HTA Largess

Healthcare Trust of America's executive team had a lucrative Happy New Year.  In Form 4s filed yesterday, four HTA executives received generous stock grants on on January 1, 2012.  The CEO received 75,000 shares, the CFO received 50,000 shares, the EVP of Acquisitions received 50,000 shares and the EVP of Asset Management received 40,000 shares.  At the current $10 per share price, this translates to grants valued at $750,000, $500,000, $500,000 and $400,000, respectively, for each of the four executives.  HTA is paying a 7.25% annual distribution and the four executives will all earn the full distribution on their new shares, which ranges from $54,375 annually for the CEO, to $29,000 annually for the EVP of Asset Management.  

HTA has granted stock before.  Below are the cumulative shares (listed in the Form 4s filed yesterday) for each of the four executives, the value at $10 per share, and the annual income the shares generate to the executives at the current 7.25% distribution rate:

	Shares	Value	Annual Income
CEO	460,000	$4,600,000	$333,500
CFO	201,529	$2,015,290	$146,109
EVP - Acq	217,148	$2,171,480	$157,432
EVP - Asst Mgt	65,000	$650,000	$47,125

Since the stock grant occurred on January 1, 2012, it will not be listed in HTA's 2011 10-K, which will be released in March or April.  HTA, as of September 30, 2011, is still not generating enough operating cash flow to cover its current distribution.  HTA generated $86,260,000 in operating cash flow for the first nine months of 2011, while it paid distributions of $119,621,000 over the same period; so operating cash covered about 72% of HTA's paid distribution.