Griffin-American Healthcare REIT III Completes $350 Million in Acquisitions

Public, non-traded real estate investment trust (REIT) Griffin-American Healthcare REIT III (Healthcare REIT III) recently reported strong first quarter 2015 results, including the closing of its primary offering after a capital raising blitz that lasted just over a year.

“During the first quarter, Griffin-American Healthcare REIT III successfully completed the primary portion of its initial public offering launched in February 2014, which resulted in the investment of more than $1.84 billion of equity in our company,” commented Jeff Hanson, chairman and chief executive officer in a statement.

The REIT hasn’t had trouble finding attractive properties to acquire.

“We are rapidly investing this capital, as evidenced by the more than $350 million in acquisitions completed during the quarter and the approximately $500 million of pending acquisitions we expect to complete over the course of the next several months,” added Hanson.

As of March 31, 2015, the REIT’s property portfolio enjoyed an average occupancy of 95.9 percent and a weighted average remaining lease term of 8.4 years.

“We are clearly focused on accretive portfolio growth and continue to add significant value to Griffin-American Healthcare REIT III as we deploy our capital,” said Danny Prosky, president and chief operating officer of the REIT.

Healthcare REIT III declared and paid daily distributions, which based on a share purchase price of $10, would equal an annualized rate of 6 percent.

Modified funds from operations (MFFO), as defined by the Investment Program Association (IPA), rose 376 percent from Q4 2014 to $5.8 million for Q1 2015.

Through May 13, 2015, Healthcare REIT III’s portfolio of 47 buildings consisted of medical office buildings, hospitals, and senior housing facilities. The REIT also owns an interest in one collateralized debt instrument valued at about $688 million.