SCOTTSDALE, AZ-Year-over-year increases across the board, along with approximately $88 million in acquisitions, were the highlights of Healthcare Trust of America's Q1 2013 earnings report. Its numbers included a normalized funds from operation at $0.16 per diluted share ($34.2 million) an increase of 23.1% compared to Q1 2012, same-property cash net operating income of $44.5 million, an increase of $1.4 million (3.4% year over year) and overall net operating income of $52.9 million, a year-over-year increase of 9%.
Also during the quarter, HTA acquired $88.5 million of high quality, on-campus medical office buildings, or MOBs, totaling approximately 254,000 square feet. This includes a MOB in Dallas, Texas that was acquired for $48.7 million (100% leased and approximately 130,000 square feet) and a MOB in Bryan - College Station, Texas that was acquired for $39.8 million (100% leased and approximately 124,000 square feet).
And HTA transferred 2.4 million square feet of gross leasable area to its in-house property management and leasing platform. As of the end of the quarter, HTA had approximately 87% of its GLA managed internally, an increase from 70% at December 31, 2012.
Other highlights from Q1 included:
- An increase of rental income of 9.3% to $75.8 million for the three months ended March 31, compared to $69.4 million for the three months ended March 31, 2012. This increase in rental income was primarily driven by $169.3 million of completed MOB acquisitions since March 31, 2012 and same-property portfolio growth.
- General and administrative expenses standing at $6.4 million for the three months ending March 31, compared to $6 million for the same period in 2012. This increase was primarily due to the transition of property management and leasing to HTA's in-house asset management platform.
- Entry into new or renewal leases on approximately 434,000 square feet of GLA, or approximately 3.4% of its portfolio. Tenant retention for the quarter was approximately 85% by GLA.
- At the end of the quarter, the occupancy rate of HTA's portfolio was 90.9% by GLA.
- Issuance of approximately $107.1 million of common stock through the equity ATM program at an average price of $11.51 per share.
- Execution and sale of $300 million of 10-year senior unsecured notes at an interest rate of 3.7% per annum. Net proceeds from the equity and bond issuances were used to repay the $125.5 million secured real estate term loan, the $72 million that was outstanding on the unsecured revolving credit facility as of December 31, 2012 and to fund current year acquisitions.
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