SCOTTSDALE, Ariz., Aug. 30, 2019 /PRNewswire/ -- Healthcare
Trust of America, Inc. (NYSE:HTA or the "Company"), announced
investment activity of over $200
million in new development projects and acquisitions since
June 30, 2019. These include the
announcement of two on-campus medical office building ("MOB")
developments with total investments of approximately $85 to 90 million, and approximately $115 million of acquisitions closed in the third
quarter of 2019.
"These developments and acquisitions demonstrate HTA's continued
ability to find and create investment opportunities at attractive
yields with leading health systems in our key markets," stated
Founder, Chairman and CEO Scott D.
Peters. "The local knowledge and relationships generated
from our national operating platform gives us the access and
insight to make these investments with a focus on performing over
the short and long-term to generate shareholder value."
New Development Projects
HTA has reached agreements to develop two new on-campus MOBs with
leading health systems in HTA's existing markets. These
developments will total approximately 190,000 square feet of GLA
and will be developed at expected costs of $85 - $90 million.
The developments are expected to have commitments to lease of more
than 73% of the space prior to the start of construction, and are
being developed to anticipated stabilized yields of over 6.5%. The
projects include:
- Pavilion III MOB (Dallas, TX).
HTA will develop a Class A MOB with 107,000 square feet of GLA on
the new Medical City Heart Hospital and Spine Hospital campus
(formerly Forest Park). Construction
is expected to begin in the fourth quarter of 2019 and be completed
by the first quarter of 2021 at an expected cost of approximately
$55– $60 million, including
structured parking. This fee-simple development will support the
recent expansion of this health system campus that will provide
leading cardiac and orthopedic services to Dallas. HTA currently owns two existing MOBs
on this campus that are over 90% leased as of June 30, 2019. With this development, HTA's
investment on this campus will increase to over 300,000 square feet
of GLA of fee-simple, on-campus MOBs located in critical,
Dallas medical real estate. The
Company has also entered into a contract to purchase a 6 acre
parcel of land located immediately adjacent to the campus which it
intends to hold for future expansion.
- Memorial Hospital MOB (Bakersfield,
CA). HTA will develop a Class A MOB with 84,000 square foot
of GLA located on CommonSpirit's (formerly Dignity) Memorial
Hospital in Bakersfield, CA. This
MOB is expected to cost approximately $30
million to develop, with construction expected to begin in
the fourth quarter of 2019 and be completed by the first quarter of
2021. This development will expand HTA's relationship with
CommonSpirit to a 10th hospital campus and will bring
occupancy with HTA to over 470,000 square feet with this key health
system.
Recent Acquisitions
Between June 30, 2019 and the end of
August, HTA had closed on approximately $115
million of primarily on-campus MOBs in the quarter at
anticipated, in-place year-one yields of over 5.6%, prior to any
synergies from the Company's full service operating platform. These
MOBs have 262,000 square feet of GLA, are 94% leased as of the time
of acquisition, and are located in key markets that the Company
intends to grow over the long term. During 2019, HTA has now closed
on $208 million of acquisitions
totaling 527,000 square feet of GLA, with expected year one
contractual yields over 5.8%, before any operating synergies. These
properties are approximately 90% leased as of closing, and are well
located within dynamic submarkets in HTA's key markets. Over 74% of
the properties located on or adjacent to hospital campuses,
however, all of them were acquired on a fee-simple basis.
Third Quarter 2019 acquisitions include:
- Third Street Medical Center (Los
Angeles, CA). HTA acquired this Class A MOB with 147,000
square feet of GLA in August for $85.0
million. The MOB is 90% leased and is located in the heart
of downtown Los Angeles, adjacent
to the St. Vincent's Medical Center. The building features a
well-respected tenant roster including UCLA Health, Children's
Hospital Los Angeles, the internationally renowned House Ear
Institute, AltaMed and U.S. Renal Care. HTA's investment in the
greater Los Angeles/ Orange County market now totals more than
$325 million with over 700,000 square
feet of GLA, all of which is operated by HTA's property management
and building services platform.
- Fairfax Medical Office Building (Fairfax, VA). HTA acquired this MOB with
57,000 square feet of GLA in July for approximately $18.0 million. This building was 98% leased and
is located approximately 5 miles from our Inova Fair Oaks MOB in
the Washington D.C. metropolitan
statistical area. With this investment, HTA's portfolio in
Washington D.C. / Baltimore will increase to almost 340,000
square feet of GLA, allowing for HTA's local property management
and building services.
- Eagle Road Professional Center (Boise, ID). HTA acquired two MOBs totaling
57,000 square feet of GLA in August for approximately $11.0 million. The buildings are 100% occupied
and are located directly across the street from St. Luke's 430 bed
Meridian Hospital Campus. This represents HTA's first investment in
fast-growing Boise, which HTA has
identified for its long term potential.
About HTA
Healthcare Trust of America, Inc. (NYSE:
HTA) is the largest dedicated owner and operator of medical office
buildings in the United States,
comprising approximately 23.7 million square feet of GLA, with
$7.0 billion invested primarily in
medical office buildings as of June
30, 2019. 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. 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 and development 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 our senior management team and our ability to
attract and retain qualified key personnel;
- financial stability and solvency of HTA's tenants, including
the ability and willingness of HTA's tenants or borrowers to
satisfy their obligations under their respective contractual
arrangements with us;
- the ability and willingness of HTA's tenants to renew their
leases with us upon expiration of the leases or our ability to
reposition our properties on the same or better terms in the event
of nonrenewal or in the event we exercise our right to replace an
existing tenant;
- fluctuations in reimbursements from third party payors such as
Medicare and Medicaid;
- supply and demand for operating properties in the market areas
in which HTA operates;
- HTA's ability to acquire or develop real properties, and to
successfully operate those properties once acquired or
developed;
- changes in operating expenses of HTA's properties including,
but not limited to, expenditures for property taxes, property and
liability insurance premiums, and changes in utility rates;
- HTA's ability and the ability of our tenants to obtain and
maintain adequate property, liability and other insurance from
reputable, financially stable providers;
- restrictive covenants on certain of HTA's properties subject to
ground leases that may restrict or limit the uses of HTA's
properties and the types of tenants we are able to lease to, and
our resulting ability to attract new tenants;
- the impact from damage to HTA's properties from, or increased
operating costs associated with, catastrophic weather and other
natural events and the physical effects of climate change;
- legislative and regulatory changes, including changes to laws
governing the taxation of REITs and changes to laws governing the
healthcare industry;
- changes in interest rates, including changes as a result of the
potential phasing out of the London Inter-bank Offered Rate
("LIBOR");
- 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; 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.