Griffin-American Healthcare REIT IV Reports Fourth Quarter and Year End 2016 Results
Griffin-American Healthcare REIT IV Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital Corp and American Healthcare Investors, announced its fourth quarter 2016 and end-of-year operating results.
“It was a landmark year for Griffin-American Healthcare REIT IV in 2016, during which we launched our $3 billion initial public offering and began the construction of what we expect will be a portfolio of diversified healthcare real estate,” said Jeff Hanson, chairman and chief executive officer. “As always, our focus remains on building and managing one of the best healthcare REITs in the country that provides its investors with superior long-term financial performance.”
2016 Highlights and Recent Accomplishments
• Modified funds from operations equaled approximately $287,000 for 2016.
• For the fourth quarter of 2016, MFFO equaled approximately $884,000.
• Funds from operations equaled approximately $(4.2) million for 2016.
• For the fourth quarter of 2016, FFO equaled approximately $(1.4) million. The company noted that negative FFO is due largely to the significant acquisition-related expenses incurred during the fourth quarter and for the year.
• Net operating income totaled approximately $2.3 million for the year in 2016.
• For the fourth quarter, NOI totaled approximately $2.0 million.
• Net loss for 2016 was approximately $5.5 million.
• Net loss for the fourth quarter totaled approximately $2.6 million, which the company said was due largely to expensing acquisition-related expenses, as well as depreciation and amortization expenses of its properties.
• In April 2016, the company’s board of directors authorized a daily distribution of $0.001643836 per class T share, which is equal to $0.60 per class T share annualized, to be paid to the REIT’s class T stockholders of record for the period from May 1, 2016 to June 30, 2016, and such daily distribution has been authorized on a quarterly basis through March 31, 2017.
• In June 2016, the board authorized the same daily distribution be paid to the REIT’s class I stockholders beginning on the date the first class I shares were sold and ending on Sept. 30, 2016. The board has also authorized the same daily distribution for class I shares on a quarterly basis through March 31, 2017.
•In August 2016, the company secured a $100 million revolving line of credit expandable to up to $200 million with Bank of America, N.A., KeyBank, National Association, Merrill Lynch, Pierce, Fenner & Smith Incorporated and KeyBanc Capital Markets.
• As of December 31, 2016, the company’s property portfolio was 91.3 percent leased with a weighted average remaining lease term of 7.8 years. Portfolio leverage was 26.5 percent, and the weighted average portfolio capitalization rate was 6.9 percent.
Griffin-American Healthcare REIT IV invests in healthcare real estate assets, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. The REIT commenced its initial public offering in February 2016, and as of February 24, 2017, had raised approximately $149.1 million in investor equity. The company’s 623,000-square-foot portfolio consists of 12 medical office buildings purchased for a total of approximately $139 million.
