UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30, 2021~~March 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-35568 (Healthcare Trust of America, Inc.)

Commission File Number: 333-190916 (Healthcare Trust of America Holdings, LP)

_________________________

HEALTHCARE TRUST OF AMERICA, INC.

HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

(Exact name of registrant as specified in its charter)

Maryland

(Healthcare Trust of America, Inc.)

20-4738467

Delaware

(Healthcare Trust of America Holdings, LP)

20-4738347

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

16435 N. Scottsdale Road, Suite 320,

Scottsdale,

Arizona

85254

(480)

998-3478

(Address of Principal Executive Office and Zip Code)

(Registrant’s telephone number, including area code)


www.htareit.com
(Internet address)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

HTA

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Healthcare Trust of America, Inc.	☒	Yes	¨ No
Healthcare Trust of America Holdings, LP	☒	Yes	¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Healthcare Trust of America, Inc.	☒	Yes	¨ No
Healthcare Trust of America Holdings, LP	☒	Yes	¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Healthcare Trust of America, Inc.

☒

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

Healthcare Trust of America Holdings, LP

☐

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

Healthcare Trust of America, Inc.

☐

Smaller reporting company

☐

Emerging growth company

Healthcare Trust of America Holdings, LP

☐

Smaller reporting company

☐

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.


Healthcare Trust of America, Inc.			☐
Healthcare Trust of America Holdings, LP			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Healthcare Trust of America, Inc.	☐	Yes	x No
Healthcare Trust of America Holdings, LP	☐	Yes	x No

As of ~~July~~April 29, ~~2021,~~2022, there were ~~218,849,312~~229,075,890 shares of Class A common stock of Healthcare Trust of America, Inc. outstanding.

Explanatory Note

This quarterly report combines the Quarterly Reports on Form 10-Q (“Quarterly Report”) for the quarter ended ~~June 30, 2021,~~March 31, 2022, of Healthcare Trust of America, Inc. (“HTA”), a Maryland corporation, and Healthcare Trust of America Holdings, LP (“HTALP”), a Delaware limited partnership. Unless otherwise indicated or unless the context requires otherwise, all references in this Quarterly Report to “we,” “us,” “our,” “the Company” or “our Company” refer to HTA and HTALP, collectively, and all references to “common stock” shall refer to the Class A common stock of HTA.

HTA operates as a real estate investment trust (“REIT”) and is the general partner of HTALP. As of ~~June 30, 2021,~~March 31, 2022, HTA owned a ~~98.4%~~98.3% partnership interest in HTALP, and other limited partners, including some of HTA’s directors, executive officers and their affiliates, owned the remaining partnership interest (including the long-term incentive plan units (“LTIP” Units)) in HTALP. As the sole general partner of HTALP, HTA has the full, exclusive and complete responsibility for HTALP’s day-to-day management and control, including its compliance with the Securities and Exchange Commission (“SEC”) filing requirements.

We believe it is important to understand the few differences between HTA and HTALP in the context of how we operate as an integrated consolidated company. HTA operates as an umbrella partnership REIT structure in which HTALP and its subsidiaries hold substantially all of the assets. HTA’s only material asset is its ownership of partnership units of HTALP. As a result, HTA does not conduct business itself, other than acting as the sole general partner of HTALP, issuing public equity from time to time and guaranteeing certain debts of HTALP. HTALP conducts the operations of the business and issues publicly-traded debt, but has no publicly-traded equity. Except for net proceeds from public equity issuances by HTA, which are generally contributed to HTALP in exchange for partnership units of HTALP, HTALP generates the capital required for the business through its operations and by direct or indirect incurrence of indebtedness or through the issuance of its partnership units (“OP Units”).

Non-controlling interests, stockholders’ equity and partners’ capital are the primary areas of difference between the condensed consolidated financial statements of HTA and HTALP. Limited partnership units in HTALP are accounted for as partners’ capital in HTALP’s condensed consolidated balance sheets and as a non-controlling interest reflected within equity in HTA’s condensed consolidated balance sheets. The differences between HTA’s stockholders’ equity and HTALP’s partners’ capital are due to the differences in the equity issued by HTA and HTALP, respectively.

We believe combining the Quarterly Reports of HTA and HTALP, including the notes to the condensed consolidated financial statements, into this single Quarterly Report results in the following benefits:

•enhances stockholders’ understanding of HTA and HTALP by enabling stockholders to view the business as a whole in the same manner that management views and operates the business;

•eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure in this Quarterly Report applies to both HTA and HTALP; and

•creates time and cost efficiencies through the preparation of a single combined Quarterly Report instead of two separate Quarterly Reports.

In order to highlight the material differences between HTA and HTALP, this Quarterly Report includes sections that separately present and discuss areas that are materially different between HTA and HTALP, including:

•the condensed consolidated financial statements;

•certain accompanying notes to the condensed consolidated financial statements, including Note 8 - Debt, Note 11 - Stockholders’ Equity and Partners’ Capital, Note 13 - Per Share Data of HTA, and Note 14 - Per Unit Data of HTALP;

•as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), the Funds From Operations (“FFO”) and Normalized FFO in Part 1, Item 2 of this Quarterly Report;

•the Controls and Procedures in Part 1, Item 4 of this Quarterly Report; and

•the Certifications of the Chief Executive Officer and the Chief Financial Officer included as Exhibits 31 and 32 to this Quarterly Report.

In the sections of this Quarterly Report that combine disclosure for HTA and HTALP, this Quarterly Report refers to actions or holdings as being actions or holdings of the Company. Although HTALP (directly or indirectly through one of its subsidiaries) is generally the entity that enters into contracts, holds assets and issues or incurs debt, management believes this presentation is appropriate for the reasons set forth above and because the business of the Company is a single integrated enterprise operated through HTALP.

HEALTHCARE TRUST OF AMERICA, INC. AND

HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

TABLE OF CONTENTS


		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	4
Healthcare Trust of America, Inc.
	Condensed Consolidated Balance Sheets as of ~~June 30, 2021~~March 31, 202 2 and December 31, ~~2020~~202 1	4
	Condensed Consolidated Statements of Operations for the Three ~~and Six~~ Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	5
	Condensed Consolidated Statements of Comprehensive Income for the Three ~~and Six~~ Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	6
	Condensed Consolidated Statements of Equity for the Three ~~and Six~~ Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	7
	Condensed Consolidated Statements of Cash Flows for the ~~Six~~ Three Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	8
Healthcare Trust of America Holdings, LP
	Condensed Consolidated Balance Sheets as of ~~June 30, 2021~~March 3 1 , 202 2 and December 31, ~~2020~~202 1	9
	Condensed Consolidated Statements of Operations for the Three ~~and Six~~ Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	10
	Condensed Consolidated Statements of Comprehensive Income for the Three ~~and Six~~ Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	11
	Condensed Consolidated Statements of Changes in Partners’ Capital for the Three ~~and Six~~ Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	12
	Condensed Consolidated Statements of Cash Flows for the ~~Six~~Three Months Ended ~~June 30, 2021~~March 3 1 , 202 2 and ~~2020~~202 1	13
Notes for Healthcare Trust of America, Inc. and Healthcare Trust of America Holdings, LP
	Notes to Unaudited Condensed Consolidated Financial Statements	14
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2930
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4342
Item 4.	Controls and Procedures	4342

PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	4443
Item 1A.	Risk Factors	4443
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4443
Item 6.	Exhibits	4443

Signatures		4745

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

HEALTHCARE TRUST OF AMERICA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

(Unaudited)


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Real estate investments:	Real estate investments:					Real estate investments:
Land	Land	$	596,084	$	596,269	Land	$	644,194	$	640,382
Building and improvements	Building and improvements	6,542,944		6,507,816		Building and improvements	6,744,865		6,688,516
Lease intangibles	Lease intangibles	617,731		628,621		Lease intangibles	393,756		404,714
Construction in progress	Construction in progress	88,609		80,178		Construction in progress	15,673		32,685
		7,845,368		7,812,884			7,798,488		7,766,297
Accumulated depreciation and amortization	Accumulated depreciation and amortization	(1,806,165)		(1,702,719)		Accumulated depreciation and amortization	(1,650,257)		(1,598,468)
Real estate investments, net	Real estate investments, net	6,039,203		6,110,165		Real estate investments, net	6,148,231		6,167,829

Assets held for sale, net						Assets held for sale, net	—		27,070
Investment in unconsolidated joint venture	Investment in unconsolidated joint venture	63,593		64,360		Investment in unconsolidated joint venture	62,454		62,834
Cash and cash equivalents	Cash and cash equivalents	19,796		115,407		Cash and cash equivalents	10,944		52,353
Restricted cash	Restricted cash	70,542		3,358		Restricted cash	4,478		4,716
Receivables and other assets, net	Receivables and other assets, net	294,550		251,728		Receivables and other assets, net	350,781		334,941
Right-of-use assets - operating leases, net	Right-of-use assets - operating leases, net	228,870		235,223		Right-of-use assets - operating leases, net	228,009		229,226
Other intangibles, net	Other intangibles, net	8,850		10,451		Other intangibles, net	10,011		10,720
Total assets	Total assets	$	6,725,404	$	6,790,692	Total assets	$	6,814,908	$	6,889,689
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Liabilities:	Liabilities:					Liabilities:
Debt	Debt	$	3,073,465	$	3,026,999	Debt	$	3,053,884	$	3,028,122
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	172,653		200,358		Accounts payable and accrued liabilities	159,659		198,078

Liabilities of assets held for sale						Liabilities of assets held for sale	—		262
Derivative financial instruments - interest rate swaps	Derivative financial instruments - interest rate swaps	10,755		14,957		Derivative financial instruments - interest rate swaps	—		5,069
Security deposits, prepaid rent and other liabilities	Security deposits, prepaid rent and other liabilities	83,474		82,553		Security deposits, prepaid rent and other liabilities	78,771		86,225
Lease liabilities - operating leases	Lease liabilities - operating leases	195,210		198,367		Lease liabilities - operating leases	196,226		196,286
Intangible liabilities, net	Intangible liabilities, net	29,959		32,539		Intangible liabilities, net	30,001		31,331
Total liabilities	Total liabilities	3,565,516		3,555,773		Total liabilities	3,518,541		3,545,373
Commitments and contingencies	Commitments and contingencies	0		0		Commitments and contingencies	0		0

Equity:	Equity:					Equity:
Preferred stock, $0.01 par value; 200,000,000 shares authorized; NaN issued and outstanding		0		0
Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 218,825,737 and 218,578,012 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		2,188		2,186
Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding						Preferred stock, $0.01 par value; 200,000,000 shares authorized; none issued and outstanding	—		—
Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 229,076,322 and 228,879,846 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively						Class A common stock, $0.01 par value; 1,000,000,000 shares authorized; 229,076,322 and 228,879,846 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	2,291		2,289
Additional paid-in capital	Additional paid-in capital	4,919,353		4,916,784		Additional paid-in capital	5,180,579		5,178,132
Accumulated other comprehensive loss		(12,734)		(16,979)
Accumulated other comprehensive income (loss)						Accumulated other comprehensive income (loss)	1,727		(7,041)
Cumulative dividends in excess of earnings	Cumulative dividends in excess of earnings	(1,807,753)		(1,727,752)		Cumulative dividends in excess of earnings	(1,971,904)		(1,915,776)
Total stockholders’ equity	Total stockholders’ equity	3,101,054		3,174,239		Total stockholders’ equity	3,212,693		3,257,604
Non-controlling interests	Non-controlling interests	58,834		60,680		Non-controlling interests	83,674		86,712
Total equity	Total equity	3,159,888		3,234,919		Total equity	3,296,367		3,344,316
Total liabilities and equity	Total liabilities and equity	$	6,725,404	$	6,790,692	Total liabilities and equity	$	6,814,908	$	6,889,689

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

HEALTHCARE TRUST OF AMERICA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share data)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Revenues:	Revenues:									Revenues:
Rental income	Rental income	$	188,494	$	178,670	$	379,844	$	364,201	Rental income	$	200,243	$	191,350
Interest and other operating income	Interest and other operating income	121		175		264		420		Interest and other operating income	1,759		143
Total revenues	Total revenues	188,615		178,845		380,108		364,621		Total revenues	202,002		191,493
Expenses:	Expenses:									Expenses:
Rental	Rental	57,409		56,200		116,988		113,062		Rental	65,884		59,579
General and administrative	General and administrative	10,929		10,160		21,489		21,678		General and administrative	12,448		10,560
Merger-related costs										Merger-related costs	6,018		—
Transaction	Transaction	66		32		162		172		Transaction	144		96
Depreciation and amortization	Depreciation and amortization	74,977		74,927		151,251		152,592		Depreciation and amortization	75,386		76,274
Interest expense	Interest expense	23,133		24,277		46,119		48,149		Interest expense	23,940		22,986
Impairment		16,825		0		16,825		0

Total expenses	Total expenses	183,339		165,596		352,834		335,653		Total expenses	183,820		169,495
Gain on sale of real estate, net		32,753		0		32,753		1,991
Loss on sale of real estate, net										Loss on sale of real estate, net	(4)		—

Income from unconsolidated joint venture	Income from unconsolidated joint venture	406		379		798		801		Income from unconsolidated joint venture	400		392
Other income	Other income	304		97		307		173		Other income	88		3
Net income	Net income	$	38,739	$	13,725	$	61,132	$	31,933	Net income	$	18,666	$	22,393
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests	(728)		(236)		(1,091)		(543)		Net income attributable to non-controlling interests	(351)		(363)
Net income attributable to common stockholders	Net income attributable to common stockholders	$	38,011	$	13,489	$	60,041	$	31,390	Net income attributable to common stockholders	$	18,315	$	22,030
Earnings per common share - basic:	Earnings per common share - basic:									Earnings per common share - basic:
Net income attributable to common stockholders	Net income attributable to common stockholders	$	0.17	$	0.06	$	0.27	$	0.14	Net income attributable to common stockholders	$	0.08	$	0.10
Earnings per common share - diluted:	Earnings per common share - diluted:									Earnings per common share - diluted:
Net income attributable to common stockholders	Net income attributable to common stockholders	$	0.17	$	0.06	$	0.27	$	0.14	Net income attributable to common stockholders	$	0.08	$	0.10
Weighted average common shares outstanding:	Weighted average common shares outstanding:									Weighted average common shares outstanding:
Basic	Basic	218,822		218,483		218,787		217,588		Basic	228,978		218,753
Diluted	Diluted	222,326		222,088		222,297		221,228		Diluted	233,046		222,268

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

HEALTHCARE TRUST OF AMERICA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ~~(LOSS)~~

(In thousands)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021

Net income	Net income	$	38,739	$	13,725	$	61,132	$	31,933	Net income	$	18,666	$	22,393

Other comprehensive income (loss)
Change in unrealized gains (losses) on cash flow hedges		1,523		(3,228)		4,315		(25,726)
Total other comprehensive income (loss)		1,523		(3,228)		4,315		(25,726)
Other comprehensive income										Other comprehensive income
Change in unrealized gains on cash flow hedges										Change in unrealized gains on cash flow hedges	8,817		2,792
Total other comprehensive income										Total other comprehensive income	8,817		2,792

Total comprehensive income	Total comprehensive income	40,262		10,497		65,447		6,207		Total comprehensive income	27,483		25,185
Comprehensive income attributable to non-controlling interests	Comprehensive income attributable to non-controlling interests	(754)		(184)		(1,161)		(131)		Comprehensive income attributable to non-controlling interests	(400)		(407)
Total comprehensive income attributable to common stockholders	Total comprehensive income attributable to common stockholders	$	39,508	$	10,313	$	64,286	$	6,076	Total comprehensive income attributable to common stockholders	$	27,083	$	24,778

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

HEALTHCARE TRUST OF AMERICA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

(Unaudited)
Class A Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Cumulative Dividends in Excess of Earnings Total Stockholders’ Equity Non-controlling Interests Total Equity
Shares Amount
Balance as of December 31, 2019 216,453 $ 2,165 $ 4,854,042 $ 4,546 $ (1,502,744) $ 3,358,009 $ 72,635 $ 3,430,644
Issuance of common stock, net 1,675 17 50,003 — — 50,020 — 50,020
Share-based award transactions, net 236 2 3,201 — — 3,203 — 3,203
Repurchase and cancellation of common stock (154) (2) (4,622) — — (4,624) — (4,624)
Redemption of non-controlling interest and other 273 3 6,773 — — 6,776 (6,776) 0
Dividends declared ($0.315 per common share) — — — — (68,867) (68,867) (1,134) (70,001)
Net income — — — — 17,901 17,901 307 18,208
Other comprehensive loss — — — (22,138) — (22,138) (360) (22,498)
Balance as of March 31, 2020 218,483 2,185 4,909,397 (17,592) (1,553,710) 3,340,280 64,672 3,404,952
Issuance of OP Units in HTALP — — — — — — 1,378 1,378
Share-based award transactions, net (1) — 2,100 — — 2,100 — 2,100
Repurchase and cancellation of common stock (7) — (174) — — (174) — (174)
Redemption of non-controlling interest and other 40 — 1,096 — — 1,096 (1,096) 0
Dividends declared ($0.315) per common share) — — — — (68,827) (68,827) (1,162) (69,989)
Net Income — — — — 13,489 13,489 236 13,725
Other comprehensive loss — — — (3,176) — (3,176) (52) (3,228)
Balance as of June 30, 2020 218,515 $ 2,185 $ 4,912,419 $ (20,768) $ (1,609,048) $ 3,284,788 $ 63,976 $ 3,348,764


	Class A Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Cumulative Dividends in Excess of Earnings		Total Stockholders’ Equity		Non-controlling Interests		Total Equity
	Shares	Amount
Balance as of December 31, 2020	218,578	$	2,186	$	4,916,784	$	(16,979)	$	(1,727,752)	$	3,174,239	$	60,680	$	3,234,919

Share-based award transactions, net	354	3		3,334		—		—		3,337		—		3,337
Repurchase and cancellation of common stock	(119)	(1)		(3,247)		—		—		(3,248)		—		(3,248)
Redemption of non-controlling interest and other	11	—		255		—		—		255		(255)		—
Dividends declared ($0.320 per common share)	—	—		—		—		(70,023)		(70,023)		(1,183)		(71,206)
Net income	—	—		—		—		22,030		22,030		363		22,393
Other comprehensive income	—	—		—		2,748		—		2,748		44		2,792
Balance as of March 31, 2021	218,824	2,188		$	4,917,126	$	(14,231)	$	(1,775,745)	$	3,129,338	$	59,649	$	3,188,987

Class A Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Cumulative Dividends in Excess of Earnings Total Stockholders’ Equity Non-controlling Interests Total Equity
Shares Amount
Balance as of December 31, 2020 218,578 $ 2,186 $ 4,916,784 $ (16,979) $ (1,727,752) $ 3,174,239 $ 60,680 $ 3,234,919
Share-based award transactions, net 354 3 3,334 — — 3,337 — 3,337
Repurchase and cancellation of common stock (119) (1) (3,247) — — (3,248) — (3,248)
Redemption of non-controlling interest and other 11 — 255 — — 255 (255) 0
Dividends declared ($0.320) per common share) — — — — (70,023) (70,023) (1,183) (71,206)
Net income — — — — 22,030 22,030 363 22,393
Other comprehensive income — — — 2,748 — 2,748 44 2,792
Balance as of March 31, 2021 218,824 2,188 4,917,126 (14,231) (1,775,745) 3,129,338 59,649 3,188,987
Share-based award transactions, net (6) — 2,065 — — 2,065 — 2,065
Repurchase and cancellation of common stock (5) — (129) — — (129) — (129)
Redemption of non-controlling interest and other 13 — 291 — — 291 (291) 0
Dividends declared ($0.320) per common share) — — — — (70,019) (70,019) (1,278) (71,297)
Net income — — — — 38,011 38,011 728 38,739
Other comprehensive income — — — 1,497 — 1,497 26 1,523
Balance as of June 30, 2021 218,826 $ 2,188 $ 4,919,353 $ (12,734) $ (1,807,753) $ 3,101,054 $ 58,834 $ 3,159,888


	Class A Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Cumulative Dividends in Excess of Earnings		Total Stockholders’ Equity		Non-controlling Interests		Total Equity
	Shares	Amount
Balance as of December 31, 2021	228,880	$	2,289	$	5,178,132	$	(7,041)	$	(1,915,776)	$	3,257,604	$	86,712	$	3,344,316
Issuance of common stock, net	—	—		—		—		—		—		—		—
Share-based award transactions, net	154	1		2,023		—		—		2,024		—		2,024
Repurchase and cancellation of common stock	(50)	—		(1,640)		—		—		(1,640)		—		(1,640)
Redemption of non-controlling interest and other	92	1		2,064		—		—		2,065		(2,065)		—
Dividends declared ($0.325) per common share)	—	—		—		—		(74,443)		(74,443)		(1,373)		(75,816)
Net income	—	—		—		—		18,315		18,315		351		18,666
Other comprehensive income	—	—		—		8,768		—		8,768		49		8,817
Balance as of March 31, 2022	229,076	$	2,291	$	5,180,579	$	1,727	$	(1,971,904)	$	3,212,693	$	83,674	$	3,296,367

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEALTHCARE TRUST OF AMERICA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	61,132	$	31,933	Net income	$	18,666	$	22,393
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	142,062		144,724		Depreciation and amortization	71,009		71,671
Share-based compensation expense	Share-based compensation expense	5,402		5,303		Share-based compensation expense	2,025		3,337
Income from unconsolidated joint venture	Income from unconsolidated joint venture	(798)		(801)		Income from unconsolidated joint venture	(400)		(392)
Distributions from unconsolidated joint venture	Distributions from unconsolidated joint venture	1,565		1,670		Distributions from unconsolidated joint venture	785		785
Impairment		16,825		0
Gain on sale of real estate, net		(32,753)		(1,991)

Loss on sale of real estate, net						Loss on sale of real estate, net	4		—

Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Receivables and other assets, net	Receivables and other assets, net	10,540		2,504		Receivables and other assets, net	(3,229)		2,275
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	(8,552)		(6,337)		Accounts payable and accrued liabilities	(34,131)		(27,613)
Security deposits, prepaid rent and other liabilities	Security deposits, prepaid rent and other liabilities	(4,496)		5,178		Security deposits, prepaid rent and other liabilities	(5,421)		(7,103)
Net cash provided by operating activities	Net cash provided by operating activities	190,927		182,183		Net cash provided by operating activities	49,308		65,353
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Investments in real estate	Investments in real estate	(50,628)		(41,338)		Investments in real estate	(19,094)		(30,472)
Development of real estate	Development of real estate	(33,983)		(30,367)		Development of real estate	(10,372)		(17,096)
Proceeds from the sale of real estate	Proceeds from the sale of real estate	65,349		6,420		Proceeds from the sale of real estate	26,791		—
Capital expenditures	Capital expenditures	(53,471)		(43,917)		Capital expenditures	(28,560)		(28,931)
Collection of real estate notes receivable	Collection of real estate notes receivable	15,405		514		Collection of real estate notes receivable	—		200
Loan origination fees						Loan origination fees	325		—
Advances on real estate notes receivable	Advances on real estate notes receivable	(61,020)		(6,000)		Advances on real estate notes receivable	(2,270)		—
Net cash used in investing activities	Net cash used in investing activities	(118,348)		(114,688)		Net cash used in investing activities	(33,180)		(76,299)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Borrowings on unsecured revolving credit facility	Borrowings on unsecured revolving credit facility	100,000		1,314,000		Borrowings on unsecured revolving credit facility	75,000		15,000
Payments on unsecured revolving credit facility	Payments on unsecured revolving credit facility	(55,000)		(1,150,000)		Payments on unsecured revolving credit facility	(50,000)		(15,000)

Payments on secured mortgage loans		0		(96,206)

Deferred financing costs						Deferred financing costs	(5,355)		—

Proceeds from issuance of common stock		0		50,020
Issuance of OP Units		0		1,378

Repurchase and cancellation of common stock	Repurchase and cancellation of common stock	(3,377)		(4,798)		Repurchase and cancellation of common stock	(1,641)		(3,248)
Dividends paid	Dividends paid	(140,022)		(137,050)		Dividends paid	(74,377)		(70,000)
Distributions paid to non-controlling interest of limited partners	Distributions paid to non-controlling interest of limited partners	(2,607)		(2,455)		Distributions paid to non-controlling interest of limited partners	(1,402)		(1,485)
Net cash used in financing activities	Net cash used in financing activities	(101,006)		(25,111)		Net cash used in financing activities	(57,775)		(74,733)
Net change in cash, cash equivalents and restricted cash	Net change in cash, cash equivalents and restricted cash	(28,427)		42,384		Net change in cash, cash equivalents and restricted cash	(41,647)		(85,679)
Cash, cash equivalents and restricted cash - beginning of period	Cash, cash equivalents and restricted cash - beginning of period	118,765		37,616		Cash, cash equivalents and restricted cash - beginning of period	57,069		118,765
Cash, cash equivalents and restricted cash - end of period	Cash, cash equivalents and restricted cash - end of period	$	90,338	$	80,000	Cash, cash equivalents and restricted cash - end of period	$	15,422	$	33,086

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except unit data)

(Unaudited)


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Real estate investments:	Real estate investments:					Real estate investments:
Land	Land	$	596,084	$	596,269	Land	$	644,194	$	640,382
Building and improvements	Building and improvements	6,542,944		6,507,816		Building and improvements	6,744,865		6,688,516
Lease intangibles	Lease intangibles	617,731		628,621		Lease intangibles	393,756		404,714
Construction in progress	Construction in progress	88,609		80,178		Construction in progress	15,673		32,685
		7,845,368		7,812,884			7,798,488		7,766,297
Accumulated depreciation and amortization	Accumulated depreciation and amortization	(1,806,165)		(1,702,719)		Accumulated depreciation and amortization	(1,650,257)		(1,598,468)
Real estate investments, net	Real estate investments, net	6,039,203		6,110,165		Real estate investments, net	6,148,231		6,167,829

Assets held for sale, net						Assets held for sale, net	—		27,070
Investment in unconsolidated joint venture	Investment in unconsolidated joint venture	63,593		64,360		Investment in unconsolidated joint venture	62,454		62,834
Cash and cash equivalents	Cash and cash equivalents	19,796		115,407		Cash and cash equivalents	10,944		52,353
Restricted cash	Restricted cash	70,542		3,358		Restricted cash	4,478		4,716
Receivables and other assets, net	Receivables and other assets, net	294,550		251,728		Receivables and other assets, net	350,781		334,941
Right-of-use assets - operating leases, net	Right-of-use assets - operating leases, net	228,870		235,223		Right-of-use assets - operating leases, net	228,009		229,226
Other intangibles, net	Other intangibles, net	8,850		10,451		Other intangibles, net	10,011		10,720
Total assets	Total assets	$	6,725,404	$	6,790,692	Total assets	$	6,814,908	$	6,889,689
LIABILITIES AND PARTNERS’ CAPITAL	LIABILITIES AND PARTNERS’ CAPITAL					LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:	Liabilities:					Liabilities:
Debt	Debt	$	3,073,465	$	3,026,999	Debt	$	3,053,884	$	3,028,122
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	172,653		200,358		Accounts payable and accrued liabilities	159,659		198,078

Liabilities of assets held for sale						Liabilities of assets held for sale	—		262
Derivative financial instruments - interest rate swaps	Derivative financial instruments - interest rate swaps	10,755		14,957		Derivative financial instruments - interest rate swaps	—		5,069
Security deposits, prepaid rent and other liabilities	Security deposits, prepaid rent and other liabilities	83,474		82,553		Security deposits, prepaid rent and other liabilities	78,771		86,225
Lease liabilities - operating leases	Lease liabilities - operating leases	195,210		198,367		Lease liabilities - operating leases	196,226		196,286
Intangible liabilities, net	Intangible liabilities, net	29,959		32,539		Intangible liabilities, net	30,001		31,331
Total liabilities	Total liabilities	3,565,516		3,555,773		Total liabilities	3,518,541		3,545,373
Commitments and contingencies	Commitments and contingencies	0		0		Commitments and contingencies	0		0

Partners’ Capital:	Partners’ Capital:					Partners’ Capital:
Limited partners’ capital, 3,495,755 and 3,519,545 OP Units issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		58,564		60,410
General partners’ capital, 218,825,737 and 218,578,012 OP Units issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		3,101,324		3,174,509
Limited partners’ capital, 4,050,493 and 4,142,408 OP Units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively						Limited partners’ capital, 4,050,493 and 4,142,408 OP Units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	83,404		86,442
General partners’ capital, 229,076,322 and 228,879,846 OP Units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively						General partners’ capital, 229,076,322 and 228,879,846 OP Units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	3,212,963		3,257,874
Total partners’ capital	Total partners’ capital	3,159,888		3,234,919		Total partners’ capital	3,296,367		3,344,316
Total liabilities and partners’ capital	Total liabilities and partners’ capital	$	6,725,404	$	6,790,692	Total liabilities and partners’ capital	$	6,814,908	$	6,889,689

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per unit data)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Revenues:	Revenues:									Revenues:
Rental income	Rental income	$	188,494	$	178,670	$	379,844	$	364,201	Rental income	$	200,243	$	191,350
Interest and other operating income	Interest and other operating income	121		175		264		420		Interest and other operating income	1,759		143
Total revenues	Total revenues	188,615		178,845		380,108		364,621		Total revenues	202,002		191,493
Expenses:	Expenses:									Expenses:
Rental	Rental	57,409		56,200		116,988		113,062		Rental	65,884		59,579
General and administrative	General and administrative	10,929		10,160		21,489		21,678		General and administrative	12,448		10,560
Merger-related costs										Merger-related costs	6,018		—
Transaction	Transaction	66		32		162		172		Transaction	144		96
Depreciation and amortization	Depreciation and amortization	74,977		74,927		151,251		152,592		Depreciation and amortization	75,386		76,274
Interest expense	Interest expense	23,133		24,277		46,119		48,149		Interest expense	23,940		22,986
Impairment		16,825		0		16,825		0

Total expenses	Total expenses	183,339		165,596		352,834		335,653		Total expenses	183,820		169,495
Gain on sale of real estate, net		32,753		0		32,753		1,991
Loss on sale of real estate, net										Loss on sale of real estate, net	(4)		—

Income from unconsolidated joint venture	Income from unconsolidated joint venture	406		379		798		801		Income from unconsolidated joint venture	400		392
Other income	Other income	304		97		307		173		Other income	88		3
Net income	Net income	$	38,739	$	13,725	$	61,132	$	31,933	Net income	$	18,666	$	22,393
Net income attributable to non-controlling interests	Net income attributable to non-controlling interests	0		0		0		0		Net income attributable to non-controlling interests	—		—
Net income attributable to common unitholders	Net income attributable to common unitholders	$	38,739	$	13,725	$	61,132	$	31,933	Net income attributable to common unitholders	$	18,666	$	22,393
Earnings per common OP Unit - basic:	Earnings per common OP Unit - basic:									Earnings per common OP Unit - basic:
Net income attributable to common unitholders	Net income attributable to common unitholders	$	0.17	$	0.06	$	0.28	$	0.14	Net income attributable to common unitholders	$	0.08	$	0.10
Earnings per common OP Unit - diluted:	Earnings per common OP Unit - diluted:									Earnings per common OP Unit - diluted:
Net income attributable to common unitholders	Net income attributable to common unitholders	$	0.17	$	0.06	$	0.28	$	0.14	Net income attributable to common unitholders	$	0.08	$	0.10
Weighted average common OP Units outstanding:	Weighted average common OP Units outstanding:									Weighted average common OP Units outstanding:
Basic	Basic	222,326		222,088		222,297		221,228		Basic	233,046		222,268
Diluted	Diluted	222,326		222,088		222,297		221,228		Diluted	233,046		222,268

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021

Net income	Net income	$	38,739	$	13,725	$	61,132	$	31,933	Net income	$	18,666	$	22,393

Other comprehensive income (loss)
Change in unrealized gains (losses) on cash flow hedges		1,523		(3,228)		4,315		(25,726)
Total other comprehensive income (loss)		1,523		(3,228)		4,315		(25,726)
Other comprehensive income										Other comprehensive income
Change in unrealized gains on cash flow hedges										Change in unrealized gains on cash flow hedges	8,817		2,792
Total other comprehensive income										Total other comprehensive income	8,817		2,792

Total comprehensive income	Total comprehensive income	40,262		10,497		65,447		6,207		Total comprehensive income	27,483		25,185
Comprehensive income attributable to non-controlling interests	Comprehensive income attributable to non-controlling interests	0		0		0		0		Comprehensive income attributable to non-controlling interests	—		—
Total comprehensive income attributable to common unitholders	Total comprehensive income attributable to common unitholders	$	40,262	$	10,497	$	65,447	$	6,207	Total comprehensive income attributable to common unitholders	$	27,483	$	25,185

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(In thousands)

~~(Unaudited)~~(Unaudited
General Partners’ Capital Limited Partners’ Capital Total Partners’ Capital
Units Amount Units Amount
Balance as of December 31, 2019 216,453 $ 3,358,279 3,834 $ 72,365 $ 3,430,644
Issuance of general partner OP Units 1,675 50,020 — — 50,020
Share-based award transactions, net 236 3,203 — — 3,203
Redemption and cancellation of general partner OP Units (154) (4,624) — — (4,624)
Redemption of limited partner OP Units and other 273 6,776 (273) (6,776) 0
Distributions declared ($0.315 per common OP Unit) — (68,867) — (1,134) (70,001)
Net income — 17,901 — 307 18,208
Other comprehensive loss — (22,138) — (360) (22,498)
Balance as of March 31, 2020 218,483 3,340,550 3,561 64,402 3,404,952
Issuance of limited partner OP Units 47 1,378 1,378
Share-based award transactions, net (1) 2,100 — — 2,100
Redemption and cancellation of general partner OP Units (7) (174) — — (174)
Redemption of limited partner OP Units and other 40 1,096 (40) (1,096) 0
Distributions declared ($0.315 per common OP Unit) — (68,827) — (1,162) (69,989)
Net income — 13,489 — 236 13,725
Other comprehensive loss — (3,176) — (52) (3,228)
Balance as of June 30, 2020 218,515 $ 3,285,058 3,568 $ 63,706 $ 3,348,764


	General Partners’ Capital			Limited Partners’ Capital			Total Partners’ Capital
	Units	Amount		Units	Amount
Balance as of December 31, 2020	218,578	$	3,174,509	3,520	$	60,410	$	3,234,919

Share-based award transactions, net	354	3,337		—	—		3,337
Redemption and cancellation of general partner OP Units	(119)	(3,248)		—	—		(3,248)
Redemption of limited partner OP Units and other	11	255		(11)	(255)		—
Distributions declared ($0.320 per common OP Unit)	—	(70,023)		—	(1,183)		(71,206)
Net income	—	22,030		—	363		22,393
Other comprehensive income	—	2,748		—	44		2,792
Balance as of March 31, 2021	218,824	$	3,129,608	3,509	$	59,379	$	3,188,987

General Partners’ Capital Limited Partners’ Capital Total Partners’ Capital
Units Amount Units Amount
Balance as of December 31, 2020 218,578 $ 3,174,509 3,520 $ 60,410 $ 3,234,919
Share-based award transactions, net 354 3,337 — — 3,337
Redemption and cancellation of general partner OP Units (119) (3,248) — — (3,248)
Redemption of limited partner OP Units and other 11 255 (11) (255) 0
Distributions declared ($0.320 per common OP Unit) — (70,023) — (1,183) (71,206)
Net income — 22,030 — 363 22,393
Other comprehensive income — 2,748 — 44 2,792
Balance as of March 31, 2021 218,824 3,129,608 3,509 59,379 3,188,987
Share-based award transactions, net (6) 2,065 — — 2,065
Redemption and cancellation of general partner OP Units (5) (129) — — (129)
Redemption of limited partner OP Units and other 13 291 (13) (291) 0
Distributions declared ($0.320 per common OP Unit) — (70,019) — (1,278) (71,297)
Net income — 38,011 — 728 38,739
Other comprehensive income — 1,497 — 26 1,523
Balance as of June 30, 2021 218,826 $ 3,101,324 3,496 $ 58,564 $ 3,159,888


	General Partners’ Capital			Limited Partners’ Capital			Total Partners’ Capital
	Units	Amount		Units	Amount
Balance as of December 31, 2021	228,880	$	3,257,874	4,142	$	86,442	$	3,344,316

Share-based award transactions, net	154	2,024		—	—		2,024
Redemption and cancellation of general partner OP Units	(50)	(1,640)		—	—		(1,640)
Redemption of limited partner OP Units and other	92	2,065		(92)	(2,065)		—
Distributions declared ($0.325 per common OP Unit)	—	(74,443)		—	(1,373)		(75,816)
Net income	—	18,315		—	351		18,666
Other comprehensive income	—	8,768		—	49		8,817
Balance as of March 31, 2022	229,076	$	3,212,963	4,050	$	83,404	$	3,296,367

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

HEALTHCARE TRUST OF AMERICA HOLDINGS, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	61,132	$	31,933	Net income	$	18,666	$	22,393
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	142,062		144,724		Depreciation and amortization	71,009		71,671
Share-based compensation expense	Share-based compensation expense	5,402		5,303		Share-based compensation expense	2,025		3,337
Income from unconsolidated joint venture	Income from unconsolidated joint venture	(798)		(801)		Income from unconsolidated joint venture	(400)		(392)
Distributions from unconsolidated joint venture	Distributions from unconsolidated joint venture	1,565		1,670		Distributions from unconsolidated joint venture	785		785
Impairment		16,825		0
Gain on sale of real estate, net		(32,753)		(1,991)

Loss on sale of real estate, net						Loss on sale of real estate, net	4		—

Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Receivables and other assets, net	Receivables and other assets, net	10,540		2,504		Receivables and other assets, net	(3,229)		2,275
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	(8,552)		(6,337)		Accounts payable and accrued liabilities	(34,131)		(27,613)
Security deposits, prepaid rent and other liabilities	Security deposits, prepaid rent and other liabilities	(4,496)		5,178		Security deposits, prepaid rent and other liabilities	(5,421)		(7,103)
Net cash provided by operating activities	Net cash provided by operating activities	190,927		182,183		Net cash provided by operating activities	49,308		65,353
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Investments in real estate	Investments in real estate	(50,628)		(41,338)		Investments in real estate	(19,094)		(30,472)
Development of real estate	Development of real estate	(33,983)		(30,367)		Development of real estate	(10,372)		(17,096)
Proceeds from the sale of real estate	Proceeds from the sale of real estate	65,349		6,420		Proceeds from the sale of real estate	26,791		—
Capital expenditures	Capital expenditures	(53,471)		(43,917)		Capital expenditures	(28,560)		(28,931)
Collection of real estate notes receivable	Collection of real estate notes receivable	15,405		514		Collection of real estate notes receivable	—		200
Loan origination fees						Loan origination fees	325		—
Advances on real estate notes receivable	Advances on real estate notes receivable	(61,020)		(6,000)		Advances on real estate notes receivable	(2,270)		—
Net cash used in investing activities	Net cash used in investing activities	(118,348)		(114,688)		Net cash used in investing activities	(33,180)		(76,299)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Borrowings on unsecured revolving credit facility	Borrowings on unsecured revolving credit facility	100,000		1,314,000		Borrowings on unsecured revolving credit facility	75,000		15,000
Payments on unsecured revolving credit facility	Payments on unsecured revolving credit facility	(55,000)		(1,150,000)		Payments on unsecured revolving credit facility	(50,000)		(15,000)

Payments on secured mortgage loans		0		(96,206)

Deferred financing costs						Deferred financing costs	(5,355)		—

Proceeds from issuance of general partner units		0		50,020
Issuance of OP Units		0		1,378

Repurchase and cancellation of general partner units	Repurchase and cancellation of general partner units	(3,377)		(4,798)		Repurchase and cancellation of general partner units	(1,641)		(3,248)
Distributions paid to general partner	Distributions paid to general partner	(140,022)		(137,050)		Distributions paid to general partner	(74,377)		(70,000)
Distributions paid to limited partners and redeemable non-controlling interests	Distributions paid to limited partners and redeemable non-controlling interests	(2,607)		(2,455)		Distributions paid to limited partners and redeemable non-controlling interests	(1,402)		(1,485)
Net cash used in financing activities	Net cash used in financing activities	(101,006)		(25,111)		Net cash used in financing activities	(57,775)		(74,733)
Net change in cash, cash equivalents and restricted cash	Net change in cash, cash equivalents and restricted cash	(28,427)		42,384		Net change in cash, cash equivalents and restricted cash	(41,647)		(85,679)
Cash, cash equivalents and restricted cash - beginning of period	Cash, cash equivalents and restricted cash - beginning of period	118,765		37,616		Cash, cash equivalents and restricted cash - beginning of period	57,069		118,765
Cash, cash equivalents and restricted cash - end of period	Cash, cash equivalents and restricted cash - end of period	$	90,338	$	80,000	Cash, cash equivalents and restricted cash - end of period	$	15,422	$	33,086

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unless otherwise indicated or unless the context requires otherwise the use of the words “we,” “us,” or “our” refers to Healthcare Trust of America, Inc. and Healthcare Trust of America Holdings, LP, collectively.

1. Organization and Description of Business

HTA, a Maryland corporation, and HTALP, a Delaware limited partnership, were incorporated or formed, as applicable, on April 20, 2006. HTA operates as a REIT and is the general partner of HTALP, which is the operating partnership, in an umbrella partnership, or “UPREIT” structure. HTA has qualified and intends to continue to be taxed as a REIT for federal income tax purposes under the applicable sections of the Internal Revenue Code.

We own real estate primarily consisting of medical office buildings (“MOBs”) located on or adjacent to hospital campuses or in off-campus, community core outpatient locations across 32 states within the United States, and we lease space to tenants primarily consisting of health systems, research and academic institutions, and various sized physician practices. Through our full-service operating platform, we provide leasing, asset management, acquisitions, development and other related services for our properties.

Our primary objective is to maximize stockholder value with growth through strategic investments that provide an attractive risk-adjusted return for our stockholders by consistently increasing our cash flow. In pursuing this objective, we: (i) seek internal growth through proactive asset management, leasing, building services and property management oversight; (ii) target accretive acquisitions and developments of MOBs in markets with attractive demographics that complement our existing portfolio; and (iii) actively manage our balance sheet to maintain flexibility with conservative leverage. Additionally, from time to time we consider, on an opportunistic basis, significant portfolio acquisitions that we believe fit our core business and we expect to enhance our existing portfolio.

Merger with Healthcare Realty Trust Incorporated

On February 28, 2022, Healthcare Trust of America, Inc. (the “Company”), a Maryland corporation, Healthcare Trust of America Holdings, LP, a Delaware limited partnership (the “Company OP”) of which the Company is the sole general partner, HR Acquisition 2, LLC, a Maryland limited liability company and a direct, wholly owned subsidiary of the Company (“Merger Sub”), and Healthcare Realty Trust Incorporated, a Maryland corporation (“HR”), entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”). Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into HR, with HR surviving the merger (the “Merger”).

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time, each outstanding share of Common Stock, $0.01 par value per share, of HR (“HR Common Stock”) will be converted into the right to receive 1.0 (the “Exchange Ratio”) share of Class A Common Stock, $0.01 par value per share, of the Company (“Company Common Stock” and, such consideration, the “Merger Consideration”). Subject to the closing of the Merger and the other transactions contemplated therein, the holders of shares of Company Common Stock issued and outstanding on the last business day prior to the closing date of the Merger will receive a special distribution in the amount of $4.82 in cash per share of Company Common Stock held on such date (the “Special Distribution Payment”).

Once the conditions to close the Merger have been satisfied or waived, the Merger Agreement requires HR and the Company to exchange irrevocable certifications that all such closing conditions have been satisfied or waived. At such time, the Company OP will transfer or cause the transfer, on the business day before the effective time, to HR or its designees certain of the Company OP’s assets as specified by HR for a cash purchase price equal to the reasonably equivalent fair market value of the assets transferred. To the extent the net proceeds to the Company of the asset transfer or joint venture transactions relating to such assets are insufficient to pay the full amount of the Special Distribution Payment, the Merger Agreement requires the Company to utilize new financing to fund the balance of the Special Distribution Payment. The Company has obtained a commitment letter from JPMorgan Chase Bank, N.A. for a $1.7 billion bridge financing facility. HTA and HR have received letters of intent from, and are in advanced negotiations with, 3 institutional investors for a combination of joint ventures and asset sales totaling $1.7 billion at a weighted average cap rate of approximately 4.8%. Net proceeds from these transactions are expected to be approximately $1.6 billion. The transactions may occur in separate tranches, with the initial transactions targeted to close prior to the vote on the contemplated Merger by HR and HTA stockholders and the remainder to be completed on or around the closing date of the contemplated Merger. These transactions are subject to execution of definitive documentation and customary closing conditions. In addition, HTA and HR have secured initial commitments for amended and restated credit facilities, including the following: (i) a $1.5 billion revolving credit facility; (ii) $1.5 billion of term loans, including $650 million of new capacity; and (iii) a $1.1 billion asset sale term loan to replace the transaction bridge loan commitment and to backstop the $1.1 billion special dividend to HTA stockholders, if needed, depending on the timing of asset sales and joint ventures.

Additionally, on May 2, 2022, HTA and HR filed a Form S-4 Registration Statement with the SEC in connection with the contemplated Merger. Please review this Form S-4 for more information about the contemplated Merger.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Merger Agreement contains customary representations, warranties and covenants by each party. The Merger is subject to certain conditions which are set forth in the Merger Agreement, including the approval of both companies’ stockholders. The boards of directors of the Company and HR have unanimously approved the Merger Agreement. The Merger is expected to close during the third quarter of 2022.

COVID-19 Pandemic

On March 11, 2020 the novel coronavirus disease (“COVID-19”) was declared a pandemic by the World Health Organization. As the virus continued to spread throughout the United States and other countries across the world, Federal, state and local governments took various actions including the issuance of “stay-at-home” orders, social distancing guidelines and ordering the temporary closure of non-essential businesses to limit the spread of COVID-19. While many businesses have reopened and vaccinations are becoming more widely available to the general population, the economic uncertainty created by the COVID-19 pandemic continue to present risks to the Company and the future results of our operations. ~~Should~~Although we did not experience significant disruptions from the COVID-19 pandemic during the three months ended March 31, 2022, should current and planned measures, including further development and delivery of vaccines and other measures intended to reduce or eliminate the spread of COVID-19, past and/or proposed economic stimulus, and other laws, acts and orders proposed or enacted by these various governmental agencies ultimately not be successful or limited in their efficacy, our business and the broader real estate industry may experience significant adverse consequences. These consequences include loss of revenues, increased expenses, increased costs of materials, difficulty in maintaining an active workforce, and constraints on our ability to secure capital or financing, among other factors.

2. Summary of Significant Accounting Policies

The summary of significant accounting policies presented below is designed to assist in understanding our condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles in the U.S. (“GAAP”) in all material respects and have been consistently applied in preparing our accompanying condensed consolidated financial statements.

Basis of Presentation

Our accompanying condensed consolidated financial statements include our accounts and those of our subsidiaries and any consolidated variable interest entities (“VIEs”). All inter-company balances and transactions have been eliminated in the accompanying condensed consolidated financial statements. .

Interim Unaudited Financial Data

Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements (i) do not include all information and footnotes required by GAAP for complete financial ~~statements. Our accompanying condensed consolidated financial~~ statements, and (ii) reflect all adjustments, which are, in our opinion, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such results may be less favorable for the full year. Our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our ~~2020~~2021 Annual Report on Form 10-K.

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~~HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)~~

Principles of Consolidation

The condensed consolidated financial statements include the accounts of our subsidiaries and consolidated joint venture arrangements. The portions of the HTALP operating partnership not owned by us are presented as non-controlling interests on the accompanying condensed consolidated balance sheets and statements of operations, condensed consolidated statements of comprehensive income, and condensed consolidated statements of equity and changes in partners’ capital. Holders of OP Units are considered to be non-controlling interest holders in HTALP and their ownership interests are reflected as equity on the accompanying condensed consolidated balance sheets. Further, a portion of the earnings and losses of HTALP are allocated to non-controlling interest holders based on their respective ownership percentages. Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity. As of ~~June 30, 2021~~both March 31, 2022 and December 31, ~~2020,~~2021, there were approximately ~~3.5~~4.1 million of OP Units issued and outstanding held by non-controlling interest holders.

VIEs are entities where investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or where equity investors, as a group, lack one of the following: (i) the power to direct the activities that most significantly impact the entity’s economic performance; (ii) the obligation to absorb the expected losses of the entity; and (iii) the right to receive the expected returns of the entity. We consolidate our investment in VIEs when we determine that we are the primary beneficiary. A primary beneficiary is one that has both: (i) the power to direct the activities

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

of the VIE that most significantly impacts the entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. The HTALP operating partnership and our other joint venture arrangements are VIEs because the limited partners in those partnerships, although entitled to vote on certain matters, do not possess kick-out rights or substantive participating rights. Additionally, we determined that we are the primary beneficiary of our VIEs. Accordingly, we consolidate our interests in the HTALP operating partnership and in our other joint venture arrangements. However, because we hold what is deemed a majority voting interest in the HTALP operating partnership and our other joint venture arrangements, it qualifies for the exemption from providing certain disclosure requirements associated with investments in VIEs.

In addition, from time to time, the Company acquires properties using a like-kind exchange structure pursuant to Section 1031 of the Internal Revenue Code (a “1031 exchange”) and, as such, the proceeds from a property or portfolio disposition are in the possession of an Exchange Accommodation Titleholder (“EAT”) until the 1031 exchange is completed. The EAT is classified as a VIE as it is a “thinly capitalized” entity. The Company consolidates the EAT because we are the primary beneficiary as we have the ability to control the activities that most significantly impact the EAT’s economic performance and can close out the 1031 exchange structure at any time. As of June 30, 2021, the Company had 1 such entity where the 1031 exchange had not completed. We will evaluate on an ongoing basis the need to consolidate entities based on the standards set forth in GAAP as described above.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that effect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent asset and liabilities. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in adverse ways, and those estimates could be different under different assumptions or conditions.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents consist of all highly liquid investments with a maturity of three months or less when purchased. Restricted cash is typically comprised of: (i) reserve accounts for property taxes, insurance, capital and tenant improvements; (ii) collateral accounts for debt and interest rate swaps; (iii) 1031 exchange funds; and (iv) deposits for future investments.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets to the combined amounts shown on the accompanying condensed consolidated statements of cash flows (in thousands):
June 30,
2021 2020
Cash and cash equivalents $ 19,796 $ 75,202
Restricted cash 70,542 4,798
Total cash, cash equivalents and restricted cash $ 90,338 $ 80,000

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~~HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)~~


	March 31,
	2022		2021
Cash and cash equivalents	$	10,944	$	29,990
Restricted cash	4,478		3,096
Total cash, cash equivalents and restricted cash	$	15,422	$	33,086

Revenue Recognition

Minimum annual rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). Differences between rental income recognized and amounts contractually due under the lease agreements are recorded as straight-line rent receivables. Tenant reimbursements, which is comprised of additional amounts recoverable from tenants for real estate taxes, common area maintenance and other certain operating expenses are recognized as revenue on a gross basis in the period in which the related recoverable expenses are incurred. We accrue revenue corresponding to these expenses on a quarterly basis to adjust recorded amounts to our best estimate of the final annual amounts to be billed. Subsequent to year-end, on a calendar year basis, we perform reconciliations on a lease-by-lease basis and bill or credit each tenant for any differences between the estimated expenses we billed and the actual expenses that were incurred. We recognize lease termination fees when there is a signed termination letter agreement, all of the conditions of the agreement have been met, and the tenant is no longer occupying the property. Rental income is reported net of amortization of inducements.

The revenue recognition process is based on a five-step model to account for revenue arising from contracts with customers as outlined in Topic 606. We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We have identified all of our revenue streams and we have concluded that rental income from leasing arrangements represents a substantial portion of our revenue and is governed and evaluated with the adoption of Topic 842.

Investments in Real Estate

Depreciation expense of buildings and improvements for the three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ was ~~$60.7~~$62.3 million and ~~$58.2 million, respectively. Depreciation expense of buildings and improvements for the six months ended June 30, 2021 and 2020 was $121.9 million and $117.1~~$61.2 million, respectively.

Leases

As a lessor, we lease space in our MOBs primarily to medical enterprises for terms generally ranging from three to seven years in length. The assets underlying these leases consist of buildings and associated land which are included as real estate investments on our accompanying condensed consolidated balance sheets. All of our leases for which we are the lessor are classified as operating leases under Topic 842.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Leases, for which we are the lessee, are classified as separate components on our accompanying condensed consolidated balance sheets. Operating leases are included as right-of-use (“ROU”) assets - operating leases, net, with a corresponding lease liability. Financing lease assets are included in receivables and other assets, net, with a corresponding lease liability in security deposits, prepaid rent and other liabilities. A lease liability is recognized for our obligation related to the lease and an ROU asset represents our right to use the underlying asset over the lease term. Refer to Note 7 - Leases in the accompanying notes to the condensed consolidated financial statements for more detail relating to our leases.

Through the duration of the coronavirus (“COVID-19”) pandemic, changes to our leases as a result of COVID-19 have been in two categories. Leases are categorized based upon the impact of the modification on its cash flows. One category is rent deferrals for which the guidance provided by the Lease Modification Q&A issued by the Financial Accounting Standards Board (“FASB”) in April 2020 was utilized, which provided relief from requiring a lease by lease analysis pursuant to Topic 842. These deferrals are generally for up to three months of rent with a payback period from ~~three~~ to twelve months once the deferral period has ended. Deferrals do not have an impact on cash flows over the lease term, rather, payments are made in different periods while the cash flows for the entirety of the lease term are the same. However, we have continued to recognize revenue and straight line revenue for amounts subject to deferral agreements in accordance with Topic 842. In 2020, which is the period that we believe constituted the majority of our COVID-related deferral requests, we approved deferral plans totaling approximately $11.1 million, of which approximately $10.2 million have been repaid through June 30, 2021.

The second category is early renewals, where the Company renewed lease arrangements prior to their contractual expirations, providing concessions at the commencement of the lease in exchange for additional term, which additional term averages approximately three years. This category is treated as a modification under Topic 842, with the existing balance of the cumulative difference between rental income and payment amounts (existing straight line rent receivable) being recast over the new term, factoring in any changes attributable to the new lease arrangement and for which we performed a lease by lease analysis. Cash flows are impacted over the long term as customary free rent, at an average of three months in conjunction with these agreements, and is offset by more term and/or increased rental rates. For the six months ended June 30, 2021, the Company has entered into very few new deferral arrangements or early renewal leases with substantive amounts of free rent or other forms of concessions at the onset of the lease term.

The Lease Modification Q&A had no material impact on our condensed consolidated financial statements as of and for the six months ended June 30, 2021, however, its future impact to us is dependent upon the extent of lease concessions granted to tenants as a result of the COVID-19 pandemic in future periods and the elections made by us at the time of entering into any such concessions.

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~~HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)~~

Real Estate Held for Sale

We consider properties held for sale once management commits to a plan to sell the property and has determined that the sale is probable and expected to occur within one year. Upon classification as held for sale, we record the property at the lower of its carrying amount or fair value, less costs to sell, and cease depreciation and amortization. The fair value is generally based on a discounted cash flow analysis, which involves management's best estimate of market participants' holding periods, market comparables, future occupancy levels, rental rates, capitalization rates, lease-up periods and capital requirements. As of ~~June 30, 2021 and December~~March 31, ~~2020,~~2022, the Company had 0no properties classified as held for sale. As of December 31, 2021, the Company had 1 property classified as held for sale.

Real Estate Notes Receivable

Real estate notes receivable consists of mezzanine and other real estate loans, which are generally collateralized by a pledge of the borrower’s ownership interest in the respective real estate owner and/or corporate guarantees. Real estate notes receivable are intended to be held-to-maturity and are recorded at amortized cost, net of unamortized loan origination costs and fees and allowance for credit losses. As of March 31, 2022, real estate notes receivable, net totaled $72.7 million. During the three months ended March 31, 2022, we recognized interest income of $1.6 million related to real estate note receivable.

The following table summarizes real estate notes receivable as of March 31, 2022 (in thousands):


			Stated Interest Rate		Maximum Loan Commitment		Outstanding Loan Amount
	Origination Date	Maturity Date					March 31, 2022
Mezzanine Loans - Texas (1)	6/24/2021	6/24/2024	8	%	$	54,119	$	52,662
Mezzanine Loan - North Carolina	12/22/2021	12/22/2024	8	%	6,000		6,000
Mortgage Loan - Texas	6/30/2021	7/1/2022	10	%	15,000		15,000
							73,662
Accrued interest receivable							159
Unamortized fees and costs							(762)
Unearned revenue							(358)
							$	72,701

(1) Interest on these mezzanine loans is accrued and funded utilizing interest reserves, which is included in the maximum loan commitment, and such accrued interest is added to the note receivable balance.

Pursuant to Topic 326 - Financial Instruments - Credit Losses, we adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under Topic 326. ~~Given management’s estimated~~We utilize a probability of default ~~at inception, we~~method approach for estimating current expected credit losses and have determined that the current risk of credit loss is remote. Accordingly, we have recorded 0no reserve for credit loss as of ~~June 30, 2021.~~March 31, 2022.

Unconsolidated Joint Ventures

We account for our investments in unconsolidated joint ventures using the equity method of accounting because we have the ability to exercise significant influence, but not control, over the financial and operational policy decisions of the investments. Using the equity method of accounting, the initial investment is recognized at cost and subsequently adjusted for our share of the net income and any distributions from the joint venture. As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, we had a 50% interest in one such investment with a carrying value and maximum exposure to risk of ~~$63.6~~$62.5 million and ~~$64.4~~$62.8 million, respectively, which is recorded in investment in unconsolidated joint venture on the accompanying condensed consolidated balance sheets. We record our share of net income in income from unconsolidated joint venture on the accompanying condensed consolidated statements of operations. For each of the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ we recognized income of $0.4 million. ~~For each~~

Table of ~~the six months ended June 30, 2021 and 2020, we recognized income of $0.8 million.~~Contents

HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Recently Issued or Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

~~S-X Rule 13-01~~ASU 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments

In ~~March 2020,~~July 2021, the ~~SEC~~FASB issued ASU 2021-05, which amends the lease classification requirements for lessors when classifying and accounting for a lease with variable lease payments that do not depend on a reference index or a rate. The update provides criteria, that if met, the lease would be classified and accounted for as an operating lease. The update is effective for reporting periods beginning after December 15, 2021, with early adoption permitted. We adopted ~~amendments to Rule 3-10~~ASU 2021-05 effective as of ~~Regulation S-X and created Rule 13-01 to simplify disclosure requirements related to certain registered securities.~~January 1, 2022. The ~~rule became effective on January 4, 2021, at which time we adopted S-X Rule 13-01. The~~ adoption of this standard did not have a material ~~effect~~impact on our financial ~~statements and related footnotes.~~statements.

Recently Issued Accounting Pronouncements

ASU 2021-01, Reference Rate Reform (Topic 848)

In January 2021, the FASB issued ASU 2021-01, which amends the scope of ASU 2020-04. The amendments of ASU 2021-01 clarify that certain optional expedients and exceptions to Topic 848 for contract modification and hedge accounting apply to derivatives that are affected by the discounting transition. For information related to the Company's current cash flow hedges, refer to Note 9 - Derivative Financial Instruments and Hedging Activities. The amendments are elective and effective immediately for contract modifications made through December 31, 2022. The Company is evaluating how the transition away from LIBOR will effect the Company and if the guidance inwith respect to this standard will be adopted, however, if adopted, we do not expect that this ASU will have a material impact on our financial statements.

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3. Investments in Real Estate

For the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, our investments had an aggregate purchase price of ~~$53.0~~$19.1 million. As part of these investments, we incurred approximately ~~$0.5~~$0.1 million of capitalized costs. The allocations for these investments, in which we own a controlling financial interest, are set forth below in the aggregate for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


		Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020			2022		2021
Land	Land	$	1,093	$	2,817	Land	$	3,812	$	1,093
Building and improvements	Building and improvements	45,629		35,259		Building and improvements	13,189		26,819
In place leases	In place leases	5,291		3,621		In place leases	2,121		3,449
Below market leases	Below market leases	(79)		(693)		Below market leases	(28)		(79)
Above market leases	Above market leases	66		334		Above market leases	—		66
ROU assets	ROU assets	(1,372)		0		ROU assets	—		(876)
Net real estate assets acquired	Net real estate assets acquired	50,628		41,338		Net real estate assets acquired	19,094		30,472
Other, net	Other, net	2,397		334		Other, net	—		2,397
Aggregate purchase price	Aggregate purchase price	$	53,025	$	41,672	Aggregate purchase price	$	19,094	$	32,869

The acquired intangible assets and liabilities referenced above had weighted average lives of the following terms for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in years):


		Six Months Ended June 30,			Three Months Ended March 31,
		2021	2020		2022	2021
Acquired intangible assets	Acquired intangible assets	4.2	5.4	Acquired intangible assets	4.4	6.4
Acquired intangible liabilities	Acquired intangible liabilities	5.7	3.6	Acquired intangible liabilities	4.3	5.7

4. Dispositions and Impairment

Dispositions

During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, we ~~sold~~closed the sale of a ~~13 property portfolio with locations~~tenant purchase option on 1 of our MOBs located in ~~Tennessee and Virginia~~Georgia for a gross sales price of ~~$67.5~~$26.8 million, resulting in a net ~~gain~~loss to us of approximately ~~$32.8 million.~~$4 thousand. During the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, we ~~sold part of our interest in undeveloped land in Miami, Florida for a gross sales price of $7.6 million, resulting in a net gain to us of approximately $2.0 million.~~had no dispositions.

Impairment

During the ~~six~~three months ended ~~June 30,~~March 31, 2022, and 2021, we recorded no impairment charges of $16.8 million on 2 properties, for which the holding period was revised by the Company to be less than the previously estimated useful life. The estimated fair values were based on a purchase option and a pending sales agreement, both of which were executed subsequent to June 30, 2021. We recorded 0 impairment charges during the six months ended June 30, 2020.charges.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

5. Intangible Assets and Liabilities

Intangible assets and liabilities consisted of the following as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively (in thousands, except with respect to the weighted average remaining amortization terms):


		June 30, 2021			December 31, 2020				March 31, 2022			December 31, 2021
		Balance		Weighted Average Remaining Amortization in Years	Balance		Weighted Average Remaining Amortization in Years		Balance		Weighted Average Remaining Amortization in Years	Balance		Weighted Average Remaining Amortization in Years
Assets:	Assets:							Assets:
In place leases	In place leases	$	477,562	9.6	$	483,779	9.7	In place leases	$	341,978	9.3	$	349,863	9.3
Tenant relationships	Tenant relationships	140,169		10.4	144,842		10.0	Tenant relationships	51,778		10.9	54,851		10.8
Above market leases	Above market leases	37,093		6.4	37,876		5.8	Above market leases	20,824		6.8	21,537		6.9
		654,824			666,497				414,580			426,251
Accumulated amortization	Accumulated amortization	(436,330)			(427,937)			Accumulated amortization	(211,034)			(213,801)
Total	Total	$	218,494	9.6	$	238,560	9.6	Total	$	203,546	9.3	$	212,450	9.3

Liabilities:	Liabilities:							Liabilities:
Below market leases	Below market leases	$	61,951	14.8	$	61,896	14.6	Below market leases	$	54,040	14.5	$	55,073	14.3
Accumulated amortization	Accumulated amortization	(31,992)			(29,357)			Accumulated amortization	(24,039)			(23,742)
Total	Total	$	29,959	14.8	$	32,539	14.6	Total	$	30,001	14.5	$	31,331	14.3

The following is a summary of the net intangible amortization for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Amortization recorded against rental income related to above and (below) market leases	Amortization recorded against rental income related to above and (below) market leases	$	(641)	$	(751)	$	(1,233)	$	(2,719)	Amortization recorded against rental income related to above and (below) market leases	$	(649)	$	(591)
Amortization expense related to in place leases and tenant relationships	Amortization expense related to in place leases and tenant relationships	11,340		13,438		23,227		29,373		Amortization expense related to in place leases and tenant relationships	10,315		11,886

6. Receivables and Other Assets

Receivables and other assets consisted of the following as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Tenant receivables, net	Tenant receivables, net	$	9,966	$	17,717	Tenant receivables, net	$	3,009	$	10,477
Other receivables, net	Other receivables, net	5,118		6,243		Other receivables, net	7,402		6,098
Deferred financing costs, net	Deferred financing costs, net	1,724		2,586		Deferred financing costs, net	11,057		7,055
Deferred leasing costs, net	Deferred leasing costs, net	42,505		43,234		Deferred leasing costs, net	47,612		45,008
Straight-line rent receivables, net	Straight-line rent receivables, net	134,806		128,070		Straight-line rent receivables, net	146,378		142,604
Prepaid expenses, deposits, equipment and other, net	Prepaid expenses, deposits, equipment and other, net	38,755		46,114		Prepaid expenses, deposits, equipment and other, net	42,734		38,301

Derivative financial instruments - interest rate swaps						Derivative financial instruments - interest rate swaps	3,692		—
Real estate notes receivable, net	Real estate notes receivable, net	46,341		0		Real estate notes receivable, net	72,701		69,114
Finance ROU asset, net	Finance ROU asset, net	15,335		7,764		Finance ROU asset, net	16,196		16,284

Total	Total	$	294,550	$	251,728	Total	$	350,781	$	334,941

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following is a summary of the amortization of deferred leasing costs and financing costs for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Amortization expense related to deferred leasing costs	Amortization expense related to deferred leasing costs	$	2,204	$	2,113	$	4,427	$	4,009	Amortization expense related to deferred leasing costs	$	2,227	$	2,223
Interest expense related to deferred financing costs	Interest expense related to deferred financing costs	431		431		862		862		Interest expense related to deferred financing costs	1,353		431

7. Leases

For the three months ended ~~June 30, 2021,~~March 31, 2022, we added 1 new ~~ground~~office lease ~~has commenced. Based on our analysis, we concluded~~ that ~~its classification was as a finance lease. Additionally, we sold a portfolio of properties resulting~~commences in ~~the removal of 8 of our in-place operating ground leases. For more details on the disposition, refer to Note 4 - Dispositions and Impairment.~~April 2022.

Lessee - Maturity of Lease Liabilities

The following table summarizes the future minimum lease obligations of our operating and finance leases as of ~~June 30, 2021~~March 31, 2022 (in thousands):


Year	Year	Operating Leases		Finance Leases		Year	Operating Leases		Finance Leases
2021		$	5,304	$	277
2022	2022	10,797		558		2022	$	8,028	$	473
2023	2023	10,934		563		2023	10,846		635
2024	2024	10,277		568		2024	10,370		640
2025	2025	9,764		573		2025	9,857		645
2026	2026	9,766		584		2026	9,860		656
2027						2027	9,845		668
Thereafter	Thereafter	606,467		35,797		Thereafter	590,018		36,856
Total undiscounted lease payments	Total undiscounted lease payments	$	663,309	$	38,920	Total undiscounted lease payments	$	648,824	$	40,573
Less: Interest	Less: Interest	(468,099)		(23,468)		Less: Interest	(452,598)		(23,665)
Present value of lease liabilities	Present value of lease liabilities	$	195,210	$	15,452	Present value of lease liabilities	$	196,226	$	16,908

Lessor - Lease Revenues and Maturity of Future Minimum Rents

For the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ we recognized ~~$187.4~~$199.3 million and ~~$176.2~~$190.4 million, respectively, of rental and other lease-related income related to our operating leases, of which ~~$42.2~~$48.1 million and $41.8 million, respectively, were variable lease payments. For the six months ended June 30, 2021, and 2020, we recognized $377.8 million and $360.5 million, respectively, of rental and other lease-related income related to our operating leases, of which $87.3 million and $84.6$45.1 million, respectively, were variable lease payments.

The following table summarizes the future minimum rent contractually due under operating leases, excluding tenant reimbursements of certain costs, as of ~~June 30, 2021~~March 31, 2022 (in thousands):


Year	Year	Amount		Year	Amount
2021		$	275,454
2022	2022	529,289		2022	$	432,329
2023	2023	475,792		2023	537,159
2024	2024	419,934		2024	479,252
2025	2025	366,142		2025	418,300
2026	2026	317,544		2026	369,927
2027				2027	301,521
Thereafter	Thereafter	1,183,342		Thereafter	1,044,334
Total	Total	$	3,567,497	Total	$	3,582,822

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

8. Debt

Debt consisted of the following as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively (in thousands):


		June 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Unsecured revolving credit facility	Unsecured revolving credit facility	$	45,000	$	0	Unsecured revolving credit facility	$	25,000	$	—
Unsecured term loans	Unsecured term loans	500,000		500,000		Unsecured term loans	500,000		500,000
Unsecured senior notes	Unsecured senior notes	2,550,000		2,550,000		Unsecured senior notes	2,550,000		2,550,000
Fixed rate mortgages	Fixed rate mortgages	0		0		Fixed rate mortgages	—		—
		$	3,095,000	$	3,050,000		$	3,075,000	$	3,050,000
Deferred financing costs, net	Deferred financing costs, net	(17,661)		(19,157)		Deferred financing costs, net	(17,199)		(17,975)
Premium, net		(3,874)		(3,844)
Discount, net						Discount, net	(3,917)		(3,903)
Total	Total	$	3,073,465	$	3,026,999	Total	$	3,053,884	$	3,028,122

Unsecured Credit Agreement

Unsecured Revolving Credit Facility due ~~2022~~2025

~~Our~~On October 6, 2021, we entered into a third amended and restated ~~$1.3 billion unsecured~~revolving credit and term loan agreement (the ~~“Unsecured Credit~~“Credit Agreement”), which includes an unsecured revolving credit facility in an aggregate maximum principal amount of $1.0 billion ~~maturing on June 30, 2022,~~(the “Revolver”) and a term loan facility in an aggregate maximum principal amount of $300.0 million (the “Term Loan”). The Credit Agreement extended the maturities of the unsecured revolving credit facility and the unsecured term loan ~~of $300.0 million maturing on February 1, 2023.~~to October 31, 2025. The maximum principal amount of the Unsecured Credit Agreement may be increased by up to $750.0 million, subject to certain conditions, for a total principal amount of $2.05 ~~billion if so increased.~~

billion. Borrowings under the ~~unsecured revolving credit facility accrue~~Revolver bear interest at a per annum rate equal to ~~adjusted~~ LIBOR plus a margin ranging from ~~0.83%~~0.725% to ~~1.55% per annum~~1.40% based on our credit rating. We are also required to pay a facility fee ~~ranging from 0.13% to 0.30% per annum~~ on the aggregate commitments under the ~~unsecured revolving~~Revolver at a per annum rate ranging from 0.125% to 0.30% based on our credit ~~facility.~~rating. We incurred financing costs of $6.2 million in relation to the credit facility, which are being amortized through the maturity date. As of ~~June 30, 2021,~~March 31, 2022, we had ~~$45.0~~$25.0 million outstanding under this unsecured revolving credit ~~facility at an interest rate of 1.13% per annum.~~facility. The margin associated with our borrowings was ~~1.00%~~0.85% per annum and the facility fee was 0.20% per annum.

Unsecured Term Loan due ~~2023~~2025

Under the Unsecured Credit Agreement as noted above, we have a $300.0 million unsecured term loan, guaranteed by HTA, with a maturity date of ~~February 1, 2023.~~October 31, 2025. Borrowings under this unsecured term loan ~~accrue~~bear interest at a per annum rate equal to ~~adjusted~~ LIBOR, plus a margin ranging from ~~0.90%~~0.80% to ~~1.75%~~1.60% per annum based on our credit rating. The margin associated with our borrowings as of ~~June 30, 2021~~March 31, 2022 was ~~1.10%~~0.95% per annum. We incurred financing costs of $1.8 million in relation to the unsecured term loan, which are being amortized through the maturity date. We have interest rate swaps hedging the floating interest rate, which resulted in a fixed rate of ~~2.52%~~2.37% per annum, based on our current credit rating. The current hedging arrangement matures on February 1, 2023. As of ~~June 30, 2021,~~March 31, 2022, we had $300.0 million under this unsecured term loan outstanding.

$200.0 Million Unsecured Term Loan due 2024

In 2018, HTALP entered into a modification of our $200.0 million unsecured term loan previously due in 2023. The modification decreased pricing at our current credit rating by 65 basis points and extended the maturity date to January 15, 2024. The other material terms of the unsecured term loan prior to the modification remained substantially unchanged. Borrowings under the unsecured term loan accrue interest at a rate equal to LIBOR, plus a margin ranging from 0.75% to 1.65% per annum based on our credit rating. The margin associated with our borrowings as of ~~June 30, 2021~~March 31, 2022 was 1.00% per annum. ~~We have~~HTALP had interest rate swaps ~~hedging~~on the ~~floating index rate,~~balance, which resulted in a fixed interest rate at 2.32% per ~~annum, based on our current credit rating.~~annum. As of ~~June 30, 2021,~~March 31, 2022, we had $200.0 million under this unsecured term loan outstanding. ~~This loan matures on January 15, 2024.~~

$600.0 Million Unsecured Senior Notes due 2026

In September 2019, in connection with the $650.0 million unsecured senior notes due 2030 referenced below, HTALP issued $250.0 million as additional unsecured senior notes to the $350.0 million aggregate principal of senior notes issued on July 12, 2016, all of which are guaranteed by HTA. These unsecured senior notes are registered under the Securities Act, and bear interest at 3.50% per annum which is payable semi-annually. Additionally, these unsecured senior notes were offered at 103.66% and 99.72%, respectively, of the principal amount thereof, with an effective yield to maturity of 2.89% and 3.53% per annum, respectively. As of ~~June 30, 2021,~~March 31, 2022, we had $600.0 million of these unsecured senior notes outstanding that mature on August 1, 2026.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

$500.0 Million Unsecured Senior Notes due 2027

In 2017, HTALP issued $500.0 million of unsecured senior notes that are guaranteed by HTA. These unsecured senior notes are registered under the Securities Act, and bear interest at 3.75% per annum which is payable semi-annually. Additionally, these unsecured senior notes were offered at 99.49% of the principal amount thereof, with an effective yield to maturity of 3.81% per annum. As of ~~June 30, 2021,~~March 31, 2022, we had $500.0 million of these unsecured senior notes outstanding that mature on July 1, 2027.

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~~HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)~~

$650.0 million Unsecured Senior Notes due 2030

In September 2019, in connection with the $250.0 million additional unsecured senior notes due 2026 referenced above, HTALP issued $650.0 million of unsecured senior notes that are guaranteed by HTA. These unsecured senior notes are registered under the Securities Act, and bear interest at 3.10% per annum which is payable semi-annually. Additionally, these unsecured senior notes were offered at 99.66% of the principal amount thereof, with an effective yield to maturity of 3.14% per annum. Proceeds from the issuance of $900.0 million of these notes were used, in part, to redeem a total of $700.0 million of unsecured senior notes. During the year ended December 31, 2019, the make-whole fees required per the terms of the indenture agreements upon our calling the notes totaling $18.3 million was recorded in loss on extinguishment of debt in the accompanying consolidated statements of operations. As of ~~June 30, 2021, we~~March 31, 2022, HTALP had $650.0 million of these unsecured senior notes outstanding that mature on February 15, 2030.

$800.0 million Unsecured Senior Notes due 2031

In September 2020, HTALP issued $800.0 million of unsecured senior notes that are guaranteed by HTA. These unsecured senior notes are registered under the Securities Act, and bear interest at 2.00% per annum which is payable semi-annually. Additionally, these unsecured senior notes were offered at 99.20% of the principal amount thereof, with an effective yield to maturity of 2.09% per annum. We incurred financing costs of $6.8 million in relation to this transaction, which are being amortized through the maturity date. Proceeds from the issuance of these unsecured notes were used, in part, to redeem $300.0 million of unsecured senior notes. During the year ended December 31, 2020, the make-whole fee that was required per the terms of the indenture agreement upon our calling the notes of $24.7 million was recorded in loss on extinguishment of debt in the accompanying consolidated statements of operations. As of ~~June 30, 2021,~~March 31, 2022, we had $800.0 million of these unsecured senior notes outstanding that mature on March 15, 2031.

Future Debt Maturities

The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as of ~~June 30, 2021~~March 31, 2022 (in thousands):


Year	Year	Amount		Year	Amount
2021		$	0
2022	2022	45,000		2022	$	—
2023	2023	300,000		2023	—
2024	2024	200,000		2024	200,000
2025	2025	0		2025	325,000
2026				2026	600,000
Thereafter	Thereafter	2,550,000		Thereafter	1,950,000
Total	Total	$	3,095,000	Total	$	3,075,000

Deferred Financing Costs

As part of the $1.7 billion bridge financing commitment secured in connection with the pending Merger with HR as further described in Note 1 - Organization and Description of Business, we incurred commitment fees of approximately $5.4 million, which are being amortized through the commitment expiration date of September 2, 2022.

As of ~~June 30, 2021,~~March 31, 2022, the future amortization of our deferred financing costs is as follows (in thousands):


Year	Year	Amount		Year	Amount
2021		$	1,496
2022	2022	2,993		2022	$	2,330
2023	2023	2,497		2023	3,106
2024	2024	2,104		2024	2,724
2025	2025	2,092		2025	2,603
2026				2026	1,839
Thereafter	Thereafter	6,479		Thereafter	4,597
Total	Total	$	17,661	Total	$	17,199

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Debt Covenants

We are required by the terms of our applicable loan agreements to meet various affirmative and negative covenants that we believe are customary for these types of facilities, such as limitations on the incurrence of debt by us and our subsidiaries that own unencumbered assets, limitations on the nature of HTALP’s business, and limitations on distributions by HTALP and its subsidiaries that own unencumbered assets. Our loan agreements also impose various financial covenants on us, such as a maximum ratio of total indebtedness to total asset value, a minimum ratio of EBITDA to fixed charges, a minimum tangible net worth covenant, a maximum ratio of unsecured indebtedness to unencumbered asset value, rent coverage ratios and a minimum ratio of unencumbered Net Operating Income ~~(“NOI”)~~ to unsecured interest expense. As of ~~June 30, 2021,~~March 31, 2022, we believe that we were in compliance with all such financial covenants and reporting requirements. In addition, certain of our loan agreements include events of default provisions that we believe are customary for these types of facilities, including restricting us from making dividend distributions to our stockholders in the event we are in default thereunder, except to the extent necessary for us to maintain our REIT status. We have also concluded as of ~~June 30, 2021~~March 31, 2022, that we were not aware of non-compliance with any of our financial or non-financial covenants in light of the ongoing COVID-19 pandemic.

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9. Derivative Financial Instruments and Hedging Activities

Risk Management Objective of Using Derivative Financial Instruments

We may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure as well as to hedge specific anticipated transactions. We do not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, we only enter into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which we and our affiliates may also have other financial relationships. We do not anticipate that any of the counterparties will fail to meet their obligations. We record counterparty credit risk valuation adjustments on interest rate swap derivative assets in order to properly reflect the credit quality of the counterparty. In addition, the fair value of derivative financial instruments designated as cash flow hedges are adjusted to reflect the impact of our credit quality.

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps and treasury locks as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable rate amounts from a counterparty in exchange for us making fixed rate payments over the life of the agreements without an exchange of the underlying notional amount. A treasury lock is a synthetic forward sale of a U.S. treasury note, which is settled in cash based upon the difference between an agreed upon treasury rate and the prevailing treasury rate at settlement. Such treasury locks are entered into to effectively fix the treasury component of an upcoming debt issuance.

Amounts reported in accumulated other comprehensive income in the accompanying condensed consolidated balance sheets related to derivatives will be reclassified to interest expense as interest payments are made on our variable rate debt. During the next twelve months, we estimate that an additional ~~$6.6~~$1.2 million will be reclassified from other comprehensive income in the accompanying condensed consolidated balance sheets as an increase to interest related to derivative financial instruments in the accompanying condensed consolidated statements of operations.

As of ~~June 30, 2021,~~March 31, 2022, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (in thousands, except number of instruments):


Interest Rate Swaps	~~June 30, 2021~~March 31, 2022
Number of instruments	7
Notional amount	$	500,000

The table below presents the fair value of our derivative financial instruments designated as cash flow hedges as well as the classification in the accompanying condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively (in thousands):
Asset Derivatives Liability Derivatives
Fair Value at: Fair Value at:
Derivatives Designated as Hedging Instruments: Balance Sheet
Location June 30, 2021 December 31, 2020 Balance Sheet
Location June 30, 2021 December 31, 2020
Interest rate swaps Receivables and other assets $ 0 $ 0 Derivative financial instruments $ 10,755 $ 14,957

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Asset Derivatives

Liability Derivatives

Fair Value at:

Derivatives Designated as Hedging Instruments:

Balance Sheet
Location

March 31, 2022

December 31, 2021

Balance Sheet
Location

March 31, 2022

December 31, 2021

Interest rate swaps

Receivables and other assets

3,692

—

Derivative financial instruments

—

5,069

The table below presents the gain or loss recognized on our derivative financial instruments designated as cash flow hedges as well as the classification in the accompanying condensed consolidated statements of operations for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


			Three Months Ended June 30,				Six Months Ended June 30,						Three Months Ended March 31,
Effect of Derivative Instruments	Effect of Derivative Instruments	Location in Statement of Operations and Comprehensive Income (Loss)	2021		2020		2021		2020		Effect of Derivative Instruments	Location in Statement of Operations and Comprehensive Income (Loss)	2022		2021
Gain (loss) recognized in OCI	Gain (loss) recognized in OCI	Change in unrealized losses on cash flow hedges	$	(150)	$	(4,300)	$	1,013	$	(26,453)	Gain (loss) recognized in OCI	Change in unrealized losses on cash flow hedges	$	7,218	$	1,163
Gain (loss) reclassified from accumulated OCI into income	Gain (loss) reclassified from accumulated OCI into income	Interest expense	(1,673)		(1,072)		(3,302)		(727)		Gain (loss) reclassified from accumulated OCI into income	Interest expense	(1,599)		(1,629)

Credit Risk Related Contingent Features

We have agreements with each of our derivative counterparties that contain a provision that if we default on any of our indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations.

We also have agreements with each of our derivative counterparties that incorporate provisions from our indebtedness with a lender affiliate of the derivative counterparty requiring it to maintain certain minimum financial covenant ratios on our indebtedness. Failure to comply with the covenant provisions would result in us being in default on any derivative instrument obligations covered by these agreements.

As of ~~June 30, 2021,~~March 31, 2022, the fair value of derivatives in a net ~~liability~~asset position, including accrued interest, but excluding any adjustment for nonperformance risk related to these agreements, was ~~$11.0~~$3.6 million. As of ~~June 30, 2021,~~March 31, 2022, we have not posted any collateral related to these agreements and we were not in breach of any of the provisions of these agreements. If we had breached any of the provisions of these agreements, we could have been required to settle our obligations, if any, under these agreements.

10. Commitments and Contingencies

Litigation

On May 6, 2022, a purported stockholder of the Company filed a lawsuit in the United States District Court for the Southern District of New York against us and 7 of our current directors, captioned Shiva Stein v. Healthcare Trust of America, Inc., et al., Case No. 1:22-cv-03703 (the “Complaint”).

The Complaint alleges that the preliminary proxy statement issued in connection with the Merger omits material information or contains misleading disclosures and that, as a result, (i) all of the defendants violated Section 14(a) of the Securities Exchange Act of 1934 (the Exchange Act) and (ii) our directors violated section 20(a) of the Exchange Act. The Complaint seeks, among other things, (i) injunctive relief preventing the consummation of the transactions contemplated by the Merger Agreement; (ii) rescission or rescissory damages to the extent the transactions contemplated by the Merger Agreement have been implemented; (iii) dissemination of a proxy statement that does not omit material information or contain any misleading disclosures; (iv) an accounting to plaintiff for all damages suffered as a result of the alleged wrongdoing; and (v) an award of plaintiff’s expenses, including attorneys’ and experts’ fees. We ~~engage~~believe the claims asserted in ~~litigation~~the Complaint are without merit.

Additional lawsuits may be filed against us, our Board of Directors, and/or other parties to the Merger in connection with the transactions contemplated by the Merger Agreement.

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In addition, we are, from time to time, ~~with various parties as a routine part of our business, including tenant defaults. However, we are not presently~~also subject to claims and litigation arising in the ordinary course of business with respect to tenant litigation and threatened or asserted labor matters.

We do not believe liability from any ~~material~~reasonably foreseeable disposition of the aforementioned claims and litigation, ~~nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us,~~individually or in the aggregate, would have a material ~~adverse~~ effect on our ~~condensed~~ consolidated financial position, results of operations or cash flows.

Environmental Matters

We ~~follow the policy of monitoring~~routinely monitor our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our condensed consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability at our properties that we believe would require additional disclosure or the recording of a loss contingency.

~~Unfunded Loan Commitments~~

~~Unfunded loan commitments include amounts undrawn on mezzanine loans. As of June 30, 2021, unfunded loan commitments totaled $20.6 million.~~

Other

Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In our opinion, these matters are not expected to have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows.

11. Stockholders’ Equity and Partners’ Capital

HTALP’s operating partnership agreement provides that it will distribute cash flow from operations and net sale proceeds to its partners in accordance with their overall ownership interests at such times and in such amounts as the general partner thereof determines. Dividend distributions are made such that a holder of 1 OP Unit in HTALP will receive distributions from HTALP in an amount equal to the dividend distributions paid to the holder of one share of our common stock. In addition, for each share of common stock issued or redeemed by HTA, HTALP issues or redeems a corresponding number of OP Units.

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~~HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)~~

Common Stock Offerings

In March 2021, we entered into equity distribution agreements with various sales agents with respect to our at-the-market (“ATM”) offering program of common stock with an aggregate sales amount of up to $750.0 million, which ~~replaces~~replaced our prior ATM offering program that expired in February 2021. As of ~~June 30, 2021,~~March 31, 2022, $750.0 million remained available for issuance by us under our current ATM.

Currently, we have 4 outstanding forward sale arrangements pursuant to forward equity agreements under our prior ATM program, with total anticipated net proceeds of $277.5 million based on an average initial forward price of $29.46, subject to adjustments as provided in the forward equity agreements. All 4 of the arrangements have been extended and mature on or about December 31, 2021. Refer to Note 13 - Per Share Data of HTA to these condensed consolidated financial statements for a more detailed discussion related to our forward equity agreements.

Stock Repurchase Plan

In September 2020, our Board of Directors approved the reactivation of a stock repurchase plan authorizing us to purchase up to $300.0 million of our common stock from time to time prior to the expiration thereof on September 22, 2023. As of ~~June 30, 2021,~~March 31, 2022, the remaining amount of common stock available for repurchase under our stock repurchase plan was $300.0 million.

Common Stock Dividends

See our accompanying condensed consolidated statements of equity and condensed statements of changes in partners’ capital for the dividends declared during the three ~~and six~~ months ended ~~June 30, 2021~~March 31, 2022 and ~~2020.~~2021. As of ~~June 30, 2021,~~March 31, 2022, declared, but unpaid, dividends totaling ~~$71.3~~$75.8 million were included in accounts payable and accrued liabilities. On ~~August 3, 2021~~May 5, 2022, our Board of Directors announced ~~an increased~~a quarterly cash dividend of $0.325 per share of common stock and per OP Unit to be paid on ~~October 11, 2021~~July 15, 2022 to stockholders and unitholders of record on ~~October 4, 2021.~~July 6, 2022.

Incentive Plan

~~On April 29, 2021, our Board of Directors approved and adopted the Amended and Restated 2006~~Our Incentive ~~Plan (the “Plan”), which was approved by our Stockholders on July 7, 2021 at our Annual Meeting of Stockholders. The~~ Plan permits the grant of incentive awards to our employees, officers, non-employee directors and consultants as selected by our Board of ~~Directors and~~Directors. This Plan authorizes us to grant awards in any of the following forms: options; stock appreciation rights; restricted stock; restricted or deferred stock units; performance awards; dividend equivalents; ~~and~~ other stock-based awards, including units in HTALP; and cash-based awards. ~~The~~Subject to adjustment as provided in the Plan, the aggregate number of awards reserved and available for issuance under the Plan is 10,000,000 shares. ~~There~~As of March 31, 2022, there were ~~0 issuances of stock~~9,646,504 awards available for grant under the ~~Plan, as amended, as of June 30, 2021.~~Plan.

Restricted Common Stock

We recognized compensation expense, equal to the fair market value of HTA’s stock on the grant date, over the service period which is generally three to four years. For the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021 we recognized compensation expense of ~~$2.1~~$2.0 million and ~~$5.4 million, respectively. For the three and six months ended June 30, 2020, we recognized compensation expense of $2.1 million and $5.3~~$3.3 million, respectively. Substantially all compensation expense was recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

As of ~~June 30, 2021,~~March 31, 2022, we had $7.9 million of unrecognized compensation expense, net of estimated forfeitures, which we will recognize over a remaining weighted average period of 1.9 years.

The following is a summary of our restricted common stock activity as of ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively:


		June 30, 2021			June 30, 2020				March 31, 2022			March 31, 2021
		Restricted Common Stock	Weighted Average Grant Date Fair Value		Restricted Common Stock	Weighted Average Grant Date Fair Value			Restricted Common Stock	Weighted Average Grant Date Fair Value		Restricted Common Stock	Weighted Average Grant Date Fair Value
Beginning balance	Beginning balance	436,399	$	28.27	600,987	$	28.04	Beginning balance	529,862	$	28.83	436,399	$	28.27
Granted	Granted	354,288	26.62		244,531	30.20		Granted	158,543	30.81		354,288	26.20
Vested	Vested	(270,099)	27.48		(361,150)	28.89		Vested	(123,958)	27.37		(258,000)	27.50
Forfeited	Forfeited	(6,767)	28.87		(10,197)	28.78		Forfeited	(4,437)	29.60		(333)	30.07
Ending balance	Ending balance	513,821	$	27.54	474,171	$	28.49	Ending balance	560,010	$	29.71	532,354	$	27.45

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~~HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)~~

12. Fair Value of Financial Instruments

Financial Instruments Reported at Fair Value - Recurring

The table below presents the carrying amounts and fair values of our financial instruments on a recurring basis as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively (in thousands):


		June 30, 2021				December 31, 2020					March 31, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value			Carrying Amount		Fair Value		Carrying Amount		Fair Value
Level 2 - Assets:	Level 2 - Assets:									Level 2 - Assets:
Real estate notes receivable, net	Real estate notes receivable, net	$	46,341	$	46,341	$	0	$	0	Real estate notes receivable, net	$	72,701	$	70,135	$	69,114	$	68,476
Derivative financial instruments	Derivative financial instruments	0		0		0		0		Derivative financial instruments	3,692		3,692		—		—
Level 2 - Liabilities:	Level 2 - Liabilities:									Level 2 - Liabilities:
Derivative financial instruments	Derivative financial instruments	$	10,755	$	10,755	$	14,957	$	14,957	Derivative financial instruments	$	—	$	—	$	5,069	$	5,069
Debt	Debt	3,073,465		3,227,343		3,026,999		3,258,573		Debt	3,053,884		2,944,166		3,028,122		3,117,602

The carrying amounts of cash and cash equivalents, tenant and other receivables, restricted cash, accounts payable, and accrued liabilities approximate fair value. ~~Fair values for real estate notes receivable are estimated based on rates currently prevailing for similar instruments~~There have been no transfers of ~~similar maturities and are based primarily on Level 2 inputs.~~assets or liabilities between levels. We will record any such transfers at the end of the reporting period in which a change of event occurs that results in a transfer. Although we have determined that the majority of the inputs used to value our cash flow hedges fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our cash flow hedge positions and have determined that the credit valuation adjustments are not significant to their overall valuation. As a result, we have determined that our cash flow hedge valuations in their entirety are classified in Level 2 of the fair value hierarchy. For further discussion of the assumptions considered, refer to Note 2 - Summary of Significant Accounting Policies.

~~Financial Instruments Reported at Fair Value - Non-Recurring~~

~~We also have assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. This category generally includes assets subject to impairment.~~

~~The table below presents our assets measured at fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020 (in thousands):~~
June 30, 2021 December 31, 2020
Fair Value Fair Value
Level 2 - Assets:
MOB (1)
$ 27,318 $ 0

(1) The hold period was revised by the Company to be less than the previously estimated useful life for 2 MOBs. Consequently, at June 30, 2021, MOBs with a carrying amount of $44.1 million were written down to their fair value $27.3 million, resulting in impairment charges of $16.8 million for the six months ended June 30, 2021. The estimated fair values for these MOBs as of June 30, 2021 were based on a purchase option and a pending sales agreement, both of which were executed subsequent to June 30, 2021.

~~13. Per Share Data of HTA~~

Currently, we have 4 outstanding forward sale arrangements pursuant to forward equity agreements, with total anticipated net proceeds of $277.5 million, based on an average initial forward price of $29.46, subject to adjustments as provided in the forward equity agreements. All 4 of the arrangements have been extended and mature on or about December 31, 2021.

To account for the forward equity agreements, we considered the accounting guidance governing financial instruments and derivatives and concluded that our forward equity agreements were not liabilities as they did not embody obligations to repurchase our shares of common stock nor did they embody obligations to issue a variable number of shares for which the monetary value was predominately fixed, varying with something other than the fair value of the shares, or varying inversely in relation to the fair value of our shares. We also evaluated whether the agreements met the derivatives and hedging guidance scope exception to be accounted for as equity instruments and concluded that the agreements can be classified as an equity contract based on the following assessment: (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own common stock.

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

~~In addition,~~Financial Instruments Reported at Fair Value - Non-Recurring

We also have assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. This category generally includes assets subject to impairment. We estimate fair value relating to impairment assessments based upon discounted cash flow and direct capitalization models that include all projected cash inflows and outflows over a specific holding period, or the contractual sales price, if applicable. Such projected cash flows are comprised of contractual rental revenues and forecasted rental revenues and expenses based on market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models are based on a reasonable range of current market rates for each property analyzed. Based on these inputs, we ~~considered~~determined that our valuation of properties using a discounted cash flow or a direct capitalization model were classified within Level 3 of the ~~potential dilution resulting from~~fair value hierarchy. For assets for which the ~~forward equity agreements mentioned above~~estimated fair value was based on contractual sales prices, we determined that our ~~earnings per common share calculations. We use~~valuation was classified within Level 2 of the ~~treasury method~~fair value hierarchy. As of March 31, 2022 we had no assets subject to ~~determine the dilution resulting from the forward equity agreements during the period~~impairment.

The table below presents our assets measured at fair value on a non-recurring basis as of ~~time prior to settlement. The impact to our weighted-average shares - diluted was anti-dilutive in nature~~March 31, 2022 and ~~thus, approximately 389,000 and 445,000 shares were excluded from the calculation for the three and six months ended June 30, 2021.~~ December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
	Fair Value		Fair Value
Level 2 - Assets:
Real estate investment	$	—	$	26,768
Level 3 - Assets:
Real estate investments	$	—	$	4,970

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

13. Per Share Data of HTA

For the three ~~and six~~ months ended ~~June 30, 2020, the impact to our weighted-average shares - diluted was anti-dilutive in nature~~March 31, 2022 and ~~thus, approximately 1.4 million and 0.5 million shares, respectively, were excluded from the calculation.~~

We include unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents as “participating securities” pursuant to the two-class method. The resulting classes are our common stock and restricted stock. Our forward equity agreements are not considered a participating security and, therefore, are not included in the computation of earnings per share using the two-class method. For the three and six months ended June 30, 2021, ~~and 2020,~~ all of our earnings were distributed and the calculated earnings per share amount would be the same for all classes.

The following is the reconciliation of the numerator and denominator used in basic and diluted earnings per share of HTA for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands, except per share data):
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Numerator:
Net income $ 38,739 $ 13,725 $ 61,132 $ 31,933
Net income attributable to non-controlling interests (728) (236) (1,091) (543)
Net income attributable to common stockholders $ 38,011 $ 13,489 $ 60,041 $ 31,390
Denominator:
Weighted average shares outstanding - basic 218,822 218,483 218,787 217,588
Dilutive shares - OP Units convertible into common stock 3,504 3,605 3,510 3,640
Adjusted weighted average shares outstanding - diluted 222,326 222,088 222,297 221,228
Earnings per common share - basic
Net income attributable to common stockholders $ 0.17 $ 0.06 $ 0.27 $ 0.14
Earnings per common share - diluted
Net income attributable to common stockholders $ 0.17 $ 0.06 $ 0.27 $ 0.14


	Three Months Ended March 31,
	2022		2021
Numerator:
Net income	$	18,666	$	22,393
Net income attributable to non-controlling interests	(351)		(363)
Net income attributable to common stockholders	$	18,315	$	22,030
Denominator:
Weighted average shares outstanding - basic	228,978		218,753
Dilutive shares - OP Units convertible into common stock	4,068		3,515

Adjusted weighted average shares outstanding - diluted	233,046		222,268
Earnings per common share - basic
Net income attributable to common stockholders	$	0.08	$	0.10
Earnings per common share - diluted
Net income attributable to common stockholders	$	0.08	$	0.10

14. Per Unit Data of HTALP

~~Currently, we have 4 outstanding forward sale arrangements pursuant to forward equity agreements, with total anticipated net proceeds of $277.5 million, subject to adjustments as provided in~~The following is the ~~forward equity agreements. All 4~~reconciliation of the ~~arrangements have been extended~~numerator and ~~mature on or about December~~denominator used in basic and diluted earnings per unit of HTALP for the three months ended March 31, ~~2021. Refer to Note 13 - Per Share Data of HTA to these condensed consolidated financial statements for a more detailed discussion related to our forward equity agreements executed in 2019~~2022 and ~~March 2020.~~2021, respectively (in thousands, except per unit data):


	Three Months Ended March 31,
	2022		2021
Numerator:
Net income	$	18,666	$	22,393
Net income attributable to non-controlling interests	—		—
Net income attributable to common unitholders	$	18,666	$	22,393
Denominator:
Weighted average OP Units outstanding - basic	233,046		222,268
Dilutive units - OP Units convertible into common units	—		—

Adjusted weighted average units outstanding - diluted	233,046		222,268
Earnings per common unit - basic:
Net income attributable to common unitholders	$	0.08	$	0.10
Earnings per common unit - diluted:
Net income attributable to common unitholders	$	0.08	$	0.10

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HEALTHCARE TRUST OF AMERICA, INC. AND HEALTHCARE TRUST OF AMERICA HOLDINGS, LP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following is the reconciliation of the numerator and denominator used in basic and diluted earnings per unit of HTALP for the three and six months ended June 30, 2021 and 2020, respectively (in thousands, except per unit data):
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Numerator:
Net income $ 38,739 $ 13,725 $ 61,132 $ 31,933
Net income attributable to non-controlling interests 0 0 0 0
Net income attributable to common unitholders $ 38,739 $ 13,725 $ 61,132 $ 31,933
Denominator:
Weighted average OP Units outstanding - basic 222,326 222,088 222,297 221,228
Dilutive units - OP Units convertible into common units 0 0 0 0
Adjusted weighted average units outstanding - diluted 222,326 222,088 222,297 221,228
Earnings per common unit - basic:
Net income attributable to common unitholders $ 0.17 $ 0.06 $ 0.28 $ 0.14
Earnings per common unit - diluted:
Net income attributable to common unitholders $ 0.17 $ 0.06 $ 0.28 $ 0.14

15. Supplemental Cash Flow Information

The following is the supplemental cash flow information for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):
Six Months Ended June 30,
2021 2020
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of capitalized interest $ 39,827 $ 44,230
Cash paid for operating leases 7,942 6,340
Supplemental Disclosure of Noncash Investing and Financing Activities:
Accrued capital expenditures $ 13,065 $ 8,536
Dividend distributions declared, but not paid 71,302 69,956
Redemption of non-controlling interest 546 7,872
ROU assets obtained in exchange for lease obligations 7,683 0


	Three Months Ended March 31,
	2022		2021
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of capitalized interest	$	39,025	$	38,605
Cash paid for operating leases	4,335		4,554

Supplemental Disclosure of Noncash Investing and Financing Activities:
Accrued capital expenditures	$	7,620	$	19,013
Dividend distributions declared, but not paid	75,766		71,146


Redemption of non-controlling interest	2,065		255

ROU assets obtained in exchange for lease obligations	—		3,995

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The use of the words “we,” “us,” or “our” refers to HTA and HTALP, collectively.

The following discussion should be read in conjunction with our condensed consolidated financial statements and notes appearing elsewhere in this Quarterly Report, as well as with the audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our ~~2020~~2021 Annual Report on Form 10-K.

The information set forth below is intended to provide readers with an understanding of our financial condition, changes in financial condition and results of operations.

•Forward-Looking Statements;

•Executive Summary;

•Company Highlights;

•Critical Accounting Policies;

•Recently Issued or Adopted Accounting Pronouncements;

•Factors Which May Influence Results of Operations;

•Results of Operations;

•Non-GAAP Financial Measures;

•Liquidity and Capital Resources;

•Commitments and Contingencies;

•Debt Service Requirements;

•Off-Balance Sheet Arrangements; and

•Inflation.

Forward-Looking Statements

Certain statements contained in this Quarterly Report constitute forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”)). Such statements include, in particular, statements about our plans, strategies, prospects and estimates regarding future MOB market performance. Additionally, such statements are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially and in adverse ways from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Forward-looking statements are generally identifiable by the use of such terms as “expect,” “project,” “may,” “should,” “could,” “would,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “opinion,” “predict,” “potential,” “pro forma” or the negative of such terms and other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Quarterly Report is filed with the SEC. We cannot guarantee the accuracy of any such forward-looking statements contained in this Quarterly Report, and we do not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Forward-looking statements regarding HR and HTA, include, but are not limited to, statements related to the Merger, including the anticipated timing, benefits and financial and operational impact thereof; HR’s expected financing for the transaction; other statements of management’s belief, intentions or goals; and other statements that are not historical facts. These forward-looking statements are based on each of the companies’ current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: HR’s and HTA’s ability to complete the Merger on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary shareholder approvals and satisfaction of other closing conditions to consummate the Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the Merger; risks related to diverting the attention of HR and HTA management from ongoing business operations; failure to realize the expected benefits of the Merger; significant transaction costs and/or unknown or inestimable liabilities; the risk of shareholder litigation in connection with the Merger, including resulting expense or delay; the risk that HTA’s business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the ability to obtain the expected financing to consummate the Merger; risks related to future opportunities and plans for the Company, including the

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uncertainty of expected future financial performance and results of the Company following completion of the Merger; effects relating to the announcement of the Merger or any further announcements or the consummation of the Merger on the market price of HR’s or HTA’s common stock; the possibility that, if HR does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of HR’s common stock could decline; general adverse economic and local real estate conditions; the inability of significant tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; increases in interest rates; increases in operating expenses and real estate taxes; changes in the dividend policy for HR’s common stock or its ability to pay dividends; impairment charges; pandemics or other health crises, such as COVID-19; and other risks and uncertainties affecting HR and HTA, including those described from time to time under the caption “Risk Factors” and elsewhere in HR’s and HTA’s SEC filings and reports, including HR’s Annual Report on Form 10-K for the year ended December 31, 2021, HTA’s Annual Report on Form 10-K for the year ended December 31, 2021, and other filings and reports by either company. Moreover, other risks and uncertainties of which HR or HTA are not currently aware may also affect each of the companies’ forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this communication are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by HR or HTA on their respective websites or otherwise. Neither HR nor HTA undertakes any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.

Any such forward-looking statements reflect our current views about future events, are subject to unknown risks, uncertainties, and other factors, and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive and market conditions, all of which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations, provide dividends to stockholders and maintain the value of our real estate properties, may be significantly hindered. Factors that might impair our ability to meet such forward-looking statements include, without limitation, those discussed in Part I, Item 1A - Risk Factors in our ~~2020~~2021 Annual Report on Form 10-K, which is incorporated herein and those discussed in Part II, Item 1A. Risk Factors in this Quarterly Report on Form 10-Q.

Forward-looking statements express expectations of future events. All forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties that could cause actual events or results to differ materially from those projected. Due to these inherent uncertainties, our stockholders are urged not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date made. In addition, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to projections over time, except as required by law.

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These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning us and our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Executive Summary

We are the largest publicly-traded REIT focused on MOBs in the U.S. as measured by the gross leasable area ("GLA") of our MOBs. We conduct substantially all of our operations through HTALP. We invest in MOBs that we believe will serve the future of healthcare delivery and MOBs that are primarily located on health system campuses, near university medical centers, or in core community outpatient locations. We also focus on key markets that have certain demographic and macro-economic trends and where we can utilize our institutional full-service operating platform to generate strong tenant and health system relationships and operating cost efficiencies. Our primary objective is to maximize stockholder value with disciplined growth through strategic investments that provide an attractive risk-adjusted return for our stockholders by consistently increasing our cash flow. In pursuing this objective, we: (i) seek internal growth through proactive asset management, leasing, building services and property management oversight; (ii) target accretive acquisitions and developments of MOBs in markets with attractive demographics that complement our existing portfolio; and (iii) actively manage our balance sheet to maintain flexibility with conservative leverage. Additionally, from time to time we consider, on an opportunistic basis, significant portfolio acquisitions that we believe fit our core business and could enhance our existing portfolio.

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Since 2006, we have invested ~~$7.5~~$7.8 billion primarily in MOBs, development projects, land and other healthcare real estate assets consisting of approximately ~~25.3~~26.0 million square feet of GLA throughout the U.S. Approximately 67% of our portfolio is located on the campuses of, or adjacent to, nationally and regionally recognized healthcare systems. Our portfolio is diversified geographically across 32 states, with no state having more than ~~20%~~21% of our total GLA as of ~~June 30, 2021.~~March 31, 2022. We are concentrated in 20 to 25 key markets that are generally experiencing higher economic and demographic trends than other markets that we expect will drive demand for MOBs. As of ~~June 30, 2021,~~March 31, 2022, we had approximately 1 million square feet of GLA in ten of our top 20 markets and approximately 95% of our portfolio, based on GLA, is located in the top 75 Metropolitan Statistical Area ("MSAs"), with Dallas, Houston, Boston, ~~Houston,~~ Miami and Indianapolis being our largest markets by annualized base rent.

Merger with Healthcare Realty Trust Incorporated

On February 28, 2022, the Company, the Company OP and Merger Sub entered into a Merger Agreement with HR whereby Merger Sub will merge with and into HR, with HR continuing as the surviving corporation. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, each outstanding share of Common Stock, $0.01 par value per share, of HR Common Stock will be converted into the right to receive 1.0 share of Class A Common Stock, $0.01 par value per share, of the Company Common Stock. The Merger Agreement contains customary representations, warranties and covenants by each party. The Merger is subject to certain conditions which are set forth in the Merger Agreement, including the approval of both companies’ stockholders. The boards of directors of the Company and HR have unanimously approved the Merger Agreement. The Merger is expected to close during the third quarter of 2022.

Company Highlights

Portfolio Operating Performance

•For the three months ended ~~June 30, 2021,~~March 31, 2022, our total revenue was ~~$188.6~~$202.0 million, compared to ~~$178.8~~$191.5 million for the three months ended ~~June 30, 2020. For the six months ended June 30, 2021, our total revenue was $380.1 million, compared to $364.6 million for the six months ended June 30, 2020.~~March 31, 2021.

•For the three months ended ~~June 30, 2021,~~March 31, 2022, our net income was ~~$38.7~~$18.7 million, compared to ~~$13.7~~$22.4 million, for the three months ended ~~June 30, 2020. For the six months ended June 30, 2021, our net income was $61.1 million, compared to $31.9 million for the six months ended June 30, 2020.~~March 31, 2021.

•For the three months ended ~~June 30, 2021,~~March 31, 2022, our net income attributable to common stockholders was ~~$0.17~~$0.08 per diluted share, or ~~$38.0~~$18.3 million, compared to ~~$0.06~~$0.10 per diluted share, or ~~$13.5~~$22.0 million, for the three months ended June 30, 2020. For the six months ended June 30, 2021, our net income attributable to common stockholders was $0.27 per diluted share, or $60.0 million, compared to $0.14 per diluted share, or $31.4 million, for the six months ended June 30, 2020.March 31, 2021.

•For the three months ended ~~June 30, 2021,~~March 31, 2022, HTA’s FFO, as defined by NAREIT, was ~~$96.8~~$93.6 million, or ~~$0.44~~$0.40 per diluted share, compared to ~~$0.40~~$0.44 per diluted share, or ~~$87.8~~$97.8 million, for the three months ended June 30, 2020. For the six months ended June 30, 2021, HTA’s FFO was $194.6 million, or $0.88 per diluted share, compared to $0.82 per diluted share, or $180.9 million, for the six months ended June 30, 2020.March 31, 2021.

•For the three months ended ~~June 30, 2021,~~March 31, 2022, HTALP’s FFO was ~~$97.5~~$94.0 million, or ~~$0.44~~$0.40 per diluted OP Unit, compared to ~~$0.40~~$0.44 per diluted OP Unit, or ~~$88.0~~$98.2 million, for the three months ended June 30, 2020. For the six months ended June 30, 2021, HTALP’s FFO was $195.7 million, or $0.88 per diluted OP Unit, compared to $0.82 per diluted OP Unit, or $181.4 million, for the six months ended June 30, 2020.March 31, 2021.

•For the three months ended ~~June 30, 2021,~~March 31, 2022, HTA’s and HTALP’s Normalized FFO was $0.44 per diluted share and OP Unit, or ~~$97.6~~$101.5 million, compared to ~~$0.42~~$0.44 per diluted share and OP Unit, or ~~$93.0~~$98.3 million for the three months ended June 30, 2020. For the six months ended June 30, 2021, HTA’s and HTALP’s Normalized FFO was $0.88 per diluted share and OP Unit, or $195.9 million, compared to $0.84 per diluted share and OP Unit, or $186.6 million for the six months ended June 30, 2020.March 31, 2021.

•For additional information on FFO and Normalized FFO, see “FFO and Normalized FFO” below, which includes a reconciliation to net income attributable to common stockholders/unitholders and an explanation of why we present this non-GAAP financial measure.

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•For the three months ended ~~June 30, 2021,~~March 31, 2022, our ~~NOI~~Net Operating Income (“NOI”) was ~~$131.2~~$136.1 million, compared to ~~$122.6~~$131.9 million for the three months ended ~~June 30, 2020. For the six months ended June 30, 2021, our NOI was $263.1 million, compared to $251.6 million for the six months ended June 30, 2020.~~March 31, 2021.

•For the three months ended ~~June 30, 2021,~~March 31, 2022, our Same-Property Cash NOI increased ~~2.1%~~0.8%, or ~~$2.5~~$0.9 million, to ~~$122.5~~$117.4 million, compared to ~~$120.1~~$116.5 million for the three months ended ~~June 30, 2020. For the six months ended June 30, 2021, our Same-Property Cash NOI increased 2.0%, or $4.7 million, to $244.4 million, compared to $239.7 million for the six months ended June 30, 2020.~~March 31, 2021.

•For additional information on our NOI and Same-Property Cash NOI, see “NOI, Cash NOI and Same-Property Cash NOI” below, which includes a reconciliation from net income and an explanation of why we present these non-GAAP financial measures.

Key Market Focused Strategy and Investments

Over the last decade, we have been an active investor in the medical office sector. This has enabled us to create a high quality portfolio focused on MOBs serving the future of healthcare with scale and significance in 20 to 25 key markets.

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•Our investment strategy includes alignment with key healthcare systems, hospitals, and leading academic medical universities. We are the largest owner of on-campus or adjacent MOBs in the country, with approximately ~~17.1~~17.4 million square feet of GLA, or 67%, of our portfolio located in these locations. The remaining 33% of our portfolio is located in core community outpatient locations where healthcare is increasingly being delivered.

•Over the past decade, our investments have been focused in our 20 to 25 key markets which we believe will outperform the broader U.S. markets from an economic and demographic perspective. As of ~~June 30, 2021,~~March 31, 2022, approximately 95% of our portfolio’s GLA is located in the top 75 MSAs. Our key markets represent top MSAs with strong growth metrics in jobs, household income and population, as well as low unemployment and mature healthcare infrastructures. Many of our key markets are also supported by strong university systems.

•Our key market focus has enabled us to establish scale across 20 to 25 key markets and effectively utilize our asset management and leasing platform to deliver consistent same store growth and additional yield on investments, as well as cost effective service to tenants. As of ~~June 30, 2021,~~March 31, 2022, we had approximately 1 million square feet of GLA in ten of our top 20 markets and approximately 0.5 million square feet of GLA in 17 of our top 20 markets.

•During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, we closed on ~~$52.5~~$19.0 million worth of medical office building investments totaling approximately ~~157,000~~44,000 square feet of GLA. In addition, we funded ~~$48.5~~$2.3 million of investments in real estate notes receivable.

Internal Growth through Proactive In-House Property Management and Leasing

We believe we have one of the largest full-service operating platforms in the medical office sector that consists of our in-house asset management and leasing platform which allows us to better manage and service our existing portfolio. In each of these markets, we have established a strong in-house asset management and leasing platform that has allowed us to develop valuable relationships with health systems, physician practices, universities, and regional development firms that have led to investment and leasing opportunities for us. Our full-service operating platform has also enabled us to focus on generating cost efficiencies as we gain scale across individual markets and regions.

•As of ~~June 30, 2021,~~March 31, 2022, our in-house asset management and leasing platform operated approximately ~~24.5~~25.0 million square feet of GLA, or ~~97%~~96% of our total portfolio.

•As of ~~June 30, 2021,~~March 31, 2022, our leased rate (which includes leases which have been executed, but which have not yet commenced) was 89.3% by GLA and our occupancy rate was ~~87.9%~~87.3% by GLA.

•We entered into new and renewal leases on approximately ~~0.6 million and 1.4~~0.7 million square feet of GLA, or approximately ~~2.6% and 5.3%~~2.7% of the GLA of our total portfolio, during the three ~~and six~~ months ended ~~June 30, 2021, respectively.~~March 31, 2022.

•During the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, tenant retention for the Same-Property portfolio was ~~80% and 73%, respectively.~~69%. Tenant retention is defined as the sum of the total leased GLA of tenants that renewed a lease during the period over the total GLA of leases that renewed or expired during the period.

Financial Strategy and Balance Sheet Flexibility

•As of ~~June 30, 2021,~~March 31, 2022, we had total leverage, measured by debt less cash and cash equivalents to total capitalization, of ~~33.5%~~29.4%. Total liquidity was approximately ~~$1.3~~$1.0 billion, inclusive of ~~$955.0~~$975.0 million available on our unsecured revolving credit facility ~~$277.5 million of forward equity agreements, $65.0 million~~ ~~of restricted cash for funds held in a 1031 exchange account~~, and cash and cash equivalents of ~~$19.8~~$10.9 million as of ~~June 30, 2021.~~March 31, 2022.

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•As of ~~June 30, 2021,~~March 31, 2022, the weighted average remaining term of our debt portfolio was ~~6.6~~6.2 years.

Critical Accounting Policies

The complete list of our critical accounting policies was disclosed in our ~~2020~~2021 Annual Report on Form 10-K. Additionally, in light of the COVID-19 pandemic, we believe we have included all relevant information when determining our management estimates and that these estimates are in line with our established policies. For further information on other significant accounting policies that impact us, see Note 2 - Summary of Significant Accounting Policies in the accompanying condensed consolidated financial statements.

Recently Issued or Adopted Accounting Pronouncements

For detail on recently issued accounting pronouncements see Note 2 - Summary of Significant Accounting Policies in the accompanying condensed consolidated financial statements.

Factors Which May Influence Results of Operations

The novel coronavirus, or COVID-19 pandemic, continues to impact economies and markets worldwide. All our buildings have remained in operation throughout the course of the pandemic. However, we addressed periodic requests from a number of our tenants about their ability to defer payment of a portion of their rents for a limited duration. We evaluated each such request on a case by case basis. In 2020, which is the period that we believe constituted the majority of our COVID-related deferral requests, we approved deferral plans totaling approximately $11.1 million, of which approximately $10.2 million of these deferrals have been repaid through June 30, 2021. There are no substantial outstanding requests for assistance from tenants. Payments of rent deferrals are generally expected to be repaid within the next 3 to 6 months. As of June 30, 2021, we have not granted unilateral rent forgiveness in connection with our deferral program, however, we may do so in the future if conditions and the specific economics warrant the use of such measures.

In addition, in 2020 we entered into certain lease modifications in the form of early renewals where we provide concessions in the form of free rent, which averaged three months at the inception of the lease, in exchange for additional term, which, averaged approximately three years. During the six months ended June 30, 2021, we have not entered into any material deferral arrangements or early renewal leases with substantive amounts of free rent or other forms of concession at the onset of the lease as a result of COVID-19. Although we did not experience significant disruptions from the COVID-19 pandemic during the six months ended June 30, 2021, should current and planned measures, including further development and delivery of vaccines and other measures intended to reduce or eliminate the spread of COVID-19, past and/or proposed economic stimulus, and other laws, acts and orders proposed or enacted by federal, state and local agencies or foreign governments, ultimately not be successful or limited in their efficacy, our business and the broader real estate industry may experience significant adverse consequences. These consequences include loss of revenues, increased expenses, increased costs of materials, difficulty in maintaining an active workforce, and constraints on our ability to secure capital or financing, among other factors.

~~Other than the above, we~~ are not aware of ~~any~~ material trends or uncertainties other than ~~national economic conditions affecting real estate generally and~~ the risk factors previously discussed in Part I, Item 1A - Risk Factors, in our ~~2020~~2021 Annual Report on Form 10-K, and this Quarterly Report on Form 10-Q under Item 1A. Risk Factors below, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues or income from the investment, management and operation of our properties.

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Rental Income

The amount of rental income generated by our properties depends principally on our ability to maintain the occupancy rates of currently leased space and to lease currently available space and space that will become available from unscheduled lease terminations at the then applicable rental rates. Negative trends in one or more of these factors, including the ultimate collections of such rents, could adversely affect our rental income in future periods.

Investment Activity

During the ~~six~~three months ended ~~June 30,~~March 31, 2022, we had investments with an aggregate gross purchase price of $19.1 million. During the three months ended March 31, 2021, we had investments with an aggregate gross purchase price of ~~$53.0 million. During the six months ended June 30, 2020, we had investments with an aggregate gross purchase price of $41.7~~$32.9 million. The amount of any future acquisitions or dispositions could have a significant impact on our results of operations in future periods.

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Results of Operations

Comparison of the Three ~~and Six~~ Months Ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~

As of ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ we owned and operated approximately ~~25.3~~26.0 million and ~~24.9~~25.6 million square feet of GLA, respectively, with a leased rate of 89.3% and ~~90.4%~~89.2%, respectively (including leases which have been executed, but which have not yet commenced), and an occupancy rate of ~~87.9%~~87.3% and ~~89.7%~~87.9%, respectively. All explanations are applicable to both HTA and HTALP unless otherwise noted.

Comparison of the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively, is set forth below (in thousands):
Three Months Ended June 30,
2021 2020 Change % Change
Revenues:
Rental income $ 188,494 $ 178,670 $ 9,824 5.5 %
Interest and other operating income 121 175 (54) (30.9)
Total revenues 188,615 178,845 9,770 5.5
Expenses:
Rental 57,409 56,200 1,209 2.2
General and administrative 10,929 10,160 769 7.6
Transaction 66 32 34 106.3
Depreciation and amortization 74,977 74,927 50 0.1
Interest expense 23,133 24,277 (1,144) (4.7)
Impairment 16,825 — 16,825 NM
Total expenses 183,339 165,596 17,743 10.7
Gain on sale of real estate, net 32,753 — 32,753 NM
Income from unconsolidated joint venture 406 379 27 7.1
Other income 304 97 207 NM
Net income $ 38,739 $ 13,725 $ 25,014 NM
NOI $ 131,206 $ 122,645 $ 8,561 7.0 %
Same-Property Cash NOI $ 122,529 $ 120,065 $ 2,464 2.1 %

~~Comparison of the six months ended June 30, 2021 and 2020, respectively, is set forth below (in thousands):~~


		Six Months Ended June 30,									Three Months Ended March 31,
		2021		2020		Change		% Change			2022		2021		Change		% Change
Revenues:	Revenues:									Revenues:
Rental income	Rental income	$	379,844	$	364,201	$	15,643	4.3	%	Rental income	$	200,243	$	191,350	$	8,893	4.6	%
Interest and other operating income	Interest and other operating income	264		420		(156)		(37.1)		Interest and other operating income	1,759		143		1,616		NM
Total revenues	Total revenues	380,108		364,621		15,487		4.2		Total revenues	202,002		191,493		10,509		5.5
Expenses:	Expenses:									Expenses:
Rental	Rental	116,988		113,062		3,926		3.5		Rental	65,884		59,579		6,305		10.6
General and administrative	General and administrative	21,489		21,678		(189)		(0.9)		General and administrative	12,448		10,560		1,888		17.9
Merger-related costs										Merger-related costs	6,018		—		6,018		NM
Transaction	Transaction	162		172		(10)		(5.8)		Transaction	144		96		48		50.0
Depreciation and amortization	Depreciation and amortization	151,251		152,592		(1,341)		(0.9)		Depreciation and amortization	75,386		76,274		(888)		(1.2)
Interest expense	Interest expense	46,119		48,149		(2,030)		(4.2)		Interest expense	23,940		22,986		954		4.2
Impairment		16,825		—		16,825		NM

Total expenses	Total expenses	352,834		335,653		17,181		5.1		Total expenses	183,820		169,495		14,325		8.5
Gain on sale of real estate, net		32,753		1,991		30,762		NM
Loss on sale of real estate, net										Loss on sale of real estate, net	(4)		—		(4)		NM

Income from unconsolidated joint venture	Income from unconsolidated joint venture	798		801		(3)		(0.4)		Income from unconsolidated joint venture	400		392		8		2.0
Other income	Other income	307		173		134		77.5		Other income	88		3		85		NM
Net income	Net income	$	61,132	$	31,933	$	29,199	91.4	%	Net income	$	18,666	$	22,393	$	(3,727)	(16.6)	%

NOI	NOI	$	263,120	$	251,559	$	11,561	4.6	%	NOI	$	136,118	$	131,914	$	4,204	3.2	%
Same-Property Cash NOI	Same-Property Cash NOI	$	244,394	$	239,685	$	4,709	2.0	%	Same-Property Cash NOI	$	117,430	$	116,549	$	881	0.8	%

*NM- not meaningful.

Rental Income

For the three months ended March 31, 2022 and 2021, respectively, rental income was comprised of the following (in thousands):


	Three Months Ended March 31,
	2022		2021		Change		% Change
Contractual rental income	$	191,165	$	182,512	$	8,653	4.7	%
Straight-line rent and amortization of above and (below) market leases	4,244		5,247		(1,003)		(19.1)
Other rental revenue	4,834		3,591		1,243		34.6
Total rental income	$	200,243	$	191,350	$	8,893	4.6	%

3334

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~~Rental Income~~

~~For the three and six months ended June 30, 2021 and 2020, respectively, rental income was comprised of the following (in thousands):~~
Three Months Ended June 30,
2021 2020 Change % Change
Contractual rental income $ 179,781 $ 168,627 $ 11,154 6.6 %
Straight-line rent and amortization of above and (below) market leases 5,127 6,019 (892) (14.8)
Other rental revenue 3,586 4,024 (438) (10.9)
Total rental income $ 188,494 $ 178,670 $ 9,824 5.5 %

Six Months Ended June 30,
2021 2020 Change % Change
Contractual rental income $ 362,293 $ 344,467 $ 17,826 5.2 %
Straight-line rent and amortization of above and (below) market leases 10,374 12,112 (1,738) (14.3)
Other rental revenue 7,177 7,622 (445) (5.8)
Total rental income $ 379,844 $ 364,201 $ 15,643 4.3 %

Contractual rental income, which includes expense reimbursements, increased ~~$11.2 million and $17.8~~$8.7 million for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, compared to the three ~~and six~~ months ended ~~June 30, 2020.~~March 31, 2021. The ~~increases were~~increase was primarily due to additional contractual rental income of ~~$4.8 million and $9.0~~$8.2 million from our ~~2020~~2021 and ~~2021~~2022 acquisitions, and contractual rent increases for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, partially offset by ~~$1.3 million and $1.7~~$2.8 million of reduced ~~NOI~~contractual rental income as a result of the buildings we sold during ~~2020~~2021 and ~~2021~~2022 for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, respectively. ~~In addition, during the three and six months ended June 30, 2020, we recorded a non-recurring charge of $4.7 million of bad debt as a reduction in revenue.~~

Average starting and expiring base rents for new and renewal leases consisted of the following for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands, except in average base rents per square foot of GLA):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
New and renewal leases:	New and renewal leases:									New and renewal leases:
Average starting base rents	Average starting base rents	$	24.86	$	28.54	$	24.80	$	27.36	Average starting base rents	$	28.92	$	24.75
Average expiring base rents	Average expiring base rents	21.86		27.30		22.45		26.44		Average expiring base rents	25.99		22.99

Square feet of GLA	Square feet of GLA	647		1,301		1,352		2,186		Square feet of GLA	713		705

Lease rates can vary across markets, and lease rates that are considered above or below current market rent may change over time. Leases that expired in ~~2021~~2022 had rents that we believed were at market rates. In general, leasing concessions vary depending on lease type, term, geography, and supply/demand dynamics.

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Tenant improvements, leasing commissions and tenant concessions for new and renewal leases consisted of the following for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in per square foot of GLA):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
New leases:	New leases:									New leases:
Tenant improvements	Tenant improvements	$	36.63	$	60.95	$	28.40	$	45.64	Tenant improvements	$	35.09	$	22.34
Leasing commissions	Leasing commissions	4.31		4.33		3.91		3.21		Leasing commissions	5.11		3.63
Tenant concessions	Tenant concessions	7.00		2.71		6.85		4.20		Tenant concessions	0.41		7.14
Renewal leases:	Renewal leases:									Renewal leases:
Tenant improvements	Tenant improvements	$	5.26	$	6.19	$	5.15	$	6.21	Tenant improvements	$	7.01	$	5.03
Leasing commissions	Leasing commissions	2.06		3.10		2.13		3.31		Leasing commissions	4.12		2.21
Tenant concessions	Tenant concessions	0.16		3.64		0.16		1.74		Tenant concessions	0.00		0.16

The average term for new and renewal leases executed consisted of the following for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in years):


		Three Months Ended June 30,		Six Months Ended June 30,			Three Months Ended March 31,
		2021	2020	2021	2020		2022	2021
New leases	New leases	7.3	8.8	5.6	9.5	New leases	6.5	4.4
Renewal leases	Renewal leases	3.6	3.9	3.9	4.1	Renewal leases	4.3	4.2

Rental Expenses

For the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ rental expenses attributable to our properties were ~~$57.4~~$65.9 million and ~~$56.2~~$59.6 million, respectively. ~~For the six months ended June 30, 2021 and 2020, rental expenses attributable to our properties were $117.0 million and $113.1 million, respectively. These increases~~The increase in rental expenses ~~were~~was primarily due to ~~$1.3 million and $2.7~~$3.8 million of additional rental expenses associated with our ~~2020~~2021 and ~~2021~~2022 acquisitions for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, respectively.

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General and Administrative Expenses

For the three months ended ~~June 30, 2021~~March 31, 2022 and 2020, general and administrative expenses were $10.9 million and $10.2 million, respectively. For the six months ended June 30, 2021 and 2020, general and administrative expenses were $21.5 million and $21.7 million, respectively. The increase in general and administrative expenses for the three months ended June 30, 2021 was primarily a result of increased costs for general corporate matters. For the six months ended June 30, 2021, general and administrative expenses were ~~relatively consistent.~~$12.4 million and $10.6 million, respectively. The increase was driven primarily by the following: (i) increased board expenses of $0.4 million, which includes additional board meeting fees of $0.2 million incurred primarily as a result of the Merger Agreement and the process related thereto, and $0.2 million of board member retainer fees for the board chairman and new board members; (ii) increased legal and professional fees of $0.4 million, primarily driven by costs incurred as a result of the previously disclosed whistleblower investigation, employee retention and strategic review matters; and (iii) increased costs for general corporate matters.

Merger-related costs

For the three months ended March 31, 2022, merger-related costs as a result of the contemplated Merger with HR were $6.0 million and included the following: (i) financial advisor fees of $3.8 million; (ii) legal fees of $1.8 million; (iii) merger and integration consulting fees of $0.3 million; and (iv) travel costs of $0.1 million. No such costs were incurred for the three months ended March 31, 2021.

Depreciation and Amortization Expense

For the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ depreciation and amortization expense was ~~$75.0~~$75.4 million and ~~$74.9~~$76.3 million, respectively. ~~For the six months ended June 30, 2021 and 2020, depreciation and amortization~~The slight decrease in expense was ~~$151.3 million and $152.6 million, respectively. These increases were~~ associated with our ~~2020 and 2021 acquisitions, partially offset by~~ buildings we disposed of during ~~2020~~2021 and ~~2021.~~2022, offset by 2021 and 2022 acquisitions.

Interest Expense

For the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ interest expense was ~~$23.1~~$23.9 million and ~~$24.3 million, respectively. For the six months ended June 30, 2021 and 2020, interest expense was $46.1 million and $48.1~~$23.0 million, respectively. The ~~decreases~~increase in interest expense is primarily ~~due~~related to ~~lower average interest rates as compared to~~amortization of commitment fees on the ~~same period~~$1.7 billion bridge loan financing commitment secured in ~~2020.~~connection with the contemplated Merger with HR.

To achieve our objectives, we borrow at both fixed and variable rates. From time to time, we also enter into derivative financial instruments, such as interest rate swaps, in order to mitigate our interest rate risk on a related financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes.

~~Impairment~~

For the six months ended June 30, 2021, we recorded impairment charges of $16.8 million on two properties related to: (i) a purchase option included in a lease agreement that was exercised subsequent to June 30, 2021 for a contractual sale price less than its carrying value; and (ii) a pending sales agreement executed subsequent to June 30, 2021 for a sale price less than its carrying value. We recorded no impairment charges during the six months ended June 30, 2020.

~~Gain~~Loss on Sale of Real Estate, net

For the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, we realized a net ~~gain~~loss of approximately ~~$32.8 million on~~$4 thousand, as a result of the sale of a ~~13 property portfolio with locations~~tenant purchase option on 1 of our MOBs located in ~~Tennessee and Virginia.~~Georgia. For the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, we ~~realized a net gain of approximately $2.0 million on the sale of part of our interest in undeveloped land in Miami, Florida.~~

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had no property dispositions.

Net Income

For the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ net income was ~~$38.7~~$18.7 million and ~~$13.7 million, respectively. For the six months ended June 30, 2021 and 2020, net income was $61.1 million and $31.9~~$22.4 million, respectively. The ~~increases are~~decrease is primarily the result of ~~gains associated~~the merger-related costs incurred as a result of the contemplated Merger with ~~disposition of assets in non-key markets, as well as continued growth in our operations due to accretive acquisitions and improved operating efficiencies.~~HR.

NOI and Same-Property Cash NOI

For the three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ NOI was ~~$131.2~~$136.1 million and ~~$122.6 million, respectively. For the six months ended June 30, 2021 and 2020, NOI was $263.1 million and $251.6~~$131.9 million, respectively. The increases in NOI was primarily due to additional NOI from our ~~2020~~2021 and ~~2021~~2022 acquisitions of ~~$4.1 million and $7.4~~$5.6 million for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, respectively, partially offset by ~~$0.7 million and $1.1~~$1.6 million of reduced NOI as a result of the buildings we sold during ~~2020~~2021 and ~~2021~~2022 for the three ~~and six~~ months ended ~~June 30, 2021,~~March 31, 2022, respectively, and a reduction in straight-line rent from properties we owned for more than a year.

Same-Property Cash NOI increased ~~2.1%~~0.8% to ~~$122.5~~$117.4 million for the three months ended ~~June 30, 2021~~March 31, 2022 compared to the three months ended ~~June 30, 2020. Same-Property Cash NOI increased 2.0% to $244.4 million for the six months ended June 30, 2021 compared to six months ended June 30, 2020.~~March 31, 2021. The ~~increases were~~increase was primarily the result of rent escalations, ~~and improved operating efficiencies,~~ offset by a slight decrease in average occupancy.

Non-GAAP Financial Measures

FFO and Normalized FFO

We compute FFO in accordance with the current standards established by NAREIT. ~~NAREIT defines~~ FFO is defined as net income or loss attributable to common stockholders/unitholders (computed in accordance with GAAP), excluding gains or losses from sales of real estate property and impairment write-downs of depreciable assets, plus depreciation and amortization related to investments in real estate, and after adjustments for unconsolidated partnerships and joint ventures. Additionally, with respect to gains and losses on the sale of assets incidental to the main business of a REIT, the REIT has the option to include or exclude such gains and losses in the calculation of FFO. Since FFO excludes depreciation and amortization unique to real estate, among other items, it provides a perspective not immediately apparent from net income or loss attributable to common stockholders/unitholders.

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We also compute Normalized FFO, which excludes from FFO: (i) transaction expenses; (ii) gain or loss on extinguishment of debt; (iii) non-controlling income or loss from OP Units included in diluted shares (only applicable to the Company); and (iv) other normalizing adjustments, which include items that are unusual and infrequent in nature. Our methodology for calculating Normalized FFO may be different from the methods utilized by other REITs and, accordingly, may not be comparable to other REITs.

We present FFO and Normalized FFO because we consider them important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Historical cost accounting assumes that the value of real estate assets diminishes ratably over time. Since real estate values have historically risen or fallen based on market conditions, many industry investors have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. FFO and Normalized FFO should not be considered as alternatives to net income or loss attributable to common stockholders/unitholders (computed in accordance with GAAP) as indicators of our financial performance, nor are they indicative of cash available to fund cash needs. FFO and Normalized FFO should be reviewed in connection with other GAAP measurements.

In addition, the amounts included in the calculation of FFO and Normalized FFO are generally the same for HTALP and HTA, except for net income or loss attributable to common stockholders/unitholders, non-controlling income or loss from OP Units included in diluted shares (only applicable to the Company) and the weighted average shares of our common stock or HTALP OP Units outstanding.

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The following is the reconciliation of HTA’s FFO and Normalized FFO to net income attributable to common stockholders for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands, except per share data):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Net income attributable to common stockholders	Net income attributable to common stockholders	$	38,011	$	13,489	$	60,041	$	31,390	Net income attributable to common stockholders	$	18,315	$	22,030
Depreciation and amortization expense related to investments in real estate	Depreciation and amortization expense related to investments in real estate	74,219		73,769		149,550		150,506		Depreciation and amortization expense related to investments in real estate	74,799		75,331
Gain on sale of real estate, net		(32,753)		—		(32,753)		(1,991)
Impairment		16,825		—		16,825		—
Loss on sale of real estate, net										Loss on sale of real estate, net	4		—

Proportionate share of joint venture depreciation and amortization	Proportionate share of joint venture depreciation and amortization	487		508		975		975		Proportionate share of joint venture depreciation and amortization	488		488
FFO attributable to common stockholders	FFO attributable to common stockholders	$	96,789	$	87,766	$	194,638	$	180,880	FFO attributable to common stockholders	$	93,606	$	97,849
Transaction expenses	Transaction expenses	66		32		162		172		Transaction expenses	144		96
Merger-related costs (1)										Merger-related costs (1)	6,018		—
Commitment fee amortization (2)										Commitment fee amortization (2)	892		—

Non-controlling income from OP Units included in diluted shares	Non-controlling income from OP Units included in diluted shares	728		236		1,091		543		Non-controlling income from OP Units included in diluted shares	351		363
Other normalizing adjustments (1)		—		4,959		—		5,031
Other normalizing adjustments (3)										Other normalizing adjustments (3)	514		—
Normalized FFO attributable to common stockholders	Normalized FFO attributable to common stockholders	$	97,583	$	92,993	$	195,891	$	186,626	Normalized FFO attributable to common stockholders	$	101,525	$	98,308

Net income attributable to common stockholders per diluted share	Net income attributable to common stockholders per diluted share	$	0.17	$	0.06	$	0.27	$	0.14	Net income attributable to common stockholders per diluted share	$	0.08	$	0.10
FFO adjustments per diluted share, net	FFO adjustments per diluted share, net	0.27		0.34		0.61		0.68		FFO adjustments per diluted share, net	0.32		0.34
FFO attributable to common stockholders per diluted share	FFO attributable to common stockholders per diluted share	$	0.44	$	0.40	$	0.88	$	0.82	FFO attributable to common stockholders per diluted share	$	0.40	$	0.44
Normalized FFO adjustments per diluted share, net	Normalized FFO adjustments per diluted share, net	0.00		0.02		0.00		0.02		Normalized FFO adjustments per diluted share, net	0.04		0.00
Normalized FFO attributable to common stockholders per diluted share	Normalized FFO attributable to common stockholders per diluted share	$	0.44	$	0.42	$	0.88	$	0.84	Normalized FFO attributable to common stockholders per diluted share	$	0.44	$	0.44

Weighted average diluted common shares outstanding	Weighted average diluted common shares outstanding	222,326		222,088		222,297		221,228		Weighted average diluted common shares outstanding	233,046		222,268

(1) For the three months ended ~~June 30, 2020,~~March 31, 2022, merger-related costs include the following: (i) financial advisor fees of $3.8 million; (ii) legal fees of $1.8 million; (iii) merger and integration consulting fees of $0.3 million; and (iv) travel costs of $0.1 million.

(2) For the three months ended March 31, 2022, commitment fee amortization relates to commitment fees on the $1.7 billion bridge loan financing commitment secured in connection with the pending transaction with HR.

(3) For the three months ended March 31, 2022, other normalizing adjustments ~~includes~~include the following: ~~non-recurring bad debt~~(i) additional board meeting fees of ~~$4,672 thousand; incremental hazard pay~~$159,000; (ii) legal and professional fees related to ~~facilities employees~~the whistleblower investigation of ~~$242 thousand;~~$143,000; (iii) legal fees related to employee retention matters of $131,000; and ~~incremental personal protective equipment~~(iv) professional fees related to strategic review matters of ~~$45 thousand. For the six months ended June 30, 2020, other normalizing adjustments includes the following: non-recurring bad debt~~$81,000.

Table of ~~$4,672 thousand; incremental hazard pay to facilities employees of $314 thousand; and incremental personal protective equipment of $45 thousand.~~Contents

The following is the reconciliation of HTALP’s FFO and Normalized FFO to net income attributable to common unitholders for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands, except per unit data):
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income attributable to common unitholders $ 38,739 $ 13,725 $ 61,132 $ 31,933
Depreciation and amortization expense related to investments in real estate 74,219 73,769 149,550 150,506
Gain on sale of real estate, net (32,753) — (32,753) (1,991)
Impairment 16,825 — 16,825 —
Proportionate share of joint venture depreciation and amortization 487 508 975 975
FFO attributable to common unitholders $ 97,517 $ 88,002 $ 195,729 $ 181,423
Transaction expenses 66 32 162 172
Other normalizing adjustments (1)
— 4,959 — 5,031
Normalized FFO attributable to common unitholders $ 97,583 $ 92,993 $ 195,891 $ 186,626
Net income attributable to common unitholders per diluted share $ 0.17 $ 0.06 $ 0.28 $ 0.14
FFO adjustments per diluted OP Unit, net 0.27 0.34 0.60 0.68
FFO attributable to common unitholders per diluted OP Unit $ 0.44 $ 0.40 $ 0.88 $ 0.82
Normalized FFO adjustments per diluted OP Unit, net 0.00 0.02 0.00 0.02
Normalized FFO attributable to common unitholders per diluted OP Unit $ 0.44 $ 0.42 $ 0.88 $ 0.84
Weighted average diluted common OP Units outstanding 222,326 222,088 222,297 221,228

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	Three Months Ended March 31,
	2022		2021
Net income attributable to common unitholders	$	18,666	$	22,393
Depreciation and amortization expense related to investments in real estate	74,799		75,331
Loss on sale of real estate, net	4		—

Proportionate share of joint venture depreciation and amortization	488		488
FFO attributable to common unitholders	$	93,957	$	98,212
Transaction expenses	144		96
Merger-related costs (1)	6,018		—
Commitment fee amortization (2)	892		—

Other normalizing adjustments (3)	514		—
Normalized FFO attributable to common unitholders	$	101,525	$	98,308

Net income attributable to common unitholders per diluted share	$	0.08	$	0.10
FFO adjustments per diluted OP Unit, net	0.32		0.34
FFO attributable to common unitholders per diluted OP Unit	$	0.40	$	0.44
Normalized FFO adjustments per diluted OP Unit, net	0.04		0.00
Normalized FFO attributable to common unitholders per diluted OP Unit	$	0.44	$	0.44

Weighted average diluted common OP Units outstanding	233,046		222,268

(3) For the three months ended March 31, 2022, other normalizing adjustments ~~includes~~include the following: ~~non-recurring bad debt~~(i) additional board meeting fees of ~~$4,672 thousand; incremental hazard pay~~$159,000; (ii) legal and professional fees related to ~~facilities employees~~the whistleblower investigation of ~~$242 thousand;~~$143,000; (iii) legal fees related to employee retention matters of $131,000; and ~~incremental personal protective equipment~~(iv) professional fees related to strategic review matters of $45 thousand. For the six months ended June 30, 2020, other normalizing adjustments includes the following: non-recurring bad debt of $4,672 thousand; incremental hazard pay to facilities employees of $314 thousand; and incremental personal protective equipment of $45 thousand.$81,000.

NOI, Cash NOI and Same-Property Cash NOI

NOI is a non-GAAP financial measure that is defined as net income or loss (computed in accordance with GAAP) before: (i) general and administrative expenses; (ii) transaction expenses; (iii) depreciation and amortization expense; (iv) impairment; (v) interest expense; (vi) gain or loss on sales of real ~~estate;~~estate and corporate assets; (vii) gain or loss on extinguishment of debt; (viii) income or loss from unconsolidated joint venture; and (ix) other income or expense. We believe that NOI provides an accurate measure of the operating performance of our operating assets because NOI excludes certain items that are not associated with the management of our properties. Additionally, we believe that NOI is a widely accepted measure of comparative operating performance of REITs. However, our use of the term NOI may not be comparable to that of other REITs as they may have different methodologies for computing this amount. NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of our financial performance. NOI should be reviewed in connection with other GAAP measurements.

Cash NOI is a non-GAAP financial measure which excludes from NOI: (i) straight-line rent adjustments; (ii) amortization of below and above market leases/leasehold interests and other GAAP adjustments; (iii) notes receivable interest income; and (iv) other normalizing adjustments. Contractual base rent, contractual rent increases, contractual rent concessions and changes in occupancy or lease rates upon commencement and expiration of leases are a primary driver of our revenue performance. We believe that Cash NOI, which removes the impact of straight-line rent adjustments, provides another measurement of the operating performance of our operating assets. Additionally, we believe that Cash NOI is a widely accepted measure of comparative operating performance of REITs. However, our use of the term Cash NOI may not be comparable to that of other REITs as they may have different methodologies for computing this amount. Cash NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of our financial performance. Cash NOI should be reviewed in connection with other GAAP measurements.

To facilitate the comparison of Cash NOI between periods, we calculate comparable amounts for a subset of our owned and operational properties referred to as “Same-Property”. Same-Property Cash NOI excludes (i) properties which have not been owned and operated by us during the entire span of all periods presented and disposed properties, (ii) our share of unconsolidated joint ventures, (iii) development, redevelopment and land parcels, (iv) properties intended for disposition in the near term which have (a) been approved by the Board of Directors, (b) is actively marketed for sale, and (c) an offer has been

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received at prices we would transact and the sales process is ongoing, and (v) certain non-routine items. Same-Property Cash NOI should not be considered as an alternative to net income or loss (computed in accordance with GAAP) as an indicator of our financial performance. Same-Property Cash NOI should be reviewed in connection with other GAAP measurements.

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The following is the reconciliation of HTA’s and HTALP’s NOI, Cash NOI and Same-Property Cash NOI to net income for the three ~~and six~~ months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2021		2020		2021		2020			2022		2021
Net income	Net income	$	38,739	$	13,725	$	61,132	$	31,933	Net income	$	18,666	$	22,393
General and administrative expenses	General and administrative expenses	10,929		10,160		21,489		21,678		General and administrative expenses	12,448		10,560
Merger-related costs										Merger-related costs	6,018		—
Transaction expenses	Transaction expenses	66		32		162		172		Transaction expenses	144		96
Depreciation and amortization expense	Depreciation and amortization expense	74,977		74,927		151,251		152,592		Depreciation and amortization expense	75,386		76,274
Impairment		16,825		—		16,825		—

Interest expense	Interest expense	23,133		24,277		46,119		48,149		Interest expense	23,940		22,986
Gain on sale of real estate, net		(32,753)		—		(32,753)		(1,991)
Loss on sale of real estate, net										Loss on sale of real estate, net	4		—

Income from unconsolidated joint venture	Income from unconsolidated joint venture	(406)		(379)		(798)		(801)		Income from unconsolidated joint venture	(400)		(392)
Other income	Other income	(304)		(97)		(307)		(173)		Other income	(88)		(3)
NOI	NOI	$	131,206	$	122,645	$	263,120	$	251,559	NOI	$	136,118	$	131,914
Straight-line rent adjustments, net	Straight-line rent adjustments, net	(3,622)		(3,717)		(7,396)		(6,962)		Straight-line rent adjustments, net	(2,828)		(3,774)
Amortization of (below) and above market leases/leasehold interests, net and other GAAP adjustments	Amortization of (below) and above market leases/leasehold interests, net and other GAAP adjustments	(400)		(344)		(875)		(2,043)		Amortization of (below) and above market leases/leasehold interests, net and other GAAP adjustments	(407)		(475)
Notes receivable interest income	Notes receivable interest income	(3)		(3)		(9)		(141)		Notes receivable interest income	(1,660)		(6)
Other normalizing adjustments (1)		—		4,959		—		5,031

Cash NOI	Cash NOI	$	127,181	$	123,540	$	254,840	$	247,444	Cash NOI	$	131,223	$	127,659
Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI	Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI	(4,477)		(2,176)		(9,652)		(4,906)		Acquisitions not owned/operated for all periods presented and disposed properties Cash NOI	(6,280)		(2,180)
Redevelopment Cash NOI	Redevelopment Cash NOI	(282)		(1,334)		(1,066)		(2,936)		Redevelopment Cash NOI	(2,105)		(2,650)
Intended for sale Cash NOI	Intended for sale Cash NOI	107		35		272		83		Intended for sale Cash NOI	(5,408)		(6,280)
Same-Property Cash NOI (2)		$	122,529	$	120,065	$	244,394	$	239,685
Same-Property Cash NOI (1)										Same-Property Cash NOI (1)	$	117,430	$	116,549

(1) ~~For~~Same-Property includes 424 buildings for the three months ended ~~June 30, 2020, other normalizing adjustments includes the following: non-recurring bad debt of $4,672 thousand, incremental hazard pay to facilities employees of $242 thousand,~~March 31, 2022 and incremental personal protective equipment of $45 thousand. For the six months ended June 30, 2020, other normalizing adjustments includes the following: non-recurring bad debt of $4,672 thousand, incremental hazard pay to facilities employees of $314 thousand, and incremental personal protective equipment of $45 thousand.

~~(2) Same-Property includes 432 and 425 buildings for the three and six months ended June 30,~~ 2021, ~~and 2020,~~ respectively.

Liquidity and Capital Resources

Our primary sources of cash include: (i) cash flow from operations; (ii) borrowings under our unsecured revolving credit facility; (iii) net proceeds from the issuances of debt and equity securities; and (iv) proceeds from our dispositions. During the next 12 months our primary uses of cash are expected to include: (a) the funding of acquisitions of MOBs, development properties and other facilities that serve the healthcare industry; (b) capital expenditures; (c) the payment of operating expenses; (d) debt service payments, including principal payments; and (e) the payment of dividends to our stockholders. We anticipate cash flow from operations, restricted cash and reserve accounts and our unsecured revolving credit facility, if needed, will be sufficient to fund our operating expenses, capital expenditures and dividends to stockholders. Investments and maturing indebtedness may require funds from borrowings under our unsecured revolving credit facility, the issuance of debt and/or equity securities or proceeds from sales of real estate.

As of ~~June 30, 2021,~~March 31, 2022, we had total liquidity of ~~$1.3~~$1.0 billion, inclusive of ~~$955.0~~$975.0 million available on our unsecured revolving credit facility ~~$277.5 million of unsettled forward equity agreements, $65.0 million~~ ~~of restricted cash for funds held in a 1031 exchange account~~, and cash and cash equivalents of ~~$19.8~~$10.9 million. ~~We believe that we have sufficient liquidity and opportunities to obtain additional liquidity at our disposal to sustain operations for the foreseeable future.~~

As of ~~June 30, 2021,~~March 31, 2022, we had unencumbered assets with a gross book value of ~~$8.0~~$7.9 billion. The unencumbered properties may be used as collateral to secure additional financings in future periods or refinance our current debt as it becomes due. Our ability to raise funds from future debt and equity issuances is dependent on our investment grade credit ratings, general economic and market conditions, and our operating performance.

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When we acquire a property, we prepare a capital plan that contemplates the estimated capital needs of that investment. In addition to operating expenses, capital needs may also include costs of refurbishment, tenant improvements or other major capital expenditures. The capital plan for each investment will be adjusted through ongoing, regular reviews of our portfolio or as necessary to respond to unanticipated additional capital needs. ~~Capital~~As of March 31, 2022, we estimate that our expenditures for capital improvements including lease commissions for the remainder of the year will be primarily targeted towards planned maintenance activities and other capital improvements that are either of an immediate need to preserve liquidity, or strategically necessary for revenue generation purposes. Currently these expenditures are estimated atrange from approximately ~~$20~~$75 million to ~~$25~~$100 million ~~per quarter.~~depending on leasing activity. In addition, we have approximately $150 million inclusive of costs to complete active development projects and incremental tenant improvements as part of our recently completed development projects. Although we cannot provide assurance that we will not exceed these estimated expenditure levels, we believe our liquidity of ~~$1.3~~$1.0 billion allows us the flexibility to fund such capital ~~expenditures as may be necessary or advisable.~~expenditures.

If we experience lower occupancy levels, reduced rental rates, reduced revenues as a result of asset sales, or increased capital expenditures and leasing costs compared to historical levels due to competitive market conditions for new and renewal leases, the effect would be a reduction of net cash provided by operating activities. If such a reduction of net cash provided by operating activities is realized, we may have a cash flow deficit in subsequent periods. Our estimate of net cash available is based on various assumptions which are difficult to predict, including the levels of our leasing activity and related leasing costs. Any changes in these assumptions could impact our financial results and our ability to fund working capital and unanticipated cash needs.

Cash Flows

The following is a summary of our cash flows for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively (in thousands):


		Six Months Ended June 30,							Three Months Ended March 31,
		2021		2020		Change			2022		2021		Change
Cash, cash equivalents and restricted cash - beginning of period	Cash, cash equivalents and restricted cash - beginning of period	$	118,765	$	37,616	$	81,149	Cash, cash equivalents and restricted cash - beginning of period	$	57,069	$	118,765	$	(61,696)
Net cash provided by operating activities	Net cash provided by operating activities	190,927		182,183		8,744		Net cash provided by operating activities	49,308		65,353		(16,045)
Net cash used in investing activities	Net cash used in investing activities	(118,348)		(114,688)		(3,660)		Net cash used in investing activities	(33,180)		(76,299)		43,119
Net cash used in financing activities	Net cash used in financing activities	(101,006)		(25,111)		(75,895)		Net cash used in financing activities	(57,775)		(74,733)		16,958
Cash, cash equivalents and restricted cash - end of period	Cash, cash equivalents and restricted cash - end of period	$	90,338	$	80,000	$	10,338	Cash, cash equivalents and restricted cash - end of period	$	15,422	$	33,086	$	(17,664)

Net cash provided by operating activities ~~increased~~decreased in ~~2021~~2022 primarily due to the impact of our ~~2020~~2021 and 2022 dispositions, partially offset by our 2021 and 2022 acquisitions and contractual rent ~~increases, partially offset by our 2020 and 2021 dispositions.~~increases. We anticipate cash flows from operating activities to increase as a result of the growth in our portfolio through new acquisitions and continued leasing activity in our existing portfolio.

For the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, net cash used in investing activities primarily related to capital expenditures of $28.6 million, investments in real estate of $19.1 million, development of real estate of $10.4 million, and advances on real estate notes receivable of ~~$61.0 million, capital expenditures of $53.5 million, investments in real estate of $50.6 million, and development of real estate of $34.0~~$2.3 million, partially offset by proceeds from the sale of real estate of ~~$65.3 million and collection of real estate notes receivable of $15.4~~$26.8 million. For the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, net cash used in investing activities primarily related to ~~capital expenditures of $43.9 million,~~ investments in real estate of ~~$41.3~~$30.5 million, capital expenditures of $28.9 million and development of real estate of ~~$30.4~~$17.1 million.

For the three months ended March 31, 2022, net cash used in financing activities primarily related to dividends paid to holders of our common stock of $74.4 million, and ~~funding~~deferred financing costs of ~~a real estate loan of $6.0~~$5.4 million, partially offset by ~~proceeds from the sale~~net borrowings under our revolving credit facility of ~~real estate of $6.4~~$25.0 million.

For the ~~six~~three months ended ~~June 30,~~March 31, 2021, net cash used in financing activities primarily related to dividends paid to holders of our common stock of ~~$140.0~~$70.0 million, and the repurchase and cancellation of common stock of ~~$3.4 million, partially offset by net borrowings under our revolving credit facility of $45.0~~$3.2 million. For the six months ended June 30, 2020, net cash used in financing activities primarily related to dividends paid to holders of our common stock of $137.1 million, and payments on our secured mortgage loans of $96.2 million, partially offset by net borrowings on our unsecured credit facility of $164.0 million and proceeds from issuance of common stock of $50.0 million.

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Dividends

The amount of dividends we pay to our stockholders is determined by our Board of Directors, in their sole discretion, and is dependent on a number of factors, including funds available, our financial condition, capital expenditure requirements and annual dividend distribution requirements needed to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended. We have paid monthly or quarterly dividends since February 2007, and if our investments produce sufficient cash flow, we expect to continue to pay dividends to our stockholders. Because our cash available for dividend distributions in any year may be less than 90% of our taxable income for the year, we may obtain the necessary funds through borrowings, issuing new securities or selling assets to pay out enough of our taxable income to satisfy our dividend distribution requirement. Our organizational documents do not establish a limit on dividends that may constitute a return of capital for federal income tax purposes. The dividend we pay to our stockholders is equal to the distributions received from HTALP in accordance with the terms of the HTALP partnership agreement. It is our intention to continue to pay dividends. However, our Board of Directors may reduce our dividend rate and we cannot guarantee the timing and amount of dividends that we may pay in the future, if any.

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For the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, we paid cash dividends of ~~$140.0~~$74.4 million on our common stock. In ~~July 2021~~April 2022 for the quarter ended ~~June 30, 2021,~~March 31, 2022, we paid cash dividends on our common stock of ~~$70.0~~$74.4 million.

Financing

We have historically maintained a low leveraged balance sheet and intend to continue to maintain this structure in the long term. However, our total leverage may fluctuate on a short-term basis as we execute our business strategy. As of ~~June 30, 2021,~~March 31, 2022, our leverage ratio, measured by debt less cash and cash equivalents to total capitalization, was ~~33.5%~~29.4%.

As of ~~June 30, 2021,~~March 31, 2022, we had debt outstanding of $3.1 billion and the weighted average interest rate therein was 2.86% per annum, inclusive of the impact of our cash flow hedges. The following is a summary of our unsecured and secured debt. See Note 8 - Debt in the accompanying condensed consolidated financial statements for a further discussion of our debt.

Unsecured Revolving Credit Facility

As of ~~June 30, 2021, $955.0~~March 31, 2022, $975.0 million was available on our $1.0 billion unsecured revolving credit ~~facility. Our unsecured revolving credit~~ facility ~~matures~~maturing in ~~June 2022.~~October 2025.

Unsecured Term Loans

As of ~~June 30, 2021,~~March 31, 2022, we had $500.0 million of unsecured term loans outstanding, comprised of $300.0 million under our Unsecured Credit Agreement maturing in ~~2023,~~2025, and $200.0 million under our unsecured term loan maturing in 2024.

Unsecured Senior Notes

As of ~~June 30, 2021,~~March 31, 2022, we had $2.55 billion of unsecured senior notes outstanding, comprised of $600.0 million of senior notes maturing in 2026, $500.0 million of senior notes maturing in 2027, $650.0 million of senior notes maturing in 2030 and $800.0 million of senior notes maturing in 2031.

~~Commitments and Contingencies~~

As of June 30, 2021, we had unfunded loan commitments totaling $20.6 million. See Note 10 - Commitments and Contingencies in the accompanying condensed consolidated financial statements for a further discussion of our commitments and contingencies.

Debt Service Requirements

We are required by the terms of our applicable loan agreements to meet certain financial covenants, such as minimum net worth and liquidity, and reporting requirements, among others. As of ~~June 30, 2021,~~March 31, 2022, we believe that we were in compliance with all such covenants and we are not aware of any covenants that it is reasonably likely that we would not be able to meet in accordance with our loan agreements.

Off-Balance Sheet Arrangements

As of and during the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, we had no material off-balance sheet arrangements that have had or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Inflation

We are exposed to inflation risk as income from future long-term leases is the primary source of our cash flows from operations. There are provisions in the majority of our tenant leases that protect us from the impact of normal inflation. These provisions include rent escalations, reimbursement billings for operating expense pass-through charges and real estate tax and insurance reimbursements on a per square foot allowance. However, due to the long-term nature of our leases, among other factors, the leases may not reset frequently enough to cover inflation.

~~Table of Contents~~

~~Subsequent Events~~

The Board of Directors of the Company named Peter N. Foss as Interim President and Chief Executive Officer of the Company, effective as of August 2, 2021. Scott D. Peters resigned on July 29, 2021, effective August 2, 2021, as a director and Chairman of the Board, President and Chief Executive Officer of the Company. Effective August 2, 2021, the Lead Independent Director of the Board, W. Bradley Blair, II, was elected to be Chairman of the Board.

The Company, with the assistance of outside legal counsel, and the Audit Committee, with the assistance of independent legal counsel, recently began an internal investigation into circumstances relating to reports pursuant to the Company’s whistleblower policy. The investigation is in its early stages, no conclusions have been reached, and the Company cannot predict its duration or outcome. At this time, the Company does not believe that the matters that are the subject of the ongoing investigation will have a material adverse impact on the Company’s financial condition or results of operations.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes from the quantitative and qualitative disclosures about market risk previously disclosed in our ~~2020~~2021 Annual Report on Form 10-K. On March 5, 2021, the United Kingdom Financial Conduct Authority (“FCA”), a regulator of financial services firms and financial markets in the United Kingdom, formally announced the cessation of LIBOR as of June 30, 2023. The Alternative Reference Rates Committee, a group of private-market participant convened by the U.S. Federal Reserve Board and the New York Federal Reserve, has recommended Secured Overnight Financing Rate (“SOFR”) as a more robust reference rate alternative to U.S. dollar LIBOR. Concurrent with the FCA’s announcement, the International Swaps and Derivatives Association (“ISDA”) determined that the announcement constituted an index cessation event and consequently the fallback spread adjustments were fixed and published, with the spread adjustment between U.S. dollar 1-Month LIBOR and SOFR at 0.11%. Borrowings under our Unsecured Credit Agreement and our $200 million unsecured term loan accrue interest at a rate equal to LIBOR, plus a margin, as specified in Note 8 - Debt. The unsecured revolving credit facility and the corresponding $300 million unsecured term loan under the Unsecured Credit Agreement mature on June 30, 2022 and February 1, 2023, respectively, and, thus, we do not believe the cessation of LIBOR will have an impact to these instruments. The $200 million unsecured term loan matures on January 15, 2024, however, the loan agreement includes provisions for an alternative rate of interest in the event LIBOR is no longer a widely recognized benchmark rate. As of June 30, 2021, the fallback rate under SOFR was 0.16%. Comparatively, the U.S. dollar 1-Month LIBOR rate as of June 30, 2021 was 0.10%. Consequently, we do not anticipate the transition from LIBOR will have a material impact on our financial statements or results of operations.

Item 4. Controls and Procedures

Healthcare Trust of America, Inc.

HTA’s management is responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to management, including HTA’s Chief Executive Officer (as the principal executive officer) and Chief Financial Officer (as the principal financial officer and principal accounting officer), to allow timely decisions regarding required disclosures.

As of ~~June 30, 2021,~~March 31, 2022, an evaluation was conducted by HTA under the supervision and with the participation of its management, including HTA’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, HTA’s Chief Executive Officer and Chief Financial Officer each concluded that HTA’s disclosure controls and procedures were effective as of ~~June 30, 2021.~~March 31, 2022.

There were no changes in our internal control over financial reporting that occurred during the quarter ended ~~June 30, 2021~~March 31, 2022 that have materially affected, or are reasonably believed to be likely to materially affect, our internal control over financial reporting. This determination was reached after careful evaluation of the effects COVID-19 has had on our operations.

~~August 5, 2021~~

May 6, 2022

Healthcare Trust of America Holdings, LP

HTALP’s management is responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to management, including HTA’s Chief Executive Officer (as the principal executive officer) and Chief Financial Officer (as the principal financial officer and principal accounting officer), to allow timely decisions regarding required disclosures.

As of ~~June 30, 2021,~~March 31, 2022, an evaluation was conducted by HTALP under the supervision and with the participation of its management, including HTA’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, HTA’s Chief Executive Officer and Chief Financial Officer, on behalf of HTA in its capacity as general partner of HTALP, each concluded that HTALP’s disclosure controls and procedures were effective as of ~~June 30, 2021.~~March 31, 2022.

There were no changes in HTALP’s internal control over financial reporting that occurred during the quarter ended ~~June 30, 2021~~March 31, 2022 that have materially affected, or are reasonably believed to be likely to materially affect, HTALP’s internal control over financial reporting. This determination was reached after careful evaluation of the effects COVID-19 has had on our operations.

~~August 5, 2021~~May 6, 2022

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

On May 6, 2022, a purported stockholder of the Company filed a lawsuit in the United States District Court for the Southern District of New York against us and seven of our current directors, captioned Shiva Stein v. Healthcare Trust of America, Inc., et al., Case No. 1:22-cv-03703 (the “Complaint”).

The Complaint alleges that the preliminary proxy statement issued in connection with the Merger omits material information or contains misleading disclosures and that, as a result, (i) all of the defendants violated Section 14(a) of the Securities Exchange Act of 1934 (the Exchange Act) and (ii) our directors violated section 20(a) of the Exchange Act. The Complaint seeks, among other things, (i) injunctive relief preventing the consummation of the transactions contemplated by the Merger Agreement; (ii) rescission or rescissory damages to the extent the transactions contemplated by the Merger Agreement have been implemented; (iii) dissemination of a proxy statement that does not omit material information or contain any misleading disclosures; (iv) an accounting to plaintiff for all damages suffered as a result of the alleged wrongdoing; and (v) an award of plaintiff’s expenses, including attorneys’ and experts’ fees. We believe the claims asserted in the Complaint are without merit. Additional lawsuits may be filed against us, our Board of Directors, and/or other parties to the Merger in connection with the transactions contemplated by the Merger Agreement.

In addition, we are, from time to time, also subject to claims and litigation arising in the ordinary course of ~~business.~~ business with respect to tenant litigation and threatened or asserted labor matters.

We do not believe ~~any~~ liability from any reasonably foreseeable disposition of ~~such~~the aforementioned claims and litigation, individually or in the aggregate, would have a material ~~adverse~~ effect on our accompanying condensed consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in the ~~Company's 2020~~Company’s 2021 Annual Report on Form 10-K, filed with the SEC on ~~February 24, 2021.~~March 1, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

During the three months ended ~~June 30, 2021,~~March 31, 2022, we repurchased shares of our common stock as follows:
Period
Total Number of
Shares Purchased (1) (2)
Average Price
Paid per Share (1) (2)
Total Number of
Shares Purchased
as Part of
Publicly Announced
Plan or Program Maximum Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
April 1, 2021 to April 30, 2021 3,969 $ 28.12 — —
May 1, 2021 to May 31, 2021 465 27.41 — —
June 1, 2021 to June 30, 2021 148 27.78 — —
(1) Purchases represent shares of common stock withheld by us to satisfy withholding obligations on the vesting of restricted shares. The price paid per share was the then closing price of our common stock on the NYSE.
(2) For each share of common stock redeemed by HTA, HTALP redeems a corresponding number of OP Units in the HTALP operating partnership. Therefore, the OP Units in the HTALP operating partnership repurchased by HTALP are the same as the shares of common stock repurchased by HTA as shown above.


Period	Total Number of Shares Purchased (1) (2)	Average Price Paid per Share (1) (2)		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
January 1, 2022 to January 31, 2022	42,834	$	33.55	—	—
February 1, 2022 to February 28, 2022	672	30.33		—	—
March 1, 2022 to March 31, 2022	6,041	30.40		—	—

(1) Purchases represent shares of common stock withheld by us to satisfy withholding obligations on the vesting of restricted shares. The price paid per share was the then closing price of our common stock on the NYSE.
(2) For each share of common stock redeemed by HTA, HTALP redeems a corresponding number of OP Units in the HTALP operating partnership. Therefore, the OP Units in the HTALP operating partnership repurchased by HTALP are the same as the shares of common stock repurchased by HTA as shown above.

Item 6. Exhibits

The exhibits listed on the Exhibit Index are included, and incorporated by reference, in this Quarterly Report.

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EXHIBIT INDEX

Pursuant to Item 601(a)(2) of Regulation S-K, this Exhibit Index immediately precedes the exhibits.

The following exhibits are included, or incorporated by reference, in this Quarterly Report for the quarter ended ~~June 30, 2021~~March 31, 2022 (and are numbered in accordance with Item 601 of Regulation S-K).


~~1.1~~2.1			~~Equity Distribution~~ Agreement and Plan of Merger, dated ~~March 5, 2021, by and~~as of February 28, 2022, among Healthcare Realty Trust Incorporated, Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, ~~on the one hand,~~ and ~~J.P. Morgan Securities~~HR Acquisition 2, LLC ~~and JPMorgan Chase Bank, National Association, on the other hand~~ (included as Exhibit ~~1.1~~2.1 to our Current Report on Form 8-K filed on March ~~8, 2021 and incorporated herein by reference).~~
~~1.2~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and BMO Capital Markets Corp. and Bank of Montreal, on the other hand (included as Exhibit 1.2 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.3~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and MUFG Securities Americas Inc. and MUFG Securities EMEA plc, on the other hand (included as Exhibit 1.3 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.4~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and Wells Fargo Securities, LLC and Wells Fargo Bank, National Association, on the other hand (included as Exhibit 1.4 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.5~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and BofA Securities, Inc. and Bank of America, N.A., on the other hand (included as Exhibit 1.5 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.6~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and Jefferies LLC, on the other hand (included as Exhibit 1.6 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.7~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and Morgan Stanley & Co. LLC, on the other hand (included as Exhibit 1.7 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.8~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and Capital One Securities, Inc., on the other hand (included as Exhibit 1.8 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.9~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and BTIG, LLC, on the other hand (included as Exhibit 1.9 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.10~~			Equity Distribution Agreement, dated March 5, 2021, by and among Healthcare Trust of America, Inc., Healthcare Trust of America Holdings, LP, on the one hand, and Scotia Capital (USA) Inc. and the Bank of Nova Scotia, on the other hand (included as Exhibit 1.10 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.11~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and JPMorgan Chase Bank, National Association (included as Exhibit 1.11 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.12~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and Bank of Montreal (included as Exhibit 1.12 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.13~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and MUFG Securities EMEA plc. (included as Exhibit 1.13 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.14~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and Wells Fargo Bank, National Association (included as Exhibit 1.14 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.15~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and Bank of America, N.A. (included as Exhibit 1.15 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.16~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and Jefferies LLC (included as Exhibit 1.16 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).

~~Table of Contents~~


~~1.17~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and Morgan Stanley & Co. LLC (included as Exhibit 1.17 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~1.18~~			Master Forward Confirmation, dated March 5, 2021, between Healthcare Trust of America, Inc. and The Bank of Nova Scotia (included as Exhibit 1.18 to our Current Report on Form 8-K filed on March 8, 2021 and incorporated herein by reference).
~~5.1~~			~~Opinion of Venable LLP (included as Exhibit 5.1 to our Current Report on Form 8-K filed on March 8, 2021~~1, 2022 and incorporated herein by reference).
10.1†			H ~~ealthcare~~First Amendment to the Amended and Restated Employment Agreement between Healthcare Trust of America, Inc. ~~Amended~~ and ~~Restated 2006 Incentive Plan, dated April 2~~9 ~~, 2021~~Robert A. Milligan (included as Exhibit 99.1 ~~to our Current Report on Form 8-K filed on July 8, 2021 and incorporated herein by reference).~~
~~23.1~~			~~Consent of Venable LLP (included as Exhibit 5.1~~ to our Current Report on Form 8-K filed on March ~~8, 2021~~15, 2022 and incorporated herein by reference).
10.2†			First Amendment to the Amended and Restated Employment Agreement between Healthcare Trust of America, Inc. and Amanda L. Houghton (included as Exhibit 99.2 to our Current Report on Form 8-K filed on March 15, 2022 and incorporated herein by reference).
10.3			Form of Indemnification Agreement executed by Constance B. Moore (included as Exhibit 10.46 to our Amended Annual Report on Form 10-K/A filed on April 12, 2022 and incorporate d herein by reference).
10.4			Form of Indemnification Agreement executed by Reshma Block (included as Exhibit 10.47 to our Amended Annual Report on Form 10-K/A filed on April 12, 2022 and incorporated herein by reference).
31.1*			Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America, Inc.
31.2*			Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America, Inc.
31.3*			Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America Holdings, LP.
31.4*			Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America Holdings, LP.
32.1**			Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America Inc.
32.2**			Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America, Inc.
32.3**			Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America Holdings, LP.
32.4**			Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002 for Healthcare Trust of America Holdings, LP.
101.INS*			Inline XBRL Instance Document.
101.SCH*			Inline XBRL Taxonomy Extension Schema Document.
101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*			Filed herewith.
**			Furnished herewith.
†			Compensatory plan or arrangement.

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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 thereunto duly authorized.


	Healthcare Trust of America, Inc.

By:	/s/ Peter N. Foss	Interim President and Chief Executive Officer
	Peter N. Foss	(Principal Executive Officer)
Date:	~~August 5, 2021~~May 6, 2022

By:	/s/ Robert A. Milligan	Chief Financial Officer
	Robert A. Milligan	(Principal Financial Officer and Principal Accounting Officer)
Date:	~~August 5, 2021~~May 6, 2022


	Healthcare Trust of America Holdings, LP

By:	Healthcare Trust of America, Inc.,
	its General Partner

By:	/s/ Peter N. Foss	Interim President and Chief Executive Officer
	Peter N. Foss	(Principal Executive Officer)
Date:	~~August 5, 2021~~May 6, 2022

By:	/s/ Robert A. Milligan	Chief Financial Officer
	Robert A. Milligan	(Principal Financial Officer and Principal Accounting Officer)
Date:	~~August 5, 2021~~May 6, 2022

4745


	June 30,
	2021		2020
Cash and cash equivalents	$	19,796	$	75,202
Restricted cash	70,542		4,798
Total cash, cash equivalents and restricted cash	$	90,338	$	80,000