According to Scott Peters, chairman and CEO of Healthcare Trust of America, the REIT began 2019 as the largest dedicated owner and operator of medical office buildings. One of the most attractive real estate asset classes for the next five to 10 years and according to Peters, the company’s philosophy in 2019 continues to be focused on key principles of being disciplined, pragmatic and focused on delivering and growing shareholder value over the long term.
“We are extremely proud of our track record since we became public in June of 2012, generating over 95% total return since that time through the end of the first quarter,” he said on the firm’s Q1 2019 earnings call. “As a company we have a best in class portfolio of over 23 million square feet invested in assets both on campus where we have the largest on campus portfolio in the country and off-campus in core critical locations where healthcare is positioned to grow over the next decade.”
According to Peters, the company is concentrated in 20 to 25 key growth markets and now have nine markets of approximately 1 million or more square feet and 15 markets with 500,000 square feet or more.
Given this concentration and scale, “HTA can continue to leverage our unmatched full service asset management platform that provides property management, building services, leasing, construction and development services to our tenants.”
He explains that the company has “multiple avenues for external growth through both acquisitions in our key markets.”
In addition, he says, the REIT also has strong and stable cash flows. “We are diversified by market, where our top 10 markets make up less than 55% of ABR, and by tenant, where no single tenant makes up more than 4.4%. We also have limited near term lease expirations with an average of less than 10% per year through 2023.”
From a strategic perspective in 2019, he notes, “we are intently focused on ensuring that our same store growth and capital allocation decisions translate to bottom line growth for investors in 2019 and in future years.”