Business Context and Reporting Period
This Form 8-K Current Report was filed by Griffin-American Healthcare REIT IV, Inc. on September 22, 2016. The filing discloses the acquisition of a medical office building (MOB) in Charlottesville, Virginia, utilizing cash proceeds from the company's initial public offering.
Key Financial Metrics and Transaction Details
- Acquisition Price: $20,120,000 plus closing costs.
- Financing: Funded entirely with cash proceeds from the initial public offering.
- Advisor Fees: A base acquisition fee of approximately $453,000 (2.25% of purchase price) was paid to Griffin-American Healthcare REIT IV Advisor, LLC.
- Contingent Fees: An additional contingent advisor payment of approximately $453,000 (2.25% of purchase price) has been accrued, subject to satisfaction of certain conditions.
- Property Metrics: The asset is a three-story building with approximately 74,000 square feet.
- Occupancy: 100% leased to three tenants.
Material Changes
The primary material change reported is the expansion of the company's portfolio through the acquisition of the Charlottesville MOB from an unaffiliated third party, PJP Building Five, L.C. The filing does not provide comparative financial data (revenue, profit, or cash flow) for the prior period as this is a transaction-specific report rather than a periodic financial statement.
Outlook, Risks, and Management Commentary
Management highlighted the quality of the tenants, which include Martha Jefferson Hospital, University of Virginia Physicians Group, and the United States Department of Veterans Affairs. The property provides internal medicine, neurosciences, and cardiopulmonary rehabilitation services. No specific forward-looking guidance or risk factors beyond the standard contingent fee conditions were detailed in this specific filing text.
Investor Verification Checklist
- Verify the specific conditions required to trigger the accrued contingent advisor payment of $453,000.
- Confirm the lease expiration dates and terms for the three tenants (Martha Jefferson Hospital, UVA Physicians Group, and the VA).
- Review the full press release (Exhibit 99.1) for additional details on the property's net operating income or cap rate.
- Assess the impact of the $20.12 million cash outflow on the company's remaining liquidity from the IPO.