Griffin-American Healthcare REIT IV Executives Enter into Stock Purchase Plans
Senior executives of Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Company, have agreed to invest 100 percent of their after-tax base salary and cash bonus compensation into shares of the company’s Class I common stock.
American Healthcare Investors LLC’s three founding principals, Jeff Hanson, Danny Prosky, and Mathieu Streiff, along with the company’s executive vice presidents, have entered into irrevocable stock purchase plans related to Griffin-American Healthcare REIT IV Inc., a publicly registered, non-traded real estate investment trust co-sponsored by the firm and Griffin Capital Company.
Under the terms of the plans, Hanson, Prosky and Streiff have agreed to invest 100 percent of their net after-tax cash compensation (base salary and annual bonus) they receive as executives of American Healthcare Investors directly into shares of Class I common stock of Griffin-American Healthcare REIT IV.
Hanson serves as chairman of the board and chief executive officer of Griffin-American Healthcare REIT IV, Prosky serves as the REIT’s president and chief operating officer, and Streiff serves as its executive vice president and general counsel.
The recently executed plans are materially identical to plans entered into by the executives in February 2016 and December 2016 in regards to Griffin-American Healthcare REIT IV, as well as other executive stock purchase plans that were executed annually from 2008 to 2013 in relation to the securities offering by Griffin-American Healthcare REIT II Inc. (originally known as Grubb & Ellis Healthcare REIT II Inc.) and from 2014 to 2015 in relation to the securities offering by Griffin-American Healthcare REIT III Inc.
In total, since 2008, executives and employees of American Healthcare Investors and Griffin Capital who have participated in stock purchase plans or made additional investments independently of the plans have invested more than $30 million in the three REITs.
“We share a fundamental belief that executives responsible for the management of an investment on behalf of stockholders should make considerable personal monetary investments that align their interests with those of the stockholders,” said Hanson. “Over the course of our history, our executive team has proudly invested significant percentages of our individual net worth into the REITs we sponsor, an industry leading practice that should be the norm, rather than the exception.”
Additionally, the four executive vice presidents of American Healthcare Investors have agreed to invest between 5 percent to 15 percent of their net after-tax cash compensation into Class I shares of Griffin-American Healthcare REIT IV.
According to a filing with the Securities and Exchange Commission, the Class I shares will be purchased at $9.21 per share, and no selling commissions, dealer manager fees, or stockholder servicing fees will be paid with respect to the sales.
The plans will remain in effect until the end of 2018 and must be renewed annually. All of the personnel who have entered into the stock purchase plans have expressed their intention to renew the plans on an annual basis until the offering closes.
Griffin-American Healthcare REIT IV invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The company’s portfolio was comprised of 40 medical office buildings and senior housing facilities for a total purchase price of approximately $466.1 million, as of November 2017. The REIT commenced its initial public offering in February 2016, and as of the last quarterly filing, had raised $353.5 million in investor equity.
