Why Spruce Point Is Skeptical Of Healthcare Trust Of America's Management Team And Its Same-Property NOI Metrics, Calls ...

Report Entitled "Broken Medical Trust In America"

Executive Summary

Spruce Point Capital Management is pleased to announce it has released the contents of a unique research report on Healthcare Trust of America, Inc. (NYSE: HTA ) ("HTA" or "the Company").

Spruce Point has conducted a critical forensic and fundamental analysis of the Company, a real estate investment trust (REIT) in the medical office building sector. Our report will detail HTA's CEO Scott Peters past failures and inter-relationships with bad actors in the REIT industry. The report will also explore the statistically improbable Same-Property Cash NOI metric reported by HTA, and comparisons to the Brixmor ( BRX ) and American Realty Capital Realty (now VEREIT/ VER  ) accounting scandals.

Despite shares trading at a discount to estimated NAV, HTA told the market yesterday at the NAREIT conference that it won't repurchase its stock at this level, since it doesn't view it as an accretive move. We warn that if both insiders and the Company aren't buying at this level, then why should investors?

As a result of our investigative analysis, we have issued a "Strong Sell" opinion, and a risk-adjusted price target of $15.00 to $20.00 per share, or approximately 20% - 40% long-term downside.

Our detailed research report is available on our website and suggest to follow us on Twitter @sprucepointcap for regular updates. Please review our disclaimer at the bottom.

Thank you for your continued interest and support of Spruce Point Capital Management's research.

Disclaimer

This research presentation expresses our research opinions.  You should assume that as of the publication date of any presentation, report or letter, Spruce Point Capital Management LLC (possibly along with or through our members, partners, affiliates, employees, and/or consultants) along with our subscribers and clients has a short position in all stocks (and are long/short combinations of puts and calls on the stock) covered herein, including without limitation Healthcare Trust of America, Inc. (“HTA”), and therefore stand to realize significant gains in the event that the price of its stock declines. Following publication of any presentation, report or letter, we intend to continue transacting in the securities covered therein, and we may be long, short, or neutral at any time hereafter regardless of our initial recommendation.  All expressions of opinion are subject to change without notice, and Spruce Point Capital Management does not undertake to update this report or any information contained herein.  Spruce Point Capital Management, subscribers and/or consultants shall have no obligation to inform any investor or viewer of this report about their historical, current, and future trading activities.

This research presentation expresses our research opinions, which we have based upon interpretation of certain facts and observations, all of which are based upon publicly available information, and all of which are set out in this research presentation.  Any investment involves substantial risks, including complete loss of capital. Any forecasts or estimates are for illustrative purpose only and should not be taken as limitations of the maximum possible loss or gain. Any information contained in this report may include forward looking statements, expectations, pro forma analyses, estimates, and projections. You should assume these types of statements, expectations, pro forma analyses, estimates, and projections may turn out to be incorrect for reasons beyond Spruce Point Capital Management LLC’s control. This is not investment or accounting advice nor should it be construed as such. Use of Spruce Point Capital Management LLC’s research is at your own risk. You should do your own research and due diligence, with assistance from professional financial, legal and tax experts, before making any investment decision with respect to securities covered herein. All figures assumed to be in US Dollars, unless specified otherwise.

To the best of our ability and belief, as of the date hereof, all information contained herein is accurate and reliable and does not omit to state material facts necessary to make the statements herein not misleading, and all information has been obtained from public sources we believe to be accurate and reliable, and who are not insiders or connected persons of the stock covered herein or who may otherwise owe any fiduciary duty or duty of confidentiality to the issuer, or to any other person or entity that was breached by the transmission of information to Spruce Point Capital Management LLC. However, Spruce Point Capital Management LLC recognizes that there may be non-public information in the possession of HTA or other insiders of HTA that has not been publicly disclosed by HTA. Therefore, such information contained herein is presented “as is,” without warranty of any kind – whether express or implied. Spruce Point Capital Management LLC makes no other representations, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. 

This report’s estimated fundamental value only represents a best efforts estimate of the potential fundamental valuation of a specific security, and is not expressed as, or implied as, assessments of the quality of a security, a summary of past performance, or an actionable investment strategy for an investor. This is not an offer to sell or a solicitation of an offer to buy any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction. Spruce Point Capital Management LLC is not registered as an investment advisor, broker/dealer, or accounting firm.