Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by American Healthcare Investors and Griffin Capital Company, announced its operating results for the company’s fourth quarter and year ended December 31, 2017.
“Griffin-American Healthcare REIT IV expanded significantly during 2017, acquiring more than $327 million of quality healthcare real estate on behalf of our fellow investors,” said Jeff Hanson, chairman and chief executive officer. “We have now acquired a portfolio approaching half a billion dollars in value.”
2017 Highlights and Accomplishments
• Modified funds from operations, as defined by the Investment Program Association, equaled approximately $12.9 million for 2017, compared to MFFO of approximately $287,000 year-over-year.
• MFFO during the fourth quarter 2017 equaled approximately $4.9 million, representing approximately 457 percent growth compared to MFFO of approximately $884,000 during the same period in 2016.
• Funds from operations, as defined by the National Association of Real Estate Investment Trusts, equaled approximately $14.1 million for 2017, as compared to approximately $(4.2) million during the same period in 2016.
• FFO equaled approximately $5.2 million during the fourth quarter 2017 compared to fourth quarter 2016 FFO of approximately $(1.4) million. The company noted that year-over-year growth in MFFO and FFO is primarily due to the acquisition of additional properties.
• Net income for 2017 was approximately $508,000, as compared to net loss of approximately $(5.5) million for the year ended December 31, 2016.
• Net loss during the fourth quarter 2017 equaled approximately $(782,000), compared with net loss during the fourth quarter 2016 of approximately $(2.6) million. The company said that net loss is due largely to depreciation and amortization expense of its properties.
• Net operating income totaled approximately $21.8 million for 2017, representing an increase of approximately 867 percent compared to NOI of approximately $2.3 million for the same period last year.
• NOI during the fourth quarter 2017 equaled approximately $8.0 million, an increase of approximately 292 percent compared to fourth quarter 2016 NOI of approximately $2.0 million.
• As of Dec. 31, 2017, the company’s non-RIDEA property portfolio achieved a leased percentage of 95.2 percent and weighted average remaining lease term of 8.5 years. The company’s portfolio of senior housing — RIDEA facilities achieved a leased percentage of 76 percent. Portfolio leverage was 20.5 percent.
• The company completed fourth quarter and 2017 property acquisitions totaling $109.5 million and $327.3 million, respectively, based on total contract purchase price. As of December 31, 2017, the company had completed the acquisition of a portfolio comprised of 40 medical office buildings and senior housing facilities located across 14 states for a total contract purchase price of approximately $466.1 million.
• The company declared and paid daily distributions equal to $0.60 per share annualized to its stockholders of record for the fourth quarter 2017, equal to an annualized distribution rate of 6.0 percent for Class T stockholders and 6.51 percent for Class I stockholders, assuming a purchase price of $10.00 per share for Class T shares and $9.21 per share for Class I shares.
• On October 31, 2017, the REIT amended its existing $100 million revolving line of credit with Bank of America N.A. to expand the line by $50 million, to a maximum principal amount of $150 million. The REIT also obtained a term loan with its existing team of lenders for a maximum amount of $50 million. Both credit facilities mature on Aug. 25, 2019 and may be extended for one 12-month period.
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 is comprised of 42 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.