SCOTTSDALE, Ariz., May 5,
2020 /PRNewswire/ -- Healthcare Trust of America, Inc. (NYSE:
HTA) ("HTA") announced results for the three months ended
March 31, 2020, provided an update on
business operations stemming from the impacts of the ongoing
coronavirus ("COVID-19") pandemic, and removed its 2020 earnings
guidance.
First Quarter 2020 Highlights
- Net income Attributable to Common Stockholders was
$17.9 million, or $0.08 per diluted share, an increase of
$0.02 per diluted share, compared to
2019.
- Funds From Operations ("FFO"), as defined by the
National Association of Real Estate Investment Trusts ("NAREIT"),
was $93.1 million, or $0.42 per
diluted share, for Q1 2020.
- Normalized FFO was $93.6
million, or $0.42 per diluted
share, for Q1 2020, an increase of $0.02, or 5.0%, per diluted share, compared to
2019.
- Normalized Funds Available for Distribution ("FAD")
was $77.4 million for Q1 2020.
- Same-Property Cash Net Operating Income
("NOI") increased $3.0
million, or 2.7%, to $115.4
million, compared to Q1 2019. This included same-property
rental revenue growth of 1.5%.
- Leasing: HTA's portfolio had a leased rate of 90.8%
by gross leasable area ("GLA") and an occupancy rate of 89.9% by
GLA for Q1 2020. During Q1 2020, HTA executed approximately
238 thousand square feet of new leases and 647 thousand square feet
of renewal leases. Re-leasing spreads increased to 2.7% and
tenant retention for the Same-Property portfolio was 85% by GLA for
Q1 2020.
Balance Sheet and Capital Markets
- Equity: During Q1 2020, HTA issued a total of
$21.3 million in equity, comprised of
approximately 0.6 million shares of common stock under its
at-the-market ("ATM") offering program on a forward basis at an
average price per share of $33.28. During the quarter, HTA received
net proceeds of $50.0 million on 1.7
million shares issued. As a result, we ended the quarter with
a total of $277.5 million of equity
to be settled on a forward basis with the issuance of approximately
9.4 million shares, subject to adjustment for costs to borrow under
the terms of the applicable equity distribution agreements.
- Balance Sheet: HTA ended Q1 2020 with total
leverage of (i) 33.7%, measured as debt less cash and cash
equivalents to total capitalization, and (ii) 5.6x net debt to
Adjusted Earnings before Interest, Taxes, Depreciation and
Amortization for real estate ("Adjusted EBITDAre").
Including the impact of the unsettled forward equity agreements,
leverage would be 30.3% and 5.1x, respectively, using the
definitions from above.
HTA ended Q1 with total liquidity of $1.1
billion, inclusive of $595.0
million available on our unsecured revolving credit
facility, $277.5 million of unsettled
forward equity agreements, and $216.5
million of cash and cash equivalents. HTA continues to have
very limited near term debt maturities, with less than $7 million maturing before our revolving credit
facility matures in June of 2022.
- Post Quarter Activity: Following quarter end, we drew
down the remaining $595 million on
our credit facility, increasing our pro forma cash position to
almost $800 million. We expect to
continue to monitor the financial markets and will balance our cash
position and revolving credit facility usage accordingly.
Noteworthy Q1 2020 Activities
- Investments: In Q1 2020, HTA closed on
approximately $41.5 million of
investments totaling approximately 167,000 square feet of
GLA. These properties were approximately 91% occupied as of
closing, and are located within HTA's key markets.
We also invested approximately $12
million in our 5 in-process development and re-development
projects. These developments are over 70% pre-leased to major
health systems and have $133 million
in remaining costs to complete.
- Dividends: On May 5, 2020, HTA's Board of Directors
announced a quarterly cash dividend of $0.315 per share of common stock and per OP Unit.
This amount is unchanged from the prior announcement and will be
paid on July 9, 2020 to stockholders of record of its common
stock and holders of its OP Units on July 2, 2020.
Every quarter, the Company's dividend remains subject to the review
and approval of HTA's Board of Directors. Beginning with the second
quarter and going forward, HTA will separate the announcement of
its dividend from its earnings release.
Impact of COVID-19
The Company has taken various
actions in response to the COVID-19 pandemic to adjust our business
operations and to address the needs of our tenants and staff. The
Company is committed to the health and safety of its tenants and
staff and has implemented many new protocols based on the Center
for Disease Control and other government mandated or recommended
guidelines. The Company has also adopted certain measures to help
mitigate the financial impact arising from the pandemic on its
tenants as outlined below.
HTA Tenants
Our tenants primarily consist of
health systems, universities, physicians, and healthcare service
providers, such as imaging companies, surgery center operators, and
pharmacies, of various size and complexity. By major category, our
tenants consist of (i) Health Systems / Universities at 60% of
annualized base rent ("ABR"); (ii) National / Large Regional
Healthcare Providers and Companies at 13%; and (iii) Local
Healthcare Providers at 27%. In addition, approximately 62% of our
tenants, by ABR, are credit rated, with approximately 47% coming
from investment grade rated tenants.
Buildings & Property Management
HTA
internally manages approximately 98% of our portfolio, giving us
direct access to our properties and tenants. To date:
- All of our properties have remained open and operational.
- More than 85% of our clinical tenants have remained open during
the COVID-19 pandemic.
- We have taken steps at our buildings to ensure that they remain
operational for our tenants during the COVID-19 pandemic, including
enhanced janitorial services, increased signage and hand
sanitization stations, as available, increased PPE for our property
management and building engineering staff, and stringent protocols
for visitors and vendors to seek to ensure that they are limiting
the potential spread of the virus.
- We have also used the relatively slower traffic patterns in our
buildings during the COVID-19 pandemic to conduct routine
maintenance and complete certain capital projects while minimizing
disruptions.
Leasing
Following the beginning of the COVID-19
pandemic, we are seeing the following leasing activity:
- New Leasing: We continue to see leads and requests for new
leases, however, we anticipate that the rate of new lease signings
will slow. Virtual tours are becoming more prevalent as we expand
our capabilities with this technology.
- Renewal Leasing: Given the current environment, we have seen an
increase in the number of existing tenants that are looking to
extend in-place. We have also worked with existing tenants to renew
their leases prior to expiration in exchange for new leasing
concessions today. We are currently in discussions to early renew
tenants who lease in excess of 400,000 square feet of GLA.
Cash Flows & Rent Deferrals
- Rent Collections: In April, we have collected approximately 98%
of monthly rents that are contractually due and owed.
- Rent Deferrals: As healthcare providers have seen their
near-term profitability and liquidity levels decline, we have been
in discussions with a number of our tenants about their requests to
defer the payment of a portion of their rents for a limited
duration. While many of these requests have been incoming, we have
proactively worked with key health system tenants to seek to help
them work through this period of time. Each request is evaluated on
a case by case basis. Key details of our deferrals include the
following:
-
- Total Deferrals: We have received and are currently evaluating
rent deferrals that total approximately 10% of our contractual rent
over the next 90 days, while we have approved deferrals that total
approximately 7% of our contractual rent over the next 90 days.
These requests have come from a mix of tenants, including local
physician groups, large healthcare providers, and primarily
not-for-profit, investment grade health systems.
- Payments of rent deferrals are expected to commence over the
next 6 – 12 months (starting in the third quarter of 2020),
depending on tenant size.
Earnings Impact & Guidance
Given the
current environment, we are formally withdrawing our earnings
guidance for 2020. While we continue to expect relatively stable
performance from our portfolio, we continue to have uncertainty
around (i) acquisitions, (ii) capital structure, and (iii) the
accounting implications of deferral requests which could
significantly impact our financials for the second quarter and the
remainder of 2020. Although we currently expect to collect
all of the rent that we agree to defer, we will review our
estimates for bad debt under the new market environment to the
extent any rents are not determined to be probable for
collection.
We do not undertake a duty to update our forward-looking
statements. We may, in our sole discretion, provide information in
future public announcements regarding our outlook that may be of
interest to the investment community.
About Healthcare Trust of America, Inc.
Healthcare
Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner
and operator of MOBs in the United
States, comprising approximately 24.9 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.
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 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.
Forward-Looking Language
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; the availability of
financing; and pandemics and other health concerns, and the
measures intended to prevent their spread, including the currently
ongoing COVID-19 pandemic, and potential material adverse effect
these may have on our business, results of operations, cash flows
and financial condition. 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.
Conference Call
HTA will host a conference call and
webcast on Wednesday, May 6, 2020 at
3:00 p.m. Eastern Time (12:00 p.m. Pacific Time) to review its financial
performance and operating results for the three months ended
March 31, 2020.
Conference Call and Webcast Details:
Domestic Dial-In Number: (877) 507-6265
International Dial-In Number: (412) 902-6633
Canada Dial-In Number: (855) 669-9657
Webcast: www.htareit.com under the Investor Relations tab
Replay Conference Call Details:
Domestic Dial-In Number: (877) 344-7529
International Dial-In Number: (412) 317-0088
Canada Dial-In Number: (855) 669-9658
Conference ID: 10143013
Available May 6, 2020 (one hour after
the end of the conference call) to June 6,
2020 at 3:00 p.m. Eastern Time
(12:00 p.m. Pacific Time)
Financial Contact:
Robert A. Milligan
Chief Financial Officer
480.998.3478
HEALTHCARE TRUST
OF AMERICA, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
except for share and per share data)
(Unaudited)
|
|
|
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
|
Real estate
investments:
|
|
|
|
|
Land
|
|
$
|
587,363
|
|
|
$
|
584,546
|
|
Building and
improvements
|
|
6,313,199
|
|
|
6,252,854
|
|
Lease
intangibles
|
|
630,535
|
|
|
628,066
|
|
Construction in
progress
|
|
40,350
|
|
|
28,150
|
|
|
|
7,571,447
|
|
|
7,493,616
|
|
Accumulated
depreciation and amortization
|
|
(1,519,845)
|
|
|
(1,447,815)
|
|
Real estate
investments, net
|
|
6,051,602
|
|
|
6,045,801
|
|
Investment in
unconsolidated joint venture
|
|
65,526
|
|
|
65,888
|
|
Cash and cash
equivalents
|
|
216,515
|
|
|
32,713
|
|
Restricted
cash
|
|
4,957
|
|
|
4,903
|
|
Receivables and other
assets, net
|
|
235,022
|
|
|
237,024
|
|
Right-of-use assets -
operating leases, net
|
|
238,516
|
|
|
239,867
|
|
Other intangibles,
net
|
|
12,041
|
|
|
12,553
|
|
Total
assets
|
|
$
|
6,824,179
|
|
|
$
|
6,638,749
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Debt
|
|
$
|
2,959,723
|
|
|
$
|
2,749,775
|
|
Accounts payable and
accrued liabilities
|
|
154,842
|
|
|
171,698
|
|
Derivative financial
instruments - interest rate swaps
|
|
19,480
|
|
|
29
|
|
Security deposits,
prepaid rent and other liabilities
|
|
49,895
|
|
|
49,174
|
|
Lease liabilities -
operating leases
|
|
198,628
|
|
|
198,650
|
|
Intangible
liabilities, net
|
|
36,659
|
|
|
38,779
|
|
Total
liabilities
|
|
3,419,227
|
|
|
3,208,105
|
|
Commitments and
contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred stock, $0.01
par value; 200,000,000 shares authorized; none issued and
outstanding
|
|
—
|
|
|
—
|
|
Class A common
stock, $0.01 par value; 1,000,000,000 shares authorized;
218,482,526 and 216,453,312 shares issued and outstanding as of
March 31, 2020 and December 31, 2019, respectively
|
|
2,185
|
|
|
2,165
|
|
Additional paid-in
capital
|
|
4,909,397
|
|
|
4,854,042
|
|
Accumulated other
comprehensive income
|
|
(17,592)
|
|
|
4,546
|
|
Cumulative dividends
in excess of earnings
|
|
(1,553,710)
|
|
|
(1,502,744)
|
|
Total stockholders'
equity
|
|
3,340,280
|
|
|
3,358,009
|
|
Noncontrolling
interests
|
|
64,672
|
|
|
72,635
|
|
Total
equity
|
|
3,404,952
|
|
|
3,430,644
|
|
Total liabilities and
equity
|
|
$
|
6,824,179
|
|
|
$
|
6,638,749
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
Rental
income
|
$
|
185,531
|
|
|
$
|
168,875
|
|
Interest and other
operating income
|
245
|
|
|
91
|
|
Total
revenues
|
185,776
|
|
|
168,966
|
|
Expenses:
|
|
|
|
Rental
|
56,862
|
|
|
51,468
|
|
General and
administrative
|
11,518
|
|
|
11,290
|
|
Transaction
|
140
|
|
|
40
|
|
Depreciation and
amortization
|
77,665
|
|
|
69,481
|
|
Interest
expense
|
23,872
|
|
|
23,970
|
|
Total
expenses
|
170,057
|
|
|
156,249
|
|
Gain (loss) on sale of
real estate, net
|
1,991
|
|
|
(37)
|
|
Income from
unconsolidated joint venture
|
422
|
|
|
486
|
|
Other
income
|
76
|
|
|
535
|
|
Net
income
|
$
|
18,208
|
|
|
$
|
13,701
|
|
Net income
attributable to noncontrolling interests
|
(307)
|
|
|
(261)
|
|
Net income
attributable to common stockholders
|
$
|
17,901
|
|
|
$
|
13,440
|
|
Earnings per
common share - basic:
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.08
|
|
|
$
|
0.07
|
|
Earnings per
common share - diluted:
|
|
|
|
Net income
attributable to common stockholders
|
$
|
0.08
|
|
|
$
|
0.06
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
216,692
|
|
|
205,080
|
|
Diluted
|
220,623
|
|
|
208,999
|
|
Dividends declared
per common share
|
$
|
0.315
|
|
|
$
|
0.310
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
18,208
|
|
|
$
|
13,701
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
72,949
|
|
|
66,528
|
|
Share-based
compensation expense
|
3,203
|
|
|
3,389
|
|
Income from
unconsolidated joint venture
|
(422)
|
|
|
(486)
|
|
Distributions from
unconsolidated joint venture
|
885
|
|
|
750
|
|
(Gain) loss on sale of
real estate, net
|
(1,991)
|
|
|
37
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables and other
assets, net
|
1,196
|
|
|
2,546
|
|
Accounts payable and
accrued liabilities
|
(19,662)
|
|
|
(40,402)
|
|
Security deposits,
prepaid rent and other liabilities
|
1,055
|
|
|
2,492
|
|
Net cash provided by
operating activities
|
75,421
|
|
|
48,555
|
|
Cash flows from
investing activities:
|
|
|
|
Investments in real
estate
|
(41,338)
|
|
|
(18,592)
|
|
Development of real
estate
|
(12,103)
|
|
|
(2,014)
|
|
Proceeds from the sale
of real estate
|
6,420
|
|
|
1,193
|
|
Capital
expenditures
|
(23,793)
|
|
|
(16,815)
|
|
Collection of real
estate notes receivable
|
191
|
|
|
181
|
|
Advances on real
estate notes receivable
|
(6,000)
|
|
|
—
|
|
Net cash used in
investing activities
|
(76,623)
|
|
|
(36,047)
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
unsecured revolving credit facility
|
720,000
|
|
|
—
|
|
Payments on unsecured
revolving credit facility
|
(415,000)
|
|
|
—
|
|
Payments on secured
mortgage loans
|
(95,602)
|
|
|
(587)
|
|
Proceeds from issuance
of common stock
|
50,020
|
|
|
—
|
|
Repurchase and
cancellation of common stock
|
(4,624)
|
|
|
(11,926)
|
|
Dividends
paid
|
(68,227)
|
|
|
(63,686)
|
|
Distributions paid to
noncontrolling interest of limited partners
|
(1,509)
|
|
|
(1,364)
|
|
Net cash provided by
(used in) financing activities
|
185,058
|
|
|
(77,563)
|
|
Net change in cash,
cash equivalents and restricted cash
|
183,856
|
|
|
(65,055)
|
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
37,616
|
|
|
133,530
|
|
Cash, cash
equivalents and restricted cash - end of period
|
$
|
221,472
|
|
|
$
|
68,475
|
|
HEALTHCARE TRUST
OF AMERICA, INC.
NOI, CASH NOI AND
SAME-PROPERTY CASH NOI
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
Net income
|
$
|
18,208
|
|
|
$
|
13,701
|
|
General and
administrative expenses
|
11,518
|
|
|
11,290
|
|
Transaction
expenses
|
140
|
|
|
40
|
|
Depreciation and
amortization expense
|
77,665
|
|
|
69,481
|
|
Interest
expense
|
23,872
|
|
|
23,970
|
|
(Gain) loss on sale of
real estate, net
|
(1,991)
|
|
|
37
|
|
Income from
unconsolidated joint venture
|
(422)
|
|
|
(486)
|
|
Other
income
|
(76)
|
|
|
(535)
|
|
NOI
|
$
|
128,914
|
|
|
$
|
117,498
|
|
NOI percentage
growth
|
9.7
|
%
|
|
|
|
|
|
|
NOI
|
$
|
128,914
|
|
|
$
|
117,498
|
|
Straight-line rent
adjustments, net
|
(3,245)
|
|
|
(3,258)
|
|
Amortization of
(below) and above market leases/leasehold interests, net and other
GAAP adjustments (1)
|
(1,699)
|
|
|
(222)
|
|
Notes receivable
interest income
|
(138)
|
|
|
(27)
|
|
Cash NOI
|
$
|
123,832
|
|
|
$
|
113,991
|
|
Acquisitions not
owned/operated for all periods presented and disposed properties
Cash NOI
|
(8,296)
|
|
|
(352)
|
|
Redevelopment Cash
NOI
|
44
|
|
|
(1,077)
|
|
Intended for sale Cash
NOI
|
(186)
|
|
|
(177)
|
|
Same-Property Cash
NOI (2)
|
$
|
115,394
|
|
|
$
|
112,385
|
|
Same-Property Cash
NOI percentage growth
|
2.7
|
%
|
|
|
|
|
|
|
|
(1)
|
The presentation
includes certain adjustments to allow for the consistent treatment
of items impacted by Topic 842-Leases.
|
(2)
|
Same-Property
includes 412 buildings for the three months ended March 31, 2020
and 2019, respectively.
|
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.
To 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.
HEALTHCARE TRUST
OF AMERICA, INC.
FFO, NORMALIZED
FFO AND NORMALIZED FAD
(Unaudited and in
thousands, except per share data)
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
2019
|
Net income
attributable to common stockholders
|
$
|
17,901
|
|
|
$
|
13,440
|
|
Depreciation and
amortization expense related to investments in real
estate
|
76,737
|
|
|
68,926
|
|
(Gain) loss on sale of
real estate, net
|
(1,991)
|
|
|
37
|
|
Proportionate share of joint venture
depreciation and amortization
|
467
|
|
|
472
|
|
FFO attributable to
common stockholders
|
$
|
93,114
|
|
|
$
|
82,875
|
|
Transaction
expenses
|
140
|
|
|
40
|
|
Noncontrolling income
from OP units included in diluted shares
|
307
|
|
|
233
|
|
Normalized FFO
attributable to common stockholders
|
$
|
93,561
|
|
|
$
|
83,148
|
|
Non-cash compensation
expense
|
3,203
|
|
|
3,389
|
|
Straight-line rent
adjustments, net
|
(3,245)
|
|
|
(3,258)
|
|
Amortization of
(below) and above market leases/leasehold interests and corporate
assets, net
|
(771)
|
|
|
332
|
|
Deferred revenue -
tenant improvement related and other
|
—
|
|
|
(1)
|
|
Amortization of
deferred financing costs and debt discount/premium, net
|
981
|
|
|
1,405
|
|
Recurring capital
expenditures, tenant improvements and leasing
commissions
|
(16,340)
|
|
|
(11,862)
|
|
Normalized FAD
attributable to common stockholders
|
$
|
77,389
|
|
|
$
|
73,153
|
|
|
|
|
|
Net income
attributable to common stockholders per diluted share
|
$
|
0.08
|
|
|
$
|
0.06
|
|
FFO adjustments per
diluted share, net
|
0.34
|
|
|
0.34
|
|
FFO attributable to
common stockholders per diluted share
|
$
|
0.42
|
|
|
$
|
0.40
|
|
Normalized FFO
adjustments per diluted share, net
|
0.00
|
|
|
0.00
|
|
Normalized FFO
attributable to common stockholders per diluted share
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
220,623
|
|
|
208,999
|
|
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.
HEALTHCARE TRUST
OF AMERICA, INC.
NET DEBT TO
ADJUSTED EBITDAre
(Unaudited and in
thousands)
|
|
|
Three Months
Ended
|
|
March 31,
2020
|
Net income
|
$
|
18,208
|
|
Interest
expense
|
23,872
|
|
Depreciation and
amortization expense
|
77,665
|
|
Gain on sale of real
estate, net
|
(1,991)
|
|
Proportionate share of
joint venture depreciation and amortization
|
467
|
|
EBITDAre
|
$
|
118,221
|
|
Transaction
expenses
|
140
|
|
Non-cash compensation
expense
|
3,203
|
|
Pro forma impact of
acquisitions
|
243
|
|
Adjusted
EBITDAre
|
$
|
121,807
|
|
|
|
Adjusted
EBITDAre, annualized
|
$
|
487,228
|
|
|
|
As of March 31,
2020:
|
|
Debt
|
$
|
2,959,723
|
|
Less: cash and cash
equivalents
|
216,515
|
|
Net Debt
|
$
|
2,743,208
|
|
|
|
Net Debt to Adjusted
EBITDAre
|
5.6
|
x
|
As defined 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 amortization.
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.
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SOURCE Healthcare Trust of America, Inc.