IRVINE, CA—Griffin-American Healthcare REIT IIhas reported a strong first quarter with $105 million inacquisitions, portfolio growth to $2.9 billion based on purchaseprice, FFO growth of 115%, modified funds from operations up 94%,NOI increasing 88% and net income up 83%. Executives for the REITconsider the first-quarter results to be very successful.


“During the first quarter, Griffin-American Healthcare REIT IIbuilt on the tremendous success it enjoyed in 2013, during which weconcluded our capital formation with more than $2.8 billion intotal equity raised and expanded our nearly $3-billion portfolio(based on aggregate acquisition price) internationally with theacquisition of a premier portfolio of senior housing in the UnitedKingdom,” says Jeff Hanson, chairmanand CEO for the REIT.


President and COO Dan Prosky adds, “We continueto enjoy accretive growth and to add significant value toGriffin-American Healthcare REIT II. We have matured to become oneof the largest healthcare REITs in the country and continue toperform exceptionally well, with occupancy in excess of 95%,average remaining lease term of more than nine years—both excludingproperties operated utilizing a RIDEA structure—and exceptionallylow debt of just 15.7% as a percentage of aggregate portfoliopurchase price.”


The REIT's acquisitions continued into the second quarter.Subsequent to the close of the first quarter, the company acquiredHumble Medical Office Building, an approximately46,000-square-foot medical office building in the Houston suburb ofHumble, TX, for $13.7 million.


As Hanson told in January, the need andopportunity for healthcare-related business continues to grow asBaby Boomers enter the senior category in droves.In fact, the consolidation of smaller practices into largerones and the tremendous growthof Griffin-American Healthcare REIT IIin December 2013 andthroughout last year are testament to the fact thathealthcare real estate consolidation has yet toreach its peak. He added that consolidation could take decades tocomplete.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on 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.