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Griffin-American III Reports 137% Growth in FFO

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

“In little more than three years, our international portfolio has achieved significant scale and diversity, with hundreds of healthcare real estate investments acquired for more than $2.9 billion located throughout the United States and the United Kingdom,” said Jeff Hanson, chairman and chief executive officer. “Most importantly, our portfolio continues to perform very well, with high occupancy in both our RIDEA2 and non-RIDEA segments, enviable average remaining lease term, and low portfolio-level debt.”

Third Quarter 2017 Highlights and Subsequent Events

• Modified funds from operations equaled $25.7 million for the third quarter of 2017, representing year-over-year growth of approximately 6 percent compared to $24.2 million during the third quarter 2016.

• Funds from operations equaled $27.7 million during the third quarter 2017, representing year-over-year growth of approximately 137 percent versus third quarter 2016 FFO of $11.7 million. The company said that year-over-year growth in FFO is primarily due to the capitalization of direct acquisition-related costs in connection with the purchase of the company’s properties in 2017 compared to expensing such costs in connection with the purchase of the company’s properties in 2016.

• Net income during the third quarter 2017 was $4.5 million, compared to a net loss of $(56.4) million during the third quarter 2016. Net operating income totaled $55.4 million for the quarter ended Sept. 30, 2017, representing an increase of approximately 3 percent over third quarter 2016 NOI of $54.0 million.

• As of Sept. 30, 2017, the company’s non-RIDEA property portfolio achieved a leased percentage of approximately 95 percent and weighted average remaining lease term of 8.6 years. The company’s portfolio of senior housing — RIDEA facilities and integrated senior health campuses achieved a leased percentage of approximately 85 percent and 86 percent, respectively, for the nine months ended Sept. 30, 2017. Portfolio leverage was approximately 37 percent.

• The company declared and paid daily distributions equal to an annualized rate of 6 percent, based upon a $10.00 per share purchase price, to stockholders of record from July 1 to Sept. 30, 2017.

• Subsequent to the close of the third quarter, on October 4, 2017, the company’s board of directors unanimously approved and established a revised estimated per share net asset value of its common stock of $9.27, a $0.26 increase over the per share NAV of $9.01 approved and established by the board of directors on Oct. 5, 2016.

Griffin-American Healthcare REIT III invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities, and owns a $2.9 billion portfolio comprised of 206 properties. The company commenced its initial public offering in February 2014 and closed in March 2015 after raising more than $1.9 billion.

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