Spruce Point Shorts Healthcare Trust Of America
Short activist Spruce Point Capital today announced a short call against Healthcare Trust of America, Inc. The firm said:
"Spruce Point has conducted a critical forensic and fundamental analysis of the Company, a real estate investment trust (REIT) in the medical office building ("MOB") 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 and American Realty Capital Realty (ARCP) 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."