(Save the date: RealShare Medical Office Buildings comes to the Four Seasons in Scottsdale, AZ, November 7 -8.)
NEWPORT BEACH, CA-Griffin-American Healthcare REIT II reports strong second-quarter results. The REIT has acquired 17 healthcare-related buildings for $144.5 million during the quarter, representing a portfolio expansion of more than 21% over the previous quarter based on purchase price, according to Danny Prosky, president and COO.
“As a result of this growth, important financial metrics, such as modified funds from operations and net operating income, experienced year-over-year growth of approximately 188% and 148%, respectively, as compared to the second quarter of 2011,” Prosky said in a prepared statement. “Including acquisitions completed subsequent to the close of the second quarter, the portfolio of Griffin-American Healthcare REIT II has nearly doubled in value since January 1, 2012, based on purchase price.”
Other Q2 highlights and accomplishments for the REIT include:
- Portfolio growth based on purchase price from $671.4 million as of March 31 to $816 million as of June 30, with year-over-year-portfolio growth of approximately 98.3%, from $411.5 million as of June 30, 2011 to $816 million as of June 30, 2012.
- Aggregate average occupancy for the company’s property portfolio of 96.1% as of June 30, with leverage of 31.2% (total debt divided by total assets).
- MFFO of $10.2 million, compared to $3.5 million during second-quarter 2011, and FFO of $6.8 million, compared with $3.6 million during second-quarter 2011. Year-over-year growth in MFFO and FFO is primarily due to the acquisition of additional properties.
- NOT of $17 million in second-quarter 2012, as compared to NOI of approximately $6.9 million in second-quarter 2011, and net loss during the quarter of $1.2 million as compared to $6.9 million during second-quarter 2011.
- In June, entry into a $200 million unsecured line of credit with Merrill Lynch, Pierce, Fenner & Smith Inc. and KeyBanc Capital markets as joint lead arrangers. Bank of America serves as administrative agent, with KeyBank National Association acting as syndication agent. The unsecured credit facility replaces two secured lines of credit that totaled $116.5 million.
In addition, subsequent to the second-quarter close, the firm acquired eight medical-office buildings located in New Port Richey, FL; Naperville, IL.; Temple, Killeen and Rowlett, TX; Shelbyville, TN; Jasper, GA; and Urbana, IL for a purchase price of approximately $50.9 million. As of August 14, the REIT’s portfolio has grown by approximately 97.6%, based on purchase price, from $438.6 million to $866.9 million since January 1.
To update this number even further, as GlobeSt.com tweeted on @GlobeStcom on Twitter and @GlobeStLIVE and recently reported, in July American Healthcare Investors and Griffin Capital Corp., the co-sponsors of Griffin-American Healthcare REIT II Inc., had acquired 14 medical office buildings in Florida, Texas, New Mexico, Hawaii, Indiana, Alabama, Illinois, Colorado and South Carolina for an aggregate purchase price of $106.7 million.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
