EFTA01382188.pdf

Risk Management Strategies Considerations Mitigants — The Affordable Care Act's increased healthcare coverage yields additional patient volume and revenue for hospitals Healthcare Reform and Changes in Government Reimbursement — Any changes to the Affordable Care Act will likely have a limited impact given that they may be offset by changes in federal Medicaid and other healthcare subsidies Tenant Concentration — American Medical Properties has a diversified pipeline across operators and geographic markets — The majority of AMP's healthcare REIT competitors are focused on other healthcare real estate asset classes (senior Competition housing/SNFs/MOBs) and hospitals are not a focus area. As a result, the hospital real estate asset class presents one of the most compelling sale/lease back opportunities. — Interest rates are projected to increase gradually and only modestly in the near term Higher Interest Rates — AMP has the flexibility to utilize alternative capital sources — AMP plans to continuously monitor the performance of its tenants on a variety of metrics including: — admission levels and surgery/procedure volumes by type — trends in revenue and patient mix — operating margins Tenant Solvency — ratio of tenant's operating margins to total fixed costs — the effect of evolving healthcare regulations on tenant's profitability and liquidity — These factors will help AMP identify any potential issues with any of its tenant's capability to pay rent allowing AMP to take remedial actions to mitigate this risk American Medical Properties as CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0081453 CONFIDENTIAL SDNY_GM_00227637 EFTA01382188