IRVINE, CA—Griffin-American Healthcare REIT II has reported a strong first quarter with $105 million in acquisitions, portfolio growth to $2.9 billion based on purchase price, FFO growth of 115%, modified funds from operations up 94%, NOI increasing 88% and net income up 83%. Executives for the REIT consider the first-quarter results to be very successful.
“During the first quarter, Griffin-American Healthcare REIT II built on the tremendous success it enjoyed in 2013, during which we concluded our capital formation with more than $2.8 billion in total equity raised and expanded our nearly $3-billion portfolio (based on aggregate acquisition price) internationally with the acquisition of a premier portfolio of senior housing in the United Kingdom,” says Jeff Hanson, chairman and CEO for the REIT.
President and COO Dan Prosky adds, “We continue to enjoy accretive growth and to add significant value to Griffin-American Healthcare REIT II. We have matured to become one of the largest healthcare REITs in the country and continue to perform exceptionally well, with occupancy in excess of 95%, average remaining lease term of more than nine years—both excluding properties operated utilizing a RIDEA structure—and exceptionally low debt of just 15.7% as a percentage of aggregate portfolio purchase price.”
The REIT’s acquisitions continued into the second quarter. Subsequent to the close of the first quarter, the company acquired Humble Medical Office Building, an approximately 46,000-square-foot medical office building in the Houston suburb of Humble, TX, for $13.7 million.
As Hanson told GlobeSt.com in January, the need and opportunity for healthcare-related business continues to grow as Baby Boomers enter the senior category in droves. In fact, the consolidation of smaller practices into larger ones and the tremendous growth of Griffin-American Healthcare REIT IIin December 2013 and throughout last year are testament to the fact that healthcare real estate consolidation has yet to reach its peak. He added that consolidation could take decades to complete.