Business Context and Reporting Period
This Form 8-K is filed by Griffin-American Healthcare REIT IV, Inc. (referred to in metadata as American Healthcare REIT, Inc.) on June 12, 2017. The filing reports on the company's 2017 Annual Meeting of Stockholders held on June 13, 2017, and the acquisition of a medical office building on June 12, 2017. The registrant is classified as an emerging growth company.
Key Financial Metrics and Transactions
- Acquisition: Acquired Lawrenceville MOB for a contract purchase price of $11,275,000 plus closing costs.
- Financing: Funded via assumption of an $8,000,000 loan, cash proceeds from the initial public offering, and borrowings under revolving lines of credit with Bank of America, N.A. and KeyBank, National Association.
- Advisor Fees: Paid a base acquisition fee of approximately $254,000 (2.25% of purchase price) and accrued a contingent advisor payment of approximately $254,000.
- Distributions: Authorized a daily distribution for Class T and Class I stockholders equal to $0.001643836 per share, representing an annualized distribution of $0.60 per share.
Material Changes
The filing details the expansion of the company's portfolio through the acquisition of Lawrenceville MOB, a 31,000 square foot, two-story medical office building in Lawrenceville, Georgia. The property is 100% leased to Gwinnett Cardiology Services, L.L.C. No comparative financial data (revenue, profit, or margins) is provided in this specific filing as it is a current report rather than a periodic financial statement.
Outlook, Governance, and Risks
- Governance: Stockholders approved the election of five directors (Jeffrey T. Hanson, Ronald J. Lieberman, Brian J. Flornes, Dianne Hurley, and Wilbur H. Smith III) and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2017.
- Contingencies: A contingent advisor payment of approximately $254,000 is subject to the satisfaction of certain conditions.
- Liquidity: Distributions are payable only from legally available funds.
Investor Verification Checklist
- Verify the terms of the assumed $8,000,000 loan and the interest rates on the revolving lines of credit used to finance the acquisition.
- Confirm the specific conditions required to trigger the accrued $254,000 contingent advisor payment.
- Review the lease agreement with Gwinnett Cardiology Services, L.L.C. to understand lease duration and rent escalation clauses.
- Monitor the company's cash position to ensure sufficient legally available funds for the declared $0.60 annualized distribution.