Arizona-based Healthcare Trust of America Inc., the largest owner and operator of medical office buildings in the US, recently revealed its Q2 report, showing that it had closed investments totaling more than $2.6 billion including 93 properties aggregating 6.2 million square feet.
According to the report, approximately 91% of the acquired GLA was located in HTA’s existing key markets.
As of the end of the second quarter, HTA had closed the majority of the $2.75 billion Duke Realty medical office building portfolio, which The REIT Wire reported on in May 2017.
Of that portfolio, HTA has closed 69 of the properties totaling approximately $2.2 billion and 4.9 million square feet of GLA. Another 11 properties totaling $495 million have been excluded from the transaction, primarily as a result of executed rights of first refusal, according to the firm’s Q2 report. The remaining three properties and a land parcel, totaling $138 million and 245k square feet of GLA are expected to close in July.
In addition to the Duke transaction, HTA has invested approximately $391 million in 24 medical office buildings, totaling 1.3 million square feet during the second quarter.
According to the REIT’s numbers, HTA’s total first half closed investments to $2.6 billion at an average cap rate of approximately 5% before any synergies, which consists of over 6.3 million square feet of GLA comprised primarily of on-campus, Class A medical office buildings located in HTA’s key, gateway markets.
And in order to finance the transactions, HTA raised more than $2.9 billion in debt and equity capital including $1.7 billion in common equity, net, including marketed transactions and its ATM, issuing approximately 59 million shares; $900 million of senior unsecured bonds at 3.4% average interest rate and duration of 7.8 years; and $286 million of secured, seller financing at 4.0% per year, maturing in three equal annual installments beginning in 2018.