175,661

Expenses:
 
 
 
Rental
51,468

 
56,022

General and administrative
11,290

 
8,786

Transaction
40

 
191

Depreciation and amortization
69,481

 
70,392

Interest expense
23,970

 
26,253

Impairment

 
4,606

Total expenses
156,249

 
166,250

Loss on sale of real estate, net
(37
)
 

Income from unconsolidated joint venture
486

 
570

Other income
535

 
35

Net income
$
13,701

 
$
10,016

Net income attributable to noncontrolling interests
(261
)
 
(214
)
Net income attributable to common stockholders
$
13,440

 
$
9,802

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

 
$
0.05

Earnings per common share - diluted:
 
 
 
Net income attributable to common stockholders
$
0.06

 
$
0.05

Weighted average common shares outstanding:
 
 
 
Basic
205,080

 
205,069

Diluted
208,999

 
209,177

Dividends declared per common share
$
0.310

 
$
0.305






HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Three Months Ended March 31,
 
2019
 
2018
Cash flows from operating activities:
 
 
 
Net income
$
13,701

 
$
10,016

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
66,528

 
68,303

Share-based compensation expense
3,389

 
3,507

Impairment

 
4,606

Income from unconsolidated joint venture
(486
)
 
(570
)
Distributions from unconsolidated joint venture
750

 

Loss on sale of real estate, net
37

 

Changes in operating assets and liabilities:
 
 
 
Receivables and other assets, net
2,546

 
9,277

Accounts payable and accrued liabilities
(40,402
)
 
(30,780
)
Prepaid rent and other liabilities
2,492

 
(3,479
)
Net cash provided by operating activities
48,555


60,880

Cash flows from investing activities:
 
 
 
Investments in real estate
(18,592
)
 
(11,887
)
Development of real estate
(2,014
)
 
(13,235
)
Proceeds from the sale of real estate
1,193

 

Capital expenditures
(16,815
)
 
(17,417
)
Collection of real estate notes receivable
181

 
172

Net cash used in investing activities
(36,047
)

(42,367
)
Cash flows from financing activities:
 
 
 
Payments on secured mortgage loans
(587
)
 
(1,598
)
Security deposits

 
52

Repurchase and cancellation of common stock
(11,926
)
 
(2,709
)
Dividends paid
(63,686
)
 
(62,546
)
Distributions paid to noncontrolling interest of limited partners
(1,364
)
 
(1,334
)
Net cash used in financing activities
(77,563
)

(68,135
)
Net change in cash, cash equivalents and restricted cash
(65,055
)
 
(49,622
)
Cash, cash equivalents and restricted cash - beginning of period
133,530

 
118,560

Cash, cash equivalents and restricted cash - end of period
$
68,475

 
$
68,938






HEALTHCARE TRUST OF AMERICA, INC.
NOI, CASH NOI AND SAME-PROPERTY CASH NOI
(In thousands)
(Unaudited)
 
Three Months Ended March 31,
 
2019
 
2018
Net income
$
13,701

 
$
10,016

General and administrative expenses
11,290

 
8,786

Transaction expenses
40

 
191

Depreciation and amortization expense
69,481

 
70,392

Impairment

 
4,606

Interest expense
23,970

 
26,253

Loss on sale of real estate, net
37

 

Income from unconsolidated joint venture
(486
)
 
(570
)
Other income
(535
)
 
(35
)
NOI
$
117,498

 
$
119,639

NOI percentage growth
(1.8
)%
 
 
 
 
 
 
NOI
$
117,498

 
$
119,639

Straight-line rent adjustments, net
(3,258
)
 
(3,166
)
Amortization of (below) and above market leases/leasehold interests, net and other GAAP adjustments
234

 
99

Notes receivable interest income
(27
)
 
(36
)
Cash NOI
$
114,447

 
$
116,536

Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI
(783
)
 
(5,000
)
Redevelopment Cash NOI
(269
)
 
(820
)
Intended for sale Cash NOI
(946
)
 
(1,251
)
Same-Property Cash NOI (1)
$
112,449

 
$
109,465

Same-Property Cash NOI percentage growth
2.7
 %
 
 
 
 
 
 
(1) Same-Property includes 412 buildings for the three months ended March 31, 2019 and 2018.
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 and other GAAP adjustments; and (iii) notes receivable interest income. 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 March 31,
 
2019
 
2018
Net income attributable to common stockholders
$
13,440

 
$
9,802

Depreciation and amortization expense related to investments in real estate
68,926

 
69,856

Loss on sale of real estate, net
37

 

Impairment

 
4,606

Proportionate share of joint venture depreciation and amortization
472

 
351

FFO attributable to common stockholders
$
82,875

 
$
84,615

Transaction expenses
40

 
191

Noncontrolling income from OP units included in diluted shares
233

 
181

Normalized FFO attributable to common stockholders
$
83,148

 
$
84,987

Non-cash compensation expense
3,389

 
3,479

Straight-line rent adjustments, net
(3,258
)
 
(3,166
)
Amortization of (below) and above market leases/leasehold interests and corporate assets, net
332

 
751

Deferred revenue - tenant improvement related and other income
(1
)
 
(66
)
Amortization of deferred financing costs and debt discount/premium, net
1,405

 
1,289

Recurring capital expenditures, tenant improvements and leasing commissions
(11,862
)
 
(11,350
)
Normalized FAD attributable to common stockholders
$
73,153

 
$
75,924

 
 
 
 
Net income attributable to common stockholders per diluted share
$
0.06

 
$
0.05

FFO adjustments per diluted share, net
0.34

 
0.35

FFO attributable to common stockholders per diluted share
$
0.40

 
$
0.40

Normalized FFO adjustments per diluted share, net
0.00

 
0.01

Normalized FFO attributable to common stockholders per diluted share
$
0.40

 
$
0.41

 
 
 
 
Weighted average diluted common shares outstanding
208,999

 
209,177

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. 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 extinguishment of debt; (iii) noncontrolling income or loss from OP Units included in diluted shares; and (iv) other normalizing items, which include items that are unusual and infrequent in nature. 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.
HTA also computes Normalized FAD, which excludes from Normalized FFO: (i) non-cash compensation expense; (ii) straight-line rent adjustments; (iii) amortization of below and above market leases/leasehold interests and corporate assets; (iv) deferred revenue - tenant improvement related and other income; (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.
HTA presents these non-GAAP financial measures because it considers them important supplemental measures of its operating performance and believes they are 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. These non-GAAP financial measures should not be considered as alternatives to net income or loss attributable to common stockholders (computed in accordance with GAAP) as indicators of its financial performance. FFO and Normalized FFO is not indicative of cash available to fund cash needs. These non-GAAP financial measures should be reviewed in connection with other GAAP measurements.

                            





HEALTHCARE TRUST OF AMERICA, INC.
NET DEBT TO ADJUSTED EBITDAre
(Unaudited and in thousands)
 
Three Months Ended
 
March 31, 2019
Net income
$
13,701

Interest expense
23,970

Depreciation and amortization expense
69,481

Loss on sale of real estate, net
(37
)
Proportionate share of joint venture depreciation and amortization
472

EBITDAre
$
107,661

Transaction expenses
40

Non-cash compensation expense
3,389

Pro forma impact of acquisitions/dispositions
83

Adjusted EBITDAre
$
111,173

 
 
Adjusted EBITDAre, annualized
$
444,692

 
 
As of March 31, 2019:
 
Debt
$
2,541,619

Less: cash and cash equivalents
61,073

Net Debt
$
2,480,546

 
 
Net Debt to Adjusted EBITDAre
5.6
x
As defined by NAREIT, EBITDAre is computed as net income or loss (computed in accordance with GAAP) plus: (i) interest expense; (ii) income tax expense (not applicable to HTA); (iii) depreciation and amortization; (iv) impairment; (v) gain or loss on the sale of real estate; and (vi) and the proportionate share of joint venture depreciation and amortization.
Adjusted EBITDAre is presented on an assumed annualized basis. HTA defines Adjusted EBITDAre as EBITDAre (computed in accordance with NAREIT as defined above) 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.


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Section 3: EX-99.2 (EXHIBIT 99.2)

ex9922019331
Exhibit Exhibit Exhibit 99.2 99.2 99.2 99.1Exhibit 99.2 MISSION MEDICAL OFFICE PORTFOIO MISSION VIEJO, CA


 
Table of Contents Company Overview Company Information 3 First Quarter 2019 Highlights 6 Financial Highlights 7 Company Snapshot 8 Financial Statements Condensed Consolidated Balance Sheets 9 Condensed Consolidated Statements of Operations 10 Condensed Consolidated Statements of Cash Flows 11 Financial Information FFO, Normalized FFO, Normalized FAD and Adjusted EBITDAre 12 Debt Composition and Maturity Schedule 13 Capitalization and Covenants 14 Portfolio Information Same-Property Performance and NOI 16 Investment Activity 17 Development/Redevelopment Summary and Capital Expenditures 18 Key Markets/Top 75 MSA Concentration and Regional Portfolio Distribution 19 Portfolio Diversification by Type, Historical Campus Proximity and Tenant Specialty 20 New and Renewal Leasing Activity, Historical Leased Rate and Tenant Lease Expirations 21 Key Health System Relationships and Ownership Interests 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. 1Q 2019 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, Instagram 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 - Acquisitions and Development David W. Chung I Senior Vice President - Development Contact Information Corporate Headquarters Healthcare Trust of America, Inc. I NYSE: HTA 16435 North Scottsdale Road, Suite 320 Scottsdale, Arizona 85254 480.998.3478 www.htareit.com Follow Us: Investor Relations Robert A. Milligan I Chief Financial Officer, Secretary and Treasurer 16435 North Scottsdale Road, Suite 320 Scottsdale, Arizona 85254 480.998.3478 info@htareit.com Transfer Agent Computershare P.O. Box 505000 Louisville, KY 40233 888.801.0107 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 3


 
HTA: LARGEST DEDICATED OWNER OF MEDICAL OFFICE 23+ 93% ~16M SF 5.6x MILLION SQUARE INTERNALLY ON-CAMPUS Net Debt/ Adjusted FEET GLA MANAGED (Largest on-campus owner in U.S.) EBITDAre BEST IN CLASS PORTFOLIO FOCUSED IN 20-25 KEY MARKETS 9 MARKETS ~ 1M+ SF 15 MARKETS > 500K SF Full-Service Investment Grade Operating Platform Focus and Scale Diversification Balance Sheet Best-in-Class Fully 94% of Portfolio in 431 Buildings throughout BBB/Baa2 Integrated Operations Key Markets & 32 States Credit Rating Management Top 75 MSAs Top Tenant < 4.5% of ABR 5.6x Property Management Platform with Scale Creates: Net Debt/ Top Market < 10.4% of ABR Adjusted EBITDAre Leasing Local Expertise Size & Diversification provides $1.1B Facilities & Engineering Strong Relationships stability of cash flows Liquidity Construction & Development Operational Benefits Access to Better Performing Markets 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 4


 
FINANCIAL PERFORMANCE: DECADE OF VALUE CREATION Normalized FFO/Share Same Store Growth $0.45 4% 3.3% 3.3% $0.42 $0.42 3.2% 3.1% 3.1% 3.1% 3.1% 3.1% 3.1% 2.9% 3.0% 3.0% 3.0% HTA $0.41 $0.41 $0.41 $0.41 $0.41 2.9% 2.9% 3% 2.8% Avg. $0.40 $0.40 $0.40 $0.40 $0.40 2.7% 2.7% 2.6% 2.5% $0.40 $0.39 $0.39 $0.39 2.3% $0.38 $0.38 2.5% REIT $0.37 $0.37 2% MOB $0.36 Avg. $0.35 1% $0.30 0% 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 DELIVERING SHAREHOLDER VALUE 8.8% Annualized Average Total Returns Since First Distribution in 2006 to March 31, 2019 Top Health Systems Steady & Reliable Dividend » Adventist Health » Hospital Corporation of America $0.32 » Atrium Health » Mercy Health $0.310 $0.305 » Ascension Health » Providence St. Joseph Health $0.300 $0.30 » Baylor Scott & White Health » Steward Health Care System $0.295 $0.290 $0.288 » Boston Medical Center » Tenet Healthcare System » Community Health Systems » Trinity Health $0.28 » Duke Health » Tufts Medical Center » Highmark-Allegheny Health Network » UNC Health Care $0.26 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 5


 
Company Overview First Quarter 2019 Highlights • Net Income Attributable to Common Stockholders increased $3.6 million, to $13.4 million, compared to Q1 2018. Earnings per diluted share increased $0.01, to $0.06 per diluted share, compared to Q1 2018. • Funds From Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), was $82.9 million, or $0.40 per diluted share, for Q1 2019. Due to the adoption of Topic 842, initial direct costs are now reported in general and administrative expenses. For Q1 2018, we capitalized approximately $1.3 million of initial direct costs. • Normalized FFO was $83.1 million, or $0.40 per diluted share, for Q1 2019. • Normalized Funds Available for Distribution (“FAD”) was $73.2 million for Q1 2019. • Same-Property Cash Net Operating Income (“NOI”) increased $3.0 million, or 2.7%, to $112.4 million, compared to Q1 2018. • Leasing: HTA’s portfolio had a leased rate of 91.8% by gross leasable area (“GLA”) and an occupancy rate of 90.6% by GLA for Q1 2019. During Q1 2019, HTA executed 1.1 million square feet of GLA of new and renewal leases. Re-leasing spreads increased to 5.9% and tenant retention for the Same-Property portfolio was 86% by GLA for Q1 2019. Balance Sheet and Capital Markets • Balance Sheet: HTA ended Q1 2019 with total liquidity of $1.1 billion, inclusive of $61.1 million of cash and cash equivalents, resulting in total leverage of (i) 29.3%, measured as debt less cash and cash equivalents to total capitalization, and (ii) 5.6x, measured as debt less cash and cash equivalents to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization for real estate (“Adjusted EBITDAre”). • Stock Repurchase Plan: During Q1 2019, HTA repurchased 345,786 shares of its common stock totaling approximately $8.5 million, at an average price of $24.65 per share. Noteworthy Q1 2019 Activities • Investments: In Q1 2019, HTA invested approximately $18.8 million to acquire a medical office building (“MOB”) in Westport, Connecticut. In addition, as of April 25, 2019, HTA has an additional $70 million of investments that have closed or are under exclusive contract. These MOBs are located in HTA’s existing key markets and will be operated by our asset management and leasing platform. Altogether, these MOBs have a year one capitalization rate of over 5.7%, excluding potential synergies from our full-service operating platform. These investments remain subject to customary closing conditions. • Forest Park Update: In February 2019, it was announced that HCA - Medical City Dallas will open Medical City Heart Hospital and Medical City Spine Hospital this fall on HTA’s Forest Park Dallas campus. These hospitals are destination hospitals for highly specialized advanced cardiovascular and spine care consisting of the only dedicated cardiac emergency room in Dallas. In addition, HTA ended Q1 2019 with a total leased rate of approximately 93% for its Forest Park portfolio. • Dividends: On April 25, 2019, HTA’s Board of Directors announced a quarterly cash dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on July 11, 2019 to stockholders of record of its common stock and holders of its OP Units on July 3, 2019. Impact of Topic 842 Leases • The Financial Accounting Standards Board issued Topic 842, which was effective for HTA as of January 1, 2019. Topic 842 modifies the treatment of initial direct costs, which historically under Topic 840 have been capitalized upon meeting criteria provided for in the applicable guidance. Topic 842 also eliminates the accounting recognition of expenses paid directly by tenants and moves certain bad debt costs from expense to revenue. In Q1 2018, HTA capitalized $1.3 million of initial direct leasing costs that would now be expensed. In addition, HTA recognized $3.6 million of tenant paid property taxes in both revenues and expenses and a nominal amount of bad debt costs recognized in expenses. 2019 Guidance For 2019, HTA reaffirms the following guidance ranges (in millions, except per share data): Annual Expectations Low to High Net income attributable to common stockholders per share $0.33 $0.36 Same-Property Cash NOI 2.0% 3.0% FFO per share, as defined by NAREIT $1.61 $1.66 Normalized FFO per share $1.62 $1.67 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 6


 
Company Overview Financial Highlights (unaudited and dollars in thousands, except per share data) Three Months Ended 1Q19 4Q18 3Q18 2Q18 1Q18 INCOME ITEMS Revenues $ 168,966 $ 172,298 $ 175,135 $ 173,332 $ 175,661 NOl (1)(2) 117,498 117,045 119,346 119,779 119,639 Adjusted EBITDAre, annualized (1)(3) 444,692 444,036 446,928 456,596 461,212 FFO (1)(3) 82,875 85,194 81,362 84,394 84,615 Normalized FFO (1)(3) 83,148 84,182 86,144 85,087 84,987 Normalized FAD (1)(3) 73,153 68,291 68,814 72,230 75,924 Net income attributable to common stockholders per diluted share $ 0.06 $ 0.07 $ 0.82 $ 0.07 $ 0.05 FFO per diluted share 0.40 0.41 0.38 0.40 0.40 Normalized FFO per diluted share 0.40 0.40 0.41 0.41 0.41 Same-Property Cash NOI growth (4) 2.7% 2.7% 2.5% 2.6% 2.3% Fixed charge coverage ratio (5) 4.37x 4.28x 4.22x 4.10x 4.28x As of 1Q19 4Q18 3Q18 2Q18 1Q18 ASSETS Gross real estate investments $ 6,894,539 $ 6,873,790 $ 6,858,468 $ 7,015,665 $ 7,000,502 Total assets 6,242,554 6,188,476 6,328,684 6,302,130 6,359,835 CAPITALIZATION Net debt (6) $ 2,480,546 $ 2,415,011 $ 2,384,141 $ 2,657,340 $ 2,724,048 Total capitalization (7) 8,456,142 7,709,762 8,015,778 8,357,574 8,257,732 Net debt/total capitalization (6) 29.3% 31.3% 29.7% 31.8% 33.0% (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 12 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 and scheduled principal payments. (6) Refer to page 14 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. Refer to page 14 for details. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 7


 
Company Overview Company Snapshot (as of March 31, 2019) Investments in Real Estate (1) $ 6.8 Total portfolio GLA (2) 23.2 Leased rate (3) 91.8% Same-Property portfolio tenant retention rate (YTD) (4) 86% % 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) 45% Credit rated tenants (6) 58% Weighted average remaining lease term for all buildings (7) 5.7 Weighted average remaining lease term for single-tenant buildings (7) 8.0 Weighted average remaining lease term for multi-tenant buildings (7) 4.6 Credit ratings (by Moody’s and Standard & Poor’s) Baa2(Stable)/BBB(Stable) Cash and cash equivalents (2) $ 61.1 Net debt/total capitalization 29.3% Weighted average interest rate per annum on portfolio debt (8) 3.47% Building Type Presence in Top MSAs (9) % of Portfolio (based on GLA) % of Portfolio (based on invested dollars) Hartford/New Medical Office Buildings Haven, CT Indianapolis, IN Atlanta, GA 94% 4.4% 4.2% 4.8% Tampa, FL Phoenix, AZ 5.2% 3.9% Denver, CO 3.6% Boston, MA 5.9% Orange County/Los Angeles, CA 3.6% Houston, TX 6.4% Senior Care 2% Hospitals 4% Dallas, TX 12.4% Remaining Top All Other Markets MSAs 6.1% 39.5% (1) Amount presented in billions. Refer to page 23 for the reporting definition of Investments in Real Estate. (2) Amounts 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 cash flow hedges. (9) Refer to page 19 for a detailed table of HTA’ s Key Markets and Top 75 MSA Concentration. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 8


 
Financial Statements Condensed Consolidated Balance Sheets (unaudited and in thousands, except share and per share data) As of 1Q19 4Q18 ASSETS Real estate investments: Land $ 483,848 $ 481,871 Building and improvements 5,807,582 5,787,152 Lease intangibles 596,568 599,864 Construction in progress 6,541 4,903 6,894,539 6,873,790 Accumulated depreciation and amortization (1,264,637) (1,208,169) Real estate investments, net 5,629,902 5,665,621 Investment in unconsolidated joint venture 67,072 67,172 Cash and cash equivalents 61,073 126,221 Restricted cash 7,402 7,309 Receivables and other assets, net 221,202 223,415 Right-of-use assets, net 243,446 — Other intangibles, net 12,457 98,738 Total assets $ 6,242,554 $ 6,188,476 LIABILITIES AND EQUITY Liabilities: Debt $ 2,541,619 $ 2,541,232 Accounts payable and accrued liabilities 139,462 185,073 Security deposits, prepaid rent and other liabilities 42,044 59,567 Lease liabilities 197,313 — Intangible liabilities, net 40,820 61,146 Total liabilities 2,961,258 2,847,018 Commitments and contingencies Redeemable noncontrolling interests 6,520 6,544 Equity: Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding — — Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 205,099,708 and 205,267,349 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively 2,051 2,053 Additional paid-in capital 4,517,961 4,525,969 Accumulated other comprehensive (loss) income (75) 307 Cumulative dividends in excess of earnings (1,322,443) (1,272,305) Total stockholders’ equity 3,197,494 3,256,024 Noncontrolling interests 77,282 78,890 Total equity 3,274,776 3,334,914 Total liabilities and equity $ 6,242,554 $ 6,188,476 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 9


 
Financial Statements Condensed Consolidated Statements of Operations (unaudited and in thousands, except per share data) Three Months Ended 1Q19 1Q18 Revenues: Rental income $ 168,875 $ 175,567 Interest and other operating income 91 94 Total revenues 168,966 175,661 Expenses: Rental 51,468 56,022 General and administrative 11,290 8,786 Transaction 40 191 Depreciation and amortization 69,481 70,392 Interest expense 23,970 26,253 Impairment — 4,606 Total expenses 156,249 166,250 Loss on sale of real estate, net (37) — Income from unconsolidated joint venture 486 570 Other income 535 35 Net income $ 13,701 $ 10,016 Net income attributable to noncontrolling interests (261) (214) Net income attributable to common stockholders $ 13,440 $ 9,802 Earnings per common share - basic: Net income attributable to common stockholders $ 0.07 $ 0.05 Earnings per common share - diluted: Net income attributable to common stockholders $ 0.06 $ 0.05 Weighted average common shares outstanding: Basic 205,080 205,069 Diluted 208,999 209,177 Dividends declared per common share $ 0.310 $ 0.305 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 10


 
Financial Statements Condensed Consolidated Statements of Cash Flows (unaudited and in thousands) Three Months Ended 1Q19 1Q18 Cash flows from operating activities: Net income $ 13,701 $ 10,016 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 66,528 68,303 Share-based compensation expense 3,389 3,507 Impairment — 4,606 Income from unconsolidated joint venture (486) (570) Distributions from unconsolidated joint venture 750 — Loss on sale of real estate, net 37 — Changes in operating assets and liabilities: Receivables and other assets, net 2,546 9,277 Accounts payable and accrued liabilities (40,402) (30,780) Prepaid rent and other liabilities 2,492 (3,479) Net cash provided by operating activities 48,555 60,880 Cash flows from investing activities: Investments in real estate (18,592) (11,887) Development of real estate (2,014) (13,235) Proceeds from the sale of real estate 1,193 — Capital expenditures (16,815) (17,417) Collection of real estate notes receivable 181 172 Net cash used in investing activities (36,047) (42,367) Cash flows from financing activities: Payments on secured mortgage loans (587) (1,598) Security deposits — 52 Repurchase and cancellation of common stock (11,926) (2,709) Dividends paid (63,686) (62,546) Distributions paid to noncontrolling interest of limited partners (1,364) (1,334) Net cash used in financing activities (77,563) (68,135) Net change in cash, cash equivalents and restricted cash (65,055) (49,622) Cash, cash equivalents and restricted cash - beginning of period 133,530 118,560 Cash, cash equivalents and restricted cash - end of period $ 68,475 $ 68,938 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 11


 
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 1Q19 1Q18 Net income attributable to common stockholders $ 13,440 $ 9,802 Depreciation and amortization expense related to investments in real estate 68,926 69,856 Loss on sale of real estate, net 37 — Impairment — 4,606 Proportionate share of joint venture depreciation and amortization 472 351 FFO attributable to common stockholders $ 82,875 $ 84,615 Transaction expenses 40 191 Noncontrolling income from OP units included in diluted shares 233 181 Normalized FFO attributable to common stockholders $ 83,148 $ 84,987 Non-cash compensation expense 3,389 3,479 Straight-line rent adjustments, net (3,258) (3,166) Amortization of (below) and above market leases/leasehold interests and corporate assets, net 332 751 Deferred revenue - tenant improvement related and other income (1) (66) Amortization of deferred financing costs and debt discount/premium, net 1,405 1,289 Recurring capital expenditures, tenant improvements and leasing commissions (11,862) (11,350) Normalized FAD attributable to common stockholders $ 73,153 $ 75,924 Net income attributable to common stockholders per diluted share $ 0.06 $ 0.05 FFO adjustments per diluted share, net 0.34 0.35 FFO attributable to common stockholders per diluted share $ 0.40 $ 0.40 Normalized FFO adjustments per diluted share, net 0.00 0.01 Normalized FFO attributable to common stockholders per diluted share $ 0.40 $ 0.41 Weighted average diluted common shares outstanding 208,999 209,177 Adjusted EBITDAre (1) Three Months Ended 1Q19 Net income $ 13,701 Interest expense 23,970 Depreciation and amortization expense 69,481 Loss on sale of real estate, net 37 Proportionate share of joint venture depreciation and amortization 472 EBITDAre $ 107,661 Transaction expenses 40 Non-cash compensation expense 3,389 Pro forma impact of acquisitions/dispositions 83 Adjusted EBITDAre $ 111,173 Adjusted EBITDAre, annualized $ 444,692 As of March 31, 2019: Debt $ 2,541,619 Less: cash and cash equivalents 61,073 Net Debt $ 2,480,546 Net Debt to Adjusted EBITDAre 5.6x (1) Refer to page 23 for the reporting definitions of EBITDAre, as defined by NAREIT, and Adjusted EBITDAre. 1Q 2019 I Supplemental Information . Healthcare Trust of America, Inc. I 12


 
Financial Information Debt Composition and Maturity Schedule (as of March 31, 2019, dollars in thousands) Debt Composition Deferred Principal Financing Balance Costs, Net Discounts Total Stated Rate (1) Hedged Rate (2) Unsecured senior note due 2021 $ 300,000 $ (994) $ (760) $ 298,246 3.38% 3.38% Unsecured senior note due 2022 400,000 (2,033) (165) 397,802 2.95 2.95 Unsecured senior note due 2023 300,000 (1,405) (1,035) 297,560 3.70 3.70 Unsecured senior note due 2026 350,000 (1,192) (1,740) 347,068 3.50 3.50 Unsecured senior note due 2027 500,000 (3,500) (2,152) 494,348 3.75 3.75 Total unsecured senior notes $ 1,850,000 $ (9,124) $ (5,852) $ 1,835,024 Unsecured term loan due 2023 300,000 (1,894) — 298,106 3.65% 3.65% Unsecured term loan due 2024 200,000 (1,987) — 198,013 3.50 2.77 Total unsecured term loans $ 500,000 $ (3,881) $ — $ 496,119 Unsecured revolving credit facility due 2022 (3) — — — — 3.55% 3.55% Secured mortgage loans 210,834 (43) (315) 210,476 3.96 3.96 Total debt $ 2,560,834 $ (13,048) $ (6,167) $ 2,541,619 3.53% 3.47% Maturity Schedule $1,200,000 $1,000,000 $200,000 $800,000 $850,000 $12,120 $600,000 $300,000 $2,005 $400,000 $2,504 $400,000 $300,000 $300,000 $200,000 $96,776 $97,429 $0 2019 2020 2021 2022 2023 Thereafter Unsecured Revolving Credit Facility Unsecured Senior Notes Unsecured Term Loans Secured Mortgage Loans (1) The stated rate on the debt instrument as of the end of the period. (2) The effective rate incorporates any cash flow hedges that serve to fix variable rate debt, as of the end of the period. (3) Rate does not include the 20 basis point facility fee that is payable on the entire $1.0 billion revolving credit facility. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 13


 
Financial Information Capitalization and Covenants (as of March 31, 2019, dollars and shares in thousands, except stock price) Capitalization 1Q19 Unsecured revolving credit facility $ — Unsecured term loans 500,000 Unsecured senior notes 1,850,000 Secured mortgage loans 210,834 Equity Deferred financing costs, net (13,048) 71% Discount, net (6,167) Total debt $ 2,541,619 Secured Less: cash and cash equivalents 61,073 Debt 2% Net debt $ 2,480,546 Stock price (as of March 29, 2019) $ 28.59 Total diluted common shares outstanding 209,010 Equity capitalization $ 5,975,596 Total capitalization $ 8,456,142 Total undepreciated assets $ 7,507,191 Unsecured Gross book value of unencumbered assets $ 6,610,061 Debt 27% Total debt/undepreciated assets 33.9% Net debt/total capitalization 29.3% Covenants Bank Loans Required 1Q19 Senior Notes Required 1Q19 Total leverage ≤ 60% 36% Total leverage ≤ 60% 35% Secured leverage ≤ 30% 3% Secured leverage ≤ 40% 3% Fixed charge coverage ≥ 1.50x 4.37x Unencumbered asset coverage ≥ 150% 299% Unencumbered leverage ≤ 60% 35% Interest coverage ≥ 1.50x 4.41x Unencumbered coverage ≥ 1.75x 5.12x 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 14


 


 
Portfolio Information Same-Property Performance and NOI (as of March 31, 2019, unaudited and dollars and GLA in thousands) Same-Property Performance Three Months Ended Sequential Year-Over-Year 1Q19 4Q18 1Q18 $ Change % Change $ Change % Change Rental revenue $ 124,668 $ 126,172 $ 122,343 $ (1,504) (1.2)% $ 2,325 1.9% Tenant recoveries 36,397 35,032 35,330 1,365 3.9 1,067 3.0 Total rental income 161,065 161,204 157,673 (139) (0.1) 3,392 2.2 Expenses 48,616 47,888 48,208 728 1.5 408 0.8 Same-Property Cash NOI (1) $ 112,449 $ 113,316 $ 109,465 $ (867) (0.8)% $ 2,984 2.7% Rental Margin (2) 90.2% 89.8% 89.5% As of 1Q19 4Q18 1Q18 Number of buildings 412 412 412 GLA 22,251 22,249 22,235 Leased GLA, end of period 20,439 20,471 20,445 Leased %, end of period 91.9% 92.0% 91.9% Occupancy GLA, end of period 20,213 20,294 20,175 Occupancy %, end of period 90.8% 91.2% 90.7% NOI (3) Three Months Ended 1Q19 1Q18 Net income $ 13,701 $ 10,016 General and administrative expenses 11,290 8,786 Transaction expenses 40 191 Depreciation and amortization expense 69,481 70,392 Impairment — 4,606 Interest expense 23,970 26,253 Loss on sale of real estate, net 37 — Income from unconsolidated joint venture (486) (570) Other income (535) (35) NOI $ 117,498 $ 119,639 NOI percentage growth (1.8)% NOI $ 117,498 $ 119,639 Straight-line rent adjustments, net (3,258) (3,166) Amortization of (below) and above market leases/leasehold interests, net and other GAAP adjustments 234 99 Notes receivable interest income (27) (36) Cash NOI $ 114,447 $ 116,536 Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI (783) (5,000) Redevelopment Cash NOI (269) (820) Intended for sale Cash NOI (946) (1,251) Same-Property Cash NOI $ 112,449 $ 109,465 Same-Property Cash NOI percentage growth 2.7 % (1) The presentation includes certain adjustments to allow for the consistent treatment of items impacted by Topic 842-Leases. (2) Rental margin presents Same-Property Cash NOI divided by Same-Property rental revenue. (3) Refer to pages 23 and 24 for the reporting definitions of NOI, Cash NOI and Same-Property Cash NOI. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 16


 
Portfolio Information Investment Activity (as of March 31, 2019, dollars and GLA in thousands) 2019 Acquisitions % Leased at Property Market Date Acquired Acquisition Purchase Price (1) GLA Westport Center Westport, CT January 82 $18,750 38 Annual Investments (1) As of March 31, 2019, HTA has invested $6.8 billion primarily in MOBs, development properties and other healthcare assets comprising 23.2 million square feet of GLA. $2,800,000 $2,722,467 $2,450,000 $2,100,000 $1,750,000 $1,400,000 $1,050,000 $802,148 $700,000 $700,764 $542,976 $455,950 $439,530 $350,000 $413,150 $397,826 $294,937 $271,510 $17,729 $18,750 $68,314 $0 $(82,885) $(35,685) $(39,483) $(85,150) $(1,200) $(308,550) -$350,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Acquisitions Dispositions (1) Excludes real estate note receivables and corporate assets. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 17


 
Portfolio Information Development/Redevelopment Summary and Capital Expenditures (as of March 31, 2019, dollars and GLA in thousands) Development/Redevelopment Summary - Property Information Development/Redevelopment MSA Total GLA % Leased Memorial Hermann Plaza II MOB Houston, TX 100 100% Total Stabilized 100 100 Development: Jackson South MOB Miami, FL 51 70 Redevelopment: Cary MOB Raleigh, NC 125 72 Total Construction in Progress 176 71 Total Development and Redevelopment 276 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 (2) 2Q18 $ 21,159 $ 13,314 $ 7,845 Total Stabilized $ 21,159 $ 13,314 $ 7,845 Development: Jackson South MOB 3Q20 $ 21,634 $ 1,224 $ 20,410 Redevelopment: Cary MOB 1Q21 $ 6,430 42,965 1,631 41,334 Total Construction in Progress $ 6,430 $ 64,599 $ 2,855 $ 61,744 Total Development and Redevelopment $ 6,430 $ 85,758 $ 16,169 $ 69,589 Total construction costs/gross real estate investments 1.2% Development/Redevelopment Summary - Costs Three Months Ended 1Q19 Development/redevelopment $ 2,014 Capital Expenditures Recurring capital expenditures $ 3,951 Tenant improvements - 2nd generation 5,672 Lease commissions 2,239 Total recurring capital expenditures $ 11,862 Capital expenditures - 1st generation/acquisition 941 Tenant improvements - 1st generation 1,946 Total capital expenditures $ 14,749 (1) Represents the net book value for buildings placed in redevelopment and removed from HTA’s Same-Property pool. (2) Costs to complete for Memorial Hermann Plaza II MOB relates to remaining tenant improvements. The building is 100% leased and fully operational. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 18


 
Portfolio Information Key Markets/Top 75 MSA Concentration and Regional Portfolio Distribution (as of March 31, 2019, dollars and GLA in thousands) Key Markets and Top 75 MSA Concentration (1) % of % of Annualized Annualized Key Markets Investment Investment Total GLA (2) % of Portfolio Base Rent (3) Base Rent Dallas, TX $ 843,274 12.4% 2,053 8.9% $ 52,959 10.3% Houston, TX 430,979 6.4 1,585 6.8 35,931 7.0 Boston, MA 396,530 5.9 965 4.2 32,160 6.3 Tampa, FL 350,746 5.2 954 4.1 23,759 4.6 Atlanta, GA 325,186 4.8 1,088 4.7 24,165 4.7 Hartford/New Haven, CT 296,681 4.4 1,014 4.4 21,581 4.2 Indianapolis, IN 281,768 4.2 1,396 6.0 25,048 4.9 Phoenix, AZ 267,781 3.9 1,316 5.7 25,229 4.9 Denver, CO 246,957 3.6 538 2.3 11,681 2.3 Orange County/Los Angeles, CA 241,242 3.6 550 2.4 15,622 3.0 Miami, FL 228,624 3.4 994 4.3 22,699 4.4 Raleigh, NC 199,889 2.9 668 2.9 16,620 3.2 Chicago, IL 190,778 2.8 382 1.6 11,702 2.3 Albany, NY 170,071 2.5 833 3.6 16,186 3.1 Austin, TX 164,425 2.4 409 1.8 8,955 1.7 Orlando, FL 156,300 2.3 513 2.2 11,134 2.2 Pittsburgh, PA 148,612 2.2 1,095 4.7 18,352 3.6 White Plains, NY 126,144 1.9 333 1.5 8,332 1.6 Milwaukee, WI 116,082 1.7 368 1.6 6,505 1.3 Charlotte, NC 94,697 1.4 334 1.4 7,772 1.5 Top 20 MSAs 5,276,766 77.9 17,388 75.1 396,392 77.1 Additional Top MSAs 1,085,689 16.0 4,097 17.7 80,642 15.7 Total Key Markets/Top 75 MSAs $ 6,362,455 93.9% 21,485 92.8% $ 477,034 92.8% Regional Portfolio Distribution % of Annualized Annualized Region Investment % of Investment Total GLA (2) % of Portfolio Base Rent (3) Base Rent Southwest $ 2,617,815 38.6% 8,172 35.3% $ 184,452 35.9% Southeast 1,815,212 26.8 6,296 27.2 144,624 28.1 Northeast 1,271,010 18.8 4,631 20.0 104,672 20.4 Midwest 1,064,193 15.7 4,038 17.4 79,731 15.5 Northwest 7,750 0.1 22 0.1 561 0.1 Total $ 6,775,980 100% 23,159 100% $ 514,040 100% (1) Key markets are titled as such based on HTA’s concentration in the respective MSA. (2) Total portfolio GLA excludes GLA of projects under development and includes 100% of the GLA of its unconsolidated joint venture. (3) Refer to page 23 for the reporting definition of Annualized Base Rent. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 19


 
Portfolio Information Portfolio Diversification by Type, Historical Campus Proximity and Tenant Specialty (as of March 31, 2019, dollars and GLA in thousands, except as otherwise noted) Portfolio Diversification by Type % of Number of Number of % of Total Annualized Annualized Buildings States GLA (1) GLA Base Rent (2) Base Rent Medical Office Buildings Single-tenant 107 21 5,901 25.5% $ 131,149 25.5% Multi-tenant 306 31 15,949 68.9 344,875 67.1 Other Healthcare Facilities Hospitals 15 7 954 4.1 32,643 6.4 Senior care 3 1 355 1.5 5,373 1.0 Total 431 32 23,159 100% $ 514,040 100% Net-Lease/Gross-Lease Net-lease 275 29 14,362 62.0% $ 334,252 65.0% Gross-lease 156 19 8,797 38.0 179,788 35.0 Total 431 32 23,159 100% $ 514,040 100% Historical Campus Proximity (3) As of 1Q19 4Q18 3Q18 2Q18 1Q18 Off-Campus Aligned 28% 28% 28% 26% 26% On-Campus 68 68 68 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% Tenant Specialty (4) Specialty On-Campus Off-Campus Total Primary Care (5) 16.3% 20.2% 17.5% Orthopedics/Sports Medicine 9.7% 10.7% 10.0% Obstetrics/Gynecology 7.8 3.4 6.4 Cardiology 6.5 3.5 5.6 Oncology 4.5 2.4 3.9 Imaging/Diagnostics/Radiology 3.4 4.9 3.8 Eye and Vision 3.0 3.8 3.3 General Surgery 2.7 2.1 2.5 Other Specialty 32.4 32.9 32.6 Specialty 70.0% 63.7% 68.1% Ambulatory Surgery Center 4.9% 7.1% 5.6% Education/Research 4.3 1.8 3.5 Pharmacy 1.2 0.4 1.0 Other 3.3 6.8 4.3 Total 100.0% 100.0% 100.0% (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) Percentages shown as percent of total GLA. Refer to page 24 for the reporting definitions of Off-campus/Non-Aligned and On-Campus/Aligned. (4) Tenant Specialty includes the percentage of total GLA of multi-tenanted clinical MOBs. (5) Primary Care includes Pediatrics, family and internal medicine. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 20


 
Portfolio Information New and Renewal Leasing Activity, Historical Leased Rate and Tenant Lease Expirations (as of March 31, 2019, dollars and GLA in thousands) New and Renewal Leasing Activity Average Base Rent (2) Tenant Leasing Total GLA Average Term (1) Expiring Starting Improvements (2) Commissions (2) 1Q 2019 New Leases 207 7.5 $ 24.13 $ 35.40 $ 1.88 Renewal Leases 892 9.6 $ 16.39 17.35 15.63 0.41 Total 1Q 2019 1,099 9.2 $ 17.77 $ 19.34 $ 0.69 Historical Leased Rate (3) As of 1Q19 4Q18 3Q18 2Q18 1Q18 Total portfolio leased rate 91.8% 92.0% 92.1% 91.9% 91.8% On-campus/aligned leased rate 91.8 92.1 92.2 91.9 91.8 Off-campus/non-aligned leased rate 92.7 89.3 91.1 90.8 91.9 Total portfolio occupancy rate 90.6 91.0 90.9 90.9 90.7 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 (4) Leases Leases (5) Base Rent Month-to-month 144 482 2.3% $ 10,055 2.0% 2019 462 1,841 8.7 49,782 9.7 2020 475 1,939 9.1 47,727 9.3 2021 616 2,463 11.6 60,360 11.7 2022 414 2,139 10.1 52,171 10.1 2023 323 1,915 9.0 42,442 8.3 2024 223 1,364 6.4 33,825 6.6 2025 175 1,142 5.4 27,218 5.3 2026 167 1,282 6.0 27,092 5.3 2027 159 1,978 9.3 54,093 10.5 2028 107 989 4.6 22,303 4.3 Thereafter 262 3,737 17.5 86,972 16.9 Total 3,527 21,271 100% $ 514,040 100% (1) Amounts presented in years. (2) Amounts presented per square foot. (3) 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. (4) Total portfolio GLA excludes GLA of projects under development and includes 100% of the GLA of its unconsolidated joint venture. (5) Refer to page 23 for the reporting definition of Annualized Base Rent. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 21


 
Portfolio Information Key Health System Relationships and Ownership Interests (as of March 31, 2019, 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 (3) GLA Base Rent (4) Base Rent Baylor Scott & White Health 7 Aa3 849 4.0% $ 22,810 4.4% Highmark-Allegheny Health Network (5) 10 Baa1 923 4.3 15,150 3.0 Hospital Corporation of America 5 Ba1 532 2.5 14,846 2.9 Tenet Healthcare System 7 B2 487 2.3 11,821 2.3 Community Health Systems (TN) 8 Caa3 541 2.5 11,312 2.2 Tufts Medical Center 8 BBB+ 255 1.2 10,616 2.1 Providence St. Joseph Health 3 Aa3 299 1.4 10,542 2.1 Ascension Health 5 Aa2 446 2.1 10,047 2.0 Steward Health Care System 8 NR 383 1.8 9,864 1.9 Adventist Health 3 Aa2 331 1.6 7,533 1.5 Harbin Clinic 9 NR 313 1.5 6,809 1.3 Mercy Health 8 Aa3 251 1.2 6,320 1.2 Atrium Health 2 Aa3 197 0.9 6,039 1.2 UNC Health Care 8 Aa3 217 1.0 5,750 1.1 Trinity Health 9 Aa3 187 0.9 5,404 1.1 Total 6,211 29.2% $ 154,863 30.3% Ownership Interests (6) % of As of (7) Number of Annualized (3) Annualized Buildings GLA Base Rent Base Rent 1Q19 4Q18 3Q18 2Q18 1Q18 Fee Simple 284 13,952 $ 311,890 61% 60% 60 % 65 % 62 % 62 % Customary Health System Restrictions 140 8,837 192,088 37 38 38 34 34 34 Economic with Limited Restrictions 6 333 9,540 2 2 2 1 1 1 Occupancy Health System Restrictions 1 37 522 — — — — 3 3 Leasehold Interest Subtotal 147 9,207 202,150 39 40 40 35 38 38 Total 431 23,159 $ 514,040 100% 100% 100 % 100 % 100 % 100 % (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) Total leased and total portfolio GLA excludes GLA of projects under development and includes 100% of the GLA of its unconsolidated joint venture. (4) Refer to page 23 for the reporting definition of Annualized Base Rent. (5) Credit rating refers to Highmark, Inc. (6) Refer to pages 23 and 24 for the reporting definitions of Customary Health System Restrictions, Economic with Limited Restrictions, and Occupancy Health System Restrictions. (7) Percentages shown as percent of total GLA. 1Q 2019 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”): 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 and other GAAP adjustments; and (iii) notes receivable interest income. 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”): As defined by NAREIT, EBITDAre is computed as net income or loss (computed in accordance with GAAP) plus: (i) interest expense; (ii) income tax expense (not applicable to HTA); (iii) depreciation and amortization; (iv) impairment; (v) gain or loss on the sale of real estate; and (vi) and the proportionate share of joint venture depreciation and amortization. Funds from Operations (“FFO”): HTA computes FFO in accordance with the current standards established by NAREIT. NAREIT defines FFO as net income or loss attributable to common stockholders (computed in accordance with GAAP), excluding gains or losses from sales of real estate property and impairment write-downs of depreciable assets, plus depreciation and amortization related to investments in real estate, and after adjustments for unconsolidated partnerships and joint ventures. HTA presents this non-GAAP financial measure because it considers it an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Historical cost accounting assumes that the value of real estate assets diminishes ratably over time. Since real estate values have historically risen or fallen based on market conditions, many industry investors have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Because FFO excludes depreciation and amortization unique to real estate, among other items, it provides a perspective not immediately apparent from net income or loss attributable to common stockholders. Gross Leasable Area (“GLA”): Gross leasable area in square feet. Investments in Real Estate: Based on acquisition price. Leased Rate: Leased rate represents the percentage of total GLA that is leased (excluding GLA for properties under development), including month-to-month leases and leases which have been executed, but which have not yet commenced, as of the date reported. Metropolitan Statistical Area (“MSA”): Is a geographical region with a relatively high population density at its core and close economic ties throughout the area. MSAs are defined by the Office of Management and Budget. Net Operating Income (“NOI”): NOI is a non-GAAP financial measure that is defined as net income or loss (computed in accordance with GAAP) before: (i) general and administrative expenses; (ii) transaction expenses; (iii) depreciation and amortization expense; (iv) impairment; (v) interest expense and net change in fair value of derivative financial instruments; (vi) gain or loss on sales of real estate; (vii) gain or loss on extinguishment of debt; (viii) income or loss from unconsolidated joint venture; and (ix) other income or expense. HTA believes that NOI provides an accurate measure of the operating performance of its operating assets because NOI excludes certain items that are not associated with the management of its properties. Additionally, HTA believes that NOI is a widely accepted measure of comparative operating performance of REITs. However, HTA’s use of the term NOI may not be comparable to that of other REITs as they may have different methodologies for computing this amount. NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of its financial performance. NOI should be reviewed in connection with other GAAP measurements. 1Q 2019 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) non-cash compensation expense; (ii) straight-line rent adjustments; (iii) amortization of below and above market leases/leasehold interests and corporate assets; (iv) deferred revenue - tenant improvement related and other income; (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 extinguishment of debt; (iii) noncontrolling income or loss from partnership units included in diluted shares; and (iv) 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. 1Q 2019 I Supplemental Information Healthcare Trust of America, Inc. I 24


 


 
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