SCOTTSDALE, Ariz., July 23, 2019 /PRNewswire/ -- Healthcare
Trust of America, Inc. (NYSE: HTA) ("HTA") announced results for
the three and six months ended June 30,
2019.
HTA ended Q2 2019 with net income attributable to common
stockholders of $0.08 per diluted
share, Normalized FFO of $0.41 per
diluted share, Same-Property Cash NOI growth of 2.9% and has
completed $111 million of investments
to date.
Highlights
Second Quarter 2019:
- Net Income Attributable to Common Stockholders was
$16.3 million, or $0.08 per diluted share, an increase of
$0.01 per diluted share, compared to
Q2 2018.
- Funds From Operations ("FFO"), as defined by the
National Association of Real Estate Investment Trusts ("NAREIT"),
was $84.6 million, or $0.40 per diluted share, for Q2 2019. Due to the
adoption of Topic 842, initial direct costs are now reported in
general and administrative expenses. For Q2 2018, HTA capitalized
approximately $0.9 million of initial
direct costs.
- Normalized FFO was $85.2
million, or $0.41 per diluted
share, for Q2 2019.
- Normalized Funds Available for Distribution ("FAD") was
$73.1 million for Q2 2019.
- Same-Property Cash Net Operating Income ("NOI")
increased $3.2 million, or 2.9%, to
$112.5 million, compared to Q2
2018.
- Leasing: HTA's portfolio had a leased rate of 91.6% by
gross leasable area ("GLA") and an occupancy rate of 90.6% by GLA
for Q2 2019. During Q2 2019, HTA executed approximately 0.8 million
square feet of GLA of new and renewal leases. Re-leasing spreads
increased to 3.6% and tenant retention for the Same-Property
portfolio was 83% by GLA for Q2 2019.
Year-to-Date 2019:
- Net Income Attributable to Common Stockholders was
$29.7 million, or $0.14 per diluted share, an increase of
$0.02 per diluted share, compared to
2018.
- FFO, as defined by NAREIT, was $167.4 million, or $0.80 per diluted share, for 2019. For 2018, HTA
capitalized approximately $2.2
million of initial direct costs.
- Normalized FFO was $168.3
million, or $0.81 per diluted
share, for 2019.
- Normalized FAD was $146.3
million for 2019.
- Same-Property Cash NOI increased $6.3 million, or 2.9%, to $223.8 million, compared to 2018.
- Leasing: During the six months ended June 30, 2019, HTA executed approximately 1.9
million square feet of GLA of new and renewal leases, or over 8.1%,
of the total GLA of its portfolio. Re-leasing spreads increased to
4.7% and tenant retention for the Same-Property portfolio was 85%
by GLA year-to-date.
Balance Sheet and Capital Markets
- Balance Sheet: HTA ended Q2 2019 with total liquidity of
$1.0 billion, inclusive of
$23.2 million of cash and cash
equivalents, and a $52.1 million
forward equity agreement, resulting in total leverage of (i) 30.7%,
measured as debt less cash and cash equivalents to total
capitalization, and (ii) 5.7x, measured as debt less cash and cash
equivalents to Adjusted Earnings before Interest, Taxes,
Depreciation and Amortization for real estate ("Adjusted
EBITDAre").
- Equity: In June 2019,
under its at-the-market ("ATM") offering program, HTA entered into
a forward sale arrangement in which it would issue approximately
1.8 million shares of common stock to receive anticipated net
proceeds of approximately $52.1
million prior to June 2020,
subject to adjustments as provided in the forward equity
agreement.
Noteworthy 2019 Activities
- Investments: To date, HTA has closed on approximately
$111 million of investments totaling
approximately 320,000 square feet of GLA with $74.1 million closed during Q2 2019 and
$18.0 million closed subsequent to Q2
2019. These investments are primarily located in HTA's existing key
markets and acquired at average capitalization rates of 5.5%. The
key acquisitions are highlighted by the following:
-
- Streeterville Center: An on-campus MOB located adjacent to
Northwestern Memorial Hospital, in downtown Chicago, IL. We acquired the 72,000 square
foot MOB for $40.0 million. It is
approximately 98% leased and will be operated by HTA's internal
asset management platform.
- Charlotte MOBs: Two MOBs located in affluent Charlotte, NC suburbs for $20.3 million totaling 73,000 square feet of GLA.
These include an MOB adjacent to Novant Huntersville hospital
campus and a core community MOB in close proximity to Davidson College. With these acquisitions, HTA's
Charlotte, NC presence will
increase to over 400,000 square feet of GLA, allowing HTA to bring
its assets onto its internal asset management platform allowing HTA
to expand its key health system relationships.
- Fairfax MOB: An MOB investment of $18.0
million closed subsequent to Q2 2019, totaling approximately
57,000 square feet of GLA and approximately 98% leased.
- Dividends: On July 23,
2019, HTA's Board of Directors announced an increased
quarterly cash dividend of $0.315 per
share of common stock and per OP Unit. The quarterly dividend is to
be paid on October 10, 2019 to
stockholders of record of its common stock and holders of its OP
Units on October 3, 2019.
Impact of Topic 842 Leases
- The Financial Accounting Standards Board issued Topic 842,
which was effective for HTA as of January 1,
2019. Topic 842 modifies the treatment of initial direct
costs, which historically under Topic 840 were capitalized in
accordance with certain criteria provided for in the applicable
guidance. Topic 842 also eliminates the accounting recognition of
expenses paid directly by tenants and moves certain bad debt costs
from expense to revenue. During the three and six months ended Q2
2018, HTA capitalized $0.9 million
and $2.2 million, respectively, of
initial direct costs that would now be expensed under Topic 842. In
addition, for the three and six months ended Q2 2018, HTA
recognized $3.4 million and
$7.0 million, respectively, of tenant
paid property taxes in both revenues and expenses and a nominal
amount of bad debt costs recognized as expenses.
2019 Guidance
For 2019, HTA updated its earnings guidance as follows:
|
|
Annual
Expectations
|
|
|
Low
|
to
|
High
|
Net income
attributable to common stockholders per share
|
|
$0.33
|
|
$0.36
|
|
|
|
|
|
Same-Property Cash
NOI
|
|
2.0%
|
|
3.0%
|
|
|
|
|
|
FFO per share, as
defined by NAREIT
|
|
$1.62
|
|
$1.64
|
|
|
|
|
|
Normalized FFO per
share
|
|
$1.63
|
|
$1.65
|
About Healthcare Trust of America, Inc.
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest
dedicated owner and operator of MOBs in the United States, comprising approximately
23.3 million square feet of GLA, with $6.9
billion invested primarily in MOBs. 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 outperformed the S&P 500 and US REIT index. More
information about HTA can be found on the Company's Website
(www.htareit.com), Facebook, LinkedIn and Twitter.
Forward-Looking Language
This press release contains certain forward-looking statements
with respect to HTA. Forward-looking statements are
statements that are not descriptions of historical facts and
include statements regarding management's intentions, beliefs,
expectations, plans or predictions of the future, within the
meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Because such statements include risks,
uncertainties and contingencies, actual results may differ
materially and in adverse ways from those expressed or implied by
such forward-looking statements. These risks, uncertainties
and contingencies include, without limitation, the following:
changes in economic conditions generally and the real estate market
specifically; legislative and regulatory changes, including changes
to laws governing the taxation of REITs and changes to laws
governing the healthcare industry; the availability of capital;
changes in interest rates; competition in the real estate industry;
the supply and demand for operating properties in our proposed
market areas; changes in accounting principles generally accepted
in the United States of America;
policies and guidelines applicable to REITs; the availability of
properties to acquire; and the availability of financing.
Additional information concerning us and our business, including
additional factors that could materially and adversely affect our
financial results, include, without limitation, the risks described
under Part I, Item 1A - Risk Factors, in our 2018 Annual
Report on Form 10-K and in our filings with the SEC.
Conference Call
HTA will host a conference call and webcast on Wednesday, July 24, 2019 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to review its financial
performance and operating results for the three and six months
ended June 30, 2019.
Conference Call and Webcast Details:
Domestic Dial-In Number: (877) 507-6265
International Dial-In Number: (412) 902-6633
Canada Dial-In Number: (855) 669-9657
Webcast: www.htareit.com under the Investor Relations tab
Replay Conference Call Details:
Domestic Dial-In Number: (877) 344-7529
International Dial-In Number: (412) 317-0088
Canada Dial-In Number: (855) 669-9658
Conference ID: 10133084
Available July 24, 2019 (one hour
after the end of the conference call) to August 24, 2019 at 12:00
p.m. Eastern Time (9:00 a.m. Pacific
Time)
Financial Contact:
Robert A. Milligan
Chief Financial Officer
480.998.3478
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
(Unaudited)
|
|
|
June 30,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Real estate
investments:
|
|
|
|
Land
|
$
|
492,770
|
|
|
$
|
481,871
|
|
Building and
improvements
|
5,886,129
|
|
|
5,787,152
|
|
Lease
intangibles
|
598,022
|
|
|
599,864
|
|
Construction in
progress
|
8,907
|
|
|
4,903
|
|
|
6,985,828
|
|
|
6,873,790
|
|
Accumulated
depreciation and amortization
|
(1,324,281)
|
|
|
(1,208,169)
|
|
Real estate
investments, net
|
5,661,547
|
|
|
5,665,621
|
|
Investment in
unconsolidated joint venture
|
66,731
|
|
|
67,172
|
|
Cash and cash
equivalents
|
23,194
|
|
|
126,221
|
|
Restricted
cash
|
5,950
|
|
|
7,309
|
|
Receivables and other
assets, net
|
225,681
|
|
|
223,415
|
|
Right-of-use assets,
net
|
245,495
|
|
|
—
|
|
Other intangibles,
net
|
11,877
|
|
|
98,738
|
|
Total
assets
|
$
|
6,240,475
|
|
|
$
|
6,188,476
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Liabilities:
|
|
|
|
Debt
|
$
|
2,567,008
|
|
|
$
|
2,541,232
|
|
Accounts payable and
accrued liabilities
|
159,853
|
|
|
185,073
|
|
Security deposits,
prepaid rent and other liabilities
|
41,241
|
|
|
59,567
|
|
Lease
liabilities
|
200,842
|
|
|
—
|
|
Intangible
liabilities, net
|
40,529
|
|
|
61,146
|
|
Total
liabilities
|
3,009,473
|
|
|
2,847,018
|
|
Commitments and
contingencies
|
|
|
|
Redeemable
noncontrolling interests
|
—
|
|
|
6,544
|
|
Equity:
|
|
|
|
Preferred stock,
$0.01 par value; 200,000,000 shares authorized; none issued and
outstanding
|
—
|
|
|
—
|
|
Class A common
stock, $0.01 par value; 1,000,000,000 shares authorized;
205,117,620 and 205,267,349 shares issued and outstanding as of
June 30, 2019 and December 31, 2018, respectively
|
2,051
|
|
|
2,053
|
|
Additional paid-in
capital
|
4,521,103
|
|
|
4,525,969
|
|
Accumulated other
comprehensive (loss) income
|
(449)
|
|
|
307
|
|
Cumulative dividends
in excess of earnings
|
(1,369,763)
|
|
|
(1,272,305)
|
|
Total stockholders'
equity
|
3,152,942
|
|
|
3,256,024
|
|
Noncontrolling
interests
|
78,060
|
|
|
78,890
|
|
Total
equity
|
3,231,002
|
|
|
3,334,914
|
|
Total liabilities and
equity
|
$
|
6,240,475
|
|
|
$
|
6,188,476
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Rental
income
|
$
|
171,609
|
|
|
$
|
173,221
|
|
|
$
|
340,484
|
|
|
$
|
348,788
|
|
Interest and other
operating income
|
148
|
|
|
111
|
|
|
239
|
|
|
205
|
|
Total
revenues
|
171,757
|
|
|
173,332
|
|
|
340,723
|
|
|
348,993
|
|
Expenses:
|
|
|
|
|
|
|
|
Rental
|
52,938
|
|
|
53,553
|
|
|
104,406
|
|
|
109,575
|
|
General and
administrative
|
10,079
|
|
|
8,725
|
|
|
21,369
|
|
|
17,511
|
|
Transaction
|
296
|
|
|
396
|
|
|
336
|
|
|
587
|
|
Depreciation and
amortization
|
68,429
|
|
|
69,104
|
|
|
137,910
|
|
|
139,496
|
|
Interest
expense
|
24,006
|
|
|
26,305
|
|
|
47,976
|
|
|
52,558
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
4,606
|
|
Total
expenses
|
155,748
|
|
|
158,083
|
|
|
311,997
|
|
|
324,333
|
|
Loss on sale of real
estate, net
|
—
|
|
|
—
|
|
|
(37)
|
|
|
—
|
|
Income from
unconsolidated joint venture
|
548
|
|
|
403
|
|
|
1,034
|
|
|
973
|
|
Other
income
|
41
|
|
|
5
|
|
|
576
|
|
|
40
|
|
Net
income
|
$
|
16,598
|
|
|
$
|
15,657
|
|
|
$
|
30,299
|
|
|
$
|
25,673
|
|
Net income
attributable to noncontrolling interests
|
(339)
|
|
|
(311)
|
|
|
(600)
|
|
|
(525)
|
|
Net income
attributable to common stockholders
|
$
|
16,259
|
|
|
$
|
15,346
|
|
|
$
|
29,699
|
|
|
$
|
25,148
|
|
Earnings per
common share - basic:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
Earnings per
common share - diluted:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
205,108
|
|
|
205,241
|
|
|
205,094
|
|
|
205,155
|
|
Diluted
|
209,005
|
|
|
209,259
|
|
|
209,002
|
|
|
209,218
|
|
Dividends declared
per common share
|
$
|
0.310
|
|
|
$
|
0.305
|
|
|
$
|
0.620
|
|
|
$
|
0.610
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
30,299
|
|
|
$
|
25,673
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
132,931
|
|
|
135,177
|
|
Share-based
compensation expense
|
5,491
|
|
|
5,703
|
|
Impairment
|
—
|
|
|
4,606
|
|
Income from
unconsolidated joint venture
|
(1,034)
|
|
|
(973)
|
|
Distributions from
unconsolidated joint venture
|
1,335
|
|
|
975
|
|
Loss on sale of real
estate, net
|
37
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables and other
assets, net
|
457
|
|
|
(2,956)
|
|
Accounts payable and
accrued liabilities
|
(23,262)
|
|
|
(13,254)
|
|
Prepaid rent and
other liabilities
|
2,483
|
|
|
1,157
|
|
Net cash provided by
operating activities
|
148,737
|
|
|
156,108
|
|
Cash flows from
investing activities:
|
|
|
|
Investments in real
estate
|
(93,855)
|
|
|
(11,887)
|
|
Development of real
estate
|
(4,627)
|
|
|
(23,861)
|
|
Proceeds from the
sale of real estate
|
1,193
|
|
|
—
|
|
Capital
expenditures
|
(37,763)
|
|
|
(34,110)
|
|
Collection of real
estate notes receivable
|
365
|
|
|
347
|
|
Net cash used in
investing activities
|
(134,687)
|
|
|
(69,511)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
135,000
|
|
|
85,000
|
|
Payments on unsecured
revolving credit facility
|
(15,000)
|
|
|
(85,000)
|
|
Payments on secured
mortgage loans
|
(96,173)
|
|
|
(99,218)
|
|
Security
deposits
|
—
|
|
|
222
|
|
Proceeds from
issuance of common stock
|
—
|
|
|
72,814
|
|
Repurchase and
cancellation of common stock
|
(12,095)
|
|
|
(11,553)
|
|
Dividends
paid
|
(127,387)
|
|
|
(125,128)
|
|
Distributions paid to
noncontrolling interest of limited partners
|
(2,781)
|
|
|
(2,689)
|
|
Net cash used in
financing activities
|
(118,436)
|
|
|
(165,552)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(104,386)
|
|
|
(78,955)
|
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
133,530
|
|
|
118,560
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
|
29,144
|
|
|
$
|
39,605
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
$
|
16,598
|
|
|
$
|
15,657
|
|
|
$
|
30,299
|
|
|
$
|
25,673
|
|
General and
administrative expenses
|
10,079
|
|
|
8,725
|
|
|
21,369
|
|
|
17,511
|
|
Transaction
expenses
|
296
|
|
|
396
|
|
|
336
|
|
|
587
|
|
Depreciation and
amortization expense
|
68,429
|
|
|
69,104
|
|
|
137,910
|
|
|
139,496
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
4,606
|
|
Interest
expense
|
24,006
|
|
|
26,305
|
|
|
47,976
|
|
|
52,558
|
|
Loss on sale of real
estate, net
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
Income from
unconsolidated joint venture
|
(548)
|
|
|
(403)
|
|
|
(1,034)
|
|
|
(973)
|
|
Other
income
|
(41)
|
|
|
(5)
|
|
|
(576)
|
|
|
(40)
|
|
NOI
|
$
|
118,819
|
|
|
$
|
119,779
|
|
|
$
|
236,317
|
|
|
$
|
239,418
|
|
NOI percentage
growth
|
(0.8)
|
%
|
|
|
|
(1.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
NOI
|
$
|
118,819
|
|
|
$
|
119,779
|
|
|
$
|
236,317
|
|
|
$
|
239,418
|
|
Straight-line rent
adjustments, net
|
(2,464)
|
|
|
(2,377)
|
|
|
(5,722)
|
|
|
(5,543)
|
|
Amortization of
(below) and above market leases/leasehold interests, net and other
GAAP adjustments
|
(357)
|
|
|
55
|
|
|
(123)
|
|
|
176
|
|
Notes receivable
interest income
|
(25)
|
|
|
(34)
|
|
|
(52)
|
|
|
(70)
|
|
Cash NOI
|
$
|
115,973
|
|
|
$
|
117,423
|
|
|
$
|
230,420
|
|
|
$
|
233,981
|
|
Acquisitions not
owned/operated for all periods presented and disposed properties
Cash NOI
|
(1,457)
|
|
|
(5,002)
|
|
|
(2,413)
|
|
|
(10,216)
|
|
Redevelopment Cash
NOI
|
(845)
|
|
|
(1,784)
|
|
|
(1,951)
|
|
|
(3,505)
|
|
Intended for sale
Cash NOI
|
(1,194)
|
|
|
(1,317)
|
|
|
(2,250)
|
|
|
(2,706)
|
|
Same-Property Cash
NOI (1)
|
$
|
112,477
|
|
|
$
|
109,320
|
|
|
$
|
223,806
|
|
|
$
|
217,554
|
|
Same-Property Cash
NOI percentage growth
|
2.9
|
%
|
|
|
|
2.9
|
%
|
|
|
|
(1) Same-Property
includes 408 and 407 buildings for the three and six months ended
June 30, 2019 and 2018, respectively.
|
NOI is a non-GAAP financial measure that is defined as net
income or loss (computed in accordance with GAAP) before: (i)
general and administrative expenses; (ii) transaction expenses;
(iii) depreciation and amortization expense; (iv) impairment; (v)
interest expense and net change in fair value of derivative
financial instruments; (vi) gain or loss on sales of real estate;
(vii) gain or loss on extinguishment of debt; (viii) income or loss
from unconsolidated joint venture; and (ix) other income or
expense. HTA believes that NOI provides an accurate measure
of the operating performance of its operating assets because NOI
excludes certain items that are not associated with the management
of its properties. Additionally, HTA believes that NOI is a
widely accepted measure of comparative operating performance of
real estate investment trusts ("REITs"). However, HTA's use
of the term NOI may not be comparable to that of other REITs as
they may have different methodologies for computing this
amount. NOI should not be considered as an alternative to net
income or loss (computed in accordance with GAAP) as an indicator
of HTA's financial performance. NOI should be reviewed in
connection with other GAAP measurements.
Cash NOI is a non-GAAP financial measure which excludes from
NOI: (i) straight-line rent adjustments; (ii) amortization of below
and above market leases/leasehold interests and other GAAP
adjustments; and (iii) notes receivable interest income.
Contractual base rent, contractual rent increases, contractual rent
concessions and changes in occupancy or lease rates upon
commencement and expiration of leases are a primary driver of HTA's
revenue performance. HTA believes that Cash NOI, which
removes the impact of straight-line rent adjustments, provides
another measurement of the operating performance of its operating
assets. Additionally, HTA believes that Cash NOI is a widely
accepted measure of comparative operating performance of
REITs. However, HTA's use of the term Cash NOI may not be
comparable to that of other REITs as they may have different
methodologies for computing this amount. Cash NOI should not
be considered as an alternative to net income or loss (computed in
accordance with GAAP) as an indicator of its financial
performance. Cash NOI should be reviewed in connection with
other GAAP measurements.
To facilitate the comparison of Cash NOI between periods, HTA
calculates comparable amounts for a subset of its owned and
operational properties referred to as "Same-Property".
Same-Property Cash NOI excludes (i) properties which have not been
owned and operated by HTA during the entire span of all periods
presented and disposed properties, (ii) HTA's share of
unconsolidated joint ventures, (iii) development, redevelopment and
land parcels, (iv) properties intended for disposition in the near
term which have (a) been approved by the Board of Directors, (b)
are actively marketed for sale, and (c) an offer has been received
at prices HTA would transact and the sales process is ongoing, and
(v) certain non-routine items. Same-Property Cash NOI should
not be considered as an alternative to net income or loss (computed
in accordance with GAAP) as an indicator of its financial
performance. Same-Property Cash NOI should be reviewed in
connection with other GAAP measurements.
HEALTHCARE TRUST
OF AMERICA, INC.
|
FFO, NORMALIZED
FFO AND NORMALIZED FAD
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
attributable to common stockholders
|
$
|
16,259
|
|
|
$
|
15,346
|
|
|
$
|
29,699
|
|
|
$
|
25,148
|
|
Depreciation and
amortization expense related to investments in real
estate
|
67,846
|
|
|
68,585
|
|
|
136,772
|
|
|
138,441
|
|
Loss on sale of real
estate, net
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
4,606
|
|
Proportionate share
of joint venture depreciation and amortization
|
450
|
|
|
463
|
|
|
922
|
|
|
814
|
|
FFO attributable to
common stockholders
|
$
|
84,555
|
|
|
$
|
84,394
|
|
|
$
|
167,430
|
|
|
$
|
169,009
|
|
Transaction
expenses
|
296
|
|
|
252
|
|
|
336
|
|
|
443
|
|
Noncontrolling income
from OP units included in diluted shares
|
301
|
|
|
297
|
|
|
534
|
|
|
478
|
|
Other normalizing
items, net
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
Normalized FFO
attributable to common stockholders
|
$
|
85,152
|
|
|
$
|
85,087
|
|
|
$
|
168,300
|
|
|
$
|
170,074
|
|
Non-cash compensation
expense
|
2,102
|
|
|
2,224
|
|
|
5,491
|
|
|
5,703
|
|
Straight-line rent
adjustments, net
|
(2,464)
|
|
|
(2,377)
|
|
|
(5,722)
|
|
|
(5,543)
|
|
Amortization of
(below) and above market leases/leasehold interests and corporate
assets, net
|
325
|
|
|
559
|
|
|
657
|
|
|
1,310
|
|
Deferred revenue -
tenant improvement related and other income
|
(2)
|
|
|
(43)
|
|
|
(3)
|
|
|
(109)
|
|
Amortization of
deferred financing costs and debt discount/premium, net
|
1,407
|
|
|
1,291
|
|
|
2,812
|
|
|
2,580
|
|
Recurring capital
expenditures, tenant improvements and leasing
commissions
|
(13,402)
|
|
|
(14,511)
|
|
|
(25,264)
|
|
|
(25,861)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
73,118
|
|
|
$
|
72,230
|
|
|
$
|
146,271
|
|
|
$
|
148,154
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders per diluted share
|
$
|
0.08
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
FFO adjustments per
diluted share, net
|
0.32
|
|
|
0.33
|
|
|
0.66
|
|
|
0.69
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.80
|
|
|
$
|
0.81
|
|
Normalized FFO
adjustments per diluted share, net
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.00
|
|
Normalized FFO
attributable to common stockholders per diluted share
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.81
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
209,005
|
|
|
209,259
|
|
|
209,002
|
|
|
209,218
|
|
HTA computes FFO in accordance with the current standards
established by NAREIT. NAREIT defines FFO as net income or
loss attributable to common stockholders (computed in accordance
with GAAP), excluding gains or losses from sales of real estate
property and impairment write-downs of depreciable assets, plus
depreciation and amortization related to investments in real
estate, and after adjustments for unconsolidated partnerships and
joint ventures. Because FFO excludes depreciation and
amortization unique to real estate, among other items, it provides
a perspective not immediately apparent from net income or loss
attributable to common stockholders.
HTA computes Normalized FFO, which excludes from FFO: (i)
transaction expenses; (ii) gain or loss on extinguishment of debt;
(iii) noncontrolling income or loss from OP Units included in
diluted shares; and (iv) other normalizing items, which include
items that are unusual and infrequent in nature. HTA's
methodology for calculating Normalized FFO may be different from
the methods utilized by other REITs and, accordingly, may not be
comparable to other REITs.
HTA also computes Normalized FAD, which excludes from Normalized
FFO: (i) non-cash compensation expense; (ii) straight-line rent
adjustments; (iii) amortization of below and above market
leases/leasehold interests and corporate assets; (iv) deferred
revenue - tenant improvement related and other income; (v)
amortization of deferred financing costs and debt premium/discount;
and (vi) recurring capital expenditures, tenant improvements and
leasing commissions. HTA believes this non-GAAP financial
measure provides a meaningful supplemental measure of its operating
performance. Normalized FAD should not be considered as an
alternative to net income or loss attributable to common
stockholders (computed in accordance with GAAP) as an indicator of
its financial performance, nor is it indicative of cash available
to fund cash needs. Normalized FAD should be reviewed in
connection with other GAAP measurements.
HTA presents these non-GAAP financial measures because it
considers them important supplemental measures of its operating
performance and believes they are frequently used by securities
analysts, investors and other interested parties in the evaluation
of REITs. Historical cost accounting assumes that the value
of real estate assets diminishes ratably over time. Since
real estate values have historically risen or fallen based on
market conditions, many industry investors have considered the
presentation of operating results for real estate companies that
use historical cost accounting to be insufficient by
themselves. These non-GAAP financial measures should not be
considered as alternatives to net income or loss attributable to
common stockholders (computed in accordance with GAAP) as
indicators of its financial performance. FFO and Normalized
FFO is not indicative of cash available to fund cash needs.
These non-GAAP financial measures should be reviewed in connection
with other GAAP measurements.
HEALTHCARE TRUST
OF AMERICA, INC.
|
NET DEBT TO
ADJUSTED EBITDAre
|
(Unaudited and in
thousands)
|
|
|
Three Months
Ended
|
|
June 30,
2019
|
Net income
|
$
|
16,598
|
|
Interest
expense
|
24,006
|
|
Depreciation and
amortization expense
|
68,429
|
|
Proportionate share
of joint venture depreciation and amortization
|
450
|
|
EBITDAre
|
$
|
109,483
|
|
Transaction
expenses
|
296
|
|
Non-cash compensation
expense
|
2,102
|
|
Pro forma impact of
acquisitions
|
673
|
|
Adjusted
EBITDAre
|
$
|
112,554
|
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
450,216
|
|
|
|
As of June 30,
2019:
|
|
Debt
|
$
|
2,567,008
|
|
Less: cash and cash
equivalents
|
23,194
|
|
Net Debt
|
$
|
2,543,814
|
|
|
|
Net Debt to Adjusted
EBITDAre
|
5.7
|
x
|
As defined by NAREIT, EBITDAre is computed as net income
or loss (computed in accordance with GAAP) plus: (i) interest
expense; (ii) income tax expense (not applicable to HTA); (iii)
depreciation and amortization; (iv) impairment; (v) gain or loss on
the sale of real estate; and (vi) and the proportionate share of
joint venture depreciation and amortization.
Adjusted EBITDAre is presented on an assumed annualized
basis. HTA defines Adjusted EBITDAre as
EBITDAre (computed in accordance with NAREIT as defined
above) plus: (i) transaction expenses; (ii) gain or loss on
extinguishment of debt; (iii) non-cash compensation expense; (iv)
pro forma impact of its acquisitions/dispositions; and (v) other
normalizing items. HTA considers Adjusted EBITDAre an
important measure because it provides additional information to
allow management, investors, and its current and potential
creditors to evaluate and compare its core operating results and
its ability to service debt.
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SOURCE Healthcare Trust of America, Inc.