EFTA01373940.pdf

CONFIDENTIAL 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 • Any changes to the Affordable Care Act will likely have a limited impact Government Reimbursement given that they may be offset by changes in federal Medicaid and other healthcare subsidies • American Medical Properties has a diversified pipeline across operators Tenant Concentration and geographic markets • The majority of AMP's healthcare REIT competitors are focused on other healthcare real estate asset classes (senior housing/SNFs/MOBs) Competition 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 Higher Interest Rates the near term • AMP has the flexibility to utilize altemative 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 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0068385 CONFIDENTIAL SDNY_GM_00214569 EFTA01373940