HTA Announces $187 Million of New Medical Office Investments

$150 Million Invested in On-Campus MOBs in Orange County California

SCOTTSDALE, ARIZONA—September 7, 2016—Healthcare Trust of America, Inc. (NYSE:HTA), the largest dedicated owner and operator of medical office buildings in the United States, announced today that it closed on approximately $187 million of medical office buildings (MOBs) investments thus far in the third quarter. These investments include the $150 million acquisition in the fee simple interest in four MOBs located on the St. Joseph Health – Mission Hospital Campus in Orange County, California, part of the Providence Healthcare Network. For the year, HTA has now invested over $600 million in medical office buildings totaling 2 million square feet, almost 60% of which were located on-campus. 

Mission Viejo, California

The Company acquired four multi-tenant medical office buildings totaling over 262 thousand square feet for approximately $150 million in the affluent, high barrier-to-entry market of Mission Viejo, California.  This was a fee simple transaction with no ground lease encumbrances.  Mission Viejo is a dynamic Southern California market that is conveniently situated in South Orange County. This area boasts some of the highest residential real estate values in the U.S. and is home to various job nodes.  The temperate climate, high quality of life and strong medical university system make this a destination location for highly skilled medical professionals.

The MOBs are leased by various medical practices affiliated with St. Joseph Health System, which features an investment grade A1 rating by Moody’s and an AA- rating by Fitch.  With this transaction, HTA has invested approximately $200 million within the Los Angeles MSA representing over 465 thousand square feet where the Company now has critical mass to make this one of its Key Markets.  St. Joseph Health, now part of Providence Health based in Redmond, Washington, is the third largest health system in the U.S. with 50 hospitals, and a strong presence up and down the West Coast.

Birmingham, Alabama MOB’s

In addition, HTAacquired three medical office buildings totaling 217 thousand square feet located on the campus of various Tenet hospitals in Birmingham, AL for $37 million. These transactions bring HTA’s total investment in the Birmingham MSA to approximately $65 million and 319 thousand square feet, all on-campus with Tenet Healthcare.

Additional details for these acquisitions can be found in HTA’s portfolio overview found on its website (www.htareit.com). www.htareit.com.

About HTA

Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings) in the United States, based on gross leasable area (“GLA”).  Founded in 2006 and listed on the New York Stock Exchange in 2012, we provide real estate infrastructure for the integrated delivery of healthcare services in highly desirable locations.  Over the last decade, we have invested $4.2 billion primarily in MOBs and other healthcare assets comprising 17.4 million square feet of GLA.  Our investments are targeted in 20 to 25 key markets that we believe have superior healthcare demographics that support strong, long-term demand for medical office space.  We have achieved, and continue to achieve, critical mass within these key markets by expanding our presence through accretive acquisitions, and utilizing our in-house operating expertise through our regionally located property management and leasing platform.

Additional information about HTA can be found on the Company’s website at www.htareit.com.

Forward-Looking Language

This press release contains certain forward-looking statements. Forward-looking statements are based on current expectations, plans, estimates, assumptions and beliefs, including expectations, plans, estimates, assumptions and beliefs about HTA, stockholder value and earnings growth.

The forward-looking statements included in this press release are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond HTA’s control. Although HTA believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, HTA’s actual results and performance could differ materially and in adverse ways from those set forth in the forward-looking statements. Factors which could have a material adverse effect on HTA’s operations and future prospects include, but are not limited to:

  • changes in economic conditions affecting the healthcare property sector, the commercial real estate market and the credit market;
  • competition for acquisition of medical office buildings and other facilities that serve the healthcare industry;
  • economic fluctuations in certain states in which HTA’s property investments are geographically concentrated;
  • retention of HTA’s senior management team;
  • financial stability and solvency of HTA’s tenants;
  • supply and demand for operating properties in the market areas in which HTA operates;
  • HTA’s ability to acquire real properties, and to successfully operate those properties once acquired;
  • changes in property taxes;
  • legislative and regulatory changes, including changes to laws governing the taxation of REITs and changes to laws governing the healthcare industry;
  • fluctuations in reimbursements from third party payors such as Medicare and Medicaid;
  • changes in interest rates;
  • the availability of capital and financing;
  • restrictive covenants in HTA’s credit facilities;
  • changes in HTA’s credit ratings;
  • HTA’s ability to remain qualified as a REIT;
  • changes in accounting principles generally accepted in the United States of America, policies and guidelines applicable to REITs;
  • delays in liquidating defaulted mortgage loan investors; and
  • the risk factors set forth in HTA’s 2015 Annual Report on Form 10-K for the year ended December 31, 2015 and in HTA’s Quarterly Reports on Form 10-Q.

Forward-looking statements speak only as of the date made. Except as otherwise required by the federal securities laws, HTA undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they are made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, HTA.