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Griffin-American Healthcare REIT IV Breaks Escrow, Declares 6 Percent Initial Distribution

Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust co-sponsored by American Healthcare Investors and Griffin Capital Corporation, reached the minimum offering of $2 million in shares of common stock and broke escrow. The REIT can now use the funds to purchase real estate investments.

The initial public offering of approximately $3.15 billion in common stock was declared effective by the Securities and Exchange Commission in February. The offering consists of 300 million shares of common stock for sale at $10.00 per share and up to an additional 15,789,474 shares of common stock under its distribution reinvestment plan at $9.50 per share.

The REIT’s board of directors authorized a 6 percent distribution to stockholders.

Griffin-American Healthcare REIT IV Advisor has agreed to waive asset management fees in order to provide additional funds to pay the stockholder distributions. The fees will be waived until the amount of the waived asset management fees is equal to the amount of distributions payable to stockholders for the period beginning on May 1, 2016 and ending on the date they acquire the first property or real estate-related investment. The advisor will not receive any additional securities, shares of stock, or any other form of consideration or any repayment as a result of the waiver of the asset management fees.

As previously reported by The DI Wire, the REIT’s founders, Jeff Hanson, Danny Prosky and Mathieu Streiff, along with the company’s executive vice presidents, entered into irrevocable stock purchase plans and agreed to invest 100 percent of their after-tax cash compensation (salary and annual bonus) they receive as executives of American Healthcare Investors, the REIT’s co-sponsor, directly into common stock of the REIT.

Hanson serves as chairman of the board and chief executive officer of Griffin-American Healthcare REIT IV, Prosky serves as the REIT’s president and chief operating officer and Streiff serves as its executive vice president and general counsel.

Hanson, Prosky, Streiff and Kevin Shields, chairman and chief executive officer of Griffin Capital Corporation, the REIT’s other co-sponsor, have subscribed for initial investments totaling $1 million into the REIT and were among its first individual investors. This initial subscription is in addition to the ongoing stock purchases that Hanson, Prosky and Streiff will make through their stock purchase plans.

Additionally, the three executive vice presidents of American Healthcare Investors have also entered into stock purchase plans wherein they invest a portion of their after-tax cash compensation ranging between 10 percent to 15 percent.

The plans will remain in effect until the end of 2016 and must be renewed on an annual basis.

Griffin-American Healthcare REIT IV invests in healthcare real estate assets, focusing primarily on medical office buildings, senior housing facilities, skilled nursing facilities, hospitals and other healthcare-related real estate assets.

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