American Healthcare REIT Inc., a non-traded real estate investment trust formerly known as Griffin-American Healthcare REIT IV Inc., recently filed its second quarter 2022 financials and provided a letter to shareholders outlining the results.
Modified funds from operations equaled $36.8 million for the quarter ended June 30, 2022, representing a quarter-over-quarter decline of 0.7 percent when compared to MFFO of $37.1 million during the first quarter 2022.
Funds from operations attributable to controlling interest equaled $32.7 million for the second quarter of 2022, an increase of 0.3 percent compared to the previous quarter’s FFO of $32.6 million.
Net operating income totaled $77.6 million for the second quarter of 2022, an increase of 5.3 percent over the first quarter NOI of $73.7 million.
Net loss for the quarter ended June 30, 2022 totaled $15.5 million, while net loss during the previous quarter was $897,000.
As of June 30, 2021, the company’s property portfolio (excluding senior housing operating properties (SHOP) and integrated senior health campuses), had a leased percentage of 93.1 percent and weighted average remaining lease term of 7.1 years. The company’s portfolio of integrated senior health campuses and SHOP had leased percentages of 81.7 percent and 73.7 percent, respectively. Portfolio leverage was 47.4 percent.
In October 2021, the company merged 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.
Discussing the “benefits” of last year’s merger transaction, Danny Prosky, president and chief executive officer, said, “As a unified, self-managed company with a large and diverse portfolio of assets, we have already realized many of the benefits that come from our enhanced strength. Chief among these is the resilience that we have exhibited as we work to fully recover from the challenges ensuing from the global COVID-19 pandemic.”
Prosky said that the portfolio continues to rebound after being “adversely impacted” in terms of resident occupancies, revenues, and expenses since the onset of the COVID-19 pandemic in 2020.
“We remain confident about the future of our company despite the continuing effects of the pandemic and the recent emergence of global inflation, resulting in higher costs for labor, equipment and food, which is evident particularly throughout our SHOP portfolio,” he added. “Additionally, we believe that the operational costs savings we are experiencing as a self-managed company, along with the enhancement in size and scale of our portfolio through the merger, effectively positions us to achieve long-term objectives on behalf of our fellow investors.”
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 $4.3 billion, as of June 30, 2022.