Griffin-American Healthcare REIT III Expands Portfolio to $2.7 Billion During 2Q16
Griffin-American Healthcare REIT III Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Corporation, announced its operating results for the second quarter ended June 30, 2016.
“Griffin-American Healthcare REIT III completed the acquisition of nearly $180 million of properties during the second quarter as we work to complete the construction of the company’s portfolio,” said Jeff Hanson, chairman and chief executive officer. “Our portfolio has achieved significant scale and diversity, with 186 medical office buildings, hospitals, skilled nursing facilities, senior housing facilities and integrated senior health campuses located throughout the United States and the United Kingdom.”
Second Quarter 2016 Highlights and Recent Accomplishments
• Completed second quarter acquisitions totaling approximately $178.6 million. As of June 30, 2016, the company had completed healthcare related acquisitions located throughout the United States and the United Kingdom for a total purchase price of approximately $2.7 billion.
• The company declared and paid daily distributions equal to an annualized rate of 6 percent to stockholders of record, based upon a $10.00 per share purchase price, from April 1 to June 30, 2016.
• As of June 30, 2016, the company’s non-RIDEA property portfolio achieved a leased percentage of 94.3 percent and weighted average remaining lease term of 8.2 years. The company’s portfolio of senior housing — RIDEA facilities and integrated senior health campuses achieved a leased percentage of 84.7 percent and 88.2 percent, respectively, for the six months ended June 30, 2016. Portfolio leverage was 36.6 percent.
• Modified funds from operations equaled $21.6 million for the quarter, representing year-over-year growth of approximately 161.8 percent compared to $8.3 million during the second quarter 2015.
• Funds from operations equaled $14.9 million during the second quarter of 2016, compared to the second quarter of 2015 FFO of $(4.7) million.
• Net operating income totaled $45.6 million for the quarter, representing an increase of approximately 306.7 percent over second quarter 2015 NOI of $11.2 million.
• Net loss during the quarter was $51.9 million, compared to a net loss of $12.8 million during the second quarter 2015. The REIT noted that net loss is due largely to depreciation and amortization expense of the properties.
• Following the close of the second quarter, the company completed the acquisition of six additional healthcare-related buildings located in Braintree, Brighton, Duxbury, Hingham and Weymouth, Massachusetts and Voorhees, New Jersey, and a development parcel with improvements located in Harrodsburg, Kentucky, for a consolidated purchase price of $79.2 million.
Griffin-American Healthcare REIT III invests in a diversified portfolio of healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities.
