Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, recently filed its first quarter 2020 financials and provided a letter to its shareholders outlining the results.
“Through the majority of the first quarter, our portfolio was not significantly affected by the COVID-19 pandemic and accordingly, results for the quarter on the whole were not materially impacted, with growth in modified funds from operations, funds from operations and net operating income, while occupancy and weighted average remaining lease terms across our portfolio remained healthy,” the company stated in the letter.
“While performance for the quarter on the whole was not materially impacted, we began seeing the effects of the COVID-19 pandemic in all of our asset classes near the end of the quarter, which we have seen continue in the second quarter,” the company added.
The company declared and paid daily distributions equal to $0.60 per share annualized to its stockholders of record for the first quarter 2020, and on March 31, 2020, the company’s board reduced the annualized distribution rate to $0.40 per share. The company said that the decision was made to increase liquidity in light of the onset of the COVID-19 pandemic. The board also suspended the company’s share repurchase plan, with respect to all repurchase requests other than those resulting from the death or qualifying disability of stockholders.
During the first quarter, the company purchased seven senior housing facilities located in California, Louisiana and Utah in three separate transactions for a total of $64.7 million.
Modified funds from operations equaled $9.1 million for the quarter ended March 31, 2020, representing year-over-year growth of 28.6 percent compared to MFFO of $7.1 million during the first quarter 2019.
Funds from operations equaled $5.4 million for the quarter ended March 31, 2020, compared to FFO of $4.6 million for the first quarter 2019, representing year-over-year growth of 18.9 percent.
Net operating income totaled $18.7 million for the quarter ended March 31, 2020, representing an increase of 39.6 percent over first quarter 2019 NOI of $13.4 million.
Net loss during the quarter was $7.9 million compared to a net loss of $12.4 million during the first quarter 2019. The company noted that net loss is due largely to depreciation and amortization expense of its properties and loss in fair value of its derivative financial instruments.
As of March 31, 2020, the company’s non-RIDEA property portfolio had a leased percentage of 95.6 percent and weighted average remaining lease term of 8.8 years. The company’s portfolio of senior housing – RIDEA facilities had a leased percentage of 81.7 percent. Portfolio leverage was 40 percent.
Following the close of the first quarter, on April 2, 2020, the REIT maintained an estimated $9.54 per share net asset value of its common stock as of December 31, 2019.
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. As of the first quarter of 2020, the company’s portfolio was comprised of 94 healthcare properties, including an interest in a joint venture, purchased for more than $1.1 billion and valued of roughly $1.2 billion.