Griffin-American Healthcare REIT III Reports First Quarter 2018 Results
IRVINE, Calif. (May 17, 2018) – Griffin-American Healthcare REIT III, Inc. Inc. today announced operating results for the company’s first quarter ended March 31, 2018.
“Since acquiring our first property in June 2014, Griffin-American Healthcare REIT III has built an international portfolio comprised of 208 healthcare properties and real estate-related investments valued at approximately $3.0 billion,1” said Jeff Hanson, chairman and chief executive officer. “Our selective acquisition strategy and active management philosophy has resulted in a portfolio that is performing well across all metrics and we remain very pleased with the progress we’ve made in a remarkably brief timespan.”
Chief financial officer Brian Peay added, “Our portfolio continues to enjoy high occupancy and lengthy average remaining lease term paired with significant year-over-year growth in net income, net operating income, funds from operations and modified funds from operations. By nearly every measure, Griffin-American Healthcare REIT III is performing at a high level.”
First Quarter 2018 Highlights
- Modified funds from operations, as defined by the Institute for Portfolio Alternatives, or the IPA, attributable to controlling interest, or MFFO, equaled $24.9 million for the quarter ended March 31, 2018, representing year-over-year growth of approximately 10.7 percent compared to $22.5 million during the first 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 $28.3 million during the first quarter 2018, as compared to $23.7 million during the first quarter 2017, representing year-over-year growth of approximately 19.3 percent. (Please see financial reconciliation tables and notes at the end of this release for more information regarding FFO.)
- Net income during the first quarter 2018 was $8.4 million, compared to net loss of $(7.5) million during the first quarter 2017.
- Net operating income, or NOI, totaled $51.6 million for the quarter ended March 31, 2018, an increase of approximately 5.5 percent over first quarter 2017 NOI of $48.9 million. (Please see financial reconciliation tables and notes at the end of this release for more information regarding NOI and net income (loss).)
- As of March 31, 2018, the company’s portfolio of senior housing – RIDEA2 facilities and integrated senior health campuses achieved a leased percentage of 85.5 percent and 82.3 percent, respectively, while the company’s non-RIDEA property portfolio achieved a leased percentage of 93.0 percent and weighted average remaining lease term of 8.5 years. Portfolio leverage3 was 38.5 percent.
- The company declared and paid daily distributions equal to an annualized rate of $0.60 per share to stockholders of record from Jan. 1 to March 31, 2018.
1 Based on aggregate contract purchase price of owned and/or operated real estate and real estate-related investments, including development projects, as of March 31, 2018.
2 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.
3 Total debt divided by total market value of real estate and real estate-related investments. 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.
