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): July 29, 2014 (July 29, 2014)
HEALTHCARE TRUST OF AMERICA, INC.
HEALTHCARE TRUST OF AMERICA HOLDINGS, LP
(Exact name of registrant as specified in its charter)

Maryland
 
001-35568
 
20-4738467
Delaware
 
333-190916
 
20-4738347
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
16435 N. Scottsdale Road, Suite 320
 
 
 
 
Scottsdale, Arizona
 
 
 
85254
(Address of principal executive offices)
 
 
 
(Zip Code)
(480) 998-3478
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02
Results of Operations and Financial Condition.
On July 29, 2014, Healthcare Trust of America, Inc. (NYSE: HTA) ( “HTA”) issued a press release announcing its financial results for the quarter ended June 30, 2014. HTA also commenced distributing its Supplemental Operating and Financial Information for the quarter ended June 30, 2014. The press release and Supplemental Operating and Financial Information are attached as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference. The press release and Supplemental Operating and Financial 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
Press Release dated July 29, 2014.
 
 
99.2
Supplemental Operating and Financial Information: Second Quarter 2014.





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: July 29, 2014 
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: July 29, 2014 
By:
/s/ Scott D. Peters  
 
 
 
Name: Scott D. Peters
 
 
 
Title: Chief Executive Officer, President and Chairman
 



EX99.1 7-29-14


Exhibit 99.1
PRESS RELEASE
Financial Contact:
  
Media Contact:
Kellie S. Pruitt
  
Robert A. Milligan
Chief Financial Officer
  
Executive Vice President of Corporate Finance
Healthcare Trust of America, Inc.
  
Healthcare Trust of America, Inc.
480.258.6637
  
480.998.3478
kelliepruitt@htareit.com
  
robertmilligan@htareit.com
HEALTHCARE TRUST OF AMERICA, INC. REPORTS 12.5% INCREASE IN Q2 2014 NORMALIZED FFO TO $0.18 PER DILUTED SHARE
Q2 2014 Same-Property Cash NOI Increased 3.1%
$211.5 Million of Investments
Standard & Poor’s Upgrades Credit Rating to BBB
Scottsdale, Arizona (July 29, 2014) - Healthcare Trust of America, Inc. (NYSE: HTA) (“HTA”) announced results for the quarter ended June 30, 2014.
Second Quarter 2014 Highlights
Operating
•
Normalized FFO: Increased 21.9% to $43.5 million compared to Q2 2013.
•
Normalized FFO Per Share: $0.18 per diluted share, an increase of $0.02 per diluted share, or 12.5%, compared to Q2 2013.
•
Normalized FAD: $0.16 per diluted share, or $39.3 million, an increase of $0.02 per diluted share, or 14.3%, compared to Q2 2013. The payout ratio of Normalized FAD was 88% for the second quarter.
•
Same-Property Cash NOI: Increased 3.1% compared to Q2 2013.
Portfolio
•
Acquisitions: During the quarter, HTA acquired $211.5 million of high quality medical office buildings (96% leased and approximately 484,000 square feet of GLA). The acquisitions include properties located in the key markets of Boston, Miami and Raleigh.
•
Leasing: During the quarter, HTA entered into new or renewal leases on approximately 475,000 square feet of GLA, or approximately 3.3% of its portfolio. Tenant retention for the quarter was approximately 86% by GLA.
•
Leased Rate: At the end of the quarter, the leased rate by GLA was 91.5%, an increase from 91.3% a year ago. The leased rate increased 30 basis points from 91.2% as of March 31, 2014.
•
In-House Property Management and Leasing Platform: HTA expanded its in-house property management and leasing platform by approximately 529,000 square feet of GLA during the quarter, bringing total in-house GLA to 13.1 million square feet of GLA, or 90% of the portfolio’s GLA.
Balance Sheet and Liquidity
•
Balance Sheet: At the end of the quarter, HTA had total liquidity of $777.2 million, including $644.5 million of availability on its unsecured revolving credit facility and $132.7 million of cash and cash equivalents. The leverage ratio of net debt to total net capitalization was 32.3%.
•
Credit Rating Upgrade: In May 2014, Standard & Poor’s upgraded HTA’s investment grade credit rating to BBB, with a stable outlook.




•
Capital Raising: In June 2014, HTA issued and sold $300.0 million of 7-year senior unsecured notes at an interest rate of 3.375% per annum. During the quarter, HTA raised approximately $18.3 million through the sale of common stock at an average price of $11.86 per share through our ATM program. Net proceeds from the bond and equity issuances were used to fund acquisitions, repay secured mortgages and the outstanding balance on the unsecured revolving credit facility and for general corporate purposes.
Financial Results
Rental Income
Rental income increased 15.5% to $88.9 million for the three months ended June 30, 2014, compared to $77.0 million for the three months ended June 30, 2013. The increase in rental income was primarily driven by $515.2 million of acquisitions since June 30, 2013 and same-property growth.
Normalized FFO
Normalized Funds from Operations, or Normalized FFO, was $0.18 per diluted share, or $43.5 million, for the three months ended June 30, 2014, compared to $0.16 per diluted share, or $35.7 million, for the three months ended June 30, 2013.
FFO
FFO was $0.15 per diluted share, or $36.5 million, for the three months ended June 30, 2014, compared to $0.19 per diluted share, or $43.6 million, for the three months ended June 30, 2013.
Normalized FAD
Normalized Funds Available for Distribution, or Normalized FAD, was $0.16 per diluted share, or $39.3 million, for the three months ended June 30, 2014, compared to $0.14 per diluted share, or $32.0 million, for the three months ended June 30, 2013. The payout ratio of Normalized FAD was 88% for the second quarter.
NOI
Net Operating Income, or NOI, was $62.6 million for the three months ended June 30, 2014, compared to $55.0 million for the three months ended June 30, 2013.
Same-Property Cash NOI
Same-Property Cash NOI increased 3.1% to $53.8 million for the three months ended June 30, 2014, compared to $52.2 million for the three months ended June 30, 2013.
General and Administrative Expenses
General and administrative expenses were $5.9 million for the three months ended June 30, 2014, compared to $6.2 million for the three months ended June 30, 2013.
Interest Expense and Change in the Fair Value of Derivative Financial Instruments
The total interest expense and change in the fair value of derivative financial instruments for the three months ended June 30, 2014 was $15.7 million, which included $13.1 million of interest expense related to debt and interest rate swaps, and a net loss of $2.6 million on the change in the fair value of HTA’s derivative financial instruments.
HTA ended the quarter with a weighted average borrowing cost of 3.88% per annum, inclusive of interest rate swaps. The weighted average remaining term of the debt portfolio at the end of the quarter was 5.8 years, including extension options.
Net Income
Net income for the three months ended June 30, 2014 was $2.9 million, compared to $14.2 million for the three months ended June 30, 2013. The decrease is primarily due to the net gain on the change in the fair value of our derivatives of $8.9 million in 2013, compared to a net loss of $2.6 million in 2014.
Balance Sheet
As of June 30, 2014, HTA had total assets of $3.0 billion, cash and cash equivalents of $132.7 million and $644.5 million available on its unsecured revolving credit facility. The leverage ratio of net debt (debt less cash) to total net capitalization was 32.3%.
Leased Rate, Occupancy Rate and Tenant Retention
The leased rate of HTA’s portfolio which includes leases executed but not commenced was 91.5% by gross leasable area, or GLA, an increase from 91.3% as of Q2 2013. The occupancy rate of HTA’s portfolio was 90.9% by GLA, an increase from 90.4% as of Q2 2013. Tenant retention for the quarter was approximately 86% by GLA.




Credit Rated Tenants
Investment grade rated tenants as a percent of annualized base rent was approximately 42% as of June 30, 2014 and approximately 58% of HTA’s annualized base rent is 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
During the quarter, HTA expanded its in-house property management and leasing platform by approximately 529,000 square feet of GLA, bringing total in-house GLA to 13.1 million square feet, or 90% of the portfolio’s GLA. During the quarter, HTA opened its ninth regional office located in Miami.
Funds from Operations (FFO), Normalized FFO and Normalized Funds Available for Distribution (Normalized FAD)
HTA computes FFO in accordance with the current standards established by the National Association of Real Estate Investment Trusts, or 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 property and impairment write-downs of depreciable assets, plus depreciation and amortization, 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 asset values have historically risen or fallen based on market conditions, many industry investors have considered 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’s methodology for calculating FFO may be different from methods utilized by other REITs and, accordingly, may not be comparable to such other REITs. 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 our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of sufficient cash flow to fund all of our needs. FFO should be reviewed in connection with other GAAP measurements.
HTA computes Normalized FFO, which excludes from FFO acquisition-related expenses, listing expenses, net gain or loss on change in the fair value of derivative financial instruments, gain or loss on the extinguishment of debt, noncontrolling income or loss from operating partnership units included in diluted shares and other normalizing items. HTA presents this non-GAAP financial measure because it allows for the comparison of our 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 such 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 our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of sufficient cash flow to fund our needs. Normalized FFO should be reviewed in connection with other GAAP measurements.
HTA also computes Normalized FAD, which excludes from Normalized FFO other income or expense, non-cash compensation expense, straight-line rent adjustments, amortization of below and above market leases, deferred revenue - tenant improvement related, amortization of deferred financing costs and debt premium/discount and recurring capital expenditures, tenant improvements and leasing commissions. HTA believes this non-GAAP financial measure provides a meaningful supplemental measure of its ability to fund its ongoing dividends. 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 our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of sufficient cash flow to fund all of our needs. Normalized FAD should be reviewed in connection with other GAAP measurements.




The following is the reconciliation of FFO, Normalized FFO and Normalized FAD to net income attributable to common stockholders for the three and six months ended June 30, 2014 and 2013 (amounts in thousands, except per share amounts):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Net income attributable to common stockholders
$
2,855

 
$
14,025

 
$
8,147

 
$
15,376

Depreciation and amortization expense
33,602

 
29,583

 
68,544

 
58,144

FFO
$
36,457

 
$
43,608

 
$
76,691

 
$
73,520

FFO per share - basic
$
0.15

 
$
0.19

 
$
0.32

 
$
0.33

FFO per share - diluted
$
0.15

 
$
0.19

 
$
0.32

 
$
0.33

Acquisition-related expenses
4,869

 
658

 
5,845

 
1,683

Listing expenses
—

 
—

 
—

 
4,405

Net (gain) loss on change in the fair value of derivative financial instruments
2,580

 
(8,922
)
 
3,421

 
(10,528
)
Gain on extinguishment of debt
(365
)
 
—

 
(365
)
 
—

Noncontrolling income (loss) from operating partnership units included in diluted shares
(12
)
 
203

 
92

 
211

Other normalizing items
—

 
152

 
209

 
558

Normalized FFO
$
43,529

 
$
35,699

 
$
85,893

 
$
69,849

Normalized FFO per share - basic
$
0.18

 
$
0.16

 
$
0.36

 
$
0.32

Normalized FFO per share - diluted
$
0.18

 
$
0.16

 
$
0.36

 
$
0.31

 
 
 
 
 
 
 
 
Normalized FFO
$
43,529

 
$
35,699

 
$
85,893

 
$
69,849

Other income
(14
)
 
(10
)
 
(40
)
 
(18
)
Non-cash compensation expense
866

 
343

 
2,254

 
908

Straight-line rent adjustments, net
(1,553
)
 
(1,631
)
 
(3,653
)
 
(3,369
)
Amortization of below and above market leases, net
607

 
520

 
1,275

 
1,070

Deferred revenue - tenant improvement related
(139
)
 
(179
)
 
(272
)
 
(310
)
Amortization of deferred financing costs and debt discount/premium
553

 
833

 
1,114

 
1,647

Recurring capital expenditures, tenant improvements and leasing commissions
(4,564
)
 
(3,573
)
 
(8,559
)
 
(6,313
)
Normalized FAD
$
39,285

 
$
32,002

 
$
78,012

 
$
63,464

Normalized FAD per share - basic
$
0.17

 
$
0.14

 
$
0.33

 
$
0.29

Normalized FAD per share - diluted
$
0.16

 
$
0.14

 
$
0.32

 
$
0.29

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
238,025

 
225,610

 
237,658

 
221,380

Diluted
240,551

 
227,780

 
240,189

 
222,585

Net Operating Income (NOI), Cash NOI and Same-Property Cash NOI
NOI is a non-GAAP financial measure that is computed as net income or loss (computed in accordance with GAAP) before general and administrative expenses, acquisition-related expenses, depreciation and amortization expense, listing expenses, interest expense and net change in the fair value of derivative financial instruments, gain or loss on extinguishment of debt and 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 the properties. Additionally, HTA believes that NOI is a widely accepted measure of comparative operating performance in the evaluation 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 our financial performance. NOI should be reviewed in connection with other GAAP measurements.




Cash NOI is a non-GAAP financial measure which excludes from NOI straight-line rent adjustments, amortization of below and above market leases and lease termination fees. HTA believes that Cash NOI 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 our 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 properties referred to as “same-property.” Same-Property Cash NOI excludes properties which have not been owned and operated by HTA during the entire span of all periods reported or are expected to be sold in the near term, notes receivable interest income, and certain non-routine items. Same-Property Cash NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of our financial performance. Same-Property Cash NOI should be reviewed in connection with other GAAP measurements.
The following is the reconciliation of NOI, Cash NOI and Same-Property Cash NOI to net income for the three months ended June 30, 2014 and 2013 (amounts in thousands):
 
Three Months Ended June 30,
 
2014
 
2013
Net income
$
2,883

 
$
14,233

General and administrative expenses
5,903

 
6,217

Acquisition-related expenses
4,869

 
658

Depreciation and amortization expense
33,602

 
29,583

Interest expense and the net change in fair value of derivative financial instruments
15,729

 
4,314

Gain on extinguishment of debt
(365
)
 
—

Other income
(14
)
 
(10
)
NOI
$
62,607

 
$
54,995

NOI percentage growth
13.8
%
 
 
 
 
 
 
NOI
$
62,607

 
$
54,995

Straight-line rent adjustments, net
(1,553
)
 
(1,631
)
Amortization of below and above market leases, net
607

 
520

Lease termination fees
—

 
(3
)
Cash NOI
$
61,661

 
$
53,881

Notes receivable interest income
(564
)
 
(546
)
Non Same-Property Cash NOI
(7,276
)
 
(1,134
)
Same-Property Cash NOI
$
53,821

 
$
52,201

Same-Property Cash NOI percentage growth
3.1
%
 
 




About Healthcare Trust of America, Inc.
Healthcare Trust of America, Inc. (NYSE: HTA), a publicly traded real estate investment trust, is a full-service real estate company focused on acquiring, owning and operating high-quality medical office buildings that are predominately located on or aligned with campuses of nationally or regionally recognized healthcare systems in the U.S.  Since its formation in 2006, HTA has invested approximately $3.2 billion to build a portfolio of properties that is comprised of approximately 14.6 million square feet of GLA located in 27 states. It operates its properties through regional offices located in Albany, Atlanta, Boston, Charleston, Dallas, Indianapolis, Miami, Pittsburgh and Scottsdale.
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 Annual Report on Form 10-K and in our other filings with the SEC.




HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
 
 
June 30, 2014
 
December 31, 2013
ASSETS
 
 
 
 
Real estate investments:
 
 
 
 
Land
 
$
249,116

 
$
203,001

Building and improvements
 
2,520,405

 
2,358,071

Lease intangibles
 
424,993

 
411,857

 
 
3,194,514

 
2,972,929

Accumulated depreciation and amortization
 
(509,042
)
 
(445,938
)
Real estate investments, net
 
2,685,472

 
2,526,991

Real estate notes receivable
 
13,520

 
28,520

Cash and cash equivalents
 
132,719

 
18,081

Restricted cash and escrow deposits
 
19,350

 
18,114

Receivables and other assets, net
 
114,459

 
110,285

Other intangibles, net
 
49,051

 
50,343

Total assets
 
$
3,014,571

 
$
2,752,334

LIABILITIES AND EQUITY
 
 
 
 
Liabilities:
 
 
 
 
Debt, net
 
$
1,520,445

 
$
1,214,241

Accounts payable and accrued liabilities
 
81,198

 
82,893

Derivative financial instruments - interest rate swaps
 
5,685

 
5,053

Security deposits, prepaid rent and other liabilities
 
34,032

 
35,339

Intangible liabilities, net
 
11,686

 
11,797

Total liabilities
 
1,653,046

 
1,349,323

Commitments and contingencies
 
 
 
 
Redeemable noncontrolling interest of limited partners
 
3,264

 
3,262

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; 238,909,961 and 236,880,614 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively
 
2,389

 
2,369

Additional paid-in capital
 
2,146,545

 
2,126,897

Cumulative dividends in excess of earnings
 
(802,366
)
 
(742,060
)
Total stockholders’ equity
 
1,346,568

 
1,387,206

Noncontrolling interest
 
11,693

 
12,543

Total equity
 
1,358,261

 
1,399,749

Total liabilities and equity
 
$
3,014,571

 
$
2,752,334










HEALTHCARE TRUST OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
Rental income
$
88,946

 
$
77,005

 
$
179,398

 
$
153,246

Interest income from real estate notes receivable
725

 
619

 
1,577

 
1,239

Total revenues
89,671

 
77,624

 
180,975

 
154,485

Expenses:
 
 
 
 
 
 
 
Rental
27,064

 
22,629

 
56,653

 
46,598

General and administrative
5,903

 
6,217

 
12,202

 
12,665

Acquisition-related
4,869

 
658

 
5,845

 
1,683

Depreciation and amortization
33,602

 
29,583

 
68,544

 
58,144

Listing
—

 
—

 
—

 
4,405

Total expenses
71,438

 
59,087

 
143,244

 
123,495

Income before other income (expense)
18,233

 
18,537

 
37,731

 
30,990

Other income (expense):
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
Interest related to derivative financial instruments
(1,370
)
 
(996
)
 
(2,715
)
 
(2,361
)
Net gain (loss) on change in the fair value of derivative financial instruments
(2,580
)
 
8,922

 
(3,421
)
 
10,528

Total interest related to derivative financial instruments, including net change in the fair value of derivative financial instruments
(3,950
)
 
7,926

 
(6,136
)
 
8,167

Interest related to debt
(11,779
)
 
(12,240
)
 
(23,683
)
 
(23,558
)
Gain on extinguishment of debt
365

 
—

 
365

 
—

Other income
14

 
10

 
40

 
18

Net income
$
2,883

 
$
14,233

 
$
8,317

 
$
15,617

Net income attributable to noncontrolling interests
(28
)
 
(208
)
 
(170
)
 
(241
)
Net income attributable to common stockholders
$
2,855

 
$
14,025

 
$
8,147

 
$
15,376

Earnings per common share - basic:
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
0.01

 
$
0.06

 
$
0.03

 
$
0.07

Earnings per common share - diluted:
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
0.01

 
$
0.06

 
$
0.03

 
$
0.07

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
238,025

 
225,610

 
237,658

 
221,380

Diluted
240,551

 
227,780

 
240,189

 
222,585



ex99272914
99.1 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 HEALTHCARE TRUST OF AMERICA, INC. NYSE: HTA Healthcare Trust of America, Inc. A Leading Owner and Operator of Medical Office Buildings Exhibit 99.2

 
Table of Contents 2 Company Overview Company Information 3 Current Period Highlights 4 Financial Highlights 5 Company Snapshot 6 Financial Information Funds From Operations, Normalized Funds From Operations and Normalized Funds Available for Distribution 7 Market Capitalization and Debt Composition 8 Interest Expense and Covenants 9 Portfolio Information 2014 Acquisition Activity and Historical Acquisition Activity 10 Regional Portfolio Distribution and Key Market Concentration 11 Same-Property Performance and Net Operating Income 12 Portfolio Diversification by Type and Historical Campus Proximity 13 Tenant Lease Expirations and Historical Leased Rate 14 Top 15 Health System Relationships and In-House Property Management 15 Health System Relationship Highlights 16 Condensed Consolidated Balance Sheets 17 Condensed Consolidated Statements of Operations 18 Reporting Definitions 19 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 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 and 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 other filings with the SEC.

 
Senior Management Scott D. Peters Kellie S. Pruitt Mark D. Engstrom Chairman, Chief Executive Officer, Chief Financial Officer, Secretary, Executive Vice President - and President and Treasurer Acquisitions Amanda L. Houghton Robert A. Milligan Executive Vice President - Executive Vice President - Asset Management Corporate Finance Contact Information Corporate Headquarters Financial Contact Investor Relations 16435 North Scottsdale Road Kellie S. Pruitt Robert A. Milligan Suite 320 Chief Financial Officer Executive Vice President - Corporate Finance Scottsdale, AZ 85254 16435 North Scottsdale Road 16435 North Scottsdale Road (480) 998-3478 Suite 320 Suite 320 Scottsdale, AZ 85254 Scottsdale, AZ 85254 Transfer Agent (480) 258-6637 (480) 998-3478 DST Systems, Inc. Email: kelliepruitt@htareit.com Email: robertmilligan@htareit.com 430 West 7th Street Kansas City, MO 64105 (888) 801-0107 Healthcare Trust of America, Inc. (NYSE: HTA), a publicly traded real estate investment trust, is a full-service real estate company focused on acquiring, owning and operating high-quality medical office buildings that are predominately located on or aligned with campuses of nationally or regionally recognized healthcare systems in the U.S. Since its formation in 2006, HTA has built a portfolio of properties that total approximately $3.2 billion based on purchase price and is comprised of approximately 14.6 million square feet of gross leasable area (GLA) located in 27 states. HTA has developed a national property management and leasing platform which it directs through its primary regional offices located in Albany, Atlanta, Boston, Charleston, Dallas, Indianapolis, Miami, Pittsburgh and Scottsdale. At the end of the second quarter, approximately 90% of HTA’s total portfolio GLA was managed internally on this platform. 3 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Current Period Highlights Operating • Normalized FFO: Increased 21.9% to $43.5 million, compared to Q2 2013. • Normalized FFO Per Share: $0.18 per diluted share, an increase of $0.02 per diluted share, or 12.5%, compared to Q2 2013. • Normalized FAD: $0.16 per diluted share, or $39.3 million, an increase of $0.02 per diluted share, or 14.3%, compared to Q2 2013. The payout ratio of Normalized FAD was 88% for the second quarter. • Same-Property Cash NOI: Increased 3.1%, compared to Q2 2013. Portfolio • Acquisitions: During the quarter, HTA acquired $211.5 million of high quality medical office buildings (96% leased and approximately 484,000 square feet of GLA). The acquisitions include properties located in the key markets of Boston, Miami, and Raleigh. • Leasing: During the quarter, HTA entered into new or renewal leases on approximately 475,000 square feet of GLA, or approximately 3.3% of its portfolio. Tenant retention for the quarter was approximately 86% by GLA. • Leased Rate: At the end of the quarter, the leased rate by GLA was 91.5%, an increase from 91.3% a year ago. The leased rate increased 30 basis points from 91.2% as of March 31, 2014. • In-House Property Management and Leasing Platform: HTA expanded its in-house property management and leasing platform by approximately 529,000 square feet of GLA during the quarter, bringing total in-house GLA to 13.1 million square feet of GLA, or 90% of the portfolio’s GLA. Balance Sheet and Liquidity • Balance Sheet: At the end of the quarter, HTA had total liquidity of $777.2 million, including $644.5 million of availability on its unsecured revolving credit facility and $132.7 million of cash and cash equivalents. The leverage ratio of net debt to total net capitalization was 32.3%. • Credit Rating Upgrade: In May 2014, Standard & Poor’s upgraded HTA’s investment grade credit rating to BBB, with a stable outlook. • Capital Raising: In June 2014, HTA issued and sold $300.0 million of 7-year senior unsecured notes at an interest rate of 3.375% per annum. During the quarter, HTA raised approximately $18.3 million through the sale of common stock at an average price of $11.86 per share through our ATM program. Net proceeds from the bond and equity issuances were used to fund acquisitions, repay secured mortgages and the outstanding balance on the unsecured revolving credit facility and for general corporate purposes. 4 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
________________ 1. Refer to page 19 for the reporting definitions on NOI, Annualized Adjusted EBITDA, Normalized FFO and Normalized FAD. 2. Refer to page 12 for a reconciliation of GAAP Net Income to NOI. 3. Refer to page 19 for a reconciliation of GAAP Net Income to Annualized Adjusted EBITDA. 4. Refer to page 7 for a reconciliation of GAAP Net Income Attributable to Common Stockholders to Normalized FFO and FAD. 5. Calculated as EBITDA divided by interest expense (excluding change in the fair market value of derivatives) and scheduled principal payments. 6. 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 total debt outstanding at the end of the period. Refer to Page 8 for details. 7. Represented as Total Net Debt/Total Net Market Capitalization for 2Q 2014. Financial Highlights (unaudited and in thousands, except per share data) 5 Three Months Ended 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 INCOME ITEMS: Revenues $ 89,671 $ 91,304 $ 84,132 $ 82,984 $ 77,624 NOl 1,2 62,607 61,715 59,521 57,147 54,995 Annualized Adjusted EBITDA 1,3 243,248 227,320 223,948 213,280 195,514 Normalized FFO 1,4 43,529 42,364 40,054 37,931 35,699 Normalized FAD 1,4 39,285 38,727 34,928 33,777 32,002 Net Income Attributable to Common Stockholders per share - diluted $ 0.01 $ 0.02 $ 0.02 $ 0.02 $ 0.06 Normalized FFO per share - diluted 0.18 0.18 0.17 0.16 0.16 Normalized FAD per share - diluted 0.16 0.16 0.15 0.14 0.14 Same-Property Cash NOI Growth 3.1% 3.0% 3.0% 3.2% 3.4% Fixed Charge Coverage Ratio 5 3.47x 3.45x 3.34x 3.19x 3.11x As of 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 ASSETS: Gross Real Estate Investments $ 3,194,514 $ 2,976,476 $ 2,972,929 $ 2,823,337 $ 2,671,901 Total Assets 3,014,571 2,735,246 2,752,334 2,681,520 2,574,753 CAPITALIZATION: Total Debt $ 1,520,445 $ 1,232,282 $ 1,214,241 $ 1,125,792 $ 1,114,204 Total Stockholders’ Equity 1,346,568 1,359,204 1,387,206 1,405,806 1,330,518 Total Market Capitalization 6 4,426,874 3,963,924 3,570,077 3,632,471 3,681,556 Total Debt/Total Market Capitalization7 32.3% 31.1% 34.0% 31.0% 30.3% SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Presence in 27 States (based on GLA) Company Snapshot as of June 30, 2014 ________________ 1. Includes the impact of interest rate swaps. Gross real estate investments (billions) $3.2 Total portfolio gross leasable area (GLA) (square feet in millions) 14.6 Leased rate 91.5% Portfolio tenant retention rate (YTD) 81% Investment grade tenants (based on annualized base rent) 42% Credit rated tenants (based on annualized rent) 58% % of GLA on-campus/aligned 96% Weighted average remaining lease term for all buildings (years) 6.3 Weighted average remaining lease term for single-tenant buildings (years) 8.5 Weighted average remaining lease term for multi-tenant buildings (years) 5.1 Credit ratings Baa2(Stable)/BBB(Stable) Cash and cash equivalents (millions) $132.7 Total net debt to total net capitalization 32.3% Weighted average interest rate per annum on portfolio debt1 3.88% Building Type (based on GLA) 6 Hospitals 5% Senior Care 4% Medical Office Buildings 91% TX 13% FL 12% AZ 9% IN 9% PA 8% Other 30% GA 5% NY 6% SC 8% SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Funds From Operations (FFO), Normalized Funds From Operations (Normalized FFO) and Normalized Funds Available for Distribution (Normalized FAD) (unaudited and in thousands, except per share data) Financial Information Three Months Ended June 30, Six Months Ended June 30, 2014 2013 2014 2013 Net income attributable to common stockholders $ 2,855 $ 14,025 $ 8,147 $ 15,376 Depreciation and amortization expense 33,602 29,583 68,544 58,144 FFO $ 36,457 $ 43,608 $ 76,691 $ 73,520 FFO per share - basic $ 0.15 $ 0.19 $ 0.32 $ 0.33 FFO per share - diluted $ 0.15 $ 0.19 $ 0.32 $ 0.33 Acquisition-related expenses 4,869 658 5,845 1,683 Listing expenses — — — 4,405 Net (gain) loss on change in the fair value of derivative financial instruments 2,580 (8,922) 3,421 (10,528) Gain on extinguishment of debt (365) — (365) — Noncontrolling income (loss) from operating partnership units included in diluted shares (12) 203 92 211 Other normalizing items — 152 209 558 Normalized FFO $ 43,529 $ 35,699 $ 85,893 $ 69,849 Normalized FFO per share - basic $ 0.18 $ 0.16 $ 0.36 $ 0.32 Normalized FFO per share - diluted $ 0.18 $ 0.16 $ 0.36 $ 0.31 Normalized FFO $ 43,529 $ 35,699 $ 85,893 $ 69,849 Other income (14) (10) (40) (18) Non-cash compensation expense 866 343 2,254 908 Straight-line rent adjustments, net (1,553) (1,631) (3,653) (3,369) Amortization of below and above market leases, net 607 520 1,275 1,070 Deferred revenue - tenant improvement related (139) (179) (272) (310) Amortization of deferred financing costs and debt discount/ premium 553 833 1,114 1,647 Recurring capital expenditures, tenant improvements and leasing commissions (4,564) (3,573) (8,559) (6,313) Normalized FAD $ 39,285 $ 32,002 $ 78,012 $ 63,464 Normalized FAD per share - basic $ 0.17 $ 0.14 $ 0.33 $ 0.29 Normalized FAD per share - diluted $ 0.16 $ 0.14 $ 0.32 $ 0.29 Weighted average number of shares outstanding: Basic 238,025 225,610 237,658 221,380 Diluted 240,551 227,780 240,189 222,585 7 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Market Capitalization and Debt Composition as of June 30, 2014 (in thousands) Market Capitalization1 ________________ 1. Totals may not add due to rounding. 2. Total Net Debt and Total Net Capitalization exclude Cash and Cash Equivalents of $132,719. 3. The stated rate on the debt instrument as of June 30, 2014. 4. The effective rate incorporates any swap instruments that serve to fix variable rate debt, as of June 30, 2014. 5. Rate does not include the 25bps facility fee that is payable on the entire $650 million revolving commitment. 6. Does not reflect the 1-year extension option which could extend the Revolver to 2017 and the Term Loan to 2019. Debt Composition Secured Mortgage Debt $ 466,995 Unsecured Term Loans 455,000 Unsecured Senior Notes 600,000 Unsecured Credit Facility — Net premium (discount) (1,550) Total Debt $ 1,520,445 Stock price (as of June 30, 2014) 12.04 Total Diluted Common Shares Outstanding 241,397 Equity Market Capitalization $ 2,906,429 Total Capitalization $ 4,426,874 Total Undepreciated Assets $ 3,523,613 Total Net Debt/Total Net Capitalization2 32.3% Total Debt/Total Capitalization 34.3% Total Debt/Total Undepreciated Assets 43.2% Net Debt to Adjusted EBITDA Ratio2 5.7x Security Stated Rate3 Effective Rate4 2014 2015 2016 2017 2018 Thereafter Total Revolving Credit Facility due 20165,6 1.45% 1.45% $ — $ — $ — $ — $ — $ — $ — Secured Mortgages 5.42% 5.63% 4,621 74,592 124,189 102,744 14,880 145,969 466,995 Unsecured Term Loan due 20186 1.35% 2.30% — — — — 300,000 — 300,000 Unsecured Term Loan due 2019 1.85% 2.99% — — — — — 155,000 155,000 Unsecured Senior Notes due 2021 3.38% 3.38% — — — — — 300,000 300,000 Unsecured Senior Notes due 2023 3.70% 3.70% — — — — — 300,000 300,000 Net premium (discount) (1,550) Total Debt 3.51% 3.88% $ 4,621 $ 74,592 $ 124,189 $ 102,744 $ 314,880 $ 900,969 $ 1,520,445 8 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 Equity 65.7% Secured Debt 10.5% Unsecured Debt 23.8%

 
SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 Covenants Bank Loans Required June 30, 2014 Total Leverage 60% 44% Secured Leverage 30% 14% Tangible Net Worth 1,297 1,786 Fixed Charge Coverage 1.65x 3.47x Unencumbered Leverage 60% 41% Unencumbered Coverage 1.75x 6.14x Senior Notes Required June 30, 2014 Total Leverage 60% 44% Secured Leverage 40% 14% Unencumbered Asset Coverage 150% 251% Interest Coverage 1.50x 3.30x Three Months Ended June 30, Six Months Ended June 30, 2014 2013 2014 2013 Interest related to derivative financial instruments $ 1,370 $ 996 $ 2,715 $ 2,361 Net (gain) loss on change in fair value of derivative financial instruments 2,580 (8,922) 3,421 (10,528) Total interest expense and net change in the fair value of derivative financial instruments 3,950 (7,926) 6,136 (8,167) Interest related to debt 11,779 12,240 23,683 23,558 Total interest expense $ 15,729 $ 4,314 $ 29,819 $ 15,391 Interest expense excluding net change in the fair market value of derivatives $ 13,149 $ 13,236 $ 26,398 $ 25,919 Interest Expense Interest Expense and Covenants (in thousands) 9

 
2014 Acquisitions and Historical Acquisition Activity as of June 30, 2014 ________________ 1. GLA and purchase price are in thousands. GLA is based on measurements at time of acquisition. 2. Based on acquisition purchase price. 2014 Acquisition Activity Historical Acquisition Activity Property Property Location Date Acquired % Leased at Acquisition Purchase Price1 GLA1 Tufts Medical Center (Biewend and Tupper) Boston, MA June 2014 100% $ 148,100 252 Sunset Professional and Kendall MOBS Miami, FL June 2014 81 27,900 112 Johnston Professional Building Baltimore, MD June 2014 100 24,000 79 3100 Blue Ridge Raleigh, NC June 2014 100 11,500 41 Total $ 211,500 484 Purchase Price1 % of Total GLA1 % of Total 2014 $ 211,500 6.6% 484 3.3% 2013 397,826 12.4 1,475 10.1 2012 294,937 9.2 1,358 9.3 2011 68,314 2.1 306 2.1 2010 802,148 25.0 3,530 24.2 2009 455,950 14.2 2,251 15.5 2008 542,976 16.9 2,919 20.0 2007 413,150 12.9 2,247 15.5 Subtotal 3,186,801 99.3 14,570 100.0 Mortgage note receivable 23,520 0.7 N/A N/A Total Historical Acquisitions $ 3,210,321 100% 14,570 100% Dispositions/Mortgage note receivable payments2 (11,250) (0.3) N/A N/A Total Investment $ 3,199,071 10 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Regional Portfolio Distribution ________________ 1. In thousands. Portfolio Information as of June 30, 2014 Regional Portfolio Distribution Investment1 % of Investment Total Market GLA (SF)1 % of Portfolio Annualized Base Rent1 % of Annualized Base Rent Southwest $ 1,010,428 31.7% 4,199 28.8% $ 89,552 31.0% Southeast 916,584 28.8 4,373 30.0 85,466 29.6 Northeast 703,508 22.1 3,086 21.2 63,630 22.0 Midwest 556,281 17.4 2,908 20.0 50,133 17.4 Total $ 3,186,801 100% 14,566 100% $ 288,781 100% Key Markets Concentration Investment1 % of Investment Total Market GLA (SF)1 % of Portfolio Annualized Base Rent1 % of Annualized Base Rent Boston, MA $ 248,100 7.8% 611 4.2% $ 17,203 6.0% Dallas, TX 223,448 7.0 682 4.7 18,423 6.4 Phoenix, AZ 219,571 6.9 1,152 7.9 20,967 7.3 Albany, NY 179,253 5.6 879 6.0 16,256 5.6 Greenville, SC 179,070 5.6 965 6.6 17,139 5.9 Miami, FL 155,607 4.9 752 5.2 15,282 5.3 Houston, TX 151,766 4.8 692 4.8 15,766 5.5 Pittsburgh, PA 148,612 4.6 1,094 7.4 19,901 6.8 Atlanta, GA 133,293 4.2 597 4.1 11,199 3.9 Indianapolis, IN 117,650 3.7 850 5.8 11,654 4.0 Denver, CO 75,100 2.4 260 1.8 5,960 2.1 Raleigh, NC 56,000 1.7 285 2.0 5,675 1.9 Total $ 1,887,470 59.2% 8,819 60.5% $ 175,425 60.7% 11 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 Key Market Concentration

 
Same-Property Performance1 ________________ 1. GLA, revenues, expenses, NOI and leased square feet are in thousands. 2. Same-Property Cash NOI excludes properties which have not been owned and operated during the entire span of all periods reported or are expected to be sold in the near term, notes receivable interest income, and certain non-routine items. Same-Property Performance and Net Operating Income Three Months Ended Sequential Year - Over - Year 6/30/2014 3/31/2014 6/30/2013 Change % Change Change % Change Rental Revenue $ 61,904 $ 61,296 $ 60,640 $ 608 1.0% $ 1,264 2.1% Tenant Recoveries 13,540 15,617 13,443 (2,077) -13.3 97 0.7 Total Rental Income 75,444 76,913 74,083 (1,469) -1.9% 1,361 1.8% Expenses 21,623 23,792 21,882 (2,169) -9.1 (259) -1.2 Same-Property Cash NOI2 $ 53,821 $ 53,121 $ 52,201 $ 700 1.3% $ 1,620 3.1% Three Months Ended 6/30/2014 3/31/2014 6/30/2013 Number of Buildings 265 265 265 GLA 12,735 12,735 12,735 Leased SF, end of period 11,597 11,576 11,592 Leased %, end of period 91.1% 90.9% 91.0% 12 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 Three Months Ended June 30, 2014 2013 Net income $ 2,883 $ 14,233 General and administrative expenses 5,903 6,217 Acquisition-related expenses 4,869 658 Depreciation and amortization expense 33,602 29,583 Interest expense and net change in fair value of derivative financial instruments 15,729 4,314 Gain on extinguishment of debt (365) — Other income (14) (10) NOI $ 62,607 $ 54,995 NOI percentage growth 13.8% NOI $ 62,607 $ 54,995 Straight-line rent adjustments, net (1,553) (1,631) Amortization of below and above market leases, net 607 520 Lease termination fees — (3) Cash NOI 61,661 53,881 Notes receivable interest income (564) (546) Non Same-Property Cash NOI (7,276) (1,134) Same-Property Cash NOI $ 53,821 $ 52,201 Same-Property Cash NOI percentage growth 3.1% Net Operating Income

 
Historical Campus Proximity GLA as of 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Off-Campus Aligned 21% 22% 22% 24% 24% On-Campus 75 74 74 72 72 On-Campus/Aligned 96% 96% 96% 96% 96% Off-Campus Non-Aligned 4 4 4 4 4 Total 100% 100% 100% 100% 100% Portfolio Diversification by Type and Historical Campus Proximity ________________ 1. GLA and Annualized Base Rent are in thousands. Number of Buildings Number of States GLA1 % of Total GLA Annualized Base Rent1 % of Annualized Base Rent Medical Office Buildings: Single-tenant 78 17 3,411 23.4% $ 71,311 24.7% Multi-tenant 198 23 9,919 68.1 186,119 64.5 Other Healthcare Facilities: Hospitals 10 4 655 4.5 22,614 7.8 Seniors housing 9 3 581 4.0 8,737 3.0 Total 295 27 14,566 100% $ 288,781 100% 13 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 Number of Buildings Number of States GLA1 % of Total GLA Annualized Base Rent1 % of Annualized Base Rent Net-Lease/Gross Lease: Net lease 186 25 9,120 62.6% $ 185,758 64.3% Gross lease 109 15 5,446 37.4 103,023 35.7 Total 295 27 14,566 100% $ 288,781 100% Portfolio Diversification by Type as of June 30, 2014

 
Tenant Lease Expirations and Historical Leased Rate Historical Leased Rate (End of Period) ________________ 1. GLA and annualized base rent are in thousands. Tenant Lease Expirations as of June 30, 2014 As of 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Total Portfolio Leased Rate 91.5% 91.2% 91.6% 91.4% 91.3% On-Campus/Aligned Leased Rate 91.7% 91.4% 92.0% 91.8% 91.6% Off-Campus Leased Rate 85.7% 85.2% 83.4% 82.7% 84.3% Total Annualized % of Number of GLA of % of Base Rent of Total Leases Expiring Leased Expiring Annualized Expiration Expiring Leases1 GLA Leases1 Base Rent Month-to-month 126 234 1.8% $ 4,859 1.7% Third quarter 2014 56 124 0.9 2,479 0.9 Fourth quarter 2014 82 197 1.5 3,829 1.3 2014 138 321 2.4 6,308 2.2 2015 308 807 6.1 18,518 6.4 2016 308 1,314 9.9 26,984 9.3 2017 314 1,365 10.2 28,393 9.8 2018 271 1,554 11.7 32,013 11.1 2019 188 1,003 7.5 23,686 8.2 2020 145 739 5.5 15,769 5.5 2021 158 1,331 10.0 26,200 9.1 2022 120 886 6.6 20,931 7.2 2023 45 679 5.1 12,891 4.5 Thereafter 168 3,095 23.2 72,229 25.0 Total 2,289 13,328 100% $ 288,781 100% 14 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Top 15 Health System Relationships as of June 30, 2014 ________________ 1. GLA and annualized base rent are in thousands. Weighted Average % of Remaining Total % of Annualized Annualized Lease Credit Leased Leased Base Base Health System Term Rating GLA 1 GLA Rent1 Rent Highmark 8 A- 871 6.5% $ 16,121 5.6% Greenville Hospital System 10 A1 761 5.7 13,724 4.8 Hospital Corp of America 5 B1 356 2.7 8,449 2.9 Community Health Systems 4 B1 327 2.4 7,227 2.5 Steward Health Care System 13 B3 317 2.4 7,344 2.6 Aurora Health Care 10 A3 315 2.4 6,684 2.3 Indiana University Health 3 Aa3 294 2.2 4,751 1.6 Deaconess Health System 9 A+ 261 2.0 4,011 1.4 Tufts Medical Center 13 BBB 252 1.9 9,108 3.2 Banner Health 7 AA+ 207 1.6 4,339 1.5 Capital District Physicians Health Plan 2 NR 198 1.4 3,027 1.0 Catholic Health Partners 3 A1 165 1.2 2,692 0.9 Wellmont Health System 8 BBB+ 158 1.2 2,690 0.9 Rush University Medical Center 6 A2 137 1.0 4,547 1.6 Blue Cross and Blue Shield of Florida, Inc. 16 A+ 117 0.9 3,189 1.1 Top 15 Total 4,736 35.5% $ 97,903 33.9% 15 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 As of June 30, 2014, HTA’s national property management and leasing platform managed 13.1 million square feet of GLA, or 90% of total portfolio GLA. HTA continues to roll out its national property management and leasing platform to additional markets, including approximately 529,000 square feet of GLA which transitioned to the HTA platform during the second quarter of 2014. In-House Property Management In-House SF (Single-Tenant) In-House SF (Multi-Tenant) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2011 2012 2013 6/30/2014

 
Health System Relationship Highlights Forest Park Medical Center (NR), headquartered in Dallas, Texas, is a leading physician-owned health system focused on private-pay hospitals in key markets. With medical center locations in Dallas, Frisco, and Southlake, and plans to expand to Fort Worth, Austin, and San Antonio, Forest Park will include over 280 beds and 70 operating suites upon completion, in world-class facilities. Greenville Health System (A1), located in Greenville, South Carolina, is a nonprofit academic delivery system and is one of the largest health systems in the state of South Carolina with six medical campuses, eight outpatient centers, five acute care hospitals, two specialty hospitals, four long-term care facilities, outpatient facilities, a wellness center, and research and academics – including the University of South Carolina School of Medicine- Greenville and Clemson University. The system has 1,358 beds, approximately 1,306 physicians included in medical staff, and approximately 12,000 employees. Highmark (A-), based in Pittsburgh, Pennsylvania, is among the largest health insurers in the United States and the fourth largest Blue Cross and Blue Shield-affiliated company. In 2013, Highmark and West Penn Allegheny combined to create an integrated care delivery model which they believe will preserve an important community asset that provides high-quality, efficient health care for patients. Highmark’s mission is to make high quality health care easily accessible, understandable and affordable. Hospital Corporation of America (B1), Nashville-based HCA was one of the nation’s first hospital companies. Today, they are the nation’s leading provider of healthcare services, a company comprised of locally managed facilities that includes about 165 hospitals and 115 freestanding surgery centers in 20 states and England and employing approximately 204,000 people. Approximately four to five percent of all inpatient care delivered in the country today is provided by HCA facilities. 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. Indiana University Health (Aa3), based in Indianapolis, Indiana, is Indiana’s most comprehensive healthcare system. A unique partnership with Indiana University School of Medicine, one of the nation’s leading medical schools, gives patients access to innovative treatments and therapies. IU Health is comprised of hospitals, physicians and allied services dedicated to providing preeminent care throughout Indiana and beyond. Piedmont Healthcare (Aa3), based in Atlanta, Georgia, is the Atlanta region’s premier community healthcare system. Founded in 1905, Piedmont is driven by the mission to create a system committed to compassion, advanced treatments, access to care and strong connections to make their patients, communities and region better. What started as a single hospital a century ago has grown into an integrated healthcare system with five hospitals and close to 100 physician and specialist offices across greater Atlanta and North Georgia. Steward Health Care System (B3), located in Boston, Massachusetts, is a community-based accountable care organization and community hospital network with more than 17,000 employees serving more than one million patients annually. The system includes 11 hospitals and over 2,000 beds that reach over 150 communities in the greater Boston area. Other Steward Health Care entities include Steward Medical Group, Steward Health Care network, and Steward Home Care. Tenet Healthcare System (B1), located in Dallas, Texas, is a leading health care services company, through its subsidiaries operates 77 acute care hospitals, 186 outpatient centers, and Conifer Health Solutions, which provides business process solutions to more than 700 hospitals and other clients nationwide. Tenet's hospitals and related health care facilities are committed to providing high quality care to patients in the communities they serve. Tufts Medical Center (BBB), located in Boston, Massachusetts, is a 415-bed academic medical center, providing everything from routine and emergency care to treating the most complex diseases and injuries affecting adults and children throughout New England. It is the principal teaching hospital for Tufts University School of Medicine, conducting groundbreaking medical and health policy research and is in the top 15 percent of independent institutions receiving federal research funding. Tufts Medical Center is obsessively focused on delivering the highest quality care to all their patients. 16 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Condensed Consolidated Balance Sheets (unaudited and in thousands, except share data) June 30, 2014 December 31, 2013 ASSETS Real estate investments: Land $ 249,116 $ 203,001 Building and improvements 2,520,405 2,358,071 Lease intangibles 424,993 411,857 3,194,514 2,972,929 Accumulated depreciation and amortization (509,042) (445,938) Real estate investments, net 2,685,472 2,526,991 Real estate notes receivable 13,520 28,520 Cash and cash equivalents 132,719 18,081 Restricted cash and escrow deposits 19,350 18,114 Receivables and other assets, net 114,459 110,285 Other intangibles, net 49,051 50,343 Total assets $ 3,014,571 $ 2,752,334 LIABILITIES AND EQUITY Liabilities: Debt, net $ 1,520,445 $ 1,214,241 Accounts payable and accrued liabilities 81,198 82,893 Derivative financial instruments - interest rate swaps 5,685 5,053 Security deposits, prepaid rent and other liabilities 34,032 35,339 Intangible liabilities, net 11,686 11,797 Total liabilities 1,653,046 1,349,323 Commitments and contingencies Redeemable noncontrolling interest of limited partners 3,264 3,262 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; 238,909,961 and 236,880,614 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively 2,389 2,369 Additional paid-in capital 2,146,545 2,126,897 Cumulative dividends in excess of earnings (802,366) (742,060) Total stockholders’ equity 1,346,568 1,387,206 Noncontrolling interest 11,693 12,543 Total equity 1,358,261 1,399,749 Total liabilities and equity $ 3,014,571 $ 2,752,334 17 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Condensed Consolidated Statements of Operations (unaudited and in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2014 2013 2014 2013 Revenues: Rental income $ 88,946 $ 77,005 $ 179,398 $ 153,246 Interest income from real estate notes receivable 725 619 1,577 1,239 Total revenues 89,671 77,624 180,975 154,485 Expenses: Rental 27,064 22,629 56,653 46,598 General and administrative 5,903 6,217 12,202 12,665 Acquisition-related 4,869 658 5,845 1,683 Depreciation and amortization 33,602 29,583 68,544 58,144 Listing — — — 4,405 Total expenses 71,438 59,087 143,244 123,495 Income before other income (expense) 18,233 18,537 37,731 30,990 Other income (expense): Interest expense: Interest related to derivative financial instruments (1,370) (996) (2,715) (2,361) Net gain (loss) on change in the fair value of derivative financial instruments (2,580) 8,922 (3,421) 10,528 Total interest related to derivative financial instruments, including net change in the fair value of derivative financial instruments (3,950) 7,926 (6,136) 8,167 Interest related to debt (11,779) (12,240) (23,683) (23,558) Gain on extinguishment of debt 365 — 365 — Other income 14 10 40 18 Net income $ 2,883 $ 14,233 $ 8,317 $ 15,617 Net income attributable to noncontrolling interests (28) (208) (170) (241) Net income attributable to common stockholders $ 2,855 $ 14,025 $ 8,147 $ 15,376 Earnings per common share - basic: Net income attributable to common stockholders $ 0.01 $ 0.06 $ 0.03 $ 0.07 Earnings per common share - diluted: Net income attributable to common stockholders $ 0.01 $ 0.06 $ 0.03 $ 0.07 Weighted average number of common shares outstanding: Basic 238,025 225,610 237,658 221,380 Diluted 240,551 227,780 240,189 222,585 18 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Reporting Definitions Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA): Is presented on an assumed annualized basis. HTA defines Adjusted EBITDA as net income computed in accordance with GAAP plus depreciation, amortization, interest expense and net change in the fair value of derivative financial instruments, acquisition-related expenses and non-cash compensation expense. We consider Adjusted EBITDA an important measure because it provides additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt. The following is a reconciliation of our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA. The Pro Forma Impact is presented to show the additional EBITDA that would have resulted if all acquisitions were completed on the first day of the quarter. Annualized Base Rent: Annualized base rent is calculated by multiplying contractual base rent for June 2014 by 12 (excluding the impact of abatements, concessions, and straight-line rent).  Credit Ratings: Credit ratings of our tenants or their parent companies. Funds from Operations (FFO): HTA computes FFO in accordance with the current standards established by the National Association of Real Estate Investment Trusts, or 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 property and impairment write-downs of depreciable assets, plus depreciation and amortization, 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 asset values have historically risen or fallen based on market conditions, many industry investors have considered 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’s methodology for calculating FFO may be different from methods utilized by other REITs and, accordingly, may not be comparable to such other REITs. 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 our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of sufficient cash flow to fund all of our needs. FFO should be reviewed in connection with other GAAP measurements. Gross Leasable Area (GLA): Gross leasable area (in square feet). Gross Real Estate Investments: Based on acquisition price and includes two portfolios of real estate notes receivable. Leased Rate: Leased rate represents the percentage of total gross leasable area that is leased, including month-to-month leases and leases that are signed but not yet commenced, as of the date reported. Three Months Ended June 30, 2014 Adjusted EBITDA Net income $ 2,883 Add: Depreciation and amortization 33,602 Interest expense and net change in fair value of derivative financial instruments 15,729 EBITDA 52,214 Acquisition-related expenses 4,869 Non-cash compensation expense 866 Pro Forma Impact 2,863 Adjusted EBITDA 60,812 Annualized Adjusted EBITDA $ 243,248 19 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014

 
Reporting Definitions (continued) Normalized Funds Available for Distribution (Normalized FAD): HTA computes Normalized FAD, which excludes from Normalized FFO other income or expense, non-cash compensation expense, straight-line rent adjustments, amortization of below and above market leases, deferred revenue - tenant improvement related, amortization of deferred financing costs and debt premium/discount and recurring capital expenditures, tenant improvements and leasing commissions. HTA believes this non-GAAP financial measure provides a meaningful supplemental measure of its ability to fund its ongoing dividends. 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 our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of sufficient cash flow to fund all of our 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 acquisition-related expenses, listing expenses, net gain or loss on change in the fair value of derivative financial instruments, gain or loss on the extinguishment of debt, noncontrolling income or loss from operating partnership units included in diluted shares and other normalizing items. HTA presents this non-GAAP financial measure because it allows for the comparison of our 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 such 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 our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of sufficient cash flow to fund our needs. Normalized FFO should be reviewed in connection with other GAAP measurements. Off-Campus:  A building or portfolio that is not located on or adjacent to key hospital based-campuses and is not aligned with recognized healthcare systems. On-Campus/Aligned:  On-campus refers to a property that is located on or adjacent to a healthcare system. Aligned refers to a property that is not on the campus of a healthcare system, but anchored by a healthcare system. Recurring Capital Expenditures, Tenant Improvements, Leasing Commissions: Represents amounts paid for (i) recurring capital expenditures required to maintain and re-tenant our 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:  Tenant Retention Rate is defined as 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): Same-Property Cash NOI excludes properties which have not been owned and operated during the entire span of all periods reported or are expected to be sold in the near term, notes receivable interest income, and certain non-routine items. Same-Property Cash NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of our financial performance. Same-Property Cash NOI should be reviewed in connection with other GAAP measurements. 20 SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION SECOND QUARTER 2014 Net Operating Income (NOI):  NOI is a non-GAAP financial measure that is computed as net income or loss (computed in accordance with GAAP) before general and administrative expenses, acquisition-related expenses, depreciation and amortization expense, listing expenses, interest expense and net change in the fair value of derivative financial instruments, gain or loss on extinguishment of debt and 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 the properties. Additionally, HTA believes that NOI is a widely accepted measure of comparative operating performance in the evaluation 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 our financial performance. NOI should be reviewed in connection with other GAAP measurements. Cash Net Operating Income (Cash NOI):  Cash NOI is a non-GAAP financial measure which excludes from NOI straight-line rent adjustments, amortization of below and above market leases and lease termination fees. HTA believes that Cash NOI 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 our financial performance. Cash NOI should be reviewed in connection with other GAAP measurements.