Healthcare Trust of America, Inc. Provides Business Update

Rhea-AI Summary

Healthcare Trust of America (NYSE: HTA) announced a robust business update on September 13, 2021. The company has made significant investments totaling $130 million across four medical office buildings, enhancing its presence in key markets like Houston and Boca Raton. HTA's year-to-date investments amount to $183 million, with a substantial pipeline under contract. Additionally, HTA completed a 109,000 square feet medical office development in Dallas, now 74% pre-leased. The company’s strategic growth aims to capitalize on the shift towards outpatient care while searching for a new CEO.

Positive

• Closed four medical office building investments totaling $130 million, enhancing market presence.
• Year-to-date investments reach $183 million, with additional $121 million under contract.
• Completed a 109,000 square feet medical office in Dallas, 74% pre-leased.

Negative

• The ongoing CEO search may create uncertainty regarding leadership direction.
• Potential risks from economic fluctuations and tenant performance.

SCOTTSDALE, Ariz., Sept. 13, 2021 /PRNewswire/ -- Healthcare Trust of America, Inc. (NYSE:HTA or the "Company") provided a business update regarding recent investment and development activities.

"Our recent progress across the portfolio demonstrates HTA's continued success in penetrating key markets and positioning the Company to capitalize on the ongoing industry shift toward outpatient care," said Peter Foss, Interim President and Chief Executive Officer of HTA. "With a dedicated Board and management team, a strong balance sheet and an extensive pipeline of projects in development, HTA is well-positioned to continue servicing our properties and tenants, executing on infrastructure initiatives, and driving shareholder value creation."

Investment Activity 

As of August 31, 2021, HTA has closed on four medical office building investments in the third quarter of 2021. These investments total $130 million with 469,000 square feet of GLA anticipated with in-place year one yields of 5.7%. These acquisitions increase market densification in HTA's existing key markets and include:

• Houston Medical Center MOB (Houston, TX).  HTA acquired the MOB at 6655 Travis in the Texas Medical Center with 127,000 square feet of GLA.  Including the previously announced Horizon Tower development, HTA's exposure in the Texas Medical Center will increase to more than 1 million square feet of GLA with more than $300 million invested. The Texas Medical Center is the largest medical complex in the world, with 10 million patient visits per year and more than 50 million square feet of patient care, research and education.
• Twelve Oaks MOB (Houston, TX).  HTA acquired a 140,000 square feet MOB located in Houston, 4-miles northwest of the Texas Medical Center.  This fee-simple building is on-campus with River Oaks Medical Center.
• Clint Moore Medical Facility (Boca Raton, FL).  HTA acquired a MOB with 102,000 square feet of GLA.  This MOB is 100% occupied and is located in close proximity to Tenet's Delray Medical Center as well as two academic institutions.
• Austin Bluffs MOB (Colorado Springs, CO).  HTA acquired a MOB with 100,000 square feet of GLA located within a dynamic submarket of Denver.   

Year-to-date, HTA has closed on $183 million of medical office investments totaling more than 625,000 square feet of GLA, with an additional $121 million of investments encompassing more than 280,000 square feet of GLA under contract or exclusive letters of intent, subject to customary closing conditions.  These properties are approximately 85% leased as of closing and are well located within HTA's key markets.

Development Update

In August, HTA completed core and shell construction on its 109,000 square feet Class A medical office development located on HCA's new Medical City Heart & Spine Hospital in Dallas, Texas.  This building is currently 74% pre-leased with cash rents expected to commence in the fourth quarter of 2021, and HTA's investment on this campus exceeds more than 300,000 square feet of fee-simple MOBs, with additional land for a fourth MOB on-site.

CEO Search Process

As previously announced on September 9, 2021, in connection with its search process to identify the next Chief Executive Officer of HTA, the Board of Directors has formed an independent Search Committee comprising Chairman of the Board W. Bradley Blair, II, and directors Vicki U. Booth and Jay P. Leupp, to oversee the search process. The Board has retained Spencer Stuart, a leading global executive search firm, to assist with these efforts.

About HTA

Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings in the United States, comprising approximately 25.3 million square feet of GLA, with $7.5 billion invested primarily in medical office buildings as of June 30, 2021.  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.

Forward-Looking Language

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:

• the Company's ability to effectively deploy proceeds of offerings of securities;
• changes in economic conditions affecting the healthcare property sector, the commercial real estate market and the credit market;
• competition for acquisition and development of medical office buildings and other facilities that serve the healthcare industry;
• the Company's ability to acquire or develop real properties, and to successfully operate those properties once acquired or developed;
• pandemics and other health concerns, and the measures intended to prevent their spread, including the currently ongoing COVID-19 pandemic;
• economic fluctuations in certain states in which the Company's investments are geographically concentrated;
• financial stability and solvency of the Company's tenants, including the ability and willingness of the Company's tenants or borrowers to satisfy obligations under their respective contractual arrangements with the Company and the potential inability of the Company to enforce its rights under its leases during the pendency of any pandemic;
• the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration of the leases or the Company's ability to reposition its properties on the same or better terms in the event of a nonrenewal or in the event the Company exercises its right to replace an existing tenant;
• fluctuations in reimbursements from third party payors such as Medicare and Medicaid;
• supply and demand for operating properties in the market areas in which the Company operates;
• changes in operating expenses of the Company's properties including, but not limited to, expenditures for property taxes, property and liability insurance premiums, and utility rates;
• the Company's ability and the ability of its tenants to obtain and maintain adequate property, liability and other insurance from reputable, financial stable providers;
• restrictive covenants on certain of the Company's properties subject to ground leases that may restrict or limit the uses of its properties and the types of tenants the Company is able to lease to, and the Company's ability to attract new tenants;
• the impact from damage to the Company's properties from, or increased operating costs associated with, catastrophic weather and other natural events and the physical effect of climate change;
• retention of the Company's senior management team and its ability to attract and retain qualified key personnel;
• legislative and regulatory changes, including changes to laws governing the taxation of real estate investment trusts ("REITs") and changes to laws governing the healthcare industry;
• changes in interest rates, including changes as a result of the phasing out of the London Inter-bank Offered Rate ("LIBOR") effective June 30, 2023;
• the availability of capital and financing;
• restrictive covenants in the Company's credit facilities;
• changes in the Company's credit ratings;
• HTA's ability to remain qualified as a REIT; 
• changes in accounting principles generally accepted in the United States of America, policies and guidelines applicable to REITs; and
• the risk factors set forth in HTA's most recent Annual Report on Form 10-K and in HTA's most recent Quarterly Reports on Form 10-Q.

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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SOURCE Healthcare Trust of America, Inc.

FAQ

What recent investments did Healthcare Trust of America (HTA) announce?

Healthcare Trust of America announced four medical office building investments totaling $130 million on September 13, 2021.

How much has HTA invested year-to-date in 2021?

HTA has invested $183 million year-to-date in 2021.

What is the current leasing status of HTA's recent development in Dallas?

HTA's recent 109,000 square feet development in Dallas is currently 74% pre-leased.

What challenges does HTA face regarding its CEO position?

HTA is undergoing a CEO search, which may introduce uncertainty in leadership direction.

What impact do economic fluctuations have on Healthcare Trust of America (HTA)?

Economic fluctuations can affect tenant performance and HTA's overall financial stability.