August 14, 2018

Griffin-American Healthcare REIT IV Reports Second Quarter 2018 Results

ST. LOUIS (August 14, 2018) - Griffin-American Healthcare REIT IV, Inc., today announced operating results for the company’s second quarter ended June 30, 2018.

“Griffin-American Healthcare REIT IV built on its exceptional first quarter results with an excellent second quarter of 2018, during which we recorded strong performance throughout our portfolio, which continues to grow at a rapid rate,” said Jeff Hanson, chairman and chief executive officer. “Including acquisitions completed subsequent to the close of the quarter, our portfolio has expanded to 50 healthcare properties acquired for an aggregate contract purchase price of $626.3 million,1 and we have more than $400 million2 of additional pending acquisitions that we intend to complete in the coming months.”

Chief financial officer Brian Peay added, “We continue to successfully build-out our portfolio with accretive properties that perform well. As such, our portfolio continued to enjoy high occupancy through the second quarter, strong average remaining lease term, low portfolio leverage, and triple digit growth in key performance metrics, including modified funds from operations, funds from operations and net operating income.”

Second Quarter 2018 Highlights

  • Modified funds from operations, as defined by the Institute for Portfolio Alternatives, or IPA, attributable to controlling interest, or MFFO, equaled $6.2 million for the quarter ended June 30, 2018, representing year-over-year growth of approximately 111.6 percent compared to MFFO of $2.9 million during the second quarter 2017. (Please see financial reconciliation tables and notes at the end of this release for more information regarding MFFO.)
  • Funds from operations, as defined by the National Association of Real Estate Investment Trusts, or NAREIT, attributable to controlling interest, or FFO, equaled $6.9 million for the quarter ended June 30, 2018, representing year-over-year growth of approximately 122.9 percent compared to FFO of $3.1 million during the second quarter 2017. (Please see financial reconciliation tables and notes at the end of this release for more information regarding FFO.)
  • Net loss during the quarter was $958,000 compared to net income of $621,000 during the second quarter 2017. Net loss is due largely to depreciation and amortization expense of our properties, a non-cash item, in accordance with accounting principles generally accepted in the United States of America, or GAAP. (Please see financial reconciliation tables and notes at the end of this release for more information regarding net loss/income.)
  • Net operating income, or NOI, totaled $9.7 million for the quarter ended June 30, 2018, representing an increase of approximately 111.3 percent over second quarter 2017 NOI of $4.6 million. (Please see financial reconciliation tables and notes at the end of this release for more information regarding NOI.)
  • As of June 30, 2018, the company’s non-RIDEA3 property portfolio achieved a leased percentage of 95.1 percent and weighted average remaining lease term of 8.8 years. The company’s portfolio of senior housing —RIDEA facilities achieved a leased percentage of 76.5 percent. Portfolio leverage4 was 15.6 percent.
  • The company completed the acquisition of three medical office buildings during the quarter for an aggregate purchase price of approximately $47.4 million.
  • The company declared and paid daily distributions equal to $0.60 per share annualized to its stockholders of record for the second 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. The annualized distribution rate is equal to 5.97 percent for Class T stockholders and 6.22 percent for Class I stockholders who purchased their shares subsequent to April 9, 2018, when share purchase prices for investors were adjusted to $10.05 per share for Class T shares and $9.65 per share for Class I shares. Share prices were adjusted following the approval by the company’s board of directors of an estimated per share net asset value of its common stock of $9.65 as of Dec. 31, 2017.5 Subsequent Events
  • Subsequent to the close of the second quarter 2018, the company completed property acquisitions totaling approximately $90.2 million, comprised of three medical office buildings and two senior housing-RIDEA facilities. As of Aug. 14, 2018, the company’s portfolio consisted of 50 medical office buildings, senior housing facilities and skilled nursing facilities located in 20 states comprised of approximately 3.0 million square feet of gross leasable area, acquired for an aggregate contract purchase price of approximately $626.3 million. Additionally, the company is currently pursuing approximately $404.7 million in additional pending acquisitions,2 which would result in a total portfolio of approximately 98 healthcare buildings located in 22 states comprised of approximately 4.7 million square feet of gross leasable area upon the successful completion of these potential acquisitions.

1 Based on aggregate contract purchase price as of Aug. 14, 2018.

2 Comprised of prospective real estate acquisitions for which the company has executed letters of intent and/or purchase and sale agreements as of Aug. 9, 2018. These prospective acquisitions are subject to substantial closing conditions and the satisfaction of other requirements as detailed in the agreements. Accordingly, the closing of some or all of these pending transactions may not occur.

3 The operation of healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007 is commonly referred to as a “RIDEA” structure.

4 Total debt divided by total market value of real estate. Total market value equals the aggregate contract purchase price paid for investments or, for investments appraised subsequent to the date of purchase, the aggregate value reported in the most recent independent appraisals of such investments.

5 Please refer to the company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on April 9, 2018 for additional information.

News & Updates

Media Contact

Damon Elder

(949) 270-9207
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This material must be read in conjunction with the applicable prospectus in order to understand all the implications and risks of any offering of securities to which the material relates. If you have not previously reviewed a prospectus, click here. Otherwise, to proceed, agree to the Terms and Conditions and Privacy Policy of this website.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES. AN OFFERING IS MADE ONLY BY A PROSPECTUS. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH A PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF ANY OFFERING OF SECURITIES. AN INVESTMENT IN THIS PRODUCT INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THE PROGRAM WILL BE ATTAINED. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES, PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL AND COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Risk Factors: Before purchasing any shares of Griffin-American Healthcare REIT IV, Inc., you should consider the following risk factors, as well as those disclosed in our prospectus: (1) there is no public market for the shares of our common stock and there are significant restrictions on the ownership, transferability and repurchase of shares of our common stock; (2) we have no operating history or established financing sources; (3) this is a "blind pool" offering and you will not be able to evaluate the economic merits of our investments prior to their purchase; (4) until we generate operating cash flows sufficient to pay distributions to you, we may pay distributions from the net proceeds of this offering or from borrowings in anticipation of future cash flows and we may also be required to sell assets or issue new securities for cash in order to pay distributions; (5) we may incur substantial debt, which could hinder our ability to pay distributions to you or decrease the value of your investment; (6) this is a "best efforts" offering and, if we raise substantially less than the maximum offering, we may not be able to invest in a diversified portfolio; (7) we will rely on our advisor and its affiliates to manage our day-to-day operations and the selection of our investments and we will pay substantial fees to our advisor and its affiliates for these services; (8) many of our officers also are managing directors, officers and/or employees of one of our co-sponsors and other affiliated entities and as a result, our officers will face conflicts of interest; (9) if we do not qualify as a REIT, we would be subject to federal income tax at regular corporate rates; (10) the amount of distributions we may pay, if any, is uncertain and there is no guarantee of any return on your investment; and (11) we are not obligated, through our charter or otherwise, to effectuate a liquidity event, and we may not effect a liquidity event within our targeted time frame, or at all.

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The Griffin-American Healthcare REIT IV website is available for use subject to its Terms and Conditions and our Privacy Policy. Please click on the highlighted terms to review these. To review a summary of the risk factors related to an investment in the Griffin-American Healthcare REIT IV program click here.

This material must be read in conjunction with the applicable prospectus in order to understand all the implications and risks of any offering of securities to which the material relates. If you have not previously reviewed a prospectus, click here. Otherwise, to proceed, agree to the Terms and Conditions and Privacy Policy of this website.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES. AN OFFERING IS MADE ONLY BY A PROSPECTUS. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH A PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF ANY OFFERING OF SECURITIES. AN INVESTMENT IN THIS PRODUCT INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THE PROGRAM WILL BE ATTAINED. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES, PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL AND COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Risk Factors: Before purchasing any shares of Griffin-American Healthcare REIT IV, Inc., you should consider the following risk factors, as well as those disclosed in our prospectus: (1) there is no public market for the shares of our common stock and there are significant restrictions on the ownership, transferability and repurchase of shares of our common stock; (2) we have no operating history or established financing sources; (3) this is a "blind pool" offering and you will not be able to evaluate the economic merits of our investments prior to their purchase; (4) until we generate operating cash flows sufficient to pay distributions to you, we may pay distributions from the net proceeds of this offering or from borrowings in anticipation of future cash flows and we may also be required to sell assets or issue new securities for cash in order to pay distributions; (5) we may incur substantial debt, which could hinder our ability to pay distributions to you or decrease the value of your investment; (6) this is a "best efforts" offering and, if we raise substantially less than the maximum offering, we may not be able to invest in a diversified portfolio; (7) we will rely on our advisor and its affiliates to manage our day-to-day operations and the selection of our investments and we will pay substantial fees to our advisor and its affiliates for these services; (8) many of our officers also are managing directors, officers and/or employees of one of our co-sponsors and other affiliated entities and as a result, our officers will face conflicts of interest; (9) if we do not qualify as a REIT, we would be subject to federal income tax at regular corporate rates; (10) the amount of distributions we may pay, if any, is uncertain and there is no guarantee of any return on your investment; and (11) we are not obligated, through our charter or otherwise, to effectuate a liquidity event, and we may not effect a liquidity event within our targeted time frame, or at all.