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Griffin-American Healthcare REIT IV Substantially Increases 3Q17 NOI

Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the third quarter of 2017.

“Griffin-American Healthcare REIT IV has strengthened its footprint in the Northeast and established a significant presence in Florida with approximately $125 million in acquisitions since the close of the second quarter,” said Jeff Hanson, chairman and chief executive officer. “Year-to-date, we have completed more than $327 million of accretive acquisitions as we continue to build what we expect to be a high-performing portfolio of healthcare real estate.”

Third Quarter 2017 and Subsequent Highlights

• Modified funds from operations equaled approximately $3.7 million for the third quarter 2017, compared to MFFO of approximately $(204,000) during the third quarter 2016.

• Funds from operations equaled approximately $4.2 million for the third quarter 2017, compared to FFO of approximately $(2.0) million for the third quarter 2016.

• Net operating income was approximately $6.4 million for the third quarter 2017 representing an increase of approximately 2,887 percent over third quarter 2016 NOI of approximately $214,000.

• Net income during the quarter was approximately $754,000, compared to an approximate net loss of $(2.1) million during the third quarter 2016.

• As of Sept. 30, 2017, the company’s property portfolio achieved a leased percentage of 95.7 percent and weighted average remaining lease term of 8.5 years, while portfolio leverage was 10.6 percent. The weighted average portfolio capitalization rate was 6.9 percent.

• The company completed third quarter acquisitions totaling approximately $15.4 million, based on contract purchase price, comprised of two medical office buildings located in Connecticut. As of the close of the third quarter, the Griffin-American Healthcare REIT IV portfolio consisted of 30 medical office buildings and senior housing facilities acquired for a total purchase price of approximately $356.6 million.

• The company declared and paid daily distributions equal to $0.60 per share annualized to its stockholders of record for the third 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 Oct. 31, 2017, the REIT entered into an amendment on 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.

• Subsequent to the close of the third quarter, on Nov. 1, 2017, the company completed the acquisition of the nine-property, 10 building Central Florida Senior Housing Portfolio for a contract purchase price of approximately $109.5 million. Including third quarter and subsequent acquisitions, the Griffin-American Healthcare REIT IV portfolio was comprised of 40 medical office buildings and senior housing facilities for an aggregate contract purchase price of approximately $466.1 million, as of Nov. 13, 2017.

Griffin-American Healthcare REIT IV is co-sponsored by American Healthcare Investors and Griffin Capital Company and invests in medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities.

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