SANTA ANA, Calif., Aug. 11, 2011 /PRNewswire/ -- Grubb & Ellis
Healthcare REIT II, Inc. today announced operating results for the
company's second quarter ended June 30,
2011.
"Grubb & Ellis Healthcare REIT II experienced tremendous
growth during the second quarter of 2011," said Danny Prosky, president and chief operating
officer. "During the quarter we increased the size of our portfolio
by approximately 78 percent since the end of the first quarter,
acquiring $180.7 million worth of
accretive clinical healthcare properties and expanding our total
portfolio size to $411.5 million,
based on purchase price."
Second Quarter 2011 Highlights and Recent
Accomplishments
- Completed second quarter acquisitions totaling $180.7 million, based on purchase price.
- Declared and paid quarterly distributions to stockholders of
record equal to an annualized rate of 6.5 percent, or a quarterly
distribution of $0.16 per share,
based upon a $10.00 per share
offering price. The company's board of directors intends to
continue to declare distributions on a quarterly basis.
- Second quarter modified funds from operations, or MFFO, as
defined by the Investment Program Association, or IPA, was
approximately $3.5 million, nearly 46
percent more than the $2.4 million in
the first quarter of 2011. Funds from operations, or FFO, equaled
$(3.6) million, largely due to the
significant costs associated with the company's $180.7 million in acquisitions during the
quarter, compared with $1.3 million
in the first quarter of 2011. (Quarter-over-quarter growth in MFFO
is due to the acquisition of additional properties. Please see
financial reconciliation tables and notes at the end of this
release for more information regarding modified funds from
operations and funds from operations.)
- Net operating income, or NOI, totaled approximately
$6.9 million in the second quarter of
2011, an increase of more than 43 percent compared to the
$4.8 million achieved in the first
quarter of 2011. The company reported a net loss equal to
$6.9 million, largely due to the
significant costs associated with the company's $180.7 million in acquisitions during the
quarter, compared to $885,000 in the
first quarter of 2011. (Quarter-over-quarter growth in NOI is
primarily due to the acquisition of additional properties. Please
see financial reconciliation tables and notes at the end of this
release for more information regarding NOI and net
income/loss.)
- The company's property portfolio achieved an aggregate average
occupancy of 96.9 percent as of June 30,
2011 and had leverage of 43.1 percent. The portfolio's
average remaining lease term was 10.2 years at the close of the
second quarter, based on leases in effect as of June 30, 2011.
- In May, the company modified its secured revolving line of
credit with Bank of America, N.A., expanding available credit to
$45 million from $25 million and lowering the interest rate to
LIBOR plus 3.50 percent from LIBOR plus 3.75 percent. An all-in
interest rate floor of 5 percent was also eliminated. As of
June 30, 2011, the company's
aggregate borrowing capacity under the Bank of America line of
credit was $31.1 million.
- In June, the company entered into a secured revolving credit
facility with KeyBank National Association of $71.5 million that can be increased to
$100 million upon meeting certain
conditions. As of June 30, 2011, the
aggregate borrowing capacity under the KeyBank National Association
line of credit was $71.1
million.
Second Quarter 2011 and Recent Acquisition Highlights
- In April, the company acquired Lakewood Ranch Medical Office
Building in Bradenton, Fla., for
$12.5 million; Hardy Oak Medical
Building in San Antonio for
$8.1 million; and Yuma Skilled
Nursing Facility in Yuma, Ariz.,
for $11.0 million.
- In May, the company completed the $30.1
million acquisition of the 10 building Dixie-Lobo Medical
Office Building Portfolio in Arkansas, Louisiana, New
Mexico and Texas.
- Also in May, the company acquired Jersey City Medical Office
Building in New Jersey for
$28.7 million and three medical
office buildings in Benton and
Bryant, Ark., for $15.4 million.
- In June, the company acquired the Philadelphia Skilled Nursing
Facility Portfolio, a collection of five skilled nursing facilities
located throughout Philadelphia
for $75.0 million.
- Total portfolio value grew to nearly $411.5 million, based on purchase price, at the
close of the second quarter 2011 from $230.8
million at the close of the first quarter 2011.
- Subsequent to the close of the second quarter, the company
acquired Maxfield Medical Office Building in Sarasota, Fla. for $7.2
million.
According to Chairman and Chief Executive Officer Jeff Hanson, "As our second quarter results
demonstrate, Grubb & Ellis Healthcare REIT II continues to
achieve impressive quarterly growth, and we believe we are meeting
our primary goals to provide a responsible and sustainable investor
distribution and to provide superior long-term financial
performance."
As of June 30, 2011, Grubb &
Ellis Healthcare REIT II had sold approximately 29,270,824 shares
of its common stock, excluding the shares issued under its
distribution reinvestment plan, for approximately $292,093,000 through its initial public
offering.
To date, the REIT has made 22 geographically diverse
acquisitions comprised of 53 buildings valued at approximately
$411.5 million, based on purchase
price in the aggregate. Since March 31,
2011, the aggregate value of the Grubb & Ellis
Healthcare REIT II portfolio has increased by more than 78 percent,
based on purchase price.
FINANCIAL
TABLES AND NOTES FOLLOW
GRUBB &
ELLIS HEALTHCARE REIT II, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
As of June
30, 2011 and December 31, 2010
(Unaudited)
|
|
|
|
|
|
June 30,
2011
|
|
December 31,
2010
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
Real estate
investments:
|
|
|
|
|
|
|
|
Operating properties,
net
|
$
|
350,726,000
|
|
$
|
163,335,000
|
|
Cash and cash
equivalents
|
|
8,924,000
|
|
|
6,018,000
|
|
Accounts and other receivables,
net
|
|
1,050,000
|
|
|
241,000
|
|
Restricted cash
|
|
2,679,000
|
|
|
2,816,000
|
|
Real estate and escrow
deposits
|
|
150,000
|
|
|
649,000
|
|
Identified intangible assets,
net
|
|
64,484,000
|
|
|
28,568,000
|
|
Other assets, net
|
|
5,542,000
|
|
|
2,369,000
|
|
|
Total assets
|
$
|
433,555,000
|
|
$
|
203,996,000
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Mortgage loans payable,
net
|
$
|
83,388,000
|
|
$
|
58,331,000
|
|
|
Lines of credit
|
|
93,139,000
|
|
|
11,800,000
|
|
|
Accounts payable and accrued
liabilities
|
|
6,285,000
|
|
|
3,356,000
|
|
|
Accounts payable due to
affiliates
|
|
1,241,000
|
|
|
840,000
|
|
|
Derivative financial
instruments
|
|
678,000
|
|
|
453,000
|
|
|
Identified intangible
liabilities, net
|
|
621,000
|
|
|
502,000
|
|
|
Security deposits, prepaid rent
and other liabilities
|
|
9,958,000
|
|
|
3,352,000
|
|
|
|
Total liabilities
|
|
195,310,000
|
|
|
78,634,000
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par
value; 200,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
|
none issued and
outstanding
|
|
—
|
|
|
—
|
|
|
|
Common stock, $0.01 par
value; 1,000,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
|
29,784,139 and
15,452,668 shares issued and outstanding
|
|
|
|
|
|
|
|
|
|
as of June 30, 2011 and December
31, 2010, respectively
|
|
298,000
|
|
|
154,000
|
|
|
|
Additional paid-in
capital
|
|
265,215,000
|
|
|
137,657,000
|
|
|
|
Accumulated deficit
|
|
(27,390,000)
|
|
|
(12,571,000)
|
|
|
|
|
Total stockholders'
equity
|
|
238,123,000
|
|
|
125,240,000
|
|
|
Noncontrolling
interests
|
|
122,000
|
|
|
122,000
|
|
|
|
Total equity
|
|
238,245,000
|
|
|
125,362,000
|
|
|
|
|
Total liabilities and
equity
|
$
|
433,555,000
|
|
$
|
203,996,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRUBB &
ELLIS HEALTHCARE REIT II, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
For the
Three and Six Months Ended June 30, 2011 and 2010
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
$
|
8,675,000
|
|
$
|
1,142,000
|
|
$
|
14,682,000
|
|
$
|
1,203,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental expenses
|
|
1,817,000
|
|
|
390,000
|
|
|
3,020,000
|
|
|
407,000
|
|
|
General and
administrative
|
|
1,458,000
|
|
|
360,000
|
|
|
2,379,000
|
|
|
545,000
|
|
|
Acquisition related
expenses
|
|
7,236,000
|
|
|
1,695,000
|
|
|
8,785,000
|
|
|
2,332,000
|
|
|
Depreciation and
amortization
|
|
3,274,000
|
|
|
536,000
|
|
|
5,476,000
|
|
|
565,000
|
|
|
|
Total expenses
|
|
13,785,000
|
|
|
2,981,000
|
|
|
19,660,000
|
|
|
3,849,000
|
|
Loss from
operations
|
|
(5,110,000)
|
|
|
(1,839,000)
|
|
|
(4,978,000)
|
|
|
(2,646,000)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (including
amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred financing costs
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
debt discount and
premium):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,473,000)
|
|
|
(108,000)
|
|
|
(2,568,000)
|
|
|
(109,000)
|
|
|
|
Loss in fair value of
derivative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financial instruments
|
|
(299,000)
|
|
|
(120,000)
|
|
|
(225,000)
|
|
|
(120,000)
|
|
|
Interest income
|
|
2,000
|
|
|
8,000
|
|
|
6,000
|
|
|
13,000
|
|
Net loss
|
|
(6,880,000)
|
|
|
(2,059,000)
|
|
|
(7,765,000)
|
|
|
(2,862,000)
|
|
|
Less: net income attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
|
(1,000)
|
|
|
—
|
|
|
(1,000)
|
|
|
—
|
|
Net loss attributable to
controlling interest
|
$
|
(6,881,000)
|
|
$
|
(2,059,000)
|
|
$
|
(7,766,000)
|
|
$
|
(2,862,000)
|
|
Net loss per common share
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
controlling interest — basic and
diluted
|
$
|
(0.27)
|
|
$
|
(0.37)
|
|
$
|
(0.36)
|
|
$
|
(0.69)
|
|
Weighted average number of
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding — basic and
diluted
|
|
25,543,273
|
|
|
5,558,762
|
|
|
21,864,450
|
|
|
4,132,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per
common share
|
$
|
0.16
|
|
$
|
0.16
|
|
$
|
0.33
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRUBB & ELLIS HEALTHCARE REIT II, INC.
NET OPERATING INCOME RECONCILIATION
For the Three and Six Months Ended June
30, 2011 and 2010
(Unaudited)
Net operating income is a financial measure that does not
conform to accounting principles generally accepted in the United States of America, or GAAP, or a
non-GAAP measure. It is defined as net income (loss), computed in
accordance with GAAP, generated from properties before general and
administrative expenses, acquisition related expenses, depreciation
and amortization, interest expense and interest income. The company
believes that net operating income is useful for investors as it
provides an accurate measure of the operating performance of its
operating assets because net operating income excludes certain
items that are not associated with the management of the
properties. Additionally, the company believes that net operating
income is a widely accepted measure of comparative operating
performance in the real estate community. However, the company's
use of the term net operating income may not be comparable to that
of other real estate companies as they may have different
methodologies for computing this amount.
The following is a reconciliation of net loss, which is the most
directly comparable GAAP financial measure, to net operating income
for the three and six months ended June 30,
2011 and 2010 (unaudited):
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(6,880,000)
|
|
$
|
(2,059,000)
|
|
$
|
(7,765,000)
|
|
$
|
(2,862,000)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
1,458,000
|
|
|
360,000
|
|
|
2,379,000
|
|
|
545,000
|
|
|
Acquisition related
expenses
|
|
7,236,000
|
|
|
1,695,000
|
|
|
8,785,000
|
|
|
2,332,000
|
|
|
Depreciation and
amortization
|
|
3,274,000
|
|
|
536,000
|
|
|
5,476,000
|
|
|
565,000
|
|
|
Interest expense
|
|
1,772,000
|
|
|
228,000
|
|
|
2,793,000
|
|
|
229,000
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
(2,000)
|
|
|
(8,000)
|
|
|
(6,000)
|
|
|
(13,000)
|
|
Net operating income
|
$
|
6,858,000
|
|
$
|
752,000
|
|
$
|
11,662,000
|
|
$
|
796,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRUBB & ELLIS HEALTHCARE REIT II, INC.
FFO AND MFFO RECONCILIATION
For the Three and Six Months Ended June
30, 2011 and 2010
(Unaudited)
Due to certain unique operating characteristics of real estate
companies, the National Association of Real Estate Investment
Trusts, or NAREIT, an industry trade group, has promulgated a
measure known as funds from operations, or FFO, which the company
believes to be an appropriate supplemental measure to reflect the
operating performance of a real estate investment trust, or REIT.
The use of FFO is recommended by the REIT industry as a
supplemental performance measure. FFO is not equivalent to our net
income or loss as determined under GAAP.
The company defines FFO, a non-GAAP measure, consistent with the
standards established by the White Paper on FFO approved by the
Board of Governors of NAREIT, as revised in February 2004, or
the White Paper. The White Paper defines FFO as net income or loss
computed in accordance with GAAP, excluding gains or losses from
sales of property but including asset impairment writedowns, plus
depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures are calculated to
reflect FFO. The company's FFO calculation complies with NAREIT's
policy described above.
The historical accounting convention used for real estate assets
requires straight-line depreciation of buildings and improvements,
which implies that the value of real estate assets diminishes
predictably over time. Since real estate values historically rise
and fall with market conditions, presentations of operating results
for a REIT, using historical accounting for depreciation, the
company believes, may be less informative. As a result, the company
believes that the use of FFO, which excludes the impact of real
estate related depreciation and amortization, provides a more
complete understanding of the company's performance to investors
and to management, and when compared year over year, reflects the
impact on the company's operations from trends in occupancy rates,
rental rates, operating costs, general and administrative expenses,
and interest costs, which is not immediately apparent from net
income or loss.
However, changes in the accounting and reporting rules under
GAAP (for acquisition fees and expenses from a
capitalization/depreciation model to an expensed-as-incurred model)
that have been put into effect since the establishment of NAREIT's
definition of FFO have prompted an increase in the non-cash and
non-operating items included in FFO. In addition, the company views
fair value adjustments of derivatives, and impairment charges and
gains and losses from dispositions of assets as items which are
typically adjusted for when assessing operating performance.
Lastly, publicly registered, non-listed REITs typically have a
significant amount of acquisition activity and are substantially
more dynamic during their initial years of investment and operation
and therefore require additional adjustments to FFO in evaluating
performance. Due to these and other unique features of publicly
registered, non-listed REITs, the Investment Program Association,
or IPA, an industry trade group, has standardized a measure known
as modified funds from operations, or MFFO, which the company
believes to be another appropriate supplemental measure to reflect
the operating performance of a REIT. The use of MFFO is recommended
by the IPA as a supplemental performance measure for publicly
registered, non-listed REITs. MFFO is a metric used by management
to evaluate sustainable performance and distribution policy. In
evaluating the performance of our portfolio over time, management
employs business models and analyses that differentiate the costs
to acquire investments from the investments' revenues and expenses.
Management believes that excluding acquisition costs from MFFO
provides investors with supplemental performance information that
is consistent with the performance models and analysis used by
management, and provides investors a view of the performance of our
portfolio over time, including after the time we cease to acquire
properties on a frequent and regular basis. MFFO may provide
investors with a useful indication of our future performance,
particularly after our acquisition stage, and of the sustainability
of our current distribution policy. However, because MFFO excludes
acquisition expenses, which are an important component in an
analysis of financial performance, MFFO should not be construed as
a historical performance measure. MFFO is not equivalent to the
company's net income or loss as determined under GAAP.
The company defines MFFO, a non-GAAP measure, consistent with
the IPA's Guideline 2010-01, Supplemental Performance Measure for
Publicly Registered, Non-Listed REITs: Modified Funds from
Operations, or the Practice Guideline, issued by the IPA in
November 2010. The Practice Guideline
defines MFFO as FFO further adjusted for the following items
included in the determination of GAAP net income (loss):
acquisition fees and expenses; amounts relating to deferred rent
receivables and amortization of above and below market leases and
liabilities; accretion of discounts and amortization of premiums on
debt investments; nonrecurring impairments of real estate-related
investments; mark-to-market adjustments included in net income;
nonrecurring gains or losses included in net income from the
extinguishment or sale of debt, hedges, foreign exchange,
derivatives or securities holdings where trading of such holdings
is not a fundamental attribute of the business plan, unrealized
gains or losses resulting from consolidation from, or
deconsolidation to, equity accounting, and after adjustments for
consolidated and unconsolidated partnerships and joint ventures,
with such adjustments calculated to reflect MFFO on the same basis.
The company's MFFO calculation complies with the IPA's Practice
Guideline described above. In calculating MFFO, the company
excludes acquisition related expenses, amortization of above and
below market leases, fair value adjustments of derivative financial
instruments, gains or losses from the extinguishment of debt,
deferred rent receivables and the adjustments of such items related
to noncontrolling interests. The other adjustments included in the
IPA's Practice Guideline are not applicable to the company for the
three and six months ended June 30,
2011 and 2010.
Presentation of this information is intended to assist in
comparing the operating performance of different REITs, although it
should be noted that not all REITs calculate FFO and MFFO the same
way, so comparisons with other REITs may not be meaningful.
Furthermore, FFO and MFFO are not necessarily indicative of cash
flow available to fund cash needs and should not be considered as
an alternative to net income (loss) as an indication of the
company's performance, as an indication of its liquidity, or
indicative of funds available to fund its cash needs including its
ability to make distributions to its stockholders. FFO and MFFO
should be reviewed in conjunction with other measurements as an
indication of the company's performance.
The following is a reconciliation of net loss, which is the most
directly comparable GAAP financial measure, to FFO and MFFO for the
three and six months ended June 30,
2011 and 2010 (unaudited):
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(6,880,000)
|
|
$
|
(2,059,000)
|
|
$
|
(7,765,000)
|
|
$
|
(2,862,000)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— consolidated
properties
|
|
3,274,000
|
|
|
536,000
|
|
|
5,476,000
|
|
|
565,000
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
|
(1,000)
|
|
|
—
|
|
|
(1,000)
|
|
|
—
|
|
|
Depreciation and amortization
related to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
|
(3,000)
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
FFO
|
$
|
(3,610,000)
|
|
$
|
(1,523,000)
|
|
$
|
(2,295,000)
|
|
$
|
(2,297,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses
|
$
|
7,236,000
|
|
$
|
1,695,000
|
|
$
|
8,785,000
|
|
$
|
2,332,000
|
|
|
Amortization of above and below
market leases
|
|
80,000
|
|
|
21,000
|
|
|
125,000
|
|
|
21,000
|
|
|
Loss in fair value of derivative
financial instruments
|
|
299,000
|
|
|
120,000
|
|
|
225,000
|
|
|
120,000
|
|
|
Loss on extinguishment of
debt
|
|
—
|
|
|
—
|
|
|
42,000
|
|
|
—
|
|
|
Deferred rent receivables
related to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling
interests
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent
receivables
|
|
(464,000)
|
|
|
(73,000)
|
|
|
(913,000)
|
|
|
(84,000)
|
|
MFFO
|
$
|
3,541,000
|
|
$
|
240,000
|
|
$
|
5,970,000
|
|
$
|
92,000
|
|
Weighted average common
shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding — basic and
diluted
|
|
25,543,273
|
|
|
5,558,762
|
|
|
21,864,450
|
|
|
4,132,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share —
basic and diluted
|
$
|
(0.27)
|
|
$
|
(0.37)
|
|
$
|
(0.36)
|
|
$
|
(0.69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per common share — basic and
diluted
|
$
|
(0.14)
|
|
$
|
(0.27)
|
|
$
|
(0.10)
|
|
$
|
(0.56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MFFO per common share — basic
and diluted
|
$
|
0.14
|
|
$
|
0.04
|
|
$
|
0.27
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Grubb & Ellis Healthcare REIT II
Grubb & Ellis Healthcare REIT II, Inc. intends to qualify as
a real estate investment trust that seeks to preserve, protect and
return investors' capital contributions, pay regular cash
distributions, and realize growth in the value of its investments
upon the ultimate sale of such investments. Grubb & Ellis
Healthcare REIT II is seeking to raise up to approximately
$3 billion in equity and to acquire a
diversified portfolio of real estate assets, focusing primarily on
medical office buildings and other healthcare-related facilities.
Grubb & Ellis Healthcare REIT II is sponsored by Grubb &
Ellis Company (NYSE: GBE). Grubb & Ellis is one of the largest
and most respected commercial real estate services and investment
companies in the world. Grubb & Ellis Company's 5,000
professionals in more than 109 company-owned and affiliate offices
draw from a unique platform of real estate services, practice
groups and investment products to deliver comprehensive, integrated
solutions to real estate owners, tenants and investors. The firm's
transaction, management, consulting and investment services are
supported by highly regarded proprietary market research and
extensive local expertise. Through its investment subsidiaries, the
company is a leading sponsor of real estate investment programs
that provide individuals and institutions the opportunity to invest
in a broad range of real estate investment vehicles, including
publicly registered non-traded REITs, mutual funds, separate
accounts and other real estate investment funds. For more
information, visit www.grubb-ellis.com.
This release contains certain forward-looking statements with
respect to the success of our company, our ability to provide our
investors distribution sustainability and superior long-term
financial performance, whether we will be able to maintain our
current distribution rate, whether we can continue to improve our
net operating income, funds from operations and modified funds from
operations, whether we can maintain the financial results
experienced in the quarter ended June 30,
2011, whether we can continue to achieve impressive
quarter-over-quarter growth, and whether we can continue to raise
sufficient equity in our initial public offering and deploy it
efficiently by acquiring assets. Because such statements
include risks, uncertainties and contingencies, actual results may
differ materially from those expressed or implied by such
forward-looking statements. These risks, uncertainties and
contingencies include, but are not limited to, the following: our
strength and financial condition and uncertainties relating to the
financial strength of our current and future real estate
investments; uncertainties relating to our ability to continue to
maintain the current coverage of our investor distributions;
uncertainties relating to the local economies where our real estate
investments are located; uncertainties relating to changes in
general economic and real estate conditions; uncertainties
regarding changes in the healthcare industry; uncertainties
relating to the implementation of recent healthcare legislation;
the uncertainties relating to the implementation of our real estate
investment strategy; and other risk factors as outlined in the
company's prospectus, as amended from time to time, and as detailed
from time to time in our periodic reports, as filed with the U.S.
Securities and Exchange Commission. Forward-looking
statements in this document speak only as of the date on which such
statements were made, and we undertake no obligation to update any
such statements that may become untrue because of subsequent
events.
THIS IS NEITHER AN OFFER TO SELL NOR AN OFFER TO BUY ANY
SECURITIES DESCRIBED HEREIN. OFFERINGS ARE MADE ONLY BY MEANS
OF A PROSPECTUS.
SOURCE Grubb & Ellis Healthcare REIT II, Inc.