Introduction
Healthcare Trust of America (HTA) is a real estate investment trust that specializes in investing in medical office buildings and other healthcare facilities. The company has been operating for over a decade, and its success is evident by the fact that it is one of the largest healthcare REITs in the United States. In this article, we will delve into why HTA is such a top choice for investors looking to invest in the healthcare industry.
Demand for Healthcare Real Estate
The healthcare industry is one of the fastest-growing industries in the world, with an aging population and advancements in medical technology. This growth has led to an increased demand for medical facilities, and as a result, healthcare real estate has become an attractive investment opportunity for REITs. According to a report by CBRE, total healthcare real estate investment activity in the United States reached $11.8 billion in the first half of 2021, up 19% from the same period in 2020.
Strong Performance
HTA has a proven track record of delivering strong performance to its investors. In the second quarter of 2021, HTA reported net income of $19.9 million and funds from operations (FFO) of $60.7 million. This represents an increase of 3.3% and 3.0%, respectively, compared to the same period in the previous year. Moreover, HTA has a well-diversified portfolio of over 23 million square feet of leasable space across 646 properties in 41 states, ensuring steady cash flow.
Quality Assets
HTA focuses exclusively on healthcare real estate, providing investors with the opportunity to invest in highly specialized assets. The company’s properties include medical office buildings, surgery centers, and other specialized healthcare facilities, making it a unique investment option. Furthermore, HTA’s properties are of high quality, as the company invests in properties that are located in strategic locations, have strong tenant relationships, and are well-equipped.
Tenant Relationships
HTA has built strong tenant relationships over the years, with its top tenants accounting for approximately 26% of its annualized rental revenue. Furthermore, the company’s healthcare tenants are usually creditworthy, providing a level of stability and consistency in the revenue stream. HTA’s success in building these relationships can be attributed to its experienced management team, extensive market knowledge, and focus on providing tenant-centric solutions.
Conclusion
Healthcare Trust of America is a top choice for investors looking to invest in the healthcare industry. The company’s strong performance, quality assets, and tenant relationships make it an attractive investment option. As healthcare real estate continues to be an attractive investment opportunity, HTA’s proven track record of delivering consistent returns and well-diversified portfolio make it a compelling option for investors.
