SCOTTSDALE, ARIZONA, January 12, 2021 – Healthcare Trust of America, Inc. (NYSE:HTA or the “Company”), provided a business update for 4Q 2020 which included the acquisition of over $129 million of medical office investments and the collection of more than 99% of contractual rent due.
“We concluded 2020 and are starting 2021 with strong momentum on the acquisition front, largely due to the long-term relationships we have in our key markets,” stated Chairman, President, and CEO Scott D. Peters. “These acquisitions are a testament of HTA’s ability to leverage relationships with health systems and local developers to drive investment opportunities at attractive yields, in existing key markets where we have in-place scale that we expect to see continued growth and synergies.”
Recent Investment Activity
During Q4 2020, HTA closed on approximately $129 million of medical office investments primarily consisting of on-campus MOBs in the quarter at anticipated, in-place year one yields of over 5.8%, prior to any synergies from the Company’s full service operating platform. Including operating synergies, HTA anticipates year one yields of over 5.9%. These MOBs have 386,000 square feet of GLA, are 95% leased as of the time of acquisition, and are located in the Company’s existing key markets. During 2020, HTA has now closed on over $181 million of acquisitions totaling 600,000 square feet of GLA, with expected year one contractual MOB yields at approximately 6.0%, before any operating synergies. With operating synergies, HTA expects year one contractual yield on these acquisitions of 6.2%. These properties are approximately 94% leased as of closing, and are well located within dynamic submarkets in HTA’s key markets.
Acquisitions completed in 4Q20 include:
In addition, to these stabilized acquisitions, the Company also disposed of an on-campus MOB in Kansas City for approximately $17 million and acquired a fee-simple parcel of land adjacent to a leading hospital in Houston for approximately $10 million.
Rent Collections Update
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in medical office buildings as of September 30, 2020. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level.
Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have outperformed the US REIT index. More information about HTA can be found on the Company’s Website (www.htareit.com), Facebook, LinkedIn and Twitter.
This press release contains certain forward-looking statements. Forward-looking statements are based on current expectations, plans, estimates, assumptions and beliefs, including expectations, plans, estimates, assumptions and beliefs about HTA, stockholder value and earnings growth.
The forward-looking statements included in this press release are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond HTA’s control. Although HTA believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, HTA’s actual results and performance could differ materially and in adverse ways from those set forth in the forward-looking statements. Factors which could have a material adverse effect on HTA’s operations and future prospects include, but are not limited to:
Forward-looking statements speak only as of the date made. Except as otherwise required by the federal securities laws, HTA undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they are made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, HTA.
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