SCOTTSDALE, Ariz, May 6, 2021 /PRNewswire/ -- Healthcare Trust of
America, Inc. (NYSE: HTA) ("HTA") announced results for the three
months ended March 31, 2021.
First Quarter 2021 Highlights:
- Reported net income attributable to common stockholders of
$0.10 per diluted share.
- Reported Funds From Operations ("FFO") as defined by NAREIT of
$0.44 per diluted share, a record
level of earnings for HTA, and an increase of 4.8% compared to Q1
2020.
- Reported Normalized FFO of $0.44
per diluted share, a record level of earnings for HTA, and an
increase of 4.8% compared to Q1 2020.
- Reported Normalized FAD of $88.8
million, a record level for HTA, and an increase of 14.7%
compared to Q1 2020.
- Reported Same-Property Cash Net Operating Income ("NOI") growth
of 1.6% compared to Q1 2020.
Portfolio Performance
- As of March 31, 2021, our portfolio had a leased rate of
89.2% by gross leasable area ("GLA") and an occupancy rate of 87.9%
by GLA.
- HTA executed leases of approximately 0.7 million square feet of
GLA, including 209 thousand square feet of GLA in new leases and
496 thousand square feet of GLA in renewals. Re-leasing
spreads increased to 3.1% and tenant retention for the
Same-Property portfolio was 66% by GLA.
- Of the approximately $11.1
million in COVID-related rent deferral plans approved in
2020, approximately $9.2 million have
been repaid as of March 31, 2021. The
remainder is expected to be paid before the end of 2021, and so far
in 2021, we have not approved any new material COVID-related
deferrals.
Investment Activity
- During the quarter, HTA closed on $32.5
million of medical office investments totaling approximately
117 thousand square feet of GLA with initial yields of
5.8%. These investments were approximately 95% leased as of
closing and are located within HTA's key markets of Raleigh-Durham, North Carolina and
Columbus, Ohio. Subsequent to the
quarter, we closed on or executed exclusive letters of intent on
investments totaling approximately $154
million at initial yields between 5.5% and 6.0%. These
investments are expected to close in Q2 and are subject to
customary closing conditions.
- As of today, we have substantially completed both our 51,000
square feet of GLA development in Miami,
Florida, adjacent to Jackson South Hospital and our 84,000
square feet of GLA development in Bakersfield, California, adjacent to
CommonSpirit's Memorial Hospital. These developments total
approximately $51 million of total
investment and are currently 82% leased with cash rents commencing
in Q3 2021. Our 109,000 square feet of GLA development in
Dallas, Texas remains on schedule
for completion in Q3 2021 and is currently 74% pre-leased. We
have three additional development opportunities totaling over
300,000 square feet of GLA located in our key markets that are
currently in the pre-leasing phase.
- As of today, we have substantially completed the renovation of
our Mission Medical Center MOB I & II located on the campus of
St. Joseph's Hospital - Mission
Viejo. These properties total 105,000 square feet of GLA and
are currently 30% leased.
- As of March 31, 2021, we were under contract to sell a 13
property portfolio located in Tennessee and Virginia, with an estimated gross sales price
of $67.5 million, subject to
customary closing conditions. The portfolio was classified as
held for sale as of March 31, 2021 in
accordance with applicable accounting guidance. We anticipate
this transaction to close in Q2 2021.
Capital Activity and Liquidity
- HTA ended Q1 2021 with total leverage of (i) 32.8%, measured as
debt less cash and cash equivalents to total capitalization, and
(ii) 5.9x 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 29.8% and 5.4x,
respectively.
- HTA ended Q1 with total liquidity of $1.3 billion, inclusive of $1.0 billion available on our unsecured revolving
credit facility, $277.5 million of
unsettled equity forward transactions and $30.0 million of cash and cash equivalents.
- 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.
Dividend
On March 15, 2021, HTA's Board of
Directors announced a quarterly cash dividend of $0.320 per share of common stock, and per
Healthcare Trust of America Holdings, LP Operating Partnership
Unit, paid on April 12, 2021 to
stockholders of record on April 2,
2021.
2021 Guidance:
HTA has tightened the lower end of its
earnings range and has updated its 2021 guidance to range as
follows:
|
|
Annual
Expectations
|
|
|
Low
|
to
|
High
|
Net income
attributable to common stockholders per share
|
|
$0.32
|
|
$0.40
|
|
|
|
|
|
Same-Property Cash
NOI
|
|
2.0%
|
|
3.0%
|
|
|
|
|
|
FFO per share, as
defined by NAREIT
|
|
$1.70
|
|
$1.77
|
|
|
|
|
|
Normalized FFO per
share
|
|
$1.73
|
|
$1.79
|
The updated 2021 outlook guidance includes the following
additional assumptions:
- $300 - $600 million of investments at an average 5.5% to
6.0% yield;
- $65 - $100
million of dispositions at a 5.0% to 7.0% yield;
- general and administrative costs of $43 - $46
million;
- average fully diluted shares of between 226 and 229 million
fully diluted shares of common stock outstanding, with proceeds
from equity previously raised on a forward basis being utilized to
fund acquisitions as they close; and
- developments being substantially completed as planned.
- The lower end of the range assumes settlement of forward equity
agreements without deployment of cash proceeds for
investments.
- 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 range
between 5.5x and 6.0x throughout the year.
HTA's 2021 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, with assets comprising approximately 25.6 million
square feet of GLA, and with $7.5
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 generally 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. We believe 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; pandemics and
other health concerns, and the measures intended to prevent their
spread, including the currently ongoing COVID-19 pandemic; and the
potential material adverse effect these matters 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 2021 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, May 7, 2021 at
1:00 p.m. Eastern Time (10:00 a.m. Pacific Time) to review its financial
performance and operating results for the three months ended
March 31, 2021.
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: 10155449
Available May 7, 2021 (one hour after
the end of the conference call) to June 7,
2021 at 1:00 p.m. Eastern Time
(10:00 a.m. Pacific Time)
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Real estate
investments:
|
|
|
|
|
Land
|
|
$
|
596,084
|
|
|
$
|
596,269
|
|
Building and
improvements
|
|
6,500,503
|
|
|
6,507,816
|
|
Lease
intangibles
|
|
617,774
|
|
|
628,621
|
|
Construction in
progress
|
|
95,341
|
|
|
80,178
|
|
|
|
7,809,702
|
|
|
7,812,884
|
|
Accumulated
depreciation and amortization
|
|
(1,738,056)
|
|
|
(1,702,719)
|
|
Real estate
investments, net
|
|
6,071,646
|
|
|
6,110,165
|
|
Assets held for sale,
net
|
|
36,098
|
|
|
—
|
|
Investment in
unconsolidated joint venture
|
|
63,972
|
|
|
64,360
|
|
Cash and cash
equivalents
|
|
29,990
|
|
|
115,407
|
|
Restricted
cash
|
|
3,096
|
|
|
3,358
|
|
Receivables and other
assets, net
|
|
251,558
|
|
|
251,728
|
|
Right-of-use assets -
operating leases, net
|
|
230,708
|
|
|
235,223
|
|
Other intangibles,
net
|
|
9,523
|
|
|
10,451
|
|
Total
assets
|
|
$
|
6,696,591
|
|
|
$
|
6,790,692
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt
|
|
$
|
3,027,732
|
|
|
$
|
3,026,999
|
|
Accounts payable and
accrued liabilities
|
|
159,226
|
|
|
200,358
|
|
Liabilities of assets
held for sale
|
|
3,375
|
|
|
—
|
|
Derivative financial
instruments - interest rate swaps
|
|
12,222
|
|
|
14,957
|
|
Security deposits,
prepaid rent and other liabilities
|
|
78,433
|
|
|
82,553
|
|
Lease liabilities -
operating leases
|
|
195,338
|
|
|
198,367
|
|
Intangible
liabilities, net
|
|
31,278
|
|
|
32,539
|
|
Total
liabilities
|
|
3,507,604
|
|
|
3,555,773
|
|
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;
218,823,963 and 218,578,012 shares issued and outstanding as of
March 31,
2021 and December 31, 2020, respectively
|
|
2,188
|
|
|
2,186
|
|
Additional paid-in
capital
|
|
4,917,126
|
|
|
4,916,784
|
|
Accumulated other
comprehensive loss
|
|
(14,231)
|
|
|
(16,979)
|
|
Cumulative dividends
in excess of earnings
|
|
(1,775,745)
|
|
|
(1,727,752)
|
|
Total stockholders'
equity
|
|
3,129,338
|
|
|
3,174,239
|
|
Noncontrolling
interests
|
|
59,649
|
|
|
60,680
|
|
Total
equity
|
|
3,188,987
|
|
|
3,234,919
|
|
Total liabilities and
equity
|
|
$
|
6,696,591
|
|
|
$
|
6,790,692
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
Rental
income
|
$
|
191,350
|
|
|
$
|
185,531
|
|
Interest and other
operating income
|
143
|
|
|
245
|
|
Total
revenues
|
191,493
|
|
|
185,776
|
|
Expenses:
|
|
|
|
Rental
|
59,579
|
|
|
56,862
|
|
General and
administrative
|
10,560
|
|
|
11,518
|
|
Transaction
|
96
|
|
|
140
|
|
Depreciation and
amortization
|
76,274
|
|
|
77,665
|
|
Interest
expense
|
22,986
|
|
|
23,872
|
|
Total
expenses
|
169,495
|
|
|
170,057
|
|
Gain on sale of real
estate, net
|
—
|
|
|
1,991
|
|
Income from
unconsolidated joint venture
|
392
|
|
|
422
|
|
Other
income
|
3
|
|
|
76
|
|
Net
income
|
$
|
22,393
|
|
|
$
|
18,208
|
|
Net income
attributable to noncontrolling interests
|
(363)
|
|
|
(307)
|
|
Net income
attributable to common stockholders
|
$
|
22,030
|
|
|
$
|
17,901
|
|
Earnings per
common share - basic:
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.10
|
|
|
$
|
0.08
|
|
Earnings per
common share - diluted:
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.10
|
|
|
$
|
0.08
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
218,753
|
|
|
216,692
|
|
Diluted
|
222,268
|
|
|
220,623
|
|
Dividends declared
per common share
|
$
|
0.320
|
|
|
$
|
0.315
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
22,393
|
|
|
$
|
18,208
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
71,671
|
|
|
72,949
|
|
Share-based
compensation expense
|
3,337
|
|
|
3,203
|
|
Income from
unconsolidated joint venture
|
(392)
|
|
|
(422)
|
|
Distributions from
unconsolidated joint venture
|
785
|
|
|
885
|
|
Gain on sale of real
estate, net
|
—
|
|
|
(1,991)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables and other
assets, net
|
2,275
|
|
|
1,196
|
|
Accounts payable and
accrued liabilities
|
(27,613)
|
|
|
(19,662)
|
|
Security deposits,
prepaid rent and other liabilities
|
(7,103)
|
|
|
1,055
|
|
Net cash provided by
operating activities
|
65,353
|
|
|
75,421
|
|
Cash flows from
investing activities:
|
|
|
|
Investments in real
estate
|
(30,472)
|
|
|
(41,338)
|
|
Development of real
estate
|
(17,096)
|
|
|
(12,103)
|
|
Proceeds from the sale
of real estate
|
—
|
|
|
6,420
|
|
Capital
expenditures
|
(28,931)
|
|
|
(23,793)
|
|
Collection of real
estate notes receivable
|
200
|
|
|
191
|
|
Advances on real
estate notes receivable
|
—
|
|
|
(6,000)
|
|
Net cash used in
investing activities
|
(76,299)
|
|
|
(76,623)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
15,000
|
|
|
720,000
|
|
Payments on unsecured
revolving credit facility
|
(15,000)
|
|
|
(415,000)
|
|
Payments on secured
mortgage loans
|
—
|
|
|
(95,602)
|
|
Proceeds from issuance
of common stock
|
—
|
|
|
50,020
|
|
Repurchase and
cancellation of common stock
|
(3,248)
|
|
|
(4,624)
|
|
Dividends
paid
|
(70,000)
|
|
|
(68,227)
|
|
Distributions paid to
noncontrolling interest of limited partners
|
(1,485)
|
|
|
(1,509)
|
|
Net cash (used in)
provided by financing activities
|
(74,733)
|
|
|
185,058
|
|
Net change in cash,
cash equivalents and restricted cash
|
(85,679)
|
|
|
183,856
|
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
118,765
|
|
|
37,616
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
|
33,086
|
|
|
$
|
221,472
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Net income
|
$
|
22,393
|
|
|
$
|
18,208
|
|
General and
administrative expenses
|
10,560
|
|
|
11,518
|
|
Transaction
expenses
|
96
|
|
|
140
|
|
Depreciation and
amortization expense
|
76,274
|
|
|
77,665
|
|
Interest
expense
|
22,986
|
|
|
23,872
|
|
Gain on sale of real
estate, net
|
—
|
|
|
(1,991)
|
|
Income from
unconsolidated joint venture
|
(392)
|
|
|
(422)
|
|
Other
income
|
(3)
|
|
|
(76)
|
|
NOI
|
$
|
131,914
|
|
|
$
|
128,914
|
|
NOI percentage
growth
|
2.3
|
%
|
|
|
|
|
|
|
NOI
|
$
|
131,914
|
|
|
$
|
128,914
|
|
Straight-line rent
adjustments, net
|
(3,774)
|
|
|
(3,245)
|
|
Amortization of
(below) and above market leases/leasehold interests, net and
other
GAAP adjustments
|
(475)
|
|
|
(1,699)
|
|
Notes receivable
interest income
|
(6)
|
|
|
(138)
|
|
Cash NOI
|
$
|
127,659
|
|
|
$
|
123,832
|
|
Acquisitions not
owned/operated for all periods presented and disposed properties
Cash
NOI
|
(3,378)
|
|
|
(565)
|
|
Redevelopment Cash
NOI
|
(410)
|
|
|
(914)
|
|
Intended for sale Cash
NOI (1)
|
(881)
|
|
|
(1,267)
|
|
Same-Property Cash
NOI (2)
|
$
|
122,990
|
|
|
$
|
121,086
|
|
Same-Property Cash
NOI percentage growth
|
1.6
|
%
|
|
|
|
|
|
|
(1) Relates to properties currently under contract for sale that
remain subject to customary due diligence and closing conditions
and are not guaranteed to transact.
(2) Same-Property includes 429 buildings for three months ended
March 31, 2021 and 2020,
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
March 31,
|
|
2021
|
|
2020
|
Net income
attributable to common stockholders
|
$
|
22,030
|
|
|
$
|
17,901
|
|
Depreciation and
amortization expense related to investments in real
estate
|
75,331
|
|
|
76,737
|
|
Gain on sale of real
estate, net
|
—
|
|
|
(1,991)
|
|
Proportionate share of
joint venture depreciation and amortization
|
488
|
|
|
467
|
|
FFO attributable to
common stockholders
|
$
|
97,849
|
|
|
$
|
93,114
|
|
Transaction
expenses
|
96
|
|
|
140
|
|
Noncontrolling income
from OP units included in diluted shares
|
363
|
|
|
307
|
|
Normalized FFO
attributable to common stockholders
|
$
|
98,308
|
|
|
$
|
93,561
|
|
Non-cash compensation
expense
|
3,337
|
|
|
3,203
|
|
Straight-line rent
adjustments, net
|
(3,774)
|
|
|
(3,245)
|
|
Amortization of
(below) and above market leases/leasehold interests and
corporate
assets, net
|
621
|
|
|
(771)
|
|
Amortization of
deferred financing costs and debt discount/premium, net
|
1,164
|
|
|
981
|
|
Recurring capital
expenditures, tenant improvements and leasing
commissions
|
(10,898)
|
|
|
(16,340)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
88,758
|
|
|
$
|
77,389
|
|
|
|
|
|
Net income
attributable to common stockholders per diluted share
|
$
|
0.10
|
|
|
$
|
0.08
|
|
FFO adjustments per
diluted share, net
|
0.34
|
|
|
0.34
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.44
|
|
|
$
|
0.42
|
|
Normalized FFO
adjustments per diluted share, net
|
0.00
|
|
|
0.00
|
|
Normalized FFO
attributable to common stockholders per diluted share
|
$
|
0.44
|
|
|
$
|
0.42
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
222,268
|
|
|
220,623
|
|
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
|
|
March 31,
2021
|
Net income
|
$
|
22,393
|
|
Interest
expense
|
22,986
|
|
Depreciation and
amortization expense
|
76,274
|
|
Proportionate share of
joint venture depreciation and amortization
|
488
|
|
EBITDAre
|
$
|
122,141
|
|
Transaction
expenses
|
96
|
|
Non-cash compensation
expense
|
3,337
|
|
Pro forma impact of
acquisitions
|
251
|
|
Pro forma impact of
developments
|
663
|
|
Adjusted
EBITDAre
|
$
|
126,488
|
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
505,952
|
|
|
|
As of March 31,
2021:
|
|
Debt
|
$
|
3,027,732
|
|
Less: cash and cash
equivalents
|
29,990
|
|
Net Debt
|
$
|
2,997,742
|
|
|
|
Net Debt to Adjusted
EBITDAre
|
5.9x
|
|
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.
Financial Contact:
Robert A. Milligan
Chief Financial Officer
480.998.3478
480.998.3478
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SOURCE Healthcare Trust of America, Inc.