SCOTTSDALE, Ariz., June 7,
2021 /PRNewswire/ -- Healthcare Trust of America, Inc.
(NYSE:HTA or the "Company") announced investment activities of over
$617 million, including approximately
$257 million of current investments
and a development pipeline of approximately $360 million. HTA also announced that it
had closed on its previously announced disposition of assets in
non-core markets at a gross sales price of over $67 million.
"Now more than ever, our focus is on utilizing HTA's unique
capabilities and positioning to grow our portfolio and increase
concentration in our key markets," stated Chairman, President, and
CEO Scott D. Peters. "We are the
leading owner and operator of medical office, with extensive
knowledge, capabilities and relationships within our markets. As
healthcare real estate has increased in prominence, we are using
our position to find, create, and execute on opportunities that
should drive strong returns, while also delivering value to
healthcare providers that are poised to grow and expand as our
country re-opens."
2021 Investment
Activity
Through May 2021, HTA has closed or
entered into exclusive negotiations on approximately $257 million of investments. This includes
closing on approximately $67 million
of investments totaling over 157,000 SF of GLA. In addition,
HTA is under exclusive arrangements on approximately $190 million of investments totaling
approximately 469,000 SF of GLA, all located in HTA's key markets.
The announced investments include HTA's $50
million commitment to provide mezzanine debt in connection
with the development of the Texas A&M Innovation Plaza, of
which $15 million has already been
invested. These investments are expected to close by Q3 2021,
subject to customary documentation and closing conditions.
Additionally, HTA closed on the previously announced disposition
of its 13 property portfolio located in Tennessee and Virginia at a gross sales price of
$67.5 million. This continues
our strategy of utilizing the competitive market for medical office
assets to sell non-core assets to fund investments that better fit
HTA's long-term strategy and drive shareholder returns.
Texas A&M Innovation Plaza
HTA has negotiated a strategic partnership with Medistar
Corporation to finance and co-develop the Texas A&M Innovation
Plaza, a five-acre mixed-use project located at the Texas Medical
Center, the largest medical center in the world. The project
includes a medical office and life sciences tower, a medical
student housing structure and a parking garage. This project
represents Texas A&M's first-ever
campus in the Texas Medical Center as well as Texas A&M's largest Public-Private-Partnership
(P3) in its history located outside of College Station. As
part of this project, HTA will commit $50
million of mezzanine debt to fund the construction of the
19-story, purpose-built student housing structure and parking
garage. In addition, HTA has negotiated to be the exclusive
equity partner and co-developer of the $215
million Horizon Tower, a 485,000 square foot medical office
and life sciences tower that is expected to commence construction
in 2022.
More details on this project can be found at
www.horizontowertmc.com.
Development Update
Additionally, HTA has three new MOB developments in the pre-leasing
phase totaling approximately 338,000 square feet in various stages
of pre-leasing, and will be developed at anticipated costs of more
than $140 million. These
projects are expected to be over 70% pre-leased by the time of
construction, some of which are expected to commence in late
2021. These developments include projects in HTA's existing
key markets in North Carolina and
Texas. The projects will be
developed on land that is owned by HTA, or through joint ventures
with local developers.
Including the Innovation Plaza, HTA's development pipeline now
consists of projects totaling approximately $360 million and over 800,000 square feet of
space, with expected yields that are considerably above the current
acquisition market.
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 25.6 million square feet of GLA, with
$7.5 billion invested primarily in
medical office buildings as of March
31, 2021. 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 as a result of the
phasing out of the London Inter-bank Offered Rate ("LIBOR")
effective June 30, 2023;
- 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.