Healthcare Trust of America, Inc. Reports 2020 Results and 2021 Earnings Guidance

SCOTTSDALE, Ariz., Feb. 22, 2021 /PRNewswire/ — Healthcare Belief of America, Inc. (NYSE: HTA) (“HTA”) introduced outcomes for the quarter and 12 months ended December 31, 2020. 

“In 2020, HTA continued to develop its best-in-class portfolio regardless of the continued COVID-19 pandemic, displaying the resilience and energy of the chief within the medical workplace constructing trade,” said Chairman, CEO and President Scott D. Peters. “As we sit up for 2021, we’re excited to see new alternatives to develop as an organization whereas persevering with  to offer enticing returns for our stockholders.”

Highlights

Fourth Quarter 2020:  

• Reported internet earnings attributable to widespread stockholders of $0.13 per diluted share.
• Reported Identical-Property Money Web Working Revenue (“NOI”) progress of two.5% in comparison with This autumn 2019.
• Reported Funds From Operations (“FFO”) as outlined by NAREIT of $0.43 per diluted share, a rise of 4.9% in comparison with This autumn 2019.
• Reported Normalized FFO of $0.43 per diluted share, a rise of two.4% in comparison with This autumn 2019.
• Reported Normalized FAD of $80.3 million, a rise of 11.1% in comparison with This autumn 2019.

12 months Ended 2020:

• Reported internet earnings attributable to widespread stockholders of $0.24 per diluted share.
• Reported FFO as outlined by NAREIT of $1.56 per diluted share, a rise of two.0% in comparison with 2019.
• Reported Normalized FFO of $1.71 per diluted share, a rise of 4.3% in comparison with 2019.
• Reported Normalized FAD of $317.6 million, a rise of 9.8% in comparison with 2019.
• Raised $800 million of senior unsecured notes at a coupon of two% each year.  Proceeds had been used to repay roughly $600 million of present debt. 
• Raised our quarterly dividend for the 7^th consecutive 12 months.

Portfolio Efficiency

• As of December 31, 2020, our portfolio had a leased charge of 89.8% by gross leasable space (“GLA”) and an occupancy charge of 89.1% by GLA. 

Fourth Quarter 2020:

• HTA executed roughly 0.6 million sq. toes of leases, together with 136 thousand sq. toes of latest leases and 442 thousand sq. toes of renewals.  Re-leasing spreads elevated to 2.7% and tenant retention for the Identical-Property portfolio was 80% by GLA. 
• For This autumn, we collected greater than 99.5% of our complete month-to-month rents which are contractually due and owed. Our January and February 2021 collections proceed to be in line with This autumn.

12 months Ended December 31, 2020:

• HTA executed roughly 3.9 million sq. toes of GLA in leases, or roughly 17% of our leased house. This contains 668 thousand sq. toes of GLA in new leases and three.2 million sq. toes of GLA in renewals.  Re-leasing spreads elevated to 4.7% and tenant retention for the Identical-Property portfolio was 87% by GLA. 
• For 2020 expenses solely, we collected 99% of our complete month-to-month rents which are contractually due and owed, which incorporates the affect of our remaining deferred expenses.
• In complete in 2020, we’ve got permitted deferral plans that complete roughly $11.1 million, or roughly 1.5% of annual revenues.  Of this complete, roughly $8.5 million have been repaid as of at this time.  The rest are anticipated to be repaid throughout the subsequent 6 to 9 months. Now we have not permitted any materials deferrals in January.

Funding Exercise

• Throughout the quarter, HTA closed on $129 million of medical workplace investments totaling roughly 386 thousand sq. toes of GLA. For the 12 months, HTA has now closed over $181 million of MOB investments totaling roughly 600 thousand sq. toes of GLA with anticipated year-one contractual yields of 6.0%. These properties had been roughly 94% leased as of closing and are positioned inside HTA’s key markets.
• In This autumn, we offered one asset within the Overland Park, Kansas marketplace for roughly $17 million leading to a $7.6 million acquire on sale of actual property.
• In 2020, we accomplished our preliminary improvement began by HTA.  This 127,000 SF Class A MOB improvement in Raleigh, North Carolina is anchored by WakeMed Well being System.  The constructing is 77% leased and commenced paying money lease in 4Q 2020. Annual Money NOI upon full stabilization is anticipated to approximate $3.4 million.
• Our remaining three developments in California, Florida, and Texas proceed to progress, and we anticipate completion on-time between Q1 and Q3 2021. The primary two of those developments, representing 135,000 sq. toes of GLA and over $50 million of complete development prices positioned in Miami, Florida and Bakersfield, California, are anticipated for development completion and occupancy graduation in late Q1 2021, producing NOI starting in Q2 2021.

Capital Exercise and Liquidity

• HTA ended This autumn 2020 with complete leverage of (i) 32.3%, measured as debt much less money and money equivalents to complete capitalization, and (ii) 5.9x internet debt to Adjusted Earnings earlier than Curiosity, Taxes, Depreciation and Amortization for actual property (“Adjusted EBITDAre“). Together with the affect of the unsettled ahead fairness agreements, leverage could be 29.2% and 5.3x, respectively.
• HTA ended This autumn with complete liquidity of $1.4 billion, inclusive of $1.0 billion accessible on our unsecured revolving credit score facility, $277.5 million of unsettled fairness ahead transactions and $115.4 million of money and money equivalents.
• Throughout the 12 months, we issued $800 million in senior unsecured notes due 2031 at 2.0% coupon. Proceeds had been used to refinance $600 million of present debt, permitting us to increase our nearest time period public debt to 2026.
• As of the top of the quarter, HTA had $277.5 million of fairness to be settled on a ahead foundation with the issuance of roughly 9.4 million shares of widespread inventory, topic to adjustment for prices to borrow below the phrases of the relevant fairness distribution agreements.

Dividend
On December 4, 2020, HTA’s Board of Administrators introduced a quarterly money dividend of $0.320 per share of widespread inventory and per Working Partnership Unit, paid on January 12, 2021 to stockholders of report on January 5, 2021.  This marks the 7^th consecutive 12 months of dividend will increase to our stockholders.

2021 Steerage:
HTA expects 2021 steerage to vary as follows:

The 2021 outlook steerage contains the next further assumptions:

• $300 – $600 million of investments at a mean 5.5% to six.0% yield;
• $50 – $100 million of inclinations at a 5.0% to 7.0% yield;
• basic and administrative prices of $43 – $46 million;
• common totally diluted shares of between 226 and 229 million totally diluted shares of widespread inventory excellent, with proceeds from fairness beforehand raised on a ahead foundation being utilized to fund acquisitions as they shut; and
• developments being considerably accomplished as deliberate.
• The decrease finish of the vary assumes settlement of ahead fairness agreements with out deployment of money proceeds for investments.
• HTA expects leverage, measured as (i) debt much less money and money equivalents to complete capitalization, and (ii) measured as debt much less money and money equivalents to Adjusted EBITDAre to vary between 5.5x and 6.0x all year long.

HTA’s 2021 steerage relies on a lot of numerous assumptions which are topic to vary and lots of of that are outdoors the management of the Firm.  Moreover, HTA’s steerage doesn’t ponder impacts from beneficial properties or losses from inclinations, potential impairments, or debt extinguishment prices, if any.  If precise outcomes fluctuate from these assumptions, HTA’s expectations might change.  There will be no assurance that HTA will obtain these outcomes.

About Healthcare Belief of America, Inc.
Healthcare Belief of America, Inc. (NYSE: HTA) is the biggest devoted proprietor and operator of MOBs in the US, comprising roughly 25.4 million sq. toes of GLA, with $7.5 billion invested primarily in MOBs.  HTA supplies actual property infrastructure for the built-in supply of healthcare companies in highly-desirable places.  Investments are focused to construct important mass in 20 to 25 main gateway markets that typically have main college and medical establishments, which interprets to superior demographics, high-quality graduates, mental expertise and job progress.  The strategic markets HTA invests in assist a robust, long-term demand for high quality medical workplace house.  HTA makes use of an built-in asset administration platform consisting of on-site leasing, property administration, engineering and constructing companies, and improvement capabilities to create full, state-of-the-art amenities in every market.  This drives efficiencies, robust tenant and well being system relationships, and strategic partnerships that lead to excessive ranges of tenant retention, rental progress and long-term worth creation.  Headquartered in Scottsdale, Arizona, HTA has developed a nationwide model with devoted relationships on the native degree.

Based in 2006 and listed on the New York Inventory Alternate in 2012, HTA has produced enticing returns for its stockholders which have outperformed the US REIT index.  Extra details about HTA will be discovered on the Firm’s Web site (www.htareit.com), Fb, LinkedIn and Twitter.

Ahead-Trying Language
This press launch accommodates sure forward-looking statements with respect to HTA.  Ahead-looking statements are statements that aren’t descriptions of historic info and embody statements concerning administration’s intentions, beliefs, expectations, plans or predictions of the longer term, throughout the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended.  As a result of such statements embody dangers, uncertainties and contingencies, precise outcomes might differ materially and in antagonistic methods from these expressed or implied by such forward-looking statements.  These dangers, uncertainties and contingencies embody, with out limitation, the next: adjustments in financial circumstances typically and the actual property market particularly; legislative and regulatory adjustments, together with adjustments to legal guidelines governing the taxation of REITs and adjustments to legal guidelines governing the healthcare trade; the supply of capital; adjustments in rates of interest; competitors in the actual property trade; the availability and demand for working properties in our proposed market areas; adjustments in accounting rules typically accepted in the US of America; insurance policies and pointers relevant to REITs; the supply of properties to amass; the supply of financing; and pandemics and different well being issues, and the measures meant to stop their unfold, together with the presently ongoing COVID-19 pandemic, and potential materials antagonistic impact these might have on our enterprise, outcomes of operations, money flows and monetary situation.  Further data regarding us and our enterprise, together with further components that would materially and adversely have an effect on our monetary outcomes, embody, with out limitation, the dangers described below Half I, Merchandise 1A – Threat Elements, in our 2020 Annual Report on Kind 10-Ok and in our filings with the SEC.

Convention Name
HTA will host a convention name and webcast on Tuesday, February 23, 2021 at 2:00 p.m. Japanese Time (11:00 a.m. Pacific Time) to evaluate its monetary efficiency and working outcomes for the quarter and 12 months ended December 31, 2020.

Convention Name and Webcast Particulars:
Home Dial-In Quantity: (877) 507-6265
Worldwide Dial-In Quantity: (412) 902-6633
Canada Dial-In Quantity: (855) 669-9657
Webcast: www.htareit.com below the Investor Relations tab

Replay Convention Name Particulars:
Home Dial-In Quantity: (877) 344-7529
Worldwide Dial-In Quantity: (412) 317-0088
Canada Dial-In Quantity: (855) 669-9658
Convention ID: 10152006
Accessible February 23, 2021 (one hour after the top of the convention name) to March 23, 2021 at 2:00 p.m. Japanese Time (11:00 a.m. Pacific Time)

Monetary Contact:
Robert A. Milligan
Chief Monetary Officer
480.998.3478

NOI is a non-GAAP monetary measure that’s outlined as internet earnings or loss (computed in accordance with GAAP) earlier than: (i) basic and administrative bills; (ii) transaction bills; (iii) depreciation and amortization expense; (iv) impairment; (v) curiosity expense; (vi) acquire or loss on gross sales of actual property; (vii) acquire or loss on extinguishment of debt; (viii) earnings or loss from unconsolidated three way partnership; and (ix) different earnings or expense.  HTA believes that NOI supplies an correct measure of the working efficiency of its working property as a result of NOI excludes sure gadgets that aren’t related to the administration of its properties.  Moreover, HTA believes that NOI is a broadly accepted measure of comparative working efficiency of actual property funding trusts (“REITs”).  Nevertheless, HTA’s use of the time period NOI will not be similar to that of different REITs as they might have totally different methodologies for computing this quantity.  NOI shouldn’t be thought of as a substitute for internet earnings or loss (computed in accordance with GAAP) as an indicator of HTA’s monetary efficiency.  NOI must be reviewed in reference to different GAAP measurements.

Money NOI is a non-GAAP monetary measure which excludes from NOI: (i) straight-line lease changes; (ii) amortization of under and above market leases/leasehold pursuits and different GAAP changes; (iii) notes receivable curiosity earnings; and (iv) different normalizing changes.  Contractual base lease, contractual lease will increase, contractual lease concessions and adjustments in occupancy or lease charges upon graduation and expiration of leases are a main driver of HTA’s income efficiency.  HTA believes that Money NOI, which removes the affect of straight-line lease changes, supplies one other measurement of the working efficiency of its working property.  Moreover, HTA believes that Money NOI is a broadly accepted measure of comparative working efficiency of REITs.  Nevertheless, HTA’s use of the time period Money NOI will not be similar to that of different REITs as they might have totally different methodologies for computing this quantity.  Money NOI shouldn’t be thought of as a substitute for internet earnings or loss (computed in accordance with GAAP) as an indicator of its monetary efficiency.  Money NOI must be reviewed in reference to different GAAP measurements.

To facilitate the comparability of Money NOI between intervals, HTA calculates comparable quantities for a subset of its owned and operational properties known as “Identical-Property”.  Identical-Property Money NOI excludes (i) properties which haven’t been owned and operated by HTA throughout all the span of all intervals offered and disposed properties, (ii) HTA’s share of unconsolidated joint ventures, (iii) improvement, redevelopment and land parcels, (iv) properties meant for disposition within the close to time period which have (a) been permitted by the Board of Administrators, (b) are actively marketed on the market, and (c) a suggestion has been acquired at costs HTA would transact and the gross sales course of is ongoing, and (v) sure non-routine gadgets.  Identical-Property Money NOI shouldn’t be thought of as a substitute for internet earnings or loss (computed in accordance with GAAP) as an indicator of its monetary efficiency.  Identical-Property Money NOI must be reviewed in reference to different GAAP measurements.

HTA computes FFO in accordance with the present requirements established by NAREIT.  NAREIT defines FFO as internet earnings or loss attributable to widespread stockholders (computed in accordance with GAAP), excluding beneficial properties or losses from gross sales of actual property property and impairment write-downs of depreciable property, plus depreciation and amortization associated to investments in actual property, and after changes for unconsolidated partnerships and joint ventures.  As a result of FFO excludes depreciation and amortization distinctive to actual property, amongst different gadgets, it supplies a perspective not instantly obvious from internet earnings or loss attributable to widespread stockholders.

HTA computes Normalized FFO, which excludes from FFO: (i) transaction bills; (ii) acquire or loss on extinguishment of debt; (iii) noncontrolling earnings or loss from OP Items included in diluted shares; and (iv) different normalizing changes, which embody gadgets which are uncommon and rare in nature.  HTA’s methodology for calculating Normalized FFO could also be totally different from the strategies utilized by different REITs and, accordingly, will not be similar to different REITs. 

HTA additionally computes Normalized FAD, which excludes from Normalized FFO: (i) non-cash compensation expense; (ii) straight-line lease changes; (iii) amortization of under and above market leases/leasehold pursuits and company property; (iv) deferred income – tenant enchancment associated and different earnings; (v) amortization of deferred financing prices and debt premium/low cost; and (vi) recurring capital expenditures, tenant enhancements and leasing commissions.  HTA believes this non-GAAP monetary measure supplies a significant supplemental measure of its working efficiency.  Normalized FAD shouldn’t be thought of as a substitute for internet earnings or loss attributable to widespread stockholders (computed in accordance with GAAP) as an indicator of its monetary efficiency, neither is it indicative of money accessible to fund money wants.  Normalized FAD must be reviewed in reference to different GAAP measurements.   

HTA presents these non-GAAP monetary measures as a result of it considers them vital supplemental measures of its working efficiency and believes they’re regularly utilized by securities analysts, traders and different events within the analysis of REITs.  Historic price accounting assumes that the worth of actual property property diminishes ratably over time.  Since actual property values have traditionally risen or fallen based mostly on market circumstances, many trade traders have thought of the presentation of working outcomes for actual property firms that use historic price accounting to be inadequate by themselves.  These non-GAAP monetary measures shouldn’t be thought of as alternate options to internet earnings or loss attributable to widespread stockholders (computed in accordance with GAAP) as indicators of its monetary efficiency.  FFO and Normalized FFO will not be indicative of money accessible to fund money wants.  These non-GAAP monetary measures must be reviewed in reference to different GAAP measurements.

As outlined by NAREIT, EBITDAre is computed as internet earnings or loss (computed in accordance with GAAP) plus: (i) curiosity expense; (ii) earnings tax expense (not relevant to HTA); (iii) depreciation and amortization; (iv) impairment; (v) acquire or loss on the sale of actual property; and (vi) the proportionate share of three way partnership depreciation and amortization.

Adjusted EBITDAre is offered on an assumed annualized foundation.  HTA defines Adjusted EBITDAre as EBITDAre (computed in accordance with NAREIT as outlined above) plus: (i) transaction bills; (ii) acquire or loss on extinguishment of debt; (iii) non-cash compensation expense; (iv) professional forma affect of its acquisitions/inclinations; and (v) different normalizing changes.  HTA considers Adjusted EBITDAre an vital measure as a result of it supplies further data to permit administration, traders, and its present and potential collectors to guage and evaluate its core working outcomes and its capacity to service debt.

SOURCE Healthcare Belief of America, Inc.

Associated Hyperlinks

http://www.htareit.com