American Healthcare REIT Inc., a non-traded real estate investment trust formerly known as Griffin-American Healthcare REIT IV Inc., recently filed its fourth quarter 2021 and year-end financials and provided a letter to its shareholders outlining the results.
Modified funds from operations equaled $77.6 million, or $0.39 per common share, for the year-ended December 31, 2021. MFFO during the fourth quarter 2021 equaled $27.2 million, or $0.10 per common share.
Funds from operations attributable to controlling interest equaled $69.7 million, or $0.35 per common share, for the year ended December 31, 2021. FFO equaled $24.9 million, or $0.10 per common share, during the fourth quarter 2021.
Net operating income totaled $213.3 million for the year ended Dec. 31, 2021, and NOI equaled $73.2 million during the fourth quarter 2021.
Net loss for the year ended Dec. 31, 2021 totaled $53.3 million, while net loss during the fourth quarter 2021 equaled $25 million.
Danny Prosky, president and chief executive officer, explained that the portfolio continues to rebound from the negative impacts experienced during the onset of the COVID-19 pandemic where portfolio occupancy, revenue and expenses, particularly within the REIT’s senior housing properties, were “meaningfully impacted.” He said that throughout 2021, the REIT experienced “robust recovery, particularly in terms of occupancy.”
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 94.3 percent and weighted average remaining lease term of 7.6 years. The company’s portfolio of integrated senior health campuses and senior housing operating properties achieved leased percentages of 78.1 percent and 72.4 percent, respectively as of December 31, 2021. Portfolio leverage was 46.8 percent.
The company declared and paid distributions of $0.40 per share annualized to its stockholders of record for the fourth quarter 2021. The REIT recently changed its distribution authorization from monthly to quarterly beginning in the third quarter of 2022.
Last week, 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.
“Generally speaking, we are pleased with the resilience of our portfolio and believe the outlook for our company remains very positive,” said Prosky. “The significant increase in size and scale of our portfolio as a result of the merger, along with broader diversification across assets, tenants and operators alike, should position us favorably for a future listing on a national stock exchange. Our executive management team remains focused on completing this goal by the end of 2022, and we will share news regarding this process as events warrant.”
American Healthcare REIT oversees a 19.2 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 $4.4 billion.
In October 2021, the company completed its 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.