Griffin-American Healthcare REIT III Reduces Distributions and Suspends Share Repurchase Plan

The board of Griffin-American Healthcare REIT III Inc., a publicly registered non-traded real estate investment trust, has decided to reduce the company’s monthly investor distributions and suspend the share repurchase plan.

The board of Griffin-American Healthcare REIT III Inc., a publicly registered non-traded real estate investment trust, has decided to reduce the company’s monthly investor distributions and suspend the share repurchase plan.

Griffin-American Healthcare REIT III is co-sponsored by American Healthcare Investors and Griffin Capital Company and invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities.

The company said that the coronavirus (COVID-19) pandemic presents a challenge to owners and operators of healthcare facilities and is expected to cause a “massive strain throughout the healthcare system.”

“While we have yet to experience a material impact to our operations as a result of the pandemic, we anticipate that this will change as the virus continues to spread,” the company said in a letter to shareholders. “In response to this fluid and rapidly developing situation, we believe conditions require that we make every effort to further strengthen the long-term financial prospects of the company.”

Distribution payments were reduced from an annualized rate of $0.60 per share to $0.30 per share beginning with the April 2020 distribution, which will be paid on May 1, 2020. In addition, the share repurchase plan was suspended except for requests resulting from the death or qualifying disability of stockholders.

The company indicated that its board will evaluate investor distributions and the share repurchase plan on a regular basis and may make adjustments as circumstances warrant.

Griffin-American Healthcare REIT III launched its initial public offering in February 2014 and closed in March 2015 after raising more than $1.9 billion. As of June 30, 2019, the REIT owned a $3 billion portfolio of 211 assets, which include 98 properties (102 buildings) and 113 integrated senior health campuses. In addition, the REIT had invested $60.4 million in real estate-related investments.

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