Griffin-American Healthcare REIT IV Expands Portfolio by 50% in First Quarter of 2017
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the company’s first quarter of 2017.
“During the first quarter, Griffin-American Healthcare REIT IV expanded its portfolio by more than 50 percent with the completion of acquisitions totaling approximately $73.6 million,” said Jeff Hanson, chairman and chief executive officer. “We are keenly focused on accretive portfolio growth and on adding significant value to Griffin-American Healthcare REIT IV with each acquisition.”
Chief financial officer Brian Peay added, “In addition to portfolio growth, we also remain focused on high level performance. We are pleased to report that at the end of the first quarter, our portfolio continued to enjoy high occupancy, an attractive average remaining lease term and low portfolio leverage.”
First Quarter 2017 Highlights
• Modified funds from operations equaled approximately $1.4 million for the first quarter of 2017, representing quarter-over-quarter growth of approximately 57 percent compared to MFFO of $884,000 during the fourth quarter 2016.
• Funds from operations equaled approximately $1.6 million for the quarter ended March 31, 2017, compared to FFO of approximately $(1.4) million for the fourth quarter 2016.
• Net operating income totaled approximately $2.9 million for the first quarter of 2017, representing an increase of approximately 40 percent over fourth quarter 2016 NOI of approximately $2.0 million.
• Net loss during the quarter was approximately $(85,000), compared to an approximate net loss of $(2.6) million during the fourth quarter 2016. The company noted that net loss is due largely to depreciation and amortization expense of its properties.
• The company declared and paid daily distributions equal to $0.001643836 per share, which is equal to $0.60 per share annualized, to its stockholders of record for the first quarter 2017.
• As of March 31, 2017, the company’s property portfolio was 93.4 percent leased with a weighted average remaining lease term of 7 years, while portfolio leverage was 18.1 percent. The weighted average portfolio capitalization rate was 6.9 percent.
Griffin-American Healthcare REIT IV invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016, and as of March 31, 2017, had raised approximately $187.7 million in investor equity. The company’s portfolio consists of 14 medical office buildings and senior housing facilities purchased for a total of approximately $212 million.