HEALTHCARE TRUST OF AMERICA, INC.

Transcription

1 A Leading Owner of Medical Office Buildings A Leading Owner and Operator of Medical Office Buildings NYSE: TA 670 ALBANY AT BOSTON MEDICAL CENTER BOSTON, MA BOSTON MEDICAL CENTER AND BOSTON UNIVERSITY CAMPUS EALTCARE TRUST OF AMERICA, INC. BOSTON, MASSACUSETTS MARKET SPOTLIGT SECOND QUARTER 2015

2 ENTERPRISE PLATFORM FOR DYNAMIC EALTCARE REAL ESTATE ealthcare Trust of America, Inc. (NYSE: TA) is a publicly traded real estate investment trust (REIT) that acquires, owns, and operates medical office buildings. Over the last ten years since its formation in 2006, the company has invested $3.6 billion in medical office buildings comprising 15.4 million square feet across 28 states. TA has a consistent track record of generating shareholder returns and listed on the New York Stock Exchange in June of TA invests in key markets with above average growth and healthcare infrastructure that is capable of servicing long-term patient demand. Within each key market, TA focuses on acquiring medical office buildings on health system campuses, in community-core locations, or around university medical centers. The portfolio consists of medical office buildings that are core-critical, a key part of the integrated delivery of healthcare, and that continue to complement the company s institutional asset management and leasing platform. TA s business strategy is underlined by establishing critical mass within key markets which allows the asset management and in-house leasing platform to drive earnings growth, uncover synergies and maximize expense efficiencies, and build lasting tenant relationships which leads to retention, rent growth and long-term value creation across the portfolio. DEDICATED MEDICAL OFFICE BUILDING SPECIALIST» Commitment to a simple story that provides exposure for shareholders to real estate in the growing healthcare sector» The Affordable Care Act, aging demographics, and a rising trend towards outpatient visits should all benefit medical office OWNERS OF CORE-CRITICAL REAL ESTATE, KEY FOR TE FUTURE OF EALTCARE DELIVERY» 96% of assets are located on-campus or aligned with leading healthcare systems» 91% of assets are located in either a key market or a Top 75 MSA FOCUSED ASSET MANAGEMENT AND LEASING» Leased rate of 92% and growing with consistent same-property cash net operating income growth» Focus on tenant and health system relationships with over 90% managed by TA s specialized property management and leasing platform CONSISTENT SAREOLDER RETURN» Investment grade balance sheet with Baa2 and BBB credit ratings» Shareholder returns have averaged 9% per annum and 111% in total since our founding VICTOR FARRIS BUILDING WEST PALM BEAC, FL GOOD SAMARITAN OSPITAL CAMPUS» Stable cash flows secure a quarterly dividend

3 WY MEDICAL OFFICE BUILDINGS? EALTCARE IS CANGING Medical Office is benefiting from tremendous macro-economic tailwinds that make it an attractive real estate sector in which to invest. On top of that, MOBs are one of the few asset classes that are utilized by every individual throughout their lifetime, with each person making approximately 3.7 trips to a physician s office on an annual basis. This is a key driver for the high levels of tenant retention in the space. From a macroeconomic perspective, there are several trends that are driving further demand and changing the healthcare industry today. The implementation of the Affordable Care Act (ACA) is expected to add between 25 and 35 million new insured individuals. The U.S. population is aging, with the number of elderly Americans growing at significant rates and over 10,000 individuals turning 65 every day. As a result of these trends, the healthcare sector and healthcare employment are projected to grow significantly faster than the rest of the U.S. economy. At the same time, the ACA and technological changes are pushing healthcare into more cost efficient and integrated outpatient settings. As a result, hospitals are reevaluating their business models to capture gains in efficiency. This push is driving integration in the delivery of care and has increasingly relegated procedures and outpatient care into medical office. Similarly, physicians and health systems are grouping together to increase their overhead efficiency and invest in new technology. ealthcare is increasingly being provided in part by nurses, physician assistants, and allied health providers a key reason that healthcare is expected to be the fastest growing employment sector of this decade. DEDICATION TO MEDICAL OFFICE TA is dedicated to the medical office sector, which allows the company to develop dedicated, long term relationships with healthcare systems, academic medical centers and teaching hospitals, key physician groups, developers, and other industry participants in this space. The portfolio consists of medical office properties that will continue to be core, critical to the delivery of healthcare as demand grows and as the integration of the macroeconomic tailwinds shape the delivery of care. INSTITUTIONAL ASSET MANAGEMENT PLATFORM DRIVES EFFICIENCY IN KEY MARKETS TA s business strategy is underlined by establishing critical mass in key markets where TA s institutional property management and in-house leasing platform can generate scale, maximize expense efficiencies, and build lasting tenant relationships. To meet the specialized needs of healthcare providers, TA has developed one of the industry s most comprehensive asset management platforms that includes dedicated professionals in property management, leasing, engineering, accounting, construction and facilities management. Over 14 million square feet of space is currently managed by TA s national platform which is directed from TA s corporate headquarters in Scottsdale, Arizona and executed in over 10 regional offices within local markets. CONSISTENT SAREOLDER RETURNS TA believes medical office buildings provide stable cash flows with relatively low vacancy risk, while still allowing for potentially higher returns through exposure to the fast growing healthcare sector. With dedication to this sector, TA has generated shareholder returns that average 9% per annum since its founding through June 30, TA pays a consistent dividend of $1.16 per annum, paid quarterly, that is supported by recurring and stable cash flow. TA STOCKOLDER RETURNS (1/1/2007 TROUG 6/30/15) 175% 125% 75% 25% -25% -75% TA US REIT Index (RMS) S&P 500 * From 2007 through June 6, 2012, TA was a publicly registered non-listed security TA: 111% S&P: 75% RMS: 37% TA KEY FACTS* Occupancy: 92% Investment: $3.6 Billion Gross Leasable Area (SF): 15.4 Million On-Campus / Aligned: 96% Located in Top 75 MSA: 91% Same-Property Tenant Retention: 82% (YTD) % of Properties on In-ouse Platform: 94% Credit Rated Tenants: 60% Investment Grade Credit Ratings: BBB / Baa2** Leverage: 35% of Total Capitalization * As of 6/30/15 ** As rated by Standard & Poor s and Moody s ACQUISITIONS BY YEAR $900M $800M $700M $600M $500M $400M $300M $200M $100M $0 * Excludes real estate notes receivable, as of 6/30/15 KEY EALT SYSTEM RELATIONSIPS TENANT 456M 802M ACQUISITIONS 295M ighmark / WPA A- 5.1% Greenville ospital System A1 4.4% ospital Corporation of America BB 3.0% Tufts Medical Center BBB 3.0% Community ealth Systems B1 2.5% Steward ealth Care System B3 2.4% Aurora ealth Care A3 2.2% Boston Medical Center Baa2 1.5% Rush University Medical Center A1 1.5% Indiana University ealth System Aa3 1.3% Deaconess ealth System AA- 1.3% Boston University A1 1.2% Community ealth Network A2 1.1% * Annualized Base Rent, as of 6/30/15 398M 440M DISPOSITIONS CREDIT RATING 226M 68M 83M % OF ABR*

4 TE BIEWEND BUILDING BOSTON, MA TUFTS MEDICAL CENTER CAMPUS

5 FAVORABLE MACROECONOMIC TRENDS: EALTCARE IS GROWING The healthcare industry is expected to be one of the fastest growing parts of the U.S. economy over the next decade reaching almost 20% of U.S. GDP by This is driven by the aging of the baby boomer generation and the long-term rollout of the Affordable Care Act. This increased demand for care is expected to make healthcare the fastest growing sector for employment over the next decade. All of these factors are resulting in a change in the way that healthcare will be delivered primarily through the movement of care to outpatient settings that are more cost-effective. AGING POPULATION OVER 10,000 INDIVIDUALS TURN 65 EVERY DAY AFFORDABLE CARE ACT EXPANDS ACCESS ADDITIONAL INSURED MILLIONS Sources: U.S. 120 Census Bureau, Rosen Consulting Group All Occupa ons - Total U.S. 40 Total ealthcare 20Physicians and Surgeons 0 PROJECTED U.S. EMPLOYMENT GROWT ( F) Registered Nurses ealthcare Techs 11% 17% 19% 19% 27% 25% 20% 15% 10% 5% 0% MILLIONS mm 247 Occupa onal Therapists 29% Therapists 65+ POPULATION AS A % OF TOTAL U.S. POPULATION 32% 200 BEFORE ACA AFTER ACA Physician Assistants Sources: U.S. Census Bureau, Rosen Consulting Group Sources: Bureau of Labor Statistics, Rosen Consulting Group 38% Sources: Congressional Budget Office, Rosen Consulting Group» Baby boomers are ADDITIONAL aging, causing INSURED the elderly BY population TE ACAto become 17% of the population by 2020 MILLIONS 250» Utilization of healthcare services increases with age, increasing 247 demand for 240 healthcare services over time 230» The Census projects that the average life span will surpass 80 years by 2020» An additional 25 to 35 million individuals will gain health insurance by 2020» Increasing focus on cost-efficient, preventative medicine» More insurance coverage, more patients, more health service utilization BEFORE A CA R OUTPATIENT VISITS ARE INCREASING AFTE ACAOVER TIME Sources: Congressional Budget Office, Rosen Consulting Group INPATIENT ADMISSIONS AND OUTPATIENT VISITS EALTCARE EMPLOYMENT IS STRONG PROJECTED U.S. EMPLOYMENT GROWT ( EST) INPATIENT OUTPATIENT ,500 2,000 1,500 1, All Occupations - Total U.S. Physicians and Surgeons Registered Nurses Total ealthcare ealthcare Techs Physician Assistants Occupational Therapists 11% 18% 19% 24% 24% 38% 41% INPATIENT ADMISSIONS/1000 PERSONS Source: American ospital Association OUTPATIENT VISITS/1000 PERSONS 0Sources: Bureau 10of Labor Statistics, 20 Rosen Consulting 30 Group 40 50» ospitals have been facing limitations on expansion and as a result, more procedures are being performed in outpatient facilities» Insurance companies and government healthcare programs have been directing patients to less costly outpatient care» On average, individuals visit a physician in an outpatient setting 3.7 times each year» Consumer preferences for specialists and preventative care have boosted healthcare employment in these specialties, accelerating demand for MOBs as patients move to the lower cost, outpatient settings» Increased healthcare utilization is driving healthcare employment» ealthcare sector employment is projected to grow 70% faster than the broader U.S. economy through 2022» Increasing demand for non-physician practitioners, including nurses, physician assistants, and other healthcare professionals» From 1994 to 2010 the average number of office visits per person increased from 2.6x to 3.3x per year

6 IN-OUSE ASSET MANAGEMENT & LEASING PLATFORM Our Institutional, Integrated, and In-ouse Platform Generates Performance as Critical Mass is Established in Key Markets TA operates over 90% of its portfolio through its national property management and leasing platform. eadquartered in Scottsdale, Arizona and directed from over ten full-service regional offices, TA has developed a national brand with dedicated relationships at the local level. Property Management» Control of operating expenses through detailed evaluations, ongoing maintenance, energy management and national contracts Leasing» Focus on building critical relationships directly with physicians and health systems and an appropriate tenant mix to provide the highest level of tenant collaboration Engineering» Operate at highest level while reducing costly unexpected capital requirements Construction» Design space specific to the tenant s healthcare delivery, on-time and on-budget Establishing Critical Mass in Key Markets Results in:» Earnings Growth» Cost Savings» Efficiency» Market Knowledge» Tenant Retention» Occupancy» Quality Relationships» Opportunity» Rent Growth KEY MARKET KEY MARKET OTER INVESTED OTER MARKET INVESTED MARKET PORTFOLIO PROPERTY PORTFOLIO PROPERTY TA MANAGEMENT & LEASING OFFICE TA MANAGEMENT & LEASING OFFICE PATEWOOD MEDICAL OFFICE BUILDING B GREENVILLE, SC PATEWOOD MEMORIAL OSPITAL CAMPUS

7 STRATEGIC INVESTMENT IN KEY MARKETS TA s business strategy is underlined by establishing critical mass within key markets which allows the asset management and in-house leasing platform to drive earnings growth, uncover synergies and maximize expense efficiencies, and build lasting tenant relationships which leads to retention, rent growth and long-term value creation across the portfolio. Key Markets and Top 75 MSAs KEY MARKETS MSA RANK SQUARE FOOTAGE (IN TOUSANDS) INVESTED $ (IN MILLIONS) % OF INVESTED $ Boston, MA $ % Dallas, TX $ % Phoenix, AZ 12 1,022 $ % Albany, NY $ % Greenville, SC $ % Miami, FL $ % Atlanta, GA $ % Indianapolis, IN $ % ouston, TX $ % Pittsburgh, PA 22 1,094 $ % Tampa, FL $ % White Plains, NY $ % Denver, CO $ % Raleigh, NC $96 2.7% OTER INVESTED MARKETS MSA RANK SQUARE FOOTAGE (IN TOUSANDS) INVESTED $ (IN MILLIONS) % OF INVESTED $ Charleston, SC $70 1.8% Orlando, FL $62 1.7% onolulu, I $47 1.3% Austin, TX $29 0.8% Columbus, O $22 0.6% Additional Top 75 MSAs 2,802 $ % TOP 75 MSAs 13,958 $3, % LARGO MEDICAL CENTER MEDICAL OFFICE BUILDING LARGO, FL LARGO MEDICAL CENTER CAMPUS

8 KEY MARKET BOSTON, MASSACUSETTS 101 Key Statistics GLA: 844 thousand square feet 5.5% of Portfolio GLA Medical Office Buildings TA Property Management Total Investment $364 million (Largest market in portfolio) WORCESTER BOSTON Key Tenant: Tufts Medical Center (BBB), Boston University (A), Steward ealth Care System (B3), Boston Medical Center (Baa2) 115 1A 95 BROCKTON 6 100% On-Campus / Aligned 97 FALL RIVER % Occupied ighlights Boston is TA s largest market by invested dollars. It is a dynamic market with strong growth, low unemployment, and a diverse economic base. The area has several top-rated universities, creating a highly educated workforce that contributes to its economic performance. Boston also as a mature infrastructure and significant building density, creating high barriers to entry for existing real estate projects. With the Massachusetts ealth Reform Act of 2006 requiring almost every resident to obtain health insurance, Boston healthcare providers benefit from a highly insured population. TA s Boston portfolio is concentrated with four of the leading healthcare systems in the area: Boston University (BU), Boston Medical Center (BMC), Steward ealth Care and the Tufts Medical Center. Steward is one of the leading health systems in New England focused on providing high quality, affordable healthcare. It has significant market share and a presence in multiple communities throughout the region. The Tufts Medical Center is a leading academic medical center located in Boston s urban core. BU and BMC are located in Boston s South End Medical Cluster, an area known as BioSquare which is home to the Center for Advanced BioMedical Research and the National Emerging Infectious Diseases Laboratories. Overall, TA s Boston area MOBs are strategically located in established, high barrier to entry neighborhoods and are adjacent to some of the leading hospitals and medical universities in the region.

9 DEMOGRAPICS DOWNTOWN BOSTON 5 MILES CAMBRIDGE BEACON ILL DOWNTOWN BOSTON BACK BAY TEATRE DISTRICT FENWAY/ KENMORE TE BIEWEND & TUPPER BUILDINGS 3 MILES 1 MILE SOUT END 670 ALBANY AT BOSTON MEDICAL CENTER TE BOSTON METROPOLITAN STATISTICAL AREA Boston MSA U.S Overall Boston MSA U.S Overall 2014 Population 4.7m (#10 in U.S.) 317m 2020 Population Estimate 4.9m (1.3% growth) 331m (1.0% growth) Growth in 65+ Population Est. 5.5% 5.1% 2014 Avg. Income $96,300 $71, Avg. Income Est. $109,000 (3.1% growth) $79,000 (2.7% growth) 2014 Unemployment 3.7% 5.4% DEMOGRAPICS WITIN 1, 3 & 5 MILES OF TA S DOWNTOWN MEDICAL OFFICE BUILDINGS 1 Mile Radius 3 Mile Radius 5 Mile Radius U.S. Overall 2014 Population 67, , , m 5 Year Population Growth Estimate 1.2% 0.9% 0.9% 1.0% Average ousehold Income $103,000 $83,000 $80,000 $71,000 The City of Boston, founded in 1630 and incorporated in 1882, is currently home to over 650,000 residents and over 4.7 million people in its metropolitan area. An animated and diverse business sector, Boston is widely recognized by its universities and hospitals, which are regarded as the best in the country. Finance, high-tech, biotech, healthcare and education are all core sectors in this diversified city. Massachusetts is a leader in healthcare reform, and one of the earliest adapters of the Affordable Care Act. The State operates with no budget deficit making it a great place to run a business. The Tupper and Biewend Buildings are located on the Tufts Medical Center campus in the Theatre District and Chinatown neighborhoods. This bustling area is improving significantly with high end residential and luxury hotels being developed nearby. This unique location also offers walking distance to the rest of the city and numerous public transportation options, including two transit lines located within one quarter mile and a transit station located across the street from the ospital s main entrance. The Boston Medical Center building is located in Boston s Southend Medical Cluster which has emerged as a premier hub of life science, research and healthcare activity. The cluster is anchored by Boston University s School of Medicine and the Boston Medical Center, a private, not-for-profit, 482-bed, academic medical center. Both areas have excellent access to Routes 93 and 90 (The Mass Pike) the major thoroughfares of the City of Boston.

10 BOSTON MEDICAL MARKET OVERVIEW BOSTON S MEDICAL CLUSTERS Tufts Medical Cluster Located on the edge of Boston s thriving Financial District is the Tufts Medical Cluster. Anchored by the 415-bed Tufts Medical Center and Tufts School of Medicine, the cluster is also home to the Floating ospital for Children and various other healthcare institutions. Also driving demand in the neighborhood and making it truly Live-Work- Play-Learn are a handful of robust academic institutions: Emerson College, New England School of Law & Suffolk University. This bustling medical-academic cluster has sparked the development of more than 1,000 new residential units which are slated to be entirely absorbed within months of delivery and will achieve some of the city s highest rents. Also fueling the neighborhood s vitality is extremely convenient access via Interstates 90 (The Mass Pike) and 93. MG Medical Cluster Bound by Cambridge Street and Storrow Drive, the MG Medical Cluster is home to Massachusetts General ospital, a leader of the Boston medical community and one of the most prominent healthcare institutions on the entire East Coast. Also located in this cluster are Massachusetts Eye & Ear and Shriners ospital, two specialty hospitals consistently on the cutting edge of their respective disciplines. Ancillary to these hospitals is a tight medical office and lab market attracting both clinical and research institutions seeking proximity to world class healthcare providers and arvard Medical School s largest teaching hospital (MG). Surrounding the MG Medical Cluster are Beacon ill and the West End, two of Boston s most desirable residential neighborhoods. South End Medical Cluster Boston s South End Medical Cluster has emerged as a premier hub of life science, research and healthcare activity. This cluster is anchored by the Boston University Medical Campus (Boston Medical Center and Boston University School of Medicine). Facilities surrounding the BUMC include the BioSquare (home to The Center for Advanced BioMedical Research and the National Emerging Infectious Diseases Laboratories), CrossTown Center & Perkin Elmer. This vibrant corridor has grown in lockstep with the South End s thriving residential and retail markets. Longwood Medical Cluster The 215-acre Longwood Medical Area campus, consisting of more than 15 million square feet of office, medical office and lab space, is the nation s leading location for the healthcare and life sciences industry. Populated by several world-class hospitals and some of healthcare s foremost research institutions, the LMA is a hotbed for medical learning and development. Beth Israel Deaconess Medical Center, Boston Children s ospital, Brigham & Women s ospital, Dana-Farber Cancer Institute and the New England Baptist ospital all operate their primary campuses in the LMA. Driven by the vibrancy of these hospitals are extremely low office and lab vacancy rates. Drafting off of the hospitals vitality and the presence of arvard Medical School, life science giants such as Merck and Pfizer have located major research operations in the LMA. Rounding out the LMA campus and establishing it as a true Live-Work-Play- Learn neighborhood is the presence of the arvard School of Public ealth, Simmons College, Emmanuel College, Mass College of Art & Design and Wheelock College, creating a 24/7 student populated campus.

11 TA MEDICAL OFFICE TENANTS AND AFFILIATIONS BOSTON MEDICAL CENTER The Boston Medical Center (BMC) is a private, not-for-profit, academic medical center located in Boston s historic South End medical cluster. BMC is the primary teaching affiliate for Boston University s School of Medicine (BUMC), and is the busiest trauma and emergency services center in New England. Established in 1997, BMC s integrated healthcare delivery system stretches to 14 additional community health centers all located in Boston. The center is heavily focused on urban care and is a founder of Boston ealthnet, a not-for-profit health maintenance organization founded in 1997 by BMC and serving over 300,000 members across the state. This is the largest Massealth plan in the state. As the principal teaching organization for BUMC, BMC is dedicated to training the future generation of healthcare professionals. All medical and dental staff hold academic appointments at BUMC or the Boston University Goldman School of Dental medicine. BMC is recognized as a leader in groundbreaking medical research and received approximately $120 million in funding in Boston Medical Center Key Statistics Number of Beds 482 Inpatient Admissions 26,064 Outpatient Activity 1,092,602 Physicians, Residents and Fellows 1,538 Full Time Employees 4,770 Investment Grade Credit Rating Moody s: Baa2 STEWARD EALTCARE SYSTEM Steward ealth Care System is a community-based care organization offering care to patients in all of Eastern Massachusetts. The community health care network has 10 hospital campuses, 24 affiliated urgent care providers, home care, and hospice services. Steward s care expands into more than 150 communities in Eastern Massachusetts so that those in suburban areas can access care close to home. TA s medical office buildings are located on the campuses of St. Elizabeth s Medical Center, the Good Samaritan Medical Center, Carney ospital, Saint Anne s ospital, Nashoba Valley Medical Center, and oly Family ospital. Steward ealthcare System Key Statistics Community ospital Campuses 10 Number of Beds 1,700+ Annual Patients 1,000,000+ Network Physicians 3,000 Investment Grade Credit Rating Moody s: B3 TUFTS MEDICAL CENTER Tufts Medical Center is a 415-bed academic medical center that is home to five affiliated hospitals, the Floating ospital for Children, and a network of more than 1,600 physicians. Tuft s is located in downtown Boston in Chinatown and the Theatre District, and is the principal teaching hospital for Tufts University School of Medicine, constantly ranking in the top ten of the nation s institutions that receive federal research funds. Tufts has a history of groundbreaking medical scientific research, including the formulation of Similac, the discovery of the definitive test for syphilis, the link between obesity and heart disease and pioneering work in immunology that paved the way for organ transplants. Tufts Medical Center serves as a level I Trauma Center, provides heart, kidney and bone marrow transplants and provides comprehensive neurological and neurosurgical care as well as offering cutting edge cancer treatments. The hospital has recently increased its market share due to creating an image of low cost high-quality service. By marketing itself as a cheaper alternative, the hospital has picked up market share from main competitors such as Mass General, while retaining its quality of care. Tufts Medical Center Key Statistics Number of Beds 415 Inpatient Admissions 26,235 Annual Patients 475,000 Network Physicians 1,600+ Full Time Employees 4,419 Investment Grade Credit Rating S&P: BBB; Fitch: BBB

12 2015 ACQUISITION DOWNTOWN BOSTON MEDICAL CENTER AT 670 BOSTON UNIVERSITY MEDICAL CENTER BOSTON MEDICAL CENTER BOSTON UNIVERSITY DENTAL SCOOL BIOSQUARE 670 ALBANY AT BOSTON MEDICAL CENTER BOSTON MEDICAL CENTER AT 670 ALBANY STREET BOSTON, MA BOSTON MEDICAL CENTER CAMPUS Key Statistics Location: Boston, Massachusetts Buildings: 1 on campus Total Investment: $101.5 million GLA: 161 thousand square feet Occupancy: 100% Closed: June 2015 ealth System Affiliation: Boston University (A), Boston Medical Center (Baa2) Lease Terms Tenants: Trustees of BU (A2), Boston Medical Center (Baa2) Occupancy: 100% Blended Rate: $53.00/SF Lease Type: NNN Maturity: Initial Capex: None Year Developed: 2005 Strategic Rationale TA favors top markets with above average growth and in-place healthcare infrastructure that is capable of servicing long-term healthcare demand. Expanding into the Boston market brings TA s total square footage in the area up to 833 square feet. Building critical mass within a market overtime allows TA s in-house asset management platform to uncover synergies, maximize expense efficiencies, and generate long-term value for shareholders. Over 42% of the Boston population holds a Bachelor s degree or higher (compared to just 28% nationally), and this strong educational infrastructure fuels the healthcare, science, research, and technology sectors. Over the course of the last decade, the Life Sciences and igh Tech industries have added almost 50,000 jobs collectively, paving the way for Boston as a world leader in the biotech industry. The Boston Medical Center at 670 Albany is 100% leased to Boston University and Boston Medical Center who are also partners in the ground lease and have a strong interest in maintaining a location on the Boston University Medical Campus and Boston Medical Center s 482-bed ospital. The building was constructed in 2005 to support innovation in biomedical research and science with the most modern and energy efficient building systems. The environmental design earned the first LEED Certification of a Core and Shell Green Building in New England.

13 DOWNTOWN BOSTON MEDICAL CENTER AT 670 ALBANY STREET 670 Albany at Boston Medical Center 670 Albany at Boston Medical Center is a state-of-the-art biomedical research facility located in Boston s South End medical cluster, commonly referred to as BioSquare. The BioSquare project is a two phase campus development undertaken by BU and BMC to comprise over 1 million SF of state-of-the art medical research facilities. Roughly 700,000 SF have been completed to date including 670 Albany, the Evan Biomedical Research Center, the Center for Advanced Biomedical Research, the National Emerging Infectious Disease Laboratory, and two parking garages. 670 ALBANY AT BOSTON MEDICAL CENTER BOSTON, MA BOSTON MEDICAL CENTER CAMPUS 670 Albany at Boston Medical Center at was completed in 2005 and is 100% occupied by Boston University and Boston Medical Center. The lab facility houses cutting edge research, classroom space for the medical campus, and a vivarium and hematology lab. The high quality tenancy, significant in-place infrastructure, and mission critical location for both tenants provide a secure yield with high likelihood of renewal. The Property is subject to a ground lease through February 2079 and its ground lessor is University Associates LP, the partners of which are affiliates of BU and BMC, the tenants in the building. Tenant Mix and Building Use A shared 300-seat 9,300 square foot auditorium, just off the lobby, is used for classroom and seminar space for Boston University. Other uses in the building include hematology, pathology, and infectious disease labs. The building also houses a pneumatic tube system in place linking BMC s lab directly to four buildings in its medical center.

14 2014 ACQUISITION DOWNTOWN BOSTON BIEWEND & TUPPER BUILDINGS BEACON ILL TE BOSTON COMMON TE BIEWEND BUILDING TE TUPPER BUILDING TUFTS MEDICAL CENTER / TUFTS UNIVERSITY CAMPUS TE BIEWEND & TUPPER BUILDINGS BOSTON, MA ACQUIRED 2014 Key Statistics Location: Boston, Massachusetts Buildings: 2 on campus Total Investment: $148 million GLA: 252 thousand square feet Occupancy: 100% Closed: June 2014 ealth System Affiliation: Tufts Medical Center Lease Terms Tenant: Tufts Medical Center Occupancy: 100% Blended Rate: $37 - $38/SF Lease Type: NNN Maturity: 2027 Annual Escalators: 3% Initial Capex: $6.0 - $7.0 mm Strategic Rationale TA s investment in the Tuft s Medical Center medical office buildings in 2014 was the beginning of a several partnerships with leading academic medical centers in downtown Boston. Following this acquisition, Boston became TA s largest single market, as measured by invested dollars. It also allowed TA to immediately expand its regional, on-the-ground presence in this attractive market. TA s fee-simple interest in the Tupper and Biewend Buildings total over 250 thousand square feet and are located on the Tufts Medical Center campus. The facilities are leased to investment grade Tufts Medical Center (BBB) under long term net leases with annual rent escalators. The buildings are located in the Theater and Chinatown districts of downtown Boston. This bustling area features above average economic and health insurance demographics and is home to significant new high-end developments, including recent residential and luxury hotels. The area also has excellent access to Route 93 and the Mass Pike, the major thoroughfares of the City of Boston. This unique location also offers walking distance to the rest of the city and numerous public transportation options, including two transit lines located within one-quarter mile and a transit station located across the street from the hospital s main entrance.

15 DOWNTOWN BOSTON BIEWEND & TUPPER BUILDINGS TE BIEWEND BUILDING BOSTON, MA ACQUIRED 2014 TE TUPPER BUILDING BOSTON, MA ACQUIRED 2014 The Biewend & Tupper Buildings The Biewend Building is a 154,500 square foot 14 story outpatient clinical building that is attached to the Tufts Medical Center. Despite being 100% leased to the hospital, it is home to a number of outpatient services including everything from general practitioners to orthopedics and optometry care. In addition, the ground floor also serves as an entrance to the famed Citi Wang Theater. The Tupper Building is a 97,500 square foot 14 story wet-laboratory building. The building is attached to the Tufts Dental School and houses the hospital s Molecular Cardiology Research Institute, a world leader in molecular cardiology and cardiovascular research. The MCRI is a major recipient of the grants that the medical center receives. In the first 2 years, TA expects to upgrade the lobby, elevators, external facade and VAC units in both properties. Biewend Building Tenant Mix The Biewend Building is home to a number of outpatient services including a community clinic, pulmonary care, sleep medicine, dermatology, and rheumatology, among others. New England Eye Center, an affiliate of the Tufts Medical Center, leases several floors of the property and the entire seventh floor is leased by an orthopedic and sports physical therapy facility. Tufts Medical Center - Community Clinic Wang Theatre Endocrine Clinic General Medical Associates Tufts Medical Center - Administration Rheumatology (Arthritis Center) Pulmonary, Critical Care & Sleep Medicine Francis Stearn Nutrition Center Orthopedic and Sports Physical Therapy (Independant) Adult Orthopedic Clinic Adult Division of Physical Medicine and Rehabilitation Dermatology New England Eye Center Neurology Tufts Medical Center - Research (Affiliate) Tufts Medical Center - Community Clinic Wang General Medical Associates Tufts Medical Center - Administration Rheumatology (Arthritis Center) Adult Orthopedic Clinic Orthop New E Adult Division of Physical Medicine and Rehabilitation Dermatology Tufts

16 BOSTON REAL ESTATE ACTIVITY Boston Medical Center Campus: Redesign and Expansion Project ARRISON AVE. PRESTON BUILDING The $270 million BMC redesign project started in 2014 and is estimated to yield at least $25 million per annum in savings while maintaining patient services at current levels but with a more rational and operationally efficient workflow. The redesign will create a state-of-the-art clinical workspace to solve BMC s most pressing care delivery needs, improve operational efficiency by consolidation of inpatient and surgical operations on a single site, and create sustainable design with a reduced carbon footprint. YAWKEY AMBULATORY CARE CENTER MASSACUSETTS AVE. DOWLING BUILDING 1 MENINO PAVILION 3 MOAKLEY BUILDING SACC 2 CONCORD ST. INSTRUCTIONAL BUILDING ALBANY ST. EVANS BUILDING FULLER NEWTON ST. EALT SERVICES GOLDMAN SCOOL OF DENTAL MEDICINE NEWTON PAVILION Major changes include a 70,000 square foot addition to Menino Pavilion and a 20,000 square foot addition to Moakley Cancer Center Building. Renovations will also take place in both the Menino Pavilion and Yawkey Building. Additionally, phase 1 of a new inpatient building will contain approximately 82,000 additional square feet and a second phase, proposed on the site of the Dowling Tower and directly adjacent to the first phase, will contain approximately 323,000 square feet. 4 Project ighlights: 1 2 ENERGY FACILITY POWER PLANT New Inpatient Building Phase 1: 82,000 SF Phase 2: 323,000 SF 20,000 SF Moakley Addition ALBANY STREET 70,000 SF Menino Pavilion Addition and New Patient Transport Bridge 38,500 SF BMC Energy Facility The Tufts Campus: Chinatown / Theatre District New Developments NEW DEVELOPMENTS CINATOWN / TEATRE DISTRICT 1. Ava Theatre District Apartments» 30-story, 398-unit apartments» Avalon Bay» $175 Million» Completed 3Q15 (estimated) 2. Radian Apartments» 26-story, 240-unit apartments» Forest City» $130 Million» Completed 2Q14 3. The Kensington» 29-story, 390-unit apartments» Kensington Development / National Development» $170 Million» Completed 3Q13 4. W Boston otel / Residences» 28-story, 235-room hotel / 123 condo units» Condo: Sawyer Enterprises otel: Pebble Brook» $239 Million» Completed 4Q09 TA Owned MOB New Development Washington Apartments (Archstone Boston Commons)» 28-story, 420-unit apartments» Archstone Boston Commons» $159 Million» Completed One Greenway» 21-story, 312-unit apartments» New Boston Fund» $150 Million» Completed 3Q15 (estimated)

17 BOSTON COMMUNITY STEWARD MEDICAL OFFICE BUILDINGS ST. ANNES MEDICAL OFFICE BUILDING BOSTON, MA ACQUIRED 2012 Key Statistics GLA: 358 thousand square feet 12 Medical Office Buildings 3 95 TA Property Management Total Investment $100 million Key Tenant: Tufts Medical Center (BBB); Steward ealth Care System (B) 100% On-Campus / Aligned 100% Occupied Closed: 2012 WORCESTER BOSTON 1A FALL RIVER BROCKTON Strategic Rationale TA entered the growing Boston market in April of 2012 prior to listing on the New York Stock Exchange in June of The original investment in Boston was 12 medical office buildings all aligned with Steward ealth Care System. Steward is a community-based care organization offering care to patients in all of Eastern Massachusetts. Steward was formed in 2010 with an investment from Cerberus Capital Management and has since invested $850 million to improve the quality of care, renovate facilities upgrade technology and enhance the patient experience. In most communities where it operates, Steward is one of the largest employers and taxpayers. Seventy percent of TA s Steward medical office buildings are on one of 10 Steward hospital campuses and the remaining thirty percent are affiliated medical office buildings off-campus but within the community Steward MOB 1 Steward 114 ospital 28

18 LEASE COMPARABLES LONGWOOD MEDICAL AREA Medical: Lab: $40 - $50 / SF NNN $80 - $100 / SF NNN» Medical Office Building A Large Physician Group $46/SF NNN» Lab A BioTech $95/SF NNN» Lab B ospital $82/SF NNN FOREST CITY MIT ASSETS AT UNIVERSITY PARK Life Science: $75 / SF NNN» 35, 40, 65/80 Landsdowne Street» 45/75, 88 Sidney Street» Jackson Building» Richards Building SOUT END MEDICAL CLUSTER Medical: $30 - $40 / SF NNN» Medical Office Building A National Physician Group $36/SF NNN» Medical Office Building A Private Practice $35/SF NNN SEAPORT INNOVATION DISTRICT Office/Lab: $60 - $70 / SF» Building A Large Pharmacy $60/SF NNN

19 SALES COMPARABLES LIFE SCIENCES BUILDINGS Massachusetts Institute of Technology s University Park Announced sale to Forest City from ealth Care REIT, Closed June 2015 Properties: Total SF: 7 mixed-use life science properties 1.2 million SF excluding parking facilities Price/SF: $987 Pricing: Projected 5% cap rate 50 STANIFORD STREET MG Medical Cluster Sold to RREEF America from Equity Residential in April 2015 Building Size: Key Tenant: Sale Price: 193,000 SF Massachusetts General ospital; arvard Medical School $123.3 million Price/SF: $639 Pricing: Mid-4% cap rate MASSACUSETTS EYE AND EAR Longwood Medical Area Sold to JLL from arrison Street in March 2015 Building Size: Key Tenant: Sale Price: 79,800 SF Massachusetts Eye and Ear $93.1 million Price/SF: $1,116

20 Fore additional information, please contact: ROBERT MILLIGAN Chief Financial Officer A Leading Owner and Operator of Medical Office Buildings EALTCARE TRUST OF AMERICA, INC. NYSE: TA North Scottsdale Road, Suite 320 Scottsdale, AZ p: f: ALL PROPERTIES SOWN ARE OWNED BY EALTCARE TRUST OF AMERICA, INC.