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Healthcare Trust of America’s Balance Sheet

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Balance sheet overview

In 2017, Healthcare Trust of America (HTA) had total leverage of 29.9%. The company has been consistently maintaining the ratio in this range. Its net-debt-to-adjusted-EBITDA[1. earnings before interest, taxes, depreciation, and amortization] multiple for real estate is 5.9x.

Total liquidity at the end of 4Q17 at $1.2 billion, which includes $991.2 million of unsecured revolving credit facility, $100.4 million of cash and cash equivalents, and $75.0 million of forward equity agreement.

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Equity financing

HTA issued and sold ~$1.8 billion of equity at an average price of $28.76 per share with anticipated proceeds of $75.0 million to be settled in April 2018.

HTA has maintained a low leverage profile despite significant investments and has locked in its long-term cost of capital.

Debt financing

HTA has raised ~$1.2 billion in debt, which consisted of $900.0 million in public unsecured bonds at a 3.4% average interest rate and 7.7 years of average duration. HTA also had $286.0 million in seller financing at 4.0%, which matures in three equal installments. The majority of its debt matures after 2022.

Ratings

HTA has a Baa2 rating given by Moody’s and a BBB rating by S&P. Ventas (VTR) has a Baa1 rating by Moody’s and a BBB+ rating by S&P. Physicians Realty Trust (DOR) has a Baa3 rating given by Moody’s and a BBB- rating by S&P.

HTA comprises 0.69% of the Vanguard Real Estate Index ETF (VNQ).

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