Griffin-American Healthcare REIT IV Maintains NAV Per Share, Reduces Distributions and Suspends Repurchases
The board of Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, has declared an updated net asset value per share of the company's common stock.
The board of Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, has declared an updated net asset value per share of the company’s common stock. In addition, in light of the recent coronavirus pandemic, the company has reduced monthly distributions to investors and suspended its share repurchase plan.
Griffin-American Healthcare REIT IV, co-sponsored by American Healthcare Investors and Griffin Capital Company, invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities.
Monthly distribution payments to investors were reduced from an annualized rate of $0.60 per share to $0.40 per share beginning with the April 2020 distribution, which will be paid on May 1, 2020. Additionally, the REIT suspended its second quarter 2020 share repurchase program, aside from requests resulting from the death or qualifying disability of stockholders.
“These actions were not taken lightly, and we continue to stay in close contact with our tenants and operating partners to monitor developments as they occur.,” the REIT said in a letter to shareholders. “As the impact of the pandemic on our operations becomes clearer, the board of directors will evaluate investor distributions and the SRP on a regular basis and may make additional adjustments as circumstances warrant.”
The company also disclosed that it has maintained a $9.54 NAV per share for Class T and Class I shares of common stock as of December 31, 2019, the same as last year. Jones Lang LaSalle Securities LLC, an independent valuation firm, assisted with the valuation and provided a range of values of $9.28 to $9.99 per share, with a midpoint of $9.75 per share. It is customary for REITs to use the midpoint of the valuation when they establish a new NAV.
“This valuation was conducted as of December 31, 2019, and thus does not consider any potential impacts to the portfolio that may be caused by the COVID-19 pandemic…,” the company said. “Given the significant uncertainties presented by the pandemic and the potential impacts to the company’s portfolio, the board of directors established the estimated per share NAV at $9.54, which is within the range of values provided by JLLS but lower than the mid-point of the range.”
Griffin-American Healthcare REIT IV commenced its initial public offering in February 2016 raised $754.1 million in investor equity prior to closing the offering in February 2019. The company oversees a portfolio of 82 healthcare properties, including an interest in a joint venture, purchased for more than $1.1 billion, and which has an estimated value of roughly $1.2 billion.
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