American Healthcare REIT Inc., a non-traded real estate investment trust formerly known as Griffin-American Healthcare REIT IV Inc., recently filed its first quarter 2022 financials and provided a letter to its shareholders outlining the results.
Modified funds from operations equaled $37.1 million for the quarter ended March 31, 2022, representing quarter-over-quarter growth of 36.6 percent when compared to MFFO of $27.2 million during the fourth quarter 2021.
Funds from operations attributable to controlling interest equaled $32.6 million for the first quarter of 2022, an increase of 31.1 percent compared to the previous quarter’s FFO of $24.9 million.
Net operating income totaled $73.7 million for the first quarter of 2022, an increase of 0.6 percent over the fourth quarter 2021 NOI of $73.2 million.
Net loss for the quarter ended March 31, 2022 totaled $897,000, while net loss during the previous quarter was $25 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 co-sponsor of both REITs.
Danny Prosky, president and chief executive officer, explained that “while it is still very early in the lifecycle of the new company, we are already witnessing the benefits we expected as a unified self-managed company with a large and diverse property portfolio.”
Prosky said that the portfolio continues to recover from the “significant impact” of the COVID-19 pandemic, which had a negative impact on occupancy, revenues, and expenses of its long-term care properties.
“Although we have experienced a robust recovery throughout 2021 and the first part of 2022, especially with regard to occupancy, the pace has slowed. Moving forward, we expect an uneven, but persistent, rate of improvement in various segments of our portfolio throughout the remainder of 2022 and beyond.”
As of December 31, 2021, the company’s property portfolio (excluding senior housing operating properties and integrated senior health campuses), achieved a leased percentage of 92.7 percent and weighted average remaining lease term of 7.1 years. The company’s portfolio of integrated senior health campuses and senior housing operating properties achieved leased percentages of 71.9 percent and 80 percent, respectively. Portfolio leverage was 46.9 percent.
“While we remain vigilant in terms of the ongoing pandemic and the current inflationary environment, the operational cost savings we have begun to realize as self-managed company, along with the enhancement in size and scale of our portfolio as a result of the merger, have positioned us well to weather future economic turbulence and pursue additional growth,” Prosky said.
The company declared and paid distributions of $0.40 per share annualized to its stockholders of record for the first quarter 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 19.5 million-square-foot portfolio of 313 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 $4.2 billion.