SCOTTSDALE, Ariz., Aug. 3, 2021 /PRNewswire/ -- Healthcare
Trust of America, Inc. (NYSE: HTA) ("HTA") announced results for
the three and six months ended June
30, 2021.
Second Quarter 2021 Highlights:
- Reported net income attributable to common stockholders of
$0.17 per diluted share.
- Reported Funds From Operations ("FFO"), as defined by NAREIT,
of $0.44 per diluted share, an
increase of 10.0% compared to Q2 2020.
- Reported Normalized FFO of $0.44
per diluted share, an increase of 4.8% compared to Q2 2020.
- Reported Normalized FAD of $81.0
million, an increase of 4.5% compared to Q2 2020.
- Reported Same-Property Cash Net Operating Income ("NOI") growth
of 2.1% compared to Q2 2020.
Year-to-date 2021:
- Reported net income attributable to common stockholders of
$60.0 million, or $0.27 per diluted share.
- Reported FFO of $0.88 per diluted
share, an increase of 7.3% compared to 2020.
- Reported Normalized FFO of $0.88
per diluted share, an increase of 4.8% compared to 2020.
- Reported Normalized FAD of $169.7
million, an increase of 9.6% compared to 2020.
Portfolio Performance
- As of June 30, 2021, our
portfolio had a leased rate of 89.3% by gross leasable area ("GLA")
and an occupancy rate of 87.9% by GLA.
- During Q2 2021, HTA executed leases of 647 thousand square feet
of GLA, including 150 thousand square feet of GLA in new leases and
497 thousand square feet of GLA in renewals. Re-leasing spreads
were 2.1% and tenant retention for the Same-Property portfolio was
80% by GLA.
- Year-to-date, HTA executed leases of approximately 1.4 million
square feet of GLA, including 359 thousand square feet of GLA in
new leases and 993 thousand square feet of GLA in renewals.
Re-leasing spreads were 2.6% and tenant retention for the
Same-Property portfolio was 73% by GLA.
Investment Activity
- As of today, HTA has closed on or executed exclusive letters of
intent on a total of approximately $373
million of investments on a year-to-date basis, including
$304 million of medical office
acquisitions that have closed or are under exclusive contract,
subject to customary closing conditions, and $69 million in loan funding commitments to
projects in the Texas Medical Center in Houston. This total includes $68.5 million of investments closed in the second
quarter, including a $20 million
acquisition of an MOB in Charleston,
South Carolina and $48.5
million of loans associated with the previously announced
Texas A&M Innovation Plaza in the Texas Medical Center in
Houston that were funded within
the quarter.
- From a development perspective, HTA's existing projects remain
on-track for delivery in 2021, while its pipeline of projects in
pre-leasing have increased to over $375
million. In the second quarter, HTA completed its
development projects in Miami,
Florida and Bakersfield,
California, which total approximately $51 million of investment with 136,000 square
feet of GLA and are currently 82% leased.
HTA's development pipeline consists of five projects in the
pre-leasing process, totaling over 850 thousand square feet of GLA.
These projects are located in Houston, Orlando and Raleigh and are highlighted by HTA's
previously announced strategic partnership with Medistar
Corporation to co-develop the Texas A&M Innovation Plaza -
Horizon Tower located in Houston,
Texas, a 485,000 square foot medical office and life
sciences tower with anticipated costs of $215 million expected to commence construction in
2022.
- During the three months ended June 30,
2021, HTA closed on the previously announced disposition of
a 13 property portfolio with locations in Tennessee and Virginia, with an aggregate gross sales price
of $67.5 million. This transaction
qualified as a 1031 exchange with net proceeds held in a restricted
cash account at quarter end. This portfolio generated annual
returns of 10% over its 13-year period and generated a gain of
approximately $32.8 million.
Capital Activity and Liquidity
- HTA ended Q2 2021 with total leverage of (i) 33.5%, measured as
debt less cash and cash equivalents to total capitalization, and
(ii) 6.0x 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 30.4% and 5.5x,
respectively.
- HTA ended Q2 with total liquidity of $1.3 billion, inclusive of $955.0 million available on our unsecured
revolving credit facility, $277.5
million of unsettled equity forward transactions,
$65.0 million of restricted cash for
funds held in a 1031 exchange account and $19.8 million of cash and cash equivalents.
- As of the end of the quarter, HTA had $277.5 million of equity, based on an average
initial forward price of $29.46 per
share, 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.
Subsequent Events
- On August 3, 2021, HTA's Board of
Directors announced an increased quarterly cash dividend of
$0.325 per share of common stock, and
per Healthcare Trust of America Holdings, LP Operating Partnership
Unit, to be paid on October 11, 2021
to stockholders and unitholders of record on October 4, 2021.
2021 Guidance:
HTA updates its 2021 guidance to
range as follows:
|
|
Annual
Expectations
|
|
|
Low
|
to
|
High
|
Net income
attributable to common stockholders per share
|
|
$0.40
|
|
$0.44
|
|
|
|
|
|
Same-Property Cash
NOI
|
|
2.0%
|
|
2.5%
|
|
|
|
|
|
FFO per share, as
defined by NAREIT
|
|
$1.70
|
|
$1.77
|
|
|
|
|
|
Normalized FFO per
share
|
|
$1.74
|
|
$1.78
|
The 2021 guidance includes the following additional
assumptions:
- $375 - $600 million of investments at an average 5.5% to
6.0% yield;
- $70 - $125
million of dispositions at a 5.0% to 6.5% yield;
- general and administrative costs of $43 - $46
million;
- average fully diluted shares of between 224 and 226 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 assumptions that are
subject to change and many of which are beyond HTA's control.
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 25.3 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, highly-educated 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 Tuesday, August 3,
2021 at 6:00 p.m. Eastern Time
(3:00 p.m. Pacific Time) to review
its financial performance and operating results for the three and
six months ended June 30, 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: 10159216
Available August 3, 2021 (one hour
after the end of the conference call) to September 2, 2021 at 6:00
p.m. Eastern Time (3:00 p.m. Pacific
Time)
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
(Unaudited)
|
|
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Real estate
investments:
|
|
|
|
|
Land
|
|
$
|
596,084
|
|
|
$
|
596,269
|
|
Building and
improvements
|
|
6,542,944
|
|
|
6,507,816
|
|
Lease
intangibles
|
|
617,731
|
|
|
628,621
|
|
Construction in
progress
|
|
88,609
|
|
|
80,178
|
|
|
|
7,845,368
|
|
|
7,812,884
|
|
Accumulated
depreciation and amortization
|
|
(1,806,165)
|
|
|
(1,702,719)
|
|
Real estate
investments, net
|
|
6,039,203
|
|
|
6,110,165
|
|
Investment in
unconsolidated joint venture
|
|
63,593
|
|
|
64,360
|
|
Cash and cash
equivalents
|
|
19,796
|
|
|
115,407
|
|
Restricted
cash
|
|
70,542
|
|
|
3,358
|
|
Receivables and other
assets, net
|
|
294,550
|
|
|
251,728
|
|
Right-of-use assets -
operating leases, net
|
|
228,870
|
|
|
235,223
|
|
Other intangibles,
net
|
|
8,850
|
|
|
10,451
|
|
Total
assets
|
|
$
|
6,725,404
|
|
|
$
|
6,790,692
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt
|
|
$
|
3,073,465
|
|
|
$
|
3,026,999
|
|
Accounts payable and
accrued liabilities
|
|
172,653
|
|
|
200,358
|
|
Derivative financial
instruments - interest rate swaps
|
|
10,755
|
|
|
14,957
|
|
Security deposits,
prepaid rent and other liabilities
|
|
83,474
|
|
|
82,553
|
|
Lease liabilities -
operating leases
|
|
195,210
|
|
|
198,367
|
|
Intangible
liabilities, net
|
|
29,959
|
|
|
32,539
|
|
Total
liabilities
|
|
3,565,516
|
|
|
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;
218,825,737 and 218,578,012 shares issued and outstanding as
of June 30, 2021
and December 31, 2020, respectively
|
|
2,188
|
|
|
2,186
|
|
Additional paid-in
capital
|
|
4,919,353
|
|
|
4,916,784
|
|
Accumulated other
comprehensive loss
|
|
(12,734)
|
|
|
(16,979)
|
|
Cumulative dividends
in excess of earnings
|
|
(1,807,753)
|
|
|
(1,727,752)
|
|
Total stockholders'
equity
|
|
3,101,054
|
|
|
3,174,239
|
|
Non-controlling
interests
|
|
58,834
|
|
|
60,680
|
|
Total
equity
|
|
3,159,888
|
|
|
3,234,919
|
|
Total liabilities and
equity
|
|
$
|
6,725,404
|
|
|
$
|
6,790,692
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Rental
income
|
$
|
188,494
|
|
|
$
|
178,670
|
|
|
$
|
379,844
|
|
|
$
|
364,201
|
|
Interest and other
operating income
|
121
|
|
|
175
|
|
|
264
|
|
|
420
|
|
Total
revenues
|
188,615
|
|
|
178,845
|
|
|
380,108
|
|
|
364,621
|
|
Expenses:
|
|
|
|
|
|
|
|
Rental
|
57,409
|
|
|
56,200
|
|
|
116,988
|
|
|
113,062
|
|
General and
administrative
|
10,929
|
|
|
10,160
|
|
|
21,489
|
|
|
21,678
|
|
Transaction
|
66
|
|
|
32
|
|
|
162
|
|
|
172
|
|
Depreciation and
amortization
|
74,977
|
|
|
74,927
|
|
|
151,251
|
|
|
152,592
|
|
Interest
expense
|
23,133
|
|
|
24,277
|
|
|
46,119
|
|
|
48,149
|
|
Impairment
|
16,825
|
|
|
—
|
|
|
16,825
|
|
|
—
|
|
Total
expenses
|
183,339
|
|
|
165,596
|
|
|
352,834
|
|
|
335,653
|
|
Gain on sale of real
estate, net
|
32,753
|
|
|
—
|
|
|
32,753
|
|
|
1,991
|
|
Income from
unconsolidated joint venture
|
406
|
|
|
379
|
|
|
798
|
|
|
801
|
|
Other
income
|
304
|
|
|
97
|
|
|
307
|
|
|
173
|
|
Net
income
|
$
|
38,739
|
|
|
$
|
13,725
|
|
|
$
|
61,132
|
|
|
$
|
31,933
|
|
Net income
attributable to non-controlling interests
|
(728)
|
|
|
(236)
|
|
|
(1,091)
|
|
|
(543)
|
|
Net income
attributable to common stockholders
|
$
|
38,011
|
|
|
$
|
13,489
|
|
|
$
|
60,041
|
|
|
$
|
31,390
|
|
Earnings per
common share - basic:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.17
|
|
|
$
|
0.06
|
|
|
$
|
0.27
|
|
|
$
|
0.14
|
|
Earnings per
common share - diluted:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.17
|
|
|
$
|
0.06
|
|
|
$
|
0.27
|
|
|
$
|
0.14
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
218,822
|
|
|
218,483
|
|
|
218,787
|
|
|
217,588
|
|
Diluted
|
222,326
|
|
|
222,088
|
|
|
222,297
|
|
|
221,228
|
|
Dividends declared
per common share
|
$
|
0.320
|
|
|
$
|
0.315
|
|
|
$
|
0.640
|
|
|
$
|
0.630
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
61,132
|
|
|
$
|
31,933
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
142,062
|
|
|
144,724
|
|
Share-based
compensation expense
|
5,402
|
|
|
5,303
|
|
Income from
unconsolidated joint venture
|
(798)
|
|
|
(801)
|
|
Distributions from
unconsolidated joint venture
|
1,565
|
|
|
1,670
|
|
Impairment
|
16,825
|
|
|
—
|
|
Gain on sale of real
estate, net
|
(32,753)
|
|
|
(1,991)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables and other
assets, net
|
10,540
|
|
|
2,504
|
|
Accounts payable and
accrued liabilities
|
(8,552)
|
|
|
(6,337)
|
|
Security deposits,
prepaid rent and other liabilities
|
(4,496)
|
|
|
5,178
|
|
Net cash provided by
operating activities
|
190,927
|
|
|
182,183
|
|
Cash flows from
investing activities:
|
|
|
|
Investments in real
estate
|
(50,628)
|
|
|
(41,338)
|
|
Development of real
estate
|
(33,983)
|
|
|
(30,367)
|
|
Proceeds from the sale
of real estate
|
65,349
|
|
|
6,420
|
|
Capital
expenditures
|
(53,471)
|
|
|
(43,917)
|
|
Collection of real
estate notes receivable
|
15,405
|
|
|
514
|
|
Advances on real
estate notes receivable
|
(61,020)
|
|
|
(6,000)
|
|
Net cash used in
investing activities
|
(118,348)
|
|
|
(114,688)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
100,000
|
|
|
1,314,000
|
|
Payments on unsecured
revolving credit facility
|
(55,000)
|
|
|
(1,150,000)
|
|
Payments on secured
mortgage loans
|
—
|
|
|
(96,206)
|
|
Proceeds from issuance
of common stock
|
—
|
|
|
50,020
|
|
Issuance of OP
Units
|
—
|
|
|
1,378
|
|
Repurchase and
cancellation of common stock
|
(3,377)
|
|
|
(4,798)
|
|
Dividends
paid
|
(140,022)
|
|
|
(137,050)
|
|
Distributions paid to
non-controlling interest of limited partners
|
(2,607)
|
|
|
(2,455)
|
|
Net cash used in
financing activities
|
(101,006)
|
|
|
(25,111)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(28,427)
|
|
|
42,384
|
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
118,765
|
|
|
37,616
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
|
90,338
|
|
|
$
|
80,000
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
|
$
|
38,739
|
|
|
$
|
13,725
|
|
|
$
|
61,132
|
|
|
$
|
31,933
|
|
General and
administrative expenses
|
10,929
|
|
|
10,160
|
|
|
21,489
|
|
|
21,678
|
|
Transaction
expenses
|
66
|
|
|
32
|
|
|
162
|
|
|
172
|
|
Depreciation and
amortization expense
|
74,977
|
|
|
74,927
|
|
|
151,251
|
|
|
152,592
|
|
Interest
expense
|
23,133
|
|
|
24,277
|
|
|
46,119
|
|
|
48,149
|
|
Impairment
|
16,825
|
|
|
—
|
|
|
16,825
|
|
|
—
|
|
Gain on sale of real
estate, net
|
(32,753)
|
|
|
—
|
|
|
(32,753)
|
|
|
(1,991)
|
|
Income from
unconsolidated joint venture
|
(406)
|
|
|
(379)
|
|
|
(798)
|
|
|
(801)
|
|
Other
income
|
(304)
|
|
|
(97)
|
|
|
(307)
|
|
|
(173)
|
|
NOI
|
$
|
131,206
|
|
|
$
|
122,645
|
|
|
$
|
263,120
|
|
|
$
|
251,559
|
|
NOI percentage
growth
|
7.0
|
%
|
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
NOI
|
$
|
131,206
|
|
|
$
|
122,645
|
|
|
$
|
263,120
|
|
|
$
|
251,559
|
|
Straight-line rent
adjustments, net
|
(3,622)
|
|
|
(3,717)
|
|
|
(7,396)
|
|
|
(6,962)
|
|
Amortization of
(below) and above market leases/leasehold
interests, net and other GAAP adjustments
|
(400)
|
|
|
(344)
|
|
|
(875)
|
|
|
(2,043)
|
|
Notes receivable
interest income
|
(3)
|
|
|
(3)
|
|
|
(9)
|
|
|
(141)
|
|
Other normalizing
adjustments (1)
|
—
|
|
|
4,959
|
|
|
—
|
|
|
5,031
|
|
Cash NOI
|
$
|
127,181
|
|
|
$
|
123,540
|
|
|
$
|
254,840
|
|
|
$
|
247,444
|
|
Acquisitions not
owned/operated for all periods presented
and disposed properties Cash NOI
|
(4,477)
|
|
|
(2,176)
|
|
|
(9,652)
|
|
|
(4,906)
|
|
Redevelopment Cash
NOI
|
(282)
|
|
|
(1,334)
|
|
|
(1,066)
|
|
|
(2,936)
|
|
Intended for sale Cash
NOI
|
107
|
|
|
35
|
|
|
272
|
|
|
83
|
|
Same-Property Cash
NOI (2)
|
$
|
122,529
|
|
|
$
|
120,065
|
|
|
$
|
244,394
|
|
|
$
|
239,685
|
|
Same-Property Cash
NOI percentage growth
|
2.1
|
%
|
|
|
|
2.0
|
%
|
|
|
|
(1) For the three
months ended June 30, 2020, other normalizing adjustments includes
the following: non-recurring bad debt of $4,672 thousand;
incremental hazard pay to facilities employees of $242 thousand;
and incremental personal protective equipment of $45
thousand. For the six months ended June 30, 2020, 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.
|
(2) Same-Property
includes 432 and 425 buildings for the three and six months ended
June 30, 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
attributable to common stockholders
|
$
|
38,011
|
|
|
$
|
13,489
|
|
|
$
|
60,041
|
|
|
$
|
31,390
|
|
Depreciation and
amortization expense related to
investments in real estate
|
74,219
|
|
|
73,769
|
|
|
149,550
|
|
|
150,506
|
|
Gain on sale of real
estate, net
|
(32,753)
|
|
|
—
|
|
|
(32,753)
|
|
|
(1,991)
|
|
Impairment
|
16,825
|
|
|
—
|
|
|
16,825
|
|
|
—
|
|
Proportionate share of
joint venture depreciation and
amortization
|
487
|
|
|
508
|
|
|
975
|
|
|
975
|
|
FFO attributable to
common stockholders
|
$
|
96,789
|
|
|
$
|
87,766
|
|
|
$
|
194,638
|
|
|
$
|
180,880
|
|
Transaction
expenses
|
66
|
|
|
32
|
|
|
162
|
|
|
172
|
|
Non-controlling income
from OP units included in diluted
shares
|
728
|
|
|
236
|
|
|
1,091
|
|
|
543
|
|
Other normalizing
adjustments (1)
|
—
|
|
|
4,959
|
|
|
—
|
|
|
5,031
|
|
Normalized FFO
attributable to common stockholders
|
$
|
97,583
|
|
|
$
|
92,993
|
|
|
$
|
195,891
|
|
|
$
|
186,626
|
|
Non-cash compensation
expense
|
2,065
|
|
|
2,100
|
|
|
5,402
|
|
|
5,303
|
|
Straight-line rent
adjustments, net
|
(3,622)
|
|
|
(3,717)
|
|
|
(7,396)
|
|
|
(6,962)
|
|
Amortization of
(below) and above market leases/leasehold
interests and corporate assets, net
|
371
|
|
|
676
|
|
|
992
|
|
|
(95)
|
|
Amortization of
deferred financing costs and debt
discount/premium, net
|
1,164
|
|
|
1,006
|
|
|
2,328
|
|
|
1,987
|
|
Recurring capital
expenditures, tenant improvements and
leasing commissions
|
(16,585)
|
|
|
(15,593)
|
|
|
(27,483)
|
|
|
(31,933)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
80,976
|
|
|
$
|
77,465
|
|
|
$
|
169,734
|
|
|
$
|
154,926
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders per diluted
share
|
$
|
0.17
|
|
|
$
|
0.06
|
|
|
$
|
0.27
|
|
|
$
|
0.14
|
|
FFO adjustments per
diluted share, net
|
0.27
|
|
|
0.34
|
|
|
0.61
|
|
|
0.68
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.44
|
|
|
$
|
0.40
|
|
|
$
|
0.88
|
|
|
$
|
0.82
|
|
Normalized FFO
adjustments per diluted share, net
|
0.00
|
|
|
0.02
|
|
|
0.00
|
|
|
0.02
|
|
Normalized FFO
attributable to common stockholders per
diluted share
|
$
|
0.44
|
|
|
$
|
0.42
|
|
|
$
|
0.88
|
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
222,326
|
|
|
222,088
|
|
|
222,297
|
|
|
221,228
|
|
|
(1) For the three
months ended June 30, 2020, other normalizing adjustments includes
the following: non-recurring bad debt of $4,672 thousand;
incremental hazard pay to facilities employees of $242 thousand;
and incremental personal protective equipment of $45
thousand. For the six months ended June 30, 2020, 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.
|
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) non-controlling 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
|
|
June 30,
2021
|
Net income
|
$
|
38,739
|
|
Interest
expense
|
23,133
|
|
Depreciation and
amortization expense
|
74,977
|
|
Impairment
|
16,825
|
|
Gain on sale of real
estate, net
|
(32,753)
|
|
Proportionate share of
joint venture depreciation and amortization
|
487
|
|
EBITDAre
|
$
|
121,408
|
|
Transaction
expenses
|
66
|
|
Non-cash compensation
expense
|
2,065
|
|
Pro forma impact of
investments/dispositions
|
332
|
|
Pro forma impact of
developments
|
327
|
|
Adjusted
EBITDAre
|
$
|
124,198
|
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
496,792
|
|
|
|
As of June 30,
2021:
|
|
Debt
|
$
|
3,073,465
|
|
Less: cash and cash
equivalents (1)
|
84,803
|
|
Net Debt
|
$
|
2,988,662
|
|
|
|
Net Debt to Adjusted
EBITDAre
|
6.0x
|
|
|
(1) Cash and cash
equivalents includes $65.0M of restricted cash for funds held in a
1031 exchange account pending re-investment.
|
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
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SOURCE Healthcare Trust of America, Inc.