SCOTTSDALE, Ariz., Aug. 16 /PRNewswire/ -- Healthcare Trust of America, Inc. ("HTA" or the "Company"), a self-managed, non-traded, real estate investment trust, announced results for the second quarter ended June 30, 2010.

The Company increased funds from operations ("FFO") for the fourth consecutive quarter since transitioning to self management in the third quarter of 2009. The Company's FFO were $18.8 million for the quarter ended June 30, 2010, an increase of 13% from the first quarter FFO of $16.7 million and an increase of 110% over the comparable prior year quarter. In addition, the Company achieved net income of $245,000 for second quarter of 2010 compared to a net loss of $3.5 million for the second quarter of 2009.

The Company continued to focus its strategic plan in the second quarter by raising equity, strengthening its balance sheet and generating liquidity. This positions the Company to continue its strong acquisition pace. The Company raised $108.5 million in equity, excluding distributions reinvested of $13.5 million, during the second quarter of 2010 in its follow-on offering. The Company made additional acquisitions totaling approximately $106.2 million, while reaching an overall portfolio occupancy of approximately 91.4%. In addition, the Company secured financing of $32.9 million during the quarter from certain life insurance companies.

Since June 30, 2010, the Company has completed three acquisitions comprised of approximately 89,000 of gross leasable area ("GLA"), including three medical office buildings for a total purchase price of approximately $21.8 million. In addition, the Company has entered into purchase and sale agreements and letters of intent to acquire approximately $433 million of properties, which include 30 medical office buildings totaling approximately 1,593,000 of GLA. These pending acquisitions are expected to close prior to year end, subject to certain conditions.

As reported in prior announcements, the Company has negotiated the terms of a commitment letter for a $200 million unsecured revolving credit facility for which J.P. Morgan Securities, Inc. will act as a Joint Lead Arranger and Joint Bookrunner. This will allow the company to continue to maintain a strong balance sheet, lower its cost of capital, expand its acquisition capacity and align itself with a leading investment bank.

"Our second quarter results reflect continued execution of our business plan. We look forward to continuing to invest our capital, increasing our distribution coverage and enhancing shareholder value," stated Scott D. Peters, Chief Executive Officer of HTA.

Highlights include:

Modified Funds from Operations: The Company's modified funds from operations ("MFFO") attributable to controlling interest were $22.3 million for the 2010 second quarter, representing 80% of distributions paid during the quarter compared to 61% for the comparable quarter in the prior year. See the reconciliation of MFFO attributable to controlling interest to net income (loss) below.

Funds from Operations: The Company's FFO attributable to controlling interest for the quarter ended June 30, 2010 were $18.8 million, representing 67% of distributions paid during the quarter. This is a 35% increase over the prior comparable second quarter 2009 with FFO attributable to controlling interest of $8.9 million, representing 50% of distributions paid during the quarter. See the reconciliation of FFO attributable to controlling interest to net income (loss) below.

Revenues: Total revenues for the three months ended June 30, 2010 were $47.3 million compared to $30.5 million for the three months ended June 30, 2009, which represents an increase of 55%. Second quarter revenues remained consistent and increased 4% over 2010 first quarter revenues of $45.8 million. Total revenues for the six months ended June 30, 2010 were $93.0 million compared to $60.3 million for the six months ended June 30, 2009, which represents an increase of 54%.

Distributions: The Company paid distributions of $27.9 million in the second quarter of 2010. For the six months ended June 30, 2010, the Company paid distributions of $53.4 million.

Cost Savings: For the three and six months ended June 30, 2010, we would have been required to pay acquisition, asset management and above market property management fees of approximately $8.1 million and $16.9 million, respectively, to our former advisor if we were still subject to the advisory agreement under its original terms prior to the commencement of our transition to self-management. The cost of self-management during the three and six months ended June 30, 2010 was $1.7 million and $3.1 million, respectively. Therefore, we achieved a cost savings of $6.4 million ($8.1 million minus $1.7 million) for the three months ended June 30, 2010 and $13.8 million ($16.9 million minus $3.1 million) for the six months ended June 30, 2010 resulting from our self-management cost structure.

Net Operating Income: In the second quarter of 2010, net operating income ("NOI") increased to $31.7 million from $30.7 million in the first quarter of 2010, representing a 3% increase, and a 59% increase over second quarter 2009 NOI of $19.9 million. See the reconciliation of NOI to net income (loss) below.

Investments: The Company completed four acquisitions and two add-on acquisitions in the second quarter of 2010. These acquisitions involved 6 medical office buildings totaling approximately 489,000 square feet of GLA. The total purchase price of these acquisitions was approximately $106.2 million. The Company completed eight acquisitions in the first quarter of 2010 including 14 medical office buildings and the remaining interest in a JV company, totaling approximately 674,000 square feet of GLA for a total purchase price of $146 million.

As of June 30, 2010, the Company has made 65 acquisitions which include 53 medical office properties, seven healthcare related facilities, three commercial office properties, and two other real estate-related assets. These acquisitions comprise 200 buildings with approximately 8,567,000 square feet of GLA for an aggregate purchase price of approximately $1.7 billion located in 21 states. Portfolio occupancy increased from 91.3% to 91.4% from March 31, 2010 to June 30, 2010. The Company was able to close its second quarter 2010 acquisitions primarily with cash while maintaining a low debt ratio as noted below.

Balance Sheet and Liquidity: During the second quarter of 2010, the Company continued to maintain a strong balance sheet with total assets of $1.88 billion, including cash on hand of approximately $177 million as of June 30, 2010. With debt of $599 million as of June 30, 2010, the Company's leverage as a percentage of its total assets was approximately 32%. The Company has been able to take advantage of recent low interest rates to lower our average cost of corporate debt. During the second quarter, the Company secured long-term financing with certain life insurance companies of approximately $32.9 million with an average loan term of nine years and an average interest rate of 6.25%. In July 2010, the Company was able to obtain a five year note with an interest rate of 4.9% secured by the recent acquisition of the Deaconess portfolio in Indiana. The Company anticipates securing additional financing with its lenders as terms continue to remain favorable.

"We have continued to make significant steps to strengthen our balance sheet and reduce our cost of capital," stated Kellie S. Pruitt, Chief Financial Officer of HTA. "Our strong balance sheet and liquidity fundamentals have paved the way to establishing our new unsecured credit facility. This flexibility will allow us to maximize our acquisition and portfolio operating goals as we continue to grow."

Funds from Operations and Modified Funds from Operations

FFO is a non-GAAP measure that the Company defines consistent with the standards established by NAREIT. NAREIT defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property but including asset impairment write downs, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO.

MFFO is a non-GAAP financial measure that the Company defines as FFO less acquisition expenses and one-time transition charges.

The following is the reconciliation of FFO and MFFO attributable to controlling interest to net income (loss) for the three and six months ended June 30, 2010 and June 30, 2009:

                                     Three months
                                      ended June
                                          30,
                                                          Three months
                                              2010            ended
                                              ----       June 30, 2009
                                                         -------------

    Net income (loss)                     $245,000          $(3,535,000)
    Add:
      Depreciation and
       amortization -
       consolidated properties          18,602,000           12,645,000
    Less:
      Net (income) loss
       attributable to
       noncontrolling interest of
       limited partners                     (1,000)            (102,000)
      Depreciation and
       amortization related to
       noncontrolling interests                  -              (51,000)
                                               ---              -------
    FFO attributable to
     controlling interest              $18,846,000           $8,957,000
                                       ===========           ==========
    FFO per share - basic and
     diluted                                 $0.12                $0.08
                                             =====                =====

    Add:
      Acquisition-related
       expenses(1)                       2,602,000            1,681,000
      One-time transition
       charges(2)                          811,000              286,000
                                           -------              -------
    MFFO attributable to
     controlling interest              $22,259,000          $10,924,000
                                       ===========          ===========
    MFFO per share - basic and
     diluted                                 $0.14                $0.10
                                             =====                =====
    Weighted average common
     shares outstanding - basic        154,594,418          106,265,880
    Weighted average common
     shares outstanding -
     diluted                           154,815,137          106,265,880

                                    Six months
                                    ended June
                                        30,
                                                  Six months
                                           2010       ended
                                                    June 30,
                                           ----        2009
                                                    --------

    Net income (loss)                 $(237,000)  $(10,335,000)
    Add:
      Depreciation and
       amortization -
       consolidated properties       35,913,000     25,944,000
    Less:
      Net (income) loss
       attributable to
       noncontrolling interest of
       limited partners                 (65,000)      (172,000)
      Depreciation and
       amortization related to
       noncontrolling interests         (51,000)      (102,000)
                                        -------       --------
    FFO attributable to
     controlling interest           $35,560,000    $15,335,000
                                    ===========    ===========
    FFO per share - basic and
     diluted                              $0.24          $0.16
                                          =====          =====

    Add:
      Acquisition-related
       expenses(1)                    5,826,000      3,180,000
      One-time transition
       charges(2)                     1,006,000        861,000
                                      ---------        -------
    MFFO attributable to
     controlling interest           $42,392,000    $19,376,000
                                    ===========    ===========
    MFFO per share - basic and
     diluted                              $0.28          $0.20
                                          =====          =====
    Weighted average common
     shares outstanding - basic     149,990,622     95,530,594
    Weighted average common
     shares outstanding -
     diluted                        150,211,341     95,530,594

    __________
    (1)  Prior to 2009, acquisition-related expenses were capitalized and
     have historically been added back to FFO over time through
     depreciation; however, beginning in 2009, acquisition-related
     expenses related to business combinations are expensed. These
     acquisition-related expenses have been and will continue to be
     funded from the proceeds of the Company's offering and not from
     operations.
    (2)  One-time transition charges relate to the cost of the Company's
     transition to self-management. These items include, but are not
     limited to, additional professional expenses and system conversion
     costs (including updates to certain estimate development procedures),
     which we continue to incur as we finalize the development of our
     self-management infrastructure, as well as certain non-recurring
     employment costs.

Net Operating Income

NOI is a non-GAAP financial measure that the Company defines as net income (loss), computed in accordance with GAAP, generated from properties before interest expense, general and administrative expenses, depreciation, amortization and interest and dividend income. The following is the reconciliation of NOI to net loss for the three and six months ended June 30, 2010 and June 30, 2009:

                                Three Months Ended June 30,
                                ---------------------------
                                      2010            2009
                                      ----            ----
    Net income (loss)             $245,000     $(3,535,000)
    Add:
       General and
        administrative           3,487,000       2,787,000
       Acquisition-related
        expenses (1)             2,602,000       1,681,000
       Asset management fees             -       1,318,000
       Depreciation and
        amortization            18,602,000      12,645,000
       Interest expense          6,754,000       5,066,000
    Less:
       Interest and dividend
        income                     (34,000)        (44,000)
                                   -------         -------
      Net operating income     $31,656,000     $19,918,000
                               ===========     ===========

                                Six Months Ended June 30,
                                -------------------------
                                       2010           2009
                                        ---            ---
    Net income (loss)             $(237,000)  $(10,335,000)
    Add:
       General and
        administrative            6,675,000      5,093,000
       Acquisition-related
        expenses (1)              5,826,000      3,180,000
       Asset management fees              -      2,587,000
       Depreciation and
        amortization             35,913,000     25,944,000
       Interest expense          14,194,000     11,636,000
    Less:
       Interest and dividend
        income                      (50,000)      (172,000)
                                    -------       --------
      Net operating income      $62,321,000    $37,933,000
                                ===========    ===========

    __________
    (1)   Prior to 2009, acquisition-related expenses were capitalized
     and have historically been added back to NOI over time through
     depreciation; however, beginning in 2009, acquisition-related
     expenses related to business combinations are expensed. These
     acquisition-related expenses have been and will continue to be
     funded from the proceeds of the Company's offering and not from
     operations.

For more information on Healthcare Trust of America, Inc., please visit www.htareit.com.

About Healthcare Trust of America, Inc.

Healthcare Trust of America, Inc. is a self-managed, publicly registered, non-traded real estate investment trust. Since January 1, 2010, HTA has acquired approximately $273.9 million in medical office and healthcare-related assets. These assets include a total of 14 acquisitions representing approximately 1.3 million square feet. Since its formation in 2006, HTA has made 67 geographically diverse acquisitions valued at approximately $1.73 billion based on purchase price, which includes 203 buildings and two other real estate-related assets. HTA's portfolio totals approximately 8.7 million square feet and includes 184 medical office buildings, six hospitals, nine skilled nursing and assisted living facilities and four other office buildings located in 21 states.

FORWARD-LOOKING LANGUAGE

This press release contains certain forward-looking statements with respect to HTA. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management's intentions, beliefs, expectations, plans or predictions of the future, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: we may not be able to close the unsecured credit facility on terms that are favorable to us or at all. In addition, our results may be impacted by, among other things, uncertainties relating to the debt and equity capital markets; uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of recent healthcare legislation; uncertainties regarding changes in the healthcare industry; the uncertainties relating to the implementation of HTA's real estate investment strategy; and other risk factors as outlined in HTA's periodic reports, as filed with the Securities and Exchange Commission.

This is neither an offer to sell nor an offer to buy any securities. Offerings are made only by means of a prospectus.

                Healthcare Trust of America, Inc.
                      Summary Balance Sheets
                           (Unaudited)
            As of June 30, 2010 and December 31, 2009

                                                             December
                                            June 30,            31,
                                            --------        ---------
                                                   2010             2009
                                                   ----             ----
                          ASSETS

    Total assets                         $1,881,514,000   $1,673,535,000
                                         ==============   ==============
                  LIABILITIES AND EQUITY
    Total liabilities                       668,503,000      598,669,000
    Redeemable noncontrolling interest
     of limited partners                      4,203,000        3,549,000
    Total equity                          1,208,808,000    1,071,317,000
                                          -------------    -------------
    Total liabilities and equity         $1,881,514,000   $1,673,535,000
                                         ==============   ==============

                                  Healthcare Trust of America, Inc.
                                   Summary Statements of Operations
                                             (Unaudited)

                                          Three months ended June 30,
                                                 2010           2009
                                                 ----           ----

     Total Revenues:                      $47,328,000    $30,478,000
     Expenses:
       Rental expenses                     15,672,000     10,560,000
       General and administrative
        expenses                            3,487,000      2,787,000
       Asset management fees                        -      1,318,000
       Acquisition-related
        expenses (1)                        2,602,000      1,681,000
       Depreciation and
        amortization                       18,602,000     12,645,000
                                           ----------     ----------
       Total expenses                      40,363,000     28,991,000
                                           ----------     ----------
     Income (loss) before other
      income (expense)                      6,965,000      1,487,000
     Other income (expense):               (6,720,000)    (5,022,000)
                                           ----------     ----------
     Net income (loss)                       $245,000    $(3,535,000)
                                             --------    -----------
       Less: Net income
        attributable to
         noncontrolling interest of
          limited partners                     (1,000)      (102,000)
                                               ------       --------
     Net income (loss)
      attributable to controlling
      interest                               $244,000    $(3,637,000)
                                             ========    ===========
     Net  income (loss) per share
      attributable to controlling
      interest on distributed and
      undistributed earnings  -
      basic and diluted                       $0.00         $(0.03)
                                                =====         ======
     Weighted average number of
      shares outstanding
     - basic                              154,594,418    106,265,880
                                          ===========    ===========
     - diluted                            154,815,137    106,265,880
                                          ===========    ===========

                                            Six months ended June 30,
                                                  2010            2009
                                                  ----            ----

     Total Revenues:                       $93,081,000     $60,294,000
     Expenses:
       Rental expenses                      30,760,000      22,361,000
       General and administrative
        expenses                             6,675,000       5,093,000
       Asset management fees                         -       2,587,000
       Acquisition-related
        expenses (1)                         5,826,000       3,180,000
       Depreciation and
        amortization                        35,913,000      25,944,000
                                            ----------      ----------
       Total expenses                       79,174,000      59,165,000
                                            ----------      ----------
     Income (loss) before other
      income (expense)                      13,907,000       1,129,000
     Other income (expense):                14,144,000     (11,464,000)
                                            ----------     -----------
     Net income (loss)                       $(237,000)   $(10,335,000)
                                             ---------    ------------
       Less: Net income
        attributable to
         noncontrolling interest of
          limited partners                     (65,000)       (172,000)
                                               -------        --------
     Net income (loss)
      attributable to controlling
      interest                               $(302,000)   $(10,507,000)
                                             =========    ============
     Net  income (loss) per share
      attributable to controlling
      interest on distributed and
      undistributed earnings  -
      basic and diluted                       $(0.00)         $(0.11)
                                                ======          ======
     Weighted average number of
      shares outstanding
     - basic                               149,990,662      95,530,594
                                           ===========      ==========
     - diluted                             149,990,662      95,530,594
                                           ===========      ==========

    (1)   Prior to 2009, acquisition-related expenses have historically
    been capitalized; however, beginning in 2009, acquisition-related
    expenses are expensed.

SOURCE Healthcare Trust of America, Inc.