Record Earnings Per
Share of $1.02 for 2018
Same-Property Cash NOI Growth, including 2.7% Growth in Q4 2018
Debt/Adjusted EBITDAre and $1.1
Billion in Liquidity
Arizona (February 14, 2019) – Healthcare Trust of America, Inc. (NYSE:
HTA) (“HTA”) announced results for the quarter and year ended December 31,
HTA demonstrated its ability to execute in all market conditions. Our portfolio remains best-in-class,
generating Same-Property Cash NOI growth of 2.5% for the year, driven primarily
by solid rental revenue gains of 2.2%.
Pricing power is strong, as evidenced by an acceleration in re-leasing
spreads to 4.4% in the fourth quarter,” stated Chairman, CEO and President
Scott D. Peters. “We remained disciplined in our capital allocation, selling
non-core assets at attractive pricing, focusing on relationship driven
developments, and avoiding lower quality assets that continue to trade at
aggressive pricing. As a result, we
enter 2019 with a fortress balance sheet that provides us with security and
flexibility to pursue opportunities in these changing real estate markets.”
Fourth Quarter 2018:
Year Ended 2018:
Sheet and Capital Markets
of Future Accounting Standards
expects 2019 guidance to range as follows (in millions, except per share data):
outlook guidance includes the following additional assumptions: (i) $250
million of investments at a 5.5% average yield; (ii) $75 million of
dispositions at a 6.0% average yield; (iii) 209.2 million diluted, common
shares outstanding; and (iv) $4 million to $5 million of selling costs, or
approximately $0.02 per share, associated with lease accounting changes. HTA expects leverage, measured as debt less
cash and cash equivalents to Adjusted EBITDAre
to remain stable year-over-year.
guidance is based on a number of various assumptions that are subject to change
and many of which are outside the control of the Company. 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.
Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator
of MOBs in the United States, comprising approximately 23.2 million square feet
of GLA, with $6.8 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 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.
2006 and listed on the New York Stock Exchange in 2012, HTA has produced
attractive returns for its stockholders that have outperformed the S&P 500
and US REIT indices. 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 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; and the availability of financing.
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 Annual Report on Form 10-K and in our
filings with the SEC.
HTA will host a conference call and webcast on Friday,
February 15, 2019 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) to
review its financial performance and operating results for the quarter and year
ended December 31, 2018.
Conference Call and Webcast Details:
Domestic Dial-In Number: (877)
International Dial-In Number: (412)
Canada Dial-In Number: (855)
Webcast: www.htareit.com under the
Investor Relations tab
Replay Conference Call Details:
Domestic Dial-In Number: (877)
International Dial-In Number: (412)
Canada Dial-In Number: (855)
Conference ID: 10127577
Available February 15, 2019 (one
hour after the end of the conference call) to March 15, 2019 at 11:00 a.m.
Eastern Time (9:00 a.m. Mountain Time)
HEALTHCARE TRUST OF AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited and in thousands, except for
share and per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands, except per
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
NOI, CASH NOI AND SAME-PROPERTY CASH NOI
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 and net change in
fair value of derivative financial instruments; (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 its 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; (iii) notes receivable
interest income; and (iv) other GAAP 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.
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) is 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.
TRUST OF AMERICA, INC.
FFO, NORMALIZED FFO AND NORMALIZED FAD
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
HTA computes Normalized FFO, which excludes from FFO:
(i) transaction expenses; (ii) gain or loss on change in fair value of
derivative financial instruments; (iii) gain or loss on extinguishment of debt;
(iv) noncontrolling income or loss from OP Units included in diluted shares;
and (v) other normalizing items, 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) other income or expense; (ii) non-cash compensation
expense; (iii) straight-line rent adjustments; (iv) amortization of below and
above market leases/leasehold interests and corporate assets; (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.
NET DEBT TO ADJUSTED EBITDAre
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 expense; (iv) impairment; (v) gain or loss on the sale of real
estate; and (vi) and the proportionate share of joint venture depreciation and
defined as Adjusted EBITDA, 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 items. 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.