American Realty Capital Healthcare Trust Reports First Quarter 2013 Results and Announces Completion of $160.8 million in New

 American Realty Capital Healthcare Trust Reports First Quarter 2013 Results
   and Announces Completion of $160.8 million in New Acquisitions since the
                             Fourth Quarter 2012

PR Newswire

NEW YORK, May 15, 2013

NEW YORK, May 15, 2013 /PRNewswire/ --American Realty Capital Healthcare
Trust, Inc. ("ARCHT" or the "Company") announced today that modified funds
from operations ("MFFO"), as defined by the Investment Program Association
("IPA"), for the quarter ended March31, 2013 increased 535.7% to $8.9 million
from $1.4 million for the quarter ended March31, 2012. (See non-GAAP tabular
reconciliations and accompanying notes contained within this release for
additional information.)

(Logo: http://photos.prnewswire.com/prnh/20120525/NY14374LOGO )

"We are pleased to report that ARCHT had another very productive quarter
highlighted by a number of high quality acquisitions which augmented our
growing portfolio of diversified healthcare real estate assets," said Thomas
P. D'Arcy, Chief Executive Officer of American Realty Capital Healthcare
Advisors, LLC, the Company's advisor. "Our continuing dynamic increases in
MFFO were driven by significant new purchases and very high levels of
portfolio occupancy of 96.9%. Our property portfolio remains firmly anchored
by strong credit tenants occupying our facilities under leases with an average
remaining initial term of over 10 years. We ended the quarter with a strong
pipeline of new investment opportunities as we remain focused on investing in
highly productive healthcare real estate assets."

First Quarter 2013 and Subsequent Events Highlights

  oFor the quarter ended March31, 2013, the Company acquired two senior
    living facilities and six medical office buildings containing 0.2 million
    rentable square feet, representing an aggregate purchase price of $64.0
    million. The properties were acquired at an average capitalization rate of
    8.3%. As of March31, 2013, these properties have an average remaining
    lease term of 8.2 years and are 97.9% leased (excluding the senior living
    facilities). As of March31, 2013, the Company owned a total of 58
    properties containing 2.5 million rentable square feet for an aggregate
    purchase price of $736.6 million and at an aggregate capitalization rate
    of 8.2%.(The capitalization rates are calculated by dividing annualized
    rental income on a straight-line basis plus operating expense
    reimbursements less estimated property operating costs by base purchase
    price.) As of March31, 2013, the Company's portfolio has a remaining
    lease term of 10.9 years and is 96.9% leased on a weighted average basis
    (excluding the senior living facilities).
  oFor the quarter ended March31, 2013, the Company generated total revenues
    of $18.7 million (calculated in accordance with generally accepted
    accounting principles ("GAAP")) compared to $4.7 million for the first
    quarter ended March31, 2012.
  oAs of March31, 2013, the Company's secured debt leverage ratio
    (outstanding secured debt divided by base purchase price) was 29.3%.
  oDuring the period April 1, 2013 to May 10, 2013, the Company acquired four
    senior living facilities and four medical office buildings containing 0.4
    million rentable square feet, representing an aggregate purchase price of
    $96.8 million. During the period from January 1, 2013 to May 10, 2013, the
    Company acquired 16 properties, representing an aggregate purchase price
    of $160.8 million. As of May 10, 2013, the aggregate portfolio consists
    of 66 properties with a base purchase price of $833.4 million.



Portfolio Comparison – March 31, 2013 to December 31, 2012
                                             March 31, 2013  December 31, 2012
Number of properties                         58              50
Property type:
Medical office buildings                     41              35
Hospitals                                    7               7
Senior living facilities                     7               5
Inpatient rehabilitation facilities          3               3
Total                                        58              50
Base purchase price (in thousands)           $  736,613      $   672,593
Square feet                                  2,452,543       2,229,277
Occupancy, excluding senior living           96.9        %   97.4          %
facilities
Number of states                             20              18





AMERICAN REALTY CAPITAL HEALTHCARE TRUST, INC.



CONSOLIDATED SUMMARY BALANCE SHEETS

(In thousands)
                                       March31,     December31,
                                       2013          2012
ASSETS                                 (Unaudited)
Total real estate investments, net     $ 709,081     $  656,327
Cash and cash equivalents              424,931       13,869
Restricted cash                        309           127
Receivable for sale of common stock    44,972        6,943
Prepaid expenses and other assets      9,169         5,826
Due from affiliate                     270           190
Deferred costs, net                    7,189         7,386
Total assets                           $ 1,195,921   $  690,668
LIABILITIES AND EQUITY
Mortgage notes payable                 $ 215,846     $  200,095
Mortgage premiums, net                 3,064         2,903
Revolving credit facility              —             26,000
Note payable                           —             2,500
Below-market lease liabilities, net    1,796         1,692
Derivatives, at fair value             598           643
Accounts payable and accrued expenses  10,819        5,669
Deferred rent and other liabilities    1,182         917
Distributions payable                  5,603         2,962
Total liabilities                      238,908       243,381
Common stock                           1,145         556
Additional paid-in capital             1,001,901     476,157
Accumulated other comprehensive loss   (598)         (643)
Accumulated deficit                    (49,420)      (32,832)
Total stockholders' equity             953,028       443,238
Non-controlling interests              3,985         4,049
Total equity                           957,013       447,287
Total liabilities and equity           $ 1,195,921   $  690,668





AMERICAN REALTY CAPITAL HEALTHCARE TRUST, INC.



CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)
                                                  Three Months Ended March 31,
                                                  2013             2012
Revenues:
 Rental income                                  $   15,987       $   3,905
 Operating expense reimbursements               2,189            802
 Resident services and fee income               502              —
Total revenues                                    18,678           4,707
Operating expenses:
Property operating and maintenance                5,192            779
Operating fees to affiliate                       —                233
Acquisition and transaction related               2,038            672
General and administrative                        249              251
Depreciation and amortization                     11,694           2,638
Total operating expenses                          19,173           4,573
Operating income (loss)                           (495)            134
Other income (expenses):
Interest expense                                  (3,089)          (1,592)
Other income                                      —                3
Total other expense                               (3,089)          (1,589)
Net loss                                          (3,584)          (1,455)
Net loss (income) attributable to                 (22)             31
non-controlling interests
Net loss attributable to stockholders             (3,606)          (1,424)
Basic and diluted weighted average shares         77,029,025       9,742,753
outstanding
Basic and diluted net loss per share              $   (0.05)       $   (0.15)
attributable to stockholders



American Realty Capital Healthcare Trust, Inc.
Non-GAAP Measures – Funds from Operations and Modified Funds from Operations

Due to certain unique operating characteristics of real estate companies, as
discussed below, the National Association of Real Estate Investment Trusts
("NAREIT"), an industry trade group, has promulgated a measure known as funds
from operations ("FFO"), which we believe to be an appropriate supplemental
measure to reflect the operating performance of a REIT. The use of FFO is
recommended by the REIT industry as a supplemental performance measure. FFO is
not equivalent to net income or loss as determined under accounting principles
generally accepted in the United States of America ("GAAP").

We define FFO, a non-GAAP measure, consistent with the standards established
by the White Paper on FFO approved by the Board of Governors of NAREIT, as
revised in February 2004 (the "White Paper"). The White Paper defines FFO as
net income or loss computed in accordance with GAAP, excluding gains or losses
from sales of property and asset impairment write-downs, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint
ventures. Adjustments for unconsolidated partnerships and joint ventures are
calculated to reflect FFO. Our FFO calculation complies with NAREIT's policy
described above.

The historical accounting convention used for real estate assets requires
straight-line depreciation of buildings and improvements, which implies that
the value of real estate assets diminishes predictably over time, especially
if such assets are not adequately maintained or repaired and renovated as
required by relevant circumstances and/or is requested or required by lessees
for operational purposes in order to maintain the value disclosed. We believe
that, since real estate values historically rise and fall with market
conditions, including inflation, interest rates, the business cycle,
unemployment and consumer spending, presentations of operating results for a
REIT using historical accounting for depreciation may be less informative.
Additionally, we believe it is appropriate to disregard impairment charges, as
this is a fair value adjustment that is largely based on market fluctuations
and assessments regarding general market conditions which can change over
time. An asset will only be evaluated for impairment if certain impairment
indicators exist and if the carrying, or book value, exceeds the total
estimated undiscounted future cash flows (including net rental and lease
revenues, net proceeds on the sale of the property, and any other ancillary
cash flows at a property or group level under GAAP) from such asset. Investors
should note, however, that determinations of whether impairment charges have
been incurred are based partly on anticipated operating performance, because
estimated undiscounted future cash flows from a property, including estimated
future net rental and lease revenues, net proceeds on the sale of the
property, and certain other ancillary cash flows, are taken into account in
determining whether an impairment charge has been incurred. While impairment
charges are excluded from the calculation of FFO as described above, investors
are cautioned that due to the fact that impairments are based on estimated
undiscounted future cash flows and the relatively limited term of our
operations, it could be difficult to recover any impairment charges.

Historical accounting for real estate involves the use of GAAP. Any other
method of accounting for real estate such as the fair value method cannot be
construed to be any more accurate or relevant than the comparable
methodologies of real estate valuation found in GAAP. Nevertheless, we believe
that the use of FFO, which excludes the impact of real estate related
depreciation and amortization and impairments, provides a more complete
understanding of our performance to investors and to management, and when
compared year over year, reflects the impact on our operations from trends in
occupancy rates, rental rates, operating costs, general and administrative
expenses, and interest costs, which may not be immediately apparent from net
income. However, FFO and modified funds from operations ("MFFO"), as described
below, should not be construed to be more relevant or accurate than the
current GAAP methodology in calculating net income or in its applicability in
evaluating our operating performance. The method utilized to evaluate the
value and performance of real estate under GAAP should be construed as a more
relevant measure of operational performance and considered more prominently
than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in
calculating FFO and MFFO.

Changes in the accounting and reporting promulgations under GAAP (for
acquisition fees and expenses from a capitalization/depreciation model to an
expensed-as-incurred model) that were put into effect in 2009 and other
changes to GAAP accounting for real estate subsequent to the establishment of
NAREIT's definition of FFO have prompted an increase in cash-settled expenses,
specifically acquisition fees and expenses for all industries as items that
are expensed under GAAP, that are typically accounted for as operating
expenses. Management believes these fees and expenses do not affect our
overall long-term operating performance. Publicly registered, non-listed REITs
typically have a significant amount of acquisition activity and are
substantially more dynamic during their initial years of investment and
operation. While other start up entities also may experience significant
acquisition activity during their initial years, we believe that non-listed
REITs are unique in that they have a limited life with targeted exit
strategies within a relatively limited time frame after the acquisition
activity ceases. As disclosed in our Annual Report on Form 10-K and Quarterly
Report on Form 10-Q, we will use the proceeds raised in our recently completed
initial public offering ("IPO") to acquire properties, and intend to begin the
process of achieving a liquidity event (i.e., listing of our common stock on a
national exchange, a merger or sale or another similar transaction) within
three to five years of the completion of IPO. Thus, we will not continuously
purchase assets and will have a limited life. Due to the above factors and
other unique features of publicly registered, non-listed REITs, the Investment
Program Association ("IPA"), an industry trade group, has standardized a
measure known as MFFO, which the IPA has recommended as a supplemental measure
for publicly registered non-listed REITs and which we believe to be another
appropriate supplemental measure to reflect the operating performance of a
non-listed REIT having the characteristics described above. MFFO is not
equivalent to our net income or loss as determined under GAAP, and MFFO may
not be a useful measure of the impact of long-term operating performance on
value if we do not continue to operate with a limited life and targeted exit
strategy, as currently intended. We believe that, because MFFO excludes costs
that we consider more reflective of investing activities and other
non-operating items included in FFO and also excludes acquisition fees and
expenses that affect our operations only in periods in which properties are
acquired, MFFO can provide, on a going forward basis, an indication of the
sustainability (that is, the capacity to continue to be maintained) of our
operating performance after the period in which we are acquiring our
properties and once our portfolio is in place. By providing MFFO, we believe
we are presenting useful information that assists investors and analysts to
better assess the sustainability of our operating performance after our IPO
has been completed and our properties have been acquired. We also believe that
MFFO is a recognized measure of sustainable operating performance by the
non-listed REIT industry. Further, as disclosed in our Annual Report on Form
10-K and Quarterly Report on Form 10-Q, we believe MFFO is useful in comparing
the sustainability of our operating performance after our IPO and acquisitions
are completed with the sustainability of the operating performance of other
real estate companies that are not as involved in acquisition activities. As
disclosed in our Annual Report on Form 10-K and Quarterly Report on Form 10-Q,
investors are cautioned that MFFO should only be used to assess the
sustainability of our operating performance after our IPO has been completed
and properties have been acquired, as it excludes acquisition costs that have
a negative effect on our operating performance during the periods in which
properties are acquired.

We define MFFO, a non-GAAP measure, consistent with the IPA's Guideline
2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed
REITs: Modified Funds from Operations, or the Practice Guideline, issued by
the IPA in November 2010. The Practice Guideline defines MFFO as FFO further
adjusted for the following items, as applicable, included in the determination
of GAAP net income: acquisition fees and expenses; amounts relating to
deferred rent receivables and amortization of above and below market leases
and liabilities (which are adjusted in order to reflect such payments from a
GAAP accrual basis to a cash basis of disclosing the rent and lease payments);
accretion of discounts and amortization of premiums on debt investments;
mark-to-market adjustments included in net income; gains or losses included in
net income from the extinguishment or sale of debt, hedges, foreign exchange,
derivatives or securities holdings where trading of such holdings is not a
fundamental attribute of the business plan, unrealized gains or losses
resulting from consolidation from, or deconsolidation to, equity accounting,
and after adjustments for consolidated and unconsolidated partnerships and
joint ventures, with such adjustments calculated to reflect MFFO on the same
basis. The accretion of discounts and amortization of premiums on debt
investments, unrealized gains and losses on hedges, foreign exchange,
derivatives or securities holdings, unrealized gains and losses resulting from
consolidations, as well as other listed cash flow adjustments are adjustments
made to net income in calculating the cash flows provided by operating
activities and, in some cases, reflect gains or losses which are unrealized
and may not ultimately be realized. While we are responsible for managing
interest rate, hedge and foreign exchange risk, we do retain an outside
consultant to review all our hedging agreements. Inasmuch as interest rate
hedges are not a fundamental part of our operations, we believe it is
appropriate to exclude such gains and losses in calculating MFFO; as such
gains and losses are not reflective of ongoing operations.

Our MFFO calculation complies with the IPA's Practice Guideline described
above. In calculating MFFO, we exclude acquisition related expenses,
amortization of above and below market leases, fair value adjustments of
derivative financial instruments, deferred rent receivables and the
adjustments of such items related to no controlling interests. Under GAAP,
acquisition fees and expenses are characterized as operating expenses in
determining operating net income. These expenses are paid in cash by us, and
therefore such funds will not be available to distribute to investors. All
paid and accrued acquisition fees and expenses negatively impact our operating
performance during the period in which properties are acquired and will have
negative effects on returns to investors, the potential for future
distributions, and cash flows generated, unless earnings from operations or
net sales proceeds from the disposition of other properties are generated to
cover the purchase price of the property, these fees and expenses and other
costs related to such property. Therefore, MFFO may not be an accurate
indicator of our operating performance, especially during periods in which
properties are being acquired. MFFO that excludes such costs and expenses
would only be comparable to that of non-listed REITs that have completed their
acquisition activities and have similar operating characteristics as us.
Further, under GAAP, certain contemplated non-cash fair value and other
non-cash adjustments are considered operating non-cash adjustments to net
income in determining cash flow from operating activities. In addition, we
view fair value adjustments of derivatives as items which are unrealized and
may not ultimately be realized. We view both gains and losses from
dispositions of assets and fair value adjustments of derivatives as items
which are not reflective of ongoing operations and are therefore typically
adjusted for when assessing operating performance. As disclosed elsewhere in
our Annual Report on Form 10-K and Quarterly Report on Form 10-Q, the purchase
of properties, and the corresponding expenses associated with that process, is
a key operational feature of our business plan to generate operational income
and cash flows in order to make distributions to investors. Acquisition fees
and expenses will not be reimbursed by American Realty Capital Healthcare
Advisors, LLC, our affiliated advisor (the "Advisor"), if there are no further
proceeds from the sale of shares in our IPO, and therefore such fees and
expenses will need to be paid from either additional debt, operational
earnings or cash flows, net proceeds from the sale of properties or from
ancillary cash flows.

Our management uses MFFO and the adjustments used to calculate it in order to
evaluate our performance against other non-listed REITs which have limited
lives with short and defined acquisition periods and targeted exit strategies
shortly thereafter. As noted above, MFFO may not be a useful measure of the
impact of long-term operating performance on value if we do not continue to
operate in this manner. We believe that our use of MFFO and the adjustments
used to calculate it allow us to present our performance in a manner that
reflects certain characteristics that are unique to non-listed REITs, such as
their limited life, limited and defined acquisition period and targeted exit
strategy, and hence that the use of such measures is useful to investors. For
example, acquisition costs are funded from the proceeds of our IPO and other
financing sources and not from operations. By excluding expensed acquisition
costs, the use of MFFO provides information consistent with management's
analysis of the operating performance of the properties. Additionally, fair
value adjustments, which are based on the impact of current market
fluctuations and underlying assessments of general market conditions, but can
also result from operational factors such as rental and occupancy rates, may
not be directly related or attributable to our current operating performance.
By excluding such changes that may reflect anticipated and unrealized gains or
losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to
investors as they compare the operating performance of different REITs,
although it should be noted that not all REITs calculate FFO and MFFO the same
way. Accordingly, comparisons with other REITs may not be meaningful.
Furthermore, FFO and MFFO are not necessarily indicative of cash flow
available to fund cash needs and should not be considered as an alternative to
net income (loss) or income (loss) from continuing operations as an indication
of our performance, as an alternative to cash flows from operations as an
indication of our liquidity, or indicative of funds available to fund our cash
needs including our ability to make distributions to our stockholders. FFO and
MFFO should be reviewed in conjunction with GAAP measurements as an indication
of our performance. MFFO has limitations as a performance measure in an
offering such as ours where the price of a share of common stock is a stated
value and there is no net asset value determination during our offering stage
and for a period thereafter. MFFO is useful in assisting management and
investors in assessing the sustainability of operating performance in future
operating periods, and in particular, after our offering and acquisition
stages are complete and net asset value is disclosed. FFO and MFFO are not
useful measures in evaluating net asset value because impairments are taken
into account in determining net asset value but not in determining FFO or
MFFO.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on
the acceptability of the adjustments that we use to calculate FFO or MFFO. In
the future, the SEC, NAREIT or another regulatory body may decide to
standardize the allowable adjustments across the non-listed REIT industry and
we would have to adjust our calculation and characterization of FFO or MFFO.

The below table reflects the items deducted or added to net loss in our
calculation of FFO and MFFO for the periods presented. Items are presented net
of non-controlling interest portions where applicable.



                                                  Three Months Ended March 31,
(In thousands)                                    2013            2012
Net loss attributable to stockholders (in         $  (3,606)      $  (1,424)
accordance with GAAP)
Depreciation and amortization attributable to     11,579          2,536
stockholders
FFO                                               7,973           1,112
Acquisition fees and expenses ^(1)                2,038           631
Amortization of above or accretion of below       67              82
market leases and liabilities, net ^(2)
Straight-line rent ^(3)                           (990)           (422)
Accretion of discount/amortization of premiums    (179)           —
MFFO                                              $  8,909        $  1,403
(1) In evaluating investments in real estate, management differentiates the
costs to acquire the
investment from the operations derived from the investment. Such information
would be
comparable only for non-listed REITs that have completed their acquisition
activity and have other
similar operating characteristics. By excluding expensed acquisition costs,
management believes
MFFO provides useful supplemental information that is comparable for each type
of real estate
investment and is consistent with management's analysis of the investing and
operating
performance of our properties. Acquisition fees and expenses include payments
to our Advisor
or third parties. Acquisition fees and expenses under GAAP are considered
operating expenses
and as expenses included in the determination of net income and income from
continuing
operations, both of which are performance measures under GAAP. All paid and
accrued
acquisition fees and expenses will have negative effects on returns to
investors, the potential
for future distributions, and cash flows generated by us, unless earnings from
operations or net
sales proceeds from the disposition of properties are generated to cover the
purchase price of
the property, these fees and expenses and other costs related to the property.
(2) Under GAAP, certain intangibles are accounted for at cost and reviewed at
least annually for
impairment, and certain intangibles are assumed to diminish predictably in
value over time and
amortized, similar to depreciation and amortization of other real estate
related assets that are
excluded from FFO. However, because real estate values and market lease rates
historically rise
or fall with market conditions, management believes that by excluding charges
relating to
amortization of these intangibles, MFFO provides useful supplemental
information on the
performance of the real estate.
(3) Under GAAP, rental receipts are allocated to periods using various
methodologies. This may
result in income recognition that is significantly different than underlying
contract terms. By
adjusting for these items (to reflect such payments from a GAAP accrual basis
to a cash basis
of disclosing the rent and lease payments), MFFO provides useful supplemental
information on
the realized economic impact of lease terms and debt investments, providing
insight on the
contractual cash flows of such lease terms and debt investments, and aligns
results with
management's analysis of operating performance.



ARCHT is a publicly registered, non-traded real estate investment trust
("REIT") that has elected to qualify as a REIT for tax purposes with the
taxable year ended December 31, 2011.

The statements in this press release that are not historical facts may be
forward-looking statements. These forward looking statements involve
substantial risks and uncertainties. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in the
forward-looking statements ARCHT makes. Forward-looking statements may
include, but are not limited to, statements regarding stockholder liquidity
and investment value and returns. The words "anticipates," "believes,"
"expects," "estimates," "projects," "plans," "intends," "may," "will,"
"would," and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain these
identifying words. Factors that might cause such differences include, but are
not limited to: the impact of current and future regulation; the impact of
credit rating changes; the effects of competition; the ability to attract,
develop and retain executives and other qualified employees; changes in
general economic or market conditions; and other factors, many of which are
beyond our control, including other factors included in our reports filed with
the SEC, particularly in the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" sections of ARCHT's
latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q, each as filed with the SEC, as such Risk Factors may be updated from
time to time in subsequent reports. ARCHT does not assume any obligation to
update any forward-looking statements, whether as a result of new information,
future events or otherwise.

SOURCE American Realty Capital Healthcare Trust, Inc.

Contact: Anthony J. DeFazio, Diccicco Battista Communications,
tdefazio@ddcworks.com, Ph: (484-342-3600); or Brian S. Block, EVP & CFO,
American Realty Capital Healthcare Trust, Inc., bblock@arlcap.com, Ph:
(212-415-6500)