NEWPORT BEACH, CA-Griffin-American Healthcare REIT II, Inc. recently disclosed its operating results for the quarter ended June 30.

“During the second quarter, Griffin-American Healthcare REIT II continued its rapid growth with the acquisition of 21 healthcare-related buildings for more than $141 million,” said Jeff Hanson, chairman and chief executive officer. “As a result of our continued expansion, funds from operations grew 232%, modified funds from operations grew 134% and net operating income grew 106% compared to the second quarter 2012. Additionally, we anticipate completing the acquisition of the previously announced £298.5 million, or approximately $447.8 million, UK Senior Housing Portfolio during the third quarter, at which point Griffin-American Healthcare REIT II would add an international presence to an already extensive national footprint, creating one of the largest and best diversified healthcare REITs in the world in terms of geography, revenue sources and asset types. ”

The UK Senior Housing Portfolio is expected to close during the third quarter of 2013, although closing is subject to receipt of regulatory approvals and other customary closing conditions and there can be no assurance that the acquisition will close or, if it does, when the closing will occur.

Second Quarter 2013 Highlights and Recent Accomplishments:

Completed the second quarter acquisition of 17 medical office buildings and four skilled nursing facilities for an aggregate purchase price of approximately $141.4 million. Since the company's change in sponsor on Jan. 7, 2012, the company's portfolio has grown approximately 255%, based on purchase price, from $439 million to $1.56 billion as of June 30.
The company's property portfolio achieved an aggregate average occupancy of 96% as of June 30 and had leverage of 17.6% (total debt divided by total assets). The portfolio's average remaining lease term was 8.7 years at the close of the quarter, based on leases in effect as of June 30.
Declared and paid daily distributions equal to an annualized rate of 6.65% to stockholders of record, based upon a $10.22 per share calculation, from April 1 to June 30.
Funds from operations, or FFO, as defined by the National Association of Real Estate Investment Trusts, or NAREIT, equaled approximately $22.4 million, compared with $6.8 million during the second quarter 2012, representing year-over-year growth of approximately 231.8%. Modified funds from operations, or MFFO, as defined by the Investment Program Association, or IPA, equaled $23.8 million, representing year-over-year growth of approximately 133.5% compared to MFFO of $10.2 million during the second quarter 2012. (Year-over-year growth in FFO and MFFO is primarily due to the acquisition of additional properties. Please see financial reconciliation tables and notes at the end of this release for more information regarding FFO and MFFO.)
Net operating income, or NOI, totaled approximately $35.2 million in the second quarter of 2013, representing an increase of approximately 106 percent over second quarter 2012 NOI of approximately $17.0 million. Net income during the quarter was $6.1 million as compared to a net loss of $1.2 million during the second quarter 2012. (Year-over-year growth in NOI is primarily due to the acquisition of additional properties. Please see financial reconciliation tables and notes at the end of this release for more information regarding NOI and net income (loss).)
In May, the company announced the expansion of its existing unsecured revolving line of credit from $200 million to $450 million. Existing lenders Bank of America, N.A., KeyBank National Association, RBS Citizens, N.A., and Comerica Bank were joined by new lenders Barclays Bank PLC, Fifth Third Bank, Wells Fargo Bank, N.A., Credit Agricole Corporate and Investment Bank and Sumitomo Mitsui Banking Corporation.
Subsequent to the close of the second quarter, the company acquired Hinsdale MOB Portfolio in the Chicago suburb of Hinsdale, Illinois for $35.5 million. The two-building portfolio totals approximately 169,000 square feet and is located less than one mile north of the Adventist Hinsdale Hospital campus and three miles northwest of the Adventist La Grange Memorial Hospital campus.
In July, the company announced that it has entered into definitive agreements to acquire a portfolio of 44 senior housing facilities located in the United Kingdom for approximately £298.5 million, or $447.8 million. The acquisition is expected to close during the third quarter of 2013, although closing is subject to receipt of regulatory approvals and other customary closing conditions and there can be no assurance that the acquisition will close or, if it does, when the closing will occur.

“Since the launch of Griffin-American Healthcare REIT II in 2009, we have consistently stated that our goal is to build a diverse portfolio of healthcare real estate and to establish one of the best REITs in the market on behalf of stockholders,” said Danny Prosky, president and chief operating officer. “We believe our results to date demonstrate that we have accomplished this goal, and we continue to exceed nearly all of our expectations for financial performance and growth.”

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Griffin-American Reports Triple-Digit Growth

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