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How Healthcare Trust of America Rewards Its Investors

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Feb. 28 2018, Updated 12:30 p.m. ET

Total shareholder return

Since its inception in 2007, Healthcare Trust of America (HTA) has delivered a return of 190.0%, beating the S&P 500 Index (SPX), which delivered a return of 139.0%, and the US REIT Index, which delivered a return of 71.0%. HTA has maintained a 9.7% annualized average total return since its first distribution.

Investors who invested $1,000 with HTA at inception could expect the invested amount to increase to ~$2,904 with dividends reinvested at the end of 2017.

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Dividends and buybacks

HTA has a robust balance sheet and a strong performance from an NOI (net operating income) perspective, and it doesn’t offer share buybacks.

The company currently has a dividend yield of 4.58%. Its dividend payments have shown a decent increase over the past few years. However, there also have been instances where the company has reduced the quarterly dividend payments.

The respective dividend yields for its peers Welltower (HCN), HCP (HCP), and Ventas (VTR) are 6.24%, 6.53%, and 6.15%. HTA comprises 0.69% of the Vanguard Real Estate Index ETF (VNQ).

HTA paid dividends of $0.57 in 2013, $0.72 in 2014, $1.17 in 2015, $1.19 in 2016, and $1.21 in 2017.

Price performance

The recent rout in the markets due to the expectation of increased interest rates affected the share price performance of the majority of the REITs. The stock performance of HTA has improved after its 4Q17 results. Its five-day change was ~1.6%, its one-month return was ~-2.6%, and its three-month return was ~-12.8%.

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