SCOTTSDALE, Ariz.,
Feb. 28, 2022 /PRNewswire/ -- Healthcare Trust of America,
Inc. (NYSE: HTA) ("HTA") announced results for the quarter and year
ended December 31, 2021.
Fourth Quarter 2021 Highlights:
- Reported net income attributable to common stockholders of
$0.07 per diluted share.
- Reported Funds From Operations ("FFO"), as defined by NAREIT,
of $0.42 per diluted share.
- Reported Normalized FFO of $0.43
per diluted share. This excludes $3.3
million of normalizing adjustments consisting of legal costs
related to the whistleblower investigation of $1.7 million, CEO search fees of $0.7 million, legal and professional fees related
to review of strategic alternatives of $0.4
million, and additional board and consulting fees pertaining
to these matters of $0.5
million.
- Reported Normalized FAD of $79.2
million, a decrease of 1.4% compared to Q4 2020.
- Reported Same-Property Cash Net Operating Income ("NOI") growth
of 1.1% compared to Q4 2020. The change in Same-Property Cash NOI
from Q4 2020 to Q4 2021 was impacted primarily by an additional
$0.8 million of termination fees and
late fees recognized in Q4 2020 as well as additional compensation
costs of $0.3 million in the current
period primarily related to employee retention matters.
Year Ended 2021:
- Reported net income attributable to common stockholders of
$98.0 million, or $0.44 per diluted share.
- Reported FFO of $1.72 per diluted
share, an increase of 10.3% compared to 2020.
- Reported Normalized FFO of $1.75
per diluted share, an increase of 2.3% compared to 2020. This
excludes the $3.3 million of
normalizing adjustments mentioned above. Costs incurred in Q3 2021
pertaining to these matters were not significant and therefore were
not included as normalizing adjustments for the year ended
December 31, 2021.
- Reported Normalized FAD of $326.7
million, an increase of 2.8% compared to 2020.
- Raised our quarterly dividend for the 8th consecutive
year.
Noteworthy Q4 2021 Matters:
- The results for the three months ended December 31, 2021 were significantly impacted by
several non-routine activities that resulted in additional costs
totaling approximately $5.8 million,
split between general and administrative and operating expenses.
These items primarily related to the Company's: (i) whistleblower
investigation (as further outlined in the Company's Current Report
on Form 8-K filed November 4, 2021),
(ii) CEO search costs, (iii) the announced strategic review
process, and (iv) employee retention costs and administrative costs
with respect to having an interim CEO. Costs related to these
matters primarily included: (i) an increase in compensation and
employee expenses including $1.2
million of increased bonus accruals related to Company
out-performance on total shareholder return in Q3 2021,
$0.7 million of CEO search fees, and
$0.5 million of short-term consulting
and other employee retention costs; (ii) increased legal and
professional fees of $2.3 million
primarily related to ongoing whistleblower and strategic review
matters; (iii) increased corporate-related travel costs of
$0.5 million; and (iv) increased
board fees of $0.6 million as a
result of a significant increase in board and committee meetings
pertaining to the CEO search and whistleblower and strategic review
matters, as well as additional compensation for the board
chairman.
- Additional costs incurred during Q3 2021 with respect to these
non-routine activities were not significant. Accordingly, the
results for the year ended December 31,
2021 were impacted primarily as a result of additional costs
incurred during Q4 2021.
- As noted above, of these additional costs, $3.3 million of expenses were identified as
non-recurring or incremental in nature and has therefore been
excluded from Normalized FFO as normalizing adjustments for the
three months and year ended December 31,
2021.
Portfolio Performance
- As of December 31, 2021, our
portfolio had a leased rate of 89.3% by gross leasable area ("GLA")
and an occupancy rate of 87.5% by GLA.
- During Q4 2021, HTA executed leases of 804 thousand square feet
of GLA, including 199 thousand square feet of GLA in new leases and
605 thousand square feet of GLA in renewals. Re-leasing spreads
were 0.5% and tenant retention for the Same-Property portfolio was
70% by GLA.
- Year-to-date, HTA executed leases of approximately 2.8 million
square feet of GLA, including 785 thousand square feet of GLA in
new leases and 2.0 million square feet of GLA in renewals.
Re-leasing spreads were 2.0% and tenant retention for the
Same-Property portfolio was 74% by GLA.
Investment Activity
- In 2021, HTA closed on $385
million of investments totaling over 950,000 square feet of
GLA. This includes approximately $306
million of medical office building investments, $70 million in loan funding commitments to
projects in Houston, Texas and
Charlotte, North Carolina, and
$9 million of investments in
development joint ventures in Houston,
Texas and Raleigh, North
Carolina. During Q4 2021, HTA closed on medical office
building investments in key markets totaling $118 million with 331,000 square feet of GLA at
anticipated in-place year one yields of 5.7%.
- HTA's development pipeline consists of five projects in the
pre-leasing process, totaling over 850,000 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.
- In Q4 2021, we sold one asset in Cincinnati, Ohio for approximately
$20 million at a cap rate of 4.2%
resulting in a $6.3 million gain on
sale of real estate. For the year ended December 31, 2021, we closed on the disposition
of 15 MOBs in non-key markets with a gross sales price of
$88.3 million, resulting in a net
gain on sale of approximately $39.2
million.
Capital Activity and Liquidity
- HTA ended Q4 2021 with total leverage of (i) 27.7%, 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").
- HTA ended Q4 with total liquidity of $1.1 billion, inclusive of $1.0 billion available on our unsecured revolving
credit facility and $52.4 million of
cash and cash equivalents.
First Quarter 2022 Dividend
On February 28, 2022, HTA's Board
of Directors issued a quarterly dividend of $0.325 per share of common stock. This
represents an annualized rate of $1.30 per share of common stock with an
annualized yield of 4.2% based on HTA's closing share price as of
February 25, 2022. The dividend
will be paid on April 11, 2022 to
stockholders of record on April 4,
2022.
Additionally, the eligible holders of HTA's operating
partnership units ("OP Units") will receive a quarterly OP Unit
distribution, which is on par with HTA's common stock dividend
described above.
The amount of common stock dividends HTA pays to its
stockholders is subject to the review and approval of the Company's
Board of Directors at its discretion, and is dependent on a number
of factors, including funds available for the payment of
distributions, HTA's financial condition, capital expenditure
requirements and annual distribution requirements needed to
maintain HTA's status as a real estate investment trust under the
Internal Revenue Code. HTA's Board of Directors may reduce
its dividend rate and HTA cannot guarantee the amount of dividends
paid in the future, if any.
Transaction with Healthcare Realty Trust Incorporated
On February 28, 2022, the Company
announced that it has agreed to enter into a strategic business
combination with Healthcare Realty Trust Incorporated (NYSE:HR)
("Healthcare Realty" or "HR"). HTA shareholders will receive a
total implied value of $35.08 per
share comprised of a special cash dividend of $4.82 per share and a transaction exchange ratio
of 1:1 based on HR's unaffected price of $30.26 on February 24,
2022.
This transaction brings together two of the largest owners of
medical office buildings, creating the preeminent, pure-play
medical office building REIT and positions the combined company to
create long-term shareholder value. The combined company will have
a pro forma equity market capitalization of approximately
$11.6 billion and a total enterprise
value of $17.6 billion based on the
implied values at market close on February
24, 2022.
In light of its pending transaction with HR, HTA will not
provide earnings guidance for 2022 and has decided to cancel its
investor conference call associated with its fourth quarter 2021
financial results, previously set for 11:00
A.M. ET on March 1, 2022. HTA
does not intend to host a conference call or webcast in connection
with its future financial results, which will be made available on
the standard timeline on the Investor Relations section of the
Company's website at www.htareit.com.
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 26.1 million square feet of GLA, and with
$7.8 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: our
ability to consummate the proposed transaction with Healthcare
Realty on the proposed terms or on the anticipated timeline, or at
all, including risks and uncertainties related to securing the
necessary stockholder approvals and satisfaction of other closing
conditions to consummate the proposed transaction; the occurrence
of any event, change or other circumstance that could give rise to
the termination of the definitive transaction agreement relating to
the proposed transaction; risks related to diverting the attention
of the Company and HR management from ongoing business operations;
failure to realize the expected benefits of the proposed
transaction; significant transaction costs and/or unknown or
inestimable liabilities; the risk of stockholder litigation in
connection with the proposed transaction, including resulting
expense or delay; the risk that the Company's business will not be
integrated successfully or that such integration may be more
difficult, time-consuming or costly than expected; the ability to
obtain the expected financing to consummate the proposed
transaction; risks related to future opportunities and plans for
the Company, including the uncertainty of expected future financial
performance and results of the Company following completion of the
proposed transaction; effects relating to the announcement of the
proposed transaction or any further announcements or the
consummation of the proposed transaction on the market price of the
Company's or HR's common stock; the possibility that, if the
Company does not achieve the perceived benefits of the proposed
transaction as rapidly or to the extent anticipated by financial
analysts or investors, the market price of the Company's common
stock could decline; general adverse economic and local real estate
conditions; 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.
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
(Unaudited)
|
|
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Real estate
investments:
|
|
|
|
|
Land
|
|
$
640,382
|
|
$
596,269
|
Building and
improvements
|
|
6,688,516
|
|
6,507,816
|
Lease
intangibles
|
|
404,714
|
|
628,621
|
Construction in
progress
|
|
32,685
|
|
80,178
|
|
|
7,766,297
|
|
7,812,884
|
Accumulated
depreciation and amortization
|
|
(1,598,468)
|
|
(1,702,719)
|
Real estate
investments, net
|
|
6,167,829
|
|
6,110,165
|
Assets held for sale,
net
|
|
27,070
|
|
—
|
Investment in
unconsolidated joint venture
|
|
62,834
|
|
64,360
|
Cash and cash
equivalents
|
|
52,353
|
|
115,407
|
Restricted
cash
|
|
4,716
|
|
3,358
|
Receivables and other
assets, net
|
|
334,941
|
|
251,728
|
Right-of-use assets -
operating leases, net
|
|
229,226
|
|
235,223
|
Other intangibles,
net
|
|
10,720
|
|
10,451
|
Total
assets
|
|
$
6,889,689
|
|
$
6,790,692
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt
|
|
$
3,028,122
|
|
$
3,026,999
|
Accounts payable and
accrued liabilities
|
|
198,078
|
|
200,358
|
Liabilities of assets
held for sale
|
|
262
|
|
—
|
Derivative financial
instruments - interest rate swaps
|
|
5,069
|
|
14,957
|
Security deposits,
prepaid rent and other liabilities
|
|
86,225
|
|
82,553
|
Lease liabilities -
operating leases
|
|
196,286
|
|
198,367
|
Intangible
liabilities, net
|
|
31,331
|
|
32,539
|
Total
liabilities
|
|
3,545,373
|
|
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;
228,879,846 and 218,578,012 shares
issued and outstanding as of
December 31, 2021 and
December 31, 2020, respectively
|
|
2,289
|
|
2,186
|
Additional paid-in
capital
|
|
5,178,132
|
|
4,916,784
|
Accumulated other
comprehensive loss
|
|
(7,041)
|
|
(16,979)
|
Cumulative dividends
in excess of earnings
|
|
(1,915,776)
|
|
(1,727,752)
|
Total stockholders'
equity
|
|
3,257,604
|
|
3,174,239
|
Non-controlling
interests
|
|
86,712
|
|
60,680
|
Total
equity
|
|
3,344,316
|
|
3,234,919
|
Total liabilities and
equity
|
|
$
6,889,689
|
|
$
6,790,692
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Rental
income
|
$
194,247
|
|
$
186,955
|
|
$
763,923
|
|
$
738,414
|
Interest and other
operating income
|
1,456
|
|
63
|
|
3,150
|
|
551
|
Total
revenues
|
195,703
|
|
187,018
|
|
767,073
|
|
738,965
|
Expenses:
|
|
|
|
|
|
|
|
Rental
|
60,294
|
|
56,549
|
|
236,850
|
|
226,859
|
General and
administrative
|
17,490
|
|
10,621
|
|
49,744
|
|
42,969
|
Transaction
|
73
|
|
668
|
|
372
|
|
965
|
Depreciation and
amortization
|
76,527
|
|
75,344
|
|
303,834
|
|
303,828
|
Interest
expense
|
23,312
|
|
23,328
|
|
92,762
|
|
94,613
|
Impairment
|
6,113
|
|
—
|
|
22,938
|
|
—
|
Total
expenses
|
183,809
|
|
166,510
|
|
706,500
|
|
669,234
|
Gain on sale of real
estate, net
|
6,332
|
|
7,599
|
|
39,228
|
|
9,590
|
Loss on sale of
corporate asset, net
|
(2,106)
|
|
—
|
|
(2,106)
|
|
—
|
Loss on extinguishment
of debt, net
|
—
|
|
—
|
|
—
|
|
(27,726)
|
Income from
unconsolidated joint venture
|
406
|
|
389
|
|
1,604
|
|
1,612
|
Other
income
|
84
|
|
11
|
|
485
|
|
301
|
Net
income
|
$
16,610
|
|
$
28,507
|
|
$
99,784
|
|
$
53,508
|
Net income
attributable to non-controlling interests
|
(307)
|
|
(452)
|
|
(1,768)
|
|
(890)
|
Net income
attributable to common stockholders
|
$
16,303
|
|
$
28,055
|
|
$
98,016
|
|
$
52,618
|
Earnings per
common share - basic:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
0.07
|
|
$
0.13
|
|
$
0.45
|
|
$
0.24
|
Earnings per
common share - diluted:
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
0.07
|
|
$
0.13
|
|
$
0.44
|
|
$
0.24
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
221,339
|
|
218,575
|
|
219,439
|
|
218,078
|
Diluted
|
227,248
|
|
222,099
|
|
224,215
|
|
221,666
|
Dividends declared
per common share
|
$
0.325
|
|
$
0.320
|
|
$
1.290
|
|
$
1.270
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
$
99,784
|
|
$
53,508
|
|
$
30,758
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
283,300
|
|
283,039
|
|
280,969
|
Share-based
compensation expense
|
7,262
|
|
8,916
|
|
10,127
|
Income from
unconsolidated joint venture
|
(1,604)
|
|
(1,612)
|
|
(1,882)
|
Distributions from
unconsolidated joint venture
|
3,130
|
|
3,240
|
|
3,030
|
Impairment
|
22,938
|
|
—
|
|
—
|
(Gain) loss on sale of
real estate, net
|
(39,228)
|
|
(9,590)
|
|
154
|
Loss on sale of
corporate asset, net
|
2,106
|
|
—
|
|
—
|
Loss on extinguishment
of debt, net
|
—
|
|
27,726
|
|
21,646
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Receivables and other
assets, net
|
(4,699)
|
|
(11,042)
|
|
(12,857)
|
Accounts payable and
accrued liabilities
|
9,430
|
|
2,066
|
|
(128)
|
Security deposits,
prepaid rent and other liabilities
|
3,197
|
|
31,711
|
|
8,577
|
Net cash provided by
operating activities
|
385,616
|
|
387,962
|
|
340,394
|
Cash flows from
investing activities:
|
|
|
|
|
|
Investments in real
estate
|
(264,340)
|
|
(185,286)
|
|
(553,298)
|
Development of real
estate
|
(63,306)
|
|
(77,077)
|
|
(28,066)
|
Proceeds from the sale
of real estate
|
87,628
|
|
22,939
|
|
4,880
|
Proceeds from the sale
of corporate asset
|
10,127
|
|
—
|
|
—
|
Capital
expenditures
|
(97,155)
|
|
(74,743)
|
|
(91,544)
|
Other
investment
|
(6,000)
|
|
—
|
|
—
|
Collection of real
estate notes receivable
|
15,405
|
|
907
|
|
739
|
Advances on real
estate notes receivable
|
(82,214)
|
|
(6,000)
|
|
—
|
Net cash used in
investing activities
|
(399,855)
|
|
(319,260)
|
|
(667,289)
|
Cash flows from
financing activities:
|
|
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
310,000
|
|
1,329,862
|
|
610,000
|
Payments on unsecured
revolving credit facility
|
(310,000)
|
|
(1,429,862)
|
|
(510,000)
|
Proceeds from
unsecured senior notes
|
—
|
|
793,568
|
|
906,927
|
Payments on unsecured
senior notes
|
—
|
|
(300,000)
|
|
(700,000)
|
Payments on secured
mortgage loans
|
—
|
|
(114,060)
|
|
(97,361)
|
Deferred financing
costs
|
(8,053)
|
|
(6,800)
|
|
(7,776)
|
Debt extinguishment
costs
|
—
|
|
(25,939)
|
|
(18,383)
|
Proceeds from issuance
of common stock
|
251,250
|
|
50,020
|
|
323,393
|
Issuance of OP
Units
|
—
|
|
1,378
|
|
—
|
Repurchase and
cancellation of common stock
|
(3,414)
|
|
(5,192)
|
|
(12,178)
|
Dividends
paid
|
(281,820)
|
|
(275,816)
|
|
(256,117)
|
Distributions paid to
non-controlling interest of limited partners
|
(5,420)
|
|
(4,712)
|
|
(8,758)
|
Sale of noncontrolling
interest
|
—
|
|
—
|
|
1,234
|
Net cash (used in)
provided by financing activities
|
(47,457)
|
|
12,447
|
|
230,981
|
Net change in cash,
cash equivalents and restricted cash
|
(61,696)
|
|
81,149
|
|
(95,914)
|
Cash, cash
equivalents and restricted cash - beginning of year
|
118,765
|
|
37,616
|
|
133,530
|
Cash, cash
equivalents and restricted cash - end of year
|
$
57,069
|
|
$
118,765
|
|
$
37,616
|
HEALTHCARE TRUST
OF AMERICA, INC.
|
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
(loss)
|
$
16,610
|
|
$
28,507
|
|
$
99,784
|
|
$
53,508
|
General and
administrative expenses
|
17,490
|
|
10,621
|
|
49,744
|
|
42,969
|
Transaction
expenses
|
73
|
|
668
|
|
372
|
|
965
|
Depreciation and
amortization expense
|
76,527
|
|
75,344
|
|
303,834
|
|
303,828
|
Interest
expense
|
23,312
|
|
23,328
|
|
92,762
|
|
94,613
|
Impairment
|
6,113
|
|
—
|
|
22,938
|
|
—
|
Gain on sale of real
estate, net
|
(6,332)
|
|
(7,599)
|
|
(39,228)
|
|
(9,590)
|
Loss on sale of
corporate asset, net
|
2,106
|
|
—
|
|
2,106
|
|
—
|
Loss on extinguishment
of debt, net
|
—
|
|
—
|
|
—
|
|
27,726
|
Income from
unconsolidated joint venture
|
(406)
|
|
(389)
|
|
(1,604)
|
|
(1,612)
|
Other
income
|
(84)
|
|
(11)
|
|
(485)
|
|
(301)
|
NOI
|
$
135,409
|
|
$
130,469
|
|
$
530,223
|
|
$
512,106
|
NOI percentage
growth
|
3.8
%
|
|
|
|
3.5
%
|
|
|
|
|
|
|
|
|
|
|
NOI
|
$
135,409
|
|
$
130,469
|
|
$
530,223
|
|
$
512,106
|
Straight-line rent
adjustments, net
|
(3,475)
|
|
(3,298)
|
|
(13,883)
|
|
(15,971)
|
Amortization of
(below) and above market leases/leasehold
interests, net and other GAAP
adjustments
|
(486)
|
|
(519)
|
|
(1,899)
|
|
(2,722)
|
Notes receivable
interest income
|
(1,457)
|
|
(9)
|
|
(2,730)
|
|
(161)
|
Other normalizing
adjustments (1)
|
—
|
|
—
|
|
—
|
|
5,031
|
Cash NOI
|
$
129,991
|
|
$
126,643
|
|
$
511,711
|
|
$
498,283
|
Acquisitions not
owned/operated for all periods presented
and disposed properties Cash
NOI
|
(6,484)
|
|
(2,234)
|
|
(24,401)
|
|
(12,133)
|
Redevelopment Cash
NOI
|
(105)
|
|
(823)
|
|
(928)
|
|
(4,435)
|
Intended for sale Cash
NOI
|
(6,238)
|
|
(7,712)
|
|
(25,590)
|
|
(28,743)
|
Same-Property Cash
NOI (2)
|
$
117,164
|
|
$
115,874
|
|
$
460,792
|
|
$
452,972
|
Same-Property Cash
NOI percentage growth
|
1.1
%
|
|
|
|
1.7
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the year
ended December 31, 2020, other normalizing adjustments includes the
following: non-recurring bad debt of $4,672; incremental hazard pay
to facilities employees of $314; and incremental personal
protective equipment of $45.
|
(2) Same-Property
includes 423 and 414 buildings for the three months and year ended
December 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 and
corporate assets; (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
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income (loss)
attributable to common stockholders
|
$
16,303
|
|
$
28,055
|
|
$
98,016
|
|
$
52,618
|
Depreciation and
amortization expense related to
investments in real estate
|
75,791
|
|
74,368
|
|
300,605
|
|
299,722
|
Gain on sale of real
estate, net
|
(6,332)
|
|
(7,599)
|
|
(39,228)
|
|
(9,590)
|
Loss on sale of
corporate asset, net
|
2,106
|
|
—
|
|
2,106
|
|
—
|
Impairment
|
6,113
|
|
—
|
|
22,938
|
|
—
|
Proportionate share of
joint venture depreciation and
amortization
|
487
|
|
506
|
|
1,949
|
|
1,949
|
FFO attributable to
common stockholders
|
$
94,468
|
|
$
95,330
|
|
$
386,386
|
|
$
344,699
|
Transaction
expenses
|
73
|
|
668
|
|
372
|
|
965
|
Loss on extinguishment
of debt, net
|
—
|
|
—
|
|
—
|
|
27,726
|
Non-controlling income
from OP units included in diluted
shares
|
307
|
|
452
|
|
1,768
|
|
890
|
Other normalizing
adjustments (1)
|
3,284
|
|
—
|
|
3,284
|
|
5,031
|
Normalized FFO
attributable to common stockholders
|
$
98,132
|
|
$
96,450
|
|
$
391,810
|
|
$
379,311
|
Non-cash compensation
expense
|
2,228
|
|
1,781
|
|
7,262
|
|
8,916
|
Straight-line rent
adjustments, net
|
(3,475)
|
|
(3,298)
|
|
(13,883)
|
|
(15,971)
|
Amortization of
(below) and above market leases/leasehold
interests and corporate assets,
net
|
279
|
|
618
|
|
1,615
|
|
1,122
|
Deferred revenue -
tenant improvement related and other
|
(2)
|
|
—
|
|
(2)
|
|
—
|
Amortization of
deferred financing costs and debt
discount/premium, net
|
1,222
|
|
1,190
|
|
4,706
|
|
4,452
|
Recurring capital
expenditures, tenant improvements and
leasing commissions
|
(19,203)
|
|
(16,457)
|
|
(64,831)
|
|
(60,201)
|
Normalized FAD
attributable to common stockholders
|
$
79,181
|
|
$
80,284
|
|
$
326,677
|
|
$
317,629
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders per
diluted share
|
$
0.07
|
|
$
0.13
|
|
$
0.44
|
|
$
0.24
|
FFO adjustments per
diluted share, net
|
0.35
|
|
0.30
|
|
1.28
|
|
1.32
|
FFO attributable to
common stockholders per diluted share
|
$
0.42
|
|
$
0.43
|
|
$
1.72
|
|
$
1.56
|
Normalized FFO
adjustments per diluted share, net
|
0.01
|
|
0.00
|
|
0.03
|
|
0.15
|
Normalized FFO
attributable to common stockholders per
diluted share
|
$
0.43
|
|
$
0.43
|
|
$
1.75
|
|
$
1.71
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
227,248
|
|
222,099
|
|
224,215
|
|
221,666
|
|
(1) For the three
months and year ended December 31, 2021, other normalizing
adjustments includes the following: costs related to whistleblower
investigation of $1,645; CEO search fees of $743; costs related to
strategic matters of $387; and corresponding additional board and
consulting fees of $509. For the year ended December 31,
2020, other normalizing adjustments includes the following:
non-recurring bad debt of $4,672; incremental hazard pay to
facilities employees of $314; and incremental personal protective
equipment of $45.
|
HTA computes FFO in accordance with the current standards
established by NAREIT. FFO is defined 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 corporate assets 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
|
|
December 31,
2021
|
Net income
|
$
16,610
|
Interest
expense
|
23,312
|
Depreciation and
amortization expense
|
76,527
|
Impairment
|
6,113
|
Gain on sale of real
estate, net
|
(6,332)
|
Loss on sale of
corporate asset, net
|
2,106
|
Proportionate share of
joint venture depreciation and amortization
|
487
|
EBITDAre
|
$
118,823
|
Transaction
expenses
|
73
|
Non-cash compensation
expense
|
2,228
|
Other normalizing
adjustments (1)
|
3,284
|
Pro forma impact of
investments/dispositions
|
673
|
Pro forma impact of
developments
|
442
|
Adjusted
EBITDAre
|
$
125,523
|
|
|
Adjusted
EBITDAre, annualized
|
$
502,092
|
|
|
As of
December 31, 2021:
|
|
Debt
|
$
3,028,122
|
Less: cash and cash
equivalents
|
52,353
|
Net Debt
|
$
2,975,769
|
|
|
Net Debt to Adjusted
EBITDAre
|
5.9x
|
|
(1) For the three
months ended December 31, 2021, other normalizing adjustments
includes the following: costs related to whistleblower
investigation of $1,645; CEO search fees of $743; costs related to
strategic matters of $387; and corresponding additional board and
consulting fees of $509.
|
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 corporate assets; 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.