Arizona (February 13, 2020) – Healthcare Trust of America, Inc. (NYSE:
HTA) (“HTA”) announced results for the quarter and year ended December 31,
2019, HTA grew its best-in-class portfolio with strategic accretive investments
in key markets, while continuing to build strong tenant and health system
relationships and strategic partnerships,” stated Chairman, CEO and
President Scott D. Peters. “As we
continue to be the leader in the medical office building (“MOB”) industry, HTA
will look ahead in 2020 for innovative ways to grow as a company and continue
to provide attractive returns for our stockholders.”
Fourth Quarter 2019:
Year Ended 2019:
Sheet and Capital Markets
of Topic 842 Leases
HTA expects 2020
guidance to range as follows:
outlook guidance includes the following additional assumptions: (i) $500 – $600
million of investments at a 5.5% to 6.25% yield; (ii) $50 million of
dispositions at a 6.0% average yield; (iii) general and administrative costs of
$44 – $46 million, and (iv) approximately 226 million diluted, common shares
outstanding. 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 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. 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.
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 24.8 million square feet
of GLA, with $7.3 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 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 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 2019 Annual Report on Form 10-K and in our
filings with the SEC.
HTA will host a conference call and webcast on Friday,
February 14, 2020 at 12:00 p.m. Eastern Time (10:00 a.m. Mountain Time) to
review its financial performance and operating results for the quarter and year
ended December 31, 2019.
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) 669-9658
Conference ID: 10139033
Available February 14, 2020 (one
hour after the end of the conference call) to March 14, 2020 at 12:00 p.m.
Eastern Time (10:00 a.m. Mountain Time)
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;
and (iii) notes receivable interest income.
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) 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.
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)
noncontrolling income or loss from OP Units included in diluted shares; and
(iv) 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) 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.
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
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.
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