About Healthcare Trust of America
DEDICATION TO MEDICAL OFFICE
HTA is dedicated to the medical office sector, which allows the company to develop dedicated, long term relationships with healthcare systems, academic medical centers and teaching hospitals, key physician groups, developers, and other industry participants in this space. The portfolio consists of medical office properties that will continue to be core, critical to the delivery of healthcare as demand grows and as the integration of the macroeconomic tailwinds shape the delivery of care.
INSTITUTIONAL ASSET MANAGEMENT PLATFORM DRIVES EFFICIENCY IN KEY MARKETS
HTA’s business strategy is underlined by establishing critical mass in key markets where HTA’s institutional property management and in-house leasing platform can generate scale, maximize expense efficiencies, and build lasting tenant relationships. To meet the specialized needs of healthcare providers, HTA has developed one of the industry’s most comprehensive asset management platforms that includes dedicated professionals in property management, leasing, engineering, accounting, construction and facilities management. Over 14 million square feet of space is currently managed by HTA’s national platform which is directed from HTA’s corporate headquarters in Scottsdale, Arizona and executed in over 10 regional offices within local markets.
CONSISTENT SHAREHOLDER RETURNS
HTA believes medical office buildings provide stable cash flows with relatively low vacancy risk, while still allowing for potentially higher returns through exposure to the fast growing healthcare sector. With dedication to this sector, HTA has generated shareholder returns that average 9% per annum since its founding through September 30, 2015. HTA pays a consistent dividend of $1.18 per annum, paid quarterly, that is supported by recurring and stable cash flow.
HEALTHCARE IS CHANGING
Medical Office is benefiting from tremendous macro-economic tailwinds that make it an attractive real estate sector in which to invest. On top of that, MOBs are one of the few asset classes that are utilized by every individual throughout their lifetime, with each person making approximately 3.7 trips to a physician’s office on an annual basis. This is a key driver for the high levels of tenant retention in the space.
From a macroeconomic perspective, there are several trends that are driving further demand and changing the healthcare industry today. The implementation of the Affordable Care Act (ACA) is expected to add between 25 and 35 million new insured individuals. The U.S. population is aging, with the number of elderly Americans growing at significant rates and over 10,000 individuals turning 65 every day. As a result of these trends, the healthcare sector and healthcare employment are projected to grow significantly faster than the rest of the U.S. economy.
At the same time, the ACA and technological changes are pushing healthcare into more cost efficient and integrated outpatient settings. As a result, hospitals are reevaluating their business models to capture gains in efficiency. This push is driving integration in the delivery of care and has increasingly relegated procedures and outpatient care into medical office. Similarly, physicians and health systems are grouping together to increase their overhead efficiency and invest in new technology. Healthcare is increasingly being provided in part by nurses, physician assistants, and allied health providers – a key reason that healthcare is expected to be the fastest growing employment sector of this decade.