Griffin-American Healthcare REIT III Inc. and Griffin-American Healthcare REIT IV became one entity on Oct. 1, the real estate investment trust reiterated this week in its quarterly report to the Securities and Exchange Commission. The transaction created a $4.2 billion self-managed, diversified healthcare REIT now called American Healthcare REIT Inc.
“We are pleased to have completed this merger and are excited about the future prospects of American Healthcare REIT,” said Danny Prosky, CEO and president, said in an Oct. 1 statement. “As a large, diverse, and self-managed healthcare REIT, we believe we are strategically positioned to pursue a future listing or [initial public offering] on a national stock exchange that would provide liquidity to our existing stockholders and unlock greater growth and value enhancement opportunities as a publicly traded company.”
In conjunction with the merger, the previously announced acquisition of American Healthcare Investors, the co-sponsor of both REITs, was completed. Also Oct. 1, GAHR III acquired a newly formed entity, American Healthcare Opps Holdings LLC, or NewCo, which the REIT refers to as the AHI acquisition. The AHI acquisition was treated as a business combination for accounting purposes, with GAHR III as both the legal and accounting acquirer of NewCo.
American Healthcare REIT conducts substantially all operations through its operating partnership. Since the merger and the AHI acquisition, the REIT is self-managed and no longer externally advised.
The REIT operates through six business segments: integrated senior health campuses, skilled nursing facilities, senior housing — leased, senior housing operating portfolio, medical office buildings and hospitals. As of Sept. 30, the company owned and/or operated 312 buildings and integrated senior health campuses, or approximately 19.4 million square feet of gross leasable area, for an aggregate contract purchase price of $4.5 million, including the fair value of the properties acquired in the merger. In addition, as of Sept. 30, the REIT also owned a real estate-related debt investment purchased for $60.4 million.
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