|
|
|
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended
September 30, 2017
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to
|
Maryland
|
|
47-2887436
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
18191 Von Karman Avenue, Suite 300,
Irvine, California
|
|
92612
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
|
Non-accelerated filer
|
x
|
Smaller reporting company
|
o
|
|
|
|
Emerging growth company
|
x
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
(1)
|
Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of September 30, 2017 and December 31, 2016 represented liabilities of Griffin-American Healthcare REIT IV Holdings, LP, a variable interest entity and consolidated subsidiary of Griffin-American Healthcare REIT IV, Inc. The creditors of Griffin-American Healthcare REIT IV Holdings, LP do not have recourse against Griffin-American Healthcare REIT IV, Inc., except for the Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of
$26,000,000
and
$33,900,000
as of September 30, 2017 and December 31, 2016, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Real estate revenue
|
$
|
8,488,000
|
|
|
$
|
312,000
|
|
|
$
|
18,738,000
|
|
|
$
|
338,000
|
|
Expenses:
|
|
|
|
|
|
|
|
||||||||
Rental expenses
|
2,095,000
|
|
|
98,000
|
|
|
4,893,000
|
|
|
121,000
|
|
||||
General and administrative
|
1,296,000
|
|
|
329,000
|
|
|
2,996,000
|
|
|
725,000
|
|
||||
Acquisition related expenses
|
121,000
|
|
|
1,857,000
|
|
|
334,000
|
|
|
2,227,000
|
|
||||
Depreciation and amortization
|
3,442,000
|
|
|
64,000
|
|
|
7,619,000
|
|
|
64,000
|
|
||||
Total expenses
|
6,954,000
|
|
|
2,348,000
|
|
|
15,842,000
|
|
|
3,137,000
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense (including amortization of deferred financing costs and debt premium)
|
(780,000
|
)
|
|
(56,000
|
)
|
|
(1,607,000
|
)
|
|
(56,000
|
)
|
||||
Interest income
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
||||
Net income (loss)
|
754,000
|
|
|
(2,092,000
|
)
|
|
1,290,000
|
|
|
(2,855,000
|
)
|
||||
Less: net income (loss) attributable to redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income (loss) attributable to controlling interest
|
$
|
754,000
|
|
|
$
|
(2,092,000
|
)
|
|
$
|
1,290,000
|
|
|
$
|
(2,855,000
|
)
|
Net income (loss) per Class T and Class I common share attributable to controlling interest — basic and diluted
|
$
|
0.02
|
|
|
$
|
(0.62
|
)
|
|
$
|
0.05
|
|
|
$
|
(2.12
|
)
|
Weighted average number of Class T and Class I common shares outstanding — basic and diluted
|
32,593,321
|
|
|
3,357,979
|
|
|
23,827,175
|
|
|
1,345,578
|
|
||||
Distributions declared per Class T and Class I common share
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.45
|
|
|
$
|
0.25
|
|
|
Class T and Class I Common Stock
|
|
|
|
|
|
|
|||||||||||
|
Number
of Shares
|
|
Amount
|
|
Additional
Paid-In Capital
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
|||||||||
BALANCE — December 31, 2016
|
11,377,439
|
|
|
$
|
114,000
|
|
|
$
|
99,492,000
|
|
|
$
|
(7,351,000
|
)
|
|
$
|
92,255,000
|
|
Issuance of common stock
|
24,264,521
|
|
|
242,000
|
|
|
241,193,000
|
|
|
—
|
|
|
241,435,000
|
|
||||
Offering costs — common stock
|
—
|
|
|
—
|
|
|
(23,544,000
|
)
|
|
—
|
|
|
(23,544,000
|
)
|
||||
Issuance of common stock under the DRIP
|
584,318
|
|
|
6,000
|
|
|
5,486,000
|
|
|
—
|
|
|
5,492,000
|
|
||||
Issuance of vested and nonvested restricted common stock
|
22,500
|
|
|
—
|
|
|
45,000
|
|
|
—
|
|
|
45,000
|
|
||||
Amortization of nonvested common stock compensation
|
—
|
|
|
—
|
|
|
55,000
|
|
|
—
|
|
|
55,000
|
|
||||
Repurchase of common stock
|
(18,383
|
)
|
|
—
|
|
|
(178,000
|
)
|
|
—
|
|
|
(178,000
|
)
|
||||
Distributions declared
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,705,000
|
)
|
|
(10,705,000
|
)
|
||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,290,000
|
|
|
1,290,000
|
|
||||
BALANCE — September 30, 2017
|
36,230,395
|
|
|
$
|
362,000
|
|
|
$
|
322,549,000
|
|
|
$
|
(16,766,000
|
)
|
|
$
|
306,145,000
|
|
|
Stockholders’ Equity
|
|
|
|
|
|||||||||||||||||||||
|
Class T and Class I Common Stock
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Number
of Shares
|
|
Amount
|
|
Additional
Paid-In Capital
|
|
Accumulated
Deficit
|
|
Total
Stockholders’
Equity
|
|
Noncontrolling
Interest
|
|
Total Equity
|
|||||||||||||
BALANCE — December 31, 2015
|
20,833
|
|
|
$
|
—
|
|
|
$
|
200,000
|
|
|
$
|
—
|
|
|
$
|
200,000
|
|
|
$
|
2,000
|
|
|
$
|
202,000
|
|
Issuance of common stock
|
5,374,861
|
|
|
54,000
|
|
|
53,449,000
|
|
|
—
|
|
|
53,503,000
|
|
|
—
|
|
|
53,503,000
|
|
||||||
Offering costs — common stock
|
—
|
|
|
—
|
|
|
(7,584,000
|
)
|
|
—
|
|
|
(7,584,000
|
)
|
|
—
|
|
|
(7,584,000
|
)
|
||||||
Issuance of common stock under the DRIP
|
23,379
|
|
|
—
|
|
|
222,000
|
|
|
—
|
|
|
222,000
|
|
|
—
|
|
|
222,000
|
|
||||||
Issuance of vested and nonvested restricted common stock
|
15,000
|
|
|
—
|
|
|
30,000
|
|
|
—
|
|
|
30,000
|
|
|
—
|
|
|
30,000
|
|
||||||
Amortization of nonvested common stock compensation
|
—
|
|
|
—
|
|
|
36,000
|
|
|
—
|
|
|
36,000
|
|
|
—
|
|
|
36,000
|
|
||||||
Reclassification of noncontrolling interest to mezzanine equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
|
(2,000
|
)
|
||||||
Distributions declared
|
—
|
|
|
—
|
|
|
—
|
|
|
(598,000
|
)
|
|
(598,000
|
)
|
|
—
|
|
|
(598,000
|
)
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,855,000
|
)
|
|
(2,855,000
|
)
|
|
—
|
|
|
(2,855,000
|
)
|
||||||
BALANCE — September 30, 2016
|
5,434,073
|
|
|
$
|
54,000
|
|
|
$
|
46,353,000
|
|
|
$
|
(3,453,000
|
)
|
|
$
|
42,954,000
|
|
|
$
|
—
|
|
|
$
|
42,954,000
|
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income (loss)
|
$
|
1,290,000
|
|
|
$
|
(2,855,000
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
7,619,000
|
|
|
64,000
|
|
||
Other amortization (including deferred financing costs, above/below-market leases, leasehold interests, above-market leasehold interests and debt premium)
|
251,000
|
|
|
27,000
|
|
||
Deferred rent
|
(1,124,000
|
)
|
|
(33,000
|
)
|
||
Stock based compensation
|
100,000
|
|
|
66,000
|
|
||
Share discounts
|
3,000
|
|
|
49,000
|
|
||
Bad debt expense
|
94,000
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts and other receivables
|
(362,000
|
)
|
|
(80,000
|
)
|
||
Other assets
|
(305,000
|
)
|
|
(105,000
|
)
|
||
Accounts payable and accrued liabilities
|
1,394,000
|
|
|
449,000
|
|
||
Accounts payable due to affiliates
|
169,000
|
|
|
33,000
|
|
||
Security deposits, prepaid rent and other liabilities
|
(280,000
|
)
|
|
(6,000
|
)
|
||
Net cash provided by (used in) operating activities
|
8,849,000
|
|
|
(2,391,000
|
)
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Acquisition of real estate investments
|
(215,738,000
|
)
|
|
(55,619,000
|
)
|
||
Capital expenditures
|
(845,000
|
)
|
|
(18,000
|
)
|
||
Restricted cash
|
(16,000
|
)
|
|
—
|
|
||
Real estate deposits
|
(4,821,000
|
)
|
|
(1,000,000
|
)
|
||
Pre-acquisition expenses
|
(698,000
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(222,118,000
|
)
|
|
(56,637,000
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Payments on mortgage loan payable
|
(189,000
|
)
|
|
(19,000
|
)
|
||
Borrowings under the Line of Credit
|
192,600,000
|
|
|
12,000,000
|
|
||
Payments on the Line of Credit
|
(200,500,000
|
)
|
|
—
|
|
||
Proceeds from issuance of common stock
|
241,647,000
|
|
|
52,484,000
|
|
||
Deferred financing costs
|
(175,000
|
)
|
|
(1,027,000
|
)
|
||
Repurchase of common stock
|
(178,000
|
)
|
|
—
|
|
||
Payment of offering costs
|
(13,673,000
|
)
|
|
(1,889,000
|
)
|
||
Security deposits
|
(97,000
|
)
|
|
—
|
|
||
Distributions paid
|
(4,006,000
|
)
|
|
(148,000
|
)
|
||
Net cash provided by financing activities
|
215,429,000
|
|
|
61,401,000
|
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
2,160,000
|
|
|
2,373,000
|
|
||
CASH AND CASH EQUIVALENTS — Beginning of period
|
2,237,000
|
|
|
202,000
|
|
||
CASH AND CASH EQUIVALENTS — End of period
|
$
|
4,397,000
|
|
|
$
|
2,575,000
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
||||
Cash paid for:
|
|
|
|
||||
Interest
|
$
|
1,356,000
|
|
|
$
|
1,000
|
|
Income taxes
|
$
|
7,000
|
|
|
$
|
—
|
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
|
|
|
|
||||
Investing Activities:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
931,000
|
|
|
$
|
—
|
|
Accrued pre-acquisition expenses
|
$
|
601,000
|
|
|
$
|
—
|
|
The following represents the increase in certain assets and liabilities in connection with our acquisitions of real estate investments:
|
|
|
|
||||
Other assets
|
$
|
213,000
|
|
|
$
|
144,000
|
|
Mortgage loans payable
|
$
|
8,000,000
|
|
|
$
|
3,968,000
|
|
Accounts payable and accrued liabilities
|
$
|
803,000
|
|
|
$
|
75,000
|
|
Security deposits and prepaid rent
|
$
|
545,000
|
|
|
$
|
106,000
|
|
Financing Activities:
|
|
|
|
||||
Issuance of common stock under the DRIP
|
$
|
5,492,000
|
|
|
$
|
222,000
|
|
Distributions declared but not paid
|
$
|
1,739,000
|
|
|
$
|
228,000
|
|
Accrued Contingent Advisor Payment
|
$
|
7,759,000
|
|
|
$
|
3,802,000
|
|
Accrued stockholder servicing fee
|
$
|
11,496,000
|
|
|
$
|
1,847,000
|
|
Reclassification of noncontrolling interest to mezzanine equity
|
$
|
—
|
|
|
$
|
2,000
|
|
Accrued deferred financing costs
|
$
|
22,000
|
|
|
$
|
72,000
|
|
Receivable from transfer agent
|
$
|
807,000
|
|
|
$
|
926,000
|
|
|
September 30,
2017
|
|
December 31,
2016
|
||||
Building and improvements
|
$
|
285,481,000
|
|
|
$
|
106,442,000
|
|
Land
|
39,386,000
|
|
|
12,322,000
|
|
||
|
324,867,000
|
|
|
118,764,000
|
|
||
Less: accumulated depreciation
|
(5,925,000
|
)
|
|
(822,000
|
)
|
||
|
$
|
318,942,000
|
|
|
$
|
117,942,000
|
|
Acquisition(1)
|
|
Location
|
|
Type
|
|
Date Acquired
|
|
Contract Purchase Price
|
|
Mortgage Loan Payable(2)
|
|
Line of Credit(3)
|
|
Total Acquisition Fee(4)
|
||||||||
Battle Creek MOB
|
|
Battle Creek, MI
|
|
Medical Office
|
|
03/10/17
|
|
$
|
7,300,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
328,000
|
|
Reno MOB
|
|
Reno, NV
|
|
Medical Office
|
|
03/13/17
|
|
66,250,000
|
|
|
—
|
|
|
60,000,000
|
|
|
2,982,000
|
|
||||
Athens MOB Portfolio
|
|
Athens, GA
|
|
Medical Office
|
|
05/18/17
|
|
16,800,000
|
|
|
—
|
|
|
7,800,000
|
|
|
756,000
|
|
||||
SW Illinois Senior Housing Portfolio
|
|
Columbia, Millstadt, Red Bud and Waterloo, IL
|
|
Senior Housing
|
|
05/22/17
|
|
31,800,000
|
|
|
—
|
|
|
31,700,000
|
|
|
1,431,000
|
|
||||
Lawrenceville MOB
|
|
Lawrenceville, GA
|
|
Medical Office
|
|
06/12/17
|
|
11,275,000
|
|
|
8,000,000
|
|
|
3,000,000
|
|
|
507,000
|
|
||||
Northern California Senior Housing Portfolio
|
|
Belmont, Fairfield, Menlo Park and Sacramento, CA
|
|
Senior Housing
|
|
06/28/17
|
|
45,800,000
|
|
|
—
|
|
|
21,600,000
|
|
|
2,061,000
|
|
||||
Roseburg MOB
|
|
Roseburg, OR
|
|
Medical Office
|
|
06/29/17
|
|
23,200,000
|
|
|
—
|
|
|
23,000,000
|
|
|
1,044,000
|
|
||||
Fairfield County MOB Portfolio
|
|
Stratford and Trumbull, CT
|
|
Medical Office
|
|
09/29/17
|
|
15,395,000
|
|
|
—
|
|
|
15,500,000
|
|
|
693,000
|
|
||||
Total
|
|
|
|
|
|
|
|
$
|
217,820,000
|
|
|
$
|
8,000,000
|
|
|
$
|
162,600,000
|
|
|
$
|
9,802,000
|
|
(1)
|
We own
100%
of our properties acquired in 2017.
|
(2)
|
Represents the principal balance of the mortgage loan payable assumed by us at the time of acquisition.
|
(3)
|
Represents a borrowing under the Line of Credit, as defined in
Note 7, Line of Credit
, at the time of acquisition.
|
(4)
|
Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our properties, a base acquisition fee of
2.25%
of the aggregate contract purchase price upon the closing of the acquisition. In addition, the total acquisition fee includes a Contingent Advisor Payment, as defined in
Note 12, Related Party Transactions
, in the amount of
2.25%
of the aggregate contract purchase price of the property acquired, which shall be paid by us to our advisor, subject to the satisfaction of certain conditions.
See Note 12, Related Party Transactions
— Acquisition and Development Stage — Acquisition Fee, for a further discussion.
|
|
|
2017
Acquisitions
|
||
Building and improvements
|
|
$
|
177,270,000
|
|
Land
|
|
27,064,000
|
|
|
In-place leases
|
|
20,518,000
|
|
|
Above-market leases
|
|
127,000
|
|
|
Total assets acquired
|
|
224,979,000
|
|
|
Mortgage loan payable
|
|
(8,000,000
|
)
|
|
Below-market leases
|
|
(571,000
|
)
|
|
Above-market leasehold interests
|
|
(395,000
|
)
|
|
Total liabilities assumed
|
|
(8,966,000
|
)
|
|
Net assets acquired
|
|
$
|
216,013,000
|
|
|
September 30,
2017
|
|
December 31,
2016
|
||||
In-place leases, net of accumulated amortization of $2,936,000 and $430,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 9.3 years and 8.1 years as of September 30, 2017 and December 31, 2016, respectively)
|
$
|
30,517,000
|
|
|
$
|
12,504,000
|
|
Leasehold interests, net of accumulated amortization of $95,000 and $22,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 70.8 years and 71.5 years as of September 30, 2017 and December 31, 2016, respectively)
|
6,317,000
|
|
|
6,390,000
|
|
||
Above-market leases, net of accumulated amortization of $135,000 and $31,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 5.8 years and 6.3 years as of September 30, 2017 and December 31, 2016, respectively)
|
801,000
|
|
|
779,000
|
|
||
|
$
|
37,635,000
|
|
|
$
|
19,673,000
|
|
Year
|
|
Amount
|
||
2017
|
|
$
|
1,310,000
|
|
2018
|
|
4,863,000
|
|
|
2019
|
|
4,400,000
|
|
|
2020
|
|
3,862,000
|
|
|
2021
|
|
3,466,000
|
|
|
Thereafter
|
|
19,734,000
|
|
|
|
|
$
|
37,635,000
|
|
|
September 30,
2017
|
|
December 31,
2016
|
||||
Prepaid expenses and deposits
|
$
|
1,968,000
|
|
|
$
|
257,000
|
|
Deferred rent receivables
|
1,330,000
|
|
|
207,000
|
|
||
Deferred financing costs, net of accumulated amortization of $379,000 and $112,000 as of September 30, 2017 and December 31, 2016, respectively(1)
|
710,000
|
|
|
943,000
|
|
||
Lease commissions, net of accumulated amortization of $3,000 and $0 as of September 30, 2017 and December 31, 2016, respectively
|
134,000
|
|
|
—
|
|
||
|
$
|
4,142,000
|
|
|
$
|
1,407,000
|
|
(1)
|
In accordance with ASU 2015-03,
Simplifying the Presentation of Debt Issuance Costs,
or ASU 2015-03, and ASU 2015-15,
Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,
or ASU 2015-15, deferred financing costs only include costs related to the Line of Credit, as defined in
Note 7, Line of Credit
.
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Beginning balance
|
$
|
3,965,000
|
|
|
$
|
—
|
|
Additions:
|
|
|
|
||||
Assumptions of mortgage loans payable
|
8,000,000
|
|
|
3,968,000
|
|
||
Amortization of deferred financing costs(1)
|
23,000
|
|
|
—
|
|
||
Deductions:
|
|
|
|
||||
Deferred financing costs(1)
|
(151,000
|
)
|
|
(102,000
|
)
|
||
Scheduled principal payments on mortgage loan payable
|
(189,000
|
)
|
|
(19,000
|
)
|
||
Amortization of premium on mortgage loan payable
|
(9,000
|
)
|
|
—
|
|
||
Ending balance
|
$
|
11,639,000
|
|
|
$
|
3,847,000
|
|
(1)
|
In accordance with ASU 2015-03 and ASU 2015-15, deferred financing costs only include costs related to our mortgage loans payable.
|
Year
|
|
Amount
|
||
2017
|
|
$
|
84,000
|
|
2018
|
|
386,000
|
|
|
2019
|
|
407,000
|
|
|
2020
|
|
8,035,000
|
|
|
2021
|
|
314,000
|
|
|
Thereafter
|
|
2,492,000
|
|
|
|
|
$
|
11,718,000
|
|
|
September 30,
2017
|
|
December 31,
2016
|
||||
Below-market leases, net of accumulated amortization of $263,000 and $60,000 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 6.6 years and 5.4 years as of September 30, 2017 and December 31, 2016, respectively)
|
$
|
1,431,000
|
|
|
$
|
1,063,000
|
|
Above-market leasehold interests, net of accumulated amortization of $4,000 and $0 as of September 30, 2017 and December 31, 2016, respectively (with a weighted average remaining life of 52.4 years and 0 years as of September 30, 2017 and December 31, 2016, respectively)
|
391,000
|
|
|
—
|
|
||
|
$
|
1,822,000
|
|
|
$
|
1,063,000
|
|
Year
|
|
Amount
|
||
2017
|
|
$
|
85,000
|
|
2018
|
|
338,000
|
|
|
2019
|
|
310,000
|
|
|
2020
|
|
147,000
|
|
|
2021
|
|
125,000
|
|
|
Thereafter
|
|
817,000
|
|
|
|
|
$
|
1,822,000
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Beginning balance
|
|
$
|
2,000
|
|
|
$
|
—
|
|
Reclassification from equity
|
|
—
|
|
|
2,000
|
|
||
Net income (loss) attributable to redeemable noncontrolling interest
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
$
|
2,000
|
|
|
$
|
2,000
|
|
|
Number of Nonvested
Shares of Our
Restricted Common Stock
|
|
Weighted
Average Grant
Date Fair Value
|
|||
Balance — December 31, 2016
|
12,000
|
|
|
$
|
10.00
|
|
Granted
|
22,500
|
|
|
$
|
10.00
|
|
Vested
|
(7,500
|
)
|
|
$
|
10.00
|
|
Forfeited
|
—
|
|
|
$
|
—
|
|
Balance — September 30, 2017
|
27,000
|
|
|
$
|
10.00
|
|
Expected to vest — September 30, 2017
|
27,000
|
|
|
$
|
10.00
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Officer’s Name
|
|
Title
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
||||||||||||
Jeffrey T. Hanson
|
|
Chief Executive Officer and Chairman of the Board of Directors
|
|
$
|
70,000
|
|
|
7,553
|
|
|
$
|
64,000
|
|
|
6,653
|
|
|
$
|
193,000
|
|
|
20,910
|
|
|
$
|
115,000
|
|
|
11,936
|
|
Danny Prosky
|
|
President and Chief Operating Officer
|
|
72,000
|
|
|
7,825
|
|
|
72,000
|
|
|
7,463
|
|
|
199,000
|
|
|
21,571
|
|
|
133,000
|
|
|
13,810
|
|
||||
Mathieu B. Streiff
|
|
Executive Vice President and General Counsel
|
|
67,000
|
|
|
7,293
|
|
|
69,000
|
|
|
7,194
|
|
|
194,000
|
|
|
21,065
|
|
|
127,000
|
|
|
13,259
|
|
||||
Stefan K.L. Oh
|
|
Executive Vice President of Acquisitions
|
|
8,000
|
|
|
857
|
|
|
8,000
|
|
|
875
|
|
|
24,000
|
|
|
2,558
|
|
|
15,000
|
|
|
1,605
|
|
||||
Christopher M. Belford
|
|
Vice President of Asset Management
|
|
6,000
|
|
|
653
|
|
|
6,000
|
|
|
642
|
|
|
59,000
|
|
|
6,361
|
|
|
11,000
|
|
|
1,194
|
|
||||
Wendie Newman
|
|
Vice President of Asset Management
|
|
2,000
|
|
|
221
|
|
|
—
|
|
|
—
|
|
|
6,000
|
|
|
607
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
$
|
225,000
|
|
|
24,402
|
|
|
$
|
219,000
|
|
|
22,827
|
|
|
$
|
675,000
|
|
|
73,072
|
|
|
$
|
401,000
|
|
|
41,804
|
|
Fee
|
|
September 30,
2017
|
|
December 31,
2016
|
||||
Contingent Advisor Payment
|
|
$
|
7,759,000
|
|
|
$
|
5,404,000
|
|
Asset management fees
|
|
237,000
|
|
|
83,000
|
|
||
Property management fees
|
|
37,000
|
|
|
24,000
|
|
||
Operating expenses
|
|
22,000
|
|
|
20,000
|
|
||
Lease commissions
|
|
10,000
|
|
|
—
|
|
||
|
|
$
|
8,065,000
|
|
|
$
|
5,531,000
|
|
Acquisition
|
|
Revenue
|
|
Net Income
|
||||
Auburn MOB
|
|
$
|
239,000
|
|
|
$
|
74,000
|
|
Pottsville MOB
|
|
$
|
42,000
|
|
|
$
|
33,000
|
|
Charlottesville MOB
|
|
$
|
47,000
|
|
|
$
|
37,000
|
|
Rochester Hills MOB
|
|
$
|
6,000
|
|
|
$
|
4,000
|
|
Cullman MOB III
|
|
$
|
4,000
|
|
|
$
|
4,000
|
|
|
Auburn MOB
|
|
Pottsville MOB
|
|
Charlottesville MOB
|
|
Rochester Hills MOB
|
|
Cullman MOB III
|
||||||||||
Building and improvements
|
$
|
4,600,000
|
|
|
$
|
7,050,000
|
|
|
$
|
13,330,000
|
|
|
$
|
5,640,000
|
|
|
$
|
13,989,000
|
|
Land
|
406,000
|
|
|
1,493,000
|
|
|
4,768,000
|
|
|
1,702,000
|
|
|
—
|
|
|||||
In-place leases
|
386,000
|
|
|
740,000
|
|
|
2,030,000
|
|
|
1,073,000
|
|
|
1,249,000
|
|
|||||
Leasehold interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,412,000
|
|
|||||
Total assets acquired
|
5,392,000
|
|
|
9,283,000
|
|
|
20,128,000
|
|
|
8,415,000
|
|
|
16,650,000
|
|
|||||
Mortgage loan payable
|
—
|
|
|
—
|
|
|
—
|
|
|
3,968,000
|
|
|
—
|
|
|||||
Below-market leases
|
—
|
|
|
133,000
|
|
|
—
|
|
|
115,000
|
|
|
—
|
|
|||||
Total liabilities assumed
|
—
|
|
|
133,000
|
|
|
—
|
|
|
4,083,000
|
|
|
—
|
|
|||||
Net assets acquired
|
$
|
5,392,000
|
|
|
$
|
9,150,000
|
|
|
$
|
20,128,000
|
|
|
$
|
4,332,000
|
|
|
$
|
16,650,000
|
|
|
Three Months Ended
September 30, 2016
|
|
Nine Months Ended
September 30, 2016
|
||||
|
|
||||||
Revenue
|
$
|
1,632,000
|
|
|
$
|
4,849,000
|
|
Net income
|
$
|
45,000
|
|
|
$
|
536,000
|
|
Net income attributable to controlling interest
|
$
|
45,000
|
|
|
$
|
536,000
|
|
Net income per Class T and Class I common share attributable to controlling interest — basic and diluted
|
$
|
—
|
|
|
$
|
0.07
|
|
|
|
Medical Office Buildings
|
|
Senior Housing
|
|
Three Months Ended
September 30, 2017 |
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Real estate revenue
|
|
$
|
6,330,000
|
|
|
$
|
2,158,000
|
|
|
$
|
8,488,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
Rental expenses
|
|
1,857,000
|
|
|
238,000
|
|
|
2,095,000
|
|
|||
Segment net operating income
|
|
$
|
4,473,000
|
|
|
$
|
1,920,000
|
|
|
$
|
6,393,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
General and administrative
|
|
|
|
|
|
$
|
1,296,000
|
|
||||
Acquisition related expenses
|
|
|
|
|
|
121,000
|
|
|||||
Depreciation and amortization
|
|
|
|
|
|
3,442,000
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
||||||
Interest expense (including amortization of deferred financing costs and debt premium)
|
|
|
|
|
|
(780,000
|
)
|
|||||
Net income
|
|
|
|
|
|
$
|
754,000
|
|
|
|
Medical Office Buildings
|
|
Senior Housing
|
|
Three Months Ended
September 30, 2016 |
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Real estate revenue
|
|
$
|
312,000
|
|
|
$
|
—
|
|
|
$
|
312,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
Rental expenses
|
|
98,000
|
|
|
—
|
|
|
98,000
|
|
|||
Segment net operating income
|
|
$
|
214,000
|
|
|
$
|
—
|
|
|
$
|
214,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
General and administrative
|
|
|
|
|
|
$
|
329,000
|
|
||||
Acquisition related expenses
|
|
|
|
|
|
1,857,000
|
|
|||||
Depreciation and amortization
|
|
|
|
|
|
64,000
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
||||||
Interest expense (including amortization of deferred financing costs)
|
|
|
|
|
|
(56,000
|
)
|
|||||
Net loss
|
|
|
|
|
|
$
|
(2,092,000
|
)
|
|
|
Medical Office Buildings
|
|
Senior Housing
|
|
Nine Months Ended
September 30, 2017
|
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Real estate revenue
|
|
$
|
15,456,000
|
|
|
$
|
3,282,000
|
|
|
$
|
18,738,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
Rental expenses
|
|
4,543,000
|
|
|
350,000
|
|
|
4,893,000
|
|
|||
Segment net operating income
|
|
$
|
10,913,000
|
|
|
$
|
2,932,000
|
|
|
$
|
13,845,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
General and administrative
|
|
|
|
|
|
$
|
2,996,000
|
|
||||
Acquisition related expenses
|
|
|
|
|
|
334,000
|
|
|||||
Depreciation and amortization
|
|
|
|
|
|
7,619,000
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
||||||
Interest expense (including amortization of deferred financing costs and debt premium)
|
|
|
|
|
|
(1,607,000
|
)
|
|||||
Interest income
|
|
|
|
|
|
1,000
|
|
|||||
Net income
|
|
|
|
|
|
$
|
1,290,000
|
|
|
|
Medical Office Buildings
|
|
Senior Housing
|
|
Nine Months Ended
September 30, 2016
|
||||||
Revenue:
|
|
|
|
|
|
|
||||||
Real estate revenue
|
|
$
|
338,000
|
|
|
$
|
—
|
|
|
$
|
338,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
Rental expenses
|
|
121,000
|
|
|
—
|
|
|
121,000
|
|
|||
Segment net operating income
|
|
$
|
217,000
|
|
|
$
|
—
|
|
|
$
|
217,000
|
|
Expenses:
|
|
|
|
|
|
|
||||||
General and administrative
|
|
|
|
|
|
$
|
725,000
|
|
||||
Acquisition related expenses
|
|
|
|
|
|
2,227,000
|
|
|||||
Depreciation and amortization
|
|
|
|
|
|
64,000
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
||||||
Interest expense (including amortization of deferred financing costs)
|
|
|
|
|
|
(56,000
|
)
|
|||||
Net loss
|
|
|
|
|
|
$
|
(2,855,000
|
)
|
|
September 30,
2017
|
|
December 31,
2016
|
||||
Medical office buildings
|
$
|
263,970,000
|
|
|
$
|
123,223,000
|
|
Senior housing
|
98,836,000
|
|
|
16,758,000
|
|
||
Other
|
8,706,000
|
|
|
2,777,000
|
|
||
Total assets
|
$
|
371,512,000
|
|
|
$
|
142,758,000
|
|
Tenant
|
|
Annualized
Base Rent(1) |
|
Percentage of
Annualized Base Rent
|
|
Acquisition
|
|
Reportable Segment
|
|
GLA
(Sq Ft) |
|
Lease Expiration
Date |
|||
Colonial Oaks Master Tenant, LLC
|
|
$
|
4,108,000
|
|
|
15.1%
|
|
Lafayette Assisted Living Portfolio and Northern California Senior Housing Portfolio
|
|
Senior Housing
|
|
215,000
|
|
|
06/30/32
|
Prime Healthcare Services – Reno
|
|
$
|
3,817,000
|
|
|
14.0%
|
|
Reno MOB
|
|
Medical Office
|
|
146,000
|
|
|
Multiple
|
(1)
|
Annualized base rent is based on contractual base rent from the leases in effect as of
September 30, 2017
. The loss of these tenants or their inability to pay rent could have a material adverse effect on our business and results of operations.
|
Acquisition(1)
|
|
Location
|
|
Type
|
|
Date Acquired
|
|
Contract Purchase Price
|
|
Line of Credit(2)
|
|
Total Acquisition Fee(3)
|
||||||
Central Florida Senior Housing Portfolio
|
|
Bradenton, Brooksville, Lake Placid, Lakeland, Pinellas Park, Sanford, Spring Hill and Winter Haven, FL
|
|
Senior Housing — RIDEA
|
|
11/01/17
|
|
$
|
109,500,000
|
|
|
$
|
112,000,000
|
|
|
$
|
4,882,000
|
|
(1)
|
On November 1, 2017, we completed the acquisition of Central Florida Senior Housing Portfolio, pursuant to a joint venture with an affiliate of Meridian Senior Living, LLC, an unaffiliated third party. Our effective ownership of the joint venture is approximately
98.0%
.
|
(2)
|
Represents borrowings under the Line of Credit, as amended, at the time of acquisition.
|
(3)
|
Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of Central Florida Senior Housing Portfolio, a base acquisition fee upon the closing of the acquisition of
2.25%
of the portion of the aggregate contract purchase price paid by us. In addition, the total acquisition fee includes a Contingent Advisor Payment in the amount of
2.25%
of the portion of the aggregate contract purchase price paid by us, which shall be paid by us to our advisor, subject to the satisfaction of certain conditions.
See Note 12, Related Party Transactions
— Acquisition and Development Stage — Acquisition Fee, for a further discussion.
|
|
September 30,
|
||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||
|
Number of
Buildings
|
|
Aggregate Contract
Purchase Price
|
|
Leased %
|
|
Number of
Buildings
|
|
Aggregate Contract
Purchase Price
|
|
Leased %
|
||||||||
Medical office buildings
|
18
|
|
|
$
|
262,290,000
|
|
|
94.0
|
%
|
|
5
|
|
|
$
|
59,670,000
|
|
|
100
|
%
|
Senior housing
|
12
|
|
|
94,350,000
|
|
|
100
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||
Total/weighted average
|
30
|
|
|
$
|
356,640,000
|
|
|
95.7
|
%
|
|
5
|
|
|
$
|
59,670,000
|
|
|
100
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Medical office buildings
|
$
|
6,330,000
|
|
|
$
|
312,000
|
|
|
$
|
15,456,000
|
|
|
$
|
338,000
|
|
Senior housing
|
2,158,000
|
|
|
—
|
|
|
3,282,000
|
|
|
—
|
|
||||
Total
|
$
|
8,488,000
|
|
|
$
|
312,000
|
|
|
$
|
18,738,000
|
|
|
$
|
338,000
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Real estate taxes
|
$
|
651,000
|
|
|
$
|
24,000
|
|
|
$
|
1,278,000
|
|
|
$
|
39,000
|
|
Utilities
|
552,000
|
|
|
29,000
|
|
|
1,267,000
|
|
|
36,000
|
|
||||
Building maintenance
|
467,000
|
|
|
28,000
|
|
|
1,327,000
|
|
|
28,000
|
|
||||
Property management fees — third party
|
127,000
|
|
|
6,000
|
|
|
320,000
|
|
|
6,000
|
|
||||
Property management fees — affiliates
|
103,000
|
|
|
5,000
|
|
|
249,000
|
|
|
5,000
|
|
||||
Administration
|
91,000
|
|
|
—
|
|
|
212,000
|
|
|
—
|
|
||||
Insurance
|
23,000
|
|
|
—
|
|
|
56,000
|
|
|
—
|
|
||||
Amortization of leasehold interests
|
22,000
|
|
|
—
|
|
|
69,000
|
|
|
—
|
|
||||
Other
|
59,000
|
|
|
6,000
|
|
|
115,000
|
|
|
7,000
|
|
||||
Total
|
$
|
2,095,000
|
|
|
$
|
98,000
|
|
|
$
|
4,893,000
|
|
|
$
|
121,000
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Medical office buildings
|
$
|
1,857,000
|
|
|
29.3
|
%
|
|
$
|
98,000
|
|
|
31.4
|
%
|
|
$
|
4,543,000
|
|
|
29.4
|
%
|
|
$
|
121,000
|
|
|
35.8
|
%
|
Senior housing
|
238,000
|
|
|
11.0
|
%
|
|
—
|
|
|
—
|
%
|
|
350,000
|
|
|
10.7
|
%
|
|
—
|
|
|
—
|
%
|
||||
Total/weighted average
|
$
|
2,095,000
|
|
|
24.7
|
%
|
|
$
|
98,000
|
|
|
31.4
|
%
|
|
$
|
4,893,000
|
|
|
26.1
|
%
|
|
$
|
121,000
|
|
|
35.8
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Asset management fees — affiliates
|
$
|
700,000
|
|
|
$
|
—
|
|
|
$
|
1,505,000
|
|
|
$
|
—
|
|
Professional and legal fees
|
310,000
|
|
|
141,000
|
|
|
646,000
|
|
|
260,000
|
|
||||
Restricted stock compensation
|
61,000
|
|
|
14,000
|
|
|
100,000
|
|
|
66,000
|
|
||||
Transfer agent services
|
57,000
|
|
|
40,000
|
|
|
141,000
|
|
|
42,000
|
|
||||
Board of directors fees
|
53,000
|
|
|
58,000
|
|
|
163,000
|
|
|
141,000
|
|
||||
Directors’ and officers’ liability insurance
|
53,000
|
|
|
59,000
|
|
|
161,000
|
|
|
147,000
|
|
||||
Franchise taxes
|
31,000
|
|
|
—
|
|
|
121,000
|
|
|
—
|
|
||||
Bad debt expense
|
25,000
|
|
|
—
|
|
|
94,000
|
|
|
—
|
|
||||
Other
|
6,000
|
|
|
17,000
|
|
|
65,000
|
|
|
69,000
|
|
||||
Total
|
$
|
1,296,000
|
|
|
$
|
329,000
|
|
|
$
|
2,996,000
|
|
|
$
|
725,000
|
|
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash and cash equivalents — beginning of period
|
$
|
2,237,000
|
|
|
$
|
202,000
|
|
Net cash provided by (used in) operating activities
|
8,849,000
|
|
|
(2,391,000
|
)
|
||
Net cash used in investing activities
|
(222,118,000
|
)
|
|
(56,637,000
|
)
|
||
Net cash provided by financing activities
|
215,429,000
|
|
|
61,401,000
|
|
||
Cash and cash equivalents — end of period
|
$
|
4,397,000
|
|
|
$
|
2,575,000
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Distributions paid in cash
|
$
|
4,006,000
|
|
|
|
|
$
|
148,000
|
|
|
|
||
Distributions reinvested
|
5,492,000
|
|
|
|
|
222,000
|
|
|
|
||||
|
$
|
9,498,000
|
|
|
|
|
$
|
370,000
|
|
|
|
||
Sources of distributions:
|
|
|
|
|
|
|
|
||||||
Cash flows from operations
|
$
|
8,849,000
|
|
|
93.2
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Offering proceeds
|
649,000
|
|
|
6.8
|
|
|
370,000
|
|
|
100
|
|
||
|
$
|
9,498,000
|
|
|
100
|
%
|
|
$
|
370,000
|
|
|
100
|
%
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Distributions paid in cash
|
$
|
4,006,000
|
|
|
|
|
$
|
148,000
|
|
|
|
||
Distributions reinvested
|
5,492,000
|
|
|
|
|
222,000
|
|
|
|
||||
|
$
|
9,498,000
|
|
|
|
|
$
|
370,000
|
|
|
|
||
Sources of distributions:
|
|
|
|
|
|
|
|
||||||
FFO attributable to controlling interest
|
$
|
8,909,000
|
|
|
93.8
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Offering proceeds
|
589,000
|
|
|
6.2
|
|
|
370,000
|
|
|
100
|
|
||
|
$
|
9,498,000
|
|
|
100
|
%
|
|
$
|
370,000
|
|
|
100
|
%
|
|
Payments Due by Period
|
||||||||||||||||||
|
2017
|
|
2018-2019
|
|
2020-2021
|
|
Thereafter
|
|
Total
|
||||||||||
Principal payments — fixed-rate debt
|
$
|
84,000
|
|
|
$
|
793,000
|
|
|
$
|
8,349,000
|
|
|
$
|
2,492,000
|
|
|
$
|
11,718,000
|
|
Interest payments — fixed-rate debt
|
145,000
|
|
|
1,117,000
|
|
|
421,000
|
|
|
455,000
|
|
|
2,138,000
|
|
|||||
Principal payments — variable-rate debt
|
—
|
|
|
26,000,000
|
|
|
—
|
|
|
—
|
|
|
26,000,000
|
|
|||||
Interest payments — variable-rate debt (based on rates in effect as of September 30, 2017)
|
243,000
|
|
|
1,621,000
|
|
|
—
|
|
|
—
|
|
|
1,864,000
|
|
|||||
Ground and other lease obligations
|
24,000
|
|
|
491,000
|
|
|
492,000
|
|
|
11,466,000
|
|
|
12,473,000
|
|
|||||
Total
|
$
|
496,000
|
|
|
$
|
30,022,000
|
|
|
$
|
9,262,000
|
|
|
$
|
14,413,000
|
|
|
$
|
54,193,000
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
$
|
754,000
|
|
|
$
|
(2,092,000
|
)
|
|
$
|
1,290,000
|
|
|
$
|
(2,855,000
|
)
|
Add:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization — consolidated properties
|
3,442,000
|
|
|
64,000
|
|
|
7,619,000
|
|
|
64,000
|
|
||||
Less:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to redeemable noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
FFO attributable to controlling interest
|
$
|
4,196,000
|
|
|
$
|
(2,028,000
|
)
|
|
$
|
8,909,000
|
|
|
$
|
(2,791,000
|
)
|
|
|
|
|
|
|
|
|
||||||||
Acquisition related expenses(1)
|
$
|
121,000
|
|
|
$
|
1,857,000
|
|
|
$
|
334,000
|
|
|
$
|
2,227,000
|
|
Amortization of above- and below-market leases(2)
|
(30,000
|
)
|
|
(33,000
|
)
|
|
(99,000
|
)
|
|
(33,000
|
)
|
||||
Change in deferred rent receivables(3)
|
(569,000
|
)
|
|
—
|
|
|
(1,124,000
|
)
|
|
—
|
|
||||
Adjustments for redeemable noncontrolling interest(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
MFFO attributable to controlling interest
|
$
|
3,718,000
|
|
|
$
|
(204,000
|
)
|
|
$
|
8,020,000
|
|
|
$
|
(597,000
|
)
|
Weighted average Class T and Class I common shares outstanding — basic and diluted
|
32,593,321
|
|
|
3,357,979
|
|
|
23,827,175
|
|
|
1,345,578
|
|
||||
Net income (loss) per Class T and Class I common share — basic and diluted
|
$
|
0.02
|
|
|
$
|
(0.62
|
)
|
|
$
|
0.05
|
|
|
$
|
(2.12
|
)
|
FFO attributable to controlling interest per Class T and Class I common share — basic and diluted
|
$
|
0.13
|
|
|
$
|
(0.60
|
)
|
|
$
|
0.37
|
|
|
$
|
(2.07
|
)
|
MFFO attributable to controlling interest per Class T and Class I common share — basic and diluted
|
$
|
0.11
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.34
|
|
|
$
|
(0.44
|
)
|
(1)
|
In evaluating investments in real estate, we differentiate the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for publicly registered, non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition related expenses, we believe MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our advisor or its affiliates and third parties. Certain acquisition related expenses under GAAP, such as expenses incurred in connection with property acquisitions accounted for as business combinations, are considered operating expenses and as expenses included in the determination of net income (loss), which is a performance measure under GAAP. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property.
|
(2)
|
Under GAAP, above- and below-market leases are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate-related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, we believe that by excluding charges relating to the amortization of above- and below-market leases, MFFO may provide useful supplemental information on the performance of the real estate.
|
(3)
|
Under GAAP, rental revenue or rental expense is recognized on a straight-line basis over the terms of the related lease (including rent holidays). This may result in income or expense recognition that is significantly different than the underlying contract terms. By adjusting for the change in deferred rent receivables, MFFO may provide useful supplemental information on the realized economic impact of lease terms, providing insight on the expected contractual cash flows of such lease terms, and aligns results with our analysis of operating performance.
|
(4)
|
Includes all adjustments to eliminate the redeemable noncontrolling interest’s share of the adjustments described in notes (1) – (3) above to convert our FFO to MFFO.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
$
|
754,000
|
|
|
$
|
(2,092,000
|
)
|
|
$
|
1,290,000
|
|
|
$
|
(2,855,000
|
)
|
General and administrative
|
1,296,000
|
|
|
329,000
|
|
|
2,996,000
|
|
|
725,000
|
|
||||
Acquisition related expenses
|
121,000
|
|
|
1,857,000
|
|
|
334,000
|
|
|
2,227,000
|
|
||||
Depreciation and amortization
|
3,442,000
|
|
|
64,000
|
|
|
7,619,000
|
|
|
64,000
|
|
||||
Interest expense
|
780,000
|
|
|
56,000
|
|
|
1,607,000
|
|
|
56,000
|
|
||||
Interest income
|
—
|
|
|
—
|
|
|
(1,000
|
)
|
|
—
|
|
||||
Net operating income
|
$
|
6,393,000
|
|
|
$
|
214,000
|
|
|
$
|
13,845,000
|
|
|
$
|
217,000
|
|
|
Expected Maturity Date
|
||||||||||||||||||||||||||||||
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total
|
|
Fair Value
|
||||||||||||||||
Fixed-rate debt — principal payments
|
$
|
84,000
|
|
|
$
|
386,000
|
|
|
$
|
407,000
|
|
|
$
|
8,035,000
|
|
|
$
|
314,000
|
|
|
$
|
2,492,000
|
|
|
$
|
11,718,000
|
|
|
$
|
11,950,000
|
|
Weighted average interest rate on maturing fixed-rate debt
|
5.14
|
%
|
|
5.10
|
%
|
|
5.10
|
%
|
|
4.79
|
%
|
|
5.25
|
%
|
|
5.25
|
%
|
|
4.92
|
%
|
|
—
|
|
||||||||
Variable-rate debt — principal payments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,000,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,000,000
|
|
|
$
|
25,998,000
|
|
Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of September 30, 2017)
|
—
|
%
|
|
—
|
%
|
|
3.72
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.72
|
%
|
|
—
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Distributions paid in cash
|
$
|
4,006,000
|
|
|
|
|
$
|
148,000
|
|
|
|
||
Distributions reinvested
|
5,492,000
|
|
|
|
|
222,000
|
|
|
|
||||
|
$
|
9,498,000
|
|
|
|
|
$
|
370,000
|
|
|
|
||
Sources of distributions:
|
|
|
|
|
|
|
|
||||||
Cash flows from operations
|
$
|
8,849,000
|
|
|
93.2
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Offering proceeds
|
649,000
|
|
|
6.8
|
|
|
370,000
|
|
|
100
|
|
||
|
$
|
9,498,000
|
|
|
100
|
%
|
|
$
|
370,000
|
|
|
100
|
%
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
Distributions paid in cash
|
$
|
4,006,000
|
|
|
|
|
$
|
148,000
|
|
|
|
||
Distributions reinvested
|
5,492,000
|
|
|
|
|
222,000
|
|
|
|
||||
|
$
|
9,498,000
|
|
|
|
|
$
|
370,000
|
|
|
|
||
Sources of distributions:
|
|
|
|
|
|
|
|
||||||
FFO attributable to controlling interest
|
$
|
8,909,000
|
|
|
93.8
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Offering proceeds
|
589,000
|
|
|
6.2
|
|
|
370,000
|
|
|
100
|
|
||
|
$
|
9,498,000
|
|
|
100
|
%
|
|
$
|
370,000
|
|
|
100
|
%
|
•
|
an obligation to refund amounts previously paid to us, our future tenants or our operators pursuant to the Medicare or Medicaid programs or from private payors, in amounts that could be material to our business;
|
•
|
state or federal agencies imposing fines, penalties and other sanctions on us, our tenants or our operators;
|
•
|
loss of our right, our tenants’ right or our operators’ right to participate in the Medicare or Medicaid programs or one or more private payor networks;
|
•
|
an increase in private litigation against us, our tenants or our operators; and
|
•
|
damage to our reputation in various markets.
|
|
Amount
|
||
Gross offering proceeds — Class T and Class I common stock
|
$
|
353,510,000
|
|
Gross offering proceeds from Class T and Class I shares issued pursuant to the DRIP
|
6,288,000
|
|
|
Total gross offering proceeds
|
359,798,000
|
|
|
Less public offering expenses:
|
|
||
Selling commissions
|
9,807,000
|
|
|
Dealer manager fees
|
10,380,000
|
|
|
Advisor funding of dealer manager fees
|
(6,963,000
|
)
|
|
Other organizational and offering expenses
|
4,343,000
|
|
|
Advisor funding of other organizational and offering expenses
|
(4,343,000
|
)
|
|
Net proceeds from our offering
|
$
|
346,574,000
|
|
Period
|
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of Shares
Purchased As Part of
Publicly Announced
Plan or Program
|
|
Maximum Approximate
Dollar Value
of Shares that May
Yet Be Purchased
Under the
Plans or Programs
|
|||||
July 1, 2017 to July 31, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
(1
|
)
|
August 1, 2017 to August 31, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
(1
|
)
|
September 1, 2017 to September 30, 2017
|
|
11,209
|
|
|
$
|
9.69
|
|
|
11,209
|
|
|
(1
|
)
|
Total
|
|
11,209
|
|
|
$
|
9.69
|
|
|
11,209
|
|
|
|
(1)
|
Subject to funds being available, we will limit the number of shares of our common stock repurchased during any calendar year to 5.0% of the weighted average number of shares of our common stock outstanding during the prior calendar year; provided however, shares of our common stock subject to a repurchase requested upon the death of a stockholder will not be subject to this cap.
|
*
|
Filed herewith.
|
**
|
Furnished herewith. In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.
|
|
|
|
|
|
Griffin-American Healthcare REIT IV, Inc.
(Registrant)
|
|
|
|
|
|
|
|
|
November 9, 2017
|
|
By:
|
|
/s/ J
EFFREY
T. H
ANSON
|
|
|
Date
|
|
|
|
|
Jeffrey T. Hanson
|
|
|
|
|
|
|
Chief Executive Officer and Chairman of the Board of Directors
|
|
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
November 9, 2017
|
|
By:
|
|
/s/ B
RIAN
S. P
EAY
|
|
|
Date
|
|
|
|
|
Brian S. Peay
|
|
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
ARTICLE I DEFINED TERMS
|
1
|
|
||
|
|
|
|
|
ARTICLE II PURCHASE AND SALE & PURCHASE PRICE
|
1
|
|
||
|
|
|
|
|
|
2.1
|
Purchase and Sale
|
1
|
|
|
|
|
|
|
|
2.2
|
Purchase Price
|
2
|
|
|
|
|
|
|
|
2.3
|
Escrow Provisions
|
3
|
|
|
|
|
|
|
ARTICLE III PURCHASER DILIGENCE/PROPERTY CONTRACTS
|
4
|
|
||
|
|
|
|
|
|
3.1
|
Seller Deliveries
|
4
|
|
|
|
|
||
ARTICLE IV DUE DILIGENCE; TITLE
|
5
|
|
||
|
|
|
|
|
|
4.1
|
Inspection of the Property
|
5
|
|
|
|
|
|
|
|
4.2
|
Title Documents
|
7
|
|
|
|
|
|
|
|
4.3
|
Permitted Exceptions
|
7
|
|
|
|
|
|
|
|
4.4
|
Existing Security Documents/Monetary Liens
|
8
|
|
|
|
|
|
|
|
4.5
|
Title Review and Objection; Subsequently Disclosed Exceptions
|
8
|
|
|
|
|
|
|
|
4.6
|
Occupancy Rates
|
9
|
|
|
|
|
|
|
ARTICLE V CLOSING
|
10
|
|
||
|
|
|
|
|
|
5.1
|
Closing Date
|
10
|
|
|
|
|
|
|
|
5.2
|
Seller and Existing Operator Closing Deliveries
|
10
|
|
|
|
|
|
|
|
5.3
|
Purchaser Closing Deliveries
|
12
|
|
|
|
|
|
|
|
5.4
|
Originals; Document Delivery
|
13
|
|
|
|
|
|
|
|
5.5
|
Closing Prorations and Adjustments
|
13
|
|
|
|
|
|
|
|
5.6
|
Post-Closing Adjustments
|
17
|
|
|
|
|
|
|
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER
|
18
|
|
|
6.1
|
Seller’s Representations
|
18
|
|
|
|
|
|
|
|
6.2
|
Representations and Warranties of Purchaser
|
30
|
|
|
|
|
|
|
ARTICLE VII ADDITIONAL COVENANTS/AGREEMENTS OF SELLER AND PURCHASER
|
32
|
|
||
|
|
|
|
|
|
7.1
|
Interim Operations
|
32
|
|
|
|
|
|
|
|
7.2
|
Healthcare Approvals
|
32
|
|
|
|
|
|
|
|
7.3
|
Other Consents and Satisfaction of Conditions
|
33
|
|
|
|
|
|
|
|
7.4
|
Taxes.
|
33
|
|
|
|
|
|
|
|
7.5
|
MSA.
|
34
|
|
|
|
|
|
|
|
7.6
|
No Shop.
|
34
|
|
|
|
|
|
|
|
7.7
|
No Disposition of Property.
|
34
|
|
|
|
|
|
|
|
7.8
|
Financial Information.
|
34
|
|
|
|
|
|
|
|
7.9
|
Reserved.
|
34
|
|
|
|
|
|
|
|
7.10
|
Reserved.
|
34
|
|
|
|
|
|
|
|
7.11
|
Resident Records.
|
34
|
|
|
|
|
|
|
|
7.12
|
Recoupment Claims.
|
35
|
|
|
|
|
|
|
|
7.13
|
Surveys; Resolution of Audit Deficiencies; Cooperation.
|
35
|
|
|
|
|
|
|
|
7.14
|
Medicaid Provider Agreements.
|
35
|
|
|
|
|
|
|
|
7.15
|
Residents Rents; Accounts Receivable.
|
36
|
|
|
|
|
|
|
|
7.16
|
Reserved.
|
37
|
|
|
|
|
|
|
|
7.17
|
Reserved.
|
37
|
|
|
|
|
|
|
|
7.18
|
Pre-Closing Access.
|
38
|
|
|
|
|
|
|
|
7.19
|
Reserved.
|
38
|
|
|
|
|
|
|
|
7.20
|
Approvals and Consents.
|
38
|
|
|
|
|
|
|
|
7.21
|
Reserved.
|
38
|
|
|
7.22
|
Information Systems, Records in Electronic Form, Software and Data
|
38
|
|
|
|
|
|
|
|
7.23
|
Changes in Representations and Warranties.
|
38
|
|
|
|
|
|
|
|
7.24
|
Further Documentation.
|
39
|
|
|
|
|
|
|
|
7.25
|
Operations Transfer.
|
39
|
|
|
|
|
|
|
ARTICLE VIII CONDITIONS
PRECEDENT
TO CLOSING
|
39
|
|
||
|
|
|
|
|
|
8.1
|
Purchaser’s Conditions to Closing
|
39
|
|
|
|
|
|
|
|
8.2
|
Seller’s Conditions to Closing
|
41
|
|
|
|
|
||
ARTICLE IX INDEMNIFICATION & SURVIVAL PROVISIONS
|
42
|
|
||
|
|
|
|
|
|
9.1
|
Effective Date; Survival
|
42
|
|
|
|
|
|
|
|
9.2
|
Indemnification by Seller
|
43
|
|
|
|
|
|
|
|
9.3
|
Indemnification by Purchaser
|
43
|
|
|
|
|
|
|
|
9.4
|
Limitations on Indemnification
|
44
|
|
|
|
|
|
|
|
9.5
|
Indemnification Procedures
|
44
|
|
|
|
|
|
|
|
9.6
|
Tax Treatment
|
47
|
|
|
|
|
|
|
|
9.7
|
Exclusive Remedy
|
47
|
|
|
|
|
|
|
|
9.8
|
Manner of Payment
|
48
|
|
|
|
|
|
|
|
9.9
|
Brokerage
|
48
|
|
|
|
|
|
|
ARTICLE X DEFAULT AND REMEDIES
|
48
|
|
||
|
|
|
|
|
|
10.1
|
Purchaser Default
|
48
|
|
|
|
|
|
|
|
10.2
|
Seller Default
|
49
|
|
|
|
|
|
|
|
10.4
|
Post-Closing Default
|
50
|
|
|
|
|
|
|
ARTICLE XI CASUALTY; EMINENT DOMAIN
|
50
|
|
||
|
|
|
|
|
|
11.1
|
Damage
|
50
|
|
|
|
|
|
|
|
11.2
|
Closing
|
51
|
|
|
|
|
|
|
|
11.3
|
Repairs
|
51
|
|
|
11.4
|
Eminent Domain
|
51
|
|
|
|
|
|
|
ARTICLE XII MISCELLANEOUS
|
52
|
|
||
|
|
|
|
|
|
12.1
|
Binding Effect of Agreement
|
52
|
|
|
|
|
|
|
|
12.2
|
Exhibits; Schedules; Annexes
|
52
|
|
|
|
|
|
|
|
12.3
|
Assignability
|
52
|
|
|
|
|
|
|
|
12.4
|
Captions
|
52
|
|
|
|
|
|
|
|
12.5
|
Number and Gender of Words
|
52
|
|
|
|
|
|
|
|
12.6
|
Notices
|
52
|
|
|
|
|
|
|
|
12.7
|
Governing Law and Venue
|
54
|
|
|
|
|
|
|
|
12.8
|
Entire Agreement
|
54
|
|
|
|
|
|
|
|
12.9
|
Amendments
|
54
|
|
|
|
|
|
|
|
12.10
|
Severability
|
54
|
|
|
|
|
|
|
|
12.11
|
Multiple Counterparts/Facsimile Signatures
|
54
|
|
|
|
|
|
|
|
12.12
|
Construction
|
55
|
|
|
|
|
|
|
|
12.13
|
Confidentiality/Press Releases
|
55
|
|
|
|
|
|
|
|
12.14
|
Time of the Essence
|
56
|
|
|
|
|
|
|
|
12.15
|
Waiver
|
56
|
|
|
|
|
|
|
|
12.16
|
Time Periods
|
56
|
|
|
|
|
|
|
|
12.17
|
No Personal Liability of Officers, Trustees or Directors
|
56
|
|
|
|
|
|
|
|
12.18
|
No Recording
|
56
|
|
|
|
|
|
|
|
12.19
|
Relationship of Parties
|
56
|
|
|
|
|
|
|
|
12.20
|
Reserved
|
56
|
|
|
|
|
|
|
|
12.21
|
Multiple Parties
|
56
|
|
|
|
|
|
|
|
12.22
|
WAIVER OF JURY TRIAL
|
57
|
|
|
|
|
|
|
|
12.23
|
Appointment of Seller’ Agent
|
57
|
|
|
12.24
|
Attorneys’ Fees
|
58
|
|
|
|
|
|
|
|
12.3
|
Reserved
|
58
|
|
|
|
|
|
|
|
12.3
|
Bulk Transfer Tax Clearance
|
58
|
|
|
|
|
|
|
|
12.3
|
Audit
58
|
|
Exhibit A
|
Legal Description
|
Exhibit B
|
Form of Indemnity Escrow Agreement
|
Exhibit C
|
Reserved
|
Exhibit D
|
Form of Bill of Sale
|
Exhibit E
|
Form of General Assignment and Assumption
|
Exhibit F
|
Form of Assignment and Assumption of Resident Agreements
|
Exhibit G
|
Form of Certification of Non-Foreign Status
|
Exhibit H
|
Reserved
|
Exhibit I
|
Form of Guaranty
|
Exhibit J
|
Form of Resident Notification
|
Exhibit K
|
Form of Access Agreement
|
Exhibit L
|
Property Contracts List
|
Exhibit M
|
Bring-Down Certificate
|
Exhibit N
|
Assigned Contracts
|
Exhibit O
|
Third-Party Reports
|
Exhibit P
|
Management Agreements
|
Exhibit Q
|
Other Seller Deliveries
|
Exhibit R
|
Non-Compete Agreement
|
Schedule I
|
Seller; Purchaser; Facility Names and Addresses
|
Schedule II
|
Separate Facilities
|
Schedule 5.6
|
Current Assessed Values
|
Schedule 6.1.3
|
Condemnation; Proceedings
|
Schedule 6.1.7(b)
|
Notices of Violations
|
Schedule 6.1.8(b)
|
Leased Personal Property
|
Schedule 6.1.8(k)
|
Commercial Leases
|
Schedule 6.1.11
|
Required Consents
|
Schedule 6.1.12(a)
|
Permits and Operating Licenses
|
Schedule 6.1.12(b)
|
Third Party Payor Programs
|
Schedule 6.1.12(d)
|
Deficiencies or Violations
|
Schedule 6.1.12(g)
|
Corporate Integrity Agreements
|
Schedule 6.1.14
|
Property Statements
|
Schedule 6.1.15(a)
|
Regulated Quantities of Hazardous Substances
|
Schedule 6.1.15(b)
|
Litigation Regarding Hazardous Substances
|
Schedule 6.1.15(c)
|
Notices Regarding Hazardous Substances
|
Schedule 6.1.15(d)
|
Noncompliance with Environmental Laws
|
Schedule 6.1.15(e)
|
Discharge of Hazardous Substances
|
Schedule 6.1.15(f)
|
Environmental Reports
|
Schedule 6.1.15(h)
|
Underground Storage Tanks
|
Schedule 6.1.24
|
Licensed Beds
|
Schedule 6.1.25
|
Intellectual Property
|
Schedule 6.1.29
|
List of Insurance Policies
|
Schedule 12.13-A
|
Form of Representations Letter
|
Schedule 12.27-B
|
Form of Audit Letter
|
Attachment 1.1
|
Healthcare Approvals
|
Annex 1
|
Defined Terms
|
To Purchaser:
|
c/o Griffin-American Healthcare REIT IV, Inc.
18191 Von Karman Avenue, Suite 300
Irvine, CA 92612
Attention: Brooks Barton
Email:
bbarton@ahinvestors.com
|
|
|
with a copy to:
|
Arnall Golden Gregory LLP
171 17 th Street, NW, Suite 2100 Atlanta, GA 30363 Attn.: Steven A. Kaye, Esq. Fax No.: 404-873-8101 Email: steven.kaye@agg.com |
|
|
To Seller and Existing Operator:
|
c/o Fortress Investment Group LLC
1345 Avenue of the Americas
New York, New York 10105
Attn: Max Luce
Facsimile: 917-639-9638
Email:
mluce@fortress.com
|
|
|
with a copy to:
|
c/o Fortress Investment Group LLC
1345 Avenue of the Americas
New York, New York 10105
Attn: Ivy Hernandez
Facsimile: 917-639-9638
Email:
ihernandez@fortress.com
|
|
|
with a copy to:
|
Williams Mullen
200 South 10th Street, Suite 1600
Richmond, Virginia 23219
Attention: Robert C. Dewar
Email:
rdewar@williamsmullen.com
|
|
First American Title Insurance Company
777 South Figueroa Street, 4th Floor
Los Angeles, CA 90017
Attention: Brian M. Serikaku
Email: bmserikaku@firstam.com
|
NIC 5 SPRING HAVEN OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 5 LAKE MORTON PLAZA OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 5 RENAISSANCE RETIREMENT OWNER
|
|
LLC,
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 5 FOREST OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 5 SPRING HAVEN LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 LAKE MORTON PLAZA LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 RENAISSANCE RETIREMENT LEASING
|
|
LLC,
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 FOREST OAKS LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
GAHC4 CENTRAL FL SENIOR HOUSING
|
|
PORTFOLIO, LLC
, a Delaware limited liability
|
|
company
|
|
|
|
By:
|
/s/ Brian S. Peay
|
Name:
|
Brian S. Peay
|
Title
|
Authorized Signatory
|
First American Title Insurance Company
|
|
|
|
|
|
By:
|
/s/ Brian M. Serikaku
|
Name:
|
Brian M. Serikaku
|
Title
|
Escrow Officer
|
ARTICLE I DEFINED TERMS
|
1
|
|
||
|
|
|
|
|
ARTICLE II PURCHASE AND SALE & PURCHASE PRICE
|
1
|
|
||
|
|
|
|
|
|
2.1
|
Purchase and Sale
|
1
|
|
|
|
|
|
|
|
2.2
|
Purchase Price
|
2
|
|
|
|
|
|
|
|
2.3
|
Escrow Provisions
|
3
|
|
|
|
|
|
|
ARTICLE III PURCHASER DILIGENCE/PROPERTY CONTRACTS
|
4
|
|
||
|
|
|
|
|
|
3.1
|
Seller Deliveries
|
4
|
|
|
|
|
||
ARTICLE IV DUE DILIGENCE; TITLE
|
5
|
|
||
|
|
|
|
|
|
4.1
|
Inspection of the Property
|
5
|
|
|
|
|
|
|
|
4.2
|
Title Documents
|
7
|
|
|
|
|
|
|
|
4.3
|
Permitted Exceptions
|
7
|
|
|
|
|
|
|
|
4.4
|
Existing Security Documents/Monetary Liens
|
8
|
|
|
|
|
|
|
|
4.5
|
Title Review and Objection; Subsequently Disclosed Exceptions
|
8
|
|
|
|
|
|
|
|
4.6
|
Occupancy Rates
|
9
|
|
|
|
|
|
|
ARTICLE V CLOSING
|
10
|
|
||
|
|
|
|
|
|
5.1
|
Closing Date
|
10
|
|
|
|
|
|
|
|
5.2
|
Seller and Existing Operator Closing Deliveries
|
10
|
|
|
|
|
|
|
|
5.3
|
Purchaser Closing Deliveries
|
12
|
|
|
|
|
|
|
|
5.4
|
Originals; Document Delivery
|
13
|
|
|
|
|
|
|
|
5.5
|
Closing Prorations and Adjustments
|
13
|
|
|
|
|
|
|
|
5.6
|
Post-Closing Adjustments
|
17
|
|
|
|
|
|
|
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER
|
18
|
|
|
6.1
|
Seller’s Representations
|
18
|
|
|
|
|
|
|
|
6.2
|
Representations and Warranties of Purchaser
|
30
|
|
|
|
|
|
|
ARTICLE VII ADDITIONAL COVENANTS/AGREEMENTS OF SELLER AND PURCHASER
|
32
|
|
||
|
|
|
|
|
|
7.1
|
Interim Operations
|
32
|
|
|
|
|
|
|
|
7.2
|
Healthcare Approvals
|
32
|
|
|
|
|
|
|
|
7.3
|
Other Consents and Satisfaction of Conditions
|
33
|
|
|
|
|
|
|
|
7.4
|
Taxes.
|
33
|
|
|
|
|
|
|
|
7.5
|
MSA.
|
33
|
|
|
|
|
|
|
|
7.6
|
No Shop.
|
34
|
|
|
|
|
|
|
|
7.7
|
No Disposition of Property.
|
34
|
|
|
|
|
|
|
|
7.8
|
Financial Information.
|
34
|
|
|
|
|
|
|
|
7.9
|
Reserved.
|
34
|
|
|
|
|
|
|
|
7.10
|
Reserved.
|
34
|
|
|
|
|
|
|
|
7.11
|
Resident Records.
|
34
|
|
|
|
|
|
|
|
7.12
|
Recoupment Claims.
|
35
|
|
|
|
|
|
|
|
7.13
|
Surveys; Resolution of Audit Deficiencies; Cooperation.
|
35
|
|
|
|
|
|
|
|
7.14
|
Medicaid Provider Agreements.
|
35
|
|
|
|
|
|
|
|
7.15
|
Residents Rents; Accounts Receivable.
|
36
|
|
|
|
|
|
|
|
7.16
|
Reserved.
|
37
|
|
|
|
|
|
|
|
7.17
|
Reserved.
|
37
|
|
|
|
|
|
|
|
7.18
|
Pre-Closing Access.
|
37
|
|
|
|
|
|
|
|
7.19
|
Reserved.
|
38
|
|
|
|
|
|
|
|
7.20
|
Approvals and Consents.
|
38
|
|
|
|
|
|
|
|
7.21
|
Reserved.
|
38
|
|
|
7.22
|
Information Systems, Records in Electronic Form, Software and Data
|
38
|
|
|
|
|
|
|
|
7.23
|
Changes in Representations and Warranties.
|
38
|
|
|
|
|
|
|
|
7.24
|
Further Documentation.
|
39
|
|
|
|
|
|
|
|
7.25
|
Operations Transfer.
|
39
|
|
|
|
|
|
|
ARTICLE VIII CONDITIONS
PRECEDENT
TO CLOSING
|
39
|
|
||
|
|
|
|
|
|
8.1
|
Purchaser’s Conditions to Closing
|
39
|
|
|
|
|
|
|
|
8.2
|
Seller’s Conditions to Closing
|
41
|
|
|
|
|
||
ARTICLE IX INDEMNIFICATION & SURVIVAL PROVISIONS
|
42
|
|
||
|
|
|
|
|
|
9.1
|
Effective Date; Survival
|
42
|
|
|
|
|
|
|
|
9.2
|
Indemnification by Seller
|
43
|
|
|
|
|
|
|
|
9.3
|
Indemnification by Purchaser
|
43
|
|
|
|
|
|
|
|
9.4
|
Limitations on Indemnification
|
44
|
|
|
|
|
|
|
|
9.5
|
Indemnification Procedures
|
44
|
|
|
|
|
|
|
|
9.6
|
Tax Treatment
|
47
|
|
|
|
|
|
|
|
9.7
|
Exclusive Remedy
|
47
|
|
|
|
|
|
|
|
9.8
|
Manner of Payment
|
48
|
|
|
|
|
|
|
|
9.9
|
Brokerage
|
48
|
|
|
|
|
|
|
ARTICLE X DEFAULT AND REMEDIES
|
48
|
|
||
|
|
|
|
|
|
10.1
|
Purchaser Default
|
48
|
|
|
|
|
|
|
|
10.2
|
Seller Default
|
49
|
|
|
|
|
|
|
|
10.4
|
Post-Closing Default
|
50
|
|
|
|
|
|
|
ARTICLE XI CASUALTY; EMINENT DOMAIN
|
50
|
|
||
|
|
|
|
|
|
11.1
|
Damage
|
50
|
|
|
|
|
|
|
|
11.2
|
Closing
|
51
|
|
|
|
|
|
|
|
11.3
|
Repairs
|
51
|
|
|
11.4
|
Eminent Domain
|
51
|
|
|
|
|
|
|
ARTICLE XII MISCELLANEOUS
|
52
|
|
||
|
|
|
|
|
|
12.1
|
Binding Effect of Agreement
|
52
|
|
|
|
|
|
|
|
12.2
|
Exhibits; Schedules; Annexes
|
52
|
|
|
|
|
|
|
|
12.3
|
Assignability
|
52
|
|
|
|
|
|
|
|
12.4
|
Captions
|
52
|
|
|
|
|
|
|
|
12.5
|
Number and Gender of Words
|
52
|
|
|
|
|
|
|
|
12.6
|
Notices
|
52
|
|
|
|
|
|
|
|
12.7
|
Governing Law and Venue
|
54
|
|
|
|
|
|
|
|
12.8
|
Entire Agreement
|
54
|
|
|
|
|
|
|
|
12.9
|
Amendments
|
54
|
|
|
|
|
|
|
|
12.10
|
Severability
|
54
|
|
|
|
|
|
|
|
12.11
|
Multiple Counterparts/Facsimile Signatures
|
54
|
|
|
|
|
|
|
|
12.12
|
Construction
|
54
|
|
|
|
|
|
|
|
12.13
|
Confidentiality/Press Releases
|
55
|
|
|
|
|
|
|
|
12.14
|
Time of the Essence
|
56
|
|
|
|
|
|
|
|
12.15
|
Waiver
|
56
|
|
|
|
|
|
|
|
12.16
|
Time Periods
|
56
|
|
|
|
|
|
|
|
12.17
|
No Personal Liability of Officers, Trustees or Directors
|
56
|
|
|
|
|
|
|
|
12.18
|
No Recording
|
56
|
|
|
|
|
|
|
|
12.19
|
Relationship of Parties
|
56
|
|
|
|
|
|
|
|
12.20
|
Reserved
|
56
|
|
|
|
|
|
|
|
12.21
|
Multiple Parties
|
56
|
|
|
|
|
|
|
|
12.22
|
WAIVER OF JURY TRIAL
|
57
|
|
|
|
|
|
|
|
12.23
|
Appointment of Seller’ Agent
|
57
|
|
|
12.24
|
Attorneys’ Fees
|
58
|
|
|
|
|
|
|
|
12.3
|
Reserved
|
58
|
|
|
|
|
|
|
|
12.3
|
Bulk Transfer Tax Clearance
|
58
|
|
|
|
|
|
|
|
12.3
|
Audit
58
|
|
Exhibit A
|
Legal Description
|
Exhibit B
|
Form of Indemnity Escrow Agreement
|
Exhibit C
|
Reserved
|
Exhibit D
|
Form of Bill of Sale
|
Exhibit E
|
Form of General Assignment and Assumption
|
Exhibit F
|
Form of Assignment and Assumption of Resident Agreements
|
Exhibit G
|
Form of Certification of Non-Foreign Status
|
Exhibit H
|
Reserved
|
Exhibit I
|
Form of Guaranty
|
Exhibit J
|
Form of Resident Notification
|
Exhibit K
|
Reserved
|
Exhibit L
|
Property Contracts List
|
Exhibit M
|
Bring-Down Certificate
|
Exhibit N
|
Assigned Contracts
|
Exhibit O
|
Third-Party Reports
|
Exhibit P
|
Management Agreements
|
Exhibit Q
|
Other Seller Deliveries
|
Exhibit R
|
Non-Compete Agreement
|
Schedule I
|
Seller; Purchaser; Facility Names and Addresses
|
Schedule II
|
Separate Facilities
|
Schedule 5.6
|
Current Assessed Values
|
Schedule 6.1.3
|
Condemnation; Proceedings
|
Schedule 6.1.7(b)
|
Notices of Violations
|
Schedule 6.1.8(b)
|
Leased Personal Property
|
Schedule 6.1.8(k)
|
Commercial Leases
|
Schedule 6.1.11
|
Required Consents
|
Schedule 6.1.12(a)
|
Permits and Operating Licenses
|
Schedule 6.1.12(b)
|
Third Party Payor Programs
|
Schedule 6.1.12(d)
|
Deficiencies or Violations
|
Schedule 6.1.12(g)
|
Corporate Integrity Agreements
|
Schedule 6.1.14
|
Property Statements
|
Schedule 6.1.15(a)
|
Regulated Quantities of Hazardous Substances
|
Schedule 6.1.15(b)
|
Litigation Regarding Hazardous Substances
|
Schedule 6.1.15(c)
|
Notices Regarding Hazardous Substances
|
Schedule 6.1.15(d)
|
Noncompliance with Environmental Laws
|
Schedule 6.1.15(e)
|
Discharge of Hazardous Substances
|
Schedule 6.1.15(f)
|
Environmental Reports
|
Schedule 6.1.15(h)
|
Underground Storage Tanks
|
Schedule 6.1.24
|
Licensed Beds
|
Schedule 6.1.25
|
Intellectual Property
|
Schedule 6.1.29
|
List of Insurance Policies
|
Schedule 12.13-A
|
Form of Representations Letter
|
Schedule 12.27-B
|
Form of Audit Letter
|
Attachment 1.1
|
Healthcare Approvals
|
Annex 1
|
Defined Terms
|
To Purchaser:
|
c/o Griffin-American Healthcare REIT IV, Inc.
18191 Von Karman Avenue, Suite 300
Irvine, CA 92612
Attention: Brooks Barton
Email: bbarton@ahinvestors.com
|
|
|
with a copy to:
|
Arnall Golden Gregory LLP
171 17 th Street, NW, Suite 2100 Atlanta, GA 30363 Attn.: Steven A. Kaye, Esq. Fax No.: 404-873-8101 Email: steven.kaye@agg.com |
|
|
To Seller and Existing Operator:
|
c/o Fortress Investment Group LLC
1345 Avenue of the Americas
New York, New York 10105
Attn: Max Luce
Facsimile: 917-639-9638
Email: mluce@fortress.com
|
|
|
with a copy to:
|
c/o Fortress Investment Group LLC
1345 Avenue of the Americas
New York, New York 10105
Attn: Ivy Hernandez
Facsimile: 917-639-9638
Email: ihernandez@fortress.com
|
|
|
with a copy to:
|
Williams Mullen
200 South 10th Street, Suite 1600
Richmond, Virginia 23219
Attention: Robert C. Dewar
Email: rdewar@williamsmullen.com
|
|
First American Title Insurance Company
777 South Figueroa Street, 4th Floor
Los Angeles, CA 90017
Attention: Brian M. Serikaku
Email: bmserikaku@firstam.com
|
NIC 4 BAYSIDE TERRACE OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 4 BALMORAL OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 4 BRADENTON OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 4 THE GRANDE OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 4 SPRING OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Jane Ryu
|
Name:
|
Jane Ryu
|
Title
|
Chief Executive Officer
|
NIC 4 BAYSIDE TERRACE LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BALMORAL LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BRADENTON OAKS LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 THE GRANDE LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 SPRING OAKS LEASING LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
GAHC4 CENTRAL FL SENIOR HOUSING
|
|
PORTFOLIO, LLC
, a Delaware limited liability
|
|
company
|
|
|
|
By:
|
/s/ Brian S. Peay
|
Name:
|
Brian S. Peay
|
Title
|
Authorized Signatory
|
First American Title Insurance Company
|
|
|
|
|
|
By:
|
/s/ Brian M. Serikaku
|
Name:
|
Brian M. Serikaku
|
Title
|
Escrow Officer
|
NIC 5 SPRING HAVEN OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 LAKE MORTON PLAZA OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 RENAISSANCE RETIREMENT OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 FOREST OAKS OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 SPRING HAVEN LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 LAKE MORTON PLAZA LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 RENAISSANCE RETIREMENT LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 FOREST OAKS LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Stefan Oh
|
Name:
|
Stefan Oh
|
Title:
|
Executive Vice President, Acquisitions
|
NIC 4 BAYSIDE TERRACE OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BALMORAL OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BRADENTON OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 THE GRANDE OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 SPRING OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BAYSIDE TERRACE LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BALMORAL LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BRADENTON OAKS LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 THE GRANDE LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 SPRING OAKS LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Stefan Oh
|
Name:
|
Stefan Oh
|
Title:
|
Executive Vice President, Acquisitions
|
NIC 5 SPRING HAVEN OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 LAKE MORTON PLAZA OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 RENAISSANCE RETIREMENT OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 FOREST OAKS OWNER, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 SPRING HAVEN LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 LAKE MORTON PLAZA LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 RENAISSANCE RETIREMENT LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 5 FOREST OAKS LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Stefan Oh
|
Name:
|
Stefan K.L. Oh
|
Title:
|
Authorized Signatory
|
NIC 4 BAYSIDE TERRACE OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BALMORAL OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BRADENTON OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 THE GRANDE OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 SPRING OAKS OWNER LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BAYSIDE TERRACE LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BALMORAL LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 BRADENTON OAKS LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 THE GRANDE LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
NIC 4 SPRING OAKS LEASING, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Ivy Hernandez
|
Name:
|
Ivy Hernandez
|
Title
|
Vice President
|
GAHC4 CENTRAL FL SENIOR HOUSING PORTFOLIO, LLC,
|
|
a Delaware limited liability company
|
|
|
|
By:
|
/s/ Stefan Oh
|
Name:
|
Stefan K.L. Oh
|
Title:
|
Authorized Signatory
|
November 9, 2017
|
|
By:
|
|
/s/ J
EFFREY
T. H
ANSON
|
Date
|
|
|
|
Jeffrey T. Hanson
|
|
|
|
|
Chief Executive Officer and Chairman of the Board of Directors
|
|
|
|
|
(Principal Executive Officer)
|
November 9, 2017
|
|
By:
|
|
/s/ B
RIAN
S. P
EAY
|
Date
|
|
|
|
Brian S. Peay
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
November 9, 2017
|
|
By:
|
|
/s/ J
EFFREY
T. H
ANSON
|
Date
|
|
|
|
Jeffrey T. Hanson
|
|
|
|
|
Chief Executive Officer and Chairman of the Board of Directors
|
|
|
|
|
(Principal Executive Officer)
|
November 9, 2017
|
|
By:
|
|
/s/ B
RIAN
S. P
EAY
|
Date
|
|
|
|
Brian S. Peay
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|