Healthcare Trust Of America: Breaching Liquidity And Transparency By Going Public

In light of the recent negative publicity associated with the non-listed REIT sector, American Realty Capital has been a beacon for investors wanting to achieve portfolio diversification without stock market volatility. In general, the evolution of the non-traded fixed-income alternative has gained broader acceptance as a durable REIT class that is differentiated by its defensive stability, low volatility and sustainable income

American Realty Capital has been the pioneer of many industry best practices, beginning with American Realty Capital Trust (ARCT), which include: shorter life cycles, fully covered distributions, elimination of both internalization fees and any follow-on offerings, along with lower fees and pay-for-performance management compensation.

Back in February I wrote a Seeking Alpha article on ARCT, American Realty Capital Trust - The Newest Triple Net Threat, and when the triple net sector REIT listed (on March 1st) investors purchased these formerly illiquid shares at $10 each. In its first 28 days since listing, 72 million shares have traded and ARCT hit an all-time high, closing at $11.24 per share on April 10 (intraday it hit $11.25). The most recent price for the NASDAQ listed stock was $10.35 and the $1.64 billion (market cap) REIT is paying a dividend yield of 6.6 percent.

Today American Realty Capital's subsidiary, Realty Capital Securities ("RCS") assists with the listing of a second publicly-listed REIT with the inauguration of its "crown jewel" health care REIT, Healthcare Trust of America (NYSE: HTA). This high-quality medical office REIT is similar to the sponsor's triple net REIT in that most of the properties are newer and both focused sector REITs have fewer near term lease expirations.

By tapping the public markets, HTA's current investors will be able to access targeted full-cycle liquidity while also achieving full investor confidence in an industry that is perceived to be less main-stream. This is

This article was written by

Brad Thomas profile picture
Author of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 10,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 106,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

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