The board of Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, has approved a $9.65 estimated net asset value per share of its Class T and Class I common stock, as of December 31, 2017.
“We are very pleased with this initial valuation of our portfolio, which is based on aggregate portfolio growth of approximately 11.3 percent in the value of our properties compared to the aggregate contract purchase price,” said Jeff Hanson, chairman and CEO of Griffin-American Healthcare REIT IV. “We acquired our first property less than two years ago and have since built a portfolio of healthcare real estate which is performing very well, as our financial reports and this valuation demonstrate.”
The company’s audit committee, comprised solely of independent directors, engaged CBRE Capital Advisors Inc., an independent broker-dealer firm that specializes in providing real estate and financial services, to conduct a valuation of the company’s assets and liabilities. The valuation was performed in accordance with guidelines issued by the Institute for Portfolio Alternatives, formerly the Investment Program Association.
CBRE Capital Advisors’ valuation report included the NAV range of $9.32 to $9.99 per share for Class T and Class I common stock. The board adopted the mid-point of $9.65 as the estimated per share NAV at the recommendation of the audit committee.
In a letter to stockholders, the REIT noted that it had acquired two properties for $22.6 million that were not assessed in the valuation, as they were purchased after December 31, 2017. Additionally, the company is currently pursuing approximately $221 million in additional pending acquisitions, which if completed, would increase its portfolio to nearly $710 million in assets.
Griffin-American Healthcare REIT IV is sponsored by American Healthcare Investors and Griffin Capital Company, and invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The company’s portfolio is comprised of 40 medical office buildings and senior housing facilities purchased for approximately $489 million. The REIT commenced its initial public offering in February 2016 had raised $410.2 million in investor equity as of the fourth quarter of 2017.