SCOTTSDALE, Ariz., Aug. 2, 2018 /PRNewswire/ -- Healthcare
Trust of America, Inc. (NYSE: HTA) announced today that it entered
into an agreement to sell a portfolio of medical office buildings
affiliated with Greenville Health System ("GHS") for $285 million. The portfolio consists of 16 MOBs
totaling approximately 856,000 square feet of GLA located in
Greenville, SC. The portfolio is
99% occupied. GHS occupies approximately 95% of the leased space
and provides the majority of building services. The portfolio has
just over five years of remaining average weighted lease term. This
transaction is subject to customary closing conditions and is
expected to close by the end of August
2018.
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HTA acquired the portfolio for $163
million in September 2009 as
part of a sale-leaseback transaction and has generated
approximately 2% growth per annum, resulting in unlevered returns
of over 13% during HTA's period of ownership. Excluding any
releasing impacts and capital expenditures, the cash cap rate for
the transaction is in the mid 5% range and the GAAP cap rate is in
the high 4% range.
"We were early investors in Greenville, with a great health system, and
are pleased at the value that has been created during our period of
ownership," said Robert Milligan,
CFO of Healthcare Trust of America. "This transaction allows us to
accretively redeploy capital and resources into key markets where
we can gain significant scale and utilize and expand our
differentiated property management and leasing platform to create
additional value for the long term."
About Healthcare Trust of America, Inc.
Healthcare
Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner
and operator of medical office buildings in the United States, comprising over 24.1
million square feet of GLA, with over $7.0
billion invested primarily in medical office buildings. HTA
provides real estate infrastructure for the integrated delivery of
healthcare services in highly-desirable locations. Investments are
targeted to build critical mass in 20 to 25 leading gateway markets
that generally have leading university and medical institutions
which translates to superior demographics, high-quality graduates,
intellectual talent and job growth. The strategic markets HTA
invests in support a strong, long-term demand for quality medical
office space. HTA utilizes an integrated asset management platform
consisting of on-site leasing, property management, engineering and
building services, and development capabilities to create complete,
state of the art facilities in each market. This drives
efficiencies, strong tenant and health system relationships, and
strategic partnerships that result in high levels of tenant
retention, rental growth and long-term value creation.
Headquartered in Scottsdale,
Arizona, HTA has developed a national brand with dedicated
relationships at the local level.
Founded in 2006 and listed on the New York Stock Exchange in
2012, HTA has produced attractive returns for its stockholders that
have significantly outperformed the S&P 500 and US REIT
indices. More information about HTA can be found on the Company's
Website, Facebook, LinkedIn and Twitter.
Forward-Looking Language
This press release contains
certain forward-looking statements. Forward-looking statements are
based on current expectations, plans, estimates, assumptions and
beliefs, including expectations, plans, estimates, assumptions and
beliefs about HTA, stockholder value and earnings growth.
The forward-looking statements included in this press release
are subject to numerous risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in the forward-looking statements. Assumptions relating to the
foregoing involve judgments with respect to, among other things,
future economic, competitive and market conditions and future
business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond HTA's control.
Although HTA believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions,
HTA's actual results and performance could differ materially and in
adverse ways from those set forth in the forward-looking
statements. Factors which could have a material adverse effect on
HTA's operations and future prospects include, but are not limited
to:
- changes in economic conditions affecting the healthcare
property sector, the commercial real estate market and the credit
market;
- competition for acquisition of medical office buildings and
other facilities that serve the healthcare industry;
- economic fluctuations in certain states in which HTA's property
investments are geographically concentrated;
- retention of HTA's senior management team;
- financial stability and solvency of HTA's tenants;
- supply and demand for operating properties in the market areas
in which HTA operates;
- HTA's ability to acquire real properties, and to successfully
operate those properties once acquired;
- changes in property taxes;
- legislative and regulatory changes, including changes to laws
governing the taxation of REITs and changes to laws governing the
healthcare industry;
- fluctuations in reimbursements from third party payors such as
Medicare and Medicaid;
- changes in interest rates;
- the availability of capital and financing;
- restrictive covenants in HTA's credit facilities;
- changes in HTA's credit ratings;
- HTA's ability to remain qualified as a REIT;
- changes in accounting principles generally accepted in
the United States of America,
policies and guidelines applicable to REITs;
- delays in liquidating defaulted mortgage loan investments;
and
- the risk factors set forth in HTA's most recent Annual Report
on Form 10-K and in HTA's most recent Quarterly Reports on Form
10-Q.
Forward-looking statements speak only as of the date made.
Except as otherwise required by the federal securities laws, HTA
undertakes no obligation to update any forward-looking statements
to reflect the events or circumstances arising after the date as of
which they are made. As a result of these risks and uncertainties,
readers are cautioned not to place undue reliance on the
forward-looking statements included in this press release or that
may be made elsewhere from time to time by, or on behalf of,
HTA.
Financial Contact:
Robert A. Milligan
Chief Financial Officer
Healthcare Trust of America, Inc.
480.998.3478
RobertMilligan@htareit.com
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SOURCE Healthcare Trust of America, Inc.