Griffin-American Healthcare REITs, Possible Merger Plans

Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV Discuss “Strategic Alternatives” While Declaring Decrease in NAVs

Are you concerned about your investment in Griffin-American Healthcare REIT III? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

According to an article in the DI Wire on March 22, 2021, Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV Inc., two affiliated non-traded REITs, are currently investigating and analyzing “strategic alternatives”, which may indicate plans to merge in the future.

The two REITs apparently reported to the Securities and Exchange Commission that each REIT, through special committees last October was to investigate and analyze strategic alternatives, and  also declared new decreased net asset values per share for their respective common stock.

According to the DI Wire, “strategic alternatives typically include the sale of the company’s assets, a listing of its shares on a national securities exchange, or a merger with another entity, including a merger with another non-traded entity.”

Griffin-American Healthcare REIT III declared a new net asset value of $8.55 each, as of September 30, 2020, a decline of 9 percent compared to the previous valuation of $9.40 per share, as of June 30, 2019, according to filings with the SEC.

As of September 30, 2020, Griffin-American Healthcare REIT IV’s Class T and Class I shares were valued at $9.22 each, a decline of 3.4 percent compared to the previous NAV of $9.54, as of December 31, 2019. Shares were originally sold for $10.00 per share. 

In January 2021, we reported that Griffin-American Healthcare REIT III’ board urged shareholders to reject a tender offer by Comrit Investments 1, Limited Partnership, to purchase up to 554,529 shares of the REIT’s common stock for $5.41 each. 

Lack of Liquidity – A Risk of Non-Traded REITs

Investors looking to sell alternative investments, like Griffin-American Healthcare REITs often have difficulty finding a buyer, and can suffer significant losses on the sale.

Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended Griffin-American Healthcare REITs and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.

The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

Visit the firm’s homepage to learn more about the firm’s representation of investors.