Healthcare Trust of America, the largest dedicated owner and operator of medical office buildings in the United States, invested $2.73 billion to acquire 6.8 million square feet in medical office buildings and other healthcare real estate in 2017. The company divulged its full investment activity for the year this week.
HTA provides an operating platform for property management, building engineering services, leasing, construction, and development capabilities to numerous healthcare providers. Here are the geographical areas it invested in and how it is building on that platform.
The company claims it boasts among the largest "on-campus" portfolios in the U.S., with almost 17 million square feet located either on or adjacent to a leading hospital or academic medical center campus, with the remaining 7 million or so square feet located in community outpatient locations -- mostly in healthcare clusters, and close to attractive patient populations.
In the fourth quarter alone, HTA completed $32.7 million of investments in the Dallas, Texas area, $80.2 million in Milwaukee, Wisconsin and Long Beach, California, and one development project in Raleigh, North Carolina.
As a result of this activity, HTA ended the year with a medical office building-focused portfolio consisting of $7 billion invested in 24 million square feet, with about 80 percent of properties located in 20-25 key markets throughout the U.S., with 16 markets totaling more than 500,000 square feet.
HTA funded these transactions by issuing a combination of equity and debt that leaves the company well capitalized heading into 2018. In total, HTA issued approximately $1.9 billion in equity, including $1.6 billion raised through a market transaction in April 2017 and $0.3 billion raised through its At-The-Market program, including $75 million raised on a forward basis in October 2017, which had not been closed out as of December 31. The company also issued or refinanced over $2.5 billion of debt.
HTA also sold $85.2 million in medical office buildings, and completed three in-process developments that it acquired during the year. In addition to those investments, HTA a hired Caroline Chiodo, CFA, as senior vice president of finance. Most recently, Chiodo was a global research analyst at Duff & Phelps Investment Management Company.