Wednesday, April 21, 2010

More HTA
The table below shows how Healthcare Trust of America funded its distributions in 2009 on a quarter-by-quarter basis.  The table was derived from data in a March 8-K filing by HTA.    The key to me is the second half of the year where operating cash flow is much less than in the first half of the year.

    12/31/09        9/30/09       6/30/09      3/31/09
Total Distributions $23,900,000   $21,908,000 $18,004,000  $14,247,000
OP Cash Flow  $5,033,000  $1,718,000  $8,355,000  $5,895,000
Offering Proceeds  $18,867,000  $20,190,000  $9,649,000  $8,352,000
Dist as % Op Cash           21.06%         7.84%        46.41%        41.38%
Dist as % of Offering Proceeds        78.94%         92.16%        53.59%        58.62%

Yes, the REIT saw increased equity in the second half of the year, which would contribute to the drop in the operating cash flow-to-distribution coverage ratio discussed in the previous post, but it also saw a drop in operating cash flow over the same period.  The low operating cash flow-to-distribution coverage ratio cannot be fully explained away by problem of raising too much equity.  This ratio bears close attention in the coming quarters, especially since HTA made more than $400 million of acquisitions late in the fourth quarter, which ideally should be accretive to the REIT's current 7.25% distribution.


classlit said...

Are you still following IMH? What do you think of the Conversion deal?

Anonymous said...

Stop worrying about IMH - that program is gone. Rational Realist is trying to warn investors that HTA could be the next IMH - (Bad Investment)!