Healthcare Trust Of America (NYSE:HTA), a Scottsdale-based real estate investment trust, reported $0.38 earnings per share for the quarter on Wednesday, hitting analysts’ consensus estimate of $0.38. The firm earned $99.30 million during the quarter and quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the company posted $0.36 EPS.
Second Quarter 2015 Highlights
Operating
- Normalized FFO: Increased 11.5% to $48.5 million, compared to Q2 2014.
- Normalized FFO Per Share: $0.38 per diluted share, an increase of $0.02 per diluted share, or 6%, compared to Q2 2014.
- Normalized FAD: $0.35 per diluted share, or $44.4 million, an increase of $0.02 per diluted share, or 6%, compared to Q2 2014.
- Same-Property Cash NOI: Increased $1.7 million, or 3.0%, to $58.0 million, compared to Q2 2014. Same-Property rental revenue increased $1.3 million, or 2.1%, to $65.9 million, compared to Q2 2014.
Portfolio
- Acquisitions: During the quarter, HTA acquired $190.2 million of medical office buildings (99% leased and approximately 457,000 square feet of GLA), increasing the total year-to-date investments to $225.5 million. These buildings are located in our key markets of Boston, Charleston, Indianapolis and Raleigh.
- Dispositions: In July 2015, HTA completed dispositions of five medical office buildings for an aggregate gross sales price of $34.9 million (approximately 186,000 square feet of GLA).
- Leasing: During the quarter, HTA entered into new and renewal leases on approximately 291,000 square feet of GLA, or 1.9% of its portfolio. Tenant retention for the Same-Property portfolio was 85% by GLA for the quarter.
- Leased Rate: At the end of the quarter, the leased rate by GLA was 91.7%, an increase from 91.5% as of Q2 2014.
Balance Sheet and Liquidity
- Balance Sheet: At the end of the quarter, HTA had total liquidity of $631.1 million, including $614.5 million of availability on its unsecured revolving credit facility and $16.6 million of cash and cash equivalents. The leverage ratio of debt to capitalization was 35.0%.
- Equity Raise: In July 2015, HTA raised $45.0 million from the sale of shares of common stock at an average price of $25.00 per share.
Financial Results
Rental Income
Rental income increased 11.6% to $99.2 million for the three months ended June 30, 2015, compared to $88.9 million for the three months ended June 30, 2014. The increase in rental income was primarily driven by $453.5 million of acquisitions since June 30, 2014, together with Same-Property growth.
FFO
Funds from Operations (“FFO”) was $0.38 per diluted share, or $48.7 million, for the three months ended June 30, 2015, compared to$0.30 per diluted share, or $36.5 million, for the three months ended June 30, 2014.
Normalized FFO
Normalized Funds from Operations (“Normalized FFO”) was $0.38 per diluted share, or $48.5 million, for the three months ended June 30, 2015, compared to $0.36 per diluted share, or $43.5 million, for the three months ended June 30, 2014.
Normalized FAD
Normalized Funds Available for Distribution (“Normalized FAD”) was $0.35 per diluted share, or $44.4 million, for the three months ended June 30, 2015, compared to $0.33 per diluted share, or $39.3 million, for the three months ended June 30, 2014.
NOI
Net Operating Income (“NOI”) was $70.1 million for the three months ended June 30, 2015, compared to $62.6 million for the three months ended June 30, 2014.