Business Context and Reporting Period
This Form 8-K was filed by Griffin-American Healthcare REIT IV, Inc. (referred to in metadata as American Healthcare REIT, Inc.) on April 27, 2018. The registrant is an emerging growth company incorporated in Maryland. The report details a specific acquisition event rather than a standard periodic financial reporting period.
Key Financial Metrics and Transaction Details
- Acquisition Price: $11,650,000 contract purchase price plus closing costs.
- Financing: Funded via cash on hand and borrowings under a revolving line of credit with Bank of America, N.A. and KeyBank, National Association.
- Advisor Fees: A base acquisition fee of approximately $262,000 (2.25% of purchase price) was paid. An additional contingent fee of approximately $262,000 (2.25%) was accrued, subject to conditions.
- Property Metrics: The acquired asset, Surprise MOB, contains approximately 34,000 square feet of gross leasable area and is 89.5% leased.
Material Changes
The primary material change is the acquisition of Surprise MOB, a multi-tenant medical office building in Surprise, Arizona, from an unaffiliated third party, Banyan Surprise Plaza LLC. The filing does not provide comparative financial data (revenue, profit, or cash flow) for the prior period as this is a current event report.
Outlook, Risks, and Unusual Items
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard contingencies associated with the acquisition. The contingent advisor fee represents a potential future cash outflow dependent on the satisfaction of certain conditions.
Investor Verification Checklist
- Verify the specific terms and interest rates of the revolving line of credit used to finance the acquisition.
- Confirm the lease expiration dates and creditworthiness of the three current tenants (Banner Medical Group, Richard Lee Averitte, Jr., PLLC, and The Center for Orthopedic and Research Excellence, Inc.).
- Review the conditions required to trigger the payment of the accrued contingent advisor fee.
- Assess the impact of the $11.65 million purchase price on the company's overall leverage ratios and liquidity position.