As I reported in a recent article, Healthcare Trust of America (NYSE:HTA) has continued to produce sound earnings driven by the $212 million in Q2-14 acquisitions. This "pure play" medical office building REIT is clearly not focused on becoming a gigantic Healthcare REIT like Ventas, Inc. (NYSE:VTR), HCP, Inc. (NYSE:HCP), or Health Care REIT (NYSE:HCN). Instead, the Scottsdale-based company derives its value by exploiting a tactical investment strategy of owning and investing in very high-quality healthcare assets.
Since HTA only owns medical office buildings, the investment proposition offers defensive attributes including a growing physician healthcare provider group seeking to locate at or near hospital systems. Healthcare employment is one of the fastest growing sectors and that has created considerable demand for new office space.
As evidenced by HTA's latest earnings results, the supply and demand for "pure play" healthcare assets seems to be sound: positive 3.1% same-store growth and increased Normalized FFO growth of 21.9% to $43.5 million (compared to Q2-13). That translates into Normalized FFO per share of $.18, an increase of 12.5% (compared with Q2-13).
Also, at the end of the second quarter, HTA's leased rate by GLA was 91.5%, an increase from 91.3% a year ago. The leased rate increased 30 basis points from 91.2% as of March 31, 2014.
HTA's board of directors also recently declared a cash dividend for the third quarter of $0.145 per share, which equates to an annualized rate of $.58. I was hoping for more than a 1% increase, but at least the dividend is headed in the right direction.
That's all good but as an investor in HTA I want to discuss the latest results "face to face" with senior management. I have read over the earnings transcript and now I have a few questions that I hope to get answered. Conducting interviews with CEOs is an extremely important part of my due diligence process and thanks to Seeking Alpha, I am providing you with the latest and greatest.
Check out my interview with Scott Peters, CEO of Healthcare Trust of America:
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Disclaimer: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended.
Disclosure: The author is long O, DLR, VTR, HTA, STAG, UMH, CSG, GPT, ARCP, ROIC, HCN, OHI, LXP, KIM, WPC, DOC, UDF, EXR. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.