Communication from the CEO

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2019 Shareholder Letter

Dear Shareholder,

As I write this letter, our current global condition in 2020 is very different than the one we found ourselves in throughout 2019. The COVID-19 virus has spread globally and impacted every community, every tenant, and every employee in our company. First and foremost, our thoughts are with everyone that has been impacted directly by the virus or through the financial impact of the resulting economic shut downs. I also want to thank our 300+ employees for their dedication to HTA as well as our tenants. Throughout all phases of this pandemic, they have kept our medical office buildings operational and available for patients to be treated; while also preparing them for the increase in patients expected to flood back into our buildings as restrictions start to decline.

As a company, Healthcare Trust of America, Inc. has never been stronger. We have run our company on a set of principles that were aimed at allowing HTA to execute and manage through all different environments and market conditions. We are invested in outpatient healthcare, a sector that is extremely resilient and driven by long term trends that have not changed. We have created a company that is the leader in this dynamic sector, with a portfolio that is focused in great markets with experienced healthcare leaders and a unique management company that operates our buildings with tremendous local insight and efficiency. Finally, we have maintained a fortress balance sheet that allows us to not only survive, but thrive in turbulent times. As a shareholder of HTA myself, I take great comfort and pride in our company and its future during these times.

Healthcare Sector is Strong & Resilient
The demand for healthcare services is strong and will continue to grow as our country ages. While there may be short term disruptions in the healthcare marketplace related to this pandemic, the sector is extremely resilient and should bounce back quickly. This care is also moving to lower cost and more convenient outpatient locations. These trends provide significant underlying support and value to MOBs.

The Leader in MOBs
We ended 2019 as the largest private owner and operator of medical office buildings in the U.S. We are not just the largest, we are also the leader based on the following:

1. We own a high-quality portfolio of medical office buildings focused in 15-20 key markets with favorable demographics. We have achieved economies of scale, with 17 markets over 500k SF and 10 at 1 million SF. Our portfolio reflects where healthcare is growing, located on-campus, in core community outpatient, and academic medical center locations. As a result, our tenants include the strength of a diversified mix of health systems, independent doctors, and affiliated healthcare providers.

2. We have a unique internal platform that operates our properties. This team of property management, building engineering and leasing professionals has been built out over the last 10 years and builds off our scale in key markets. By establishing this team, we are able to provide superior service and operating efficiencies to our tenants. It also gives us the on-the-ground personnel that is critical in times such as these.

3. We have a strong and conservative, investment grade balance sheet that allows us to remain strong and weather any market conditions. In 2019, we took significant actions to maintain this position, raising over $600 million in equity and pushing out all near term debt maturities. We also have over $1 billion in liquidity. All of this will allow us to not only weather these market conditions, but also proactively take steps that support our leadership in this great sector.

In closing, we are closely monitoring the COVID-19 outbreak as it evolves globally and the corresponding potential impacts on our local markets, our employees, our tenants and our properties. The actions we have taken over the last 5 years have made HTA the leader in MOBs. As a result, we entered 2020 in a position of strength that should enable HTA to continue taking action in support of this position.

I would like to thank you for your trust, support and confidence in our directors and management team, and for the personal opportunity and privilege to be Chairman and CEO of Healthcare Trust of America, Inc.

 

Sincerely,

Scott D. Peters
Chairman, CEO and President
April 29, 2020