Griffin-American Healthcare REIT IV Reports Third Quarter 2017 Results
IRVINE, Calif. (Nov. 13, 2017) – Griffin-American Healthcare REIT IV, Inc. today announced operating results for the company’s third quarter ended Sept. 30, 2017.
“Griffin-American Healthcare REIT IV has strengthened its footprint in the Northeast and established a significant presence in Florida with approximately $125 million1 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 million1 of accretive acquisitions as we continue to build what we expect to be a high-performing portfolio of healthcare real estate.”
Chief financial officer Brian Peay added, “From a performance perspective, the Griffin-American Healthcare REIT IV portfolio remains very attractive. Our portfolio continued to enjoy high occupancy, long remaining lease terms and low portfolio leverage2 of 10.6 percent and expanding net operating income, funds from operations and modified funds from operations.”
Third Quarter 2017 and Subsequent Highlights
- Modified funds from operations, as defined by the Investment Program Association, or the IPA, attributable to controlling interest, or MFFO, equaled approximately $3.7 million for the quarter ended Sept. 30, 2017, representing significant year-over-year growth compared to MFFO of approximately $(204,000) during the third quarter 2016. Funds from operations, as defined by the National Association of Real Estate Investment Trusts, or NAREIT, attributable to controlling interest, or FFO, equaled approximately $4.2 million for the quarter ended Sept. 30, 2017, compared to FFO of approximately $(2.0) million for the third quarter 2016. (Please see financial reconciliation tables and notes at the end of this release for more information regarding MFFO and FFO.)
- Net operating income, or NOI, was approximately $6.4 million for the quarter ended Sept. 30, 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. (Please see financial reconciliation tables and notes at the end of this release for more information regarding NOI and net income (loss).)
- 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 leverage2 was 10.6 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 an aggregate contract 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 with Bank of America, N.A., as administrative agent, and the subsidiary guarantors and lenders, on its existing $100 million revolving line of credit 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 subject to satisfaction of certain conditions as detailed in the credit agreement.
- 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 an aggregate 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.
1 Based on aggregate contract purchase price of real estate investments through Nov. 1, 2017.
2 Total debt divided by aggregate contract purchase price of real estate investments as of Sept. 30, 2017.