Griffin-American Healthcare REIT III Announces Updated Estimated NAV
October 8, 2018 | James Sprow | Blue Vault
On October 4, 2018. Griffin-American Healthcare REIT III issued a letter to shareholders announcing an updated estimated per share net asset value of the Company’s common stock of $9.37. The REIT’s board previously determined an estimated per share NAV of the Company’s common stock of $9.27 calculated as of June 30, 2017, and $9.01 calculated as of June 30, 2016. The Company intends to publish an updated estimated per share NAV on at least an annual basis.
The estimated per share NAV was determined after consultation with Griffin-American Healthcare REIT III Advisor, LLC, the Company’s external advisor, and Robert A. Stanger & Co., Inc., an independent third-party valuation firm.
The Company’s appraised properties were valued at $8.27 per share, including a property acquired in the second quarter valued at its purchase price. The REIT’s interest in Trilogy, a healthcare real estate portfolio comprised of 124 senior housing/healthcare campuses, was valued at $3.63 per share as of June 30, 2018, up from $3.24 per share as of June 30, 2017.
As of June 30, 2018, the aggregate value of the appraised properties, the Trilogy investment, the recent acquisition and debt investments was approximately $3.44 billion compared with an aggregate initial investment, including subsequent capital expenditures, of approximately $3.08 billion.
Changes to the key assumptions used to arrive at the estimated per share NAV, including the capitalization rates and discount rates used to value the REIT’s properties, Trilogy assets, debt investments and debt liabilities, could have a significant impact on the underlying value of the Company’s shares. The range of estimated per share net asset values was from a low of $8.66 to a high of $10.18, with the concluded value at the midpoint of $9.37 per share.
Source: SEC
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