Healthcare Trust of America Inc

In 2017, Healthcare Trust of America (HTA) had total leverage of 29.9%.

Welltower (HCN) has successfully set itself on a growth trajectory backed by strategic initiatives, aiding its steady top line growth.

Analysts gave HCP a mean price target of $26.59, implying a significant ~17.0% rise from its current level of $22.68.

HCP has a $2.0 billion credit facility with maturity in 2021, and the majority of its debt matures after 2019.

HCP has indicated that the recently enacted Tax Cut and Jobs Act could materially and adversely affect the company and its stockholders.

In 4Q17, HCP recorded an $84.0 million impairment on the debt investment and reduced the value to $105.0 million.

Rental revenues for HCP increased ~3.0% from $392.0 million in 2016 to $400.0 million in 2017.

Life Science is an 8.0 million square foot portfolio and represents ~25.0% of HCP’s NOI.

Analysts gave HTA a mean price target of $33.38, implying a significant ~26.0% rise from its current level of $26.30.

For 2017, HCP’s funds from operation stood at $1.95 per share, and its same-store cash NOI growth was 3.4%.

HTA has earnings per share of $0.33 and a PE (price-to-earnings) ratio of ~111.0x.

HCP Inc. has a diversified senior housing portfolio, which has a balanced mix of triple net and SHOP (senior housing operating portfolio).

HTA paid dividends of $1.17 in 2015, $1.19 in 2016, and $1.21 in 2017.

HTA has 3.4% combined pro forma same-store NOI growth, and its development assets are currently 86.0% pre-leased.

Healthcare Trust of America (HTA) completed investments of $2.7 billion in 2017, and 90% of these properties are in key strategic markets.

In 2015, US healthcare spending grew 5.8%, and health spending accounted for 17.8% of the nation’s GDP.

Healthcare Trust of America (HTA) has centers in more than 20 key markets in the US, covering 24 million square feet.

Funds from operation (or FFO) for Ventas (VTR) for 3Q17 stood at $1.04 per share.

The recent increase in interest rates has impacted the performance of VTR.

Ventas (VTR) has a strong flexible balance sheet and excellent liquidity.

Welltower (HCN) announced a dividend of $0.87 per share for 3Q17 from the previous guidance $0.86 in 3Q16. The dividend yield stands at ~5.6%.

Welltower (HCN) has kept its balance sheet in good shape. It has a cash balance of $236 million and $2.6 billion in credit line availability.

Welltower (HCN) increased its SSNOI (same-store net operating income) to 2.5%–3% from 2.25%–3%. This slight increase is due to strong seniors’ housing operating performance.

Healthcare Trust of America (HTA) is the most premium among our top three healthcare REITs in terms of price-to-FFO multiple.

REITs are required to pay 90.0% of their profits to shareholders in the form of share buybacks or dividends.

Welltower spent $292.0 million on development and expansion in 2Q17. Of that, $110.0 million was spent on acquisitions.

Healthcare REITs fund their working capital through debt and equity. So it’s important to optimize their spending in order to maximize income.

Strong performance in skilled nursing facilities prompted Welltower management to increase its same-store net operating income guidance for fiscal 2017.

Healthcare REITs have positioned their properties in premium locations where there’s high income growth.

Healthcare REITs that own senior care facilities, hospitals, and nursing homes are seeing growth. With the aging population rising, the need for critical healthcare facilities is also rising.

Welltower’s current price-to-FFO multiple is 17.34x. It had higher-than-expected results in 2Q17 and has an optimistic outlook for fiscal 2017.

Wellstone’s debt-to-equity ratio stood at 0.81x for 2Q17. That was lower than the industry mean of 1.07x.

On June 30, 2017, Welltower (HCN) announced a quarterly cash dividend of $0.87. The dividend is scheduled to be paid on August 21, 2017.

Higher same-store NOI (net operating income) and a strong demand for premium senior housing facilities drove Welltower’s profits during the quarter.

Welltower’s (HCN) expected performance in 2017 is reflected in analysts’ ratings for its stock. Analysts have given HCN a mean price target of $72.19.

The price-to-FFO (funds from operations) multiple is the most popular method of valuing real estate investment trusts (or REIT) such as Welltower (HCN).

Healthcare REITs such as Welltower (HCN) have to pay at least 90% of their taxable incomes as shareholder returns in order to function as REITs.

The new administration under President Donald Trump has taken a key step toward repealing the Affordable Health Care Act, more popularly known as Obamacare.

Welltower’s (HCN) strategic presences in high-barrier and affluent markets help it to maintain its leadership in the healthcare infrastructure industry.

Amid uncertainty in the healthcare sector, Welltower has been able to maintain its business momentum on the back of higher operating efficiency and strategic initiatives.

Healthcare REITs have shown resilience in the rising rate environment. REITs will likely be hurt more in this environment since they have to incur higher expenses.