Healthcare Trust of America Beats Analysts’ Expectations in Q3 2016
Healthcare Trust of America, Inc. (NYSE: HTA) has had a busy 2016 so far.
The health care real estate investment trust (REIT), which owns medical office buildings only, is in the midst of its most active years since it went public, HTA Chairman and CEO Scott Peters said Wednesday during the company’s third-quarter 2016 earnings call.
“Year-to-date, 2016 has been one of our most active years since we listed on the New York Stock Exchange in June of 2012,” Peters said. “We have invested over $640 million in key acquisitions, generated over 3% same-store growth, raised almost $500 million of equity and repositioned our GAAP with over $550 million in financings.”
The company’s net income attributable to common stockholders fell 0.6% to $6.43 million in the third quarter of 2016, compared with the same quarter a year ago. HTA’s total revenue for the third quarter of 2016 was $118.34 million, compared with a total revenue of $103.94 million in the third quarter of 2015.
HTA’s third-quarter 2016 revenue of $118.25 million beat analysts’ expectations by $2.98 million.
The REIT’s business philosophy has four key pillars, Peters explained on the earnings call. First, HTA is committed to focusing its portfolio in specific markets. Namely, HTA is interested “in investing and creating critical mass in gateway cities that are unique, employment-rich economic hubs with superior economic fundamentals, higher academic university concentrations and strong health care growth,” Peters said.
Second, HTA looks to make targeted investments in core critical assets that are on or next to high-energy hospital campuses or academic university centers, as well as investments in core community outpatient locations that provide the great patient access in high-density locations.
Third, HTA strives to use a leasing and property management platform that brings institutional performance and consolidation to the fragmented medical office building sector.
Lastly, HTA strives to maintain a strong, investment-grade balance sheet and equity allocation discipline, Peters said.
“Our year-to-date investment activity of $640 million has been consistent with this philosophy, and is focused on growing our 20 to 25 key markets and achieving critical mass. We have acquired these assets in the average cap rate between 5.75% and 6.25%,” Peters said.
HTA is currently the biggest dedicated owner and operator of medical office buildings in the United States, based on gross leasable area.
Written by Mary Kate Nelson