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Griffin-American Healthcare REIT III Reports Third Quarter 2016 Results

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, reported its operating results for the third quarter of 2016.

“During the third quarter, Griffin-American Healthcare REIT III completed strategic acquisitions totaling more than $172 million, which results in a total portfolio value in excess of $2.8 billion, based on aggregate contract purchase price,” said Jeff Hanson, chairman and chief executive officer. “With 193 medical office buildings, hospitals, skilled nursing facilities, senior housing facilities and integrated senior health campuses located throughout the United States and the United Kingdom, Griffin-American Healthcare REIT III has grown to become one of the largest and most diversified healthcare REITs in the country.”

Third Quarter 2016 Highlights

• Modified funds from operations, as defined by the Investment Program Association, equaled $24.2 million for the quarter ended September 30, 2016, representing year-over-year growth of approximately 138.4 percent compared to $10.2 million during the third quarter 2015.

• Funds from operations, as defined by the National Association of Real Estate Investment Trusts, equaled $11.7 million during the third quarter 2016 versus third quarter 2015 FFO of $(451,000).

• Net loss during the quarter was $56.4 million, compared to a net loss of $17.9 million during the third quarter 2015. The company noted that net loss is due largely to depreciation and amortization expense of its properties.

• Net operating income totaled $54 million for the third quarter 2016, representing an increase of approximately 261.6 percent over third quarter 2015 NOI of $14.9 million.

• Completed third quarter acquisitions totaling approximately $172.2 million.

• 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 July 1 to September 30, 2016.

• As of September 30, 2016, the company’s non-RIDEA property portfolio achieved a leased percentage of 94.7 percent and weighted average remaining lease term of 8.6 years. The company’s portfolio of senior housing — RIDEA facilities and integrated senior health campuses achieved a leased percentage of 84.9 percent and 87.7 percent, respectively, for the nine months ended September 30, 2016. Portfolio leverage was 39.6 percent.

Recent Accomplishments

• Subsequent to the close of the third quarter, the company completed the acquisition of a skilled nursing facility in Quincy, Massachusetts for approximately $22.5 million, which was added to the existing Fox Grape SNF Portfolio. The other five facilities were acquired in July 2016.

• On October 5, 2016, the board of directors unanimously determined and approved an estimated net asset value of $9.01 per share of the company’s common stock.

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.

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