Healthcare Trust, Inc. Files Q2 2024 10-Q

TL;DR

**HTI Q2 10-Q filed. Financials and ops details inside.**

AI Summary

Healthcare Trust, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the company, which operates as a Real Estate Investment Trust. Specific financial figures and operational metrics are provided within the report.

Why It Matters

This filing provides investors with a quarterly update on Healthcare Trust, Inc.'s financial health and operational status, crucial for investment decisions.

Risk Assessment

Risk Level: medium — As a publicly traded REIT, Healthcare Trust, Inc. is subject to market fluctuations, interest rate changes, and real estate sector risks.

Key Numbers

• 0.0833 — P6M (Indicates a financial metric for the six-month period.)
• P3Y — P3Y (Indicates a financial metric for a three-year period.)

Key Players & Entities

• Healthcare Trust, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240809 (date) — Filing date
• American Realty Capital Healthcare Trust II, Inc. (company) — Former company name

FAQ

Key Financial Figures

• $0.01 — e Redeemable Perpetual Preferred Stock, $0.01 par value per share HTIA The Nasdaq Glo

Filing Documents

• hct-20240630.htm (10-Q) — 2345KB
• ex311hti6302024.htm (EX-31.1) — 10KB
• ex312hti6302024.htm (EX-31.2) — 11KB
• ex32hti6302024.htm (EX-32) — 6KB
• hct-20240630_g1.jpg (GRAPHIC) — 160KB
• 0001561032-24-000017.txt ( ) — 12780KB
• hct-20240630.xsd (EX-101.SCH) — 93KB
• hct-20240630_cal.xml (EX-101.CAL) — 102KB
• hct-20240630_def.xml (EX-101.DEF) — 610KB
• hct-20240630_lab.xml (EX-101.LAB) — 931KB
• hct-20240630_pre.xml (EX-101.PRE) — 779KB
• hct-20240630_htm.xml (XML) — 1957KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 3 Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2024 (Unaudited) 5 Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2023 (Unaudited) 6 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . 44

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk . 65

Controls and Procedures

Item 4. Controls and Procedures . 65

- OTHER INFORMATION

PART II - OTHER INFORMATION 67

Legal Proceedings

Item 1. Legal Proceedings . 67

Risk Factors

Item 1A. Risk Factors . 67

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities . 68

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities . 68

Mine Safety Disclosures

Item 4. Mine Safety Disclosures . 68

Other Information

Item 5. Other Information . 68

Exhibits

Item 6. Exhibits . 69 Signatures . 70 2 Table of Contents

— FINANCIAL INFORMATION

Part I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. HEALTHCARE TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) June 30, 2024 December 31, 2023 ASSETS (Unaudited) Real estate investments, at cost: Land $ 208,522 $ 207,987 Buildings, fixtures and improvements 2,131,409 2,120,352 Acquired intangible assets 294,683 293,295 Total real estate investments, at cost 2,634,614 2,621,634 Less: accumulated depreciation and amortization ( 720,254 ) ( 681,977 ) Total real estate investments, net 1,914,360 1,939,657 Cash and cash equivalents 29,461 46,409 Restricted cash 51,512 44,907 Derivative assets, at fair value 31,568 28,370 Straight-line rent receivable, net 26,171 26,325 Operating lease right-of-use assets 7,587 7,713 Prepaid expenses and other assets (including $ 46 due from related parties as of June 30, 2024) 35,804 35,781 Deferred costs, net 16,916 15,997 Total assets $ 2,113,379 $ 2,145,159 LIABILITIES AND EQUITY Mortgage notes payable, net $ 816,757 $ 808,995 Credit facilities, net 365,101 361,026 Market lease intangible liabilities, net 7,211 8,165 Accounts payable and accrued expenses (including $ 98,334 and $ 295 due to related parties as of June 30, 2024 and December 31, 2023, respectively) 143,620 48,356 Operating lease liabilities 8,133 8,038 Deferred rent 6,474 6,500 Distributions payable 3,496 3,496 Total liabilities 1,350,792 1,244,576 Stockholders' Equity 7.375 % Series A cumulative redeemable perpetual preferred stock, $ 0.01 par value, 4,740,000 authorized; 3,977,144 issued and outstanding as of June 30, 2024 and December 31, 2023 40 40 7.125 % Series B cumulative redeemable perpetual preferred stock, $ 0.01 par value, 3,680,000 authorized; 3,630,000 issued and outstanding as of June 30, 2024 and December 31, 2023 36 36 Common stock, $ 0.01 par value, 300,000,000 shares authorized, 113,238,180 shares and 111,545,018 shares issued and outstanding as of June 30, 2024 and December 3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Note 1 — Organization Healthcare Trust, Inc. (including, as required by context, Healthcare Trust Operating Partnership, L.P. (the "OP") and its subsidiaries, the "Company"), is an externally managed entity that for U.S. federal income tax purposes has qualified as a real estate investment trust ("REIT"). The Company acquires, owns and manages a diversified portfolio of healthcare-related real estate, focused on medical office and other healthcare-related buildings ("MOBs") and senior housing operating properties ("SHOPs"). As of June 30, 2024, the Company owned 207 properties located in 32 states and comprised of 9.0 million rentable square feet. Substantially all of the Company's business is conducted through the OP and its wholly-owned subsidiaries including taxable REIT subsidiaries. The Company's advisor, Healthcare Trust Advisors, LLC (the "Advisor") manages its day-to-day business with the assistance of its property manager, Healthcare Trust Properties, LLC (the "Property Manager"). The Advisor and Property Manager are under common control with AR Global Investments, LLC ("AR Global" or the "Advisor Parent"), and these related parties receive compensation and fees for providing services to the Company. The Company also reimburses these entities for certain expenses they incur in providing these services to the Company. Healthcare Trust Special Limited Partnership, LLC (the "Special Limited Partner"), which is also under common control with AR Global, also has an interest in the Company through ownership of interests in the OP. As of June 30, 2024, the Company owned 45 SHOPs using the REIT Investment Diversification and Empowerment Act of 2007 ("RIDEA") structure in its SHOP segment. Under RIDEA, a REIT may lease qualified healthcare properties on an arm's length basis to a taxable REIT subsidiary ("TRS") if the property is operated on behalf of such subsidiary by a person who qualifie

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Intent to Internalize Management On July 1, 2024, the Company announced that, in anticipation of a potential future listing of the Company's common stock on a national securities exchange, it provided notice to the Advisor in June 2024 of its intent to transition to self-management and internalize management functions. On August 6, 2024, the Company entered into a merger agreement (the "Internalization Agreement") with HTI Merger Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company ("Merger Sub"), the Advisor and the Advisor Parent. The transactions contemplated by the Internalization Agreement are referred to as the "Internalization." Consummation of the transactions contemplated by the Internalization Agreement will result in the internalization of the Company's management immediately following consummation of the merger (the "Internalization Merger") of the Advisor with and into Merger Sub, with the Advisor being the surviving entity (under the name "Healthcare Trust Advisors, LLC"), including by terminating (i) the Company's existing arrangement for advisory management services provided by the Advisor pursuant to the Second A&R Advisory Agreement (as defined in Note 9 — Related Party Transactions and Arrangements ), by and among the Company, the OP, and the Advisor and (ii) the Company's existing arrangement for property management services provided by the Property Manager, pursuant to the A&R Property Management Agreement (as defined in Note 9 — Related Party Transactions and Arrangements ). All assets, contracts (including leases) and employees necessary for the Company to conduct its business will be contributed by Advisor Parent (and/or its affiliates) to the Advisor, including all of the equity interests in the Property Manager, prior to the effective time of the Internalization Merger. Pursuant to the Internalization Agreement, at closing of t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) Note 2 — Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to this Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring n

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View this 10-Q filing on SEC EDGAR