Tag Archives: scott peters

Healthcare Trust of America

HTA announces pricing of public offering of common stock

Healthcare Trust of America, Inc. announced Tuesday the pricing of its underwritten public offering of 8,000,000 shares of its common stock at a price to the public of $12.55 per share. HTA has granted the underwriters a 30-day option to purchase up to 1,200,000 additional shares of its common stock.

HTA will receive approximately $100.4 million in gross proceeds, before deducting underwriting discounts and commissions and estimated offering expenses.  HTA intends to use net proceeds from the offering to repay a portion of the outstanding indebtedness under the senior unsecured revolving credit and term loan facility and for general corporate purposes, including, without limitation, working capital and investment in real estate.  Closing is expected to occur on or about November 7, 2014, subject to customary closing conditions.

J.P. Morgan and Wells Fargo Securities are acting as the joint book-running managers for the offering.  BMO Capital Markets, PNC Capital Markets LLC and Raymond James are acting as the lead managers for the offering.  Baird, Capital One Securities, Sandler O’Neill + Partners, L.P., Scotiabank and Stifel are acting as the co-managers for the offering.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.  The offering of these securities is being made solely by means of a prospectus supplement and the accompanying prospectus.

 

HTA reported the following “Third Quarter Highlights”:
Operating
 Normalized FFO: Increased 19.9% to $45.5 million compared to Q3 2013.
Normalized FFO Per Share: $0.19 per diluted share, an increase of $0.03 per diluted share, or 19%, compared to Q3 2013.
Normalized FAD: $0.15 per diluted share, or $37.2 million, an increase of $0.01 per diluted share, or 7%, compared to Q3 2013.
Same-Property Cash NOI: Increased 3.1% compared to Q3 2013.
Portfolio
 Acquisitions: During the quarter, HTA acquired $106.1 million of high quality medical office buildings (96% leased and approximately 301,000 square feet of GLA), increasing the total year-to-date investments to $317.6 million.  The acquisitions during the quarter included properties located in Charleston, South Carolina; Clearwater, Florida and White Plains, New York.
Dispositions: During the quarter, HTA initiated its asset recycling program and sold two portfolios of medical office buildings for an aggregate gross sales price of $42.0 million.  HTA realized gains of $11.8 million from these two dispositions.
 Leasing: During the quarter, HTA entered into new or renewal leases on approximately 555,000 square feet of GLA, or 3.8% of its portfolio.  Tenant retention for the quarter was 85% by GLA.
Leased Rate: At the end of the quarter, the leased rate by GLA was 91.8%, an increase from 91.4% as of Q3 2013.  The leased rate increased 30 basis points from June 30, 2014.
 In-House Property Management and Leasing Platform: HTA expanded its in-house property management and leasing platform by approximately 258,000 square feet of GLA during the quarter, bringing total in-house GLA to 13.3 million square feet, or 91% of HTA’s total portfolio.
Balance Sheet and Liquidity
    Balance Sheet: At the end of the quarter, HTA had total liquidity of $627.9 million, including $609.5 million of availability on its unsecured revolving credit facility and $18.4 million of cash and cash equivalents.  The leverage ratio of debt to total capitalization was 34.8%.

Financial Results
Rental Income
Rental income increased 15.7% to $95.3 million for the three months ended September 30, 2014, compared to $82.3 million for the three months ended September 30, 2013.  The increase in rental income was primarily driven by $473.5 million of acquisitions since September 30, 2013, together with Same-Property growth.
Normalized FFO
Normalized Funds from Operations (“Normalized FFO”) was $0.19 per diluted share, or $45.5 million, for the three months ended September 30, 2014, compared to $0.16 per diluted share, or $37.9 million, for the three months ended September 30, 2013.
FFO
FFO was $0.17 per diluted share, or $40.1 million, for the three months ended September 30, 2014, compared to $0.15 per diluted share, or $34.4 million, for the three months ended September 30, 2013.
Normalized FAD
Normalized Funds Available for Distribution (“Normalized FAD”) was $0.15 per diluted share, or $37.2 million, for the three months ended September 30, 2014, compared to $0.14 per diluted share, or $33.8 million, for the three months ended September 30, 2013.
NOI
Net Operating Income (“NOI”) was $67.0 million for the three months ended September 30, 2014, compared to $57.1 million for the three months ended September 30, 2013.
Same-Property Cash NOI
Same-Property Cash NOI increased 3.1% to $54.0 million for the three months ended September 30, 2014, compared to $52.4 million for the three months ended September 30, 2013.
General and Administrative Expenses
General and administrative expenses were $5.9 million for the three months ended September 30, 2014, compared to $6.0 million for the three months ended September 30, 2013.
Interest Expense and Change in the Fair Value of Derivative Financial Instruments
The total interest expense and change in the fair value of derivative financial instruments for the three months ended September 30, 2014 was $13.0 million, which included $15.6 million of interest expense related to debt and interest rate swaps, and a net gain of $2.6 million on the change in the fair value of HTA’s derivative financial instruments.
HTA ended the quarter with a weighted average borrowing cost of 3.74% per annum, inclusive of interest rate swaps.  The weighted average remaining term of the debt portfolio at the end of the quarter was 5.6 years, including extension options.

Healthcare Trust of America

HTA closes $89M in acquisitions in August

Healthcare Trust of America, Inc. (NYSE:HTA) announced today that it had closed on approximately $89 million of investments in August 2014, increasing its total investment activity to approximately $300 million in 2014. This represents an approximate 10 percent portfolio growth rate year.

These third quarter acquisitions includes two separate investments in medical office buildings (“MOBs”) located in the attractive markets of Westchester County, NY and Charleston, SC. These properties total over 250,000 square feet and were approximately 94% occupied at closing. In addition, the properties are located in or near HTA’s existing key markets, will be operated by HTA’s property management and leasing platform, and are immediately accretive to shareholders.

In Westchester, HTA acquired a destination medical campus that includes five MOBs totaling 188,500 square feet located in one of the wealthiest counties in the country. This campus is part of a high traffic, regional medical corridor and is immediately adjacent to the new Memorial Sloan Kettering Cancer Center-West Harrison opening next month. The campus also includes sufficient land to support the development of a new MOB to meet the growing regional demand.

In Charleston, HTA acquired the Tides Medical Arts Building, a 69,000 square foot class A MOB located near the foot of the Ravanel Bridge which connects Mt. Pleasant and Charleston. The Tides MOB was developed in 2006 and was purchased from multiple physician group tenants. Tides MOB  also serves as one of the primary outpatient centers for Roper St. Francis Healthcare-related physician groups in Mt. Pleasant. The asset is 100 percent leased with an average lease term of 7 years with strong imbedded annual rent growth.  This investment is in close proximity to HTA’s existing regional office downtown Charleston and expands the company’s Charleston presence to over 176,000 square feet.

Healthcare Trust of America

HTA launches medical real estate data service

Healthcare Trust of America, Inc. announced Tuesday that it is serving as the top level, founding partner for the launch of Revista, a new data service for medical real estate. Founded by former executives with the National Investment Center, Revista is creating the most comprehensive and accurate data and industry services focused on the characteristics, transactions, and performance of the growing medical real estate sector in the United States. Revista is the first data service to be built by healthcare real estate veterans and will highlight the key drivers and trends that make medical real estate one of the most attractive asset classes today. Revista is formally launching later this month with the roll out of its data service for the Northeastern U.S. It expects to roll out services for the entire United States later this year.

Healthcare Trust of America is the largest, dedicated owner of medical office buildings in the U.S. today. The medical office sector is estimated to include over $250 billion in asset value, with less than 10% owned by institutional investors. HTA is dedicated to the medical office sector and is committed to providing the tools and resources necessary for health systems and healthcare providers to effectively and efficiently meet their real estate and financing needs.

“As one of the leading owners and operators of medical office real estate in the United States, HTA is committed to bringing an institutional quality to this currently fragmented sector,” stated Chairman and CEO Scott D. Peters. “We believe that the rollout of Revista’s products and services will greatly improve the quality of data that institutional investors require to understand the strong fundamentals of medical real estate. It will also highlight the tremendous value that health systems and providers have locked up in their real estate portfolios, allowing them to strategically analyze their true costs of capital in today’s changing environment.”