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Research Alert: CFRA Lowers To Hold From Buy Opinion On Healthcare Trust Of America Inc. Shares

05/07/2021 10:54

02:50 PM EDT, 05/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

As leader in medical office real estate, HTA's recovery from the pandemic is leveling off, by our analysis, with total portfolio leased at 89.2% in Q1 2021 versus 90.8% in Q1 2020. We lower our target by $1 to $30, using P/FFO of 16.8x our 2021 FFO estimate, a discount to health care REIT average at 17.3x given HTA's medical office profile lacking exposure to premium life science properties. We raise 2021 FFO estimate by $0.03 to $1.78 and 2022's by $0.02 to $1.82, not significant to FFO growth. HTA posts Q1 2021 FFO of $0.44, $0.01 above consensus. HTA's top-5 markets were Dallas (9.7% of annualized base rent), Boston (6.3%), Houston (5.8%), Miami, FL (4.8%) and Indianapolis (4.6%). HTA's property mix is 67% for the premium on-campus sites, 26% off-campus but anchored by large quality health care or physician groups, and 7% off-campus and not aligned with other categories. Total liquidity is $1.3 billion including $1.0 billion undrawn credit facility, and common shares offer 4.6% dividend yield.