Griffin-American Healthcare REIT III Suspends Distributions, Defers 50% of Asset Management Fees

In a June 4, 2020, letter to stockholders, Griffin-American Healthcare REIT III announced that it would be suspending distributions to shareholders following the payment of the May distributions on June 1. The REIT also announced that its co-sponsors would be deferring 50% of asset management fees for six months. The REIT’s Distribution Reinvestment Plan and Share Repurchase Plans will also be suspended. The steps taken are due to the impacts of the COVID-19 pandemic on its portfolio of healthcare real estate, including its investment in Trilogy Investors, LLC, which represents 50.4% of its total investments and operates over 7,600 skilled nursing beds across its portfolio of 118 integrated senior health campuses.

In late March the REIT took measures to prepare for the potential effects of the COVID-19 pandemic, with steps to preserve capital and strengthen its balance sheet. These steps included eliminating all unnecessary capital expenditures, reducing the distribution rate and adopting limitations on its Share Repurchase Plan. The 50% distribution reduction that was effective April 3, 2020, dropped the distribution yield at that time, based upon the original offering price, from 6.00% to 3.00%.

For the full explanation of the steps taken by the REIT, refer to the SEC filing of the Stockholder Letter at: https://www.sec.gov/Archives/edgar/data/1566912/000156691220000045/gahr38-k6420exh991.htm

Source:  SEC