Healthcare Trust Inc. Sees Significant Growth in MOB Portfolio in 2023
2024-04-15
Healthcare Trust Inc. (HTI) had its Fourth Quarter 2023 Earnings call on April 5, 2420, during which key participants Michael Anderson and Scott Lappetito delved into the company's financial performance and future prospects. The webcast commenced with cautionary remarks concerning forward-looking statements and non-GAAP financial measures.
In 2023, HTI recorded substantial growth in net operating income (NOI), excluding the CARES Act funding received in 2022. The company witnessed a $10 million upsurge in NOI across its portfolio, notably experiencing a 36.6% expansion in the Seniors Housing segment. This growth was fueled by accretive acquisitions and favorable leasing activities in the medical office building (MOB) segment.
Throughout the year, HTI acquired a total of 11 MOB properties, initially purchasing 7 properties for $35 million and later acquiring a 4-property portfolio for $12.6 million. The average going-in cap rate for the first 7 MOB properties stood at 6.8%, slightly lower than the 7.6% cap rate for the 4-property portfolio acquired later in the year. As of December 31, 2023, HTI possessed over 200 properties in 33 states, with approximately 76% of the portfolio consisting of MOB assets and 24% SHOP assets based on NOI.
The increase in MOB NOI for the company in 2023 was propelled by factors such as rising rental rates, effective expense management, accretive acquisitions, and favorable leasing trends. Despite a decline in estimated per share net asset value (NAV) primarily due to an increase in shares outstanding, HTI remained steadfast in its focus on the forward leasing pipeline for the MOB portfolio and maintaining a robust lease renewal strategy.
Looking forward, HTI made the decision to halt the issuance of stock dividends for its common stock in the second quarter of 2024. The company outlined its commitment to keeping stakeholders informed through periodic filings, press releases, and webcasts. Furthermore, stakeholders were directed to access information and resources on HTI's website, which provided features like Deal Roadshow, Evercall, and Earnings Transcripts, as well as sections dedicated to Resources, Products, Privacy, and Terms.
In summary, HTI's recent earnings call underscored its robust performance in 2023, strategic acquisitions, and dedication to transparency and stakeholder communication. As the company steers through future opportunities and challenges in the healthcare real estate sector, its emphasis on growth and value creation remains unwavering.