Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital Company and American Healthcare Investors, announced its operating results for the first quarter of 2018.
“Griffin-American Healthcare REIT IV enjoyed an excellent first quarter, with continued growth in our portfolio and across a number of important financial and performance metrics,” said Jeff Hanson, chairman and chief executive officer.”
First Quarter 2018 Highlights
• Modified funds from operations, as defined by the Institute for Portfolio Alternatives, equaled approximately $4.4 million for the quarter ended March 31, 2018, representing year-over-year growth of approximately 214.2 percent compared to MFFO of approximately $1.4 million during the first quarter 2017.
• Funds from operations, as defined by the National Association of Real Estate Investment Trusts, equaled approximately $5.0 million for the first quarter of 2018, compared to FFO of approximately $1.6 million for the first quarter 2017, representing year-over-year growth of approximately 204.9 percent.
• Net loss during the quarter was approximately $(2.2) million compared to an approximate net loss of $(85,000) during the first quarter 2017. The company noted that net loss is due largely to depreciation and amortization expense of its properties.
• Net operating income totaled approximately $8.3 million for the quarter ended March 31, 2018, representing an increase of approximately 188.2 percent over first quarter 2017 NOI of approximately $2.9 million.
• As of March 31, 2018, the company’s non-RIDEA property portfolio achieved a leased percentage of 95.6 percent and weighted average remaining lease term of 9.4 years. The company’s portfolio of senior housing – RIDEA facilities achieved a leased percentage of 76.3 percent. Portfolio leverage was 15.1 percent.
• Completed the acquisition of the two-property Central Wisconsin Senior Care Portfolio for $22.6 million.
• Declared and paid daily distributions equal to $0.60 per share annualized to its stockholders of record for the first quarter 2018, 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 April 9, 2018, the company’s board unanimously approved and established an estimated $9.65 per share net asset value of its common stock calculated as of December 31, 2017, which demonstrated aggregate portfolio growth of 11.3 percent compared to the aggregate contract purchase price of the company’s property acquisitions.
Subsequent to the close of the first quarter 2018, the company completed property acquisitions totaling approximately $47.4 million, comprised of three medical office buildings.
Griffin-American Healthcare REIT IV, sponsored by American Healthcare Investors and Griffin Capital Company, 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 $463 million in investor equity as of the first quarter of 2018. The company’s portfolio is comprised of 45 medical office buildings and senior housing facilities purchased for approximately $536.1 million.
Additionally, the company is currently pursuing approximately $204.7 million in additional pending acquisitions which would result in a total portfolio of approximately 63 healthcare buildings located in 20 states comprised of approximately 3.5 million square feet of gross leasable area upon the successful completion of these potential acquisitions.