Griffin-American Healthcare REIT III Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Company, reported its operating results for the first quarter of 2017.
“During the first quarter of 2017, Griffin-American Healthcare REIT III completed acquisitions totaling approximately $87.2 million, growing its total portfolio to approximately $2.9 billion in value,” said Jeff Hanson, chairman and chief executive officer. “We acquired our first property in June 2014, and since then have compiled an international portfolio comprised of 206 medical office buildings, hospitals, senior housing facilities, skilled nursing facilities and integrated senior health campuses, in addition to nine real estate-related investments, on behalf of our fellow stockholders.”
First Quarter 2017 Highlights
• Net operating income totaled $48.9 million for the quarter ended March 31, 2017, comparable to first quarter 2016 NOI of $48.8 million.
• Net loss during the first quarter 2017 was $(7.5) million, compared to net loss of $(47.1) million during the first quarter 2016. The company said that net loss is due largely to depreciation and amortization expense of the company’s properties.
• Modified funds from operations equaled $22.5 million for the quarter ended March 31, 2017, representing a year-over-year decline of approximately 15.5 percent compared to $26.6 million during the first quarter 2016. The company said that the year-over-year decline in MFFO is primarily due to the increase in interest expense on the company’s borrowings, partially offset by the acquisition of additional properties and increase in net operating income.
• Funds from operations equaled $23.7 million during the first quarter 2017, as compared to $21 million during the first quarter 2016, representing year-over-year growth of approximately 12.9 percent. The company noted that the growth in FFO is primarily due to the capitalization of direct acquisition-related costs in connection with the purchase of the company’s properties in 2017 compared to expensing such costs in connection with the purchase of the company’s properties in 2016.
• As of March 31, 2017, the company’s portfolio of senior housing — RIDEA facilities and integrated senior health campuses achieved a leased percentage of 83.9 percent and 85.2 percent, respectively, while the company’s non-RIDEA property portfolio achieved a leased percentage of 94.4 percent and weighted average remaining lease term of 8.9 years. Portfolio leverage was 43.5 percent.
Griffin-American Healthcare REIT III commenced its initial public offering in February 2014 and closed in March 2015 after raising more than $1.9 billion.