SCOTTSDALE, Ariz., Jan. 12, 2021 /PRNewswire/ -- Healthcare
Trust of America, Inc. (NYSE:HTA or the "Company"), provided a
business update for 4Q 2020 which included the acquisition of over
$129 million of medical office
investments and the collection of more than 99% of contractual rent
due.
"We concluded 2020 and are starting 2021 with strong momentum on
the acquisition front, largely due to the long-term relationships
we have in our key markets," stated Chairman, President, and CEO
Scott D. Peters. "These acquisitions
are a testament of HTA's ability to leverage relationships with
health systems and local developers to drive investment
opportunities at attractive yields, in existing key markets where
we have in-place scale that we expect to see continued growth and
synergies."
Recent Investment Activity
During Q4 2020, HTA closed on approximately $129 million of medical office investments
primarily consisting of on-campus MOBs in the quarter at
anticipated, in-place year one yields of over 5.8%, prior to any
synergies from the Company's full service operating platform.
Including operating synergies, HTA anticipates year one yields of
over 5.9%. These MOBs have 386,000 square feet of GLA, are 95%
leased as of the time of acquisition, and are located in the
Company's existing key markets. During 2020, HTA has now closed on
over $181 million of acquisitions
totaling 600,000 square feet of GLA, with expected year one
contractual MOB yields at approximately 6.0%, before any operating
synergies. With operating synergies, HTA expects year one
contractual yield on these acquisitions of 6.2%. These properties
are approximately 94% leased as of closing, and are well located
within dynamic submarkets in HTA's key markets.
Acquisitions completed in 4Q20 include:
- Palmetto II Medical Office Building (Miami, FL). HTA acquired this MOB with 177,000
square feet of GLA in December 2020.
This building is 100% leased and is connected to Palmetto General
Hospital and adjacent to HTA's Palmetto Medical Plaza MOB. This
purchase increases our investment on this campus to over 300,000
square feet of GLA. Our portfolio in the Miami market is now approximately 1.2 million
square feet of GLA.
- Texas Tech MOB (El Paso, TX).
HTA acquired this 110,000 square foot MOB in December 2020. This MOB is 97% leased and is
located on the campus of Providence Hospital. The building is
anchored by Texas Tech University
Health System, which represents 65% of existing occupancy, and will
grow to 74% by the end of 2021. This purchase increases our
portfolio in the El Paso market to
approximately 475,000 square feet of GLA.
- Mount Carmel St. Ann's Medical Office Building (Westerville, OH). HTA acquired this 99,000
square foot MOB located in the Columbus,
Ohio submarket in December
2020. The MOB is 83% leased and is located on the campus of
Mt. Carmel St. Ann's Hospital. This purchase increases our
portfolio in the Columbus market
to approximately 500,000 square feet of GLA.
In addition, to these stabilized acquisitions, the Company also
disposed of an on-campus MOB in Kansas
City for approximately $17
million and acquired a fee-simple parcel of land adjacent to
a leading hospital in Houston for
approximately $10 million.
Rent Collections Update
- In Q4 2020, our total cash collections (including collections
on prior period receivables) totaled 103% of our Q4 charges (which
included scheduled deferral repayments). For Q4 charges only,
we collected approximately 99% of our total monthly rents that are
contractually due and owed, with negligible new amounts
deferred.
- In total, we have approved deferral plans that total
approximately $11.1 million, of which
approximately $7.3 million have been
repaid as of year-end. The remainder are expected to be repaid
within the next 6 to 9 months.
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 25.1 million square feet of GLA, with
$7.4 billion invested primarily in
medical office buildings as of September
30, 2020. 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. 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:
- the Company's ability to effectively deploy proceeds of
offerings of securities;
- 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;
- the Company's ability to acquire or develop real properties,
and to successfully operate those properties once acquired or
developed;
- pandemics and other health concerns, and the measures intended
to prevent their spread, including the currently ongoing COVID-19
pandemic;
- economic fluctuations in certain states in which the Company's
investments are geographically concentrated;
- financial stability and solvency of the Company's tenants,
including the ability and willingness of the Company's tenants or
borrowers to satisfy obligations under their respective contractual
arrangements with the Company and the potential inability of the
Company to enforce its rights under its leases during the pendency
of any pandemic;
- the ability and willingness of the Company's tenants to renew
their leases with the Company upon expiration of the leases or the
Company's ability to reposition its properties on the same or
better terms in the event of a nonrenewal or in the event the
Company exercises its 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 the Company operates;
- changes in operating expenses of the Company's properties
including, but not limited to, expenditures for property taxes,
property and liability insurance premiums, and utility rates;
- the Company's ability and the ability of its tenants to obtain
and maintain adequate property, liability and other insurance from
reputable, financial stable providers;
- restrictive covenants on certain of the Company's properties
subject to ground leases that may restrict or limit the uses of its
properties and the types of tenants the Company is able to lease
to, and the Company's ability to attract new tenants;
- the impact from damage to the Company's properties from, or
increased operating costs associated with, catastrophic weather and
other natural events and the physical effect of climate
change;
- retention of the Company's senior management team and its
ability to attract and retain qualified key personnel;
- legislative and regulatory changes, including changes to laws
governing the taxation of real estate investment trusts ("REITs")
and changes to laws governing the healthcare industry;
- changes in interest rates, including changes a as result of the
potential phasing out of the London Inter-bank Offered Rate
("LIBOR");
- the availability of capital and financing;
- restrictive covenants in the Company's credit facilities;
- changes in the Company'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.