Defintions

Annualized Straight-Line Base Rent: Represents the total contractual base rents on a straight-line basis to be received throughout the duration of the lease currently in place expressed as a per annum value. Includes adjustments for non-cash portions of rent.

Cap Rate: Capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight-lined rental income that the property will generate under its existing lease during its first year of ownership. Capitalization rate is calculated by dividing the annualized straight-lined rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted average capitalization rate is based upon square feet.

Cash Rent: Represents total of all contractual rents on a cash basis due from tenants as stipulated in the originally executed lease agreements at inception or any lease amendments thereafter prior to a rent deferral agreement (see slide 3 for further information). We calculate “original Cash Rent collections” by comparing the total amount of rent collected during the period to the original Cash Rent due. Total rent collected during the period includes both original Cash Rent due and payments made by tenants pursuant to rent deferral agreements. 

Leasing Pipeline:  Includes (i) all leases fully executed by both parties as of May 15, 2022, but after March 31, 2022 and (ii) all leases under negotiation with an executed LOI by both parties as of May 15, 2022. This represents six executed new leases totaling approximately 22,200 square feet and five LOIs totaling approximately 22,100 square feet. Includes one lease expiration totaling approximately 3,000 square feet that occurred during this period. There can be no assurance that the LOIs will lead to definitive leases or will commence on their current terms, or at all. Leasing pipeline should not be considered an indication of future performance.

Lease Term Remaining: Current portfolio calculated from March 31, 2022. Weighted based on square feet. 

Liquidity: As of March 31, 2022, HTI had $66.4 million in cash and cash equivalents, and $227.5 million available for future borrowings under the HTI's credit facility. As of March 31, 2021, HTI had $74.1 million in cash and cash equivalents, and $42.8 million available for future borrowings under HTI's credit facility. 

Net Debt: Total gross debt of $1.1 billion per slide 7 less cash and cash equivalents of $66.4 million as of March 31, 2022.

NOI: Defined as a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to revenue from tenants, less property operating and maintenance. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). 

Net Leverage: Represents “Net Debt” as defined above as debt less cash and cash equivalents divided by total assets of $2.2 billion (which includes cash and cash equivalents) plus accumulated depreciation and amortization of $563.7 million as of March 31, 2022

Occupancy: For MOB properties, occupancy represents percentage of square footage of which the tenant has taken possession of divided by the respective total rentable square feet as of the date or period end indicated. For SHOP, occupancy represents total units occupied divided by total units available as of the date or period end indicated.