SCOTTSDALE, Ariz., Nov. 3, 2020 /PRNewswire/ -- Healthcare
Trust of America, Inc. (NYSE: HTA) ("HTA") announced results and
provided an update on business operations and activity for the
quarter ended September 30, 2020.
Recent Highlights
- Reported net loss attributable to common stockholders of
$0.03 per diluted share, which
included a $0.12 per share impact
from debt extinguishment costs.
- Reported FFO as defined by NAREIT of $0.31 per diluted share, which included a
$0.12 per share impact from debt
extinguishment costs.
- Reported Normalized FFO of $0.43
per diluted share, a record level of earnings for HTA.
- Reported Normalized FAD of $82.4
million, a record level for HTA.
- Raised our quarterly dividend for the 7th
consecutive year.
- Signed 1.1 million square feet of leases in the quarter.
Renewal releasing spreads were 7.4% on a cash basis, while same
property tenant retention was 89%.
- Cash rental collections within the period were equal to 102% of
3Q charges, including collections on prior period accounts
receivable. For 3Q charges only, we collected or deferred 99% of 3Q
rents.
- Reported Same-Property Cash Net Operating Income ("NOI") growth
of 0.5% compared to Q3 2019. Our same-property cash NOI in the
period was 2.5% excluding the impact of $2.4
million in free rent associated with the 500,000 SF of early
renewals signed in Q2 2020, of which 82% were with health systems
in our key markets.
- Completed our initial development started by HTA. This 127,000
SF Class A medical office building ("MOB") development in
Raleigh, NC is anchored by WakeMed
Health System and is currently 71% leased.
- Raised $800 million of senior
unsecured notes at a coupon of 2% per annum. Proceeds were used to
repay approximately $600 million of
existing debt. Combined with our outstanding forward equity of
$277.5 million, we now have over
$1.5 billion of available capital to
deploy.
Portfolio Performance
- Our portfolio had a leased rate of 90.1% by gross leasable area
("GLA") and an occupancy rate of 89.5% by GLA. HTA executed
approximately 1.1 million square feet of leases, including 155
thousand square feet of new leases and 946 thousand square feet of
renewals. Re-leasing spreads increased to 7.4% and tenant retention
for the Same-Property portfolio was 89% by GLA for Q3 2020.
- In Q3 2020, our total cash collections (including collections
on prior period receivables) totaled 102% of our Q3 charges. For Q3
charges only, we collected or deferred 99% of our total monthly
rents that are contractually due and owed, with cash collections
totaling approximately 97% of monthly rents. Our October
collections continue to be consistent with Q3.
- In total, we have approved deferral plans that total
approximately $11.0 million, of which
approximately $3.7 million have been
repaid through October 28, 2020. The
remainder are expected to be repaid within the next 6 to 12 months.
We have not approved any material deferrals in October.
Investment Activity
During the quarter, we completed and delivered a 127,000 SF,
Class A MOB within the Raleigh
metropolitan area in Cary, North
Carolina which replaced approximately 45,000 SF of Class B
MOBs on the site. The MOB is 71% leased, had incremental
construction costs of approximately $44
million, and is projected to yield between 7.75% and 8.0% on
construction costs upon full lease-up.
Our remaining 3 developments in California, Florida, and Texas continue to progress, and we anticipate
funding approximately $25 -
$30 million in Q4 in connection with
these developments which will be delivered between Q1 and Q3
2021.
In Q3 we acquired an on-campus MOB in Salt Lake City, Utah for $11.1M, consisting of 47,000 square feet which is
approximately 95% leased. We continue to see increased
momentum in our acquisition pipeline and anticipate transacting on
accretive investments in Q4 2020 and into 2021 utilizing capital
already raised, subject to our application of our normal investment
evaluation and diligence.
Capital Activity and Liquidity
- On September 14, 2020, HTA priced
$800 million of 2.00% senior
unsecured notes due to mature in March
2031, which settled on September 28,
2020. The net proceeds were utilized to redeem $300 million of our outstanding 3.70% 2023 notes,
pay down our revolver balance and pay off our remaining outstanding
secured debt. The remaining proceeds will be utilized for general
corporate purposes, including providing long-term financing to our
pending or completed acquisitions and developments.
- As of the end of the quarter, HTA had $277.5 million of equity to be settled on a
forward basis with the issuance of approximately 9.4 million shares
of common stock, subject to adjustment for costs to borrow under
the terms of the applicable equity distribution agreements.
- HTA ended Q3 2020 with total leverage of (i) 32.6%, measured as
debt less cash and cash equivalents to total capitalization, and
(ii) 5.7x net debt to Adjusted Earnings before Interest, Taxes,
Depreciation and Amortization for real estate ("Adjusted
EBITDAre"). Including the impact of the unsettled forward
equity agreements, leverage would be 29.4% and 5.1x,
respectively.
- HTA ended Q3 with total liquidity of $1.5 billion, inclusive of $1.0 billion available on our unsecured revolving
credit facility, $277.5 million of
unsettled equity forward transactions and $227.1 million of cash and cash equivalents. HTA
has no current debt due and no debt maturities until 2023.
Dividend
On September 22,2020, HTA's Board
of Directors announced a quarterly cash dividend of $0.320 per share of common stock and per
Operating Partnership Unit, paid on October
9, 2020 to stockholders of record on October 2, 2020. This marks the
7th consecutive year of dividend increases to our
shareholders.
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
25.1 million square feet of GLA, with $7.4
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 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; the availability of financing; and pandemics
and other health concerns, and the measures intended to prevent
their spread, including the currently ongoing COVID-19 pandemic,
and potential material adverse effect these may have on our
business, results of operations, cash flows and financial
condition. 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 Wednesday, November 4, 2020 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 nine months
ended September 30, 2020.
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: 10148974
Available November 4, 2020 (one hour
after the end of the conference call) to December 4, 2020 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)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Real estate
investments:
|
|
|
|
Land
|
$
|
587,363
|
|
|
$
|
584,546
|
|
Building and
improvements
|
6,385,863
|
|
|
6,252,854
|
|
Lease
intangibles
|
619,048
|
|
|
628,066
|
|
Construction in
progress
|
44,128
|
|
|
28,150
|
|
|
7,636,402
|
|
|
7,493,616
|
|
Accumulated
depreciation and amortization
|
(1,642,827)
|
|
|
(1,447,815)
|
|
Real estate
investments, net
|
5,993,575
|
|
|
6,045,801
|
|
Investment in
unconsolidated joint venture
|
64,756
|
|
|
65,888
|
|
Cash and cash
equivalents
|
227,138
|
|
|
32,713
|
|
Restricted
cash
|
4,108
|
|
|
4,903
|
|
Receivables and other
assets, net
|
239,641
|
|
|
237,024
|
|
Right-of-use assets -
operating leases, net
|
234,846
|
|
|
239,867
|
|
Other intangibles,
net
|
10,508
|
|
|
12,553
|
|
Total
assets
|
$
|
6,774,572
|
|
|
$
|
6,638,749
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Liabilities:
|
|
|
|
Debt
|
$
|
3,026,534
|
|
|
$
|
2,749,775
|
|
Accounts payable and
accrued liabilities
|
168,696
|
|
|
171,698
|
|
Derivative financial
instruments - interest rate swaps
|
16,697
|
|
|
29
|
|
Security deposits,
prepaid rent and other liabilities
|
56,263
|
|
|
49,174
|
|
Lease liabilities -
operating leases
|
198,445
|
|
|
198,650
|
|
Intangible
liabilities, net
|
33,586
|
|
|
38,779
|
|
Total
liabilities
|
3,500,221
|
|
|
3,208,105
|
|
Commitments and
contingencies
|
|
|
|
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;
218,566,057 and 216,453,312 shares issued and outstanding as of
September 30, 2020 and December 31, 2019,
respectively
|
2,186
|
|
|
2,165
|
|
Additional paid-in
capital
|
4,914,767
|
|
|
4,854,042
|
|
Accumulated other
comprehensive income
|
(18,747)
|
|
|
4,546
|
|
Cumulative dividends
in excess of earnings
|
(1,685,813)
|
|
|
(1,502,744)
|
|
Total stockholders'
equity
|
3,212,393
|
|
|
3,358,009
|
|
Noncontrolling
interests
|
61,958
|
|
|
72,635
|
|
Total
equity
|
3,274,351
|
|
|
3,430,644
|
|
Total liabilities and
equity
|
$
|
6,774,572
|
|
|
$
|
6,638,749
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Rental
income
|
$
|
187,258
|
|
|
$
|
174,844
|
|
|
$
|
551,459
|
|
|
$
|
515,328
|
|
Interest and other
operating income
|
68
|
|
|
160
|
|
|
488
|
|
|
399
|
|
Total
revenues
|
187,326
|
|
|
175,004
|
|
|
551,947
|
|
|
515,727
|
|
Expenses:
|
|
|
|
|
|
|
|
Rental
|
57,248
|
|
|
53,807
|
|
|
170,310
|
|
|
158,213
|
|
General and
administrative
|
10,670
|
|
|
9,788
|
|
|
32,348
|
|
|
31,157
|
|
Transaction
|
125
|
|
|
522
|
|
|
297
|
|
|
858
|
|
Depreciation and
amortization
|
75,892
|
|
|
73,820
|
|
|
228,484
|
|
|
211,730
|
|
Interest
expense
|
23,136
|
|
|
24,625
|
|
|
71,285
|
|
|
72,601
|
|
Total
expenses
|
167,071
|
|
|
162,562
|
|
|
502,724
|
|
|
474,559
|
|
Gain (loss) on sale of
real estate, net
|
—
|
|
|
—
|
|
|
1,991
|
|
|
(37)
|
|
Loss on extinguishment
of debt, net
|
(27,726)
|
|
|
(21,646)
|
|
|
(27,726)
|
|
|
(21,646)
|
|
Income from
unconsolidated joint venture
|
422
|
|
|
422
|
|
|
1,223
|
|
|
1,456
|
|
Other
income
|
117
|
|
|
205
|
|
|
290
|
|
|
781
|
|
Net (loss)
income
|
$
|
(6,932)
|
|
|
$
|
(8,577)
|
|
|
$
|
25,001
|
|
|
$
|
21,722
|
|
Net loss (income)
attributable to noncontrolling interests
|
105
|
|
|
114
|
|
|
(438)
|
|
|
(486)
|
|
Net (loss) income
attributable to common stockholders
|
$
|
(6,827)
|
|
|
$
|
(8,463)
|
|
|
$
|
24,563
|
|
|
$
|
21,236
|
|
Earnings per
common share - basic:
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
Earnings per
common share - diluted:
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
218,549
|
|
|
205,277
|
|
|
217,911
|
|
|
205,156
|
|
Diluted
|
218,549
|
|
|
205,277
|
|
|
221,521
|
|
|
209,026
|
|
Dividends declared
per common share
|
$
|
0.320
|
|
|
$
|
0.315
|
|
|
$
|
0.950
|
|
|
$
|
0.935
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
25,001
|
|
|
$
|
21,722
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
211,843
|
|
|
203,392
|
|
Share-based
compensation expense
|
7,135
|
|
|
7,828
|
|
Income from
unconsolidated joint venture
|
(1,223)
|
|
|
(1,456)
|
|
Distributions from
unconsolidated joint venture
|
2,455
|
|
|
2,225
|
|
(Gain) loss on sale of
real estate, net
|
(1,991)
|
|
|
37
|
|
Loss (gain) on
extinguishment of debt, net
|
27,726
|
|
|
21,646
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables and other
assets, net
|
3,282
|
|
|
(2,148)
|
|
Accounts payable and
accrued liabilities
|
(11,787)
|
|
|
(19,783)
|
|
Security deposits,
prepaid rent and other liabilities
|
7,227
|
|
|
4,919
|
|
Net cash provided by
operating activities
|
269,668
|
|
|
238,382
|
|
Cash flows from
investing activities:
|
|
|
|
Investments in real
estate
|
(52,553)
|
|
|
(223,168)
|
|
Development of real
estate
|
(49,479)
|
|
|
(14,253)
|
|
Proceeds from the sale
of real estate
|
6,420
|
|
|
1,193
|
|
Capital
expenditures
|
(59,016)
|
|
|
(59,533)
|
|
Collection of real
estate notes receivable
|
709
|
|
|
551
|
|
Advances on real
estate notes receivable
|
(6,000)
|
|
|
—
|
|
Net cash used in
investing activities
|
(159,919)
|
|
|
(295,210)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
1,329,862
|
|
|
365,000
|
|
Payments on unsecured
revolving credit facility
|
(1,429,862)
|
|
|
(350,000)
|
|
Proceeds from
unsecured senior notes
|
793,568
|
|
|
906,927
|
|
Payments on unsecured
senior notes
|
(300,000)
|
|
|
(700,000)
|
|
Payments on secured
mortgage loans
|
(114,060)
|
|
|
(96,765)
|
|
Deferred financing
costs
|
(6,532)
|
|
|
(6,954)
|
|
Debt extinguishment
costs
|
(25,938)
|
|
|
(18,383)
|
|
Proceeds from issuance
of common stock
|
50,020
|
|
|
51,804
|
|
Issuance of OP
Units
|
1,378
|
|
|
—
|
|
Repurchase and
cancellation of common stock
|
(5,094)
|
|
|
(12,159)
|
|
Dividends
paid
|
(205,880)
|
|
|
(190,853)
|
|
Distributions paid to
noncontrolling interest of limited partners
|
(3,581)
|
|
|
(7,503)
|
|
Net cash provided by
(used in) financing activities
|
83,881
|
|
|
(58,886)
|
|
Net change in cash,
cash equivalents and restricted cash
|
193,630
|
|
|
(115,714)
|
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
37,616
|
|
|
133,530
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
|
231,246
|
|
|
$
|
17,816
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net (loss)
income
|
$
|
(6,932)
|
|
|
$
|
(8,577)
|
|
|
$
|
25,001
|
|
|
$
|
21,722
|
|
General and
administrative expenses
|
10,670
|
|
|
9,788
|
|
|
32,348
|
|
|
31,157
|
|
Transaction
expenses
|
125
|
|
|
522
|
|
|
297
|
|
|
858
|
|
Depreciation and
amortization expense
|
75,892
|
|
|
73,820
|
|
|
228,484
|
|
|
211,730
|
|
Interest
expense
|
23,136
|
|
|
24,625
|
|
|
71,285
|
|
|
72,601
|
|
(Gain) loss on sale of
real estate, net
|
—
|
|
|
—
|
|
|
(1,991)
|
|
|
37
|
|
Loss on extinguishment
of debt, net
|
27,726
|
|
|
21,646
|
|
|
27,726
|
|
|
21,646
|
|
Income from
unconsolidated joint venture
|
(422)
|
|
|
(422)
|
|
|
(1,223)
|
|
|
(1,456)
|
|
Other
income
|
(117)
|
|
|
(205)
|
|
|
(290)
|
|
|
(781)
|
|
NOI
|
$
|
130,078
|
|
|
$
|
121,197
|
|
|
$
|
381,637
|
|
|
$
|
357,514
|
|
NOI percentage
growth
|
7.3
|
%
|
|
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
NOI
|
$
|
130,078
|
|
|
$
|
121,197
|
|
|
$
|
381,637
|
|
|
$
|
357,514
|
|
Straight-line rent
adjustments, net
|
(5,711)
|
|
|
(2,539)
|
|
|
(12,673)
|
|
|
(8,261)
|
|
Amortization of
(below) and above market leases/leasehold interests, net and other
GAAP adjustments (1)
|
(113)
|
|
|
(1,390)
|
|
|
(2,203)
|
|
|
(1,872)
|
|
Notes receivable
interest income
|
(11)
|
|
|
(23)
|
|
|
(152)
|
|
|
(75)
|
|
Other normalizing
adjustments (2)
|
—
|
|
|
—
|
|
|
5,031
|
|
|
—
|
|
Cash NOI
|
$
|
124,243
|
|
|
$
|
117,245
|
|
|
$
|
371,640
|
|
|
$
|
347,306
|
|
Acquisitions not
owned/operated for all periods presented and disposed properties
Cash NOI
|
(7,938)
|
|
|
(928)
|
|
|
(26,200)
|
|
|
(3,483)
|
|
Redevelopment Cash
NOI
|
57
|
|
|
(536)
|
|
|
387
|
|
|
(2,468)
|
|
Intended for sale Cash
NOI
|
(182)
|
|
|
(145)
|
|
|
(555)
|
|
|
(497)
|
|
Same-Property Cash
NOI (3)
|
$
|
116,180
|
|
|
$
|
115,636
|
|
|
$
|
345,272
|
|
|
$
|
340,858
|
|
Same-Property Cash
NOI percentage growth
|
0.5
|
%
|
|
|
|
1.3
|
%
|
|
|
|
(1) The presentation
includes certain adjustments to allow for the consistent treatment
of items impacted by Topic 842-Leases.
|
(2) Other normalizing
adjustments includes the following: Non-recurring bad debt of
$4,672 thousand, incremental hazard pay to facilities employees of
$314 thousand, and incremental personal protective equipment of $45
thousand for the nine months ended September 30, 2020. There
were no other normalizing adjustments for the three months ended
September 30, 2020.
|
(3) Same-Property
includes 417 and 412 buildings for the three and nine months ended
September 30, 2020 and 2019, 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; (iii) notes receivable interest income; and (iv) other
normalizing adjustments. 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net (loss) income
attributable to common stockholders
|
$
|
(6,827)
|
|
|
$
|
(8,463)
|
|
|
$
|
24,563
|
|
|
$
|
21,236
|
|
Depreciation and
amortization expense related to investments in real
estate
|
74,848
|
|
|
73,042
|
|
|
225,354
|
|
|
209,814
|
|
(Gain) loss on sale of
real estate, net
|
—
|
|
|
—
|
|
|
(1,991)
|
|
|
37
|
|
Proportionate share of
joint venture depreciation and amortization
|
468
|
|
|
468
|
|
|
1,443
|
|
|
1,390
|
|
FFO attributable to
common stockholders
|
$
|
68,489
|
|
|
$
|
65,047
|
|
|
$
|
249,369
|
|
|
$
|
232,477
|
|
Transaction
expenses
|
125
|
|
|
522
|
|
|
297
|
|
|
858
|
|
Loss on extinguishment
of debt, net
|
27,726
|
|
|
21,646
|
|
|
27,726
|
|
|
21,646
|
|
Noncontrolling (loss)
income from OP units included in diluted shares
|
(105)
|
|
|
(114)
|
|
|
438
|
|
|
420
|
|
Other normalizing
adjustments (1)
|
—
|
|
|
—
|
|
|
5,031
|
|
|
—
|
|
Normalized FFO
attributable to common stockholders
|
$
|
96,235
|
|
|
$
|
87,101
|
|
|
$
|
282,861
|
|
|
$
|
255,401
|
|
Non-cash compensation
expense
|
1,832
|
|
|
2,337
|
|
|
7,135
|
|
|
7,828
|
|
Straight-line rent
adjustments, net
|
(5,711)
|
|
|
(2,539)
|
|
|
(12,673)
|
|
|
(8,261)
|
|
Amortization of
(below) and above market leases/leasehold interests and corporate
assets, net
|
599
|
|
|
(612)
|
|
|
504
|
|
|
45
|
|
Deferred revenue -
tenant improvement related and other
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(4)
|
|
Amortization of
deferred financing costs and debt discount/premium, net
|
1,275
|
|
|
1,469
|
|
|
3,262
|
|
|
4,281
|
|
Recurring capital
expenditures, tenant improvements and leasing
commissions
|
(11,811)
|
|
|
(16,876)
|
|
|
(43,744)
|
|
|
(42,140)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
82,419
|
|
|
$
|
70,879
|
|
|
$
|
237,345
|
|
|
$
|
217,150
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common stockholders per diluted share
|
$
|
(0.03)
|
|
|
$
|
(0.04)
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
FFO adjustments per
diluted share, net
|
0.34
|
|
|
0.35
|
|
|
1.02
|
|
|
1.01
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
1.13
|
|
|
$
|
1.11
|
|
Normalized FFO
adjustments per diluted share, net
|
0.12
|
|
|
0.11
|
|
|
0.15
|
|
|
0.11
|
|
Normalized FFO
attributable to common stockholders per diluted share
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
$
|
1.28
|
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
222,101
|
|
|
209,072
|
|
|
221,521
|
|
|
209,026
|
|
|
(1) Other normalizing
adjustments includes the following: Non-recurring bad debt of
$4,672 thousand, incremental hazard pay to facilities employees of
$314 thousand, and incremental personal protective equipment of $45
thousand for the nine months ended September 30, 2020. There
were no other normalizing adjustments for the three months ended
September 30, 2020.
|
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 adjustments, 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
|
|
September 30,
2020
|
Net loss
|
$
|
(6,932)
|
|
Interest
expense
|
23,136
|
|
Depreciation and
amortization expense
|
75,892
|
|
Proportionate share of
joint venture depreciation and amortization
|
468
|
|
EBITDAre
|
$
|
92,564
|
|
Transaction
expenses
|
125
|
|
Loss on extinguishment
of debt, net
|
27,726
|
|
Non-cash compensation
expense
|
1,832
|
|
Pro forma impact of
acquisitions
|
235
|
|
Adjusted
EBITDAre
|
$
|
122,482
|
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
489,928
|
|
|
|
As of
September 30, 2020:
|
|
Debt
|
$
|
3,026,534
|
|
Less: cash and cash
equivalents
|
227,138
|
|
Net Debt
|
$
|
2,799,396
|
|
|
|
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 adjustments. 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.