SCOTTSDALE, Ariz., Feb. 13, 2020 /PRNewswire/ -- Healthcare Trust of
America, Inc. (NYSE: HTA) ("HTA") announced results for the quarter
and year ended December 31, 2019.
"In 2019, HTA grew its best-in-class portfolio with strategic
accretive investments in key markets, while continuing to build
strong tenant and health system relationships and strategic
partnerships," stated Chairman, CEO and President Scott D. Peters. "As we continue to be the
leader in the medical office building ("MOB") industry, HTA will
look ahead in 2020 for innovative ways to grow as a company and
continue to provide attractive returns for our stockholders."
Highlights
Fourth Quarter 2019:
- Net income Attributable to Common Stockholders was
$8.9 million, or $0.04 per diluted share, a decrease of
$(0.03) per diluted share, compared
to 2018.
- Funds From Operations ("FFO"), as defined by the
National Association of Real Estate Investment Trusts ("NAREIT"),
was $87.3 million, or $0.41 per diluted share, for Q4 2019. Due to the
adoption of Topic 842, certain initial direct costs are now
reported in general and administrative expenses. For Q4 2018, HTA
capitalized approximately $1.2
million of initial direct costs.
- Normalized FFO was $88.9
million, or $0.42 per diluted
share, for Q4 2019, an increase of $0.02, or 5.0%, per diluted share, compared to
2018.
- Normalized Funds Available for Distribution ("FAD") was
$72.3 million for Q4 2019.
- Same-Property Cash Net Operating Income ("NOI")
increased $2.8 million, or 2.5%, to
$114.9 million, compared to Q4 2018.
This included same-property rental revenue growth of 1.4%.
- Leasing: HTA's portfolio had a leased rate of 90.8% by
gross leasable area ("GLA") and an occupancy rate of 89.9% by GLA
for Q4 2019. During Q4 2019, HTA executed approximately 1.0 million
square feet of GLA of new and renewal leases. Re-leasing spreads
increased to 3.4% and tenant retention for the Same-Property
portfolio was 76% by GLA for Q4 2019.
Year Ended 2019:
- Net Income Attributable to Common Stockholders was
$30.2 million, or $0.14 per diluted share, a decrease of
$(0.88) per diluted share, compared
to 2018.
- FFO, as defined by NAREIT, was $319.7 million, or $1.53 per diluted share, for 2019 and includes a
$21.6 million, or $(0.10) per diluted share, loss related to the
extinguishment of debt. For 2018, HTA capitalized approximately
$4.9 million of initial direct
costs.
- Normalized FFO was $344.3
million, or $1.64 per diluted
share, for 2019, an increase of $0.02, or 1.2%, per diluted share, compared to
2018.
- Normalized FAD was $289.4
million for 2019.
- Same-Property Cash NOI increased $12.1 million, or 2.7%, to $450.9 million, compared to 2018. This included
same-property rental revenue growth of 2.3%.
- Leasing: During the year ended December 31, 2019, HTA executed approximately 3.6
million square feet of GLA of new and renewal leases, or over 14.6%
of the total GLA of its portfolio. Re-leasing spreads increased to
3.5% and tenant retention for the Same-Property portfolio was 83%
by GLA year-to-date.
Balance Sheet and Capital Markets
- Balance Sheet: HTA ended Q4 2019 with total liquidity of
$1.2 billion, inclusive of
$900.0 million available on our
unsecured revolving credit facility, $306.2
million of unsettled equity sold under forward agreements,
and $32.7 million of cash and cash
equivalents. HTA also had total leverage of (i) 28.9%, measured as
debt less cash and cash equivalents to total capitalization, and
(ii) debt less cash and cash equivalents to Adjusted Earnings
before Interest, Taxes, Depreciation and Amortization for real
estate ("Adjusted EBITDAre") of 5.7x. Including the impact
of the remaining forward equity to be settled, leverage would be
25% and 5.0x, respectively, using the definitions from above.
- Equity: During 2019, HTA issued a total of $637.6 million in equity, comprised of
approximately 21.6 million shares of common stock under its
at-the-market ("ATM") offering program on a forward basis at an
average price of $29.59, of which,
$584.9 million comprised of 19.7
million shares were issued in Q4 2019 at an average price of
$29.68. During 2019, HTA received net
proceeds of $323.4 million on 11.1
million shares that settled, of which net proceeds of $271.6 million for 9.3 million shares were
attributable to Q4 2019 settlements. Accordingly, we have
approximately 10.5 million shares expected to settle in 2020 for
net proceeds of $306.2 million,
subject to adjustment for costs to borrow under the terms of the
applicable equity distribution agreements.
- Debt: In 2019, Healthcare Trust of America Holdings, LP
("HTALP") and HTA completed two transactions:
-
- issued $900.0 million in senior,
unsecured notes with a weighted average interest rate of 3.04% per
annum and a weighted maturity of 9.5 years and used the net
proceeds from the issuance to redeem $700.0
million worth of senior notes and to pay down the unsecured
revolving credit facility. As part of these repayments, HTA
incurred debt extinguishment costs of approximately $21.6 million; and
- hedged $500 million of HTALP and
HTA's term loans at 2.44% which effectively fixed the interests
rates of the entire portfolio of the Company, except for the
revolving credit facility.
Noteworthy 2019 Activities
- Investments: In the quarter, HTA closed on $330 million of investments totaling
approximately 1.1 million square feet of GLA. For the year, HTA has
now closed $558 million of
investments totaling approximately 1.6 million square feet of GLA,
with expected year-one contractual yields of approximately 6.1%,
after operating synergies. These properties were approximately 93%
occupied as of closing, and are located within HTA's key markets.
Over 55% of these properties are located on or adjacent to hospital
campuses, and, all were acquired on a fee-simple basis.
- Development/Redevelopment: As of December 31, 2019, HTA had the following
development and redevelopment projects in place:
-
- Developments: During 2019, HTA announced agreements to develop
two new on-campus MOBs located in the key markets of Dallas, Texas and Bakersfield, California with anticipated costs
of approximately $90 million totaling
approximately 191,000 square feet of GLA. The new development
projects have anticipated yields of over 6.5%. In total, HTA now
has development projects of approximately $112 million totaling approximately 242,000
square feet of GLA and are expected to be more than 72% pre-leased
upon completion.
- Redevelopments: During 2019, HTA announced plans to redevelop
two MOBs located in Los Angeles,
California with estimated costs of approximately
$20 million totaling approximately
105,000 square feet of GLA. In total, HTA's redevelopment projects
have anticipated costs of approximately $64
million, covering approximately 230,000 square feet of
GLA.
- Dividends: On February 13,
2020, HTA's Board of Directors announced a quarterly cash
dividend of $0.315 per share of
common stock and per OP Unit. The quarterly dividend is to be paid
on April 9, 2020 to stockholders of
record of its common stock and holders of its OP Units on
April 2, 2020.
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 quarter and year ended 2018,
HTA capitalized $1.2 million and
$4.9 million, respectively, of
initial direct costs, certain of which, would now be expensed under
Topic 842. In addition, for the quarter and year ended 2018, HTA
recognized $3.4 million and
$13.9 million, respectively, of
tenant paid property taxes in both revenues and expenses and a
nominal amount of bad debt costs recognized as expenses.
2020 Guidance
HTA expects 2020 guidance to range as follows:
|
|
Annual
Expectations
|
|
|
Low
|
to
|
High
|
Net income
attributable to common stockholders per share
|
|
$0.32
|
|
$0.36
|
|
|
|
|
|
Same-Property Cash
NOI
|
|
2.0%
|
|
3.0%
|
|
|
|
|
|
FFO per share, as
defined by NAREIT
|
|
$1.68
|
|
$1.71
|
|
|
|
|
|
Normalized FFO per
share
|
|
$1.69
|
|
$1.73
|
The 2020 outlook guidance includes the following additional
assumptions: (i) $500 - $600 million of investments at a 5.5% to 6.25%
yield; (ii) $50 million of
dispositions at a 6.0% average yield; (iii) general and
administrative costs of $44 -
$46 million, and (iv) approximately
226 million diluted, common shares outstanding. HTA expects
leverage, measured as (i) debt less cash and cash equivalents to
total capitalization, and (ii) measured as debt less cash and cash
equivalents to Adjusted EBITDAre to remain stable
year-over-year.
HTA's 2020 guidance is based on a number of various assumptions
that are subject to change and many of which are outside the
control of the Company. Additionally, HTA's guidance does not
contemplate impacts from gains or losses from dispositions,
potential impairments, or debt extinguishment costs, if any.
If actual results vary from these assumptions, HTA's expectations
may change. There can be no assurance that HTA will achieve
these results.
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
24.8 million square feet of GLA, with $7.3
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 2019 Annual
Report on Form 10-K and in our filings with the SEC.
Conference Call
HTA will host a conference call and webcast on Friday, February 14, 2020 at 12:00 p.m. Eastern Time (10:00 a.m. Mountain Time) to review its financial
performance and operating results for the quarter and year ended
December 31, 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: 10139033
Available February 14, 2020 (one hour
after the end of the conference call) to March 14, 2020 at 12:00
p.m. Eastern Time (10:00 a.m.
Mountain Time)
Financial Contact:
Robert A. Milligan
Chief Financial Officer
480.998.3478
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited and in
thousands, except for share and per share data)
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
|
Real estate
investments:
|
|
|
|
|
Land
|
|
$
|
584,546
|
|
|
$
|
481,871
|
|
Building and
improvements
|
|
6,252,854
|
|
|
5,787,152
|
|
Lease
intangibles
|
|
628,066
|
|
|
599,864
|
|
Construction in
progress
|
|
28,150
|
|
|
4,903
|
|
|
|
7,493,616
|
|
|
6,873,790
|
|
Accumulated
depreciation and amortization
|
|
(1,447,815)
|
|
|
(1,208,169)
|
|
Real estate
investments, net
|
|
6,045,801
|
|
|
5,665,621
|
|
Investment in
unconsolidated joint venture
|
|
65,888
|
|
|
67,172
|
|
Cash and cash
equivalents
|
|
32,713
|
|
|
126,221
|
|
Restricted
cash
|
|
4,903
|
|
|
7,309
|
|
Receivables and other
assets, net
|
|
237,024
|
|
|
223,415
|
|
Right-of-use assets -
operating leases, net
|
|
239,867
|
|
|
—
|
|
Other intangibles,
net
|
|
12,553
|
|
|
98,738
|
|
Total
assets
|
|
$
|
6,638,749
|
|
|
$
|
6,188,476
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt
|
|
$
|
2,749,775
|
|
|
$
|
2,541,232
|
|
Accounts payable and
accrued liabilities
|
|
171,698
|
|
|
185,073
|
|
Security deposits,
prepaid rent and other liabilities
|
|
49,203
|
|
|
59,567
|
|
Lease liabilities -
operating leases
|
|
198,650
|
|
|
—
|
|
Intangible
liabilities, net
|
|
38,779
|
|
|
61,146
|
|
Total
liabilities
|
|
3,208,105
|
|
|
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;
216,453,312 and 205,267,349 shares issued and outstanding as of
December 31, 2019 and 2018, respectively
|
|
2,165
|
|
|
2,053
|
|
Additional paid-in
capital
|
|
4,854,042
|
|
|
4,525,969
|
|
Accumulated other
comprehensive income
|
|
4,546
|
|
|
307
|
|
Cumulative dividends
in excess of earnings
|
|
(1,502,744)
|
|
|
(1,272,305)
|
|
Total stockholders'
equity
|
|
3,358,009
|
|
|
3,256,024
|
|
Noncontrolling
interests
|
|
72,635
|
|
|
78,890
|
|
Total
equity
|
|
3,430,644
|
|
|
3,334,914
|
|
Total liabilities and
equity
|
|
$
|
6,638,749
|
|
|
$
|
6,188,476
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited and in
thousands, except per share data)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Rental
income
|
$
|
176,199
|
|
|
$
|
172,204
|
|
|
$
|
691,527
|
|
|
$
|
696,030
|
|
Interest and other
operating income
|
114
|
|
|
94
|
|
|
513
|
|
|
396
|
|
Total
revenues
|
176,313
|
|
|
172,298
|
|
|
692,040
|
|
|
696,426
|
|
Expenses:
|
|
|
|
|
|
|
|
Rental
|
53,266
|
|
|
55,253
|
|
|
211,479
|
|
|
220,617
|
|
General and
administrative
|
10,203
|
|
|
8,915
|
|
|
41,360
|
|
|
35,196
|
|
Transaction
|
1,492
|
|
|
70
|
|
|
2,350
|
|
|
1,003
|
|
Depreciation and
amortization
|
78,654
|
|
|
69,566
|
|
|
290,384
|
|
|
279,630
|
|
Interest
expense
|
24,031
|
|
|
24,457
|
|
|
96,632
|
|
|
101,849
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
8,887
|
|
Total
expenses
|
167,646
|
|
|
158,261
|
|
|
642,205
|
|
|
647,182
|
|
(Loss) gain on sale
of real estate, net
|
(117)
|
|
|
(395)
|
|
|
(154)
|
|
|
165,977
|
|
Gain (loss) on
extinguishment of debt, net
|
—
|
|
|
1,334
|
|
|
(21,646)
|
|
|
242
|
|
Income from
unconsolidated joint venture
|
426
|
|
|
330
|
|
|
1,882
|
|
|
1,735
|
|
Other
income
|
60
|
|
|
299
|
|
|
841
|
|
|
428
|
|
Net
income
|
$
|
9,036
|
|
|
$
|
15,605
|
|
|
$
|
30,758
|
|
|
$
|
217,626
|
|
Net income
attributable to noncontrolling interests
|
(118)
|
|
|
(276)
|
|
|
(604)
|
|
|
(4,163)
|
|
Net income
attributable to common stockholders
|
$
|
8,918
|
|
|
$
|
15,329
|
|
|
$
|
30,154
|
|
|
$
|
213,463
|
|
Earnings per
common share - basic:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.15
|
|
|
$
|
1.04
|
|
Earnings per
common share - diluted:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
1.02
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
207,395
|
|
|
206,409
|
|
|
205,720
|
|
|
206,065
|
|
Diluted
|
211,472
|
|
|
210,338
|
|
|
209,605
|
|
|
210,061
|
|
Dividends declared
per common share
|
$
|
0.315
|
|
|
$
|
0.310
|
|
|
$
|
1.250
|
|
|
$
|
1.230
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited and in
thousands)
|
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
|
30,758
|
|
|
$
|
217,626
|
|
|
$
|
65,577
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
280,969
|
|
|
271,441
|
|
|
239,044
|
|
Share-based
compensation expense
|
10,127
|
|
|
9,755
|
|
|
6,870
|
|
Impairment
|
—
|
|
|
8,887
|
|
|
13,922
|
|
Income from
unconsolidated joint venture
|
(1,882)
|
|
|
(1,735)
|
|
|
(782)
|
|
Distributions from
unconsolidated joint venture
|
3,030
|
|
|
2,665
|
|
|
750
|
|
Loss (gain) on sale
of real estate, net
|
154
|
|
|
(165,977)
|
|
|
(37,802)
|
|
Loss (gain) on
extinguishment of debt, net
|
21,646
|
|
|
(242)
|
|
|
11,192
|
|
Change in fair value
of derivative financial instruments
|
—
|
|
|
—
|
|
|
(884)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Receivables and other
assets, net
|
(12,857)
|
|
|
(17,558)
|
|
|
(33,295)
|
|
Accounts payable and
accrued liabilities
|
(128)
|
|
|
9,478
|
|
|
37,406
|
|
Prepaid rent and
other liabilities
|
8,577
|
|
|
3,056
|
|
|
5,545
|
|
Net cash provided by
operating activities
|
340,394
|
|
|
337,396
|
|
|
307,543
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Investments in real
estate
|
(553,298)
|
|
|
(17,389)
|
|
|
(2,383,581)
|
|
Investment in
unconsolidated joint venture
|
—
|
|
|
—
|
|
|
(68,839)
|
|
Development of real
estate
|
(28,066)
|
|
|
(34,270)
|
|
|
(25,191)
|
|
Proceeds from the
sale of real estate
|
4,880
|
|
|
305,135
|
|
|
80,640
|
|
Capital
expenditures
|
(91,544)
|
|
|
(77,870)
|
|
|
(64,833)
|
|
Collection of real
estate notes receivable
|
739
|
|
|
703
|
|
|
9,964
|
|
Advances on real
estate notes receivable
|
—
|
|
|
—
|
|
|
(3,256)
|
|
Net cash (used in)
provided by investing activities
|
(667,289)
|
|
|
176,309
|
|
|
(2,455,096)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
610,000
|
|
|
145,000
|
|
|
570,000
|
|
Payments on unsecured
revolving credit facility
|
(510,000)
|
|
|
(145,000)
|
|
|
(658,000)
|
|
Proceeds from
unsecured senior notes
|
906,927
|
|
|
—
|
|
|
900,000
|
|
Payments on unsecured
senior notes
|
(700,000)
|
|
|
—
|
|
|
—
|
|
Payments on secured
mortgage loans
|
(97,361)
|
|
|
(241,021)
|
|
|
(77,024)
|
|
Deferred financing
costs
|
(7,776)
|
|
|
(782)
|
|
|
(16,904)
|
|
Debt extinguishment
costs
|
(18,383)
|
|
|
(1,909)
|
|
|
(10,571)
|
|
Security
deposits
|
—
|
|
|
—
|
|
|
2,419
|
|
Proceeds from
issuance of common stock
|
323,393
|
|
|
72,814
|
|
|
1,746,956
|
|
Issuance of OP
Units
|
—
|
|
|
411
|
|
|
—
|
|
Repurchase and
cancellation of common stock
|
(12,178)
|
|
|
(70,319)
|
|
|
(3,413)
|
|
Dividends
paid
|
(256,117)
|
|
|
(252,651)
|
|
|
(207,087)
|
|
Distributions paid to
noncontrolling interest of limited partners
|
(8,758)
|
|
|
(5,278)
|
|
|
(5,308)
|
|
Sale of
noncontrolling interest
|
1,234
|
|
|
—
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
230,981
|
|
|
(498,735)
|
|
|
2,241,068
|
|
Net change in cash,
cash equivalents and restricted cash
|
(95,914)
|
|
|
14,970
|
|
|
93,515
|
|
Cash, cash
equivalents and restricted cash - beginning of year
|
133,530
|
|
|
118,560
|
|
|
25,045
|
|
Cash, cash
equivalents and restricted cash - end of year
|
$
|
37,616
|
|
|
$
|
133,530
|
|
|
$
|
118,560
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
|
(Unaudited and in
thousands)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
$
|
9,036
|
|
|
$
|
15,605
|
|
|
$
|
30,758
|
|
|
$
|
217,626
|
|
General and
administrative expenses
|
10,203
|
|
|
8,915
|
|
|
41,360
|
|
|
35,196
|
|
Transaction
expenses
|
1,492
|
|
|
70
|
|
|
2,350
|
|
|
1,003
|
|
Depreciation and
amortization expense
|
78,654
|
|
|
69,566
|
|
|
290,384
|
|
|
279,630
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
8,887
|
|
Interest
expense
|
24,031
|
|
|
24,457
|
|
|
96,632
|
|
|
101,849
|
|
Loss (gain) on sale
of real estate, net
|
117
|
|
|
395
|
|
|
154
|
|
|
(165,977)
|
|
(Gain) loss on
extinguishment of debt, net
|
—
|
|
|
(1,334)
|
|
|
21,646
|
|
|
(242)
|
|
Income from
unconsolidated joint venture
|
(426)
|
|
|
(330)
|
|
|
(1,882)
|
|
|
(1,735)
|
|
Other
income
|
(60)
|
|
|
(299)
|
|
|
(841)
|
|
|
(428)
|
|
NOI
|
$
|
123,047
|
|
|
$
|
117,045
|
|
|
$
|
480,561
|
|
|
$
|
475,809
|
|
NOI percentage
growth
|
5.1
|
%
|
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
NOI
|
$
|
123,047
|
|
|
$
|
117,045
|
|
|
$
|
480,561
|
|
|
$
|
475,809
|
|
Straight-line rent
adjustments, net
|
(1,600)
|
|
|
(2,394)
|
|
|
(9,861)
|
|
|
(10,683)
|
|
Amortization of
(below) and above market leases/leasehold interests, net and other
GAAP adjustments
|
(394)
|
|
|
26
|
|
|
(1,534)
|
|
|
99
|
|
Notes receivable
interest income
|
(21)
|
|
|
(30)
|
|
|
(96)
|
|
|
(131)
|
|
Cash NOI
|
$
|
121,032
|
|
|
$
|
114,647
|
|
|
$
|
469,070
|
|
|
$
|
465,094
|
|
Acquisitions not
owned/operated for all periods presented and disposed properties
Cash NOI
|
(5,078)
|
|
|
(31)
|
|
|
(10,278)
|
|
|
(14,175)
|
|
Redevelopment Cash
NOI
|
308
|
|
|
(1,281)
|
|
|
(2,653)
|
|
|
(6,457)
|
|
Intended for sale
Cash NOI
|
(1,330)
|
|
|
(1,242)
|
|
|
(5,227)
|
|
|
(5,606)
|
|
Same-Property Cash
NOI (1)
|
$
|
114,932
|
|
|
$
|
112,093
|
|
|
$
|
450,912
|
|
|
$
|
438,856
|
|
Same-Property Cash
NOI percentage growth
|
2.5
|
%
|
|
|
|
2.7
|
%
|
|
|
|
(1) Same-Property
includes 410 and 405 buildings for the three months and year ended
December 31, 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; (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
|
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
attributable to common stockholders
|
$
|
8,918
|
|
|
$
|
15,329
|
|
|
$
|
30,154
|
|
|
$
|
213,463
|
|
Depreciation and
amortization expense related to investments in real
estate
|
77,758
|
|
|
69,001
|
|
|
287,572
|
|
|
277,446
|
|
Loss (gain) on sale
of real estate, net
|
117
|
|
|
395
|
|
|
154
|
|
|
(165,977)
|
|
Impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
8,887
|
|
Proportionate share
of joint venture depreciation and amortization
|
468
|
|
|
469
|
|
|
1,858
|
|
|
1,746
|
|
FFO attributable to
common stockholders
|
$
|
87,261
|
|
|
$
|
85,194
|
|
|
$
|
319,738
|
|
|
$
|
335,565
|
|
Transaction
expenses
|
1,492
|
|
|
70
|
|
|
2,350
|
|
|
859
|
|
(Gain) loss on
extinguishment of debt, net
|
—
|
|
|
(1,334)
|
|
|
21,646
|
|
|
(242)
|
|
Noncontrolling income
from OP units included in diluted shares
|
118
|
|
|
252
|
|
|
538
|
|
|
4,074
|
|
Other normalizing
items, net
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
Normalized FFO
attributable to common stockholders
|
$
|
88,871
|
|
|
$
|
84,182
|
|
|
$
|
344,272
|
|
|
$
|
340,400
|
|
Non-cash compensation
expense
|
2,299
|
|
|
1,925
|
|
|
10,127
|
|
|
9,755
|
|
Straight-line rent
adjustments, net
|
(1,600)
|
|
|
(2,394)
|
|
|
(9,861)
|
|
|
(10,683)
|
|
Amortization of
(below) and above market leases/leasehold interests and corporate
assets, net
|
(580)
|
|
|
592
|
|
|
(535)
|
|
|
2,401
|
|
Deferred revenue -
tenant improvement related and other
|
(1)
|
|
|
(300)
|
|
|
(5)
|
|
|
(499)
|
|
Amortization of
deferred financing costs and debt discount/premium, net
|
935
|
|
|
1,403
|
|
|
5,216
|
|
|
5,260
|
|
Recurring capital
expenditures, tenant improvements and leasing
commissions
|
(17,663)
|
|
|
(17,117)
|
|
|
(59,803)
|
|
|
(61,375)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
72,261
|
|
|
$
|
68,291
|
|
|
$
|
289,411
|
|
|
$
|
285,259
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders per diluted share
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.14
|
|
|
$
|
1.02
|
|
FFO adjustments per
diluted share, net
|
0.37
|
|
|
0.34
|
|
|
1.39
|
|
|
0.58
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
1.53
|
|
|
$
|
1.60
|
|
Normalized FFO
adjustments per diluted share, net
|
0.01
|
|
|
(0.01)
|
|
|
0.11
|
|
|
0.02
|
|
Normalized FFO
attributable to common stockholders per diluted share
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
$
|
1.64
|
|
|
$
|
1.62
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
211,472
|
|
|
210,338
|
|
|
209,605
|
|
|
210,061
|
|
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
|
|
December 31,
2019
|
Net income
|
$
|
9,036
|
Interest
expense
|
24,031
|
Depreciation and
amortization expense
|
78,654
|
Loss on sale of real
estate, net
|
117
|
Proportionate share
of joint venture depreciation and amortization
|
468
|
EBITDAre
|
$
|
112,306
|
Transaction
expenses
|
1,492
|
Non-cash compensation
expense
|
2,299
|
Pro forma impact of
acquisitions/dispositions
|
3,909
|
Adjusted
EBITDAre
|
$
|
120,006
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
480,024
|
|
|
As of December 31,
2019:
|
|
Debt
|
$
|
2,749,775
|
Less: cash and cash
equivalents
|
32,713
|
Net Debt
|
$
|
2,717,062
|
|
|
Net Debt to Adjusted
EBITDAre
|
5.7x
|
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) 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.