Healthcare Realty Q3 2021 Earnings Report
Key Takeaways
Healthcare Trust of America reported a positive third quarter, marked by an increase in FFO per diluted share and strategic investments. The company's portfolio performance remained robust, with a leased rate increase and successful lease executions. HTA is actively engaged in a strategic review process to enhance shareholder value.
Net income attributable to common stockholders was $0.10 per diluted share.
FFO increased by 41.9% compared to Q3 2020, reaching $0.44 per diluted share.
Same-Property Cash Net Operating Income (NOI) grew by 2.5% compared to Q3 2020.
Closed on four medical office building investments totaling $135 million with 469,000 square feet of GLA at anticipated in-place year one yields of 5.7%.
Healthcare Realty
Healthcare Realty
Healthcare Realty Revenue by Segment
Forward Guidance
HTA updates its 2021 guidance with net income attributable to common stockholders per share between $0.44 and $0.48, Same-Property Cash NOI between 2.0% and 2.5%, FFO per share as defined by NAREIT between $1.73 and $1.77, and Normalized FFO per share between $1.75 and $1.77.
Positive Outlook
- $400 - $500 million of investments at an average 5.5% to 6.0% yield
- General and administrative costs of $43 - $46 million
- Developments being substantially completed as planned
- Average fully diluted shares of between 224 and 225 million fully diluted shares of common stock outstanding, with proceeds from equity previously raised on a forward basis being utilized to fund acquisitions as they close.
- HTA expects leverage to range between 5.5x and 6.0x throughout the year.
Challenges Ahead
- The 2021 guidance is based on a number of assumptions that are subject to change and many of which are beyond HTA’s control.
- HTA’s guidance does not contemplate impacts from gains or losses from dispositions, potential impairments, or debt extinguishment costs, if any.
- If actual results vary from these assumptions, HTA’s expectations may change.
- The lower end of the range assumes settlement of forward equity agreements without deployment of cash proceeds for investments.
- There can be no assurance that HTA will achieve these results.