Healthcare Trust (HTIA) Stock

Healthcare Trust Inc. is transitioning to self-management, internalizing functions, and rebranding to National Healthcare Properties, effective September 27, 2024. HTI faces significant cash outflows due to termination fees and management fees payable to AR Global, impacting its balance sheet and potentially dividend safety. HTI's revenue grew 3.15% year-over-year, but expenses surged, leading to an operating loss of $100.4 million in Q2 2023.

NEW YORK--(BUSINESS WIRE)--Healthcare Trust, Inc. (Nasdaq: HTIA / HTIBP) (“HTI”) announced today that it intends to continue to pay dividends on a quarterly basis on its 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) at an annualized rate of $1.84375 per share or $0.4609375 per share on a quarterly basis. Dividends on the Series A Preferred Stock are payable in arrears to Series A Preferred Stock holders of record at the close of business on the.

Healthcare Trust, Inc. has a stronger balance sheet and a different business model than Medical Properties Trust, Inc. The Series A 7.375% Preferred stock has lost 34% of its value in 2023 and now yields 13.2%. Healthcare Trust has moderate balance sheet leverage, adequate balance sheet liquidity, and 1.6X preferred stock dividend coverage.

We believe Healthcare Trust Inc. may struggle to pay interest on its preferred stocks due to its history of burning cash and relying on debt. The company owns healthcare real estate, with different income mixes between Medical Office Buildings and Senior Housing Operating Properties. The rapid increase in the cost of debt may now pose an issue with their ability to pay dividends, as their revolvers cost more than 7% in interest.