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.
2 comments:
Are you still following IMH? What do you think of the Conversion deal?
Stop worrying about IMH - that program is gone. Rational Realist is trying to warn investors that HTA could be the next IMH - (Bad Investment)!
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