Home Alts News Griffin-American Healthcare REIT IV Reports 123% FFO Growth in 2Q18

Griffin-American Healthcare REIT IV Reports 123% FFO Growth in 2Q18

Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Company, announced the operating results for the company’s second quarter ended June 30, 2018.

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Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Company, announced the operating results for the company’s second quarter ended June 30, 2018.

“Griffin-American Healthcare REIT IV built on its exceptional first quarter results with an excellent second quarter of 2018, during which we recorded strong performance throughout our portfolio, which continues to grow at a rapid rate,” said Jeff Hanson, chairman and chief executive officer. “Including acquisitions completed subsequent to the close of the quarter, our portfolio has expanded to 50 healthcare properties acquired for an aggregate contract purchase price of $626.3 million, and we have more than $400 million of additional pending acquisitions that we intend to complete in the coming months.”

Second Quarter 2018 Highlights

  • Modified funds from operations equaled $6.2 million for the second quarter of 2018, representing year-over-year growth of approximately 111.6 percent compared to MFFO of $2.9 million during the second quarter 2017.
  • Funds from operations equaled $6.9 million for the quarter ended June 30, 2018, representing year-over-year growth of approximately 122.9 percent compared to FFO of $3.1 million during the second quarter 2017.
  • Net loss during the quarter was $958,000 compared to net income of $621,000 during the second quarter 2017. The company noted that net loss is due largely to depreciation and amortization expense of its properties.
  • Net operating income totaled $9.7 million for the quarter ended June 30, 2018, representing an increase of approximately 111.3 percent over second quarter 2017 NOI of $4.6 million.
  • As of June 30, 2018, the company’s non-RIDEA property portfolio achieved a leased percentage of 95.1 percent and weighted average remaining lease term of 8.8 years. The company’s portfolio of senior housing — RIDEA facilities achieved a leased percentage of 76.5 percent. Portfolio leverage was 15.6 percent.
  • The company completed the acquisition of three medical office buildings during the quarter for an total purchase price of approximately $47.4 million.

Subsequent Events

  • After the close of the second quarter 2018, the company completed property acquisitions totaling approximately $90.2 million, comprised of three medical office buildings and two senior housing-RIDEA facilities.

Griffin-American Healthcare REIT IV invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016 had raised $526.4 million in investor equity as July 2, 2018. Griffin-American Healthcare REIT IV oversees a 3.0 million-square-foot portfolio of 50 properties purchased for approximately $626.3 million.

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