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HTA’s Portfolio Riding on Investments, Acquisitions, and More

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Investments

Healthcare Trust of America (HTA) completed investments of $2.7 billion in 2017, and 90.0% of these properties are in key strategic markets. The total gross leasable area (or GLA) totaled ~6.8 million square feet, which includes projects under development.

HTA closed on Dukes Assets in 2017. These assets total ~$2.0 billion and encompass 71 properties and two parcels of land, including 50.0% ownership interest in a joint venture. The capital expenses of this deal were limited due to the average age of Duke’s Assets of 8.8 years.

HTA completed investments of $485.9 million, which includes expansion projects totaling 1.6 million square feet of GLA. The investments are located in HTA’s 20 to 25 key markets.

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Acquisitions

In 2017, HTA completed the acquisition of the Dukes development and construction platform. Prior to the acquisition, this development platform had developed over $1.0 billion in medical real estate assets over the last decade.

The average amount invested in acquisitions by HTA and its peers since 2012 are below:

  • Healthcare Trust of America (HTA): $807.0 million
  • Ventas (VTR): $65.0 million
  • HCP (HCP): $172.0 million
  • Welltower (HCN): $306.0 million

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

Dispositions

HTA completed dispositions of four medical office buildings in 2017. The aggregate sales price was $85.2 million and generated gains of $37.8 million.

Leasing

HTA entered into new and renewal leases of ~2.7 million square feet of GLA or 11.2% of the total portfolio. Tenant retention for this property portfolio was 78.0% and included ~1.5 million square feet of expiring leases. HTA has a lease rate of 91.8% by GLA and 91.6% for the same property portfolio.

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