Business Context and Reporting Period
This Form 8-K filing by Griffin-American Healthcare REIT IV, Inc. (American Healthcare REIT, Inc.) covers events occurring on June 28 and June 29, 2016. The registrant is a Maryland corporation focused on acquiring medical office buildings.
Key Financial Metrics and Transactions
- Acquisition: Acquired the Auburn MOB property for $5,450,000 plus closing costs.
- Financing: The purchase was funded using cash proceeds from the company's initial public offering.
- Advisor Fees: Paid a base acquisition fee of approximately $122,625 (2.25% of purchase price) to Griffin-American Healthcare REIT IV Advisor, LLC. An additional contingent fee of approximately $122,625 has been accrued, subject to satisfaction of certain conditions.
- Distributions: Authorized daily distributions of $0.001643836 per share for Class T and Class I common stock. Payments are aggregated and made monthly in arrears.
Material Changes
The primary material change is the expansion of the company's portfolio with the acquisition of the Auburn MOB. This single-story medical office building in Auburn, California, consists of approximately 19,000 square feet and is currently 100% leased to The Regents of the University of California for the benefit of UC Davis Medical Group.
Outlook, Risks, and Management Commentary
Management highlighted the property's stable tenant profile, with medical services including family medicine, internal medicine, pediatrics, cardiology, obstetrics/gynecology, and orthopaedics. The filing notes that distributions to Class I stockholders will be paid only from legally available funds. No specific forward-looking guidance or risk factors beyond standard operational contingencies were detailed in this specific report.
Investor Verification Checklist
- Verify the exact closing costs associated with the $5,450,000 purchase price of Auburn MOB.
- Confirm the specific conditions required to trigger the accrued contingent advisor fee of $122,625.
- Review the lease agreement terms with The Regents of the University of California to understand duration and renewal options.
- Monitor the timing of the first distribution payments for Class T and Class I stockholders as scheduled for August and July 2016, respectively.