SCOTTSDALE, Ariz., Nov. 5,
2021 /PRNewswire/ -- Healthcare Trust of America, Inc. (NYSE: HTA)
("HTA") announced results for the three and nine months ended
September 30, 2021.
"Our results demonstrate HTA's strength as a Company," stated
Peter N. Foss, Interim CEO. "I
continue to be inspired by the leadership that is exhibited
throughout the organization as a whole. We are focused on
being the leader in the medical office space, and I remain
confident in the Company's ability to continue to deliver value to
our tenants and shareholders by capitalizing on strategic
partnership opportunities to leverage our expertise and enhance our
capabilities, allowing us to support the healthcare community and
generate growth."
Third 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, an
increase of 41.9% compared to Q3 2020.
- Reported Normalized FFO of $0.44
per diluted share, an increase of 2.3% compared to Q3 2020, which
includes the impact of costs related to the whistleblower
investigation and leadership transition.
- Reported Normalized FAD of $77.8
million, a decrease of 5.7% compared to Q3 2020.
- Reported Same-Property Cash Net Operating Income ("NOI") growth
of 2.5% compared to Q3 2020.
Year-to-date 2021:
- Reported net income attributable to common stockholders of
$81.7 million, or $0.37 per diluted share.
- Reported FFO of $1.31 per diluted
share, an increase of 15.9% compared to 2020.
- Reported Normalized FFO of $1.32
per diluted share, an increase of 3.1% compared to 2020.
- Reported Normalized FAD of $247.5
million, an increase of 4.3% compared to 2020.
Portfolio Performance
- As of September 30, 2021, our
portfolio's leased rate increased 40 bps from 89.3% as of Q2 2021
to 89.7% by gross leasable area ("GLA") and an occupancy rate of
88.0% by GLA.
- During Q3 2021, HTA executed leases of 670 thousand square feet
of GLA, including 227 thousand square feet of GLA in new leases and
443 thousand square feet of GLA in renewals. Re-leasing spreads
were 2.9% and tenant retention for the Same-Property portfolio was
83% by GLA.
- Year-to-date, HTA executed leases of approximately 2.0 million
square feet of GLA, including 586 thousand square feet of GLA in
new leases and 1.4 million square feet of GLA in renewals.
Re-leasing spreads were 2.7% and tenant retention for the
Same-Property portfolio was 76% by GLA.
Investment Activity
- During Q3 2021, HTA closed on four medical office building
investments totaling $135 million
with 469,000 square feet of GLA at anticipated in-place year one
yields of 5.7%, increasing market densification in HTA's existing
key markets. Subsequent to quarter end, HTA closed on a medical
office portfolio encompassing two medical office buildings and a
garage for $66 million spanning
293,000 square feet of GLA. As of today, HTA has closed on
$248 million of medical office
investments totaling 920,000 square feet of GLA with an additional
$93 million of investments
encompassing more than 260,000 square feet of GLA under contract or
exclusive letters of intent, subject to customary closing
conditions, expected to close in the fourth quarter.
- For the year, HTA anticipates 2021 investment activity to total
over $400 million, which includes
$342 million of medical office
investments closed or under exclusive letters of intent, and
$69 million in loan funding
commitments to projects in the Texas Medical Center in Houston.
- From a development perspective, HTA's existing projects have
all been completed as scheduled. In the third quarter, HTA
completed core and shell construction on its 109,000 square feet
Class A medical office development located on HCA's new Medical
City Heart & Spine Hospital in Dallas, TX. This building is currently 74%
pre-leased with cash rents expected to commence in the fourth
quarter of 2021.
- 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.
- For the nine months ending September 30,
2021, we closed on the disposition of 14 MOBs in non-key
markets with a gross sales price of $68.1
million, resulting in a net gain on sale of approximately
$32.9 million. Subsequent to
September 30, 2021, we closed on the
sale of one MOB in Ohio for a
gross sales price of $20.2 million at
a cap rate of 4.2%.
Capital Activity and Liquidity
- HTA ended Q3 2021 with total leverage of (i) 31.4%, measured as
debt less cash and cash equivalents to total capitalization, and
(ii) 6.2x 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 29.2% and 5.8x,
respectively.
- HTA ended Q3 with total liquidity of $1.2 billion, inclusive of $950.0 million available on our unsecured
revolving credit facility, $218.8
million of unsettled equity forward transactions, and
$12.8 million of cash and cash
equivalents and $1.7 million of
restricted cash for funds held in a 1031 exchange account.
- As of the end of the quarter, HTA had $218.8 million of equity, based on an average
initial forward price of $29.49 per
share, to be settled on a forward basis with the issuance of
approximately 7.4 million shares of common stock, subject to
adjustment for costs to borrow under the terms of the applicable
equity distribution agreements.
Subsequent Events
- Other Investment: On October 1,
2021, HTA made a $6 million
investment in Series A Preferred Stock of Pivotal Analytics, Inc.
("Pivotal"), a data analytics platform. Pivotal's proprietary model
integrates demographic data and provider-specific, point-of service
claims data from various sources to allow its users to anticipate
trends in healthcare, including insight into patient demand and
corresponding provider mix in virtually all geographic areas across
the United States. As an early
adopter and minority investor of this operational platform, we have
the exclusive ability to steer the platform to best suit our needs
as an owner of medical office space. With this investment, we have
further enhanced our capability to serve our healthcare tenants by
allowing for programmatic portfolio management through targeting
and anticipating space needs in our existing locations, assisting
in identifying opportunities for new ground-up development and
redevelopments, and supporting us in the evaluation and
underwriting of acquisitions.
- Debt: On October 6, 2021,
HTA entered into a third amended and restated $1.3 billion revolving credit and term loan
agreement, refinancing the existing $1.3
billion unsecured credit agreement, lowering HTA's borrowing
costs and extending maturities to October
2025. Based on HTA's current investment grade ratings, the
revolving credit agreement will initially be priced at LIBOR plus
105 bps, inclusive of a 20 bps facility fee, and the term loan will
initially be priced at LIBOR plus 95 bps. The credit agreement also
includes a sustainability-linked feature, which allows for a
reduction in pricing based on HTA's realization of certain
sustainability ratings.
- Dividends: On November 4,
2021, HTA's Board of Directors announced a 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 January 11, 2022 to stockholders and unitholders
of record on January 4, 2022.
2021 Guidance:
HTA updates its 2021 guidance to range
as follows:
|
|
Annual
Expectations
|
|
|
Low
|
to
|
High
|
Net income
attributable to common stockholders per share
|
|
$0.44
|
|
$0.48
|
|
|
|
|
|
Same-Property Cash
NOI
|
|
2.0%
|
|
2.5%
|
|
|
|
|
|
FFO per share, as
defined by NAREIT
|
|
$1.73
|
|
$1.77
|
|
|
|
|
|
Normalized FFO per
share
|
|
$1.75
|
|
$1.77
|
The 2021 guidance includes the following additional
assumptions:
- $400 - $500 million of investments at an average 5.5% to
6.0% yield;
- $88 - $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 225 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.
Board's Commitment to Shareholder Value Creation
HTA's
Board of Directors regularly reviews the Company's strategic plan,
priorities and opportunities as part of its commitment to act in
the best interest of the Company and HTA shareholders. To that end,
the HTA Board has been actively engaged in a strategic review
process and, with the support of its financial advisor, J.P. Morgan
Securities LLC, is evaluating a wide range of
options, including, among others, a corporate sale or merger,
joint ventures and partnerships, asset sales, and continued
operation as an independent public company. During the Board's
evaluation, HTA will continue to adapt its strategic plan and
position the Company and its portfolio for growth, success and
value creation.
The Company noted that there can be no assurance that any
transaction will result from the strategic review process. The
Company does not intend to disclose developments relating to its
strategic review unless and until the Board has approved a specific
agreement or transaction or has terminated its review.
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 25.8 million
square feet of GLA, and with $7.7
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 Friday, November 5, 2021
at 11:30 a.m. Eastern Time
(8:30 a.m. Pacific Time) to review
its financial performance and operating results for the three and
nine months ended September 30,
2021.
Conference Call and Webcast Details:
Domestic Dial-In Number: (844) 200-6205
International Dial-In Number: (929) 526-1599
Canada Dial-In Number: (833) 950-0062
Access Code: 794041
Webcast: www.htareit.com under the Investor Relations tab
Replay Conference Call Details:
Domestic Dial-In Number: (866) 813-9403
International Dial-In Number: +44 (204) 525-0658
Canada Dial-In Number: (226) 828-7578
Access Code: 198951
Available November 5, 2021 (one hour
after the end of the conference call) to November 28, 2021 at 11:30
a.m. Eastern Time (8:30 a.m. Pacific
Time)
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
(Unaudited)
|
|
|
|
|
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Real estate
investments:
|
|
|
|
|
Land
|
|
$
|
625,092
|
|
|
$
|
596,269
|
|
Building and
improvements
|
|
6,701,356
|
|
|
6,507,816
|
|
Lease
intangibles
|
|
506,010
|
|
|
628,621
|
|
Construction in
progress
|
|
28,878
|
|
|
80,178
|
|
|
|
7,861,336
|
|
|
7,812,884
|
|
Accumulated
depreciation and amortization
|
|
(1,747,354)
|
|
|
(1,702,719)
|
|
Real estate
investments, net
|
|
6,113,982
|
|
|
6,110,165
|
|
Assets held for sale,
net
|
|
27,049
|
|
|
—
|
|
Investment in
unconsolidated joint venture
|
|
63,213
|
|
|
64,360
|
|
Cash and cash
equivalents
|
|
12,836
|
|
|
115,407
|
|
Restricted
cash
|
|
6,628
|
|
|
3,358
|
|
Receivables and other
assets, net
|
|
314,977
|
|
|
251,728
|
|
Right-of-use assets -
operating leases, net
|
|
227,564
|
|
|
235,223
|
|
Other intangibles,
net
|
|
9,382
|
|
|
10,451
|
|
Total
assets
|
|
$
|
6,775,631
|
|
|
$
|
6,790,692
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt
|
|
$
|
3,079,190
|
|
|
$
|
3,026,999
|
|
Accounts payable and
accrued liabilities
|
|
178,024
|
|
|
200,358
|
|
Liabilities of assets
held for sale
|
|
263
|
|
|
—
|
|
Derivative financial
instruments - interest rate swaps
|
|
9,377
|
|
|
14,957
|
|
Security deposits,
prepaid rent and other liabilities
|
|
82,852
|
|
|
82,553
|
|
Lease liabilities -
operating leases
|
|
195,115
|
|
|
198,367
|
|
Intangible
liabilities, net
|
|
31,473
|
|
|
32,539
|
|
Total
liabilities
|
|
3,576,294
|
|
|
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;
220,839,006 and 218,578,012 shares issued and outstanding as of
September 30, 2021 and December 31, 2020,
respectively
|
|
2,208
|
|
|
2,186
|
|
Additional paid-in
capital
|
|
4,973,001
|
|
|
4,916,784
|
|
Accumulated other
comprehensive loss
|
|
(11,327)
|
|
|
(16,979)
|
|
Cumulative dividends
in excess of earnings
|
|
(1,857,714)
|
|
|
(1,727,752)
|
|
Total stockholders'
equity
|
|
3,106,168
|
|
|
3,174,239
|
|
Non-controlling
interests
|
|
93,169
|
|
|
60,680
|
|
Total
equity
|
|
3,199,337
|
|
|
3,234,919
|
|
Total liabilities and
equity
|
|
$
|
6,775,631
|
|
|
$
|
6,790,692
|
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Rental
income
|
$
|
189,832
|
|
|
$
|
187,258
|
|
|
$
|
569,676
|
|
|
$
|
551,459
|
|
Interest and other
operating income
|
1,430
|
|
|
68
|
|
|
1,694
|
|
|
488
|
|
Total
revenues
|
191,262
|
|
|
187,326
|
|
|
571,370
|
|
|
551,947
|
|
Expenses:
|
|
|
|
|
|
|
|
Rental
|
59,568
|
|
|
57,248
|
|
|
176,556
|
|
|
170,310
|
|
General and
administrative
|
10,765
|
|
|
10,670
|
|
|
32,254
|
|
|
32,348
|
|
Transaction
|
137
|
|
|
125
|
|
|
299
|
|
|
297
|
|
Depreciation and
amortization
|
76,056
|
|
|
75,892
|
|
|
227,307
|
|
|
228,484
|
|
Interest
expense
|
23,331
|
|
|
23,136
|
|
|
69,450
|
|
|
71,285
|
|
Impairment
|
—
|
|
|
—
|
|
|
16,825
|
|
|
—
|
|
Total
expenses
|
169,857
|
|
|
167,071
|
|
|
522,691
|
|
|
502,724
|
|
Gain on sale of real
estate, net
|
143
|
|
|
—
|
|
|
32,896
|
|
|
1,991
|
|
Loss on extinguishment
of debt, net
|
—
|
|
|
(27,726)
|
|
|
—
|
|
|
(27,726)
|
|
Income from
unconsolidated joint venture
|
400
|
|
|
422
|
|
|
1,198
|
|
|
1,223
|
|
Other
income
|
94
|
|
|
117
|
|
|
401
|
|
|
290
|
|
Net income
(loss)
|
$
|
22,042
|
|
|
$
|
(6,932)
|
|
|
$
|
83,174
|
|
|
$
|
25,001
|
|
Net (income) loss
attributable to non-controlling interests
|
(370)
|
|
|
105
|
|
|
(1,461)
|
|
|
(438)
|
|
Net income (loss)
attributable to common stockholders
|
$
|
21,672
|
|
|
$
|
(6,827)
|
|
|
$
|
81,713
|
|
|
$
|
24,563
|
|
Earnings per
common share - basic:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
$
|
0.10
|
|
|
$
|
(0.03)
|
|
|
$
|
0.37
|
|
|
$
|
0.11
|
|
Earnings per
common share - diluted:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders
|
$
|
0.10
|
|
|
$
|
(0.03)
|
|
|
$
|
0.37
|
|
|
$
|
0.11
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
218,820
|
|
|
218,549
|
|
|
218,798
|
|
|
217,911
|
|
Diluted
|
222,811
|
|
|
218,549
|
|
|
222,470
|
|
|
221,521
|
|
Dividends declared
per common share
|
$
|
0.325
|
|
|
$
|
0.320
|
|
|
$
|
0.965
|
|
|
$
|
0.950
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
83,174
|
|
|
$
|
25,001
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
212,332
|
|
|
211,843
|
|
Share-based
compensation expense
|
5,034
|
|
|
7,135
|
|
Income from
unconsolidated joint venture
|
(1,198)
|
|
|
(1,223)
|
|
Distributions from
unconsolidated joint venture
|
2,345
|
|
|
2,455
|
|
Impairment
|
16,825
|
|
|
—
|
|
Gain on sale of real
estate, net
|
(32,896)
|
|
|
(1,991)
|
|
Loss (gain) on
extinguishment of debt, net
|
—
|
|
|
27,726
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables and other
assets, net
|
(3,214)
|
|
|
3,282
|
|
Accounts payable and
accrued liabilities
|
(8,755)
|
|
|
(11,787)
|
|
Security deposits,
prepaid rent and other liabilities
|
(2,029)
|
|
|
7,227
|
|
Net cash provided by
operating activities
|
271,618
|
|
|
269,668
|
|
Cash flows from
investing activities:
|
|
|
|
Investments in real
estate
|
(147,303)
|
|
|
(52,553)
|
|
Development of real
estate
|
(48,482)
|
|
|
(49,479)
|
|
Proceeds from the sale
of real estate
|
67,621
|
|
|
6,420
|
|
Capital
expenditures
|
(78,047)
|
|
|
(59,016)
|
|
Collection of real
estate notes receivable
|
15,405
|
|
|
709
|
|
Advances on real
estate notes receivable
|
(66,526)
|
|
|
(6,000)
|
|
Net cash used in
investing activities
|
(257,332)
|
|
|
(159,919)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
180,000
|
|
|
1,329,862
|
|
Payments on unsecured
revolving credit facility
|
(130,000)
|
|
|
(1,429,862)
|
|
Proceeds from
unsecured senior notes
|
—
|
|
|
793,568
|
|
Payments on unsecured
senior notes
|
—
|
|
|
(300,000)
|
|
Payments on secured
mortgage loans
|
—
|
|
|
(114,060)
|
|
Deferred financing
costs
|
—
|
|
|
(6,532)
|
|
Debt extinguishment
costs
|
—
|
|
|
(25,938)
|
|
Proceeds from issuance
of common stock
|
53,735
|
|
|
50,020
|
|
Issuance of OP
Units
|
—
|
|
|
1,378
|
|
Repurchase and
cancellation of common stock
|
(3,389)
|
|
|
(5,094)
|
|
Dividends
paid
|
(210,047)
|
|
|
(205,880)
|
|
Distributions paid to
non-controlling interest of limited partners
|
(3,886)
|
|
|
(3,581)
|
|
Net cash (used in)
provided by financing activities
|
(113,587)
|
|
|
83,881
|
|
Net change in cash,
cash equivalents and restricted cash
|
(99,301)
|
|
|
193,630
|
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
118,765
|
|
|
37,616
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
|
19,464
|
|
|
$
|
231,246
|
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
(loss)
|
$
|
22,042
|
|
|
$
|
(6,932)
|
|
|
$
|
83,174
|
|
|
$
|
25,001
|
|
General and
administrative expenses
|
10,765
|
|
|
10,670
|
|
|
32,254
|
|
|
32,348
|
|
Transaction
expenses
|
137
|
|
|
125
|
|
|
299
|
|
|
297
|
|
Depreciation and
amortization expense
|
76,056
|
|
|
75,892
|
|
|
227,307
|
|
|
228,484
|
|
Interest
expense
|
23,331
|
|
|
23,136
|
|
|
69,450
|
|
|
71,285
|
|
Impairment
|
—
|
|
|
—
|
|
|
16,825
|
|
|
—
|
|
Gain on sale of real
estate, net
|
(143)
|
|
|
—
|
|
|
(32,896)
|
|
|
(1,991)
|
|
Loss on extinguishment
of debt, net
|
—
|
|
|
27,726
|
|
|
—
|
|
|
27,726
|
|
Income from
unconsolidated joint venture
|
(400)
|
|
|
(422)
|
|
|
(1,198)
|
|
|
(1,223)
|
|
Other
income
|
(94)
|
|
|
(117)
|
|
|
(401)
|
|
|
(290)
|
|
NOI
|
$
|
131,694
|
|
|
$
|
130,078
|
|
|
$
|
394,814
|
|
|
$
|
381,637
|
|
NOI percentage
growth
|
1.2
|
%
|
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
NOI
|
$
|
131,694
|
|
|
$
|
130,078
|
|
|
$
|
394,814
|
|
|
$
|
381,637
|
|
Straight-line rent
adjustments, net
|
(3,012)
|
|
|
(5,711)
|
|
|
(10,408)
|
|
|
(12,673)
|
|
Amortization of
(below) and above market leases/leasehold interests, net and other
GAAP adjustments
|
(538)
|
|
|
(113)
|
|
|
(1,413)
|
|
|
(2,203)
|
|
Notes receivable
interest income
|
(1,264)
|
|
|
(11)
|
|
|
(1,273)
|
|
|
(152)
|
|
Other normalizing
adjustments (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
5,031
|
|
Cash NOI
|
$
|
126,880
|
|
|
$
|
124,243
|
|
|
$
|
381,720
|
|
|
$
|
371,640
|
|
Acquisitions not
owned/operated for all periods presented and disposed properties
Cash NOI
|
(5,245)
|
|
|
(2,245)
|
|
|
(15,775)
|
|
|
(8,158)
|
|
Redevelopment Cash
NOI
|
(116)
|
|
|
(1,043)
|
|
|
(803)
|
|
|
(3,612)
|
|
Intended for sale Cash
NOI
|
(6,361)
|
|
|
(8,639)
|
|
|
(19,984)
|
|
|
(21,661)
|
|
Same-Property Cash
NOI (2)
|
$
|
115,158
|
|
|
$
|
112,316
|
|
|
$
|
345,158
|
|
|
$
|
338,209
|
|
Same-Property Cash
NOI percentage growth
|
2.5
|
%
|
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
(1) For the nine
months ended September 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 421 and 414 buildings for the three and nine months ended
September 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income (loss)
attributable to common stockholders
|
$
|
21,672
|
|
|
$
|
(6,827)
|
|
|
$
|
81,713
|
|
|
$
|
24,563
|
|
Depreciation and
amortization expense related to investments in real
estate
|
75,264
|
|
|
74,848
|
|
|
224,814
|
|
|
225,354
|
|
Gain on sale of real
estate, net
|
(143)
|
|
|
—
|
|
|
(32,896)
|
|
|
(1,991)
|
|
Impairment
|
—
|
|
|
—
|
|
|
16,825
|
|
|
—
|
|
Proportionate share of
joint venture depreciation and amortization
|
487
|
|
|
468
|
|
|
1,462
|
|
|
1,443
|
|
FFO attributable to
common stockholders
|
$
|
97,280
|
|
|
$
|
68,489
|
|
|
$
|
291,918
|
|
|
$
|
249,369
|
|
Transaction
expenses
|
137
|
|
|
125
|
|
|
299
|
|
|
297
|
|
Loss on extinguishment
of debt, net
|
—
|
|
|
27,726
|
|
|
—
|
|
|
27,726
|
|
Non-controlling income
from OP units included in diluted shares
|
370
|
|
|
(105)
|
|
|
1,461
|
|
|
438
|
|
Other normalizing
adjustments (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
5,031
|
|
Normalized FFO
attributable to common stockholders
|
$
|
97,787
|
|
|
$
|
96,235
|
|
|
$
|
293,678
|
|
|
$
|
282,861
|
|
Non-cash compensation
expense
|
(368)
|
|
|
1,832
|
|
|
5,034
|
|
|
7,135
|
|
Straight-line rent
adjustments, net
|
(3,012)
|
|
|
(5,711)
|
|
|
(10,408)
|
|
|
(12,673)
|
|
Amortization of
(below) and above market leases/leasehold interests and corporate
assets, net
|
344
|
|
|
599
|
|
|
1,336
|
|
|
504
|
|
Amortization of
deferred financing costs and debt discount/premium, net
|
1,156
|
|
|
1,275
|
|
|
3,484
|
|
|
3,262
|
|
Recurring capital
expenditures, tenant improvements and leasing
commissions
|
(18,145)
|
|
|
(11,811)
|
|
|
(45,628)
|
|
|
(43,744)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
77,762
|
|
|
$
|
82,419
|
|
|
$
|
247,496
|
|
|
$
|
237,345
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders per diluted share
|
$
|
0.10
|
|
|
$
|
(0.03)
|
|
|
$
|
0.37
|
|
|
$
|
0.11
|
|
FFO adjustments per
diluted share, net
|
0.34
|
|
|
0.34
|
|
|
0.94
|
|
|
1.02
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.44
|
|
|
$
|
0.31
|
|
|
$
|
1.31
|
|
|
$
|
1.13
|
|
Normalized FFO
adjustments per diluted share, net
|
0.00
|
|
|
0.12
|
|
|
0.01
|
|
|
0.15
|
|
Normalized FFO
attributable to common stockholders per diluted share
|
$
|
0.44
|
|
|
$
|
0.43
|
|
|
$
|
1.32
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
222,811
|
|
|
222,101
|
|
|
222,470
|
|
|
221,521
|
|
|
(1) For the nine
months ended September 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
|
|
September 30,
2021
|
Net income
|
$
|
22,042
|
|
Interest
expense
|
23,331
|
|
Depreciation and
amortization expense
|
76,056
|
|
Gain on sale of real
estate, net
|
(143)
|
|
Proportionate share of
joint venture depreciation and amortization
|
487
|
|
EBITDAre
|
$
|
121,773
|
|
Transaction
expenses
|
137
|
|
Non-cash compensation
expense
|
(368)
|
|
Pro forma impact of
investments/dispositions
|
1,040
|
|
Pro forma impact of
developments
|
207
|
|
Adjusted
EBITDAre
|
$
|
122,789
|
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
491,156
|
|
|
|
As of
September 30, 2021:
|
|
Debt
|
$
|
3,079,190
|
|
Less: cash and cash
equivalents (1)
|
14,562
|
|
Net Debt
|
$
|
3,064,628
|
|
|
|
Net Debt to Adjusted
EBITDAre
|
6.2x
|
|
|
(1) Cash and cash
equivalents includes $1.7 million of restricted cash for funds 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.