Health REIT Picks Up $672M in Q3 Assets

NEWPORT BEACH, CA-Griffin-American Healthcare REIT II Inc. has expanded its portfolio to $2.23 billion and acquired $672 million of new assets during third-quarter 2013, the firm reports. As a result, the REIT has become one of the largest and best-diversified healthcare REITs in the country, according to chairman and CEO Jeff Hanson.

The firm's portfolio now spans 30 states and two nations. “Importantly, we've driven this robust growth while ending the quarter with just 11% total debt financing,” says Hanson.

According to Danny Prosky, president and COO of the REIT, “In addition to our ongoing portfolio growth, we continued to enjoy strong financial and property-level performance during the third quarter. Funds from operations, modified funds from operations and net operating income all grew substantially, while our average aggregate occupancy reached 96.1% and our average remaining lease term expanded to nearly 10 years.”

Also, the REIT concluded its follow-on public offering, raising more than $1 billion and during the third quarter and in excess of $2.8 billion in total gross offering proceeds since the launch of its initial public offering in late 2009. “With the close of our equity offering, we are proud to report that the executives and employees of American Healthcare Investors and Griffin Capital Corp., the co-sponsors of Griffin-American Healthcare REIT II, have purchased more than $15 million of common stock in our REIT,” adds Prosky. “As we've long maintained, we believe the managers of an investment program should be significant investors in that program, and we are proud to be standing shoulder to shoulder with our fellow stockholders.”

Among the REIT's third-quarter highlights are:

• completing the acquisition of 11 medical-office buildings, 44 senior housing facilities and one long-term acute-care hospital;
• expanding its international reach through the acquisition of a $472-million portfolio of senior-housing facilities in the UK;
• raising approximately $1.04 billion in equity through the sale of common stock through its follow-on offering, which was terminated subsequent to the close of the quarter;
• declaring and paying daily distributions equal to an annualized rate of 6.65% to stockholders of record, based upon a $10.22 per-share calculation, from July 1 to September 30.