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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):  May 27, 2021

 

Healthcare Trust, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Maryland   001-39153   38-3888962
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (I.R.S. Employer
Identification No.)

 

650 Fifth Avenue, 30th Floor

New York, New York 10019

(Address, including zip code, of Principal Executive Offices)

 

Registrant’s telephone number, including area code: (212) 415-6500

 

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:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class:   Trading Symbol(s)   Name of each exchange on which registered:
7.375% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share   HTIA   The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 

 

 

 

 

 

 

Item 7.01. Regulation FD Disclosure.

 

Investor Presentation and Transcript

 

Healthcare Trust, Inc. (the “Company”) prepared an investor presentation containing certain portfolio information and financial highlights. Representatives of the Company intend to present some of or all of this presentation to current investors and their financial advisors at various conferences and meetings, including webinars. A copy of the investor presentation is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

On May 27, 2021, the Company hosted a conference call to discuss its financial and operating results for the quarter ended March 31, 2021. A transcript of the pre-recorded portion of the webcast is furnished as Exhibit 99.2 to this Current Report on Form 8-K. A copy of the presentation and replay of this webcast will be available on the Company’s website at www.healthcaretrustinc.com in the news section.

 

Neither the investor presentation nor transcript shall be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 7.01, as well as Exhibit 99.1 and Exhibit 99.2, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

 

Item 8.01. Other Events.

 

Disposition Activity

 

On May 27, 2021, the Company announced that, earlier in May 2021, the Company completed the dispositions of its development property in Jupiter, Florida and its skilled nursing facility in Wellington, Florida. The dispositions generated aggregate net proceeds of $88.0 million. These net proceeds were used to repay amounts outstanding under the Company’s revolving credit facility as required thereby.

 

Forward-Looking Statements

 

The statements in this Current Report on Form 8-K that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements, including those set forth in the section titled Risk Factors of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed on March 29, 2021, the Company’s Quarterly Report on Form 10-Q filed May 14, 2021 and all other filings filed with the Securities and Exchange Commission after that date, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by law.

 

Item 9.01. Financial Statements and Exhibits.

 

(d)           Exhibits

 

Exhibit No.   Description
99.1   Investor Presentation
99.2   Transcript
104   Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

  HEALTHCARE TRUST, INC.
     
Date: May 27, 2021 By: /s/ Jason F. Doyle
 

Jason F. Doyle

Chief Financial Officer, Secretary and Treasurer

 

 

 

Exhibit 99.1 

1 Healthcare Trust, Inc. First Quarter 2021 Investor Webcast Presentation

 

 

2 Q1’21 Company Overview (1) Based on total real estate investments, at cost of $2.6 billion, net of gross market lease intangible liabilities of $10.5 mi lli on as of March 31, 2021. (2) Percentages are based on NOI for the three months ended March 31, 2021. See appendix for Non - GAAP reconciliations. (3) See Definitions in the Appendix for a full description. (4) Refer to slide 7 for additional information. (5) Assuming no expirations or terminations and that a non - binding letter of intent will lead to a definitive lease and will commenc e on its contemplated terms, or at all, which is not assured. (6) Executed leases and a signed LOI in the Forward Leasing Pipeline commence at various times during 2021 (and, with respect to one lease for 1,000 SF, expire in Q4'21). The Forward Leasing Pipeline should not be considered an indication of future performance. HTI is a $2.6 billion (1) healthcare real estate portfolio focused on Medical Office Buildings (“MOB”) and Senior Housing Operating Properties (“SHOP”) High Quality Portfolio x High - quality portfolio containing 190 healthcare properties comprised of 54% MOB, 37% SHOP and 9% Triple Net Leased (“NNN”) (2) x The SHOP portfolio is actively managed by a dedicated senior housing management team that is focused on value enhancement initiatives such as increasing Occupancy (3) and select portfolio recycling x High portfolio Occupancy across the MOB and NNN portfolios of 92.2% as compared to 91.6% in Q1’20 x HTI’s portfolio is geographically diversified across 31 states with select state concentrations that management believes to have favorable demographic tailwinds Diligent Acquisition Program (4) x Total closed and pipeline acquisitions of $36 million at a weighted average Cap Rate (3) of 8.0% x Q2’21 acquisition pipeline includes six MOB properties to be acquired at a 8.0% weighted average Cap Rate for $30 million Resilient Performance x HTI continues to collect approximately 100% of the original Cash Rent (3) due across the MOB and NNN portfolios in the first quarter 2021, management expects this trend to continue x Year over year, HTI’s exposure to MOB and NNN assets increased from 58% to 63% (2) as HTI continues to acquire high - quality MOB assets that management believes to increase the dependability of the Company’s cash flows x Forward Leasing Pipeline (3)(5) of 19,000 SF that is expected to increase annualized straight - line rent by nearly $590,000 (6) and MOB and NNN portfolio Occupancy to 92.6% from 92.2% at quarter end (5) , if one non - binding letter of intent leads to a definitive lease and once rent commences over time for all signed leases Experienced Management Team x Proven track record with significant public REIT market experience x SHOP portfolio has a dedicated management team lead by John Rimbach along with his key operating personnel from WESTLiving x Nearly all of HTI’s residents in the Company’s SHOP portfolio have been vaccinated, which we believe mitigates the risk of future adverse COVID - 19 outbreaks

 

 

3 First Quarter MOB and NNN Cash Rent Collection HTI continues to collect approximately 100% of the original Cash Rent due across the MOB and NNN portfolios in first quarter 2021, management expects this trend to continue Note: Percentages are approximate. Collection data as of May 15, 2021. Collection data includes both Cash Rent paid in full a nd in part pursuant to an to an amendment to an existing lease agreement to defer for a certain portion of Cash Rent due or othe rwi se. Collection data excludes Cash Rent paid after May 15, 2021 that would apply to prior quarters. Total rent collected during the period include s b oth original Cash Rent due and payments made by tenants pursuant to rent deferral agreements. See definition of Cash Rent for fu rther details. This information may not be indicative of any future period. The impact of the COVID - 19 pandemic on our future results of operations and liquidity will depend on the overall length and severity of the COVID - 19 pandemic, which management is unable to predict. 1) Eliminating the impact of deferred rent paid, we collected approximately 100% of original Cash Rent due in the third quarter of 2020, approximately 100% of original Cash Rent due in the fourth quarter of 2020 and approximately 100% of original Cash Rent du e in the first quarter of 2021. 100% 100% 100% 98% 100% Q1'2021 Q4'2020 Q3'2020 Q2'2020 Q1'2020 100% Collected Quarterly Original Cash Rent Collection Rates (1) First Quarter 2021 Original Cash Rent Collection HTI collected approximately 100% of Q1’21 and 2020 original Cash Rent due

 

 

4 (1) Based on square footage as of March 31, 2021. Excludes SHOP and the Company’s development property in Jupiter, Florida that w as substantially completed in the fourth quarter of 2019. Although a portion of the development property has been leased as of March 31, 2021, the property will be separately shown and excluded from combined occupancy numbers until a gr eater portion of the property has been leased and HTI considers the property stabilized. Including SHOP and the development property, portfolio occupancy would have been 81.2% as of March 31, 2021. In the second quarter of 2021, HTI com pleted the sale of the development project. (2) Based on total real estate investments, at cost of $2.6 billion, net of gross market lease intangible liabilities of $10.5 mi lli on as of March 31, 2021. (3) See Definitions in the Appendix for a full description. (4) Based on square feet as of March 31, 2021. Portfolio Snapshot High - quality portfolio featuring an MOB and NNN portfolio that is 92% occupied (1) and a 4.3 million square foot SHOP portfolio operated by top U.S. Healthcare brands PROPERTIES Medical Office Buildings 118 _ Senior Housing – Operating (SHOP) 55 _ Post - Acute Care/Skilled Nursing – NNN 8 _ Hospitals – NNN 6 _ Land 2 _ Jupiter Property – Recently Developed 1 _ MOB Senior Housing – Operating Post Acute/ Skilled Nursing – NNN Hospitals – NNN Occupancy (3) 91.7% 72.7% 100.0% 90.7% Weighted Avg. Remaining Lease Term (3)(4) 4.8 Years N/A 6.6 Years 6.0 Years $2.6 Billion Invested (2) 190 Properties 9.3 Million Rentable Square Feet

 

 

5 54% 37% 9% MOB SHOP NNN FL 16% PA 15% IL 9% GA 9% IA 6% AZ 6% TX 5% CA 5% MI 4% WI 4% Other 21% Dynamic Portfolio Fundamentals HTI is focused on deploying capital into select, high - quality assets located throughout the United States Select Geographic Mix (1) Percentages are based on NOI for the three months ended March 31, 2021. See appendix for a reconciliation of aggregate NOI to ag gregate GAAP net income. (2) Based on square feet as of March 31, 2021. $34 million NOI (1) Diversified Geographic Asset Exposure High - Quality Portfolio Top 10 States (2) MOB NNN SHOP Development x Dynamic portfolio featuring a balance of high - quality and resilient MOB & NNN assets that feature embedded contractual rental increases and an actively managed SHOP portfolio x First quarter original Cash Rent collection of approximately 100% across the MOB and NNN portfolios x Geographically diversified portfolio across 31 states with select state concentrations that management believes to have favorable demographic headwinds Portfolio Highlights

 

 

6 x DaVita (NYSE: DVA) and Fresenius (NYSE: FMS) are industry leading publicly traded companies with a combined market cap of $37 billion (1) x UPMC is a leading health enterprise with over 90,000 employees and 700 clinical locations x The SHOP portfolio features an offering of core operating brands x HTI remains committed to developing strong partnerships with leading healthcare brands which we believe delivers benefits for patients and other stakeholders Strategic Partners HTI partners with top healthcare brands in well - established markets MOB SHOP (1) Market capitalization data as of May 14, 2021.

 

 

7 Year - to - date closed and pipeline acquisitions of $36 million at a 8.0% weighted average Cap Rate, including six MOB assets to be acquired at a 8.0% weighted average Cap Rate for $30 million (1) Represents the contract purchase price and excludes acquisition costs which are capitalized per GAAP. (2) See Definitions in the Appendix for a full description. (3) Weighted average remaining lease term is based on square feet as of the respective acquisition date for closed transactions. (4) Includes pipeline as of May 15, 2021. Definitive PSAs are subject to conditions and LOIs are non - binding. There can be no assura nce these pipeline acquisitions will be completed on their current terms, or at all. ($ in millions, square feet in thousands and lease term remaining in years) Diligent Acquisition Program 2021 Closed Transactions Property Type State Number of Properties Square Feet Purchase Price (1) Wgt. Avg. Cap Rate (2) Wgt. Avg. Lease Term Remaining (3) Closed Kingwood Executive Center MOB: Multi - Tenant TX 1 29 $6.6 3.1 Closed Q1’21 Total Closed 2021 1 29 $6.6 3.1 Q2’2021 Pipeline (4) Property Type State Number of Properties Square Feet Purchase Price Wgt. Avg. Cap Rate Lease Term Remaining Status OrthoOne Hilliard MOB: Multi - Tenant OH 1 25 $4.9 5.8 PSA Executed 1800 South Douglas MOB: Single - Tenant TX 1 5 $5.2 5.6 PSA Executed Upstate NY MOB Portfolio MOB: Multi - Tenant NY 4 120 $19.7 3.2 LOI Executed Total Pipeline 6 150 $29.8 8.0% 3.6 Total 2021 Closed Transactions + Q2’ 2021 Pipeline 7 179 $36.4 8.0% 3.5

 

 

8 Mortgage Debt ▪ $119 million, 21 property, CMBS Loan with KeyBank at a 4.6% fixed interest rate with maturity in 2028 ▪ $379 million mortgage loan with Capital One secured by 41 properties at a 3.7 % interest rate fixed by swap and maturity in 2026 ▪ The Company has six other mortgage loans with an aggregate balance of $ 53 million, secured by individual properties with a weighted - average interest rate of 3.6 % as of March 31 , 2021 Credit Facilities ▪ Fannie Mae Master Credit Facilities : Made up of two facilities arranged by KeyBank and Capital One. The combined facility is secured by mortgages on 21 seniors housing properties ▪ Revolving Credit Facility and Term Loan : The credit facility and term loan mature in 2024 with exercise of the Company’s extension option and currently have total commitments of $630 million as of March 31, 2021 Debt Capitalization (1) ($mm) Mortgage Notes Payable $550 Fannie Mae Master Revolving Credit Facilities $355 Total Secured Debt $905 Credit Facility – Revolving Credit Facility and Term Loan (2) $324 Total Unsecured Debt (2) $324 Total Debt $1,229 Weighted Average Interest Rate (3) 3.6% Key Capitalization Metrics ($mm) Net Debt (1) (4) $1,155 Net Leverage (4) 41.2% Balanced Capital Structure In the second quarter, HTI completed a $57 million Series A Preferred Stock follow - on offering as HTI continues to actively manage its capital structure to support sustained financial flexibility throughout the COVID - 19 pandemic Note: Metrics as of and for the three months ended March 31, 2021. As of March 31, 2021, HTI had $ 74 .1 million of cash and equivalents and the current availability under the revolving credit facility was $42.8 million. The Company is subject to a covenant requiring it to maintain a combination of cash, cash equivalents and availability for future borrowings under the revolving c red it facility totaling at least $50.0 million. (1) Excludes the effect of deferred financing costs, net and mortgage premiums/discounts, net. (2) Does not give effect to the use of the net proceeds from the $57 million Series A Preferred Stock offering and $88 in net proceeds from dispositions in May 2021 to repay amounts outstanding under HTI’s revolving credit facility as required thereby. The equity interests and related rights in our wholly owned subsidiaries that directly own or lease the eligible unencumbered rea l e state assets comprising the borrowing base of HTI’s credit facility are pledged for the benefit of the lenders thereunder. Th ese real estate assets are not available to satisfy other debts and obligations, or to serve as collateral for any new indebtedness, u nle ss the existing indebtedness secured by these properties is repaid or otherwise refinanced. (3) Weighted average interest rate based on balance outstanding as of March 31, 2021. (4) See Definitions in the Appendix for a full description. Conservative Leverage Profile In the second quarter, HTI completed a $57 million Series A Preferred Stock follow - on offering that provided attractive capital and financial flexibility to HTI

 

 

9 Resilient Performance HTI remains focused on collecting all of the original Cash Rent due across the MOB and NNN portfolios while increasing HTI’s exposure to MOB and NNN assets MOB and NNN Occupancy MOB and NNN Exposure (2) Original Cash Rent Collection (3) x Year over year, MOB and NNN Occupancy increased from 91.6% to 92.2% as asset management proactively executed on the Company’s leasing initiatives ▪ HTI has a forward Leasing Pipeline of 19,000 SF that is expected to increase MOB and NNN Occupancy to 92.6% (1) , if one non - binding letter of intent leads to a definitive lease and once rent commences over time for all signed leases x Year over year, HTI increased its exposure to MOB and NNN assets by opportunistically acquiring high - quality properties and increasing Occupancy x HTI collected approximately 100% of original Cash Rent due across the MOB and NNN portfolios in Q1’21 Operating Highlights (1) Assuming no expirations or terminations and that a non - binding letter of intent will lead to a definitive lease and will commenc e on its contemplated terms, or at all, which is not assured. Leases and potential leases in the Forward Leasing Pipeline commence at various times during 2021 (and, with respect to one lease for 1,000 SF, expire in Q4'21). The Forward Leasing Pipeline should not be consid ere d an indication of future performance. (2) Percentages are based on NOI for the three months ended March 31, 2021 and for the three months ended March 31, 2020. See app end ix for Non - GAAP reconciliations. (3) Refer to slide 3 for additional information. 91.6% 92.2% Q1 2020 Q1 2021 57.9% 63.1% Q1 2020 Q1 2021 100% 100% Q1 2020 Q1 2021

 

 

10 Company Highlights HTI remains focused on collecting approximately 100% of the original Cash Rent due across the MOB and NNN portfolios while continuing to acquire high - quality MOB and SHOP properties and maintaining moderate leverage x HTI Received approximately 100% of first quarter 2021 original Cash Rent due from the Company’s MOB and NNN portfolios (1) x High - Quality Portfolio of 190 healthcare properties comprised of 54% MOB, 37% SHOP and 9% NNN properties (2) x Diligent Acquisition Program (3) of over $36 million closed and pipeline acquisitions at a 8.0% weighted average Cap Rate, including six properties to be acquired at a 8.0% weighted average Cap Rate for $29.8 million as HTI continues to seek opportunistic accretive acquisitions x Conservative Balance Sheet with Net Leverage of 41.2% x Resilient Performance with year over year increases in MOB and NNN portfolio exposure (2) and Occupancy. HTI also has a forward Leasing Pipeline of 19,000 SF that is expected to increase MOB and NNN Occupancy to 92.6% (4) , if one non - binding letter of intent leads to a definitive lease and once rent commences over time for all signed leases x Experienced Management Team with a proven track record and significant public REIT experience (1) See slide 3 for further details. (2) Percentages based on NOI for the three months ended March 31, 2021. See appendix for Non - GAAP reconciliations. (3) See slide 7 for further details. Weighted average Cap Rate excludes SHOP properties. (4) Assuming no expirations or terminations and that advanced discussions with potential tenants or non - binding letter of intent wil l lead to a definitive lease that will commence on its contemplated terms, or at all, which is not assured. Leases and potent ial leases in the Forward Leasing Pipeline commence at various times during 2021 (and, with respect to one lease for 1,000 SF, expire in Q4 '21 ). The Forward Leasing Pipeline should not be considered an indication of future performance.

 

 

11 Experienced Leadership Team Jason Doyle Chief Financial Officer, Secretary, and Treasurer Mr. Doyle currently serves as the Chief Financial Officer, Treasurer and Secretary for HTI and also as Chief Financial Officer for American Finance Trust, Inc. (NASDAQ: AFIN). Mr. Doyle is a certified public accountant in Rhode Island, holds a B.S. from the University of Rhode Island and an M.B.A. from Babson College. Leslie D. Michelson Non - Executive Chairman, Audit Committee Chair Mr. Michelson has served as the chairman of Private Health Management, a retainer - based primary care medical practice management company from April 2007 until February 2020, and executive chairman and a director since March 2020. Mr. Michelson served as Vice Chairman and Chief Executive Officer of the Prostate Cancer Foundation, the world’s largest private source of prostate cancer research funding, from April 2002 until December 2006 and served on its board of directors from January 2002 until April 2013. David Ruggiero Vice President, Acquisitions Mr. Ruggiero currently serves as Vice President at the Company’s advisor with a primary focus on acquisitions. Mr. Ruggiero has over 20 years of commercial real estate experience and has advised on over $3 billion in healthcare real estate dispositions, acquisitions and financings. He earned an MS in Finance from Kellstadt Graduate School of Business at DePaul University and a BA from DePaul University. Trent Taylor Vice President, Asset Management Mr. Taylor currently serves as Vice President at the Company’s advisor with a primary focus on asset management and leasing. Mr. Taylor has over 12 years of commercial real estate and development experience. He earned an MS in Real Estate from New York University and BA in Accounting & Finance from the University of Central Florida. Michael Weil Chief Executive Officer Mr. Weil was named Healthcare Trust Inc.’s chief executive officer on August 23, 2018, which went into effect on September 12, 2018. He is a founding partner of AR Global, and has served as a leading executive and board member on several publicly - traded and non - traded real estate companies. Additionally, he previously served as the Senior VP of sales and leasing for American Financial Realty Trust. Mr. Weil also served as president of the Board of Directors of the Real Estate Investment Securities Association (n/k/a ADISA). John Rimbach President of Healthcare Facilities Mr. Rimbach brings a strong expertise in seniors housing management which he established over a 30 - year career. Prior to joining the Company’s advisor, Mr. Rimbach served as President/CEO and Founder of WESTLiving , LLC, where he provided overall leadership and strategic direction for this large seniors housing portfolio. Prior to that, Mr. Rimbach served as COO of AF Evans Company Inc. from 1999 to 2008, and was the Development Director of NCB Development Corporation from 1993 to 1999.

 

 

12 Dedicated SHOP Team Kimberly Holmes: VP – Operational Analytics ▪ 25 year career in senior housing and hospitality ▪ Her work on financial analysis, planning and benchmarking will translate into operational plans and action items for the portfolio Susan K. Rice, RN: VP – Clinical Operations ▪ 30 year career in the healthcare industry ▪ Extensive knowledge in clinical areas and processes to monitor and validate care outcomes, quality and compliance Patrick Collins: Chief Operating Officer ▪ Patrick’s responsibilities are to drive operational performance of HTI's operator/manager partners ▪ His 26 year career touches upon all aspects of operating a senior housing community John Rimbach: President of Healthcare Facilities ▪ Former President, CEO & Founder of WESTLiving ▪ 30 year career in the financing, development, acquisition, ownership and operation of senior housing portfolios Angie Ehlers: VP – Sales & Marketing ▪ Over her 26 year career, Angie has directed sales and marketing efforts at many senior level positions ▪ Her experience allows her to provide unique insight into markets and product positioning for the HTI SHOP portfolio John Rimbach joined the management team of HTI’s advisor along with his key operating personnel from WESTLiving . This experienced group plays an essential role in managing the Company’s significant operating portfolio

 

 

13 Board of Directors Lee M. Elman Independent Director Independent director of the Company since August 2015 Founder & President of Elman Investors Inc., an international real - estate investment banking firm 40+ years of real estate investment experience in the US and abroad Mr. Elman holds a J.D. from Yale Law School and a B.A. from Princeton University’s Woodrow Wilson School of Public and Intern ati onal Affairs Leslie Michelson Non - Executive Chairman, Audit Committee Chair Chairman of Private Health Management from April 2007 until February 2020, and executive chairman and a director since March 202 0 Vice Chairman and Chief Executive Officer of the Prostate Cancer Foundation, from April 2002 until December 2006 and served o n i ts board of directors from January 2002 until April 2013 B.J. Penn Independent Director Mr. Penn serves as president of Penn Construction Group, Inc., and as president and chief executive officer of Genesis IV, LL C Mr. Penn is the chairman of the board of directors of Spectra Systems Corporation, is a trustee emeritus at the George Washin gto n University and serves on the boards of the National Trust for the Humanities and the Naval Historic Foundation. Edward Rendell Independent Director Independent director of the Company since December 2015 45th Governor of the Commonwealth of Pennsylvania from 2003 through 2011 Mayor of Philadelphia from 1992 through 2000 Strong Corporate Governance Elizabeth K. Tuppeny Independent Director, Nominating and Corporate Governance Committee Chair Chief Executive Officer and founder of Domus, Inc., since 1993 30 years of experience in the branding and advertising industries, with a focus on Fortune 50 companies Ms. Tuppeny also founded EKT Development, LLC to pursue entertainment projects in publishing, feature film and education vide o g ames Majority Independent Board of Directors, including an audit committee and nominating and corporate governance committee comprised solely of independent directors Michael Weil Director Founding partner of AR Global Previously served as Senior VP of sales and leasing for American Financial Realty Trust Served as president of the Board of Directors of the Real Estate Investment Securities Association (n/k/a ADISA)

 

 

14 Legal Notice

 

 

15 Disclaimer References in this presentation to the “Company,” “we,” “us” and “our” refer to Healthcare Trust, Inc. (“ HTI”) and its consolidated subsidiaries. The statements in this presentation that are not historical facts may be forward - looking statements. These forward - looking state ments involve risks and uncertainties that could cause actual results or events to be materially different. Forward - looking statements may include, but are not limited to, statements regarding stockholder liquidity and investment value and returns. The words “anticipates,” “believes,” “expects,” “estimates, ” “ projects,” “plans,” “intends,” “may,” “will,” “would” and similar expressions are intended to identify forward - looking statements, although not all forward - loo king statements contain these identifying words. Actual results may differ materially from those contemplated by such forward - looking statements, including th ose set forth in the section titled Risk Factors of HTI’s Annual Report on Form 10 - K for the year ended December 31, 2020 filed on March 30 , 2021, the Company's Quarterly Report on Form 10 - Q filed on May 14, 2021 and all other filings with the SEC after that date, as such risks, uncertainties and other important factors may be updated from time to time in HTI’s subsequent reports. Please see pages 16 and 17 for further information. Further, forward - looking stat ements speak only as of the date they are made, and HTI undertakes no obligation to update or revise any forward - looking statement to reflect changed assump tions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. This presentation includes estimated projections of future operating results. These projections were not prepared in accordan ce with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of financial projections. This information is not fact and should not be relied upon as being necessarily indicative of future results; the projections were pr epared in good faith by management and are based on numerous assumptions that may prove to be wrong. Important factors that may affect actual results an d cause the projections to not be achieved include, but are not limited to, risks and uncertainties relating to the company and other factors described in the section titled Risk Factors of HTI’s Annual Report on Form 10 - K for the year ended December 31, 2020 filed on March 30 , 2021, the Company's Quarterly Report on Form 10 - Q filed on May 14, 2021 and all other filings with the SEC after that date. The projections also reflect assumptions as to certain business decisions th at are subject to change. As a result, actual results may differ materially from those contained in the estimates. Accordingly, there can be no as surance that the estimates will be realized. This presentation includes certain non - GAAP financial measures, including net operating income (“NOI”). NOI is a non - GAAP measur es of our financial performance and should not be considered as alternatives to net income as a measure of financial performance, or any other pe rfo rmance measure derived in accordance with GAAP and they should not be construed as an inference that our future results will be unaffected by unusual o r n on - recurring items. The reconciliations of net income to NOI for the applicable period are set forth on page 20 to this presentation.

 

 

16 Forward Looking Statements Certain statements made in this presentation are “forward - looking statements” (as defined in Section 21E of the Exchange Act), w hich reflect the expectations of the Company regarding future events. The forward - looking statements involve a number of risks, uncertainties and other factor s that could cause actual results to differ materially from those contained in the forward - looking statements. Such forward - looking statements include, bu t are not limited to, market and other expectations, objectives, and intentions, as well as any other statements that are not historical facts. Our potential risks and uncertainties are presented in the section titled Risk in the section titled “Item 1A - Risk Factors” disc losed in our Annual Report on Form 10 - K for the year ended December 31, 2020 filed with the SEC on March 30, 2021, the Company's Quarterly Report on Form 10 - Q filed on May 14, 2021 as well as all other filings with the SEC after that date. We disclaim any obligation to update and revise statements contain ed in these materials to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. The following are some of the risks and uncertainties relating to us, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward - looking statements: • Our operating results are affected by economic and regulatory changes that have an adverse impact on the real estate market i n g eneral. • Our property portfolio has a high concentration of properties located in Pennsylvania and Florida. Our properties may be adve rse ly affected by economic cycles and risks inherent to those states. • Our Credit Facility restricts us from paying cash distributions on or repurchasing our common stock until we make an election to do so and are able to meet certain liquidity and leverage conditions, which is not assured,, and there can be no assurance we will be able to resum e p aying distributions on our common stock, and at what rate, or continue paying dividends on our 7.375% Series A Cumulative Redeemable Perpetual Preferred St ock at the current rate. • Our Credit Facility restricts our ability to use cash that would otherwise be available to us, and there can be no assurance our available liquidity will be sufficient to meet our capital needs. • We are subject to risks associated with a pandemic, epidemic or outbreak of a contagious disease, such as the ongoing global COV ID - 19 pandemic, including negative impacts on our tenants and operators and their respective businesses. • In the Company's SHOP portfolio during March 2020, due to the COVID - 19 pandemic, occupancy trended lower in the second half of t he month and operating costs began to rise materially, including for services, labor and personal protective equipment and other supplies. At our SHOP facilities, we bear these cost increases. These trends accelerated during the second, third and fourth quarters of 2020 and into the beginni ng of the first quarter of 2021 as the surge of new COVID - 19 cases that started in late 2020 crested, and have continued through the end of the first quarter of 2021 and into the second quarter of 2021 and may continue to impact us in the future and have a material adverse effect on our revenues and income in the other quarters thereafter.

 

 

17 Forward Looking Statements (Continued) • No public market currently exists, or may ever exist, for shares of our common stock and our shares are, and may continue to be, illiquid. • In owning properties we may experience, among other things, unforeseen costs associated with complying with laws and regulati ons and other costs, potential difficulties selling properties and potential damages or losses resulting from climate change. • We focus on acquiring and owning a diversified portfolio of healthcare - related assets located in the United States and are subje ct to risks inherent in concentrating investments in the healthcare industry. • The healthcare industry is heavily regulated, and new laws or regulations, changes to existing laws or regulations, loss of l ice nsure or failure to obtain licensure could result in the inability of tenants to make lease payments to us. • We depend on tenants for our rental revenue and, accordingly, our rental revenue is dependent upon the success and economic v iab ility of our tenants. If a tenant or lease guarantor declares bankruptcy or becomes insolvent, we may be unable to collect balances due under relevant leases. • We assume additional operational risks and are subject to additional regulation and liability because we depend on eligible i nde pendent contractors to manage some of our facilities. • We have substantial indebtedness and may be unable to repay, refinance, restructure or extend our indebtedness as it becomes due . Increases in interest rates could increase the amount of our debt payments. We may incur additional indebtedness in the future. • We depend on the Advisor and Property Manager to provide us with executive officers, key personnel and all services required for us to conduct our operations. • All of our executive officers face conflicts of interest, such as conflicts created by the terms of our agreements with the A dvi sor and compensation payable thereunder, conflicts allocating investment opportunities to us, and conflicts in allocating their time and attention to our mat ters. Conflicts that arise may not be resolved in our favor and could result in actions that are adverse to us. • We have long - term agreements with our Advisor and its affiliates that may be terminated only in limited circumstances and may re quire us to pay a termination fee in some cases. • Estimated Per - Share NAV may not accurately reflect the value of our assets and may not represent what a stockholder may receive on a sale of the shares, what they may receive upon a liquidation of our assets and distribution of the net proceeds or what a third party may pay to acquire us . • The stockholder rights plan adopted by our board of directors, our classified board and other aspects of our corporate struct ure and Maryland law may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders. • Restrictions on share ownership contained in our charter may inhibit market activity in shares of our stock and restrict our bus iness combination opportunities. • We may fail to continue to qualify as a REIT.

 

 

18 Appendix

 

 

19 Definitions Cap Rate : Capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight - lined rental income that the property will generate under its existing lease during its first year of ownership . Capitalization rate is calculated by dividing the annualized straight - lined rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property . The weighted average capitalization rate is based upon square feet . Cash Rent : Represents total of all contractual rents on a cash basis due from tenants as stipulated in the originally executed lease agreements at inception or any lease amendments thereafter prior to a rent deferral agreement (see slide 3 for further information) . “Original Cash Rent” refers to contractual rents on a cash basis due from tenants as stipulated in their originally executed lease agreement at inception or as amended, prior to any rent deferral agreement . We calculate “Original Cash Rent collections” by comparing the total amount of rent collected during the period to the original Cash Rent due . Total rent collected during the period includes both original Cash Rent due and payments made by tenants pursuant to rent deferral agreements . Eliminating the impact of deferred rent paid, we collected approximately 100 % of original Cash Rent due in the first quarter of 2021 . Leasing Pipeline : Includes ( i ) all leases (including expansions of existing leases) fully executed by both parties as of May 20 , 2021 , but after March 31 , 2021 and (ii) all leases (including expansions of existing leases) under negotiation with an executed LOI by both parties as of May 20 , 2021 . This represents executed new leases (including expansions of existing leases) where rent commences over time during 2021 totaling approximately 15 , 200 square feet (includes one lease that expires in December 2021 for 1 , 000 square feet) and an LOI totaling 3 , 800 square feet . No lease terminations or expirations occurred during this period . There can be no assurance that the LOI will lead to a definitive lease that will commence on its current terms, or at all . Leasing pipeline should not be considered an indication of future performance . Lease Term Remaining : Current portfolio calculated from March 31 , 2021 . Weighted based on square feet . Net Debt : Total gross debt of $ 1 . 2 billion per slide 8 less cash and cash equivalents of $ 74 . 1 million as of March 31 , 2021 . NOI : Defined as a non - GAAP financial measure used by us to evaluate the operating performance of our real estate . NOI is equal to revenue from tenants, less property operating and maintenance . NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss) . Net Leverage : Represents “Net Debt” as defined above as debt less cash and cash equivalents divided by total assets of $ 2 . 3 billion (which includes cash and cash equivalents) plus accumulated depreciation and amortization of $ 529 . 7 million as of March 31 , 2021 , shown as a percentage . Occupancy : For NNN and MOB properties, occupancy represents percentage of square footage of which the tenant has taken possession of divided by the respective total rentable square feet as of the date or period end indicated . For SHOP, occupancy represents total units occupied divided by total units available as of the date or period end indicated .

 

 

20 Reconciliation of Non - GAAP Metrics: NOI Three Months Ended March 31, 2021 (In thousands) Medical Office Buildings Triple - Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenue from tenants $ 26,390 $ 3,949 $ 53,097 $ 83,436 Property operating and maintenance (7,830) (1,014) (40,511) (49,355) NOI $ 18,560 $ 2,935 $ 12,586 34,081 Impairment charges (878) Operating fees to related parties (5,883) Acquisition and transaction related (132) General and administrative (6,052) Depreciation and amortization (20,102) Interest expense (12,322) Interest and other income 32 Gain on sale of real estate investments (172) (Loss) gain on non - designated derivatives 14 Income tax benefit (expense) (48) Net loss attributable to non - controlling interests (46) Allocation for preferred stock (742) Net loss attributable to stockholders $ (12,230) Three Months Ended March 31, 2020 (In thousands) Medical Office Buildings Triple - Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenue from tenants $ 26,370 $ 4,085 $ 69,780 $ 100,235 Property operating and maintenance (7,610) (535) (53,578) (61,723) NOI $ 18,760 $ 3,550 $ 16,202 38,512 Impairment charges (18,038) Operating fees to related parties (6,049) Acquisition and transaction related (327) General and administrative (6,730) Depreciation and amortization (20,195) Interest expense (13,257) Interest and other income 5 Gain on sale of real estate investments 2,306 (Loss) gain on non - designated derivatives 16 Income tax expense (benefit) (332) Net income attributable to non - controlling interests 87 Preferred stock dividends (742) Net loss attributable to stockholders $ (24,744)

 

 

21 HealthcareTrustInc.com ▪ For account information, including balances and the status of submitted paperwork, please call us at (866) 902 - 0063 ▪ Financial Advisors may view client accounts at www.computershare.com/advisorportal ▪ Shareholders may access their accounts at www.computershare.com/hti

 

 

Exhibit 99.2

 

Healthcare Trust, Inc. (NASDAQ:HTIA) Q1 2021 Earnings Webcast

 

Opening – Louisa Quarto

 

Welcome to the first quarter 2021 Healthcare Trust, Inc., or HTI, webcast. All participants will be in listen-only mode.

 

Please note, this event is being recorded. Also note that certain statements and assumptions in this webcast presentation which are not historical facts will be forward-looking and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

 

These forward-looking statements are subject to certain assumptions and risk factors which could cause the Company’s actual results to differ materially from the forward-looking statements. We refer all of you to our SEC filings including the Form 10-K for the year ended December 31, 2020 filed on March 30, 2021 and all other filings with the SEC after that date for a more detailed discussion of the risk factors that could cause these differences.

 

During today’s call, we will discuss non-GAAP financial measures of HTI. These measures should not be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP. The Company has provided a reconciliation of these measures to the most directly comparable GAAP measure as part of the first quarter 2021 investor presentation for HTI and part of the Quarterly Report on Form 10-Q for HTI for the quarter ended March 31, 2021 (both available on HTI’s website at www.healthcaretrustinc.com).

 

You may submit questions during today’s webcast by typing them in the box in the lower right of the screen and a member of our investor relations group will follow-up to answer questions directly after the presentation. Also, please note that later today a copy of the presentation and replay of this webcast will be available on the company’s website.

 

I would now like to turn the call over to Michael Weil, Chief Executive Officer. Please go ahead Mike.

 

Opening Script

 

HTI Webinar Script

 

Slide 2: Strategic Update – (Mike Weil)

 

Thanks Louisa, and thank you all for joining us today. After more than a year of managing through the COVID-19 pandemic we are beginning to see light at the end of the tunnel. Domestic cases are on the decline, vaccines have become widely available to expanded groups of citizens, and the effectiveness of the vaccines have led to CDC guidance that encourages additional steps towards normalcy. Throughout the duration of the crisis, HTI’s medical office building portfolio has been a stronghold where we have added assets and collected approximately 100% of the original cash rent due over the last three quarters. We believe that the good news about vaccinations will eventually permit our seniors housing assets to begin building occupancy back up to the levels that we reported prior to the beginning of COVID.

 

HTI’s $2.6 billion portfolio is primarily focused on two segments that we believe have strong demographic tailwinds that will support long-term demand – Medical Office Buildings (or “MOB”) and Seniors Housing Operating Properties (or “SHOP”). At the end of the quarter, these two segments represented over 90% of HTI’s net operating income, with the balance coming from triple net leased healthcare facilities. We have elected to focus on these segments because we believe that medical office buildings will continue to generate stable cash flow and seniors housing properties will see sustained demand as the US population continues to age.

 

During the first quarter we continued to focus on rent collection, proactive lease-up within the MOB portfolio and on the care and health of our residents in the SHOP portfolio. Rent collection for the first quarter continued to meet our expectations as we collected approximately 100% of the original Cash Rent due from our MOB and triple-net tenants. We believe our rigorous underwriting and proactive management have been important factors in our ongoing rent collection success.

 

Turning to the portfolio and balance sheet enhancements, we have a combined closed and forward acquisitions pipeline of over $36 million, with an 8.0% weighted average cap rate. In addition to our acquisitions pipeline, we also have a forward leasing pipeline for over 23,000 square feet, comprised of five new executed leases, one licensing agreement, and one non-binding letter of intent. Once all of these agreements commence, we expect MOB and NNN portfolio occupancy to increase to 92.6% and that we will add nearly $590,000 of new annual rent once rent begins over the remainder of 2021.

 

 

 

 

Slide 3: First Quarter Cash Rent Collection

 

Our proactive outreach during the initial months of the COVID-19 pandemic encouraged an open dialogue with our tenants that helped us understand their challenges and develop mutually agreeable solutions. These efforts have been a major contributor to our collection of approximately 100% of the original Cash Rent due in both our MOB and Triple Net segments for the prior three quarters as well as nearly 100% for the full year 2020. We expect this trend to continue into 2021.

 

As a reminder from previous quarters, cash rental payments in the SHOP portfolio is primarily paid for by the residents through private payer insurance or directly, and to a lesser extent, by government reimbursement programs such as Medicaid and Medicare. These cash rental payments are subject to timing differences; therefore we have not provided detail on the collection amounts for our SHOP segment.

 

Slide 4: Portfolio Snapshot

 

As of March 31, 2021, HTI owned 190 properties, totaling approximately 9.3 million rentable square feet in 31 states. The portfolio consisted of 118 medical office buildings, 55 seniors housing operating properties, two land parcels, 14 NNN properties consisting of post-acute and skilled nursing facilities and hospitals, and one recently completed development property in Jupiter, Florida.

 

At quarter end, our medical office building portfolio was 91.7% occupied with a weighted average remaining lease term of 4.8 years, an increase from 91.6% in the first quarter of 2020. The SHOP portfolio was 72.7% occupied, a level that is a direct result of COVID-19 and consistent with industry-wide trends where occupancy has declined for four consecutive quarters. As mentioned, we have reason to believe that this trend could begin to reverse in the coming quarters as we continue our successful vaccination efforts and drive residency initiatives. We began to see admission interest return towards the end of first quarter, as evidenced by 47 newly occupied units in March. With relaxed guidance from the CDC and many states reopening their economies, we remain hopeful that SHOP occupancy will rebound in the coming months. In anticipation of this rebound, we deployed over $3.4 million in capital expenditures in the first quarter to enhance and improve the physical quality of our SHOP assets. We’ve also deployed an online digital lead strategy and website enhancements to be visible, attractive, and competitive as seniors and their families begin to consider housing options post-pandemic.

 

The triple-net leased post-acute/skilled nursing properties were 100% occupied with a weighted average remaining lease term of 6.6 years. We also own six hospitals which were 90.7% leased and had a weighted average remaining lease term of 6.0 years as of quarter end.

 

Slide 5: Dynamic Portfolio Fundamentals

 

We are very pleased with HTI’s portfolio mix which features a significant focus on MOB and SHOP assets. As we grow the portfolio and deploy strategic leasing initiatives, we plan to continue emphasizing these property types within our acquisition and asset management strategy.

 

We have elected to focus on Medical Office Buildings due to the growing demand from tenants as the ever-evolving healthcare system in the US encourages medical professionals to consolidate practices and locate near hospital campuses. We believe that our steady occupancy rates and revenue year-over-year, as well as our success collecting rent in this segment of our portfolio, are evidence of this in practice.

 

Our focus on SHOP assets is supported by our belief in long-term demographic tailwinds, which we believe will result in pent-up demand for seniors housing. As members of the Baby Boomer generation begin to approach their 80’s, we believe that demand for high-quality, service-focused, and strategically located seniors housing facilities will continue to increase. Our SHOPs are also primarily “private pay” and as a result are not as dependent on the policies of governments or insurance providers for rent payments. Finally, our dedicated SHOP team collaborates with our aligned operators to manage our assets in an accretive way.

 

 

 

 

We’ve worked diligently to construct a high-quality portfolio that is well diversified by geography and business segment. Our complete US portfolio is dispersed across 31 states with only two states representing more than 10% of the total portfolio by square feet. 91% of the NOI comes from the MOB and SHOP segments, with the remaining 9% coming from our triple-net leased healthcare facilities segment.

 

Slide 6: Strategic Partners

 

One of the most important aspects of a well-run healthcare real estate portfolio is the quality of the underlying tenants who occupy and operate the properties. Procuring well-respected brands and developing strong partnerships with them is a core focus of our asset management strategy in order to deliver superior long-term benefits for not only HTI, but for the residents and practitioners who live and work at our properties.

 

This slide lists some of the leading brands we partner with. In HTI’s MOB portfolio, we have tenants such as The University of Pittsburgh Medical Center, DaVita, Sentara and Ascension. HTI’s SHOP operators include Frontier management, Jaybird Senior Living, Senior Lifestyle Corporation and Cedarhurst. As we have seen since the onset of the COVID-19 pandemic, the direct relationships we have developed with our tenants over time have become more valuable than ever as we work together to find solutions to unprecedented challenges across the country.

 

As we grow our portfolio, we continue to look for high-quality tenants within HTI’s MOB portfolio and to further develop a roster of strong SHOP operators who we trust to provide the best care for residents at our facilities.

 

Slide 7: Diligent Acquisitions

 

We are starting 2021 with renewed acquisitions activity and have seven MOB assets either closed or in the pipeline for over $36 million at an 8% weighted-average cap rate.

 

In the first quarter we closed on one MOB acquisition for $6.6 million and we have a forward pipeline, as of May 15th, of $29.8 million comprised of six MOB properties at a weighted average 8.0% cap rate. We believe we have a strong cash and liquidity position to continue diligently seeking accretive acquisitions at opportunistic cap rates. Due to the ongoing dislocation in the markets caused by COVID-19, we believe there may be opportunities to complete these types of acquisitions while continuing strong operational performance.

 

In addition to building an acquisition pipeline, subsequent to quarter end we closed on the sale of the development property in Jupiter, Florida and a skilled nursing facility in Wellington, Florida. Additional details about these dispositions will be included in our second quarter financials.

 

Before turning it over, I’d like to welcome Jason Doyle to our earnings calls. As we mentioned last quarter, Jason was appointed CFO for HTI in February and officially became our Chief Financial Officer last month. We're excited to have Jason on board and know that he has already stepped into his new role without missing a beat. Jason, will you please take us through the financial results?

 

Slide 8: Conservative Leverage Profile– (Jason Doyle)

 

Thank you, Mike, and I’m really happy to be working with the HTI team.

 

This slide provides a snapshot of HTI’s capital structure at the end of the first quarter. Net leverage remained modest at 41.2% with net debt of approximately $1.2 billion, gross asset value of $2.6 billion and a weighted average interest rate of 3.6%.

 

As of March 31, 2021, the Company had a total of $905 million of secured debt and that’s comprised of $550 million in mortgage notes payable and $355 million of Fannie Mae Master Revolving Credit Facilities. At the end of the first quarter, our unsecured corporate-level credit facility had an outstanding balance of $324 million, inclusive of the term loan component of $150 million. We continue to seek to improve the Company’s capital structure by extending our debt maturity profile, locking in long-term attractive financing rates and diversifying our financing allocation.

 

As discussed in previous quarters, in August of 2020, we entered into an amendment to our credit facility with KeyBank National Association and our banking partners in the credit facility. The amendment revised specific provisions in the credit facility, including restrictions on the payment of distributions. As a result of the amendment, our board determined that distributions will be paid on a quarterly basis in arrears in shares of HTI’s common stock, valued at HTI’s estimated per share net asset value in effect on the applicable date, based on a single record date to be declared each quarter. The number of shares issued in connection with any stock dividend is based on HTI’s prior cash distribution rate of $0.85 per share per year, divided by our estimated per share net asset value, which we most recently announced on April 2, 2021. We will not adjust the estimated per share NAV for the effect of future stock dividends. While we continue to be confident in the performance of the portfolio, we believe the change in our distribution policy maintains liquidity and preserves financial flexibility in light of the uncertainty resulting from temporary disruptions caused by the COVID-19 pandemic. Under the amendment, we may be permitted to pay cash distributions beginning later this year as soon as we are able to meet certain liquidity and leverage conditions, although there is no assurance we will do so.

 

 

 

 

Slide 9 Enhanced Performance

 

HTI remains committed to driving portfolio and earnings growth through active portfolio management, accretive acquisitions, robust leasing activity and capital structure improvements. Year-over-year, we have increased MOB and NNN occupancy to 92.2% up from 91.8% and our forward leasing pipeline would increase MOB and NNN occupancy further to 92.6% that’s if LOIs lead to definitive agreements and assuming no terminations or expirations. At the same time, our portfolio exposure to MOB and NNN properties has increased over 500 basis points to 63.1% from 57.9% based on NOI. Rent collection in this portfolio has also remained strong year-over-year, at approximately 100%.

 

I would now like to turn the call back to Mike for some color on the HTI team and some closing remarks.

 

Slide 10: Company Highlights – (Mike Weil)

 

Thanks Jason. Supporting HTI’s high-quality portfolio and future growth is a diligent acquisition program that closed over $100 million of acquisitions in 2020 and has closed and pipeline acquisitions of over $36 million for 2021, and an asset management platform focused on driving strong operational outperformance. We believe our underwriting and proactive asset management continues to result in excellent rent collection in the MOB and triple-net segments of our portfolio. We have a conservative balance sheet with Net Leverage of 41.2% and have experienced a year-over-year increase in portfolio exposure to MOB and NNN assets, which have proven to be a particularly strong segment over the last year.

 

Our management team is the key to both ongoing performance and an eventual liquidity event based on management’s significant experience with public REITs and the healthcare industry.

 

Slide 11: Experienced Leadership Team

 

We believe we have the right team in place to execute our strategy to drive long-term value for HTI shareholders.

 

On the MOB real estate side, David Ruggiero and his team bring over 20 years of experience to HTI’s advisor, evaluating and negotiating hundreds of potential transactions per year while adhering to our strict investment guidelines and underwriting standards. Trent Taylor is our portfolio asset manager and he ensures that our existing properties are leased, performing as expected and that our tenants’ needs are being met by local property managers.

 

Our team’s collective experience and excellent relationships with our tenants contributed to our ability to collect approximately 100% of the cash rent in the combined MOB and NNN portfolios during the first quarter.

 

Slide 12: Dedicated SHOP Team

 

Supplementing HTI’s leadership team, John Rimbach and his team are dedicated to managing our SHOP Portfolio. In 2018, HTI made a significant commitment to the SHOP segment of our portfolio and brought John and other key operating personnel from WESTLiving to HTI’s advisor to manage our SHOP properties. John’s team has extensive experience in the Seniors Housing space and has already made significant improvements to this segment of our portfolio, both operationally and through advising on potential real estate acquisitions and dispositions.

 

The last year required our SHOP team to work tirelessly to create a safe environment for our residents that balanced providing care, meeting ever-changing regulations related to COVID-19 and safely operating a business with thousands of employees. Our team has risen to the occasion and the vaccine rollout in our communities has been very successful. We look forward to returning to a focus on building welcoming communities for our current and future residents.

 

 

 

Slide 13: Strong Corporate Governance

 

HTI has an engaged board of directors, led by non-executive chair Leslie Michelson. Also serving on HTI’s board are Lee Elman, former Governor of Pennsylvania Ed Rendell, Elizabeth Tuppeny and B.J. Penn. The board is comprised of a majority of independent directors, including an audit committee and a nominating and corporate governance committee made up of only independent directors. In addition to their distinguished careers, several of our board members currently or formerly have served on the boards of publicly traded REITs.

 

Closing Statements – (Mike Weil)

 

In closing, HTI is well positioned to continue growing and maturing after navigating the COVID-19 crisis during the last fourteen months. The stability and resilience shown by our MOB and NNN portfolios are the product of our acquisition underwriting and dedicated operating teams. Our 100% rent collection rate in these segments over the last three quarters and growing portfolio fundamentals such as occupancy and leasing further exemplify this. Like all seniors housing properties, our SHOP segment has experienced a decline in occupancy, but we are beginning to see positive traction at our communities. In addition to caring for our residents, we have used this period to take steps to be prepared to attract and welcome new residents as COVID fears subside. We look forward to the coming months as the vaccine continues to roll out and authorities approve additional steps towards a return to normalcy. Thank you for joining us today.

 

Operator Closes the Call

 

The conference has now concluded. If you have submitted questions during today’s webcast, a member of our investor relations group will follow-up to answer your questions. Also, please note that a copy of the presentation and replay of this webcast will be available on the company’s website at www.healthcaretrustinc.com. Thank you for attending today’s presentation. You may now disconnect.