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Griffin-American Healthcare REIT III Increases 2Q17 FFO by 79%, Year-Over-Year

Griffin-American Healthcare REIT III Inc., a publicly registered non-traded REIT co-sponsored by American Healthcare Investors and Griffin Capital Company, reported its operating results for the second quarter of 2017.

“During the second quarter of 2017, Griffin-American Healthcare REIT III experienced impressive operational growth across a number of important financial performance metrics compared to the second quarter of 2016,” said Jeff Hanson, chairman and chief executive officer. “Funds from operations grew by 79 percent, while both modified funds from operations and net operating income expanded by approximately 15 percent.”

Second Quarter 2017 Highlights

• Net income during the second quarter 2017 was $1.5 million, compared to net loss of $(51.9) million during the second quarter 2016.

• Net operating income totaled $52.4 million for the quarter ended June 30, 2017, comparable to second quarter 2016 NOI of $45.6 million, representing year-over-year growth of approximately 14.8 percent.

• Modified funds from operations equaled $24.9 million for the second quarter 2017, representing a year-over-year increase of approximately 15.4 percent compared to $21.6 million during the second quarter 2016.

• Funds from operations equaled $26.7 million during the second quarter 2017, as compared to $14.9 million during the second quarter 2016, representing year-over-year growth of approximately 79 percent. The company noted that the growth in FFO is primarily due to the capitalization of direct acquisition-related costs relating property purchases in 2017 compared to expensing such costs in 2016.

• 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, 2017.

• As of June 30, 2017, the company’s portfolio of senior housing — RIDEA facilities and integrated senior health campuses achieved a leased percentage of 84.3 percent and 85.5 percent, respectively, while the company’s non-RIDEA property portfolio achieved a leased percentage of 94.5 percent and weighted average remaining lease term of 9.1 years. Portfolio leverage was 44.0 percent.

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. The REIT commenced its initial public offering in February 2014 and closed in March 2015 after raising more than $1.9 billion. It currently oversees an international portfolio of 207 healthcare properties valued at approximately $2.9 billion.

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