Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

Griffin-American Healthcare REIT III Reports 400% Growth in NOI

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 operating results for the company’s first quarter ended March 31, 2016.

“During the first quarter, Griffin-American Healthcare REIT III completed approximately $90 million in investments, growing its consolidated portfolio to approximately $2.5 billion in value, of which we directly own approximately $2.1 billion,” said Jeff Hanson, chairman and chief executive officer. “While we have largely completed the portfolio construction phase of our strategic plan, we are in the process of completing more than $300 million in additional pipeline acquisitions that will further expand our diversified portfolio in the coming months.”

First Quarter 2016 Highlights and Recent Accomplishments:

• Completed first quarter acquisitions totaling approximately $90 million, based on purchase price.

• 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 January 1 to March 31, 2016.

• As of March 31, 2016, the company’s portfolio of senior housing — RIDEA facilities and integrated senior health campuses achieved a leased percentage of 85.8 percent and 88.2 percent, respectively, while the company’s remaining property portfolio achieved a leased percentage of 94.5 percent and weighted average remaining lease term of 8.3 years. Portfolio leverage was 29.8 percent.

• Modified funds from operations equaled $26.6 million for the quarter ended March 31, 2016, representing year-over-year growth of approximately 355 percent compared to $5.8 million during the first quarter 2015.

• Funds from operations equaled $21 million during the first quarter 2016, as compared to $(3.4) million during the first quarter 2015.

• Net operating income totaled $48.8 million for the quarter ended March 31, 2016, representing year-over-year growth of approximately 435 percent over first quarter 2015 NOI of $9.1 million. Net loss during the quarter was $47.1 million, due largely to depreciation and amortization expense of our properties, a non-cash item, in accordance with accounting principles generally accepted in the United States of America, or GAAP.

• Subsequent to the close of the first quarter, the company completed the acquisition of an 85,000-square-foot medical office building in Joplin, Missouri for $11.6 million.

Griffin-American Healthcare REIT III Inc. 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.