HTA - Earnings call transcript Q3 2020 | Healthcare Trust of America, Inc.

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Operator

Good day, and welcome to the Healthcare Trust of America's Third Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would like now to turn the conference over to Scott Peters [ph]. ahead. go Please

David Gershenson

can welcome SEC. XXXX and next for and days. Trust America's being website will These of financial Relations and the Thank of webcast note, section call. to for this We replay XX quarter our documents close. the earnings yesterday with release available found filed third the on supplement Investor the you, or after Healthcare be Please our be our is earnings call

take questions at to of happy prepared remarks. conclusion be our will We your the

During make available the beliefs statements on we course of of the us. current to forward-looking are call, will the currently forward-looking statements. These information management and based

our known unknown affected Our actual uncertainties be results to risks, and will predict. or control ability are and by beyond trends, factors that

believe actual could future of are are reasonable, Although our our results assumptions our they current future Therefore, we not that expectations. performance. from materially differ guarantees

of found a Investor potential Peters, be to Chairman can risks, description to Scott of and filings, the which refer please our call now website. in of America. Trust over For Scott? of turn detailed I'll Healthcare our the CEO section Relations SEC

Scott Peters

today morning, quarter Good you. joining Trust for us thank third you of America's Thank XXXX Healthcare call. for conference earnings and

today Financial Robert Chief me on Joining the call Officer. is Milligan, our

for to flow, continue performance insight whose and our XX% has of consistency business has last their balance employees, and performance this in like third dividends impacted This to high buildings cash earnings, company and and raise efforts, HTA platforms. HTA take the in that XXX This HTA our to shareholders. leasing for XXXX our than patients. retention confidence remote asset the growing for and seventh In business level, dividend and As be coming able for I'm COVID-XX, by the has strong keep and plus operational achieved patience the resulted strength allowed and that more thank us financial of quarter, HTA for allowed grade deliver level in sheet, environment our cash our difficult and many this the the would in the liquidity has strong model. effective we more and rental tenants record into management here to to been gave both that I positions aspects high to since dedication, a rate, In we happy our results today continues performance sit eight in continues our improve to field business, year, a and social our to growth underlying to perform work environment the and consecutive XXXX. moment years. performance our investment our HTA's focus Their company. such enterprise turning strong months demonstrate of and financial HTA economic open with report to during and the cost strong at into value,

the of I before, medical invest. real the said office one areas is in best to which I’ve As believe of sector estate

climate. our that including of critical tenants, leading of core credit resilient with continue to will is strong We are systems real fortunate environmental where grow healthcare, estate rebound to demand appeared the through market was delivery perspective, and even and political healthcare us also and as providers backlogs higher March lows continues the to is the in the regardless provides April. healthcare volumes of work a from From performance providers than second that In are cases, many of groups. deferred pre-COVID, quarter. physician outpatient It

days the are ago. environments than XX their majority in they just flare to much Although better the XX certain were continues for up markets, prepared to providers of pandemic

we From of a have business ahead, for While delivery, patients. our to order convenience on focus move a concentration they back tenants with strong and are certainly seen a a care efficiency cautious HTA most perspective, months the position. on very in concerning sits

team medical in is key a office running high-quality that are best-in-class the portfolio located that of a buildings, We markets States. United operating have throughout

portfolio that recently mainly $X invested street across in data square to also of Our locations and next across million to care our mix in the of best in that growth feet. over is the core core decade. over trends care patients, campus, close shifting XX community continues patient and produce better and campus reflects Recent and accommodate is medical locations able will We're rent review the investments This the levels in that on broad, investment the location with building. that to a move both surveys levels thesis, increasing and locations. strong been retention to campus, invested property accelerated, of strong office over healthcare community a on have more convenient market the of to billion of high are support and

portfolio geographically, for single market accounting and more also one but Our no tenant for of X.X%. than than more is rent, no XX% diversified accounting

Our rents in tenants national rated our tenants. coming providers, of XX% and of consists from rent universities, primarily and health from of almost come healthcare XX% our large our markets. leading With systems, healthcare providers credit

to ground be buildings in Our personnel run the continue with our key on markets. operations and

time, to that work the to steps achieve employees buildings outcomes. protect us with have we tenants certainly and local our and taken keeps this able best possible during have to a we maintained operating While presence our

in per total on a saw but record performance operating normal and tenant As spreads. releasing normalized share leasing also more of return highs quarter only achieve FFO three, our FAD, we positioning, in both to and and retention but result not earnings, this also levels

strong total rents remain in balances period This rents charges, our due filled. and cash on received third exceeding were Our over deferred passed towards additional the with collections rents or collected period our cash X.XX. paid XX% that included at quarter

in the starting of with repay rents million in year-to-date, those We up majority to ended have deferring $XX September.

of deferred end push collection the of We our any for over as September, of the on site. without rents have collected XX%

Our amounts and of one to this our of remainder for portfolio our our This strong feet leasing in over square X%, two leases retention renewal HTA, with our this up did include X% the of Further, the our almost point X%. the was over and rolled rates that almost period. remains leasing total a Of million up trends quarters. level larger last tenant XX%, portfolio over was on at over of active signed record [ph] XX%. consistent with we rolled over six leases still

tenants. re-leasing total million assets reflection entered is the our we at For critical now square XX% portfolio leases, X%. of great This spreads the over and a quality have with X.X healthcare of into on or a feet for of year, our location provider our

we North Campus the WakeMed, On Carolina. we took completing in first completed from foot to side, development finish, Cary start our Raleigh, XXX,XXX development the MOB, our Cary square

track projects Our additional quarter three one to XXXX. on continue of remaining with in three quarter delivery

Our balance sheet X.X three maturities billion continued with to coming no debt-to-EBITDA, liquidity years. of strength, due almost be and debt leverage times of in a $X.X the next

acquisition Lake in the Our Salt period, on MOB just one closing quiet City. in activities remain

more as we criteria, opportunities However, up expect into to pick we're head XXXX. our that things meet seeing

to I the quarter, call in discuss HTA challenging, in that for has Robert, now While environment us over taking who actions performance performance our also overall into will while record remains continued turn continued position operational execute, third detail. greater the the will XXXX. financial delivering to growth

Robert Milligan

Thanks, XXXX Scott. certainly has challenges company. From presented our an operational for new perspective,

our have our safety we on majority operational we healthcare balancing for flows to However, our continued and our pre-COVID have their teams property seen head been our entire the keeping for them with teams and have of and tenants, tenants continue open patient job as adapting done them performance see teams. that buildings, this and to have and tenants, met to providers critical has This believe Throughout a returned our patients. near our service levels. tremendous to period, vendors

Scott mentioned, in our third As of all quarter rents. we effectively collected the

and Our charges rent this period, has we more XX within being all over six ahead contractually well were our was agreed third XX%. almost rents quarter. the deferrals limited of the total due to in with while these collected cash Repayment of schedule. collected next in collection than continue one deferrals third To-date, the to of quarter deferrals September will began in total due of those October months. X% have total, Rent second of trend. continued of exceeded over

retention On the third leases of of front, portfolio at remain tenant our strong same signed the within leasing GLA XX% spreads quarter. increased feet the Re-leasing by leasing million property total at strong for was over in X.X% square period. to a the X.X

of we of renewals include specifically level shutdowns. of this any depth the not renewals quarter targeted early during Importantly, the that in the initial second did the

XXXX, volumes signing begun in we new second XX% have leases. of over is consistent what XXX,XXX leasing nearly with have leasing normalize. were Overall feet seeing and tours quarter, Our square new leasing increased over the to new

While expectations year-end, the it's encouraging of still this get at the below the beginning into our trend and XXXX. year, we as is start of

steady this performance. to see continue All us levels to of of allowed has

excluding impact still When at of NOI cash we period the renewals. was rent quarter our were the in X.X%. from those the Our factoring growth positive during X.X% free second early

share, free our an renewal X% expect store up a X%. was for X% our both record our the NOI From rent historical early would and this to in sequentially. high of return our year. quarter FFO prior per for previously, quarter, HTA levels mentioned perspective, versus and fourth normalized year-over-year to now our off earnings we $X.XX period As growth same burned year-to-date at the up almost are to QX, With earnings

back accompanying charge to period was only new retirement the bond issuance. the the early of normalized add that million debt, of in Our the item $XX.X our related

X.X% much charges debt anticipate forward. levels to and quarter bad were normal of during than see limited revenue, going less the the we that totaled Our

the Our million, XX% $XX.X recurring NOI. was than for quarter of CapEx less which was

period our a the million, result, FAD normalized expenditures in a for capital came record the below as threshold. $XX As at recurring also XX% was

growth performance is position and average the REIT of this our set have million a lowering continue this interest proceeds In sets To extending liquidity this our by to the coupon row and maturities, Scott our apart just repay of perspective, cash notes XXXX, future, out purposes. to well. This out from to is that within steps us, us the this, cost $XXX true seventh dividend, bond balance of into the investment XXXX, senior a outlook within almost in result can we in of the X%. elected raised for points. Healthcare just mentioned not peers, and million a effective and costs. as sheet to XXXX, As unsecured and $XXX quality but We board hallmark a a while also pushes notes flow repaid indicator lowering our raise MOB we October. used From dividend quarter we the maturity over simultaneously our use take our nearest our in revolver, interest $X.XX due year increase increased performance. we to which at peer space, cash increasing our for to ourselves by of basis XX to going

the that Our X% $X.X our forward capital almost equity, in to will our leverage acquisition we X.X creatively times cash capital the million dry revolver of of our invest million billion $XXX equity. mid very balance revolver, as of the approximately of $XXX have This we was raised to remain forward have us incorporating costs million Including to liquidity. strong in in market. range. long-term on at when total the allow we the $XXX Between powder have excluding at we sheet return high

market of great we Our leased This full on is completion This medical closer yields apartment, pipeline. replaced $XX North office X.X% will development in X%. a over Class highlighted was MOBs in the Cary, expect the our Carolina. at cost progress within building by a was and costs upon capital a that stabilized asset Including we down, older incremental to took Class quarter health in great A continued site finance to be that primary million, to system of of use up. completion our XX% lease our will great this the come X.X% that building was then of had yield MOBs our of achieve at old the on on B we which with to

investments and first Our $XXX quarter continue the to be be between track delivered remaining incremental third the with million. year, next quarter to MOBs approximately of of on

and investments We acquisition we have as our on is the very raise to our remained building move capital however, accretive we the into front, quiet pipeline XXXX. make have

and in we continue our liquidity. business significant manner a to low we an to As business and that maintains operate our in leverage making effort will finance investments,

Finally, February. quarter report we guidance we for intend to issue full in XXXX fourth earnings when earnings our

store to fourth I did will not earnings for our look While for to with guidance I'll levels to same our with quarter. back X%, renewals reinstate in very it continue able we with that what the the that, to coming anticipate XXXX, formally X% consistent as the with now not our fourth turn only early free Scott. With rent quarter, we've the perform can say we historical quarter growth been third to back associated into

Scott Peters

Thank you, open will questions. for Robert. And up we it

Operator

We comes Citi. Please begin from Instructions] the go [Operator will Our now question question-and-answer ahead. session. with Nick Joseph first

Nick Joseph

the the hoping was on color could execution terms you I if the what of today, in and the timing additional and sort Thanks. both targeting. pipeline yields of of provide acquisition you're size also

Scott Peters

for size we asset. seven the the or importantly, starting seeing And see comfortable which years, interesting. depth And regarding about with has think I in very is certainly in we're think feel dynamics what we that opportunities and six and markets. five is I primary our the as last HTA in or that thing we're been more seen building due seeing diligence, pipeline the a that's past, have opportunities. We're opportunities we've We to markets, the

going feelings space. use healthcare of and One to somewhat and their our there systems shift, is physicians how moderate is a of that be potentially,

to in also rents so not that out. primary and see to and that to And we are up have the building, term expansion that today, see that we occupied but make we ability expire, as want are only assets they move from tenants opportunities the leases buying the sure

great be going we're felt expect we we we we to end to for we the see as back balance and move acquisitions beginning thought where more through So, accretive for our activity use XXXX, to where And a to that in were year. be this we frankly, had of able growth. to sheet opportunity of

Nick Joseph

Thanks.

looks volume So the if what perspective, about pipeline like the next you think XX does it a from months? dollar over

Scott Peters

we would XXXX to -- those we as go ourselves I to underlying as back to numbers opportunities in the We fundamentals think seeing we were we of hoping to moved seeing find XXXX. the we we back XXXX into in that on attractive, get where we're XXXX. beginning that back acquisitions build through that I and back did were that the that we

something and that that million mentioned, you comfortable very As thought $XXX we somewhere between we felt $XXX million with. was

are at expected. So, as XXXX be looking that's we how would

Nick Joseph

Thank you.

Operator

next Montreal. comes Bank from Our question Juan with Sanabria of Please go ahead.

Juan Sanabria

regards time. Hi, of rates they've with how high-quality gone? kind wanted they've and Nick’s assets the general, to for do retargeting I thanks for pre-COVID just in Have from the what follow-up on you performed cap stable rates. compression Or or is held assets to flat you any levels? cap given seen yields question think rates base in

Scott Peters

the period, given even cap three, today, next initially, XX we're extremely think uncertainty in that performed medical office has I well, Well, I would months, initially months. rates the still say in six

the estate MOB perform side. has to outperform in continued classes real think asset other I

have So, rates consistent. cap stayed

basis would points, get were, because the expect them think expecting. can bring into where I yields to management that So that's with we're XX points And we've about in we we're our basis assets what utilization we portfolio, to they always how that like I that program, we of asset think XX that, I addition, get can okay with done. our stay

the to we transactions And these rates you're seeing right way we would the that closes comfortable that they're XX being more of in some with in seeing ago. familiar comfortable off they where cases months markets. that cap ensure getting have particular market who way very Many pretty we're than transaction we're wanting to done. opportunities a our talking Sellers a closings are, So, also see with we're about now. get the in seen or that and are XX by with they're

Juan Sanabria

for be outputs that result the expand. the space to coronavirus just prepared physician, of maybe what ability a I use? it space guess you're Scott, do the and medical thoughts whether remarks to changing of how because that as more your per space use think or telehealth, curious COVID looking office for and see of I you And the Thanks. one you your on mentioned in the or acquisition means impact? pipeline, a negative is and on Just the positive used see follow-up.

Scott Peters

Well, I think I I'll space. positive that for that three think questions there. telehealth And is the

and underserviced a always We've have had continues. from We that, that and a is that a perspective. generally population society healthcare

the so out that more likelihood the MOB, into more I that often. effective more that doctors, come come where improves their to it for more for systems that to And and or opportunity in think they efficient, physicians system to healthcare people make see healthcare they the see reach

We healthcare I had renewed with physician Second, with folks just hard with think we we're that you've portfolio. it I were it's mean, thing is we had expansion very where And expansion. is more systems, did of worked lease did And that we on lot paid major we if were extremely it one that And the a our renewals, groups. surprised we large seeing that were looked space. at I in tenants off. We relationships taking our but space. positive, think outstanding. spreads

compliment a leasing I Houghton to them reached of to uncertainty think months And our nine feel open. buildings a team. that and property Amanda kept eight, who and during huge out We to managers comfortable. that's made huge the compliment the tenants, our it's engineers

difficult at third And cylinders. we I this that on all infrastructure have that so think hit has And results, off paid quarter time. really a

to and do groups, think So, some expand. use we'd we administrative them space, good tenants, credit, less maybe be like to we space. physician the in there'll like we of with they I able changes be when large like accommodate tenants And like

be I folks environments. think to home continue work there'll some from that

office systems on we're moving. see with daily what looking keeps healthcare workflow a patients we're So, for not is for that the in space a that administrative space building, medical keeps physicians, revenues their and looking basis

Juan Sanabria

you much. Thank very

Operator

question Please from Anderson next ahead. with Rich comes SMBC. Our go

Rich Anderson

there. Hey, morning thanks. out Good

of was from the with a outlier-ish you're nature And of rent? that sort theme something -- renewal some somebody So, your what the Was why early in recurring Robert, there portfolio and about sort when that? be wouldn't the time-to-time down rent? elsewhere free lock free of a

Robert Milligan

Rich. [Indiscernible] No, Yes.

about was as days talked of renewal us early approach we in in way pandemic, the system COVID health of the for second where that to looking we this think kind the I were everything quarter, our tenants. early the working at, with best

both of there ideas ability out rent. there's the a a the up One to uncertain, win-win and leases with, get that came as to of if where certainly, that's free them that situation view We a northeast. for we up health We system of extend that's opportunity us. had hey, wining kind certainly the really

that’s a in did really square the we talked renewals, a rates with So were feet of and allowed health in about million in the second of were half third we've feet than million XX% that quarter, those us million second it about half in Again, to higher quarter early spread that. rent quarter. net XX% we as the systems. what effective $X.X And rest doing. free $X.X square the is million There about really lock

we just renew falls it before it's leases of normal a look I moved with upon XX routine, tenants, to normalization So really think from to period, that. abnormal our I expiration. six And months out forward with because think where we've our

to quarter. systems, wanted it's this that. with in that our It just just in of was health really COVID we to the outside with fell direct deal So stopped second and something response how really

Rich Anderson

Okay.

at no really expected point? this So going forward recurrence

Robert Milligan

anything systems outsized dealing from to the health approach not an with No, like that. or

Rich Anderson

-- And Okay. then

Scott Peters

just me let Rich, answer.

question your to store refers think growth. I same

as seen, without our unusual be third X% that here consistent that you've strong think, to the work on systems As has to don't a same going see quarter. We'll such X% out I rent forward. showed growth need done to basis, back store the years. a we've that very in over healthcare rating, free we went with We which results

Rich Anderson

appreciate so about you're the worried optics for But producing and line same perspective. of as it that, modeling as store much not helps to Yes. earnings is the it I I'm number that bottom perspective. from -- the an

Robert. kind What forward takedown? modeling back Another the to are question, of the on again, perhaps timing

Robert Milligan

we've get So we did been that actually forward our timing some banks with able with the of work to to the the take trades initially flexibility. down,

June So, XX I think now take to of our flexibility forward we XXXX. the through got equity down

it close intention And be so we as balance really will our on to look acquisitions. to out,

leverage deals, stays of we'll X we within our to make take equity As sure to the times still typical debt-to-EBITDA. our range close X

Rich Anderson

all That's Thanks. Great. I have.

Operator

from Please question Our comes ahead. go Connor Berenberg. Siversky with next

Connor Siversky

call. Hey, for on me having everybody. the Thanks

So on the the Raleigh line. projects, good finish work getting

sort lease market MOB So of available related is appetite And up what kind space space I'm of the the rest then of any for just the the wondering, the there Raleigh of in there? color moment? to the at

Scott Peters

Robert. ahead, Go

Robert Milligan

Yes.

you've the really driven strong of for us. in I we're as the well into of in really areas strong the markets got currently in, we universities. economic top at at markets as around -- population think think really growing as we the looked migration, invested Southeast the as of kind pre-COVID, that targets by going growth, look academic I growth, many When combination all

strengthened been really COVID kind the whole pandemic. of that's think I during

think move continue going want be to Durham kind this, to a strong you look that. migration throughout I continue if market at Raleigh, is to very in of people for of to where

a we continues to that market looked to opportunity continues is the So, at grow, here, expand. this as

can in have been free anything and Raleigh six experience we fill Our XX within has typically essentially we to months. open,

to so of of activity able that now, a deliver pandemic. we're that speak we're we're seeing really to the initial it, now of So now kind through the lot shocks

pretty We good leasing there now. traction seeing are

Connor Siversky

way? maybe that. end going I development the Thanks mean, after to and process, your then project in on what's appetite along engage All completing the right. projects And this opportunities, the for through the build further suit

Scott Peters

to Well, a to opportunity end. that always great we us beginning felt for from was have go this

project dealing Forest And great Park. frankly relationship side. opportunities we're in that with development to that we're are as WakeMed, a some we're have seeing from and with going pursue going the we While,

about much And us active heading year frankly, started that we're things XXXX for get more we're it. So at we now. as initially on some excited looking will be

Connor Siversky

Thank Alright. Great. me. you. That's all for

Operator

comes with Stender Please next from Fargo. Our Todd question ahead. go Wells

Todd Stender

Hi, thanks.

Just getting to NOI. back the same store

to high maybe your X% at the coverage above range, X% do MOBs I think to for look other there? to end return that going healthcare all of types. well what gets property you rent you you're If certainly When

matter So that What is it you end? of rate high do pushing more? a think gets to you back

Scott Peters

it's Well, some that the seeing here we materials read occupancy. I location think seen been a growth, strong hasn't the synergy seeing yet, is combination. question certainly show the community that and asset, rent strong core talked within The a of about recently but you've and

Robert certain to and access locations. see need healthcare the systems there's to As be the able locations migration demographics just within mentioned, to

benefit I high-quality. of that move-- we is the our done assets. relationships high-quality think asset the team demand there. a every years. so, a And great think the portfolio. we've work And it seeing lot I we're couple have I leasing for is we last unfortunately going markets, and I to goes think Everybody But the And, back we're has think about to not having space think the of so hard talks

don't anything see that mid higher the this we've probably or But down disrupts to that time. And good pretty about I end the higher X%. X% that feel of to particular the we always path. end at So, been

Todd Stender

have how you just spreads comment at maybe had just been the negotiations very on that When staying of the have there. like And kind lease TIs spend theme. it look your on of get lease re-leasing to to seem but recent Maybe you've strong, kind doesn't Scott. Thanks, gone. renewals,

Scott Peters

you Robert, handle that. let I'll

Robert Milligan

think been into an I really that. come we've as it's interesting Todd, Yes. year

that our as million total if more of we've that at think, than completed able I of look up to more looked X%. leasing, we feet, square X.X still portfolio this all across at have least re-leasing you over And than the spreads or been year. at accomplish, our we're we've XX%

multiple think So, looked. multiple of kind broad been It's I as it's assets, been really across we've markets.

really been on I a think it's both and campus. campus off of combination

the on shift at place. as TIs, continue haven't to little deals. a How of we've I different think the bit and How they there's real it's this looked more performance of do this functionally the function off they there. our But, I look between we year disciplined more think our difference by think in longer? I performance, place to of renewals, something we've do a at look a seen certainly as So how been as modernize of take we've TIs And all space? we to certainly at stay remain in that able just going check. doing been very we keep it's different campus

Todd Stender

you. Thank

Operator

Bernstein comes question Capital ahead. One. next Our go with Please from Daniel

Daniel Bernstein

on TIs was question my Actually, well. leasing and the as

fundamentals have up? just the to given the how prospects you So I'll the competition MOB the held long-term just I quickly ask, within sellers really gauge there's the there out think And have for for you seen any assets. difference well about where trying when in makeup new and to of buyers assets, space, buy

Scott Peters

had are same strong the capital. gone some of do for side. still They They're seen look non-public issues We've returns MOB can other expect. yielding, to that the which pullback they've cases a bit there's little in there. selling with not have think some they that away, think in forth type public buyers of of they and continue I get so dealing from MOBs. you and longer-term the I out players, would

pretty So it's good a environment.

the quarter year on and nice I think medical be it's articulated today, pay looking going ago environment two to off that we half, relationships pretty that's office. years in and our at mentioned, a you If off. to within the we've for we've just a the a renewals paid to got got time has markets, strong environment look And the like third as

pretty opportunities So, positive we're competition. vis-à-vis about our

Daniel Bernstein

Thank you. have. I all That's Okay.

Operator

go question with comes from Our ahead. Mizuho. next Omotayo Please Okusanya

Omotayo Okusanya

to morning, to cases A Good in mean, I rising, hearing from start what point systems at curious the where COVID? of are regards next states COVID kind off there especially Yes. rising, quick generally this systems at of rising? with everyone. hospital risk is question, they put hospital What wave hospitalizations is point, this in hospitalization kind you're of that just Is elective thinking the surgeries? any

Scott Peters

got we feedback. haven't Well, much

we've teams opportunities forward to in mentioned, I hold quarter, more put seen have good. we in they activity our on which the moving some As leases is we a some are on some we see expansion, at systems to think that. last and moving activity leasing, than second did probably quarter, third and The healthcare little

to process have the in put systems themselves a I that think healthcare that order handle in better goes much place on.

had haven't would system attention. relationships of our the any what disruption or markets come to healthcare major any we that have of call we in any our So,

Omotayo Okusanya

Thank you.

Operator

Our ahead. comes Street Lukas from Advisors. go Hartwich next Green with question Please

Lukas Hartwich

morning. good for much. used XX% market office. medical pre-COVID to as private versus yet, looking just to don't And down levels. XX% And at have Hey, public market that's values seem enterprise moved I'm

about curious, operate is and talked to how do just you much. haven't what they earlier there? that I'm moved You all that think gap driving

Scott Peters

that you Robert, give want do a thought? to

Robert Milligan

performance. the next just three leases the for get at underlying And those have demand been just but that medical as a that's guys for to for not real look five how signed, Because long-term. investors. but think next I across look we for high, I offices continue as really the we market, certainly fundamentals increasing, I collections has months, look have, you XX real other for certainly been as Lukas, for far the to as think Certainly, and short-term, is rent not question standout years. certainly characteristics think, private the you

of probably I certainly So, value short-term long-term certainly the trading there really that assets that of be is can explained intrinsic the assets versus a more we're just focus of only really that between disconnect think a by in. is

Lukas Hartwich

a And it then like a yield the have it just increased Cary thoughts helpful. on I follow-up. quick The bit, that. development, That’s looks about

Robert Milligan

Lukas, I it existing of think of development where redevelopment square we different wanted had excludes supplement, embedded we existing frankly, about of cost B incremental a MOBs on was $XX a the make clear, site. there. little in land a we to In construction complete, this was to XX,XXX a of that had Class type really have feet of because cost that our the million kind we bit

of the to we construction our in So, provide been X% off Whereas range, X% once to incremental replenished existing buildings that expect X.X% the do in we demolishing. mid yield the previous guidance as NOI expect the be up fully clarity we really to the on just on incorporated have the that, to [ph]. ended generate greater

Lukas Hartwich

Got it. Thank you.

Operator

JP Instructions] Please [Operator with go question from Mueller Morgan. Our Mike comes next ahead.

Mike Mueller

questions. Hi. views adjacent campus? terms off Yes. have campus versus in Couple all of on One, evolved at your

Scott Peters

I'm you sorry, that? could repeat

Mike Mueller

to on more being shift The the preferences or towards being all campus Yes. that comfortable the evolved campus? to at changed from views, away has

Scott Peters

think medical there's philosophy service, our all under a has that been along I office. frankly, of

think I is medical I for earlier to that to going office increase. demand question, think back the that an

meaning COVID experience think perspective, I see more a wanting that from in be be there'll to to need more health to better the is just generally need complications going about physicians, many bring specialists for or health.

office. to going application generate medical generate telehealth I do of need going more that's with So the think is that along that to for

It's in close be. Now want they Healthcare and we've that on to think very systems most years locations. want States efficient can demographics going as it's about campus physician in what congested flattening is United medical functionally high-quality to it's served. what groups to be from I seeing and four three the very for talked is expensive our their the there office, it make five where or and as you're as

core, it's So showing we its always results. like community

locations. compression seen spreads you've locations. rent rent, cap extremely store And in strong I from also some synergies core largest those seen think both community you've of in same from the rates but

our we where were campus. be we'll are, as the We where and very need and selective, community think campuses -- invest we owner, like on owner just So of to large core. large those largest accordingly. where blend We selective, those that continue to very we to are blend like assets in

Mike Mueller

three then think be just, average achieve what as? you're you'll if or years development And Okay. spend able out five so, to do the to you looking annual

Scott Peters

of that economy fortunate, impacts how would look that regardless internally It had thought importantly something we good. shown to to the about our there's manage company $XXX a value. of we consistent. like the done company's while That's year. perspective, and we always $XXX be equation, collect a that Because, unexpected move a in what's It sure our is it. million drastically externally accretive last we've is talked things it, necessarily forward. very the that safety performance. we would a could our million to be ability We've advance always that would good a side to balance more out along share with. that price from to been get investors place something it ourselves We've it's or protect very very in how something where our continue guided been anything. we've a the us in be here that be people in And rents; the we to at don't able earnings. other don't on our can can too that And solid; comfortable months And make strong or we put really size, sheet, And it continue as think is of occupancy advance, comes way is also appreciated, our to far always continue should is enterprise be. our leasing always we've We've what where eight

to So, we both we acquisitions you'll development. us been very see on as have want but forward, and be cautious, consistent going be

Mike Mueller

Got it.

you. Okay, thank

Operator

are There no further questions.

closing to I'd conference any this like over remarks. turn Peters the So for question-and-answer our concludes session. Scott to back

Scott Peters

that's forward Thank this NAREIT and up later many virtual joining look for conference investors you questions appreciate everybody, month. to seeing you, you. call. and much Thank today's We coming very at feedback. And on Alright. the then us we the our of other

Operator

The you conference now today's has presentation. attending concluded. for Thank

You may now disconnect.

Healthcare Trust of America (HTA) 4 Nov 202020 Q3 Earnings call transcript