EFTA01382178.pdf

Economics of an Investment in American Medical Properties Illustrative investment economics Acquisition example Total asset acquisition price $750,000,000 Assumed cap rate 9.0% • Typically between 8.0% and 10.0% Contribution Equity contribution $300,000,000 • 40.0% equity contribution Debt financing 450,000,000 • 60.0% LTV Interest rate 6.0% • Assumed fixed rate debt with 7-10 year term Cash Flow Rental revenue $67,500,000 • Based on 9.0% cap rate G&A (6,000,000) • Assumed at 0.8% of total assets EBITDA 61,500,000 Interest expense (27,000,000) • Based on 6.0% cost of debt Amortization (5,375,728) • 30-year amortization period Recurring capex 0 • Assumed triple-net leases Distributable cash flow $29,124,272 Assumed payout ratio 90.00% Cash distributions $26,211,844 Cash on cash return Ci.i/0) ...ft me. The cash on cash yield from an investment in AMP is expected to exceed 8% on a stabilized basis American Medical Properties 24 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0081442 CONFIDENTIAL SDNY_GM_00227626 EFTA01382178