American Realty Capital Healthcare Trust III, Inc

2Q 2016REPORT

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

American Realty Capital Healthcare Trust III, Inc.

MetroHealth Buckeye – Cleveland, OH DaVita Dialysis – Largo, FL

Illinois Cancer Care – Galesburg, IL Woodlake Office Center – Woodbury, MN

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Dear Fellow Shareholders,

American Realty Capital Healthcare Trust III, Inc. (“HCT III”) continued to execute in line with our stated investment objectives and performed consistent with our expectations for the first half of 2016.

HCT III and the parent of its sponsor, AR Global Investments, LLC (“AR Global”), are focused on helping you meet your financial planning goals. Since our operations began in late 2014, we have done this by operating our business to preserve and grow your invested capital while providing stable and consistent cash distributions to you. We deliver on these goals by abiding by four guiding principles: to acquire properties in line with our core investment objectives, to seek exceptional performance, to communicate clearly with our constituents and to deliver an experience that puts shareholders first.

Our performance metrics indicate that our management team is achieving results in line with our investment goals. HCT III’s portfolio continues to perform better than anticipated, with a balance sheet that is stable and strong with virtually no debt.

HCT III finished the second quarter owning 19 properties with an aggregate contract purchase price of $127.8 million. HCT III will continue to assemble a diversified portfolio of real estate properties, focusing primarily on medical office buildings, seniors housing communities and other facilities as we seek to create shareholder value by taking advantage of real estate investment opportunities within the rapidly growing American healthcare industry

As previously announced, our board has formed a special committee, comprised entirely of independent directors to perform a strategic review to identify, examine and consider a range of strategic alternatives which may be pursued. Engaging in this process is part of our ongoing commitment to provide long-term value to shareholders.

AR Global, one of the largest asset managers of public non-traded REITs, has been dedicated since its founding to providing a platform of complementary, sector-specific investment vehicles. HCT III and our shareholders benefit from the efficiency delivered through shared asset management and operational resources and personnel who provide institutional experience and knowledge which deliver unparalleled investment execution for you. We are aligned with you and are committed to achieving optimal performance for the company and its shareholders.

Sincerely,

Todd Jensen Interim Chief Executive Officer and President

HT III State Diversi�cation

As of June 30, 2016, American Realty Capital Healthcare Trust III, Inc. (“HCT III” or the “Company”) owned 19 properties with an aggregate contract purchase price of $127.8 million. The Company had an additional $0.5 million of assets under contract and/or executed let-ters of intent as of July 31, 2016. At the end of the second quarter of 2016, the Company had $16.8 million of cash and cash equivalents. The Company suspended its initial public offering (the “IPO”), effective November 18, 2015, and it is not likely that the Company will resume the IPO. Please refer to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016, as filed with the U.S. Securities and Exchange Commission on August 9, 2016.

Second Quarter Update

Fact Sheet

1 Annualized Distribution Yield is calculated based upon distributions of $1.56 per share per annum (calculated by annualizing the daily distribution rate as of June 30, 2016) divided by the share price of $25.00.

2 Total secured debt divided by total assets. 3 Revenues for our triple-net leased healthcare facility generally consist of fixed rental amounts (subject to annual contractual escalations) received from our tenants in

accordance with the applicable lease terms and do not vary based on the underlying operating performance of the property. As of June 30, 2016, the property leased to our seniors housing — triple net leased tenant had operating occupancy of approximately 98.0%. While operating occupancy rates may affect the profitability of our tenants’ operations, they do not have a direct impact on our revenues or financial results. Operating occupancy statistics for our triple-net leased healthcare facility are compiled through reports from our tenant and have not been independently validated by us.

4 Annualized rental income as of June 30, 2016 for the leases in place in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable, as well as annualized revenue from our seniors housing - operating property.

Portfolio Highlights (as of June 30, 2016)Property HighlightsNumber of Properties 19

Rentable Square Feet 467,932

Occupancy Rate3

Medical Office Buildings 97.1%

Seniors Housing - Triple-Net Leased 100.0%

Seniors Housing - Operating Properties 98.5%

Financial HighlightsLeverage Ratio2 3.5%

Effective Interest Rate - Mortgage Note Payable 4.0%

Fact Sheet


# Properties % Property Total

By Business SegmentMedical Office Buildings 17 89.4%

Seniors Housing - Triple-Net Leased 1 5.3%

Seniors Housing - Operating Properties 1 5.3%

Total 19 100%

Diversification by State (by Annualized SLR4)

State %

Illinois 41.9%

Georgia 11.9%

Michigan 9.8%

Minnesota 8.9%

Florida 8.5%

Other 19.0%

HCT III is a publicly registered non- traded real estate investment trust (“REIT”) focused on taking advantage of real es-tate investment opportunities within the rapidly growing American healthcare industry. The Company is focused on protecting investor principal, paying out regular stable cash distributions and providing investors with long-term capital appreciation. The Company will continue to assemble a diversified portfolio of real estate properties, focusing primarily on medical office buildings, seniors housing communities and other facilities critical to the support and sustainment of our country’s health and wellness.

Investment Objectives

Distribution InformationAnnualized Distribution Yield1

(as of June 30, 2016)6.25%

Distribution FrequencyMonthly

Key FactsEquity Raised As of June 30, 2016 $169.3 million

Business Summary (as of June 30, 2016)

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41.9%

8.9%

8.5%

9.8%

19.0%

11.9%

2Q 2016REPORT

Property Spotlight

Woodlake Office Center

Buckeye Health Center

Cedarhurst of Collinsville


Medical Office Buildings

Medical Office Buildings

Seniors Housing – Operating Property

Address 2090 Woodwinds Drive, Woodbury, MN 55125

Property Type Single-Tenant MOB


Acquisition Date September 2015

Address 2816 E 116th Street, Cleveland, OH 44120

Property Type Single-Tenant MOB


Acquisition Date August 2015

Address 1207 Vandalia Street, Collinsville, IL 62234

Property Type Assisted Living and Memory Care


Acquisition Date August 2015

2Q 2016REPORTIII

Investor Inquiries

For more information on HCT III, please visit the company website listed below or call our Investor Services department at 866-902-0063.

www.TheHealthcareREIT3.com

The information included herein should be read in connection with your review of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016, as filed with the U.S. Securities and Exchange Commission on August 9, 2016.

Forward-Looking Statement Disclosure

The statements in this report include statements regarding the intent, belief or current expectations of the Company and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “strives,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements due to certain factors, including those set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K filed on March 4, 2016 and any subsequent Quarterly Reports on Form 10-Q, which are available at the SEC’s website at www.sec.gov. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.


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2Q 2016REPORT

Documents

American Realty Capital Healthcare Trust III, Inc