News Release: Healthcare Trust of America, Inc. Reports First Quarter 2019 Earnings

Healthcare Trust of America, Inc. Reports First Quarter 2019 Earnings

First Quarter 2019 Highlights

• Net Income Attributable to Common Stockholders increased $3.6 million, to $13.4 million, compared to Q1 2018. Earnings per diluted share increased $0.01, to $0.06 per diluted share, compared to Q1 2018.
• Funds From Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), was $82.9 million, or $0.40 per diluted share, for Q1 2019. Due to the adoption of Topic 842, initial direct costs are now reported in general and administrative expenses. For Q1 2018, we capitalized approximately $1.3 million of initial direct costs.
• Normalized FFO was $83.1 million, or $0.40 per diluted share, for Q1 2019.
• Normalized Funds Available for Distribution (“FAD”) was $73.2 million for Q1 2019.
• Same-Property Cash Net Operating Income (“NOI”) increased $3.0 million, or 2.7%, to $112.4 million, compared to Q1 2018.
• Leasing: HTA’s portfolio had a leased rate of 91.8% by gross leasable area (“GLA”) and an occupancy rate of 90.6% by GLA for Q1 2019. During Q1 2019, HTA executed 1.1 million square feet of GLA of new and renewal leases. Re-leasing spreads increased to 5.9% and tenant retention for the Same-Property portfolio was 86% by GLA for Q1 2019.

Balance Sheet and Capital Markets

• Balance Sheet: HTA ended Q1 2019 with total liquidity of $1.1 billion, inclusive of $61.1 million of cash and cash equivalents, resulting in total leverage of (i) 29.3%, measured as debt less cash and cash equivalents to total capitalization, and (ii) 5.6x, measured as debt less cash and cash equivalents to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization for real estate (“Adjusted EBITDAre“).
• Stock Repurchase Plan: During Q1 2019, HTA repurchased 345,786 shares of its common stock totaling approximately $8.5 million, at an average price of $24.65 per share.

Noteworthy Q1 2019 Activities

• Investments: In Q1 2019, HTA invested approximately $18.8 million to acquire a medical office building (“MOB”) in Westport, Connecticut. In addition, as of April 25, 2019, HTA has an additional $70 million of investments that have closed or are under exclusive contract. These MOBs are located in HTA’s existing key markets and will be operated by our asset management and leasing platform. Altogether, these MOBs have a year one capitalization rate of over 5.7%, excluding potential synergies from our full-service operating platform. These investments remain subject to customary closing conditions.
• Forest Park Update: In February 2019, it was announced that HCA – Medical City Dallas will open Medical City Heart Hospital and Medical City Spine Hospital this fall on HTA’s Forest Park Dallas campus. These hospitals are destination hospitals for highly specialized advanced cardiovascular and spine care consisting of the only dedicated cardiac emergency room in Dallas. In addition, HTA ended Q1 2019 with a total leased rate of approximately 93% for its Forest Park portfolio.
• Dividends: On April 25, 2019, HTA’s Board of Directors announced a quarterly cash dividend of $0.310 per share of common stock and per OP Unit. The quarterly dividend is to be paid on July 11, 2019 to stockholders of record of its common stock and holders of its OP Units on July 3, 2019.

Impact of Topic 842 Leases

• The Financial Accounting Standards Board issued Topic 842, which was effective for HTA as of January 1, 2019. Topic 842 modifies the treatment of initial direct costs, which historically under Topic 840 have been capitalized upon meeting criteria provided for in the applicable guidance. Topic 842 also eliminates the accounting recognition of expenses paid directly by tenants and moves certain bad debt costs from expense to revenue. In Q1 2018, HTA capitalized $1.3 million of initial direct leasing costs that would now be expensed. In addition, HTA recognized $3.6 million of tenant paid property taxes in both revenues and expenses and a nominal amount of bad debt costs recognized in expenses.

2019 Guidance

For 2019, HTA reaffirms the following guidance ranges (in millions, except per share data):

Annual Expectations
		Low	High
Net income attributable to common stockholders per share		$0.33	$0.36
Same-Property Cash NOI		2.00%	3.00%
FFO per share, as defined by NAREIT		$1.61	$1.66
Normalized FFO per share		$1.62	$1.67

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 23.2 million square feet of GLA, with $6.8 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 indices.  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; 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 2018 Annual Report on Form 10-K and in our filings with the SEC.

Conference Call

HTA will host a conference call and webcast on Friday, April 26, 2019 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to review its financial performance and operating results for the three months ended March 31, 2019.

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: 10130087
Available April 26, 2019 (one hour after the end of the conference call) to May 26, 2019 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time)

Financial Contact:

Robert A. Milligan
Chief Financial Officer
480.998.3478