American Healthcare REIT Provides 3Q22 Update
American Healthcare REIT Inc., a non-traded real estate investment trust formerly known as Griffin-American Healthcare REIT IV Inc., recently filed its third quarter 2022 financials and provided a letter to its shareholders outlining the results.
American Healthcare REIT Inc., a non-traded real estate investment trust formerly known as Griffin-American Healthcare REIT IV Inc., recently filed its third quarter 2022 financials and provided a letter to its shareholders outlining the results.
Modified funds from operations equaled $30.2 million for the quarter ended Sept. 30, 2022, representing quarter-over-quarter decline of 17.9% when compared to MFFO of $36.8 million during the second quarter 2022.
Funds from operations equaled $26.5 million, a decrease of 19% compared to the previous quarter’s FFO of $32.7 million. The company says the decrease is due primarily to lower grant income and higher interest expense on floating debt rate.
Net operating income totaled $73.8 million for the third quarter of 2022, a decrease of 4.8% from the second quarter 2022 NOI of $77.6 million.
Net loss for the quarter ended Sept. 30, 2022, totaled $7.6 million, while net loss during the previous quarter was $15.5 million.
In October 2021, the company completed a merger with affiliated REIT Griffin-American Healthcare REIT III Inc. In conjunction with the merger, American Healthcare REIT became self-managed following the acquisition of American Healthcare Investors, the former co-sponsor and external advisor of both REITs.
“In the third quarter, we benefited from the resiliency of our medical office buildings and continued improvement at our integrated senior health campuses,” said Danny Prosky, president and chief executive officer of AHR. “Although senior housing remains a challenge for the overall industry, we are optimistic that our performance will improve as we rebuild occupancy and inflationary pressures begin to subside.”
As of Sept. 30, 2022, the company’s property portfolio (excluding senior housing operating properties and integrated senior health campuses), achieved a leased percentage of 92.6% and weighted average remaining lease term of 7.4 years. The company’s portfolio of integrated senior health campuses and senior housing operating properties achieved leased percentages of 84% and 75.3%. Portfolio leverage was 48.0%.
“While the capital markets remain volatile, our executive management team remains focused on positioning AHR to execute on our strategic plan on behalf of stockholders,” said Prosky.
In September 2022, AHR filed a Form S-11 with the SEC, with plans for a proposed underwritten public offering connected with the potential listing of its common stock on the New York Stock Exchange.
The company declared and paid distributions of $0.40 per share annualized to its stockholders of record for the third quarter of 2022. In March 2022, the company’s board unanimously approved an estimated net asset value per share of its common stock of $9.29, calculated as of December 31, 2021.
American Healthcare REIT oversees a 19.4 million-square-foot portfolio of 312 medical office buildings, skilled nursing facilities and integrated senior health campuses located in 36 states, the United Kingdom and the Isle of Man, in addition to a real estate-related investment. The gross investment value of the portfolio is approximately $4.3 billion.
