In just over a year, Griffin-American Healthcare REIT III, Inc. (Healthcare REIT III), a public, non-traded REIT, raised $1.84 billion in equity. This highlight was one of many announced by the REIT in yesterday’s release of its operating results for Q4 and the year ended December 31, 2014.
Declared effective by the SEC on February 26, 2014, Healthcare REIT III raised capital so quickly it closed its primary initial public offering on March 12, 2015.
“It was a landmark year for Griffin-American Healthcare REIT III, during which we launched one of the most successful equity offerings in the history of the non-traded REIT industry and began the construction of what we expect will be a multi-billion dollar portfolio of diversified healthcare real estate,” said Jeff Hanson, chairman and chief executive officer. “We are grateful to our financial adviser and broker-dealer partners for the trust they have placed in us, and expect to build upon our track record of value creation for our stockholders as we pursue our strategic plan.”
Due to the success of its capital raise, Healthcare REIT III was able to acquire properties relatively quickly. Its first purchase came in early June 2014 and as of last week, the REIT owns 40 healthcare related facilities valued at about $624 million, based on purchase price.
“We have also executed letters of intent and/or purchase and sale agreements to acquire in excess of $500 million in additional properties, all of which we expect to complete in the coming months,” added Danny Prosky President and COO.
During the year the REIT maintained a daily distribution to stockholders of record that equals an annualized rate of six percent, based on a share purchase price of $10.
Healthcare REIT III enjoys an aggregate average occupancy of 95.9 percent and a weighted average remaining lease term of 10.6 years, as of December 31, 2014.