10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2018

or

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to

Commission File Number: 000-55775

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

(Exact name of registrant as specified in its charter)

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)

(949) 270-9200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

___________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	o
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨  Yes   x  No

As of May 4, 2018, there were 47,577,751 shares of Class T common stock and 2,821,458 shares of Class I common stock of Griffin-American Healthcare REIT IV, Inc. outstanding.

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

(A Maryland Corporation)

TABLE OF CONTENTS

	Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017	3
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2018 and 2017	5
Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2018 and 2017	6
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2018 and 2017	7
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3. Quantitative and Qualitative Disclosures About Market Risk	48
Item 4. Controls and Procedures	49
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	50
Item 1A. Risk Factors	50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 3. Defaults Upon Senior Securities	59
Item 4. Mine Safety Disclosures	59
Item 5. Other Information	59
Item 6. Exhibits	60
Signatures	61

2

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2018 and December 31, 2017

(Unaudited)

	March 31, 2018			December 31, 2017
ASSETS
Real estate investments, net	$	437,688,000		$	419,665,000
Cash and cash equivalents	9,158,000			7,087,000
Accounts and other receivables, net	4,985,000			2,838,000
Restricted cash	16,000			16,000
Real estate deposits	2,075,000			500,000
Identified intangible assets, net	43,920,000			44,821,000
Other assets, net	5,800,000			5,226,000
Total assets	$	503,642,000		$	480,153,000
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage loans payable, net(1)	$	11,483,000		$	11,567,000
Line of credit and term loan(1)	62,300,000			84,100,000
Accounts payable and accrued liabilities(1)	21,995,000			19,428,000
Accounts payable due to affiliates(1)	8,146,000			8,118,000
Identified intangible liabilities, net	1,653,000			1,737,000
Security deposits, prepaid rent and other liabilities(1)	1,694,000			977,000
Total liabilities	107,271,000			125,927,000
Commitments and contingencies (Note 9)
Redeemable noncontrolling interests (Note 10)	1,002,000			1,002,000
Stockholders’ equity:
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding	—			—
Class T common stock, $0.01 par value per share; 900,000,000 shares authorized; 45,226,189 and 39,972,049 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	452,000			400,000
Class I common stock, $0.01 par value per share; 100,000,000 shares authorized; 2,637,800 and 2,235,111 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively	26,000			22,000
Additional paid-in capital	427,228,000			376,284,000
Accumulated deficit	(32,337,000		)	(23,482,000		)
Total stockholders’ equity	395,369,000			353,224,000
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	503,642,000		$	480,153,000

___________

3

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS — (Continued)

As of March 31, 2018 and December 31, 2017

(Unaudited)

(1) Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

	Three Months Ended March 31,
	2018			2017
Revenues:
Real estate revenue	$	9,433,000		$	4,052,000
Resident fees and services	8,409,000			—
Total revenues	17,842,000			4,052,000
Expenses:
Rental expenses	2,351,000			1,187,000
Property operating expenses	7,233,000			—
General and administrative	2,120,000			748,000
Acquisition related expenses	95,000			73,000
Depreciation and amortization	7,195,000			1,711,000
Total expenses	18,994,000			3,719,000
Interest expense (including amortization of deferred financing costs and debt premium)	(1,084,000		)	(418,000		)
Net loss	(2,236,000		)	(85,000		)
Less: net loss attributable to redeemable noncontrolling interests	67,000			—
Net loss attributable to controlling interest	$	(2,169,000	)	$	(85,000	)
Net loss per Class T and Class I common share attributable to controlling interest — basic and diluted	$	(0.05	)	$	(0.01	)
Weighted average number of Class T and Class I common shares outstanding — basic and diluted	45,136,647			14,655,107
Distributions declared per Class T and Class I common share	$	0.15		$	0.15

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

	Class T and Class I Common Stock
	Number of Shares		Amount		Additional Paid-In Capital			Accumulated Deficit			Total Stockholders’ Equity
BALANCE — December 31, 2017	42,207,160		$	422,000	$	376,284,000		$	(23,482,000	)	$	353,224,000
Issuance of common stock	5,314,261		53,000		52,767,000			—			52,820,000
Offering costs — common stock	—		—		(4,992,000		)	—			(4,992,000		)
Issuance of common stock under the DRIP	383,756		3,000		3,603,000			—			3,606,000
Amortization of nonvested common stock compensation	—		—		30,000			—			30,000
Repurchase of common stock	(41,188	)	—		(397,000		)	—			(397,000		)
Fair value adjustment to redeemable noncontrolling interests	—		—		(67,000		)	—			(67,000		)
Distributions declared	—		—		—			(6,686,000		)	(6,686,000		)
Net loss	—		—		—			(2,169,000		)	(2,169,000		)	(1)
BALANCE — March 31, 2018	47,863,989		$	478,000	$	427,228,000		$	(32,337,000	)	$	395,369,000

	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	7,609,328	76,000		75,539,000			—			75,615,000
Offering costs — common stock	—	—		(7,608,000		)	—			(7,608,000		)
Issuance of common stock under the DRIP	113,147	1,000		1,062,000			—			1,063,000
Amortization of nonvested common stock compensation	—	—		14,000			—			14,000
Distributions declared	—	—		—			(2,171,000		)	(2,171,000		)
Net loss	—	—		—			(85,000		)	(85,000		)
BALANCE — March 31, 2017	19,099,914	$	191,000	$	168,499,000		$	(9,607,000	)	$	159,083,000

___________

(1) Amount excludes $(67,000) of net loss attributable to redeemable noncontrolling interests for the three months ended March 31, 2018. See Note 10, Redeemable Noncontrolling Interests, for a further discussion.

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

	Three Months Ended March 31,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,236,000	)	$	(85,000	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,195,000			1,711,000
Other amortization (including deferred financing costs, above/below-market leases, leasehold interests, above-market leasehold interests and debt premium)	207,000			77,000
Deferred rent	(633,000		)	(273,000		)
Stock based compensation	30,000			14,000
Share discounts	—			3,000
Bad debt expense	347,000			14,000
Changes in operating assets and liabilities:
Accounts and other receivables	(1,807,000		)	50,000
Other assets	(98,000		)	(422,000		)
Accounts payable and accrued liabilities	1,378,000			429,000
Accounts payable due to affiliates	18,000			37,000
Security deposits, prepaid rent and other liabilities	291,000			(165,000		)
Net cash provided by operating activities	4,692,000			1,390,000
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of real estate investments	(23,190,000		)	(74,714,000		)
Capital expenditures	(687,000		)	(39,000		)
Real estate deposits	(1,575,000		)	(800,000		)
Pre-acquisition expenses	(42,000		)	—
Net cash used in investing activities	(25,494,000		)	(75,553,000		)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on mortgage loans payable	(96,000		)	(62,000		)
Borrowings under the line of credit and term loan	22,600,000			60,000,000
Payments on the line of credit and term loan	(44,400,000		)	(58,300,000		)
Proceeds from issuance of common stock	52,094,000			76,125,000
Deferred financing costs	(2,000		)	(14,000		)
Repurchase of common stock	(397,000		)	—
Payment of offering costs	(4,125,000		)	(3,009,000		)
Security deposits	(2,000		)	—
Distributions paid	(2,799,000		)	(755,000		)
Net cash provided by financing activities	22,873,000			73,985,000
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	2,071,000			(178,000		)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period	7,103,000			2,237,000
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period	$	9,174,000		$	2,059,000
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Beginning of period:
Cash and cash equivalents	$	7,087,000		$	2,237,000
Restricted cash	16,000			—
Cash, cash equivalents and restricted cash	$	7,103,000		$	2,237,000

7

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued)

For the Three Months Ended March 31, 2018 and 2017

(Unaudited)

	Three Months Ended March 31,
	2018		2017
End of period:
Cash and cash equivalents	$	9,158,000	$	2,059,000
Restricted cash	16,000		—
Cash, cash equivalents and restricted cash	$	9,174,000	$	2,059,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for:
Interest	$	879,000	$	356,000
Income taxes	$	1,000	$	2,000
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
Investing Activities:
Accrued capital expenditures	$	1,285,000	$	669,000
Accrued pre-acquisition expenses	$	119,000	$	—
Tenant improvement overage	$	429,000	$	—
The following represents the increase in certain assets and liabilities in connection with our acquisitions of real estate investments:
Other assets	$	8,000	$	103,000
Accounts payable and accrued liabilities	$	112,000	$	125,000
Security deposits and prepaid rent	$	—	$	360,000
Financing Activities:
Issuance of common stock under the DRIP	$	3,606,000	$	1,063,000
Distributions declared but not paid	$	2,398,000	$	885,000
Accrued Contingent Advisor Payment	$	7,760,000	$	7,456,000
Accrued stockholder servicing fee	$	13,423,000	$	6,540,000
Receivable from transfer agent	$	1,158,000	$	521,000

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

For the Three Months Ended March 31, 2018 and 2017

The use of the words “we,” “us” or “our” refers to Griffin-American Healthcare REIT IV, Inc. and its subsidiaries, including Griffin-American Healthcare REIT IV Holdings, LP, except where the context otherwise requires.

1. Organization and Description of Business

Griffin-American Healthcare REIT IV, Inc., a Maryland corporation, was incorporated on January 23, 2015 and therefore we consider that our date of inception. We were initially capitalized on February 6, 2015. We invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. We also operate healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a “RIDEA” structure (the provisions of the Internal Revenue Code of 1986, as amended, or the Code, authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We may also originate and acquire secured loans and real estate-related investments on an infrequent and opportunistic basis. We generally seek investments that produce current income. We qualified to be taxed as a real estate investment trust, or REIT, under the Code for federal income tax purposes beginning with our taxable year ended December 31, 2016, and we intend to continue to qualify to be taxed as a REIT.

On February 16, 2016, we commenced our initial public offering, or our offering, in which we were initially offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to our distribution reinvestment plan, as amended, or the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of Class T common stock being offered and began offering shares of Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP, aggregating up to $3,150,000,000.

The shares of our Class T common stock in our primary offering were being offered at a price of $10.00 per share prior to April 11, 2018. The shares of our Class I common stock in our primary offering were being offered at a price of $9.30 per share prior to March 1, 2017 and $9.21 per share from March 1, 2017 to April 10, 2018. The shares of our Class T and Class I common stock issued pursuant to the DRIP were sold at a price of $9.50 per share prior to January 1, 2017 and $9.40 per share from January 1, 2017 to April 10, 2018. On April 6, 2018, our board of directors, at the recommendation of the audit committee of our board of directors, comprised solely of independent directors, unanimously approved and established an estimated per share net asset value, or NAV, of our common stock of $9.65. As a result, on April 6, 2018, our board of directors unanimously approved revised offering prices for each class of shares of our common stock to be sold in the primary portion of our initial public offering based on the estimated per share NAV of our Class T and Class I common stock of $9.65 plus any applicable per share up-front selling commissions and dealer manager fees funded by us, effective April 11, 2018. Accordingly, the revised offering price for shares of our Class T common stock and Class I common stock sold pursuant to our primary offering on or after April 11, 2018 is $10.05 per share and $9.65 per share, respectively. Effective April 11, 2018, the shares of our Class T and Class I common stock issued pursuant to the DRIP are sold at a price of $9.65 per share, the most recent estimated per share NAV approved and established by our board of directors.

We will sell shares of our Class T and Class I common stock in our offering until February 16, 2019, unless extended by our board of directors as permitted under applicable law, or extended with respect to shares of our common stock offered pursuant to the DRIP. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock. As of March 31, 2018, we had received and accepted subscriptions in our offering for 46,532,759 aggregate shares of our Class T and Class I common stock, or approximately $462,971,000, excluding shares of our common stock issued pursuant to the DRIP.

We conduct substantially all of our operations through Griffin-American Healthcare REIT IV Holdings, LP, or our operating partnership. We are externally advised by Griffin-American Healthcare REIT IV Advisor, LLC, or our advisor, pursuant to an advisory agreement, or the Advisory Agreement, between us and our advisor. The Advisory Agreement was effective as of February 16, 2016 and had a one-year term, subject to successive one-year renewals upon the mutual consent of the parties. The Advisory Agreement was last renewed pursuant to the mutual consent of the parties on February 14, 2018 and expires on February 16, 2019. Our advisor uses its best efforts, subject to the oversight and review of our board of directors, to, among other things, research, identify, review and make investments in and dispositions of properties and securities on our behalf consistent with our investment policies and objectives. Our advisor performs its duties and responsibilities under the Advisory Agreement as our fiduciary. Our advisor is 75.0% owned and managed by American Healthcare Investors, LLC, or

9

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

American Healthcare Investors, and 25.0% owned by a wholly owned subsidiary of Griffin Capital Company, LLC, or Griffin Capital, or collectively, our co-sponsors. American Healthcare Investors is 47.1% owned by AHI Group Holdings, LLC, or AHI Group Holdings, 45.1% indirectly owned by Colony NorthStar, Inc. (NYSE: CLNS), or Colony NorthStar, and 7.8% owned by James F. Flaherty III, a former partner of Colony NorthStar. We are not affiliated with Griffin Capital, Griffin Capital Securities, LLC, or our dealer manager, Colony NorthStar or Mr. Flaherty; however, we are affiliated with Griffin-American Healthcare REIT IV Advisor, American Healthcare Investors and AHI Group Holdings.

We currently operate through four reportable business segments — medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities. As of March 31, 2018, we had completed 19 property acquisitions whereby we owned 40 properties, comprising 42 buildings, or approximately 2,553,000 square feet of gross leasable area, or GLA, for an aggregate contract purchase price of $488,740,000.

2. Summary of Significant Accounting Policies

The summary of significant accounting policies presented below is designed to assist in understanding our condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, in all material respects, and have been consistently applied in preparing our accompanying condensed consolidated financial statements.

Basis of Presentation

Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership and the wholly owned subsidiaries of our operating partnership, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and of which we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810.

We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership, and as of March 31, 2018 and December 31, 2017, we owned greater than a 99.99% general partnership interest therein. Our advisor is a limited partner, and as of March 31, 2018 and December 31, 2017, owned less than a 0.01% noncontrolling limited partnership interest in our operating partnership.

Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation.

Interim Unaudited Financial Data

Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable.

In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018.

10

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Use of Estimates

The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions.

Revenue Recognition and Tenant and Resident Receivables

In May 2014, the FASB issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers, which has been codified to ASC Topic 606. ASC Topic 606 provides additional guidance to clarify the principles for recognizing revenue. The standard and subsequent amendments are intended to develop a common revenue standard to remove inconsistencies, improve comparability, provide more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. We have evaluated all of our revenue streams to identify whether each revenue stream would be subject to the provisions of ASC Topic 606 and whether there are any differences in the timing, measurement or presentation of revenue recognition. Based on a review of our various revenue streams, certain components of resident fees and services, such as revenues that are ancillary to the contractual rights of residents within our senior housing facilities operated utilizing a RIDEA structure, are subject to ASC Topic 606. While these revenue streams are subject to the provisions of ASC Topic 606, we believe that the pattern and timing of recognition of income are consistent with the previous accounting model. Virtually all resident fees and services are earned over a period of time and the majority of these revenues are paid by private payor types with the residual being paid by Medicaid. We adopted ASC Topic 606 on January 1, 2018 using the modified retrospective adoption method and the adoption did not have a material impact on our consolidated financial statements. Included within resident fees and services for the quarter ended March 31, 2018 was $186,000 of ancillary service revenue.

Segment Disclosure

ASC Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016; senior housing facility in December 2016; senior housing — RIDEA facility in November 2017; and skilled nursing facility in March 2018, we added a new reportable segment at each such time. As of March 31, 2018, we have determined that we operate through four reportable business segments, with activities related to investing in medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities.

See Note 15, Segment Reporting, for a further discussion.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, or ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606. Although not yet finalized, the FASB has proposed an option for lessors to elect a practical expedient allowing them to not separate lease and non-lease components in a contract for the purpose of revenue recognition and disclosure. This practical expedient is limited to circumstances in which: (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component; and (ii) the combined single lease component would be classified as an operating lease. If finalized, we plan to elect this practical expedient. In addition, ASU 2016-02 provides a practical expedient that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to

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expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We plan to elect this practical expedient.

We are still evaluating the complete impact of the adoption of ASU 2016-02 and its related expedients on January 1, 2019 to our consolidated financial statements and disclosures. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with a few optional practical expedients. As a result of the adoption of ASU 2016-02 on January 1, 2019, we: (i) will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets; and (ii) may be required to increase our revenue and expense for the amount of real estate taxes and insurance paid by our tenant under triple-net leases.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, or ASU 2018-02, which amends the reclassification requirements from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017, or the Tax Act. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2018-02 on January 1, 2019 to have a material impact on our consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Amendments to the SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, or ASU 2018-05, which updates the income tax accounting in GAAP to reflect the SEC’s interpretive guidance with regards to the Tax Act. See Note 14, Income Taxes, for a further discussion.

3. Real Estate Investments, Net

Our real estate investments, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Building and improvements	$	390,654,000		$	371,890,000
Land	54,723,000			52,202,000
Furniture, fixtures and equipment	4,498,000			4,458,000
	449,875,000			428,550,000
Less: accumulated depreciation	(12,187,000		)	(8,885,000		)
	$	437,688,000		$	419,665,000

Depreciation expense for the three months ended March 31, 2018 and 2017 was $3,416,000 and $1,140,000, respectively. In addition to the property acquisition discussed below, for the three months ended March 31, 2018, we incurred capital expenditures of $958,000 on our medical office buildings, $88,000 on our senior housing — RIDEA facilities and $0 on our senior housing facilities and skilled nursing facilities.

We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets. The reimbursement of acquisition expenses, acquisition fees, total development costs and real estate commissions and other fees paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price of our property acquisitions, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors. For the three months ended March 31, 2018 and 2017, such fees and expenses paid did not exceed 6.0% of the contract purchase price of our property acquisitions, except with respect to our acquisitions of Athens MOB and Northern California Senior Housing Portfolio. Our directors, including a majority of our independent directors, not otherwise interested in the transactions, approved the reimbursement of fees and expenses to our advisor or its affiliates for the acquisitions of

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Athens MOB and Northern California Senior Housing Portfolio in excess of the 6.0% limit and determined that such fees and expenses were commercially fair and reasonable to us.

Acquisition in 2018

For the three months ended March 31, 2018, using net proceeds from our offering and debt financing, we completed one property acquisition comprising two facilities from unaffiliated third parties. The following is a summary of our property acquisition for the three months ended March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Central Wisconsin Senior Care Portfolio	Sun Prairie and Waunakee, WI	Skilled Nursing	03/01/18	$	22,600,000	$	22,600,000	$	1,018,000

___________

(1) We own 100% of our property acquired in 2018.

(2) Represents a borrowing under the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan, at the time of acquisition.

(3) Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, a base acquisition fee of 2.25% of the 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 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.

We accounted for the property acquisition we completed for the three months ended March 31, 2018 as an asset acquisition in accordance with FASB ASU 2017-01, Clarifying the Definition of a Business, or ASU 2017-01. We incurred a base acquisition fee and direct acquisition related expenses of $695,000, which were capitalized in accordance with ASU 2017-01. In addition, we incurred a Contingent Advisor Payment of $509,000 to our advisor for this property acquisition. The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our property acquisition in 2018 based on their relative fair values:

	2018 Acquisition
Building and improvements	$	17,845,000
Land	2,517,000
In-place leases	2,933,000
Total assets acquired	23,295,000
Total liabilities assumed	—
Net assets acquired	$	23,295,000

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4. Identified Intangible Assets, Net

Identified intangible assets, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
In-place leases, net of accumulated amortization of $9,530,000 and $5,832,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 8.1 years and 7.3 years as of March 31, 2018 and December 31, 2017, respectively)	$	36,926,000	$	37,766,000
Leasehold interests, net of accumulated amortization of $143,000 and $119,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 70.3 years and 70.6 years as of March 31, 2018 and December 31, 2017, respectively)	6,269,000		6,292,000
Above-market leases, net of accumulated amortization of $211,000 and $173,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 5.4 years and 5.6 years as of March 31, 2018 and December 31, 2017, respectively)	725,000		763,000
	$	43,920,000	$	44,821,000

Amortization expense on identified intangible assets for the three months ended March 31, 2018 and 2017 was $3,833,000 and $628,000, respectively, which included $38,000 and $33,000, respectively, of amortization recorded against real estate revenue for above-market leases and $24,000 of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations.

The aggregate weighted average remaining life of the identified intangible assets was 16.9 years and 16.2 years as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, estimated amortization expense on the identified intangible assets for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:

Year	Amount
2018	$	9,663,000
2019	4,644,000
2020	4,053,000
2021	3,657,000
2022	3,140,000
Thereafter	18,763,000
	$	43,920,000

5. Other Assets, Net

Other assets, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Deferred rent receivables	$	2,546,000	$	1,912,000
Prepaid expenses and deposits	1,696,000		1,532,000
Deferred financing costs, net of accumulated amortization of $772,000 and $554,000 as of March 31, 2018 and December 31, 2017, respectively(1)	1,238,000		1,456,000
Lease commissions, net of accumulated amortization of $17,000 and $9,000 as of March 31, 2018 and December 31, 2017, respectively	320,000		326,000
	$	5,800,000	$	5,226,000

___________

(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, net only include costs related to the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Amortization expense on deferred financing costs of the Corporate Line of Credit for the three months ended March 31, 2018 and 2017 was $218,000 and $87,000, respectively. Amortization expense on deferred financing costs of the Corporate Line of Credit is recorded to interest expense in our accompanying condensed consolidated statements of operations. Amortization expense on lease commissions for the three months ended March 31, 2018 and 2017 was $8,000 and $0, respectively.

6. Mortgage Loans Payable, Net

As of March 31, 2018 and December 31, 2017, mortgage loans payable were $11,538,000 ($11,483,000, including premium and deferred financing costs, net) and $11,634,000 ($11,567,000, including premium and deferred financing costs, net), respectively. As of March 31, 2018 and December 31, 2017, we had two fixed-rate mortgage loans with interest rates ranging from 4.77% to 5.25% per annum, maturity dates ranging from April 1, 2020 to August 1, 2029 and a weighted average effective interest rate of 4.92%.

The changes in the carrying amount of mortgage loans payable, net consisted of the following for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Beginning balance	$	11,567,000		$	3,965,000
Additions:
Amortization of deferred financing costs(1)	15,000			2,000
Deductions:
Scheduled principal payments on mortgage loans payable	(96,000		)	(62,000		)
Amortization of premium on mortgage loan payable	(3,000		)	(4,000		)
Ending balance	$	11,483,000		$	3,901,000

___________

(1) In accordance with ASU 2015-03 and ASU 2015-15, deferred financing costs only includes costs related to our mortgage loans payable.

As of March 31, 2018, the principal payments due on our mortgage loans payable for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter were as follows:

Year	Amount
2018	$	290,000
2019	407,000
2020	8,036,000
2021	314,000
2022	330,000
Thereafter	2,161,000
	$	11,538,000

7. Line of Credit and Term Loan

On August 25, 2016, we, through our operating partnership, as borrower, and certain of our subsidiaries, or the subsidiary guarantors, and us, collectively as guarantors, entered into a credit agreement, or the Credit Agreement, with Bank of America, N.A., or Bank of America, as administrative agent, swing line lender and letters of credit issuer; and KeyBank, National Association, or KeyBank, as syndication agent and letters of credit issuer, to obtain a revolving line of credit with an aggregate maximum principal amount of $100,000,000, or the Line of Credit, subject to certain terms and conditions.

On August 25, 2016, we also entered into separate revolving notes, or the Revolving Notes, with each of Bank of America and KeyBank, whereby we promised to pay the principal amount of each revolving loan and accrued interest to the respective lender or its registered assigns, in accordance with the terms and conditions of the Credit Agreement. The proceeds of loans made under the Line of Credit may be used for general working capital (including acquisitions), capital expenditures

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and other general corporate purposes not inconsistent with obligations under the Credit Agreement. We may obtain up to $20,000,000 in the form of standby letters of credit and up to $25,000,000 in the form of swing line loans. The Line of Credit matures on August 25, 2019, and may be extended for one12-month period during the term of the Credit Agreement subject to satisfaction of certain conditions, including payment of an extension fee.

On October 31, 2017, we entered into an amendment to the Credit Agreement, or the Amendment, with Bank of America, as administrative agent, and the subsidiary guarantors and lenders named therein. The material terms of the Amendment provide for: (i) a $50,000,000 increase in the Line of Credit from an aggregate principal amount of $100,000,000 to $150,000,000; (ii) a term loan with an aggregate maximum principal amount of $50,000,000, or the Term Loan Credit Facility, that matures on August 25, 2019, and may be extended for one12-month period during the term of the Credit Agreement subject to satisfaction of certain conditions, including payment of an extension fee; (iii) our right, upon at least five business days’ prior written notice to Bank of America, to increase the Line of Credit or Term Loan Credit Facility provided that the aggregate principal amount of all such increases and additions shall not exceed $300,000,000; (iv) a revision to the definition of Threshold Amount, as defined in the Credit Agreement, to reflect an increase in such amount for any Recourse Indebtedness, as defined in the Credit Agreement, to $20,000,000, and an increase in such amount for any Non-Recourse Indebtedness, as defined in the Credit Agreement, to $50,000,000; (v) the revision of certain Unencumbered Property Pool Criteria, as defined and set forth in the Credit Agreement; and (vi) an increase in the maximum Consolidated Secured Leverage Ratio, as defined in the Credit Agreement, to be equal to or less than 40.0%. As a result of the Amendment, our aggregate borrowing capacity under the Line of Credit and the Term Loan Credit Facility, or collectively, the Corporate Line of Credit, is $200,000,000.

At our option, the Corporate Line of Credit bears interest at per annum rates equal to (a) (i) the Eurodollar Rate (as defined in the Credit Agreement, as amended) plus (ii) a margin ranging from 1.75% to 2.25% based on our Consolidated Leverage Ratio (as defined in the Credit Agreement, as amended), or (b) (i) the greater of: (1) the prime rate publicly announced by Bank of America, (2) the Federal Funds Rate (as defined in the Credit Agreement, as amended) plus 0.50%, (3) the one-month Eurodollar Rate plus 1.00%, and (4) 0.00%, plus (ii) a margin ranging from 0.55% to 1.05% based on our Consolidated Leverage Ratio. Accrued interest on the Corporate Line of Credit is payable monthly. The loans may be repaid in whole or in part without prepayment premium or penalty, subject to certain conditions.

We are required to pay a fee on the unused portion of the lenders’ commitments under the Credit Agreement, as amended, at a per annum rate equal to 0.20% if the average daily used amount is greater than 50.0% of the commitments and 0.25% if the average daily used amount is less than or equal to 50.0% of the commitments, which fee shall be measured and payable on a quarterly basis.

The Credit Agreement, as amended, contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by our operating partnership and its subsidiaries. The Credit Agreement, as amended, also imposes certain financial covenants based on the following criteria, which are specifically defined in the Credit Agreement, as amended: (a) Consolidated Leverage Ratio; (b) Consolidated Secured Leverage Ratio; (c) Consolidated Tangible Net Worth; (d) Consolidated Fixed Charge Coverage Ratio; (e) Unencumbered Indebtedness Yield; (f) Consolidated Unencumbered Leverage Ratio; (g) Consolidated Unencumbered Interest Coverage Ratio; (h) Secured Recourse Indebtedness; and (i) Consolidated Unsecured Indebtedness.

The Credit Agreement, as amended, permits us to add additional subsidiaries as guarantors. In the event of default, Bank of America has the right to terminate its obligations under the Credit Agreement, as amended, including the funding of future loans, and to accelerate the payment on any unpaid principal amount of all outstanding loans and interest thereon. Additionally, in connection with the Credit Agreement, as amended, we also entered into a Pledge Agreement on August 25, 2016, pursuant to which we pledged the capital stock of our subsidiaries which own the real property to be included in the Unencumbered Property Pool, as such term is defined in the Credit Agreement, as amended. The pledged collateral will be released upon achieving a consolidated total asset value of at least $750,000,000.

As of March 31, 2018 and December 31, 2017, our aggregate borrowing capacity under the Corporate Line of Credit was $200,000,000. As of March 31, 2018 and December 31, 2017, borrowings outstanding totaled $62,300,000 and $84,100,000, respectively, and the weighted average interest rate on such borrowings outstanding was 3.55% and 3.45% per annum, respectively.

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8. Identified Intangible Liabilities, Net

Identified intangible liabilities, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Below-market leases, net of accumulated amortization of $428,000 and $345,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 6.3 years and 6.4 years as of March 31, 2018 and December 31, 2017, respectively)	$	1,266,000	$	1,349,000
Above-market leasehold interests, net of accumulated amortization of $8,000 and $6,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 51.9 years and 52.2 years as of March 31, 2018 and December 31, 2017, respectively)	387,000		388,000
	$	1,653,000	$	1,737,000

Amortization expense on identified intangible liabilities for the three months ended March 31, 2018 and 2017 was $85,000 and $68,000, respectively, which included $83,000 and $67,000, respectively, of amortization recorded to real estate revenue for below-market leases and $2,000 and $1,000, respectively, of amortization recorded against rental expenses for above-market leasehold interests in our accompanying condensed consolidated statements of operations.

The aggregate weighted average remaining life of the identified intangible liabilities was 17.0 years and 16.7 years as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, estimated amortization expense on identified intangible liabilities for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:

Year	Amount
2018	$	254,000
2019	310,000
2020	147,000
2021	125,000
2022	125,000
Thereafter	692,000
	$	1,653,000

9. Commitments and Contingencies

Litigation

We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Environmental Matters

We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency.

Other

Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business, which include calls/puts to sell/acquire properties. In our view, these matters are not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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10. Redeemable Noncontrolling Interests

On February 6, 2015, our advisor made an initial capital contribution of $2,000 to our operating partnership in exchange for Class T partnership units. Upon the effectiveness of the Advisory Agreement on February 16, 2016, Griffin-American Healthcare REIT IV Advisor became our advisor. As of March 31, 2018 and December 31, 2017, our advisor owned all of our 208 Class T partnership units outstanding. As of March 31, 2018 and December 31, 2017, we owned greater than a 99.99% general partnership interest in our operating partnership, and our advisor owned less than a 0.01% limited partnership interest in our operating partnership. As our advisor, Griffin-American Healthcare REIT IV Advisor is entitled to redemption rights of its limited partnership units. The noncontrolling interest of our advisor in our operating partnership, which has redemption features outside of our control, is accounted for as a redeemable noncontrolling interest and is presented outside of permanent equity in our accompanying condensed consolidated balance sheets. See Note 12, Related Party Transactions — Liquidity Stage — Subordinated Participation Interest — Subordinated Distribution Upon Listing, and Note 12, Related Party Transactions — Subordinated Distribution Upon Termination, for a further discussion of the redemption features of the limited partnership units.

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, or Meridian, an unaffiliated third party. Our ownership of the joint venture is approximately 98%. The noncontrolling interest held by Meridian has redemption features outside of our control and is accounted for as redeemable noncontrolling interest in our accompanying condensed consolidated balance sheets. In addition, Meridian will be entitled to an incentive fee, subject to the satisfaction of certain terms and conditions set forth in the joint venture agreement.

We record the carrying amount of redeemable noncontrolling interests at the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions; or (ii) the redemption value. The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Beginning balance	$	1,002,000		$	2,000
Net loss attributable to redeemable noncontrolling interests	(67,000		)	—
Fair value adjustment to redemption value	67,000			—
Ending balance	$	1,002,000		$	2,000

11. Equity

Preferred Stock

Our charter authorizes us to issue 200,000,000 shares of our preferred stock, par value $0.01 per share. As of March 31, 2018 and December 31, 2017, no shares of our preferred stock were issued and outstanding.

Common Stock

Our charter authorizes us to issue 1,000,000,000 shares of our common stock, par value $0.01 per share. We commenced our public offering of shares of our common stock on February 16, 2016, and as of such date we were initially offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of our Class T common stock being offered and began offering shares of our Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP. Subsequent to the reallocation, of the 1,000,000,000 shares of common stock authorized, 900,000,000 shares are classified as Class T common stock and 100,000,000 shares are classified as Class I common stock. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock.

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Each share of our common stock, regardless of class, will be entitled to one vote per share on matters presented to the common stockholders for approval; provided, however, that stockholders of one share class shall have exclusive voting rights on any amendment to our charter that would alter only the contract rights of that share class, and no stockholders of another share class shall be entitled to vote thereon.

On February 6, 2015, our advisor acquired shares of our Class T common stock for total cash consideration of $200,000 and was admitted as our initial stockholder. We used the proceeds from the sale of shares of our Class T common stock to our advisor to make an initial capital contribution to our operating partnership. As of March 31, 2018 and December 31, 2017, our advisor owned 20,833 shares of our Class T common stock.

Through March 31, 2018, we had issued 46,532,759 aggregate shares of our Class T and Class I common stock in connection with the primary portion of our offering and 1,391,831 aggregate shares of our Class T and Class I common stock pursuant to the DRIP. We also granted an aggregate of 37,500 shares of our restricted Class T common stock to our independent directors and repurchased 118,934 shares of our common stock under our share repurchase plan through March 31, 2018. As of March 31, 2018 and December 31, 2017, we had 47,863,989 and 42,207,160 aggregate shares of our Class T and Class I common stock, respectively, issued and outstanding.

As of March 31, 2018, we had a receivable of $1,158,000 for offering proceeds, net of selling commissions and dealer manager fees, from our transfer agent, which was received in April 2018.

Distribution Reinvestment Plan

We have registered and reserved $150,000,000 in shares of our common stock for sale pursuant to the DRIP in our offering. The DRIP allows stockholders to purchase additional Class T shares and Class I shares of our common stock through the reinvestment of distributions during our offering. Pursuant to the DRIP, distributions with respect to Class T shares are reinvested in Class T shares and distributions with respect to Class I shares are reinvested in Class I shares.

For the three months ended March 31, 2018 and 2017, $3,606,000 and $1,063,000, respectively, in distributions were reinvested and 383,756 and 113,147 shares of our common stock, respectively, were issued pursuant to the DRIP. As of March 31, 2018 and December 31, 2017, a total of $13,091,000 and $9,485,000, respectively, in distributions were reinvested that resulted in 1,391,831 and 1,008,075 shares of our common stock, respectively, being issued pursuant to the DRIP.

Share Repurchase Plan

In February 2016, our board of directors approved a share repurchase plan. The share repurchase plan allows for repurchases of shares of our common stock by us when certain criteria are met. Share repurchases will be made at the sole discretion of our board of directors. Subject to the availability of the funds for share repurchases, 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, that shares subject to a repurchase requested upon the death of a stockholder will not be subject to this cap. Funds for the repurchase of shares of our common stock will come exclusively from the cumulative proceeds we receive from the sale of shares of our common stock pursuant to the DRIP.

All repurchases of our shares of common stock are subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or “qualifying disability,” as defined in our share repurchase plan. Further, all share repurchases are repurchased following a one-year holding period at a price between 92.5% to 100% of each stockholder’s repurchase amount depending on the period of time their shares have been held. During our offering, the repurchase amount for shares repurchased under our share repurchase plan shall be equal to the lesser of (i) the amount per share that a stockholder paid for their shares of our common stock, or (ii) the per share offering price in our offering. If we are no longer engaged in an offering, the repurchase amount for shares repurchased under our share repurchase plan will be determined by our board of directors. However, if shares of our common stock are repurchased in connection with a stockholder’s death or qualifying disability, the repurchase price will be no less than 100% of the price paid to acquire the shares of our common stock from us. Furthermore, our share repurchase plan provides that if there are insufficient funds to honor all repurchase requests, pending requests will be honored among all requests for repurchase in any given repurchase period, as follows: first, pro rata as to repurchases sought upon a stockholder’s death; next, pro rata as to repurchases sought by stockholders with a qualifying disability; and, finally, pro rata as to other repurchase requests.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

For the three months ended March 31, 2018, we received share repurchase requests and repurchased 41,188 shares of our common stock for an aggregate of $397,000, at an average repurchase price of $9.65 per share. No share repurchases were requested or made for the three months ended March 31, 2017.

As of March 31, 2018 and December 31, 2017, we received share repurchase requests and repurchased 118,934 and 77,746 shares of our common stock, respectively, for an aggregate of $1,132,000 and $735,000, respectively, at an average repurchase price of $9.52 and $9.45 per share, respectively. All shares were repurchased using proceeds we received from the sale of shares of our common stock pursuant to the DRIP.

2015 Incentive Plan

In February 2016, we adopted our incentive plan, pursuant to which our board of directors or a committee of our independent directors may make grants of options, shares of our restricted common stock, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our incentive plan is 4,000,000 shares. As of March 31, 2018, we have granted 37,500 shares of our restricted Class T common stock at a weighted average grant date fair value of $10.00 per share, to our independent directors in connection with their election or re-election to our board of directors, or in consideration for their past services rendered. Such shares vested 20.0% immediately on the grant date and 20.0% will vest on each of the first four anniversaries of the grant date. For the three months ended March 31, 2018 and 2017, we recognized stock compensation expense of $30,000 and $14,000, respectively, which is included in general and administrative in our accompanying condensed consolidated statements of operations.

Offering Costs

Selling Commissions

Generally, we pay our dealer manager selling commissions of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering. To the extent that selling commissions are less than 3.0% of the gross offering proceeds for any Class T shares sold, such reduction in selling commissions will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No selling commissions are payable on Class I shares or shares of our common stock sold pursuant to the DRIP. Our dealer manager may re-allow all or a portion of these fees to participating broker-dealers. For the three months ended March 31, 2018 and 2017, we incurred $1,462,000 and $2,070,000, respectively, in selling commissions to our dealer manager. Such commissions were charged to stockholders’ equity as such amounts were paid to our dealer manager from the gross proceeds of our offering.

Dealer Manager Fee

With respect to shares of our Class T common stock, our dealer manager generally receives a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds is funded by us and up to an amount equal to 2.0% of the gross offering proceeds is funded by our advisor. With respect to shares of our Class I common stock, prior to March 1, 2017, our dealer manager generally received a dealer manager fee up to 3.0% of the gross offering proceeds from the sale of Class I shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds was funded by us and an amount equal to 2.0% of the gross offering proceeds was funded by our advisor. Effective March 1, 2017, our dealer manager generally receives a dealer manager fee up to an amount equal to 1.5% of the gross offering proceeds from the sale of Class I shares pursuant to our primary offering, all of which is funded by our advisor. Our dealer manager may enter into participating dealer agreements with participating dealers that provide for a reduction or waiver of dealer manager fees. To the extent that the dealer manager fee is less than 3.0% of the gross offering proceeds for any Class T shares sold and less than 1.5% of the gross offering proceeds for any Class I shares sold, such reduction will be applied first to the portion of the dealer manager fee funded by our advisor. To the extent that any reduction in dealer manager fee exceeds the portion of the dealer manager fee funded by our advisor, such excess reduction will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. Our dealer manager may re-allow all or a portion of these fees to participating broker-dealers.

For the three months ended March 31, 2018 and 2017, we incurred $493,000 and $733,000, respectively, in dealer manager fees to our dealer manager. Such fees were charged to stockholders’ equity as such amounts were paid to our dealer manager or its affiliates from the gross proceeds of our offering. See Note 12, Related Party Transactions — Offering Stage — Dealer Manager Fee, for a further discussion of the dealer manager fee funded by our advisor.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Stockholder Servicing Fee

We pay our dealer manager a quarterly stockholder servicing fee with respect to our Class T shares sold as additional compensation to the dealer manager and participating broker-dealers. No stockholder servicing fee shall be paid with respect to Class I shares or shares of our common stock sold pursuant to the DRIP. The stockholder servicing fee accrues daily in an amount equal to 1/365th of 1.0% of the purchase price per share of our Class T shares sold in our primary offering and, in the aggregate will not exceed an amount equal to 4.0% of the gross proceeds from the sale of Class T shares in our primary offering. We will cease paying the stockholder servicing fee with respect to our Class T shares sold in our offering upon the occurrence of certain defined events. Our dealer manager may re-allow to participating broker-dealers all or a portion of the stockholder servicing fee for services that such participating broker-dealers perform in connection with the shares of our Class T common stock. By agreement with participating broker-dealers, such stockholder servicing fee may be reduced or limited.

For the three months ended March 31, 2018 and 2017, we incurred $1,700,000 and $2,754,000, respectively, in stockholder servicing fees to our dealer manager. As of March 31, 2018 and December 31, 2017, we accrued $13,423,000 and $12,611,000, respectively, in connection with the stockholder servicing fee payable, which is included in accounts payable and accrued liabilities with a corresponding offset to stockholders’ equity in our accompanying condensed consolidated balance sheets.

12. Related Party Transactions

Fees and Expenses Paid to Affiliates

All of our executive officers and one of our non-independent directors are also executive officers and employees and/or holders of a direct or indirect interest in our advisor, one of our co-sponsors or other affiliated entities. We are affiliated with our advisor, American Healthcare Investors and AHI Group Holdings; however, we are not affiliated with Griffin Capital, our dealer manager, Colony NorthStar or Mr. Flaherty. We entered into the Advisory Agreement, which entitles our advisor and its affiliates to specified compensation for certain services, as well as reimbursement of certain expenses. Our board of directors, including a majority of our independent directors, has reviewed the material transactions between our affiliates and us during the three months ended March 31, 2018 and 2017. Set forth below is a description of the transactions with affiliates. We believe that we have executed all of the transactions set forth below on terms that are fair and reasonable to us and on terms no less favorable to us than those available from unaffiliated third parties. For the three months ended March 31, 2018 and 2017, we incurred $2,975,000 and $4,089,000, respectively, in fees and expenses to our affiliates as detailed below.

Offering Stage

Dealer Manager Fee

With respect to shares of our Class T common stock, our dealer manager generally receives a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds is funded by us and up to an amount equal to 2.0% of the gross offering proceeds is funded by our advisor. With respect to shares of our Class I common stock, prior to March 1, 2017, our dealer manager generally received a dealer manager fee up to 3.0% of the gross offering proceeds from the sale of Class I shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds was funded by us and an amount equal to 2.0% of the gross offering proceeds was funded by our advisor. Effective March 1, 2017, our dealer manager generally receives a dealer manager fee up to an amount equal to 1.5% of the gross offering proceeds from the sale of Class I shares pursuant to our primary offering, all of which is funded by our advisor. Our dealer manager may enter into participating dealer agreements with participating dealers that provide for a reduction or waiver of dealer manager fees. To the extent that the dealer manager fee is less than 3.0% of the gross offering proceeds for any Class T shares sold and less than 1.5% of the gross offering proceeds for any Class I shares sold, such reduction will be applied first to the portion of the dealer manager fee funded by our advisor. To the extent that any reduction in dealer manager fee exceeds the portion of the dealer manager fee funded by our advisor, such excess reduction will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. Our advisor intends to recoup the portion of the dealer manager fee it funds through the receipt of the Contingent Advisor Payment from us, as described below, through the payment of acquisition fees.

For the three months ended March 31, 2018 and 2017, we incurred $1,011,000 and $1,496,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the dealer manager fee that our advisor had incurred. Such fee was charged to stockholders’ equity as incurred with a corresponding offset to accounts payable due to affiliates in our

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

accompanying condensed consolidated balance sheets. See Note 11, Equity — Offering Costs — Dealer Manager Fee, for a further discussion of the dealer manager fee funded by us.

Other Organizational and Offering Expenses

Our other organizational and offering expenses in connection with our offering (other than selling commissions, the dealer manager fee and the stockholder servicing fee) are funded by our advisor. Our advisor intends to recoup such expenses it funds through the receipt of the Contingent Advisor Payment from us, as described below, through the payment of acquisition fees. We anticipate that our other organizational and offering expenses will not exceed 1.0% of the gross offering proceeds for shares of our common stock sold pursuant to our primary offering. No other organizational and offering expenses will be paid with respect to shares of our common stock sold pursuant to the DRIP.

For the three months ended March 31, 2018 and 2017, we incurred $327,000 and $556,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the other organizational and offering expenses that our advisor had incurred. Such expenses were charged to stockholders’ equity as incurred with a corresponding offset to accounts payable due to affiliates in our accompanying condensed consolidated balance sheets.

Acquisition and Development Stage

Acquisition Fee

We pay our advisor an acquisition fee of up to 4.50% of the contract purchase price, including any contingent or earn-out payments that may be paid, of each property we acquire or, with respect to any real estate-related investment we originate or acquire, up to 4.25% of the origination or acquisition price, including any contingent or earn-out payments that may be paid. The 4.50% or 4.25% acquisition fees consist of a 2.25% or 2.00% base acquisition fee, or the base acquisition fee, for real estate and real estate-related acquisitions, respectively, and an additional 2.25% contingent advisor payment, or the Contingent Advisor Payment. The Contingent Advisor Payment allows our advisor to recoup the portion of the dealer manager fee and other organizational and offering expenses funded by our advisor. Therefore, the amount of the Contingent Advisor Payment paid upon the closing of an acquisition shall not exceed the then outstanding amounts paid by our advisor for dealer manager fees and other organizational and offering expenses at the time of such closing. For these purposes, the amounts paid by our advisor and considered as “outstanding” are reduced by the amount of the Contingent Advisor Payment previously paid. Notwithstanding the foregoing, the initial $7,500,000 of amounts paid by our advisor to fund the dealer manager fee and other organizational and offering expenses, or the Contingent Advisor Payment Holdback, shall be retained by us until the later of the termination of our last public offering or the third anniversary of the commencement date of our initial public offering, at which time such amount shall be paid to our advisor or its affiliates. In connection with any subsequent public offering of shares of our common stock, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such subsequent public offering and the amount sold in prior offerings. Our advisor or its affiliates will be entitled to receive these acquisition fees for properties and real estate-related investments acquired with funds raised in our offering, including acquisitions completed after the termination of the Advisory Agreement (including imputed leverage of 50.0% on funds raised in our offering), or funded with net proceeds from the sale of a property or real estate-related investment, subject to certain conditions. Our advisor may waive or defer all or a portion of the acquisition fee at any time and from time to time, in our advisor’s sole discretion.

The base acquisition fee in connection with the acquisition of properties accounted for as business combinations in accordance with ASC Topic 805, Business Combinations, or ASC Topic 805, is expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations. The base acquisition fee in connection with the acquisition of properties accounted for as asset acquisitions in accordance with ASU 2017-01 or the acquisition of real estate-related investments is capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. For the three months ended March 31, 2018 and 2017, we paid base acquisition fees of $509,000 and $1,655,000, respectively, to our advisor. As of March 31, 2018 and December 31, 2017, we recorded $7,760,000 and $7,744,000, respectively, as part of the Contingent Advisor Payment, which is included in accounts payable due to affiliates with a corresponding offset to stockholders’ equity in our accompanying condensed consolidated balance sheets. As of March 31, 2018, we have paid $6,416,000 in Contingent Advisor Payments to our advisor. For a further discussion of amounts paid in connection with the Contingent Advisor Payment, see “Dealer Manager Fee” and “Other Organizational and Offering Expenses,” above. In addition, see Note 3, Real Estate Investments, Net, for a further discussion.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Development Fee

In the event our advisor or its affiliates provide development-related services, we pay our advisor or its affiliates a development fee in an amount that is usual and customary for comparable services rendered for similar projects in the geographic market where the services are provided; however, we will not pay a development fee to our advisor or its affiliates if our advisor or its affiliates elect to receive an acquisition fee based on the cost of such development.

For the three months ended March 31, 2018 and 2017, we did not incur any development fees to our advisor or its affiliates.

Reimbursement of Acquisition Expenses

We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets, which are reimbursed regardless of whether an asset is acquired. The reimbursement of acquisition expenses, acquisition fees, total development costs and real estate commissions paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price of the property or real estate-related investments, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors, not otherwise interested in the transaction. For the three months ended March 31, 2018 and 2017, such fees and expenses paid did not exceed 6.0% of the contract purchase price of our property acquisitions, except with respect to our acquisitions of Athens MOB and Northern California Senior Housing Portfolio, which excess fees were approved by our directors as set forth above. For a further discussion, see Note 3, Real Estate Investments, Net.

Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as business combinations in accordance with ASC Topic 805 are expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations. Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as asset acquisitions in accordance with ASU 2017-01 or the acquisition of real estate-related investments are capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. For the three months ended March 31, 2018 and 2017, we incurred $0 and $1,000, respectively, in acquisition expenses to our advisor or its affiliates.

Operational Stage

Asset Management Fee

We pay our advisor or its affiliates a monthly fee for services rendered in connection with the management of our assets equal to one-twelfth of 0.80% of average invested assets. For such purposes, average invested assets means the average of the aggregate book value of our assets invested in real estate properties and real estate-related investments, before deducting depreciation, amortization, bad debt and other similar non-cash reserves, computed by taking the average of such values at the end of each month during the period of calculation.

For the three months ended March 31, 2018 and 2017, we incurred $958,000 and $301,000, respectively, in asset management fees to our advisor, which are included in general and administrative in our accompanying condensed consolidated statements of operations.

Property Management Fee

American Healthcare Investors or its designated personnel may provide property management services with respect to our properties or may sub-contract these duties to any third party and provide oversight of such third-party property manager. We pay American Healthcare Investors a monthly management fee equal to a percentage of the gross monthly cash receipts of such property as follows: (i) a property management oversight fee of 1.0% of the gross monthly cash receipts of any stand-alone, single-tenant, net leased property, except for such properties operated utilizing a RIDEA structure, for which we pay a property management oversight fee of 1.5% of the gross monthly cash receipts with respect to such property; (ii) a property management oversight fee of 1.5% of the gross monthly cash receipts of any property that is not a stand-alone, single-tenant, net leased property and for which American Healthcare Investors or its designated personnel provide oversight of a third party that performs the duties of a property manager with respect to such property; or (iii) a fair and reasonable property management fee that is approved by a majority of our directors, including a majority of our independent directors, that is not less favorable to us than terms available from unaffiliated third parties for any property that is not a stand-alone, single-tenant, net leased property and for which American Healthcare Investors or its designated personnel directly serve as the property manager without sub-contracting such duties to a third party.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Property management fees are included in property operating and rental expenses in our accompanying condensed consolidated statements of operations. For the three months ended March 31, 2018 and 2017, we incurred property management fees of $145,000 and $59,000, respectively, to American Healthcare Investors.

Lease Fees

We may pay our advisor or its affiliates a separate fee for any leasing activities in an amount not to exceed the fee customarily charged in arm’s-length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area. Such fee is generally expected to range from 3.0% to 6.0% of the gross revenues generated during the initial term of the lease.

Lease fees are capitalized as lease commissions, which are included in other assets, net in our accompanying condensed consolidated balance sheets, and amortized over the term of the lease. For the three months ended March 31, 2018, we incurred lease fees of $1,000. For the three months ended March 31, 2017, we did not incur any lease fees to our advisor or its affiliates.

Construction Management Fee

In the event that our advisor or its affiliates assist with planning and coordinating the construction of any capital or tenant improvements, we pay our advisor or its affiliates a construction management fee of up to 5.0% of the cost of such improvements. Construction management fees are capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets or are expensed and included in our accompanying condensed consolidated statements of operations, as applicable. For the three months ended March 31, 2018 and 2017, we did not incur any construction management fees to our advisor or its affiliates.

Operating Expenses

We reimburse our advisor or its affiliates for operating expenses incurred in rendering services to us, subject to certain limitations. However, we cannot reimburse our advisor or its affiliates at the end of any fiscal quarter for total operating expenses that, in the four consecutive fiscal quarters then ended, exceed the greater of: (i) 2.0% of our average invested assets, as defined in the Advisory Agreement; or (ii) 25.0% of our net income, as defined in the Advisory Agreement, unless our independent directors determined that such excess expenses were justified based on unusual and nonrecurring factors which they deem sufficient.

Our operating expenses as a percentage of average invested assets and as a percentage of net income were 1.3% and 27.8%, respectively, for the 12 months ended March 31, 2018; however, our operating expenses did not exceed the aforementioned limitation as 2.0% of our average invested assets was greater than 25.0% of our net income.

For the three months ended March 31, 2018 and 2017, our advisor incurred operating expenses on our behalf of $24,000 and $21,000, respectively. Operating expenses are generally included in general and administrative in our accompanying condensed consolidated statements of operations.

Compensation for Additional Services

We pay our advisor and its affiliates for services performed for us other than those required to be rendered by our advisor or its affiliates under the Advisory Agreement. The rate of compensation for these services has to be approved by a majority of our board of directors, including a majority of our independent directors, and cannot exceed an amount that would be paid to unaffiliated third parties for similar services. For the three months ended March 31, 2018 and 2017, our advisor and its affiliates were not compensated for any additional services.

Liquidity Stage

Disposition Fees

For services relating to the sale of one or more properties, we pay our advisor or its affiliates a disposition fee up to the lesser of 2.0% of the contract sales price or 50.0% of a customary competitive real estate commission given the circumstances surrounding the sale, in each case as determined by our board of directors, including a majority of our independent directors, upon the provision of a substantial amount of the services in the sales effort. The amount of disposition fees paid, when added to the real estate commissions paid to unaffiliated third parties, will not exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. For the three months ended March 31, 2018 and 2017, we did not incur any disposition fees to our advisor or its affiliates.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Subordinated Participation Interest

Subordinated Distribution of Net Sales Proceeds

In the event of liquidation, we will pay our advisor a subordinated distribution of net sales proceeds. The distribution will be equal to 15.0% of the remaining net proceeds from the sales of properties, after distributions to our stockholders, in the aggregate, of: (i) a full return of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan); plus (ii) an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock, as adjusted for distributions of net sales proceeds. Actual amounts to be received depend on the sale prices of properties upon liquidation. For the three months ended March 31, 2018 and 2017, we did not pay any such distributions to our advisor.

Subordinated Distribution Upon Listing

Upon the listing of shares of our common stock on a national securities exchange, in redemption of our advisor’s limited partnership units, we will pay our advisor a distribution equal to 15.0% of the amount by which: (i) the market value of our outstanding common stock at listing plus distributions paid prior to listing exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the amount of cash equal to an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the date of listing. Actual amounts to be received depend upon the market value of our outstanding stock at the time of listing, among other factors. For the three months ended March 31, 2018 and 2017, we did not pay any such distributions to our advisor.

Subordinated Distribution Upon Termination

Pursuant to the Agreement of Limited Partnership, as amended, of our operating partnership upon termination or non-renewal of the Advisory Agreement, our advisor will also be entitled to a subordinated distribution in redemption of its limited partnership units from our operating partnership equal to15.0%of the amount, if any, by which: (i) the appraised value of our assets on the termination date, less any indebtedness secured by such assets, plus total distributions paid through the termination date, exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the total amount of cash equal to an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the termination date. In addition, our advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing or other liquidity event, including a liquidation, sale of substantially all of our assets or merger in which our stockholders receive in exchange for their shares of our common stock, shares of a company that are traded on a national securities exchange.

As of March 31, 2018 and December 31, 2017, we did not have any liability related to the subordinated distribution upon termination.

Stock Purchase Plans

On December 30, 2016, our Chief Executive Officer and Chairman of the Board of Directors, Jeffrey T. Hanson, our President and Chief Operating Officer, Danny Prosky, and our Executive Vice President and General Counsel, Mathieu B. Streiff, each executed stock purchase plans, or the 2017 Stock Purchase Plans, whereby they each irrevocably agreed to invest 100% of their net after-tax base salary and cash bonus compensation earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class I common stock. In addition, on December 30, 2016, three Executive Vice Presidents of American Healthcare Investors, including our Executive Vice President of Acquisitions, Stefan K.L. Oh, as well as our Vice Presidents of Asset Management, Wendie Newman and Christopher M. Belford, each executed similar 2017 Stock Purchase Plans whereby they each irrevocably agreed to invest a portion of their net after-tax base salary or a portion of their net after-tax base salary and cash bonus compensation, ranging from 5.0% to 15.0%, earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class I common stock. The 2017 Stock Purchase Plans terminated on December 31, 2017.

Purchases of shares of our Class I common stock pursuant to the 2017 Stock Purchase Plans commenced beginning with the officers’ regularly scheduled payroll payment on January 23, 2017. The shares of Class I common stock were purchased pursuant to the 2017 Stock Purchase Plans at a price of $9.21 per share, reflecting the purchase price of shares of Class I common stock offered to the public reduced by the dealer manager fees funded by us, as applicable. No selling commissions, dealer manager fees (including the portion of such dealer manager fees funded by our advisor) or stockholder servicing fees were paid with respect to such sales of our Class I common stock.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

On December 31, 2017, Messrs. Hanson, Prosky, and Streiff each executed stock purchase plans for the purchase of shares of our Class I common stock, or the 2018 Stock Purchase Plans, on terms similar to their 2017 Stock Purchase Plans. In addition, on December 31, 2017, four Executive Vice Presidents of American Healthcare Investors, including Messrs. Oh and Belford, Ms. Newman and our Chief Financial Officer, Brian S. Peay, each executed similar 2018 Stock Purchase Plans whereby they each irrevocably agreed to invest a portion of their net after-tax base salary or a portion of their net after-tax base salary and cash bonus compensation, ranging from 5.0% to 15.0%, earned on or after January 1, 2018 as employees of American Healthcare Investors directly into shares of our Class I common stock. The 2018 Stock Purchase Plans terminate on December 31, 2018 or earlier upon the occurrence of certain events, such as any earlier termination of our public offering of securities, unless otherwise renewed or extended.

Purchases of shares of our Class I common stock pursuant to the 2018 Stock Purchase Plans commenced beginning with the first regularly scheduled payroll payment on January 22, 2018. The shares of Class I common stock were or will be purchased pursuant to the 2018 Stock Purchase Plans at a per share purchase price equal to the per share purchase price of our Class I common stock offered to the public, which was $9.21 per share prior to April 11, 2018 and is currently $9.65 per share effective April 11, 2018. No selling commissions, dealer manager fees (including the portion of such dealer manager fees funded by our advisor) or stockholder servicing fees will be paid with respect to such sales of our Class I common stock.

For the three months ended March 31, 2018 and 2017, our officers invested the following amounts and we issued the following shares of our Class T and Class I common stock pursuant to the applicable stock purchase plan:

		Three Months Ended March 31,
		2018			2017
Officer’s Name	Title	Amount		Shares	Amount		Shares
Jeffrey T. Hanson	Chief Executive Officer and Chairman of the Board of Directors	$	118,000	12,785	$	57,000	6,178
Danny Prosky	President and Chief Operating Officer	123,000		13,305	60,000		6,423
Mathieu B. Streiff	Executive Vice President and General Counsel	123,000		13,317	60,000		6,436
Brian S. Peay	Chief Financial Officer	13,000		1,405	—		—
Stefan K.L. Oh	Executive Vice President of Acquisitions	8,000		869	8,000		842
Christopher M. Belford	Vice President of Asset Management	36,000		3,890	47,000		5,055
Wendie Newman	Vice President of Asset Management	2,000		233	2,000		165
		$	423,000	45,804	$	234,000	25,099

Accounts Payable Due to Affiliates

The following amounts were outstanding to our affiliates as of March 31, 2018 and December 31, 2017:

Fee	March 31, 2018		December 31, 2017
Contingent Advisor Payment	$	7,760,000	$	7,744,000
Asset management fees	325,000		316,000
Property management fees	51,000		43,000
Operating expenses	9,000		6,000
Construction management fees	1,000		1,000
Lease commissions	—		8,000
	$	8,146,000	$	8,118,000

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

13. Fair Value Measurements

Financial Instruments Disclosed at Fair Value

ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments, whether or not recognized on the face of the balance sheet. Fair value is defined under ASC Topic 820, Fair Value Measurements and Disclosures.

Our accompanying condensed consolidated balance sheets include the following financial instruments: cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits, accounts payable and accrued liabilities, accounts payable due to affiliates, mortgage loans payable and borrowings under the Corporate Line of Credit.

We consider the carrying values of cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits and accounts payable and accrued liabilities to approximate the fair values for these financial instruments based upon an evaluation of the underlying characteristics, market data and because of the short period of time between origination of the instruments and their expected realization. The fair value of cash and cash equivalents is classified in Level 1 of the fair value hierarchy. The fair value of accounts payable due to affiliates is not determinable due to the related party nature of the accounts payable. The fair value of the other financial instruments is classified in Level 2 of the fair value hierarchy.

The fair value of our mortgage loans payable and the Corporate Line of Credit is estimated using a discounted cash flow analysis using borrowing rates available to us for debt instruments with similar terms and maturities. We have determined that the valuations of our mortgage loans payable and line of credit and term loans are classified in Level 2 within the fair value hierarchy. The carrying amounts and estimated fair values of such financial instruments as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:
Mortgage loans payable	$	11,483,000	$	11,628,000	$	11,567,000	$	11,819,000
Line of credit and term loan	$	61,062,000	$	62,294,000	$	82,644,000	$	84,088,000

14. Income Taxes

As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. We have elected to treat certain of our consolidated subsidiaries as wholly-owned taxable REIT subsidiaries, or TRSs, pursuant to the Code. TRSs may participate in services that would otherwise be considered impermissible for REITs and are subject to federal and state income tax at regular corporate tax rates. We did not incur income taxes for the three months ended March 31, 2018 and 2017.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation pursuant to the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate tax rate to 21.0%, eliminating the corporate alternative minimum tax, or AMT, and changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

We adopted ASU 2018-05 which allows us to record provisional amounts during the period of enactment. Any change to the provisional amounts will be recorded as an adjustment to the provision for income taxes in the period the amounts are determined. The measurement period ends when we have obtained, prepared and analyzed the information necessary to finalize the provision, but cannot extend beyond one year of the enactment date. 

27

GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

We did not incur income taxes for the three months ended March 31, 2017. The components of income tax expense (benefit) for the three months ended March 31, 2018 were as follows:

	Amount
Federal deferred	$	(740,000	)
State deferred	(153,000		)
Valuation allowances	893,000
Total income tax expense (benefit)	$	—

Current Income Tax

Federal and state income taxes are generally a function of the level of income recognized by our TRSs.

Deferred Taxes

Deferred income tax is generally a function of the period’s temporary differences (primarily basis differences between tax and financial reporting for real estate assets and equity investments) and generation of tax net operating losses that may be realized in future periods depending on sufficient taxable income.

We apply the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes, for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, we will initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on our estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. As of March 31, 2018 and December 31, 2017, we did not have any tax benefits or liabilities for uncertain tax positions that we believe should be recognized in our accompanying consolidated financial statements.

We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A valuation allowance is established if we believe it is more likely than not that all or a portion of the deferred tax assets are not realizable. As of March 31, 2018, our valuation allowance fully reserves the net deferred tax asset due to inherent uncertainty of future income. We will continue to monitor industry and economic conditions, and our ability to generate taxable income based on our business plan and available tax planning strategies, which would allow us to utilize the tax benefits of the net deferred tax assets and thereby allow us to reverse all, or a portion of, our valuation allowance in the future.

15. Segment Reporting

ASC Topic 280 establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016; senior housing facility in December 2016; senior housing— RIDEA facility in November 2017; and skilled nursing facility in March 2018, we established a new reportable segment at each such time. As of March 31, 2018, we evaluated our business and made resource allocations based on four reportable business segments — medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities.

Our medical office buildings are typically leased to multiple tenants under separate leases in each building, thus requiring active management and responsibility for many of the associated operating expenses (although many of these are, or can effectively be, passed through to the tenants). Our senior housing facilities and skilled nursing facilities are primarily single-tenant properties for which we lease the facilities to unaffiliated tenants under triple-net and generally master leases that transfer the obligation for all facility operating costs (including maintenance, repairs, taxes, insurance and capital expenditures) to the tenant. Our senior housing — RIDEA properties include senior housing facilities that are owned and operated utilizing a RIDEA structure.

We evaluate performance based upon segment net operating income. We define segment net operating income as total revenues, less rental expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses and interest expense for each segment. We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment net operating income serves as an appropriate supplemental performance measure to net income (loss) because it allows investors and our management to measure unlevered

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GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis.

Interest expense, depreciation and amortization and other expenses not attributable to individual properties are not allocated to individual segments for purposes of assessing segment performance.

Non-segment assets primarily consist of corporate assets including cash and cash equivalents, other receivables, real estate deposits and other assets not attributable to individual properties.

Summary information for the reportable segments during the three months ended March 31, 2018 and 2017 was as follows:

	Medical Office Buildings		Senior Housing — RIDEA		Senior Housing		Skilled Nursing Facilities		Three Months Ended March 31, 2018
Revenues:
Real estate revenue	$	6,944,000	$	—	$	2,288,000	$	201,000	$	9,433,000
Resident fees and services	—		8,409,000		—		—		8,409,000
Total revenues	6,944,000		8,409,000		2,288,000		201,000		17,842,000
Expenses:
Rental expenses	1,947,000		—		371,000		33,000		2,351,000
Property operating expenses	—		7,233,000		—		—		7,233,000
Segment net operating income	$	4,997,000	$	1,176,000	$	1,917,000	$	168,000	$	8,258,000
Expenses:
General and administrative									$	2,120,000
Acquisition related expenses									95,000
Depreciation and amortization									7,195,000
Interest expense (including amortization of deferred financing costs and debt premium)									(1,084,000		)
Net loss									$	(2,236,000	)

	Medical Office Buildings		Senior Housing		Three Months Ended March 31, 2017
Revenue:
Real estate revenue	$	3,671,000	$	381,000	$	4,052,000
Expenses:
Rental expenses	1,153,000		34,000		1,187,000
Segment net operating income	$	2,518,000	$	347,000	$	2,865,000
Expenses:
General and administrative					$	748,000
Acquisition related expenses					73,000
Depreciation and amortization					1,711,000
Interest expense (including amortization of deferred financing costs and debt premium)					(418,000		)
Net loss					$	(85,000	)

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GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

Assets by reportable segment as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018		December 31, 2017
Medical office buildings	$	260,388,000	$	262,260,000
Senior housing — RIDEA	114,300,000		115,402,000
Senior housing	98,807,000		98,519,000
Skilled nursing facilities	23,438,000		—
Other	6,709,000		3,972,000
Total assets	$	503,642,000	$	480,153,000

16. Concentration of Credit Risk

Financial instruments that potentially subject us to a concentration of credit risk are primarily cash and cash equivalents, accounts and other receivables, restricted cash and real estate deposits. Cash and cash equivalents are generally invested in investment-grade, short-term instruments with a maturity of three months or less when purchased. We have cash and cash equivalents in financial institutions that are insured by the Federal Deposit Insurance Corporation, or FDIC. As of March 31, 2018 and December 31, 2017, we had cash and cash equivalents in excess of FDIC insured limits. We believe this risk is not significant. Concentration of credit risk with respect to accounts receivable from tenants is limited. In general, we perform credit evaluations of prospective tenants and security deposits are obtained at the time of property acquisition and upon lease execution.

Based on leases in effect as of March 31, 2018, three states in the United States accounted for 10.0% or more of our annualized base rent or annualized net operating income of our total property portfolio. Our properties located in Florida, Nevada and Alabama accounted for approximately 17.8%, 13.3% and 11.8%, respectively, of the annualized base rent or annualized net operating income of our total property portfolio. Accordingly, there is a geographic concentration of risk subject to fluctuations in each state’s economy.

Based on leases in effect as of March 31, 2018, our four reportable business segments, medical office buildings, senior housing — RIDEA, senior housing and skilled nursing facilities accounted for 59.4%, 17.8%, 17.8% and 5.0%, respectively, of our annualized base rent or annualized net operating income.

As of March 31, 2018, we had two tenants that accounted for 10.0% or more of our annualized base rent or annualized net operating income of our total property portfolio, as follows:

Tenant	Annualized Base Rent(1)		Percentage of Annualized Base Rent	Acquisition	Reportable Segment	GLA (Sq Ft)	Lease Expiration Date
Colonial Oaks Master Tenant, LLC	$	4,112,000	11.6%	Lafayette Assisted Living Portfolio and Northern California Senior Housing Portfolio	Senior Housing	215,000	06/30/32
Prime Healthcare Services – Reno	$	3,803,000	10.8%	Reno MOB	Medical Office	145,000	03/31/20 – 12/31/25

___________

(1) Annualized base rent is based on contractual base rent from leases in effect as of March 31, 2018. The loss of any of these tenants or their inability to pay rent could have a material adverse effect on our business and results of operations.

17. Per Share Data

We report earnings (loss) per share pursuant to ASC Topic 260, Earnings per Share. Basic earnings (loss) per share for all periods presented are computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of our common stock outstanding during the period. Net income (loss) applicable to common stock is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of $4,000 and $2,000 for the three months ended March 31, 2018 and 2017, respectively. Diluted earnings (loss) per share are computed based on the weighted average number of shares of our common stock and all potentially dilutive securities, if any. Nonvested shares of our restricted common stock and redeemable limited partnership units of our operating partnership are participating securities and give rise to potentially dilutive shares of our common stock. As of March 31, 2018 and 2017, there were 27,000 and 12,000 nonvested shares, respectively, of our restricted common stock outstanding, but such shares were excluded from the

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GRIFFIN-AMERICAN HEALTHCARE REIT IV, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

computation of diluted earnings per share because such shares were anti-dilutive during these periods. As of March 31, 2018 and 2017, there were 208 units of redeemable limited partnership units of our operating partnership outstanding, but such units were excluded from the computation of diluted earnings per share because such units were anti-dilutive during these periods.

18. Subsequent Events

Status of Our Offering

As of May 4, 2018, we had received and accepted subscriptions in our offering for 48,784,089 aggregate shares of our Class T and Class I common stock, or $485,441,000, excluding shares of our common stock issued pursuant to the DRIP.

Property Acquisitions

Subsequent to March 31, 2018, we completed two property acquisitions comprising two buildings from unaffiliated third parties. The following is a summary of our property acquisitions subsequent to March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Sauk Prairie MOB	Prairie du Sac, WI	Medical Office	04/09/18	$	19,500,000	$	19,500,000	$	878,000
Surprise MOB	Surprise, AZ	Medical Office	04/27/18	11,650,000		8,000,000		524,000
				$	31,150,000	$	27,500,000	$	1,402,000

___________

(1) We own 100% of our properties acquired subsequent to March 31, 2018.

(2) Represents borrowings under the Corporate 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 our properties, a base acquisition fee of 2.25% of the contract purchase price upon the closing of the acquisition. In addition, the total acquisition fee includes a Contingent Advisor Payment in the amount of 2.25% of the contract purchase price of the properties 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.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The use of the words “we,” “us” or “our” refers to Griffin-American Healthcare REIT IV, Inc. and its subsidiaries, including Griffin-American Healthcare REIT IV Holdings, LP, except where the context otherwise requires.

The following discussion should be read in conjunction with our accompanying condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q and in our 2017 Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission, or the SEC, on March 8, 2018. Such condensed consolidated financial statements and information have been prepared to reflect our financial position as of March 31, 2018 and December 31, 2017, together with our results of operations and cash flows for the three months ended March 31, 2018 and 2017.

Forward-Looking Statements

Historical results and trends should not be taken as indicative of future operations. Our statements contained in this report that are not historical facts are forward-looking. Actual results may differ materially from those included in the forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations, are generally identifiable by use of the words “expect,” “project,” “may,” “will,” “should,” “could,” “would,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “potential” or the negative of such terms and other comparable terminology. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future investments on a consolidated basis include, but are not limited to: changes in economic conditions generally and the real estate market specifically; legislative and regulatory changes, including changes to laws governing the taxation of real estate investment trusts, or REITs; the availability of capital; changes in interest rates; competition in the real estate industry; the supply and demand for operating properties in our proposed market areas; changes in accounting principles generally accepted in the United States of America, or GAAP, policies and guidelines applicable to REITs; the success of our best efforts initial public offering; the availability of properties to acquire; the availability of financing; and our ongoing relationship with American Healthcare Investors, LLC, or American Healthcare Investors, and Griffin Capital Company, LLC, or Griffin Capital, and their affiliates. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning us and our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Overview and Background

Griffin-American Healthcare REIT IV, Inc., a Maryland corporation, was incorporated on January 23, 2015 and therefore we consider that our date of inception. We were initially capitalized on February 6, 2015. We invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. We also operate healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a “RIDEA” structure (the provisions of the Internal Revenue Code of 1986, as amended, or the Code, authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We may also originate and acquire secured loans and real estate-related investments on an infrequent and opportunistic basis. We generally seek investments that produce current income. We qualified to be taxed as a REIT under the Code for federal income tax purposes beginning with our taxable year ended December 31, 2016, and we intend to continue to qualify to be taxed as a REIT.

On February 16, 2016, we commenced our initial public offering, or our offering, in which we were initially offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to our distribution reinvestment plan, as amended, or the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of Class T common stock being offered and began offering shares of Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP, aggregating up to $3,150,000,000.

The shares of our Class T common stock in our primary offering were being offered at a price of $10.00 per share prior to April 11, 2018. The shares of our Class I common stock in our primary offering were being offered at a price of $9.30 per share prior to March 1, 2017 and $9.21 per share from March 1, 2017 to April 10, 2018. The shares of our Class T and Class I common stock issued pursuant to the DRIP were sold at a price of $9.50 per share prior to January 1, 2017 and $9.40 per share from January 1, 2017 to April 10, 2018. On April 6, 2018, our board of directors, at the recommendation of the audit committee of our board of directors, comprised solely of independent directors, unanimously approved and established an estimated per share net asset value, or NAV, of our common stock of $9.65, as discussed further below. As a result, on April 6, 2018, our

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board of directors unanimously approved revised offering prices for each class of shares of our common stock to be sold in the primary portion of our initial public offering based on the estimated per share NAV of our Class T and Class I common stock of $9.65 plus any applicable per share up-front selling commissions and dealer manager fees funded by us, effective April 11, 2018. Accordingly, the revised offering price for shares of our Class T common stock and Class I common stock sold pursuant to our primary offering on or after April 11, 2018 is $10.05 per share and $9.65 per share, respectively. Effective April 11, 2018, the shares of our Class T and Class I common stock issued pursuant to the DRIP are sold at a price of $9.65 per share, the most recent estimated per share NAV approved and established by our board of directors.

We will sell shares of our Class T and Class I common stock in our offering until February 16, 2019, unless extended by our board of directors as permitted under applicable law, or extended with respect to shares of our common stock offered pursuant to the DRIP. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock. As of March 31, 2018, we had received and accepted subscriptions in our offering for 46,532,759 aggregate shares of our Class T and Class I common stock, or approximately $462,971,000, excluding shares of our common stock issued pursuant to the DRIP.

On April 6, 2018, our board of directors, at the recommendation of the audit committee of our board of directors, comprised solely of independent directors, unanimously approved and established an estimated per share NAV of our common stock of $9.65. We provide this estimated per share NAV to assist broker-dealers in connection with their obligations under National Association of Securities Dealers Conduct Rule 2340, as required by the Financial Industry Regulatory Authority, or FINRA, with respect to customer account statements. The estimated per share NAV is based on the estimated value of our assets less the estimated value of our liabilities, divided by the number of shares outstanding on a fully diluted basis, calculated as of December 31, 2017. This valuation was performed in accordance with the methodology provided in Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the Institute for Portfolio Alternatives, or the IPA, in April 2013, in addition to guidance from the SEC. Going forward, we intend to publish an updated estimated per share NAV on at least an annual basis. See our Current Report on Form 8-K filed with the SEC on April 9, 2018, for more information on the methodologies and assumptions used to determine, and the limitations and risks of, our estimated per share NAV.

We conduct substantially all of our operations through Griffin-American Healthcare REIT IV Holdings, LP, or our operating partnership. We are externally advised by Griffin-American Healthcare REIT IV Advisor, LLC, or our advisor, pursuant to an advisory agreement, or the Advisory Agreement, between us and our advisor. The Advisory Agreement was effective as of February 16, 2016 and had a one-year term, subject to successive one-year renewals upon the mutual consent of the parties. The Advisory Agreement was last renewed pursuant to the mutual consent of the parties on February 14, 2018 and expires on February 16, 2019. Our advisor uses its best efforts, subject to the oversight and review of our board of directors, to, among other things, research, identify, review and make investments in and dispositions of properties and securities on our behalf consistent with our investment policies and objectives. Our advisor performs its duties and responsibilities under the Advisory Agreement as our fiduciary. Our advisor is 75.0% owned and managed by American Healthcare Investors and 25.0% owned by a wholly owned subsidiary of Griffin Capital, or collectively, our co-sponsors. American Healthcare Investors is 47.1% owned by AHI Group Holdings, LLC, or AHI Group Holdings, 45.1% indirectly owned by Colony NorthStar, Inc. (NYSE: CLNS), or Colony NorthStar, and 7.8% owned by James F. Flaherty III, a former partner of Colony NorthStar. We are not affiliated with Griffin Capital, Griffin Capital Securities, LLC, or our dealer manager, Colony NorthStar or Mr. Flaherty; however, we are affiliated with Griffin-American Healthcare REIT IV Advisor, American Healthcare Investors and AHI Group Holdings.

We currently operate through four reportable business segments — medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities. As of March 31, 2018, we had completed 19 property acquisitions whereby we owned 40 properties, comprising 42 buildings, or approximately 2,553,000 square feet of gross leasable area, or GLA, for an aggregate contract purchase price of $488,740,000.

Critical Accounting Policies

The complete listing of our Critical Accounting Policies was previously disclosed in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018, and there have been no material changes to our Critical Accounting Policies as disclosed therein, except as noted below.

Interim Unaudited Financial Data

Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments, which

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are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable. Our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018.

Revenue Recognition

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which has been codified to Accounting Standards Codification, or ASC, Topic 606, or ASC Topic 606. ASC Topic 606 provides additional guidance to clarify the principles for recognizing revenue. The standard and subsequent amendments are intended to develop a common revenue standard to remove inconsistencies, improve comparability, provide more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. We have evaluated all of our revenue streams to identify whether each revenue stream would be subject to the provisions of ASC Topic 606 and any differences in the timing, measurement or presentation of revenue recognition. Based on a review of our various revenue streams, certain components of resident fees and services, such as revenues that are ancillary to the contractual rights of residents within our senior housing campuses, are subject to ASC Topic 606. While these revenue streams are subject to the provisions of ASC Topic 606, we believe that the pattern and timing of recognition of income are consistent with the previous accounting model. Virtually all resident fees and services are earned over a period of time and the majority of these revenues are paid by private payor types with the residual being paid by Medicaid. We adopted ASC Topic 606 on January 1, 2018 using the modified retrospective adoption method and the adoption did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements

For a discussion of recently issued accounting pronouncements, see Note 2, Summary of Significant Accounting Policies — Recently Issued Accounting Pronouncements, to our accompanying condensed consolidated financial statements.

Acquisitions in 2018

For a discussion of our property acquisitions in 2018, see Note 3, Real Estate Investments, Net, and Note 18, Subsequent Events — Property Acquisitions, to our accompanying condensed consolidated financial statements.

Factors Which May Influence Results of Operations

We are not aware of any material trends or uncertainties, other than national economic conditions affecting real estate generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues or income from the acquisition, management and operation of properties other than those listed in Part II, Item 1A. Risk Factors, of this Quarterly Report on Form 10-Q and those Risk Factors previously disclosed in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018.

Real Estate Revenue

The amount of revenue generated by our properties depends principally on our ability to maintain the occupancy rates of leased space and to lease available space and space available from lease terminations at the then existing rental rates. Negative trends in one or more of these factors could adversely affect our revenue in the future.

Offering Proceeds

If we fail to raise significant additional proceeds in our offering, we will not have enough proceeds to invest in a diversified real estate portfolio. Our real estate portfolio would be concentrated in a small number of properties, resulting in increased exposure to local and regional economic downturns and the poor performance of one or more of our properties and, therefore, expose our stockholders to increased risk. In addition, many of our expenses are fixed regardless of the size of our real estate portfolio. Therefore, depending on the amount of proceeds we raise from our offering, we would expend a larger portion of our income on operating expenses. This would reduce our profitability and, in turn, the amount of net income available for distribution to our stockholders.

Scheduled Lease Expirations

Excluding our senior housing — RIDEA facilities, as of March 31, 2018, our properties were 95.6% leased and during the remainder of 2018, 2.9% of the leased GLA is scheduled to expire. Our senior housing— RIDEA facilities were 76.3% leased for the three months ended March 31, 2018 and substantially all of our leases with residents at such properties are for a term of one year or less. Our leasing strategy focuses on negotiating renewals for leases scheduled to expire during the next 12

34

months. In the future, if we are unable to negotiate renewals, we will try to identify new tenants or collaborate with existing tenants who are seeking additional space to occupy.

As of March 31, 2018, our remaining weighted average lease term was 9.4 years, excluding our senior housing — RIDEA facilities.

Results of Operations

Comparison of the Three Months Ended March 31, 2018 and 2017

Our primary sources of revenue include rent and resident fees and services from our properties. Our primary expenses include property operating expenses and rental expenses. In general, we expect amounts related to our portfolio of operating properties to increase in the future based on a full year of operations as well as any additional real estate and real estate-related investments we may acquire.

We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016; senior housing facility in December 2016; senior housing— RIDEA facility in November 2017; and skilled nursing facility in March 2018, we established a new reportable segment at each such time. As of March 31, 2018, we operated through four reportable business segments — medical office buildings, senior housing, senior housing— RIDEA and skilled nursing facilities.

Except where otherwise noted, our results of operations are primarily due to owning 42 buildings as of March 31, 2018, as compared to owning 14 buildings as of March 31, 2017. As of March 31, 2018 and 2017, we owned the following types of properties:

	March 31,
	2018					2017
	Number of Buildings	Aggregate Contract Purchase Price		Leased %		Number of Buildings	Aggregate Contract Purchase Price		Leased %
Medical office buildings	18	$	262,290,000	92.8	%	12	$	195,620,000	92.7	%
Senior housing — RIDEA	10	109,500,000		(1	)	—	—		—	%
Senior housing	12	94,350,000		100	%	2	16,750,000		100	%
Skilled nursing facilities	2	22,600,000		100	%	—	—		—	%
Total/weighted average(2)	42	$	488,740,000	95.6	%	14	$	212,370,000	93.4	%

___________

(1) The leased percentage for the resident units of our senior housing — RIDEA facilities was 76.3% for the three months ended March 31, 2018 and substantially all of our leases with residents at such properties are for a term of one year or less.

(2) Leased percentage excludes our senior housing — RIDEA facilities.

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Revenues

For the three months ended March 31, 2018 and 2017, real estate revenue was $9,433,000 and $4,052,000, respectively, and primarily comprised of base rent of $6,915,000 and $3,000,000, respectively, and expense recoveries of $1,822,000 and $736,000, respectively. For the three months ended March 31, 2018, resident fees and services consisted of rental fees related to resident leases and extended health care fees. We did not own or operate any senior housing — RIDEA facilities prior to November 2017. Revenue by reportable segment consisted of the following for the periods then ended:

	Three Months Ended March 31,
	2018		2017
Real Estate Revenue
Medical office buildings	$	6,944,000	$	3,671,000
Senior housing	2,288,000		381,000
Skilled nursing facilities	201,000		—
Total real estate revenue	9,433,000		4,052,000
Resident Fees and Services
Senior housing — RIDEA	8,409,000		—
Total resident fees and services	8,409,000		—
Total revenues	$	17,842,000	$	4,052,000

Property Operating Expenses and Rental Expenses

Rental expenses and rental expenses as a percentage of real estate revenue, as well as property operating expenses and property operating expenses as a percentage of resident fees and services, by reportable segment, consisted of the following for the periods then ended:

	Three Months Ended March 31,
	2018				2017
Rental Expenses
Medical office buildings	$	1,947,000	28.0	%	$	1,153,000	31.4	%
Senior housing	371,000		16.2	%	34,000		8.9	%
Skilled nursing facilities	33,000		16.4	%	—		—	%
Total rental expenses	$	2,351,000	24.9	%	$	1,187,000	29.3	%
Property Operating Expenses
Senior housing — RIDEA	$	7,233,000	86.0	%	$	—	—	%
Total property operating expenses	$	7,233,000	86.0	%	$	—	—	%

Senior housing — RIDEA facilities typically have a higher percentage of operating expenses to revenue than medical office buildings, senior housing facilities and skilled nursing facilities. We anticipate that the percentage of operating expenses to revenues will fluctuate based on the types of property we acquire in the future.

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General and Administrative

General and administrative consisted of the following for the periods then ended:

	Three Months Ended March 31,
	2018		2017
Asset management fees — affiliates	$	958,000	$	301,000
Professional and legal fees	472,000		187,000
Bad debt expense	347,000		14,000
Transfer agent services	80,000		32,000
Board of directors fees	57,000		53,000
Bank charges	57,000		—
Directors’ and officers’ liability insurance	53,000		55,000
Franchise taxes	44,000		74,000
Restricted stock compensation	30,000		14,000
Other	22,000		18,000
Total	$	2,120,000	$	748,000

The increase in general and administrative expenses in 2018 as compared to 2017 was primarily due to the purchase of additional properties in 2017 and 2018 and thus incurring higher asset management fees to our advisor or its affiliates and higher professional and legal fees. In addition, we incurred higher transfer agent service fees for 2018 as compared to 2017 due to an increase in the number of investors in connection with the increased equity raise pursuant to our offering throughout 2017 and 2018. Accordingly, we expect general and administrative expenses to continue to increase in 2018 as we acquire additional properties and raise additional equity.

Acquisition Related Expenses

For the three months ended March 31, 2018 and 2017, acquisition related expenses were $95,000 and $73,000, respectively, and were related primarily to expenses incurred in pursuit of properties that did not result in an acquisition.

Depreciation and Amortization

For the three months ended March 31, 2018 and 2017, depreciation and amortization was $7,195,000 and $1,711,000, respectively, and consisted primarily of depreciation on our operating properties of $3,416,000 and $1,140,000, respectively, and amortization on our identified intangible assets of $3,771,000 and $571,000, respectively.

Interest Expense

For the three months ended March 31, 2018 and 2017, interest expense related to our mortgage loans payable and line of credit and term loan was $1,084,000 and $418,000, respectively. See Note 6, Mortgage Loans Payable, Net and Note 7, Line of Credit and Term Loan, to our accompanying condensed consolidated financial statements, for a further discussion. Interest expense consisted of the following for the periods then ended:

	Three Months Ended March 31,
	2018			2017
Interest expense — line of credit and term loan	$	712,000		$	280,000
Amortization of deferred financing costs — line of credit and term loan	218,000			87,000
Interest expense — mortgage loans payable	142,000			51,000
Amortization of deferred financing costs — mortgage loans payable	15,000			—
Amortization of debt premium	(3,000		)	—
Total	$	1,084,000		$	418,000

Liquidity and Capital Resources

Our sources of funds will be the net proceeds of our offering, operating cash flows and borrowings. We believe that these resources will be sufficient to satisfy our cash requirements for the foreseeable future, and we do not anticipate a need to raise funds from other sources within the next 12 months.

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We are dependent upon the net proceeds to be received from our offering to conduct our proposed activities. Our ability to raise funds through our offering is dependent on general economic conditions, general market conditions for REITs and our operating performance. We expect a relative increase in liquidity as additional subscriptions for shares of our common stock are received and a relative decrease in liquidity as net offering proceeds are expended in connection with the acquisition, management and operation of our investments in real estate and real estate-related investments.

Our principal demands for funds will be for acquisitions of real estate and real estate-related investments, payment of operating expenses and interest on our current and future indebtedness and payment of distributions to our stockholders. We estimate that we will require approximately $2,116,000 to pay interest on our outstanding indebtedness in the remainder of 2018, based on interest rates in effect and borrowings outstanding as of March 31, 2018, and that we will require $290,000 to pay principal on our outstanding indebtedness in the remainder of 2018. In addition, we require resources to make certain payments to our advisor and our dealer manager, which during our offering will include payments to our dealer manager and its affiliates for selling commissions, the dealer manager fee and the stockholder servicing fee. See Note 11, Equity — Offering Costs, and Note 12, Related Party Transactions, to our accompanying condensed consolidated financial statements, for a further discussion of our payments to our advisor and our dealer manager.

Generally, cash needs for items other than acquisitions of real estate and real estate-related investments will be met from operations, borrowings and the net proceeds of our offering, including the proceeds raised through the DRIP. However, there may be a delay between the sale of our shares of common stock and our investments in real estate and real estate-related investments, which could result in a delay in the benefits to our stockholders, if any, of returns generated from our investments.

Our advisor evaluates potential investments and engages in negotiations with real estate sellers, developers, brokers, investment managers, lenders and others on our behalf. Investors should be aware that after a purchase contract for a property is executed that contains specific terms, the property will not be purchased until the successful completion of due diligence, which includes review of the title insurance commitment, market evaluation, review of leases, review of financing options and an environmental analysis. In some instances, the proposed acquisition will require the negotiation of final binding agreements, which may include financing documents. Until we invest the proceeds of our offering in real estate and real estate-related investments, we may invest in short-term, highly liquid or other authorized investments. Such short-term investments will not earn significant returns, and we cannot predict how long it will take to fully invest the proceeds in real estate and real estate related-investments. The number of properties we may acquire and other investments we will make will depend upon the number of shares of our common stock sold and the resulting amount of the net proceeds available for investment from our offering as well as our ability to arrange debt financing.

When we acquire a property, our advisor prepares a capital plan that contemplates the estimated capital needs of that investment. In addition to operating expenses, capital needs may also include costs of refurbishment, tenant improvements or other major capital expenditures. The capital plan will also set forth the anticipated sources of the necessary capital, which may include a line of credit or other loan established with respect to the investment, other borrowings, operating cash generated by the investment, additional equity investments from us or joint venture partners or, when necessary, capital reserves. Any capital reserve would be established from the net proceeds of our offering, proceeds from sales of other investments, operating cash generated by other investments or other cash on hand. In some cases, a lender may require us to establish capital reserves for a particular investment. The capital plan for each investment will be adjusted through ongoing, regular reviews of our portfolio or as necessary to respond to unanticipated additional capital needs.

Based on the properties we own as of March 31, 2018, we estimate that our expenditures for capital and tenant improvements will require up to $3,282,000 for the remaining nine months of 2018. As of March 31, 2018, we had $16,000 of restricted cash in reserve accounts for such capital expenditures. We cannot provide assurance, however, that we will not exceed these estimated expenditure and distribution levels or be able to obtain additional sources of financing on commercially favorable terms or at all.

Other Liquidity Needs

In the event that there is a shortfall in net cash available due to various factors, including, without limitation, the timing of distributions or the timing of the collection of receivables, we may seek to obtain capital to pay distributions by means of secured or unsecured debt financing through one or more third parties, or our advisor or its affiliates. There are currently no limits or restrictions on the use of proceeds from our advisor or its affiliates which would prohibit us from making the proceeds available for distribution. We may also pay distributions from cash from capital transactions, including, without limitation, the sale of one or more of our properties.

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If we experience lower occupancy levels, reduced rental rates, reduced revenues as a result of asset sales, or increased capital expenditures and leasing costs compared to historical levels due to competitive market conditions for new and renewed leases, the effect would be a reduction of net cash provided by operating activities. If such a reduction of net cash provided by operating activities is realized, we may have a cash flow deficit in subsequent periods. Our estimate of net cash available is based on various assumptions which are difficult to predict, including the levels of leasing activity and related leasing costs. Any changes in these assumptions could impact our financial results and our ability to fund working capital and unanticipated cash needs.

Cash Flows

The following table sets forth changes in cash flows:

	Three Months Ended March 31,
	2018			2017
Cash, cash equivalents and restricted cash — beginning of period	$	7,103,000		$	2,237,000
Net cash provided by operating activities	4,692,000			1,390,000
Net cash used in investing activities	(25,494,000		)	(75,553,000		)
Net cash provided by financing activities	22,873,000			73,985,000
Cash, cash equivalents and restricted cash — end of period	$	9,174,000		$	2,059,000

The following summary discussion of our changes in our cash flows is based on our accompanying condensed consolidated statements of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below.

Operating Activities

For the three months ended March 31, 2018 and 2017, cash flows provided by operating activities primarily related to the cash flows provided by our property operations, offset by payments of general and administrative expenses. See “Results of Operations” above for a further discussion. We anticipate cash flows from operating activities to increase in 2018 as we acquire additional real estate investments.

Investing Activities

For the three months ended March 31, 2018, cash flows used in investing activities related primarily to our one property acquisition in the amount of $23,190,000 and the payment of $1,575,000 for real estate deposits. For the three months ended March 31, 2017, cash flows used in investing activities related primarily to our two property acquisitions in the amount of $74,714,000 and the payment of $800,000 for real estate deposits. Cash flows used in investing activities are heavily dependent upon the investment of our net offering proceeds in real estate investments. We anticipate cash flows used in investing activities to increase as we acquire additional properties and real estate-related investments.

Financing Activities

For the three months ended March 31, 2018, cash flows provided by financing activities related primarily to funds raised from investors in our offering in the amount of $52,094,000, partially offset by net payments on our line of credit and term loan of $21,800,000, the payment of offering costs of $4,125,000 in connection with our offering and distributions to our common stockholders of $2,799,000. For the three months ended March 31, 2017, cash flows provided by financing activities related primarily to funds raised from investors in our offering in the amount of $76,125,000, partially offset by the payment of offering costs of $3,009,000 in connection with our offering. We anticipate cash flows from financing activities to increase in the future as we raise additional funds from investors and incur debt to acquire properties.

Distributions

Our board of directors authorized, on a quarterly basis, a daily distribution to our stockholders of record as of the close of business on each day of the period commencing on May 1, 2016 and ending on June 30, 2018. The daily distributions were or will be calculated based on 365 days in the calendar year and are equal to $0.001643836 per share of our Class T and Class I common stock, which is equal to an annualized distribution of $0.60 per share. These distributions were or will be aggregated and paid in cash or shares of our common stock pursuant to our DRIP monthly in arrears, only from legally available funds.

The amount of distributions paid to our stockholders is determined quarterly by our board of directors and is dependent on a number of factors, including funds available for payment of distributions, our financial condition, capital expenditure requirements and annual distribution requirements needed to maintain our qualification as a REIT under the Code. We have not established any limit on the amount of offering proceeds that may be used to fund distributions, except that, in accordance with

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our organizational documents and Maryland law, we may not make distributions that would: (i) cause us to be unable to pay our debts as they become due in the usual course of business; or (ii) cause our total assets to be less than the sum of our total liabilities plus senior liquidation preferences.

The distributions paid for the three months ended March 31, 2018 and 2017, along with the amount of distributions reinvested pursuant to the DRIP and the sources of distributions as compared to cash flows from operations were as follows:

	Three Months Ended March 31,
	2018				2017
Distributions paid in cash	$	2,799,000			$	755,000
Distributions reinvested	3,606,000				1,063,000
	$	6,405,000			$	1,818,000
Sources of distributions:
Cash flows from operations	$	4,692,000	73.3	%	$	1,390,000	76.5	%
Offering proceeds	1,713,000		26.7		428,000		23.5
	$	6,405,000	100	%	$	1,818,000	100	%

Under GAAP, certain acquisition related expenses, such as expenses incurred in connection with property acquisitions accounted for as business combinations, are expensed, and therefore, subtracted from cash flows from operations. However, these expenses may be paid from offering proceeds or debt.

Our distributions of amounts in excess of our current and accumulated earnings and profits have resulted in a return of capital to our stockholders, and all or any portion of a distribution to our stockholders may be paid from offering proceeds. The payment of distributions from our offering proceeds could reduce the amount of capital we ultimately invest in assets and negatively impact the amount of income available for future distributions.

As of March 31, 2018, we had an amount payable of $8,145,000 to our advisor or its affiliates primarily for the 2.25% Contingent Advisor Payment portion of the total acquisition fee payable to our advisor or its affiliates, which will be paid from cash flows from operations in the future as it becomes due and payable by us in the ordinary course of business consistent with our past practice. See Note 12, Related Party Transactions — Acquisition and Development Stage — Acquisition Fee, to our accompanying condensed consolidated financial statements, for a further discussion.

As of March 31, 2018, no amounts due to our advisor or its affiliates had been deferred, waived or forgiven other than $80,000 in asset management fees waived by our advisor in 2016, which was equal to the amount of distributions payable from May 1, 2016 through June 27, 2016, the day prior to our first property acquisition. Other than such waiver of asset management fees by our advisor to provide us with additional funds to pay initial distributions to our stockholders through June 27, 2016, our advisor and its affiliates, including our co-sponsors, have no obligation to defer or forgive fees owed by us to our advisor or its affiliates or to advance any funds to us. In the future, if our advisor or its affiliates do not defer or continue to defer, waive or forgive amounts due to them, this would negatively affect our cash flows from operations, which could result in us paying distributions, or a portion thereof, using borrowed funds. As a result, the amount of proceeds available for investment and operations would be reduced, or we may incur additional interest expense as a result of borrowed funds.

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The distributions paid for the three months ended March 31, 2018 and 2017, along with the amount of distributions reinvested pursuant to the DRIP and the sources of our distributions as compared to funds from operations attributable to controlling interest, or FFO, were as follows:

	Three Months Ended March 31,
	2018				2017
Distributions paid in cash	$	2,799,000			$	755,000
Distributions reinvested	3,606,000				1,063,000
	$	6,405,000			$	1,818,000
Sources of distributions:
FFO attributable to controlling interest	$	4,957,000	77.4	%	$	1,626,000	89.4	%
Offering proceeds	1,448,000		22.6		192,000		10.6
	$	6,405,000	100	%	$	1,818,000	100	%

The payment of distributions from sources other than FFO may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of borrowed funds. For a further discussion of FFO, a non-GAAP financial measure, including a reconciliation of our GAAP net income (loss) to FFO, see Funds from Operations and Modified Funds from Operations, below.

Financing

We intend to continue to finance a portion of the purchase price of our investments in real estate and real estate-related investments by borrowing funds. We anticipate that, after an initial phase of our operations (prior to the investment of all of the net proceeds of our offering) when we may employ greater amounts of leverage to enable us to acquire properties more quickly and therefore generate distributions for our stockholders sooner, our overall leverage will not exceed 50.0% of the combined market value of all of our properties and other real estate-related investments, as determined at the end of each calendar year beginning with our first full year of operations. For these purposes, the fair market value of each asset will be equal to the contract purchase price paid for the asset or, if the asset was appraised subsequent to the date of purchase, then the fair market value will be equal to the value reported in the most recent independent appraisal of the asset. Our policies do not limit the amount we may borrow with respect to any individual investment. As of March 31, 2018, our aggregate borrowings were 15.1% of the combined market value of all of our real estate investments.

Under our charter, we have a limitation on borrowing that precludes us from borrowing in excess of 300% of our net assets without the approval of a majority of our independent directors. Net assets for purposes of this calculation are defined to be our total assets (other than intangibles), valued at cost prior to deducting depreciation, amortization, bad debt and other non-cash reserves, less total liabilities. Generally, the preceding calculation is expected to approximate 75.0% of the aggregate cost of our real estate and real estate-related investments before depreciation, amortization, bad debt and other similar non-cash reserves. In addition, we may incur mortgage debt and pledge some or all of our real properties as security for that debt to obtain funds to acquire additional real estate or for working capital. We may also borrow funds to satisfy the REIT tax qualification requirement that we distribute at least 90.0% of our annual taxable income, excluding net capital gains, to our stockholders. Furthermore, we may borrow if we otherwise deem it necessary or advisable to ensure that we maintain our qualification as a REIT for federal income tax purposes. As of May 11, 2018 and March 31, 2018, our leverage did not exceed 300% of the value of our net assets.

Mortgage Loans Payable, Net

For a discussion of our mortgage loans payable, net, see Note 6, Mortgage Loans Payable, Net, to our accompanying condensed consolidated financial statements.

Line of Credit and Term Loan

For a discussion of our line of credit and term loan, see Note 7, Line of Credit and Term Loan, to our accompanying condensed consolidated financial statements.

REIT Requirements

In order to maintain our qualification as a REIT for federal income tax purposes, we are required to make distributions to our stockholders of at least 90.0% of our annual taxable income, excluding net capital gains. In the event that there is a shortfall in net cash available due to factors including, without limitation, the timing of such distributions or the timing of the collection of receivables, we may seek to obtain capital to pay distributions by means of secured debt financing through one or more

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unaffiliated third parties. We may also pay distributions from cash from capital transactions including, without limitation, the sale of one or more of our properties or from the proceeds of our offering.

Commitments and Contingencies

For a discussion of our commitments and contingencies, see Note 9, Commitments and Contingencies, to our accompanying condensed consolidated financial statements.

Debt Service Requirements

Typically, a significant liquidity need is the payment of principal and interest on our outstanding indebtedness. As of March 31, 2018, we had $11,538,000 ($11,483,000, including premium and deferred financing costs, net) of fixed-rate mortgage loans payable outstanding secured by our properties. As of March 31, 2018, we had $62,300,000 outstanding, and $137,700,000 remained available under our line of credit and term loan. See Note 6, Mortgage Loans Payable, Net, and Note 7, Line of Credit and Term Loan, to our accompanying condensed consolidated financial statements.

We are required by the terms of certain loan documents to meet certain covenants, such as leverage ratios, net worth ratios, debt service coverage ratios, fixed charge coverage ratios and reporting requirements. As of March 31, 2018, we were in compliance with all such covenants and requirements on our mortgage loans payable and our line of credit and term loan. As of March 31, 2018, the weighted average effective interest rate on our outstanding debt was 3.77% per annum.

Contractual Obligations

The following table provides information with respect to: (i) the maturity and scheduled principal repayment of our secured mortgage loans payable and our line of credit and term loan; (ii) interest payments on our mortgage loans payable and our line of credit and term loan; and (iii) ground and other lease obligations as of March 31, 2018:

	Payments Due by Period
	2018		2019-2020		2021-2022		Thereafter		Total
Principal payments — fixed-rate debt	$	290,000	$	8,443,000	$	644,000	$	2,161,000	$	11,538,000
Interest payments — fixed-rate debt	426,000		829,000		263,000		332,000		1,850,000
Principal payments — variable-rate debt	—		62,300,000		—		—		62,300,000
Interest payments — variable-rate debt (based on rates in effect as of March 31, 2018)	1,690,000		1,494,000		—		—		3,184,000
Ground and other lease obligations	88,000		496,000		496,000		10,697,000		11,777,000
Total	$	2,494,000	$	73,562,000	$	1,403,000	$	13,190,000	$	90,649,000

Off-Balance Sheet Arrangements

As of March 31, 2018, we had no off-balance sheet transactions, nor do we currently have any such arrangements or obligations.

Inflation

During the three months ended March 31, 2018 and 2017, inflation has not significantly affected our operations because of the moderate inflation rate; however, we expect to be exposed to inflation risk as income from future long-term leases will be the primary source of our cash flows from operations. There are provisions in the majority of our tenant leases that will protect us from the impact of inflation. These provisions will include negotiated rental increases, reimbursement billings for operating expense pass-through charges, and real estate tax and insurance reimbursements on a per square foot allowance. However, due to the long-term nature of the anticipated leases, among other factors, the leases may not re-set frequently enough to cover inflation.

Related Party Transactions

For a discussion of related party transactions, see Note 12, Related Party Transactions, to our accompanying condensed consolidated financial statements.

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Funds from Operations and Modified Funds from Operations

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, a non-GAAP measure, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of a REIT. The use of funds from operations is recommended by the REIT industry as a supplemental performance measure, and our management uses FFO to evaluate our performance over time. FFO is not equivalent to our net income (loss) as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on funds from operations approved by the Board of Governors of NAREIT, as revised in February 2004, or the White Paper. The White Paper defines funds from operations as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and 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 funds from operations. Our 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, which is the case if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or as requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. In addition, we believe it is appropriate to exclude impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions, which can change over time. Testing for an impairment of an asset is a continuous process and is analyzed on a quarterly basis. If certain impairment indications exist in an asset, and if the asset’s carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property and any other ancillary cash flows at a property or group level under GAAP) from such asset, an impairment charge would be recognized. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated future undiscounted cash flows and that we intend to have a relatively limited term of our operations, it could be difficult to recover any impairment charges through the eventual sale of the property.

Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate-related depreciation and amortization and impairments, provides a further understanding of our performance to investors and to our management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and interest costs, which may not be immediately apparent from net income (loss).

However, FFO and modified funds from operations attributable to controlling interest, or MFFO, as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income (loss) or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

Changes in the accounting and reporting rules under GAAP that were put into effect and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses, as items that are expensed as operating expenses under GAAP. We believe these fees and expenses do not affect our overall long-term operating performance. 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. While other start up entities may also experience significant acquisition activity during their initial years, we believe that publicly registered, non-listed REITs are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after the acquisition activity ceases. We will use the proceeds raised in our offering to acquire properties, and we intend to begin the process of achieving a liquidity event (i.e., listing of our shares of common stock on a national securities exchange, a merger or sale, the sale of all or substantially all of our assets, or another similar transaction) within five years after the completion of our offering stage, which is generally comparable to other publicly

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registered, non-listed REITs. Thus, we do not intend to continuously purchase assets and intend to have a limited life. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Institute for Portfolio Alternatives, or the IPA, an industry trade group, has standardized a measure known as modified funds from operations, which the IPA has recommended as a supplemental performance measure for publicly registered, non-listed REITs, and which we believe to be another appropriate supplemental performance measure to reflect the operating performance of a publicly registered, non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income (loss) as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes expensed acquisition fees and expenses that affect our operations only in periods in which properties are acquired and that we consider more reflective of investing activities, as well as other non-operating items included in FFO, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring our properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance after our offering stage has been completed and our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the publicly registered, non-listed REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance after our offering stage and acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of our operating performance after our offering stage has been completed and properties have been acquired, as it excludes expensed acquisition fees and expenses that have a negative effect on our operating performance during the periods in which properties are acquired.

We define 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 modified funds from operations as funds from operations further adjusted for the following items included in the determination of GAAP net income (loss): acquisition fees and expenses; amounts relating to deferred rent and amortization of above- and below-market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to closer to an expected to be received cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; mark-to-market adjustments included in net income (loss); gains or losses included in net income (loss) 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 modified funds from operations on the same basis. The accretion of discounts and amortization of premiums on debt investments, unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income (loss) in calculating cash flows from operations and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. We are responsible for managing interest rate, hedge and foreign exchange risk, and we do not rely on another party to manage such risk. In as much as interest rate hedges will not be a fundamental part of our operations, we believe it is appropriate to exclude such gains and losses in calculating MFFO, as such gains and losses are based on market fluctuations and may not be directly related or attributable to our operations.

Our MFFO calculation complies with the IPA’s Practice Guideline described above. In calculating MFFO, we exclude acquisition related expenses, amortization of above- and below-market leases, change in deferred rent and the adjustments of such items related to redeemable noncontrolling interests. The other adjustments included in the IPA’s Practice Guideline are not applicable to us for the three months ended March 31, 2018 and 2017. Acquisition fees and expenses are paid in cash by us, and we have not set aside or put into escrow any specific amount of proceeds from our offering to be used to fund acquisition fees and expenses. The purchase of real estate and real estate-related investments, and the corresponding expenses associated with that process, is a key operational feature of our business plan in order to generate operating revenues and cash flows to make distributions to our stockholders. However, we do not intend to fund acquisition fees and expenses in the future from operating revenues and cash flows, nor from the sale of properties and subsequent redeployment of capital and concurrent incurring of acquisition fees and expenses. Acquisition fees and expenses include payments to our advisor or its affiliates and third parties. Such fees and expenses are not reimbursed by our advisor or its affiliates and third parties, and therefore if there is no further cash on hand from the proceeds from the sale of shares of our common stock to fund future acquisition fees and expenses, such fees and expenses will need to be paid from either additional debt, operational earnings or cash flows, net proceeds from the sale of properties or from ancillary cash flows. 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

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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. In the future, we may pay acquisition fees or reimburse acquisition expenses due to our advisor and its affiliates, or a portion thereof, with net proceeds from borrowed funds, operational earnings or cash flows, net proceeds from the sale of properties or ancillary cash flows. As a result, the amount of proceeds from borrowings available for investment and operations would be reduced, or we may incur additional interest expense as a result of borrowed funds. Nevertheless, our advisor or its affiliates will not accrue any claim on our assets if acquisition fees and expenses are not paid from the proceeds of our offering.

Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income (loss) in determining cash flows from operations. In addition, we view fair value adjustments of derivatives and gains and losses from dispositions of assets as items which are unrealized and may not ultimately be realized or as items which are not reflective of on-going operations and are therefore typically adjusted for when assessing operating performance.

Our management uses MFFO and the adjustments used to calculate it in order to evaluate our performance against other publicly registered, non-listed REITs which intend to have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to publicly registered, non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence, that the use of such measures may be useful to investors. For example, acquisition fees and expenses are intended to be funded from the proceeds of our offering and other financing sources and not from operations. By excluding expensed acquisition fees and expenses, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such charges that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate funds from operations and modified funds from operations 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 our performance, as an alternative to cash flows from operations, which is an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with other measurements as an indication of our performance. MFFO has limitations as a performance measure in offerings such as ours where the price of a share of common stock is a stated value and there is no net asset value determination during the offering stage and for a period thereafter. MFFO may be useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. FFO and MFFO are not useful measures in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining FFO and MFFO.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the publicly registered, non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO.

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The following is a reconciliation of net loss, which is the most directly comparable GAAP financial measure, to FFO and MFFO for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Net loss	$	(2,236,000	)	$	(85,000	)
Add:
Depreciation and amortization — consolidated properties	7,195,000			1,711,000
Net loss attributable to redeemable noncontrolling interests	67,000			—
Less:
Depreciation and amortization related to redeemable noncontrolling interests	(69,000		)	—
FFO attributable to controlling interest	$	4,957,000		$	1,626,000
Acquisition related expenses(1)	$	95,000		$	73,000
Amortization of above- and below-market leases(2)	(45,000		)	(34,000		)
Change in deferred rent(3)	(633,000		)	(273,000		)
Adjustments for redeemable noncontrolling interests(4)	—			—
MFFO attributable to controlling interest	$	4,374,000		$	1,392,000
Weighted average Class T and Class I common shares outstanding — basic and diluted	45,136,647			14,655,107
Net loss per Class T and Class I common share — basic and diluted	$	(0.05	)	$	(0.01	)
FFO attributable to controlling interest per Class T and Class I common share — basic and diluted	$	0.11		$	0.11
MFFO attributable to controlling interest per Class T and Class I common share — basic and diluted	$	0.10		$	0.09

___________

(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, 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 interests’ share of the adjustments described in notes (1) – (3) above to convert our FFO to MFFO.

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Net Operating Income

Net operating income, or NOI, is a non-GAAP financial measure that 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 and interest expense. Acquisition fees and expenses are paid in cash by us, and we have not set aside or put into escrow any specific amount of proceeds from our offering to be used to fund acquisition fees and expenses. The purchase of real estate and real estate-related investments, and the corresponding expenses associated with that process, is a key operational feature of our business plan in order to generate operating revenues and cash flows to make distributions to our stockholders. However, we do not intend to fund acquisition fees and expenses in the future from operating revenues and cash flows, nor from the sale of properties and subsequent redeployment of capital and concurrent incurring of acquisition fees and expenses. Acquisition fees and expenses include payments to our advisor or its affiliates and third parties. Such fees and expenses are not reimbursed by our advisor or its affiliates and third parties, and therefore, if there is no further cash on hand from the proceeds from the sale of shares of our common stock to fund future acquisition fees and expenses, such fees and expenses will need to be paid from either additional debt, operational earnings or cash flows, net proceeds from the sale of properties or from ancillary cash flows. As a result, the amount of proceeds available for investment, operations and non-operating expenses would be reduced, or we may incur additional interest expense as a result of borrowed funds. Nevertheless, our advisor or its affiliates will not accrue any claim on our assets if acquisition fees and expenses are not paid from the proceeds of our offering. 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 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.

NOI is not equivalent to our net income (loss) as determined under GAAP and may not be a useful measure in measuring operational income or cash flows. Furthermore, NOI is 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 our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. NOI should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income (loss) or in its applicability in evaluating our operating performance. Investors are also cautioned that NOI should only be used to assess our operational performance in periods in which we have not incurred or accrued any acquisition related expenses.

We believe that NOI is an appropriate supplemental performance measure to reflect the operating performance of our operating assets because NOI excludes certain items that are not associated with the management of the properties. We believe that NOI is a widely accepted measure of comparative operating performance in the real estate community. However, our use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount.

To facilitate understanding of this financial measure, the following is a reconciliation of net loss, which is the most directly comparable GAAP financial measure, to NOI for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Net loss	$	(2,236,000	)	$	(85,000	)
General and administrative	2,120,000			748,000
Acquisition related expenses	95,000			73,000
Depreciation and amortization	7,195,000			1,711,000
Interest expense	1,084,000			418,000
Net operating income	$	8,258,000		$	2,865,000

Subsequent Events

For a discussion of our subsequent events, see Note 18, Subsequent Events, to our accompanying condensed consolidated financial statements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. In pursuing our business plan, we expect that the primary market risk to which we will be exposed is interest rate risk. There were no material changes in our market risk exposures, or in the methods we use to manage market risk, from those that were provided for in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018.

Interest Rate Risk

We are exposed to the effects of interest rate changes primarily as a result of long-term debt used to acquire properties and make loans and other permitted investments. Our interest rate risk is monitored using a variety of techniques. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings, prepayment penalties and cash flows and to lower overall borrowing costs while taking into account variable interest rate risk. To achieve our objectives, we may borrow or lend at fixed or variable rates. We may also enter into derivative financial instruments such as interest rate swaps and caps in order to mitigate our interest rate risk on a related financial instrument. We will not enter into derivatives or interest rate transactions for speculative purposes.

As of March 31, 2018, the table below presents the principal amounts and weighted average interest rates by year of expected maturity to evaluate the expected cash flows and sensitivity to interest rate changes.

	Expected Maturity Date
	2018			2019			2020			2021			2022			Thereafter			Total			Fair Value
Fixed-rate debt — principal payments	$	290,000		$	407,000		$	8,036,000		$	314,000		$	330,000		$	2,161,000		$	11,538,000		$	11,628,000
Weighted average interest rate on maturing fixed-rate debt	5.10		%	5.10		%	4.79		%	5.25		%	5.25		%	5.25		%	4.92		%	—
Variable-rate debt — principal payments	$	—		$	62,300,000		$	—		$	—		$	—		$	—		$	62,300,000		$	62,294,000
Weighted average interest rate on maturing variable-rate debt (based on rates in effect as of March 31, 2018)	—		%	3.55		%	—		%	—		%	—		%	—		%	3.55		%	—

Mortgage Loans Payable, Net and Line of Credit and Term Loan

Mortgage loans payable were $11,538,000 ($11,483,000, including premium and deferred financing costs, net) as of March 31, 2018. As of March 31, 2018, we had two fixed-rate mortgage loans with interest rates ranging from 4.77% to 5.25% per annum. In addition, as of March 31, 2018, we had $62,300,000 outstanding under our line of credit and term loan at a weighted average interest rate of 3.55% per annum.

As of March 31, 2018, the weighted average effective interest rate on our outstanding debt was 3.77% per annum. An increase in the variable interest rate on our variable-rate line of credit and term loan constitutes a market risk. As of March 31, 2018, a 0.50% increase in the market rates of interest would have increased our overall annualized interest expense on our variable-rate line of credit and term loan by $316,000, or 11.10% of total annualized interest expense on our mortgage loans payable and our line of credit and term loan. See Note 6, Mortgage Loans Payable, Net, and Note 7, Line of Credit and Term Loan, to our accompanying condensed consolidated financial statements, for a further discussion.

Other Market Risk

In addition to changes in interest rates, the value of our future investments is subject to fluctuations based on changes in local and regional economic conditions and changes in the creditworthiness of tenants, which may affect our ability to refinance our debt if necessary.

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Item 4. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and we necessarily were required to apply our judgment in evaluating whether the benefits of the controls and procedures that we adopt outweigh their costs.

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation as of March 31, 2018 was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures, as of March 31, 2018, were effective at the reasonable assurance level.

(b) Changes in internal control over financial reporting. There were no changes in internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

There were no material changes from the risk factors previously disclosed in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018, except as noted below.

We have not had sufficient cash available from operations to pay distributions, and therefore, we have paid a portion of distributions from the net proceeds of our offering, and in the future, may pay distributions from borrowings in anticipation of future cash flows or from other sources. Any such distributions may reduce the amount of capital we ultimately invest in assets, may negatively impact the value of our stockholders’ investment and may cause subsequent investors to experience dilution.

Distributions payable to our stockholders may include a return of capital, rather than a return on capital, and it is likely that we will use net offering proceeds to fund a majority of our initial distributions. We have not established any limit on the amount of net proceeds from our offering that may be used to fund distributions, except that, in accordance with our organizational documents and Maryland law, we may not make distributions that would: (i) cause us to be unable to pay our debts as they become due in the usual course of business; or (ii) cause our total assets to be less than the sum of our total liabilities plus senior liquidation preferences. The actual amount and timing of distributions will be determined by our board of directors in its sole discretion and typically will depend on the amount of funds available for distribution, which will depend on items such as our financial condition, current and projected capital expenditure requirements, tax considerations and annual distribution requirements needed to maintain our qualification as a REIT. As a result, our distribution rate and payment frequency vary from time to time.

We have used the net proceeds from our offering and our advisor has waived certain fees payable to it as discussed below, and in the future, may use the net proceeds from our offering, borrowed funds, or other sources, to pay cash distributions to our stockholders in order to maintain our qualification as a REIT, which may reduce the amount of proceeds available for investment and operations, cause us to incur additional interest expense as a result of borrowed funds or cause subsequent investors to experience dilution. Further, if the aggregate amount of cash distributed in any given year exceeds the amount of our current and accumulated earnings and profits, the excess amount will be deemed a return of capital.

Our board of directors authorized, on a quarterly basis, a daily distribution to our stockholders of record as of the close of business on each day of the period commencing on May 1, 2016 and ending on June 30, 2018. The daily distributions were or will be calculated based on 365 days in the calendar year and are equal to $0.001643836 per share of our Class T and Class I common stock, which is equal to an annualized distribution of $0.60 per share. These distributions were or will be aggregated and paid in cash or shares of our common stock pursuant to the DRIP monthly in arrears, only from legally available funds.

The amount of distributions paid to our stockholders is determined quarterly by our board of directors and is dependent on a number of factors, including funds available for payment of distributions, our financial condition, capital expenditure requirements and annual distribution requirements needed to maintain our qualification as a REIT under the Code. We have not established any limit on the amount of net offering proceeds that may be used to fund distributions, except that, in accordance with our organizational documents and Maryland law, we may not make distributions that would: (i) cause us to be unable to pay our debts as they become due in the usual course of business; or (ii) cause our total assets to be less than the sum of our total liabilities plus senior liquidation preferences.

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The distributions paid for the three months ended March 31, 2018 and 2017, along with the amount of distributions reinvested pursuant to the DRIP and the sources of distributions as compared to cash flows from operations were as follows:

	Three Months Ended March 31,
	2018				2017
Distributions paid in cash	$	2,799,000			$	755,000
Distributions reinvested	3,606,000				1,063,000
	$	6,405,000			$	1,818,000
Sources of distributions:
Cash flows from operations	$	4,692,000	73.3	%	$	1,390,000	76.5	%
Offering proceeds	1,713,000		26.7		428,000		23.5
	$	6,405,000	100	%	$	1,818,000	100	%

Under GAAP, certain acquisition related expenses, such as expenses incurred in connection with property acquisitions accounted for as business combinations, are expensed, and therefore, subtracted from cash flows from operations. However, these expenses may be paid from offering proceeds or debt.

Our distributions of amounts in excess of our current and accumulated earnings and profits have resulted in a return of capital to our stockholders, and all or any portion of a distribution to our stockholders may be paid from net offering proceeds. The payment of distributions from our net offering proceeds could reduce the amount of capital we ultimately invest in assets and negatively impact the amount of income available for future distributions.

As of March 31, 2018, we had an amount payable of $8,145,000 to our advisor or its affiliates primarily for the 2.25% Contingent Advisor Payment portion of the total acquisition fee payable to our advisor or its affiliates, which will be paid from cash flows from operations in the future as it becomes due and payable by us in the ordinary course of business consistent with our past practice.

As of March 31, 2018, no amounts due to our advisor or its affiliates had been deferred, waived or forgiven other than $80,000 in asset management fees waived by our advisor in 2016, which was equal to the amount of distributions payable from May 1, 2016 through June 27, 2016, the day prior to our first property acquisition. Other than the waiver of such asset management fees by our advisor to provide us with additional funds to pay initial distributions to our stockholders through June 27, 2016, our advisor and its affiliates, including our co-sponsors, have no obligation to defer or forgive fees owed by us to our advisor or its affiliates or to advance any funds to us. In the future, if our advisor or its affiliates do not defer or continue to defer, waive or forgive amounts due to them, this would negatively affect our cash flows from operations, which could result in us paying distributions, or a portion thereof, using borrowed funds. As a result, the amount of proceeds available for investment and operations would be reduced, or we may incur additional interest expense as a result of borrowed funds.

The distributions paid for the three months ended March 31, 2018 and 2017, along with the amount of distributions reinvested pursuant to the DRIP and the sources of our distributions as compared to FFO were as follows:

	Three Months Ended March 31,
	2018				2017
Distributions paid in cash	$	2,799,000			$	755,000
Distributions reinvested	3,606,000				1,063,000
	$	6,405,000			$	1,818,000
Sources of distributions:
FFO attributable to controlling interest	$	4,957,000	77.4	%	$	1,626,000	89.4	%
Offering proceeds	1,448,000		22.6		192,000		10.6
	$	6,405,000	100	%	$	1,818,000	100	%

The payment of distributions from sources other than FFO may reduce the amount of proceeds available for investment and operations or cause us to incur additional interest expense as a result of borrowed funds. For a further discussion of FFO, a non-GAAP financial measure, including a reconciliation of our GAAP net income (loss) to FFO, see Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Funds from Operations and Modified Funds from Operations.

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The estimated per share NAV may not be an accurate reflection of the fair value of our assets and liabilities and likely will not represent the amount of net proceeds that would result if we were liquidated or dissolved or completed a merger or other sale of our company.

On April 6, 2018, our board of directors, at the recommendation of the audit committee, which is comprised solely of independent directors, unanimously approved and established an estimated per share NAV of our common stock of $9.65. We are providing this estimated per share NAV to assist broker-dealers in connection with their obligations under National Association of Securities Dealers Conduct Rule 2340, as required by FINRA with respect to customer account statements. The valuation was performed in accordance with the methodology provided in Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the IPA in April 2013, in addition to guidance from the SEC.

The estimated per share NAV was determined after consultation with our advisor and an independent third-party valuation firm, the engagement of which was approved by the audit committee. FINRA rules provide no guidance on the methodology an issuer must use to determine its estimated per share NAV. As with any valuation methodology, our independent valuation firm’s methodology is based upon a number of estimates and assumptions that may not be accurate or complete. Different parties with different assumptions and estimates could derive a different estimated per share NAV, and these differences could be significant.

The estimated per share NAV is not audited or reviewed by our independent registered public accounting firm and does not represent the fair value of our assets or liabilities according to GAAP. Accordingly, with respect to the estimated per share NAV, we can give no assurance that:

• a stockholder would be able to resell his or her shares at our estimated per share NAV;

• a stockholder would ultimately realize distributions per share equal to our estimated per share NAV upon liquidation of our assets and settlement of our liabilities or a sale of the company;

• our shares of common stock would trade at our estimated per share NAV on a national securities exchange;

• an independent third-party appraiser or other third-party valuation firm, other than the third-party valuation firm engaged by the board of directors to assist in its determination of the estimated per share NAV, would agree with our estimated per share NAV; or

• the methodology used to estimate our per share NAV would be acceptable to FINRA or comply with the Employee Retirement Income Security Act of 1974, or ERISA, reporting requirements.

Further, the estimated per share NAV is based on the estimated value of our assets less the estimated value of our liabilities, divided by the number of shares outstanding on a fully diluted basis, calculated as of December 31, 2017. The value of our shares may fluctuate over time in response to developments related to individual assets in the portfolio and the management of those assets and in response to the real estate and finance markets. Going forward, we intend to engage an independent valuation firm to assist us with publishing an updated estimated per share NAV on at least an annual basis.

For a full description of the methodologies used to value our assets and liabilities in connection with the calculation of the estimated per share NAV, see our Current Report on Form 8-K filed with the SEC on April 9, 2018.

It may be difficult to accurately reflect material events that may impact our estimated per share NAV between valuations and accordingly, we may be selling and repurchasing shares at too high or too low a price.

Our independent valuation firm will calculate estimates of the market value of our real estate investments, and our board of directors will determine the net value of our real estate investments and liabilities taking into consideration such estimate provided by the independent valuation firm. Our board of directors is ultimately responsible for determining the estimated per share NAV. Since our board of directors will determine our estimated per share NAV at least annually, there may be changes in the value of our assets that are not fully reflected in the most recent estimated per share NAV. As a result, the published estimated per share NAV may not fully reflect changes in value that may have occurred since the prior valuation. Furthermore, our advisor will monitor our portfolio, but it may be difficult to reflect changing market conditions or material events that may impact the value of our portfolio between valuations, or to obtain timely or complete information regarding any such events. Therefore, the estimated per share NAV published before the announcement of an extraordinary event may differ significantly from our actual per share NAV until such time as sufficient information is available and analyzed, the financial impact is fully evaluated, and the appropriate adjustment is made to our estimated per share NAV, as determined by our board of directors. Any resulting disparity may be to the detriment of a purchaser of our shares or a stockholder selling shares pursuant to our share repurchase plan.

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A high concentration of our properties in a particular geographic area would magnify the effects of downturns in that geographic area.

To the extent that we have a concentration of properties in any particular geographic area, any adverse situation that disproportionately effects that geographic area would have a magnified adverse effect on our portfolio. As of May 11, 2018, our properties located in Florida, Nevada and Alabama accounted for approximately 16.9%, 12.2% and 11.4%, respectively, of the annualized base rent or annualized NOI of our total property portfolio. Accordingly, there is a geographic concentration of risk subject to fluctuations in each state’s economy.

A significant portion of our annual base rent may be concentrated in a small number of tenants. Therefore, non-renewals, terminations or lease defaults by any of these significant tenants could reduce our net income and have a negative effect on our ability to pay distributions to our stockholders.

As of May 11, 2018, rental payments by two of our tenants, Colonial Oaks Master Tenant, LLC and Prime Healthcare Services – Reno, accounted for approximately 11.1% and 10.4%, respectively, of our annualized base rent or annualized net operating income. The success of our investments materially depends upon the financial stability of the tenants leasing the properties we own. Therefore, a non-renewal after the expiration of a lease term, termination, default or other failure to meet rental obligations by significant tenants, such as Colonial Oaks Master Tenant, LLC and Prime Healthcare Services – Reno, would significantly lower our net income. These events could cause us to reduce the amount of distributions to our stockholders.

Reductions in reimbursement from third-party payors, including Medicare and Medicaid, could adversely affect the profitability of our tenants and hinder their ability to make rent payments to us.

Sources of revenue for our tenants may include the federal Medicare program, state Medicaid programs, private insurance carriers and health maintenance organizations, among others. Efforts by such payors to reduce healthcare costs will likely continue, which may result in reductions or slower growth in reimbursement for certain services provided by some of our tenants. In addition, the healthcare billing rules and regulations are complex, and the failure of any of our tenants to comply with various laws and regulations could jeopardize their ability to continue participating in Medicare, Medicaid and other government sponsored payment programs. Moreover, the state and federal governmental healthcare programs are subject to reductions by state and federal legislative actions. The Medicare Access & CHIP Reauthorization Act of 2015, or MACRA, introduced two new methodologies that will focus upon payment based upon quality outcomes. The first model is the Merit-Based Incentive Payment System, or MIPS, which combines the Physician Quality Reporting System, or PQRS, and Meaningful Use program with the Value Based Modifier program to provide for one payment model based upon (i) quality, (ii) resource use, (iii) clinical practice improvement and (iv) advancing care information through the use of certified Electronic Health Record, or EHR, technology. The second model is the Advanced Alternative Payment Models, or APM, which requires the physician to participate in a risk share arrangement for reimbursement related to his or her patients while utilizing a certified health record and reporting on specific quality metrics. There are a number of physicians that will not qualify for the APM payment method. Therefore, this change in reimbursement models may impact our tenants’ payments and create uncertainty in the tenants’ financial condition.

Furthermore, beginning in 2016, the Centers for Medicare and Medicaid Services has applied a negative payment adjustment to individual eligible professionals, Comprehensive Primary Care practice sites, and group practices participating in the PQRS group practice reporting option (including Accountable Care Organizations) that do not satisfactorily report PQRS in 2014. Program participation during a calendar year will affect payments two years later. Providers can appeal the determination, but if the provider is not successful, the provider’s reimbursement may be adversely impacted, which would adversely impact a tenant’s ability to make rent payments to us.

The healthcare industry continues to face various challenges, including increased government and private payor pressure on healthcare providers to control or reduce costs. It is possible that our tenants will continue to experience a shift in payor mix away from fee-for-service payors, resulting in an increase in the percentage of revenues attributable to reimbursement based upon value based principles and quality driven managed care programs, and general industry trends that include pressures to control healthcare costs. The federal government’s goal is to move approximately 90.0% of its reimbursement for providers to be based upon quality outcome models. Pressures to control healthcare costs and a shift away from traditional health insurance reimbursement to payments based upon quality outcomes have increased the uncertainty of payments.

In addition, the healthcare legislation passed in 2010 (discussed below) included new payment models with new shared savings programs and demonstration programs that include bundled payment models and payments contingent upon reporting on satisfaction of quality benchmarks. The new payment models will likely change how physicians are paid for services. These changes could have a material adverse effect on the financial condition of some or all of our tenants. The financial impact on

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our tenants could restrict their ability to make rent payments to us, which would have a material adverse effect on our business, financial condition and results of operations and our ability to pay distributions to you.

In 2014, state insurance exchanges were implemented which provide a new mechanism for individuals to obtain insurance. At this time, the number of payors that are participating in the state insurance exchanges varies, and in some regions there are very limited insurance plans available for individuals to choose from when purchasing insurance. In addition, not all healthcare providers will maintain participation agreements with the payors that are participating in the state health insurance exchange. Therefore, it is possible that our tenants may incur a change in their reimbursement if the tenant does not have a participation agreement with the state insurance exchange payors and a large number of individuals elect to purchase insurance from the state insurance exchange. Further, the rates of reimbursement from the state insurance exchange payors to healthcare providers will vary greatly. The rates of reimbursement will be subject to negotiation between the healthcare provider and the payor, which may vary based upon the market, the healthcare provider’s quality metrics, the number of providers participating in the area and the patient population, among other factors. Therefore, it is uncertain whether healthcare providers will incur a decrease in reimbursement from the state insurance exchange, which may impact a tenant’s ability to pay rent.

On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act of 2010, or the Patient Protection and Affordable Care Act, and on March 30, 2010, President Obama signed into law the Health Care and Education Reconciliation Act of 2010, or the Reconciliation Act, which in part modified the Patient Protection and Affordable Care Act, or the Reconciliation Act and the Patient Protection and Affordable Care Act collectively, the Healthcare Reform Act. The insurance plans that participated on the health insurance exchanges created by the Healthcare Reform Act were expecting to receive risk corridor payments to address the high risk claims that they paid through the exchange product. However, the federal government currently owes the insurance companies approximately $12.3 billion under the risk corridor payment program that is currently disputed by the federal government. The federal government is currently defending several lawsuits from the insurance plans that participate on the health insurance exchange. If the insurance companies do not receive the payments, the insurance companies may cease to participate on the insurance exchange which limits insurance options for patients. If patients do not have access to insurance coverage, it may adversely impact the tenants’ revenues and the tenants’ ability to pay rent.

On October 12, 2017, President Trump signed an Executive Order the purpose of which was to, among other things, (i) cut healthcare cost-sharing reduction subsidies, (ii) allow more small businesses to join together to purchase insurance coverage, (iii) extend short-term coverage policies, and (iv) expand employers’ ability to provide workers cash to buy coverage elsewhere. The Executive Order required the government agencies to draft regulations for consideration related to Associated Health Plans, short-term limited duration insurance and health reimbursement arrangements. At this time, the contemplated legislation has not been proposed. The Trump Administration also ceased to provide the cost-share subsidies to the insurance companies that offered the silver plan benefits on the Health Information Exchange. The termination of the cost-share subsidies would impact the subsidy payments due in 2017 and will likely adversely impact the insurance companies, causing an increase in the premium payments for the individual beneficiaries in 2018. 19 State Attorney Generals filed suit to force the Trump Administration to reinstate the cost-share subsidy payments. On October 25, 2017, a California judge ruled in favor of the Trump Administration and found that the federal government was not required to immediately reinstate payment for the cost-share subsidy. The injunction sought by the Attorney Generals’ lawsuit was denied. Subsequently, Maine Community Health Options filed suit against The United States of America in the United States Court of Federal Claims, Case No. 17-2057C (December 28, 2017) seeking damages and payment for the cost-sharing reduction payment. This claim is currently pending. Therefore, our tenants will likely see an increase in individuals who are self-pay or have a lower health benefit plan due to the increase in the premium payments. Our tenants’ collections and revenues may be adversely impacted by the change in the payor mix of their patients and it may adversely impact the tenants’ ability to make rent payments.

There are multiple lawsuits in several judicial districts brought by qualified health plans to recover the prior risk corridor payments that were anticipated to be paid as part of the health insurance exchange program. The multiple lawsuits are moving through the judicial process. If the Trump Administration or the court system determines that risk corridor or risk share payments are not required to be paid to the qualified health plans offering insurance coverage on the health insurance exchange program, the insurance companies may cease participation, causing millions of beneficiaries to lose insurance coverage. Therefore, our tenants may have an increase of self-pay patients and collections may decline, adversely impacting the tenants’ ability to pay rent.

On January 11, 2018, the Centers for Medicare and Medicaid Services, or CMS, issued guidance to support state efforts to improve Medicaid enrollee health outcomes by incentivizing community engagement among able-bodied, working-age Medicaid beneficiaries. The policy excludes individuals eligible for Medicaid due to a disability, elderly beneficiaries, children and pregnant women. CMS received proposals from 10 states seeking requirements for able-bodied Medicaid beneficiaries to engage in employment and community engagement initiatives. Kentucky and Indiana are the first states to obtain a waiver for their programs and require Medicaid beneficiaries to work or get ready for employment. If the “work requirement” expands to

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the states’ Medicaid programs it may decrease the number of patients eligible for Medicaid. The patients that are no longer eligible for Medicaid may become self-pay patients, which may adversely impact our tenants’ ability to receive reimbursement. If our tenants’ patient payor mix becomes more self-pay patients, it may impact our tenants’ ability to collect revenues and pay rent.

Comprehensive healthcare reform legislation could materially adversely affect our business, financial condition and results of operations and our ability to pay distributions to our stockholders.

The Healthcare Reform Act is intended to reduce the number of individuals in the U.S. without health insurance and effect significant other changes to the ways in which healthcare is organized, delivered and reimbursed. Included within the legislation is a limitation on physician-owned hospitals from expanding, unless the facility satisfies very narrow federal exceptions to this limitation. Therefore, if our tenants are physicians that own and refer to a hospital, the hospital would be limited in its operations and expansion potential, which may limit the hospital’s services and resulting revenues and may impact the owner’s ability to make rental payments. The Healthcare Reform Act changes continue to impact reimbursement models from the state and federal healthcare programs, the changes in reimbursement may adversely impact our tenants. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law and repeals the individual mandate beginning in 2019. Therefore, our tenants may have more patients that do not have insurance coverage, which may adversely impact the tenants’ collections and revenues.

Furthermore, on October 12, 2017, President Trump signed an Executive Order the purpose of which was to, among other things, (i) cut healthcare cost-sharing reduction subsidies, (ii) allow more small businesses to join together to purchase insurance coverage, (iii) extend short-term coverage policies, and (iv) expand employers’ ability to provide workers cash to buy coverage elsewhere. If our tenants’ patients do not have insurance, it could adversely impact the tenants’ ability to pay rent and operate a practice.

In 2014, state insurance exchanges were implemented which provide a new mechanism for individuals to obtain insurance. At this time, the number of payors that are participating in the state insurance exchanges varies, and in some regions there are very limited insurance plans available for individuals to choose from when purchasing insurance. In addition, not all healthcare providers will maintain participation agreements with the payors that are participating in the state health insurance exchange. Therefore, it is possible that our tenants may incur a change in their reimbursement if the tenant does not have a participation agreement with the state insurance exchange payors and a large number of individuals elect to purchase insurance from the state insurance exchange. Further, the rates of reimbursement from the state insurance exchange payors to healthcare providers will vary greatly. The rates of reimbursement will be subject to negotiation between the healthcare provider and the payor, which may vary based upon the market, the healthcare provider’s quality metrics, the number of providers participating in the area and the patient population, among other factors. Therefore, it is uncertain whether healthcare providers will incur a decrease in reimbursement from the state insurance exchange, which may impact a tenant’s ability to pay rent.

There are also multiple lawsuits in several judicial districts brought by qualified health plans to recover the prior risk corridor payments that were anticipated to be paid as part of the health insurance exchange program. The multiple lawsuits are moving through the judicial process. Further, there is a current lawsuit, United States House of Representatives v. Price, which alleges that the Executive Branch of the United States of America exceeded its authority in implementing the risk corridor payments under the Healthcare Reform Act and therefore the payments should not be made. At this time, the case is pending. If the Trump Administration or the court system determines that risk corridor or risk share payments are not required to be paid to the qualified health plans offering insurance coverage on the health insurance exchange program, the insurance companies may cease participation, causing millions of beneficiaries to lose insurance coverage. Therefore, our tenants may have an increase of self-pay patients and collections may decline, adversely impacting the tenants’ ability to pay rent.

On January 11, 2018, CMS issued guidance to support state efforts to improve Medicaid enrollee health outcomes by incentivizing community engagement among able-bodied, working-age Medicaid beneficiaries. The policy excludes individuals eligible for Medicaid due to a disability, elderly beneficiaries, children and pregnant women. CMS received proposals from 10 states seeking requirements for able-bodied Medicaid beneficiaries to engage in employment and community engagement initiatives. Kentucky and Indiana are the first states to obtain a waiver for their programs and require Medicaid beneficiaries to work or get ready for employment. If the “work requirement” expands to the states’ Medicaid programs it may decrease the number of patients eligible for Medicaid. The patients that are no longer eligible for Medicaid may become self-pay patients, which may adversely impact our tenants’ ability to receive reimbursement. If our tenants’ patient payor mix becomes more self-pay patients, it may impact our tenants’ ability to collect revenues and pay rent.

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The U.S. Department of Labor has issued a final regulation revising the definition of “fiduciary” and the scope of “investment advice” under ERISA, which may have a negative impact on our ability to raise capital.

On April 8, 2016, the U.S. Department of Labor, or DOL, issued a final regulation relating to the definition of a fiduciary under ERISA and Section 4975 of the Code. The final regulation broadens the definition of fiduciary by expanding the range of activities that would be considered to be fiduciary investment advice under ERISA and is accompanied by new and revised prohibited transaction exemptions relating to investments by employee benefit plans subject to Title I of ERISA or retirement plans or accounts subject to Section 4975 of the Code (including individual retirement accounts, or IRAs). Under the new regulation, a person is a fiduciary if the person receives compensation for providing advice (a “recommendation” or “communication that would reasonably be viewed as a suggestion that the recipient engage in or refrain from taking a particular course of action”) with the understanding it is based on the particular needs of the person being advised or that it is directed to a specific plan sponsor, plan participant, or IRA owner. Such decisions can include, but are not limited to, what assets to purchase or sell and whether to rollover from an employment-based plan to an IRA. The fiduciary can be a broker, registered investment adviser or other type of adviser, some of which are subject to federal securities laws and some of which are not. The final regulation and the related exemptions were expected to become applicable for investment transactions on and after April 10, 2017, but generally should not apply to purchases of our shares before the final regulation becomes applicable. However, on February 3, 2017, the President asked for additional review of this regulation. In response, on March 2, 2017, the DOL published a notice seeking public comments on, among other things, a proposal to adopt a 60-day delay of the April 10 applicability date of the final regulation. On April 7, 2017, the DOL published a final rule extending the applicability date of the final regulation to June 9, 2017. However, certain requirements and exemptions under the regulation are implemented through a phased-in approach, and on November 27, 2017, the DOL further delayed the implementation of certain requirements and exemptions until July 1, 2019. On March 15, 2018, the U.S. Court of Appeals for the Fifth Circuit issued a decision vacating the final regulation in its entirety, including the expanded definition of “investment advice fiduciary” and the associated exemptions. On May 7, 2018, the DOL announced a new temporary enforcement policy which provides that the DOL “will not pursue prohibited transactions claims against investment advice fiduciaries who are working diligently and in good faith to comply with the impartial conduct standards for transactions that would have been exempted” under the final regulation, although institutions who prefer to rely upon the new compliance structures under the final regulation are permitted to do so. Therefore, the DOL has not withdrawn the final regulation at this time as a result of the Fifth Circuit’s decision, and it is unclear what the DOL will do in the future with respect to the final regulation – the DOL could, among other things, seek review by the U.S. Supreme Court or further revise or withdraw the final regulation.

On April 18, 2018, the SEC issued proposed rules and interpretations of existing rules designed to enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers while preserving access to a variety of types of advice relationships and investment products. There is no guarantee that the SEC will issue final rules in this regard or that such final rules, if adopted, will not be drastically different from the proposed rules.

The final regulation, the accompanying exemptions and the SEC’s proposed rules are complex and may be subject to further revision or withdrawal. Plan fiduciaries and the beneficial owners of IRAs are urged to consult with their own advisors regarding the impact of the final regulations and the SEC’s proposed rules on purchasing and holding interests in our company. The final regulation and the SEC’s proposed rules could have negative implications on our ability to raise capital from potential investors, including those investing through IRAs.

We, our tenants and our operators for our senior housing and skilled nursing facilities are subject to various government reviews, audits and investigations that could adversely affect our business, including an obligation to refund amounts previously paid to us, potential criminal charges, the imposition of fines, and/or the loss of the right to participate in Medicare and Medicaid programs.

As a result of our tenants’ participation in the Medicaid and Medicare programs, we, our tenants and our operators for our senior housing and skilled nursing facilities are subject to various governmental reviews, audits and investigations to verify compliance with these programs and applicable laws and regulations. We, our tenants and our operators for our senior housing and skilled nursing facilities are also subject to audits under various government programs, including Recovery Audit Contractors, Zone Program Integrity Contractors, Program Safeguard Contractors and Medicaid Integrity Contractors programs, in which third party firms engaged by CMS conduct extensive reviews of claims data and medical and other records to identify potential improper payments under the Medicare and Medicaid programs. Private pay sources also reserve the right to conduct audits. Billing and reimbursement errors and disagreements occur in the healthcare industry. We, our tenants and our operators for our senior housing and skilled nursing facilities may be engaged in reviews, audits and appeals of claims for reimbursement due to the subjectivities inherent in the process related to patient diagnosis and care, record keeping, claims processing and other aspects of the patient service and reimbursement processes, and the errors and disagreements those subjectivities can produce. An adverse review, audit or investigation could result in:

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• an obligation to refund amounts previously paid to us, our 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.

While we, our tenants and our operators for our senior housing and skilled nursing facilities have always been subject to post-payment audits and reviews, more intensive “probe reviews” appear to be a permanent procedure with our fiscal intermediaries. Generally, findings of overpayment from CMS contractors are eligible for appeal through the CMS defined continuum, but there may be rare instances that are not eligible for appeal. We, our tenants and our operators for our senior housing and skilled nursing facilities utilize all defenses at our disposal to demonstrate that the services provided meet all clinical and regulatory requirements for reimbursement.

If the government or a court were to conclude that such errors, deficiencies or disagreements constituted criminal violations, or were to conclude that such errors, deficiencies or disagreements resulted in the submission of false claims to federal healthcare programs, or if the government were to discover other problems in addition to the ones identified by the probe reviews that rose to actionable levels, we and certain of our officers, and our tenants and operators for our senior housing and skilled nursing facilities and certain of their officers, might face potential criminal charges and/or civil claims, administrative sanctions and penalties for amounts that could be material to our business, results of operations and financial condition. In addition, we and/or some of the key personnel of our operating subsidiaries, or those of our tenants and operators for our senior housing and skilled nursing facilities, could be temporarily or permanently excluded from future participation in state and federal healthcare reimbursement programs such as Medicaid and Medicare. In any event, it is likely that a governmental investigation alone, regardless of its outcome, would divert material time, resources and attention from our management team and our staff, or those of our tenants and our operators for our senior housing and skilled nursing facilities and could have a materially detrimental impact on our results of operations during and after any such investigation or proceedings.

In cases where claim and documentation review by any CMS contractor results in repeated poor performance, a facility can be subjected to protracted oversight. This oversight may include repeat education and re-probe, extended pre-payment review, referral to recovery audit or integrity contractors, or extrapolation of an error rate to other reimbursement outside of specifically reviewed claims. Sustained failure to demonstrate improvement towards meeting all claim filing and documentation requirements could ultimately lead to Medicare and Medicaid decertification, which could have a materially detrimental impact on our results of operations. Adverse actions by CMS may also cause third party payor or licensure authorities to audit our tenants. These additional audits could result in termination of third party payor agreements or licensure of the facility, which would also adversely impact our operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sales of Unregistered Securities

None.

Use of Public Offering Proceeds

Our Registration Statement on Form S-11 (File No. 333-205960), registering a public offering of up to $3,150,000,000 in shares of our common stock, was declared effective under the Securities Act on February 16, 2016. Griffin Capital Securities, LLC is the dealer manager of our offering. Commencing on February 16, 2016, we offered to the public up to $3,150,000,000 in shares of our Class T common stock consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of Class T common stock being offered and began offering shares of Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP, aggregating up to $3,150,000,000.

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The shares of our Class T common stock in our primary offering were being offered at a price of $10.00 per share prior to April 11, 2018, and are being offered at a price of $10.05 per share for all shares issued effective April 11, 2018. The shares of our Class I common stock in our primary offering were being offered at a price of $9.30 per share prior to March 1, 2017 and $9.21 per share from March 1, 2017 to April 10, 2018. Effective April 11, 2018, the shares of our Class I common stock in our primary offering are being offered at a price of $9.65 per share, the estimated per share NAV unanimously approved and established by our board of directors on April 6, 2018. The shares of our Class T and Class I common stock issued pursuant to the DRIP were sold at a price of $9.50 per share prior to January 1, 2017 and $9.40 per share from January 1, 2017 to April 10, 2018. Effective April 11, 2018, the shares of our Class T and Class I common stock issued pursuant to the DRIP are sold at a price of $9.65 per share, the most recent estimated per share NAV approved and established by our board of directors.

As of March 31, 2018, we had received and accepted subscriptions in our offering for 43,919,285 shares of Class T common stock and 2,613,474 shares of Class I common stock, or approximately $438,835,000 and $24,136,000, respectively, excluding shares of our common stock issued pursuant to the DRIP. As of March 31, 2018, a total of $12,656,000 in Class T distributions and $435,000 in Class I distributions were reinvested pursuant to the DRIP and 1,345,505 shares of Class T common stock and 46,326 shares of Class I common stock were issued pursuant to the DRIP.

Our equity raise as of March 31, 2018 resulted in the following:

	Amount
Gross offering proceeds — Class T and Class I common stock	$	462,971,000
Gross offering proceeds from Class T and Class I shares issued pursuant to the DRIP	13,091,000
Total gross offering proceeds	476,062,000
Less public offering expenses:
Selling commissions	12,836,000
Dealer manager fees	13,517,000
Advisor funding of dealer manager fees	(9,074,000		)
Other organizational and offering expenses	5,102,000
Advisor funding of other organizational and offering expenses	(5,102,000		)
Net proceeds from our offering	$	458,783,000

The cost of raising funds in our offering as a percentage of gross proceeds received in our primary offering was 3.7% as of March 31, 2018. As of March 31, 2018, we had used $389,443,000 in proceeds from our offering to acquire properties from unaffiliated third parties, $17,393,000 to pay acquisition fees and acquisition related expenses to affiliated parties, $6,476,000 to pay acquisition related expenses to unaffiliated third parties, $2,263,000 to pay deferred financing costs on our mortgage loans payable and our line of credit and term loan, $2,075,000 to pay real estate deposits for proposed future acquisitions and $1,831,000 for capital expenditures on our acquired properties.

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

Our share repurchase plan allows for repurchases of shares of our common stock by us when certain criteria are met. Share repurchases will be made at the sole discretion of our board of directors. All share repurchases are subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or “qualifying disability,” as defined in our share repurchase plan. Funds for the repurchase of shares of our common stock will come exclusively from the cumulative proceeds we receive from the sale of shares of our common stock pursuant to the DRIP.

The price per share at which we will repurchase shares of our common stock will range, depending on the length of time the stockholder held such shares, from 92.5% to 100% of the price paid per share to acquire such shares from us. However, if shares of our common stock are to be repurchased in connection with a stockholder’s death or qualifying disability, the repurchase price will be no less than 100% of the price paid to acquire the shares of our common stock from us.

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During the three months ended March 31, 2018, we repurchased shares of our common stock as follows:

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
January 1, 2018 to January 31, 2018	—	$	—	—	(1	)
February 1, 2018 to February 28, 2018	—	$	—	—	(1	)
March 1, 2018 to March 31, 2018	41,188	$	9.65	41,188	(1	)
Total	41,188	$	9.65	41,188

___________

(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.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the period ended March 31, 2018 (and are numbered in accordance with Item 601 of Regulation S-K).

3.1	Third Articles of Amendment and Restatement of Griffin-American Healthcare REIT IV, Inc., dated December 28, 2015 (included as Exhibit 3.1 to Pre-effective Amendment No. 2 to our Registration Statement on Form S-11 (File No. 333-205960) filed January 5, 2016 and incorporated herein by reference)
3.2	Articles Supplementary of Griffin-American Healthcare REIT IV, Inc. filed May 25, 2016 (included as Exhibit 3.1 to our Current Report on Form 8-K filed May 26, 2016 and incorporated herein by reference)
3.3	Second Amended and Restated Bylaws of Griffin-American Healthcare REIT IV, Inc. (included as Exhibit 3.2 to Pre-effective Amendment No. 2 to our Registration Statement on Form S-11 (File No. 333-205960) filed January 5, 2016 and incorporated herein by reference)
4.1	Form of Subscription Agreement of Griffin-American Healthcare REIT IV, Inc. (included as Exhibit 4.1 to Post-effective Amendment No. 11 to our Registration Statement on Form S-11 (File No. 333-205960) filed April 9, 2018 and incorporated herein by reference)
4.2	Amended and Restated Distribution Reinvestment Plan of Griffin-American Healthcare REIT IV, Inc. (included as Exhibit 4.2 to Post-effective Amendment No. 11 to our Registration Statement on Form S-11 (File No. 333-205960) filed April 9, 2018 and incorporated herein by reference)
4.3	Share Repurchase Plan of Griffin-American Healthcare REIT IV, Inc. (included as Exhibit 4.3 to Post-effective Amendment No. 11 to our Registration Statement on Form S-11 (File No. 333-205960) filed April 9, 2018 and incorporated herein by reference)
4.4	Escrow Agreement by and among Griffin-American Healthcare REIT IV, Inc., Griffin Capital Securities, LLC and UMB Bank, N.A., dated February 16, 2016 (included as Exhibit 4.4 to our Annual Report on Form 10-K for the year ended December 31, 2015 filed March 7, 2016 and incorporated herein by reference)
31.1*	Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document

___________

*

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.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Griffin-American Healthcare REIT IV, Inc. (Registrant)
May 11, 2018	By:	/s/ JEFFREYT. HANSON
Date		Jeffrey T. Hanson
		Chief Executive Officer and Chairman of the Board of Directors
		(Principal Executive Officer)
May 11, 2018	By:	/s/ BRIAN S. PEAY
Date		Brian S. Peay
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

61

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jeffrey T. Hanson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Griffin-American Healthcare REIT IV, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 11, 2018	By:	/s/ JEFFREYT. HANSON
Date		Jeffrey T. Hanson
		Chief Executive Officer and Chairman of the Board of Directors
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Brian S. Peay, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Griffin-American Healthcare REIT IV, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 11, 2018	By:	/s/ BRIAN S. PEAY
Date		Brian S. Peay
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Griffin-American Healthcare REIT IV, Inc., or the Company, hereby certifies, to his knowledge, that:

(1) the accompanying Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 11, 2018	By:	/s/ JEFFREYT. HANSON
Date		Jeffrey T. Hanson
		Chief Executive Officer and Chairman of the Board of Directors
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Griffin-American Healthcare REIT IV, Inc., or the Company, hereby certifies, to his knowledge, that:

(1) the accompanying Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 11, 2018	By:	/s/ BRIAN S. PEAY
Date		Brian S. Peay
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 04, 2018
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Trading Symbol	gahr4
Entity Registrant Name	Griffin-American Healthcare REIT IV, Inc.
Entity Central Index Key	0001632970
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Common Class T [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		47,577,751
Common Class I [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		2,821,458

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)		Mar. 31, 2018		Dec. 31, 2017		Dec. 31, 2016
ASSETS
Real estate investments, net		$ 437,688,000		$ 419,665,000
Cash and cash equivalents		9,158,000		7,087,000		$ 2,237,000
Accounts and other receivables, net		4,985,000		2,838,000
Restricted cash		16,000		16,000
Real estate deposits		2,075,000		500,000
Identified intangible assets, net		43,920,000		44,821,000
Other assets, net		5,800,000		5,226,000
Total assets		503,642,000		480,153,000
Liabilities:
Mortgage loans payable, net		11,483,000	[1]	11,567,000	[1]	3,965,000
Line of credit and term loan	[1]	62,300,000		84,100,000
Accounts payable and accrued liabilities	[1]	21,995,000		19,428,000
Accounts payable due to affiliates	[1]	8,146,000		8,118,000
Identified intangible liabilities, net		1,653,000		1,737,000
Security deposits, prepaid rent and other liabilities	[1]	1,694,000		977,000
Total liabilities		107,271,000		125,927,000
Commitments and contingencies (Note 9)
Redeemable noncontrolling interests (Note 10)		1,002,000		1,002,000		$ 2,000
Stockholders’ equity:
Preferred stock, $0.01 par value per share; 200,000,000 shares authorized; none issued and outstanding		0		0
Additional paid-in capital		427,228,000		376,284,000
Accumulated deficit		(32,337,000)		(23,482,000)
Total stockholders’ equity		395,369,000		353,224,000
Total liabilities, redeemable noncontrolling interests and stockholders’ equity		503,642,000		480,153,000
Common Class T [Member]
Stockholders’ equity:
Common stock, $0.01 par value per share		452,000		400,000
Common Class I [Member]
Stockholders’ equity:
Common stock, $0.01 par value per share		$ 26,000		$ 22,000

[1] Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)		Mar. 31, 2018	Dec. 31, 2017
Line of credit and term loan	[1]	$ 62,300,000	$ 84,100,000
Preferred stock, par value (usd per share)		$ 0.01	$ 0.01
Preferred Stock, Shares Authorized		200,000,000	200,000,000
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Common stock, par value (usd per share)		$ 0.01	$ 0.01
Common stock, shares authorized		1,000,000,000	1,000,000,000
Common Class T [Member]
Common stock, par value (usd per share)		$ 0	$ 0
Common stock, shares authorized		900,000,000	900,000,000
Common stock, shares, issued		45,226,189	39,972,049
Common stock, shares outstanding		45,226,189	39,972,049
Common Class I [Member]
Common stock, par value (usd per share)		$ 0	$ 0
Common stock, shares authorized		100,000,000	100,000,000
Common stock, shares, issued		2,637,800	2,235,111
Common stock, shares outstanding		2,637,800	2,235,111

[1] Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Real estate revenue	$ 9,433,000	$ 4,052,000
Resident fees and services	8,409,000	0
Expenses:
Rental expenses	2,351,000	1,187,000
Property operating expenses	7,233,000	0
General and administrative	2,120,000	748,000
Acquisition related expenses	95,000	73,000
Depreciation and amortization	7,195,000	1,711,000
Total expenses	18,994,000	3,719,000
Interest expense (including amortization of deferred financing costs and debt premium)	(1,084,000)	(418,000)
Net loss	(2,236,000)	(85,000)
Less: net loss attributable to redeemable noncontrolling interests	67,000	0
Net loss attributable to controlling interest	$ (2,169,000)	$ (85,000)
Net loss per Class T and Class I common share attributable to controlling interest — basic and diluted	$ (0.05)	$ (0.01)
Weighted average number of Class T and Class I common shares outstanding — basic and diluted	45,136,647	14,655,107
Distributions declared per Class T and Class I common share	$ 0.15	$ 0.15

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Total	Total Stockholders’ Equity		Class T and Class I Common Stock	Additional Paid-In Capital	Accumulated Deficit
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	$ 0
Beginning balance, Shares at Dec. 31, 2016				11,377,439
Beginning balance Stockholders' Equity, including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016		$ 92,255,000		$ 114,000	$ 99,492,000	$ (7,351,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares				7,609,328		0
Amortization of nonvested common stock compensation		14,000			14,000
Issuance of common stock		75,615,000		$ 76,000	75,539,000
Offering costs - common stock		(7,608,000)			(7,608,000)
Issuance of common stock under the DRIP, shares				113,147
Issuance of common stock under the DRIP	1,063,000	1,063,000		$ 1,000	1,062,000
Dividends, Common Stock, Cash		(2,171,000)				$ (2,171,000)
Net Income (Loss) Attributable to Parent	85,000	(85,000)				(85,000)
Ending balance Stockholders' Equity, including Portion Attributable to Noncontrolling Interest at Mar. 31, 2017		159,083,000		$ 191,000	168,499,000	(9,607,000)
Ending balance, Shares at Mar. 31, 2017				19,099,914
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Fair Value Adjustment to Redeemable Noncontrolling Interests	0
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	(67,000)
Beginning balance, Shares at Dec. 31, 2017				42,207,160
Beginning balance Stockholders' Equity, including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017	353,224,000	353,224,000		$ 422,000	376,284,000	$ (23,482,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares				5,314,261		0
Stock Repurchased During Period, Value		(397,000)		$ 0	(397,000)
Amortization of nonvested common stock compensation		30,000			30,000
Issuance of common stock		52,820,000		$ 53,000	52,767,000
Offering costs - common stock		4,992,000			4,992,000
Issuance of common stock under the DRIP, shares				383,756
Issuance of common stock under the DRIP	3,606,000	3,606,000		$ 3,000	3,603,000
Dividends, Common Stock, Cash		(6,686,000)				$ (6,686,000)
Net Income (Loss) Attributable to Parent	2,169,000	(2,169,000)	[1]			(2,169,000)
Ending balance Stockholders' Equity, including Portion Attributable to Noncontrolling Interest at Mar. 31, 2018	395,369,000	395,369,000		$ 478,000	427,228,000	$ (32,337,000)
Ending balance, Shares at Mar. 31, 2018				47,863,989
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Repurchased During Period, Shares				(41,188)
Adjustments to Additional Paid in Capital, Fair Value Adjustment to Redeemable Noncontrolling Interests	$ 67,000	$ (67,000)			$ (67,000)

[1] Amount excludes $(67,000) of net loss attributable to redeemable noncontrolling interests for the three months ended March 31, 2018. See Note 10, Redeemable Noncontrolling Interests, for a further discussion.

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Stockholders' Equity [Abstract]
Distributions declared per Class T and Class I common share	$ 0.15	$ 0.15
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	$ (67,000)	$ 0

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOW FROM OPERATING ACTIVITIES
Net loss	$ (2,236,000)	$ (85,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,195,000	1,711,000
Other amortization (including deferred financing costs, above/below-market leases, leasehold interests, above-market leasehold interests and debt premium)	207,000	77,000
Deferred rent	(633,000)	(273,000)
Stock based compensation	30,000	14,000
Share discounts	0	3,000
Bad debt expense	347,000	14,000
Changes in operating assets and liabilities:
Accounts and other receivables	(1,807,000)	50,000
Other assets	(98,000)	(422,000)
Accounts payable and accrued liabilities	1,378,000	429,000
Accounts payable due to affiliates	18,000	37,000
Security deposits, prepaid rent and other liabilities	291,000	(165,000)
Net cash provided by operating activities	4,692,000	1,390,000
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of real estate investments	(23,190,000)	(74,714,000)
Capital expenditures	(687,000)	(39,000)
Real estate deposits	(1,575,000)	(800,000)
Pre-acquisition expenses	(42,000)	0
Net cash used in investing activities	(25,494,000)	(75,553,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on mortgage loans payable	(96,000)	(62,000)
Borrowings under the line of credit and term loan	22,600,000	60,000,000
Payments on the line of credit and term loan	(44,400,000)	(58,300,000)
Proceeds from issuance of common stock	52,094,000	76,125,000
Deferred financing costs	(2,000)	(14,000)
Repurchase of common stock	(397,000)	0
Payment of offering costs	(4,125,000)	(3,009,000)
Security deposits	(2,000)	0
Distributions paid	(2,799,000)	(755,000)
Net cash provided by financing activities	22,873,000	73,985,000
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	2,071,000	(178,000)
Cash and cash equivalents at beginning of period	7,087,000	2,237,000
Restricted cash at beginning of period	16,000	0
CASH, CASH EQUIVALENTS, RESTRICTED CASH - Beginning of period	7,103,000	2,237,000
Cash and cash equivalents at end of period	9,158,000	2,059,000
Restricted cash at end of period	16,000	0
CASH, CASH EQUIVALENTS, RESTRICTED CASH - Ending of period	9,174,000	2,059,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest	879,000	356,000
Income taxes	1,000	2,000
Investing Activities:
Accrued capital expenditures	1,285,000	669,000
Accrued pre-acquisition expenses	119,000	0
Tenant improvement overage	429,000	0
The following represents the increase in certain assets and liabilities in connection with our acquisitions of real estate investments:
Other assets	8,000	103,000
Accounts payable and accrued liabilities	112,000	125,000
Security deposits and prepaid rent	0	360,000
Financing Activities:
Issuance of common stock under the DRIP	3,606,000	1,063,000
Distributions declared but not paid	2,398,000	885,000
Accrued Contingent Advisor Payment	7,760,000	7,456,000
Accrued stockholder servicing fee	13,423,000	6,540,000
Receivable from transfer agent	$ 1,158,000	$ 521,000

XML

Organization and Description of Business

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Griffin-American Healthcare REIT IV, Inc., a Maryland corporation, was incorporated on January 23, 2015 and therefore we consider that our date of inception. We were initially capitalized on February 6, 2015. We invest in a diversified portfolio of real estate properties, focusing primarily on medical office buildings, hospitals, skilled nursing facilities, senior housing and other healthcare-related facilities. We also operate healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007, which is commonly referred to as a “RIDEA” structure (the provisions of the Internal Revenue Code of 1986, as amended, or the Code, authorizing the RIDEA structure were enacted as part of the Housing and Economic Recovery Act of 2008). We may also originate and acquire secured loans and real estate-related investments on an infrequent and opportunistic basis. We generally seek investments that produce current income. We qualified to be taxed as a real estate investment trust, or REIT, under the Code for federal income tax purposes beginning with our taxable year ended December 31, 2016, and we intend to continue to qualify to be taxed as a REIT.

On February 16, 2016, we commenced our initial public offering, or our offering, in which we were initially offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to our distribution reinvestment plan, as amended, or the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of Class T common stock being offered and began offering shares of Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP, aggregating up to $3,150,000,000.

The shares of our Class T common stock in our primary offering were being offered at a price of $10.00 per share prior to April 11, 2018. The shares of our Class I common stock in our primary offering were being offered at a price of $9.30 per share prior to March 1, 2017 and $9.21 per share from March 1, 2017 to April 10, 2018. The shares of our Class T and Class I common stock issued pursuant to the DRIP were sold at a price of $9.50 per share prior to January 1, 2017 and $9.40 per share from January 1, 2017 to April 10, 2018. On April 6, 2018, our board of directors, at the recommendation of the audit committee of our board of directors, comprised solely of independent directors, unanimously approved and established an estimated per share net asset value, or NAV, of our common stock of $9.65. As a result, on April 6, 2018, our board of directors unanimously approved revised offering prices for each class of shares of our common stock to be sold in the primary portion of our initial public offering based on the estimated per share NAV of our Class T and Class I common stock of $9.65 plus any applicable per share up-front selling commissions and dealer manager fees funded by us, effective April 11, 2018. Accordingly, the revised offering price for shares of our Class T common stock and Class I common stock sold pursuant to our primary offering on or after April 11, 2018 is $10.05 per share and $9.65 per share, respectively. Effective April 11, 2018, the shares of our Class T and Class I common stock issued pursuant to the DRIP are sold at a price of $9.65 per share, the most recent estimated per share NAV approved and established by our board of directors.

We will sell shares of our Class T and Class I common stock in our offering until February 16, 2019, unless extended by our board of directors as permitted under applicable law, or extended with respect to shares of our common stock offered pursuant to the DRIP. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock. As of March 31, 2018, we had received and accepted subscriptions in our offering for 46,532,759 aggregate shares of our Class T and Class I common stock, or approximately $462,971,000, excluding shares of our common stock issued pursuant to the DRIP.

We conduct substantially all of our operations through Griffin-American Healthcare REIT IV Holdings, LP, or our operating partnership. We are externally advised by Griffin-American Healthcare REIT IV Advisor, LLC, or our advisor, pursuant to an advisory agreement, or the Advisory Agreement, between us and our advisor. The Advisory Agreement was effective as of February 16, 2016 and had a one-year term, subject to successive one-year renewals upon the mutual consent of the parties. The Advisory Agreement was last renewed pursuant to the mutual consent of the parties on February 14, 2018 and expires on February 16, 2019. Our advisor uses its best efforts, subject to the oversight and review of our board of directors, to, among other things, research, identify, review and make investments in and dispositions of properties and securities on our behalf consistent with our investment policies and objectives. Our advisor performs its duties and responsibilities under the Advisory Agreement as our fiduciary. Our advisor is 75.0% owned and managed by American Healthcare Investors, LLC, or American Healthcare Investors, and 25.0% owned by a wholly owned subsidiary of Griffin Capital Company, LLC, or Griffin Capital, or collectively, our co-sponsors. American Healthcare Investors is 47.1% owned by AHI Group Holdings, LLC, or AHI Group Holdings, 45.1% indirectly owned by Colony NorthStar, Inc. (NYSE: CLNS), or Colony NorthStar, and 7.8% owned by James F. Flaherty III, a former partner of Colony NorthStar. We are not affiliated with Griffin Capital, Griffin Capital Securities, LLC, or our dealer manager, Colony NorthStar or Mr. Flaherty; however, we are affiliated with Griffin-American Healthcare REIT IV Advisor, American Healthcare Investors and AHI Group Holdings.

We currently operate through four reportable business segments — medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities. As of March 31, 2018, we had completed 19 property acquisitions whereby we owned 40 properties, comprising 42 buildings, or approximately 2,553,000 square feet of gross leasable area, or GLA, for an aggregate contract purchase price of $488,740,000.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

2. Summary of Significant Accounting Policies

The summary of significant accounting policies presented below is designed to assist in understanding our condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, or GAAP, in all material respects, and have been consistently applied in preparing our accompanying condensed consolidated financial statements.

Basis of Presentation

Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership and the wholly owned subsidiaries of our operating partnership, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and of which we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810.

We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership, and as of March 31, 2018 and December 31, 2017, we owned greater than a 99.99% general partnership interest therein. Our advisor is a limited partner, and as of March 31, 2018 and December 31, 2017, owned less than a 0.01% noncontrolling limited partnership interest in our operating partnership.

Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation.

Interim Unaudited Financial Data

Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable.

In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018.

Use of Estimates

The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions.

Revenue Recognition and Tenant and Resident Receivables

In May 2014, the FASB issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers, which has been codified to ASC Topic 606. ASC Topic 606 provides additional guidance to clarify the principles for recognizing revenue. The standard and subsequent amendments are intended to develop a common revenue standard to remove inconsistencies, improve comparability, provide more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. We have evaluated all of our revenue streams to identify whether each revenue stream would be subject to the provisions of ASC Topic 606 and whether there are any differences in the timing, measurement or presentation of revenue recognition. Based on a review of our various revenue streams, certain components of resident fees and services, such as revenues that are ancillary to the contractual rights of residents within our senior housing facilities operated utilizing a RIDEA structure, are subject to ASC Topic 606. While these revenue streams are subject to the provisions of ASC Topic 606, we believe that the pattern and timing of recognition of income are consistent with the previous accounting model. Virtually all resident fees and services are earned over a period of time and the majority of these revenues are paid by private payor types with the residual being paid by Medicaid. We adopted ASC Topic 606 on January 1, 2018 using the modified retrospective adoption method and the adoption did not have a material impact on our consolidated financial statements. Included within resident fees and services for the quarter ended March 31, 2018 was $186,000 of ancillary service revenue.

Segment Disclosure

ASC Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016; senior housing facility in December 2016; senior housing — RIDEA facility in November 2017; and skilled nursing facility in March 2018, we added a new reportable segment at each such time. As of March 31, 2018, we have determined that we operate through four reportable business segments, with activities related to investing in medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities.

See Note 15, Segment Reporting, for a further discussion.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, or ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606. Although not yet finalized, the FASB has proposed an option for lessors to elect a practical expedient allowing them to not separate lease and non-lease components in a contract for the purpose of revenue recognition and disclosure. This practical expedient is limited to circumstances in which: (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component; and (ii) the combined single lease component would be classified as an operating lease. If finalized, we plan to elect this practical expedient. In addition, ASU 2016-02 provides a practical expedient that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We plan to elect this practical expedient.

We are still evaluating the complete impact of the adoption of ASU 2016-02 and its related expedients on January 1, 2019 to our consolidated financial statements and disclosures. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with a few optional practical expedients. As a result of the adoption of ASU 2016-02 on January 1, 2019, we: (i) will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets; and (ii) may be required to increase our revenue and expense for the amount of real estate taxes and insurance paid by our tenant under triple-net leases.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, or ASU 2018-02, which amends the reclassification requirements from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017, or the Tax Act. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2018-02 on January 1, 2019 to have a material impact on our consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Amendments to the SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, or ASU 2018-05, which updates the income tax accounting in GAAP to reflect the SEC’s interpretive guidance with regards to the Tax Act. See Note 14, Income Taxes, for a further discussion.

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Real Estate Investments, Net

3 Months Ended

Mar. 31, 2018

Real Estate [Abstract]

Real Estate Investments, Net

3. Real Estate Investments, Net

Our real estate investments, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Building and improvements	$	390,654,000		$	371,890,000
Land	54,723,000			52,202,000
Furniture, fixtures and equipment	4,498,000			4,458,000
	449,875,000			428,550,000
Less: accumulated depreciation	(12,187,000		)	(8,885,000		)
	$	437,688,000		$	419,665,000

Depreciation expense for the three months ended March 31, 2018 and 2017 was $3,416,000 and $1,140,000, respectively. In addition to the property acquisition discussed below, for the three months ended March 31, 2018, we incurred capital expenditures of $958,000 on our medical office buildings, $88,000 on our senior housing — RIDEA facilities and $0 on our senior housing facilities and skilled nursing facilities.

We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets. The reimbursement of acquisition expenses, acquisition fees, total development costs and real estate commissions and other fees paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price of our property acquisitions, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors. For the three months ended March 31, 2018 and 2017, such fees and expenses paid did not exceed 6.0% of the contract purchase price of our property acquisitions, except with respect to our acquisitions of Athens MOB and Northern California Senior Housing Portfolio. Our directors, including a majority of our independent directors, not otherwise interested in the transactions, approved the reimbursement of fees and expenses to our advisor or its affiliates for the acquisitions of Athens MOB and Northern California Senior Housing Portfolio in excess of the 6.0% limit and determined that such fees and expenses were commercially fair and reasonable to us.

Acquisition in 2018

For the three months ended March 31, 2018, using net proceeds from our offering and debt financing, we completed one property acquisition comprising two facilities from unaffiliated third parties. The following is a summary of our property acquisition for the three months ended March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Central Wisconsin Senior Care Portfolio	Sun Prairie and Waunakee, WI	Skilled Nursing	03/01/18	$	22,600,000	$	22,600,000	$	1,018,000

___________

(1) We own 100% of our property acquired in 2018.

(2) Represents a borrowing under the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan, at the time of acquisition.

(3) Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, a base acquisition fee of 2.25% of the 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 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.

We accounted for the property acquisition we completed for the three months ended March 31, 2018 as an asset acquisition in accordance with FASB ASU 2017-01, Clarifying the Definition of a Business, or ASU 2017-01. We incurred a base acquisition fee and direct acquisition related expenses of $695,000, which were capitalized in accordance with ASU 2017-01. In addition, we incurred a Contingent Advisor Payment of $509,000 to our advisor for this property acquisition. The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our property acquisition in 2018 based on their relative fair values:

	2018 Acquisition
Building and improvements	$	17,845,000
Land	2,517,000
In-place leases	2,933,000
Total assets acquired	23,295,000
Total liabilities assumed	—
Net assets acquired	$	23,295,000

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Identified Intangible Assets, Net

3 Months Ended

Mar. 31, 2018

Finite-Lived Intangible Assets, Net [Abstract]

Identified Intangible Assets, Net

4. Identified Intangible Assets, Net

Identified intangible assets, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
In-place leases, net of accumulated amortization of $9,530,000 and $5,832,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 8.1 years and 7.3 years as of March 31, 2018 and December 31, 2017, respectively)	$	36,926,000	$	37,766,000
Leasehold interests, net of accumulated amortization of $143,000 and $119,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 70.3 years and 70.6 years as of March 31, 2018 and December 31, 2017, respectively)	6,269,000		6,292,000
Above-market leases, net of accumulated amortization of $211,000 and $173,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 5.4 years and 5.6 years as of March 31, 2018 and December 31, 2017, respectively)	725,000		763,000
	$	43,920,000	$	44,821,000

Amortization expense on identified intangible assets for the three months ended March 31, 2018 and 2017 was $3,833,000 and $628,000, respectively, which included $38,000 and $33,000, respectively, of amortization recorded against real estate revenue for above-market leases and $24,000 of amortization recorded to rental expenses for leasehold interests in our accompanying condensed consolidated statements of operations.

The aggregate weighted average remaining life of the identified intangible assets was 16.9 years and 16.2 years as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, estimated amortization expense on the identified intangible assets for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:

Year	Amount
2018	$	9,663,000
2019	4,644,000
2020	4,053,000
2021	3,657,000
2022	3,140,000
Thereafter	18,763,000
	$	43,920,000

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Other Assets, Net

3 Months Ended

Mar. 31, 2018

Other Assets, Net [Abstract]

Other Assets, Net

5. Other Assets, Net

Other assets, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Deferred rent receivables	$	2,546,000	$	1,912,000
Prepaid expenses and deposits	1,696,000		1,532,000
Deferred financing costs, net of accumulated amortization of $772,000 and $554,000 as of March 31, 2018 and December 31, 2017, respectively(1)	1,238,000		1,456,000
Lease commissions, net of accumulated amortization of $17,000 and $9,000 as of March 31, 2018 and December 31, 2017, respectively	320,000		326,000
	$	5,800,000	$	5,226,000

___________

(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, net only include costs related to the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan.

Amortization expense on deferred financing costs of the Corporate Line of Credit for the three months ended March 31, 2018 and 2017 was $218,000 and $87,000, respectively. Amortization expense on deferred financing costs of the Corporate Line of Credit is recorded to interest expense in our accompanying condensed consolidated statements of operations. Amortization expense on lease commissions for the three months ended March 31, 2018 and 2017 was $8,000 and $0, respectively.

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Mortgage Loans Payable, Net

3 Months Ended

Mar. 31, 2018

Mortgage Loans Payable, Net [Abstract]

Mortgage Loans Payable, Net

6. Mortgage Loans Payable, Net

As of March 31, 2018 and December 31, 2017, mortgage loans payable were $11,538,000 ($11,483,000, including premium and deferred financing costs, net) and $11,634,000 ($11,567,000, including premium and deferred financing costs, net), respectively. As of March 31, 2018 and December 31, 2017, we had two fixed-rate mortgage loans with interest rates ranging from 4.77% to 5.25% per annum, maturity dates ranging from April 1, 2020 to August 1, 2029 and a weighted average effective interest rate of 4.92%.

The changes in the carrying amount of mortgage loans payable, net consisted of the following for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Beginning balance	$	11,567,000		$	3,965,000
Additions:
Amortization of deferred financing costs(1)	15,000			2,000
Deductions:
Scheduled principal payments on mortgage loans payable	(96,000		)	(62,000		)
Amortization of premium on mortgage loan payable	(3,000		)	(4,000		)
Ending balance	$	11,483,000		$	3,901,000

___________

(1) In accordance with ASU 2015-03 and ASU 2015-15, deferred financing costs only includes costs related to our mortgage loans payable.

As of March 31, 2018, the principal payments due on our mortgage loans payable for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter were as follows:

Year	Amount
2018	$	290,000
2019	407,000
2020	8,036,000
2021	314,000
2022	330,000
Thereafter	2,161,000
	$	11,538,000

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Line of Credit and Term Loan

3 Months Ended

Mar. 31, 2018

Line of Credit Facility [Abstract]

Line of Credit and Term Loan

7. Line of Credit and Term Loan

On August 25, 2016, we, through our operating partnership, as borrower, and certain of our subsidiaries, or the subsidiary guarantors, and us, collectively as guarantors, entered into a credit agreement, or the Credit Agreement, with Bank of America, N.A., or Bank of America, as administrative agent, swing line lender and letters of credit issuer; and KeyBank, National Association, or KeyBank, as syndication agent and letters of credit issuer, to obtain a revolving line of credit with an aggregate maximum principal amount of $100,000,000, or the Line of Credit, subject to certain terms and conditions.

On August 25, 2016, we also entered into separate revolving notes, or the Revolving Notes, with each of Bank of America and KeyBank, whereby we promised to pay the principal amount of each revolving loan and accrued interest to the respective lender or its registered assigns, in accordance with the terms and conditions of the Credit Agreement. The proceeds of loans made under the Line of Credit may be used for general working capital (including acquisitions), capital expenditures and other general corporate purposes not inconsistent with obligations under the Credit Agreement. We may obtain up to $20,000,000 in the form of standby letters of credit and up to $25,000,000 in the form of swing line loans. The Line of Credit matures on August 25, 2019, and may be extended for one12-month period during the term of the Credit Agreement subject to satisfaction of certain conditions, including payment of an extension fee.

On October 31, 2017, we entered into an amendment to the Credit Agreement, or the Amendment, with Bank of America, as administrative agent, and the subsidiary guarantors and lenders named therein. The material terms of the Amendment provide for: (i) a $50,000,000 increase in the Line of Credit from an aggregate principal amount of $100,000,000 to $150,000,000; (ii) a term loan with an aggregate maximum principal amount of $50,000,000, or the Term Loan Credit Facility, that matures on August 25, 2019, and may be extended for one12-month period during the term of the Credit Agreement subject to satisfaction of certain conditions, including payment of an extension fee; (iii) our right, upon at least five business days’ prior written notice to Bank of America, to increase the Line of Credit or Term Loan Credit Facility provided that the aggregate principal amount of all such increases and additions shall not exceed $300,000,000; (iv) a revision to the definition of Threshold Amount, as defined in the Credit Agreement, to reflect an increase in such amount for any Recourse Indebtedness, as defined in the Credit Agreement, to $20,000,000, and an increase in such amount for any Non-Recourse Indebtedness, as defined in the Credit Agreement, to $50,000,000; (v) the revision of certain Unencumbered Property Pool Criteria, as defined and set forth in the Credit Agreement; and (vi) an increase in the maximum Consolidated Secured Leverage Ratio, as defined in the Credit Agreement, to be equal to or less than 40.0%. As a result of the Amendment, our aggregate borrowing capacity under the Line of Credit and the Term Loan Credit Facility, or collectively, the Corporate Line of Credit, is $200,000,000.

At our option, the Corporate Line of Credit bears interest at per annum rates equal to (a) (i) the Eurodollar Rate (as defined in the Credit Agreement, as amended) plus (ii) a margin ranging from 1.75% to 2.25% based on our Consolidated Leverage Ratio (as defined in the Credit Agreement, as amended), or (b) (i) the greater of: (1) the prime rate publicly announced by Bank of America, (2) the Federal Funds Rate (as defined in the Credit Agreement, as amended) plus 0.50%, (3) the one-month Eurodollar Rate plus 1.00%, and (4) 0.00%, plus (ii) a margin ranging from 0.55% to 1.05% based on our Consolidated Leverage Ratio. Accrued interest on the Corporate Line of Credit is payable monthly. The loans may be repaid in whole or in part without prepayment premium or penalty, subject to certain conditions.

We are required to pay a fee on the unused portion of the lenders’ commitments under the Credit Agreement, as amended, at a per annum rate equal to 0.20% if the average daily used amount is greater than 50.0% of the commitments and 0.25% if the average daily used amount is less than or equal to 50.0% of the commitments, which fee shall be measured and payable on a quarterly basis.

The Credit Agreement, as amended, contains various affirmative and negative covenants that are customary for credit facilities and transactions of this type, including limitations on the incurrence of debt by our operating partnership and its subsidiaries. The Credit Agreement, as amended, also imposes certain financial covenants based on the following criteria, which are specifically defined in the Credit Agreement, as amended: (a) Consolidated Leverage Ratio; (b) Consolidated Secured Leverage Ratio; (c) Consolidated Tangible Net Worth; (d) Consolidated Fixed Charge Coverage Ratio; (e) Unencumbered Indebtedness Yield; (f) Consolidated Unencumbered Leverage Ratio; (g) Consolidated Unencumbered Interest Coverage Ratio; (h) Secured Recourse Indebtedness; and (i) Consolidated Unsecured Indebtedness.

The Credit Agreement, as amended, permits us to add additional subsidiaries as guarantors. In the event of default, Bank of America has the right to terminate its obligations under the Credit Agreement, as amended, including the funding of future loans, and to accelerate the payment on any unpaid principal amount of all outstanding loans and interest thereon. Additionally, in connection with the Credit Agreement, as amended, we also entered into a Pledge Agreement on August 25, 2016, pursuant to which we pledged the capital stock of our subsidiaries which own the real property to be included in the Unencumbered Property Pool, as such term is defined in the Credit Agreement, as amended. The pledged collateral will be released upon achieving a consolidated total asset value of at least $750,000,000.

As of March 31, 2018 and December 31, 2017, our aggregate borrowing capacity under the Corporate Line of Credit was $200,000,000. As of March 31, 2018 and December 31, 2017, borrowings outstanding totaled $62,300,000 and $84,100,000, respectively, and the weighted average interest rate on such borrowings outstanding was 3.55% and 3.45% per annum, respectively.

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Identified Intangible Liabilities, Net

3 Months Ended

Mar. 31, 2018

Identified Intangible Liabilities [Abstract]

Identified Intangible Liabilities Net

8. Identified Intangible Liabilities, Net

Identified intangible liabilities, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Below-market leases, net of accumulated amortization of $428,000 and $345,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 6.3 years and 6.4 years as of March 31, 2018 and December 31, 2017, respectively)	$	1,266,000	$	1,349,000
Above-market leasehold interests, net of accumulated amortization of $8,000 and $6,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 51.9 years and 52.2 years as of March 31, 2018 and December 31, 2017, respectively)	387,000		388,000
	$	1,653,000	$	1,737,000

Amortization expense on identified intangible liabilities for the three months ended March 31, 2018 and 2017 was $85,000 and $68,000, respectively, which included $83,000 and $67,000, respectively, of amortization recorded to real estate revenue for below-market leases and $2,000 and $1,000, respectively, of amortization recorded against rental expenses for above-market leasehold interests in our accompanying condensed consolidated statements of operations.

The aggregate weighted average remaining life of the identified intangible liabilities was 17.0 years and 16.7 years as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018, estimated amortization expense on identified intangible liabilities for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:

Year	Amount
2018	$	254,000
2019	310,000
2020	147,000
2021	125,000
2022	125,000
Thereafter	692,000
	$	1,653,000

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Litigation

We are not presently subject to any material litigation nor, to our knowledge, is any material litigation threatened against us, which if determined unfavorably to us, would have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Environmental Matters

We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our consolidated financial position, results of operations or cash flows. Further, we are not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency.

Other

Our other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business, which include calls/puts to sell/acquire properties. In our view, these matters are not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2018

Redeemable Noncontrolling Interests [Line Items]

Redeemable Noncontrolling Interests

10. Redeemable Noncontrolling Interests

On February 6, 2015, our advisor made an initial capital contribution of $2,000 to our operating partnership in exchange for Class T partnership units. Upon the effectiveness of the Advisory Agreement on February 16, 2016, Griffin-American Healthcare REIT IV Advisor became our advisor. As of March 31, 2018 and December 31, 2017, our advisor owned all of our 208 Class T partnership units outstanding. As of March 31, 2018 and December 31, 2017, we owned greater than a 99.99% general partnership interest in our operating partnership, and our advisor owned less than a 0.01% limited partnership interest in our operating partnership. As our advisor, Griffin-American Healthcare REIT IV Advisor is entitled to redemption rights of its limited partnership units. The noncontrolling interest of our advisor in our operating partnership, which has redemption features outside of our control, is accounted for as a redeemable noncontrolling interest and is presented outside of permanent equity in our accompanying condensed consolidated balance sheets. See Note 12, Related Party Transactions — Liquidity Stage — Subordinated Participation Interest — Subordinated Distribution Upon Listing, and Note 12, Related Party Transactions — Subordinated Distribution Upon Termination, for a further discussion of the redemption features of the limited partnership units.

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, or Meridian, an unaffiliated third party. Our ownership of the joint venture is approximately 98%. The noncontrolling interest held by Meridian has redemption features outside of our control and is accounted for as redeemable noncontrolling interest in our accompanying condensed consolidated balance sheets. In addition, Meridian will be entitled to an incentive fee, subject to the satisfaction of certain terms and conditions set forth in the joint venture agreement.

We record the carrying amount of redeemable noncontrolling interests at the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions; or (ii) the redemption value. The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Beginning balance	$	1,002,000		$	2,000
Net loss attributable to redeemable noncontrolling interests	(67,000		)	—
Fair value adjustment to redemption value	67,000			—
Ending balance	$	1,002,000		$	2,000

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Equity

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Equity

11. Equity

Preferred Stock

Our charter authorizes us to issue 200,000,000 shares of our preferred stock, par value $0.01 per share. As of March 31, 2018 and December 31, 2017, no shares of our preferred stock were issued and outstanding.

Common Stock

Our charter authorizes us to issue 1,000,000,000 shares of our common stock, par value $0.01 per share. We commenced our public offering of shares of our common stock on February 16, 2016, and as of such date we were initially offering to the public up to $3,150,000,000 in shares of our Class T common stock, consisting of up to $3,000,000,000 in shares of our Class T common stock at a price of $10.00 per share in our primary offering and up to $150,000,000 in shares of our Class T common stock for $9.50 per share pursuant to the DRIP. Effective June 17, 2016, we reallocated certain of the unsold shares of our Class T common stock being offered and began offering shares of our Class I common stock, such that we are currently offering up to approximately $2,800,000,000 in shares of Class T common stock and $200,000,000 in shares of Class I common stock in our primary offering, and up to an aggregate of $150,000,000 in shares of our Class T and Class I common stock pursuant to the DRIP. Subsequent to the reallocation, of the 1,000,000,000 shares of common stock authorized, 900,000,000 shares are classified as Class T common stock and 100,000,000 shares are classified as Class I common stock. We reserve the right to reallocate the shares of common stock we are offering between the primary offering and the DRIP, and among classes of stock.

Each share of our common stock, regardless of class, will be entitled to one vote per share on matters presented to the common stockholders for approval; provided, however, that stockholders of one share class shall have exclusive voting rights on any amendment to our charter that would alter only the contract rights of that share class, and no stockholders of another share class shall be entitled to vote thereon.

On February 6, 2015, our advisor acquired shares of our Class T common stock for total cash consideration of $200,000 and was admitted as our initial stockholder. We used the proceeds from the sale of shares of our Class T common stock to our advisor to make an initial capital contribution to our operating partnership. As of March 31, 2018 and December 31, 2017, our advisor owned 20,833 shares of our Class T common stock.

Through March 31, 2018, we had issued 46,532,759 aggregate shares of our Class T and Class I common stock in connection with the primary portion of our offering and 1,391,831 aggregate shares of our Class T and Class I common stock pursuant to the DRIP. We also granted an aggregate of 37,500 shares of our restricted Class T common stock to our independent directors and repurchased 118,934 shares of our common stock under our share repurchase plan through March 31, 2018. As of March 31, 2018 and December 31, 2017, we had 47,863,989 and 42,207,160 aggregate shares of our Class T and Class I common stock, respectively, issued and outstanding.

As of March 31, 2018, we had a receivable of $1,158,000 for offering proceeds, net of selling commissions and dealer manager fees, from our transfer agent, which was received in April 2018.

Distribution Reinvestment Plan

We have registered and reserved $150,000,000 in shares of our common stock for sale pursuant to the DRIP in our offering. The DRIP allows stockholders to purchase additional Class T shares and Class I shares of our common stock through the reinvestment of distributions during our offering. Pursuant to the DRIP, distributions with respect to Class T shares are reinvested in Class T shares and distributions with respect to Class I shares are reinvested in Class I shares.

For the three months ended March 31, 2018 and 2017, $3,606,000 and $1,063,000, respectively, in distributions were reinvested and 383,756 and 113,147 shares of our common stock, respectively, were issued pursuant to the DRIP. As of March 31, 2018 and December 31, 2017, a total of $13,091,000 and $9,485,000, respectively, in distributions were reinvested that resulted in 1,391,831 and 1,008,075 shares of our common stock, respectively, being issued pursuant to the DRIP.

Share Repurchase Plan

In February 2016, our board of directors approved a share repurchase plan. The share repurchase plan allows for repurchases of shares of our common stock by us when certain criteria are met. Share repurchases will be made at the sole discretion of our board of directors. Subject to the availability of the funds for share repurchases, 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, that shares subject to a repurchase requested upon the death of a stockholder will not be subject to this cap. Funds for the repurchase of shares of our common stock will come exclusively from the cumulative proceeds we receive from the sale of shares of our common stock pursuant to the DRIP.

All repurchases of our shares of common stock are subject to a one-year holding period, except for repurchases made in connection with a stockholder’s death or “qualifying disability,” as defined in our share repurchase plan. Further, all share repurchases are repurchased following a one-year holding period at a price between 92.5% to 100% of each stockholder’s repurchase amount depending on the period of time their shares have been held. During our offering, the repurchase amount for shares repurchased under our share repurchase plan shall be equal to the lesser of (i) the amount per share that a stockholder paid for their shares of our common stock, or (ii) the per share offering price in our offering. If we are no longer engaged in an offering, the repurchase amount for shares repurchased under our share repurchase plan will be determined by our board of directors. However, if shares of our common stock are repurchased in connection with a stockholder’s death or qualifying disability, the repurchase price will be no less than 100% of the price paid to acquire the shares of our common stock from us. Furthermore, our share repurchase plan provides that if there are insufficient funds to honor all repurchase requests, pending requests will be honored among all requests for repurchase in any given repurchase period, as follows: first, pro rata as to repurchases sought upon a stockholder’s death; next, pro rata as to repurchases sought by stockholders with a qualifying disability; and, finally, pro rata as to other repurchase requests.

For the three months ended March 31, 2018, we received share repurchase requests and repurchased 41,188 shares of our common stock for an aggregate of $397,000, at an average repurchase price of $9.65 per share. No share repurchases were requested or made for the three months ended March 31, 2017.

As of March 31, 2018 and December 31, 2017, we received share repurchase requests and repurchased 118,934 and 77,746 shares of our common stock, respectively, for an aggregate of $1,132,000 and $735,000, respectively, at an average repurchase price of $9.52 and $9.45 per share, respectively. All shares were repurchased using proceeds we received from the sale of shares of our common stock pursuant to the DRIP.

2015 Incentive Plan

In February 2016, we adopted our incentive plan, pursuant to which our board of directors or a committee of our independent directors may make grants of options, shares of our restricted common stock, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our incentive plan is 4,000,000 shares. As of March 31, 2018, we have granted 37,500 shares of our restricted Class T common stock at a weighted average grant date fair value of $10.00 per share, to our independent directors in connection with their election or re-election to our board of directors, or in consideration for their past services rendered. Such shares vested 20.0% immediately on the grant date and 20.0% will vest on each of the first four anniversaries of the grant date. For the three months ended March 31, 2018 and 2017, we recognized stock compensation expense of $30,000 and $14,000, respectively, which is included in general and administrative in our accompanying condensed consolidated statements of operations.

Offering Costs

Selling Commissions

Generally, we pay our dealer manager selling commissions of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering. To the extent that selling commissions are less than 3.0% of the gross offering proceeds for any Class T shares sold, such reduction in selling commissions will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No selling commissions are payable on Class I shares or shares of our common stock sold pursuant to the DRIP. Our dealer manager may re-allow all or a portion of these fees to participating broker-dealers. For the three months ended March 31, 2018 and 2017, we incurred $1,462,000 and $2,070,000, respectively, in selling commissions to our dealer manager. Such commissions were charged to stockholders’ equity as such amounts were paid to our dealer manager from the gross proceeds of our offering.

Dealer Manager Fee

With respect to shares of our Class T common stock, our dealer manager generally receives a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds is funded by us and up to an amount equal to 2.0% of the gross offering proceeds is funded by our advisor. With respect to shares of our Class I common stock, prior to March 1, 2017, our dealer manager generally received a dealer manager fee up to 3.0% of the gross offering proceeds from the sale of Class I shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds was funded by us and an amount equal to 2.0% of the gross offering proceeds was funded by our advisor. Effective March 1, 2017, our dealer manager generally receives a dealer manager fee up to an amount equal to 1.5% of the gross offering proceeds from the sale of Class I shares pursuant to our primary offering, all of which is funded by our advisor. Our dealer manager may enter into participating dealer agreements with participating dealers that provide for a reduction or waiver of dealer manager fees. To the extent that the dealer manager fee is less than 3.0% of the gross offering proceeds for any Class T shares sold and less than 1.5% of the gross offering proceeds for any Class I shares sold, such reduction will be applied first to the portion of the dealer manager fee funded by our advisor. To the extent that any reduction in dealer manager fee exceeds the portion of the dealer manager fee funded by our advisor, such excess reduction will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. Our dealer manager may re-allow all or a portion of these fees to participating broker-dealers.

For the three months ended March 31, 2018 and 2017, we incurred $493,000 and $733,000, respectively, in dealer manager fees to our dealer manager. Such fees were charged to stockholders’ equity as such amounts were paid to our dealer manager or its affiliates from the gross proceeds of our offering. See Note 12, Related Party Transactions — Offering Stage — Dealer Manager Fee, for a further discussion of the dealer manager fee funded by our advisor.

Stockholder Servicing Fee

We pay our dealer manager a quarterly stockholder servicing fee with respect to our Class T shares sold as additional compensation to the dealer manager and participating broker-dealers. No stockholder servicing fee shall be paid with respect to Class I shares or shares of our common stock sold pursuant to the DRIP. The stockholder servicing fee accrues daily in an amount equal to 1/365th of 1.0% of the purchase price per share of our Class T shares sold in our primary offering and, in the aggregate will not exceed an amount equal to 4.0% of the gross proceeds from the sale of Class T shares in our primary offering. We will cease paying the stockholder servicing fee with respect to our Class T shares sold in our offering upon the occurrence of certain defined events. Our dealer manager may re-allow to participating broker-dealers all or a portion of the stockholder servicing fee for services that such participating broker-dealers perform in connection with the shares of our Class T common stock. By agreement with participating broker-dealers, such stockholder servicing fee may be reduced or limited.

For the three months ended March 31, 2018 and 2017, we incurred $1,700,000 and $2,754,000, respectively, in stockholder servicing fees to our dealer manager. As of March 31, 2018 and December 31, 2017, we accrued $13,423,000 and $12,611,000, respectively, in connection with the stockholder servicing fee payable, which is included in accounts payable and accrued liabilities with a corresponding offset to stockholders’ equity in our accompanying condensed consolidated balance sheets.

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Related Party Transactions

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

12. Related Party Transactions

Fees and Expenses Paid to Affiliates

All of our executive officers and one of our non-independent directors are also executive officers and employees and/or holders of a direct or indirect interest in our advisor, one of our co-sponsors or other affiliated entities. We are affiliated with our advisor, American Healthcare Investors and AHI Group Holdings; however, we are not affiliated with Griffin Capital, our dealer manager, Colony NorthStar or Mr. Flaherty. We entered into the Advisory Agreement, which entitles our advisor and its affiliates to specified compensation for certain services, as well as reimbursement of certain expenses. Our board of directors, including a majority of our independent directors, has reviewed the material transactions between our affiliates and us during the three months ended March 31, 2018 and 2017. Set forth below is a description of the transactions with affiliates. We believe that we have executed all of the transactions set forth below on terms that are fair and reasonable to us and on terms no less favorable to us than those available from unaffiliated third parties. For the three months ended March 31, 2018 and 2017, we incurred $2,975,000 and $4,089,000, respectively, in fees and expenses to our affiliates as detailed below.

Offering Stage

Dealer Manager Fee

With respect to shares of our Class T common stock, our dealer manager generally receives a dealer manager fee of up to 3.0% of the gross offering proceeds from the sale of Class T shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds is funded by us and up to an amount equal to 2.0% of the gross offering proceeds is funded by our advisor. With respect to shares of our Class I common stock, prior to March 1, 2017, our dealer manager generally received a dealer manager fee up to 3.0% of the gross offering proceeds from the sale of Class I shares of our common stock pursuant to our primary offering, of which 1.0% of the gross offering proceeds was funded by us and an amount equal to 2.0% of the gross offering proceeds was funded by our advisor. Effective March 1, 2017, our dealer manager generally receives a dealer manager fee up to an amount equal to 1.5% of the gross offering proceeds from the sale of Class I shares pursuant to our primary offering, all of which is funded by our advisor. Our dealer manager may enter into participating dealer agreements with participating dealers that provide for a reduction or waiver of dealer manager fees. To the extent that the dealer manager fee is less than 3.0% of the gross offering proceeds for any Class T shares sold and less than 1.5% of the gross offering proceeds for any Class I shares sold, such reduction will be applied first to the portion of the dealer manager fee funded by our advisor. To the extent that any reduction in dealer manager fee exceeds the portion of the dealer manager fee funded by our advisor, such excess reduction will be accompanied by a corresponding reduction in the applicable per share purchase price for purchases of such shares. No dealer manager fee is payable on shares of our common stock sold pursuant to the DRIP. Our advisor intends to recoup the portion of the dealer manager fee it funds through the receipt of the Contingent Advisor Payment from us, as described below, through the payment of acquisition fees.

For the three months ended March 31, 2018 and 2017, we incurred $1,011,000 and $1,496,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the dealer manager fee that our advisor had incurred. Such fee was charged to stockholders’ equity as incurred with a corresponding offset to accounts payable due to affiliates in our accompanying condensed consolidated balance sheets. See Note 11, Equity — Offering Costs — Dealer Manager Fee, for a further discussion of the dealer manager fee funded by us.

Other Organizational and Offering Expenses

Our other organizational and offering expenses in connection with our offering (other than selling commissions, the dealer manager fee and the stockholder servicing fee) are funded by our advisor. Our advisor intends to recoup such expenses it funds through the receipt of the Contingent Advisor Payment from us, as described below, through the payment of acquisition fees. We anticipate that our other organizational and offering expenses will not exceed 1.0% of the gross offering proceeds for shares of our common stock sold pursuant to our primary offering. No other organizational and offering expenses will be paid with respect to shares of our common stock sold pursuant to the DRIP.

For the three months ended March 31, 2018 and 2017, we incurred $327,000 and $556,000, respectively, payable to our advisor as part of the Contingent Advisor Payment in connection with the other organizational and offering expenses that our advisor had incurred. Such expenses were charged to stockholders’ equity as incurred with a corresponding offset to accounts payable due to affiliates in our accompanying condensed consolidated balance sheets.

Acquisition and Development Stage

Acquisition Fee

We pay our advisor an acquisition fee of up to 4.50% of the contract purchase price, including any contingent or earn-out payments that may be paid, of each property we acquire or, with respect to any real estate-related investment we originate or acquire, up to 4.25% of the origination or acquisition price, including any contingent or earn-out payments that may be paid. The 4.50% or 4.25% acquisition fees consist of a 2.25% or 2.00% base acquisition fee, or the base acquisition fee, for real estate and real estate-related acquisitions, respectively, and an additional 2.25% contingent advisor payment, or the Contingent Advisor Payment. The Contingent Advisor Payment allows our advisor to recoup the portion of the dealer manager fee and other organizational and offering expenses funded by our advisor. Therefore, the amount of the Contingent Advisor Payment paid upon the closing of an acquisition shall not exceed the then outstanding amounts paid by our advisor for dealer manager fees and other organizational and offering expenses at the time of such closing. For these purposes, the amounts paid by our advisor and considered as “outstanding” are reduced by the amount of the Contingent Advisor Payment previously paid. Notwithstanding the foregoing, the initial $7,500,000 of amounts paid by our advisor to fund the dealer manager fee and other organizational and offering expenses, or the Contingent Advisor Payment Holdback, shall be retained by us until the later of the termination of our last public offering or the third anniversary of the commencement date of our initial public offering, at which time such amount shall be paid to our advisor or its affiliates. In connection with any subsequent public offering of shares of our common stock, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such subsequent public offering and the amount sold in prior offerings. Our advisor or its affiliates will be entitled to receive these acquisition fees for properties and real estate-related investments acquired with funds raised in our offering, including acquisitions completed after the termination of the Advisory Agreement (including imputed leverage of 50.0% on funds raised in our offering), or funded with net proceeds from the sale of a property or real estate-related investment, subject to certain conditions. Our advisor may waive or defer all or a portion of the acquisition fee at any time and from time to time, in our advisor’s sole discretion.

The base acquisition fee in connection with the acquisition of properties accounted for as business combinations in accordance with ASC Topic 805, Business Combinations, or ASC Topic 805, is expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations. The base acquisition fee in connection with the acquisition of properties accounted for as asset acquisitions in accordance with ASU 2017-01 or the acquisition of real estate-related investments is capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. For the three months ended March 31, 2018 and 2017, we paid base acquisition fees of $509,000 and $1,655,000, respectively, to our advisor. As of March 31, 2018 and December 31, 2017, we recorded $7,760,000 and $7,744,000, respectively, as part of the Contingent Advisor Payment, which is included in accounts payable due to affiliates with a corresponding offset to stockholders’ equity in our accompanying condensed consolidated balance sheets. As of March 31, 2018, we have paid $6,416,000 in Contingent Advisor Payments to our advisor. For a further discussion of amounts paid in connection with the Contingent Advisor Payment, see “Dealer Manager Fee” and “Other Organizational and Offering Expenses,” above. In addition, see Note 3, Real Estate Investments, Net, for a further discussion.

Development Fee

In the event our advisor or its affiliates provide development-related services, we pay our advisor or its affiliates a development fee in an amount that is usual and customary for comparable services rendered for similar projects in the geographic market where the services are provided; however, we will not pay a development fee to our advisor or its affiliates if our advisor or its affiliates elect to receive an acquisition fee based on the cost of such development.

For the three months ended March 31, 2018 and 2017, we did not incur any development fees to our advisor or its affiliates.

Reimbursement of Acquisition Expenses

We reimburse our advisor or its affiliates for acquisition expenses related to selecting, evaluating and acquiring assets, which are reimbursed regardless of whether an asset is acquired. The reimbursement of acquisition expenses, acquisition fees, total development costs and real estate commissions paid to unaffiliated third parties will not exceed, in the aggregate, 6.0% of the contract purchase price of the property or real estate-related investments, unless fees in excess of such limits are approved by a majority of our directors, including a majority of our independent directors, not otherwise interested in the transaction. For the three months ended March 31, 2018 and 2017, such fees and expenses paid did not exceed 6.0% of the contract purchase price of our property acquisitions, except with respect to our acquisitions of Athens MOB and Northern California Senior Housing Portfolio, which excess fees were approved by our directors as set forth above. For a further discussion, see Note 3, Real Estate Investments, Net.

Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as business combinations in accordance with ASC Topic 805 are expensed as incurred and included in acquisition related expenses in our accompanying condensed consolidated statements of operations. Reimbursements of acquisition expenses in connection with the acquisition of properties accounted for as asset acquisitions in accordance with ASU 2017-01 or the acquisition of real estate-related investments are capitalized as part of the associated investment in our accompanying condensed consolidated balance sheets. For the three months ended March 31, 2018 and 2017, we incurred $0 and $1,000, respectively, in acquisition expenses to our advisor or its affiliates.

Operational Stage

Asset Management Fee

We pay our advisor or its affiliates a monthly fee for services rendered in connection with the management of our assets equal to one-twelfth of 0.80% of average invested assets. For such purposes, average invested assets means the average of the aggregate book value of our assets invested in real estate properties and real estate-related investments, before deducting depreciation, amortization, bad debt and other similar non-cash reserves, computed by taking the average of such values at the end of each month during the period of calculation.

For the three months ended March 31, 2018 and 2017, we incurred $958,000 and $301,000, respectively, in asset management fees to our advisor, which are included in general and administrative in our accompanying condensed consolidated statements of operations.

Property Management Fee

American Healthcare Investors or its designated personnel may provide property management services with respect to our properties or may sub-contract these duties to any third party and provide oversight of such third-party property manager. We pay American Healthcare Investors a monthly management fee equal to a percentage of the gross monthly cash receipts of such property as follows: (i) a property management oversight fee of 1.0% of the gross monthly cash receipts of any stand-alone, single-tenant, net leased property, except for such properties operated utilizing a RIDEA structure, for which we pay a property management oversight fee of 1.5% of the gross monthly cash receipts with respect to such property; (ii) a property management oversight fee of 1.5% of the gross monthly cash receipts of any property that is not a stand-alone, single-tenant, net leased property and for which American Healthcare Investors or its designated personnel provide oversight of a third party that performs the duties of a property manager with respect to such property; or (iii) a fair and reasonable property management fee that is approved by a majority of our directors, including a majority of our independent directors, that is not less favorable to us than terms available from unaffiliated third parties for any property that is not a stand-alone, single-tenant, net leased property and for which American Healthcare Investors or its designated personnel directly serve as the property manager without sub-contracting such duties to a third party.

Property management fees are included in property operating and rental expenses in our accompanying condensed consolidated statements of operations. For the three months ended March 31, 2018 and 2017, we incurred property management fees of $145,000 and $59,000, respectively, to American Healthcare Investors.

Lease Fees

We may pay our advisor or its affiliates a separate fee for any leasing activities in an amount not to exceed the fee customarily charged in arm’s-length transactions by others rendering similar services in the same geographic area for similar properties as determined by a survey of brokers and agents in such area. Such fee is generally expected to range from 3.0% to 6.0% of the gross revenues generated during the initial term of the lease.

Lease fees are capitalized as lease commissions, which are included in other assets, net in our accompanying condensed consolidated balance sheets, and amortized over the term of the lease. For the three months ended March 31, 2018, we incurred lease fees of $1,000. For the three months ended March 31, 2017, we did not incur any lease fees to our advisor or its affiliates.

Construction Management Fee

In the event that our advisor or its affiliates assist with planning and coordinating the construction of any capital or tenant improvements, we pay our advisor or its affiliates a construction management fee of up to 5.0% of the cost of such improvements. Construction management fees are capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets or are expensed and included in our accompanying condensed consolidated statements of operations, as applicable. For the three months ended March 31, 2018 and 2017, we did not incur any construction management fees to our advisor or its affiliates.

Operating Expenses

We reimburse our advisor or its affiliates for operating expenses incurred in rendering services to us, subject to certain limitations. However, we cannot reimburse our advisor or its affiliates at the end of any fiscal quarter for total operating expenses that, in the four consecutive fiscal quarters then ended, exceed the greater of: (i) 2.0% of our average invested assets, as defined in the Advisory Agreement; or (ii) 25.0% of our net income, as defined in the Advisory Agreement, unless our independent directors determined that such excess expenses were justified based on unusual and nonrecurring factors which they deem sufficient.

Our operating expenses as a percentage of average invested assets and as a percentage of net income were 1.3% and 27.8%, respectively, for the 12 months ended March 31, 2018; however, our operating expenses did not exceed the aforementioned limitation as 2.0% of our average invested assets was greater than 25.0% of our net income.

For the three months ended March 31, 2018 and 2017, our advisor incurred operating expenses on our behalf of $24,000 and $21,000, respectively. Operating expenses are generally included in general and administrative in our accompanying condensed consolidated statements of operations.

Compensation for Additional Services

We pay our advisor and its affiliates for services performed for us other than those required to be rendered by our advisor or its affiliates under the Advisory Agreement. The rate of compensation for these services has to be approved by a majority of our board of directors, including a majority of our independent directors, and cannot exceed an amount that would be paid to unaffiliated third parties for similar services. For the three months ended March 31, 2018 and 2017, our advisor and its affiliates were not compensated for any additional services.

Liquidity Stage

Disposition Fees

For services relating to the sale of one or more properties, we pay our advisor or its affiliates a disposition fee up to the lesser of 2.0% of the contract sales price or 50.0% of a customary competitive real estate commission given the circumstances surrounding the sale, in each case as determined by our board of directors, including a majority of our independent directors, upon the provision of a substantial amount of the services in the sales effort. The amount of disposition fees paid, when added to the real estate commissions paid to unaffiliated third parties, will not exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. For the three months ended March 31, 2018 and 2017, we did not incur any disposition fees to our advisor or its affiliates.

Subordinated Participation Interest

Subordinated Distribution of Net Sales Proceeds

In the event of liquidation, we will pay our advisor a subordinated distribution of net sales proceeds. The distribution will be equal to 15.0% of the remaining net proceeds from the sales of properties, after distributions to our stockholders, in the aggregate, of: (i) a full return of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan); plus (ii) an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock, as adjusted for distributions of net sales proceeds. Actual amounts to be received depend on the sale prices of properties upon liquidation. For the three months ended March 31, 2018 and 2017, we did not pay any such distributions to our advisor.

Subordinated Distribution Upon Listing

Upon the listing of shares of our common stock on a national securities exchange, in redemption of our advisor’s limited partnership units, we will pay our advisor a distribution equal to 15.0% of the amount by which: (i) the market value of our outstanding common stock at listing plus distributions paid prior to listing exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the amount of cash equal to an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the date of listing. Actual amounts to be received depend upon the market value of our outstanding stock at the time of listing, among other factors. For the three months ended March 31, 2018 and 2017, we did not pay any such distributions to our advisor.

Subordinated Distribution Upon Termination

Pursuant to the Agreement of Limited Partnership, as amended, of our operating partnership upon termination or non-renewal of the Advisory Agreement, our advisor will also be entitled to a subordinated distribution in redemption of its limited partnership units from our operating partnership equal to15.0%of the amount, if any, by which: (i) the appraised value of our assets on the termination date, less any indebtedness secured by such assets, plus total distributions paid through the termination date, exceeds (ii) the sum of the total amount of capital raised from stockholders (less amounts paid to repurchase shares of our common stock pursuant to our share repurchase plan) and the total amount of cash equal to an annual 6.0% cumulative, non-compounded return on the gross proceeds from the sale of shares of our common stock through the termination date. In addition, our advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing or other liquidity event, including a liquidation, sale of substantially all of our assets or merger in which our stockholders receive in exchange for their shares of our common stock, shares of a company that are traded on a national securities exchange.

As of March 31, 2018 and December 31, 2017, we did not have any liability related to the subordinated distribution upon termination.

Stock Purchase Plans

On December 30, 2016, our Chief Executive Officer and Chairman of the Board of Directors, Jeffrey T. Hanson, our President and Chief Operating Officer, Danny Prosky, and our Executive Vice President and General Counsel, Mathieu B. Streiff, each executed stock purchase plans, or the 2017 Stock Purchase Plans, whereby they each irrevocably agreed to invest 100% of their net after-tax base salary and cash bonus compensation earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class I common stock. In addition, on December 30, 2016, three Executive Vice Presidents of American Healthcare Investors, including our Executive Vice President of Acquisitions, Stefan K.L. Oh, as well as our Vice Presidents of Asset Management, Wendie Newman and Christopher M. Belford, each executed similar 2017 Stock Purchase Plans whereby they each irrevocably agreed to invest a portion of their net after-tax base salary or a portion of their net after-tax base salary and cash bonus compensation, ranging from 5.0% to 15.0%, earned as employees of American Healthcare Investors directly into our company by purchasing shares of our Class I common stock. The 2017 Stock Purchase Plans terminated on December 31, 2017.

Purchases of shares of our Class I common stock pursuant to the 2017 Stock Purchase Plans commenced beginning with the officers’ regularly scheduled payroll payment on January 23, 2017. The shares of Class I common stock were purchased pursuant to the 2017 Stock Purchase Plans at a price of $9.21 per share, reflecting the purchase price of shares of Class I common stock offered to the public reduced by the dealer manager fees funded by us, as applicable. No selling commissions, dealer manager fees (including the portion of such dealer manager fees funded by our advisor) or stockholder servicing fees were paid with respect to such sales of our Class I common stock.

On December 31, 2017, Messrs. Hanson, Prosky, and Streiff each executed stock purchase plans for the purchase of shares of our Class I common stock, or the 2018 Stock Purchase Plans, on terms similar to their 2017 Stock Purchase Plans. In addition, on December 31, 2017, four Executive Vice Presidents of American Healthcare Investors, including Messrs. Oh and Belford, Ms. Newman and our Chief Financial Officer, Brian S. Peay, each executed similar 2018 Stock Purchase Plans whereby they each irrevocably agreed to invest a portion of their net after-tax base salary or a portion of their net after-tax base salary and cash bonus compensation, ranging from 5.0% to 15.0%, earned on or after January 1, 2018 as employees of American Healthcare Investors directly into shares of our Class I common stock. The 2018 Stock Purchase Plans terminate on December 31, 2018 or earlier upon the occurrence of certain events, such as any earlier termination of our public offering of securities, unless otherwise renewed or extended.

Purchases of shares of our Class I common stock pursuant to the 2018 Stock Purchase Plans commenced beginning with the first regularly scheduled payroll payment on January 22, 2018. The shares of Class I common stock were or will be purchased pursuant to the 2018 Stock Purchase Plans at a per share purchase price equal to the per share purchase price of our Class I common stock offered to the public, which was $9.21 per share prior to April 11, 2018 and is currently $9.65 per share effective April 11, 2018. No selling commissions, dealer manager fees (including the portion of such dealer manager fees funded by our advisor) or stockholder servicing fees will be paid with respect to such sales of our Class I common stock.

For the three months ended March 31, 2018 and 2017, our officers invested the following amounts and we issued the following shares of our Class T and Class I common stock pursuant to the applicable stock purchase plan:

		Three Months Ended March 31,
		2018			2017
Officer’s Name	Title	Amount		Shares	Amount		Shares
Jeffrey T. Hanson	Chief Executive Officer and Chairman of the Board of Directors	$	118,000	12,785	$	57,000	6,178
Danny Prosky	President and Chief Operating Officer	123,000		13,305	60,000		6,423
Mathieu B. Streiff	Executive Vice President and General Counsel	123,000		13,317	60,000		6,436
Brian S. Peay	Chief Financial Officer	13,000		1,405	—		—
Stefan K.L. Oh	Executive Vice President of Acquisitions	8,000		869	8,000		842
Christopher M. Belford	Vice President of Asset Management	36,000		3,890	47,000		5,055
Wendie Newman	Vice President of Asset Management	2,000		233	2,000		165
		$	423,000	45,804	$	234,000	25,099

Accounts Payable Due to Affiliates

The following amounts were outstanding to our affiliates as of March 31, 2018 and December 31, 2017:

Fee	March 31, 2018		December 31, 2017
Contingent Advisor Payment	$	7,760,000	$	7,744,000
Asset management fees	325,000		316,000
Property management fees	51,000		43,000
Operating expenses	9,000		6,000
Construction management fees	1,000		1,000
Lease commissions	—		8,000
	$	8,146,000	$	8,118,000

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Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Measurements [Abstract]

Fair Value Measurements

13. Fair Value Measurements

Financial Instruments Disclosed at Fair Value

ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments, whether or not recognized on the face of the balance sheet. Fair value is defined under ASC Topic 820, Fair Value Measurements and Disclosures.

Our accompanying condensed consolidated balance sheets include the following financial instruments: cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits, accounts payable and accrued liabilities, accounts payable due to affiliates, mortgage loans payable and borrowings under the Corporate Line of Credit.

We consider the carrying values of cash and cash equivalents, accounts and other receivables, restricted cash, real estate deposits and accounts payable and accrued liabilities to approximate the fair values for these financial instruments based upon an evaluation of the underlying characteristics, market data and because of the short period of time between origination of the instruments and their expected realization. The fair value of cash and cash equivalents is classified in Level 1 of the fair value hierarchy. The fair value of accounts payable due to affiliates is not determinable due to the related party nature of the accounts payable. The fair value of the other financial instruments is classified in Level 2 of the fair value hierarchy.

The fair value of our mortgage loans payable and the Corporate Line of Credit is estimated using a discounted cash flow analysis using borrowing rates available to us for debt instruments with similar terms and maturities. We have determined that the valuations of our mortgage loans payable and line of credit and term loans are classified in Level 2 within the fair value hierarchy. The carrying amounts and estimated fair values of such financial instruments as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:
Mortgage loans payable	$	11,483,000	$	11,628,000	$	11,567,000	$	11,819,000
Line of credit and term loan	$	61,062,000	$	62,294,000	$	82,644,000	$	84,088,000

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Income Taxes

14. Income Taxes

As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. We have elected to treat certain of our consolidated subsidiaries as wholly-owned taxable REIT subsidiaries, or TRSs, pursuant to the Code. TRSs may participate in services that would otherwise be considered impermissible for REITs and are subject to federal and state income tax at regular corporate tax rates. We did not incur income taxes for the three months ended March 31, 2018 and 2017.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation pursuant to the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate tax rate to 21.0%, eliminating the corporate alternative minimum tax, or AMT, and changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

We adopted ASU 2018-05 which allows us to record provisional amounts during the period of enactment. Any change to the provisional amounts will be recorded as an adjustment to the provision for income taxes in the period the amounts are determined. The measurement period ends when we have obtained, prepared and analyzed the information necessary to finalize the provision, but cannot extend beyond one year of the enactment date. 

We did not incur income taxes for the three months ended March 31, 2017. The components of income tax expense (benefit) for the three months ended March 31, 2018 were as follows:

	Amount
Federal deferred	$	(740,000	)
State deferred	(153,000		)
Valuation allowances	893,000
Total income tax expense (benefit)	$	—

Current Income Tax

Federal and state income taxes are generally a function of the level of income recognized by our TRSs.

Deferred Taxes

Deferred income tax is generally a function of the period’s temporary differences (primarily basis differences between tax and financial reporting for real estate assets and equity investments) and generation of tax net operating losses that may be realized in future periods depending on sufficient taxable income.

We apply the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes, for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, we will initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on our estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. As of March 31, 2018 and December 31, 2017, we did not have any tax benefits or liabilities for uncertain tax positions that we believe should be recognized in our accompanying consolidated financial statements.

We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A valuation allowance is established if we believe it is more likely than not that all or a portion of the deferred tax assets are not realizable. As of March 31, 2018, our valuation allowance fully reserves the net deferred tax asset due to inherent uncertainty of future income. We will continue to monitor industry and economic conditions, and our ability to generate taxable income based on our business plan and available tax planning strategies, which would allow us to utilize the tax benefits of the net deferred tax assets and thereby allow us to reverse all, or a portion of, our valuation allowance in the future.

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Segment Reporting

3 Months Ended

Mar. 31, 2018

Segment Reporting Information Line Items

Segment Reporting

15. Segment Reporting

ASC Topic 280 establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016; senior housing facility in December 2016; senior housing— RIDEA facility in November 2017; and skilled nursing facility in March 2018, we established a new reportable segment at each such time. As of March 31, 2018, we evaluated our business and made resource allocations based on four reportable business segments — medical office buildings, senior housing, senior housing — RIDEA and skilled nursing facilities.

Our medical office buildings are typically leased to multiple tenants under separate leases in each building, thus requiring active management and responsibility for many of the associated operating expenses (although many of these are, or can effectively be, passed through to the tenants). Our senior housing facilities and skilled nursing facilities are primarily single-tenant properties for which we lease the facilities to unaffiliated tenants under triple-net and generally master leases that transfer the obligation for all facility operating costs (including maintenance, repairs, taxes, insurance and capital expenditures) to the tenant. Our senior housing — RIDEA properties include senior housing facilities that are owned and operated utilizing a RIDEA structure.

We evaluate performance based upon segment net operating income. We define segment net operating income as total revenues, less rental expenses, which excludes depreciation and amortization, general and administrative expenses, acquisition related expenses and interest expense for each segment. We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measurement. However, we believe that segment net operating income serves as an appropriate supplemental performance measure to net income (loss) because it allows investors and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis.

Interest expense, depreciation and amortization and other expenses not attributable to individual properties are not allocated to individual segments for purposes of assessing segment performance.

Non-segment assets primarily consist of corporate assets including cash and cash equivalents, other receivables, real estate deposits and other assets not attributable to individual properties.

Summary information for the reportable segments during the three months ended March 31, 2018 and 2017 was as follows:

	Medical Office Buildings		Senior Housing — RIDEA		Senior Housing		Skilled Nursing Facilities		Three Months Ended March 31, 2018
Revenues:
Real estate revenue	$	6,944,000	$	—	$	2,288,000	$	201,000	$	9,433,000
Resident fees and services	—		8,409,000		—		—		8,409,000
Total revenues	6,944,000		8,409,000		2,288,000		201,000		17,842,000
Expenses:
Rental expenses	1,947,000		—		371,000		33,000		2,351,000
Property operating expenses	—		7,233,000		—		—		7,233,000
Segment net operating income	$	4,997,000	$	1,176,000	$	1,917,000	$	168,000	$	8,258,000
Expenses:
General and administrative									$	2,120,000
Acquisition related expenses									95,000
Depreciation and amortization									7,195,000
Interest expense (including amortization of deferred financing costs and debt premium)									(1,084,000		)
Net loss									$	(2,236,000	)

	Medical Office Buildings		Senior Housing		Three Months Ended March 31, 2017
Revenue:
Real estate revenue	$	3,671,000	$	381,000	$	4,052,000
Expenses:
Rental expenses	1,153,000		34,000		1,187,000
Segment net operating income	$	2,518,000	$	347,000	$	2,865,000
Expenses:
General and administrative					$	748,000
Acquisition related expenses					73,000
Depreciation and amortization					1,711,000
Interest expense (including amortization of deferred financing costs and debt premium)					(418,000		)
Net loss					$	(85,000	)

Assets by reportable segment as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018		December 31, 2017
Medical office buildings	$	260,388,000	$	262,260,000
Senior housing — RIDEA	114,300,000		115,402,000
Senior housing	98,807,000		98,519,000
Skilled nursing facilities	23,438,000		—
Other	6,709,000		3,972,000
Total assets	$	503,642,000	$	480,153,000

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Concentration of Credit Risk

3 Months Ended

Mar. 31, 2018

Concentration of Credit Risk [Abstract]

Concentration of Credit Risk

16. Concentration of Credit Risk

Financial instruments that potentially subject us to a concentration of credit risk are primarily cash and cash equivalents, accounts and other receivables, restricted cash and real estate deposits. Cash and cash equivalents are generally invested in investment-grade, short-term instruments with a maturity of three months or less when purchased. We have cash and cash equivalents in financial institutions that are insured by the Federal Deposit Insurance Corporation, or FDIC. As of March 31, 2018 and December 31, 2017, we had cash and cash equivalents in excess of FDIC insured limits. We believe this risk is not significant. Concentration of credit risk with respect to accounts receivable from tenants is limited. In general, we perform credit evaluations of prospective tenants and security deposits are obtained at the time of property acquisition and upon lease execution.

Based on leases in effect as of March 31, 2018, three states in the United States accounted for 10.0% or more of our annualized base rent or annualized net operating income of our total property portfolio. Our properties located in Florida, Nevada and Alabama accounted for approximately 17.8%, 13.3% and 11.8%, respectively, of the annualized base rent or annualized net operating income of our total property portfolio. Accordingly, there is a geographic concentration of risk subject to fluctuations in each state’s economy.

Based on leases in effect as of March 31, 2018, our four reportable business segments, medical office buildings, senior housing — RIDEA, senior housing and skilled nursing facilities accounted for 59.4%, 17.8%, 17.8% and 5.0%, respectively, of our annualized base rent or annualized net operating income.

As of March 31, 2018, we had two tenants that accounted for 10.0% or more of our annualized base rent or annualized net operating income of our total property portfolio, as follows:

Tenant	Annualized Base Rent(1)		Percentage of Annualized Base Rent	Acquisition	Reportable Segment	GLA (Sq Ft)	Lease Expiration Date
Colonial Oaks Master Tenant, LLC	$	4,112,000	11.6%	Lafayette Assisted Living Portfolio and Northern California Senior Housing Portfolio	Senior Housing	215,000	06/30/32
Prime Healthcare Services – Reno	$	3,803,000	10.8%	Reno MOB	Medical Office	145,000	03/31/20 – 12/31/25

___________

(1) Annualized base rent is based on contractual base rent from leases in effect as of March 31, 2018. The loss of any of these tenants or their inability to pay rent could have a material adverse effect on our business and results of operations.

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Per Share Data

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Per Share Data

17. Per Share Data

We report earnings (loss) per share pursuant to ASC Topic 260, Earnings per Share. Basic earnings (loss) per share for all periods presented are computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of our common stock outstanding during the period. Net income (loss) applicable to common stock is calculated as net income (loss) attributable to controlling interest less distributions allocated to participating securities of $4,000 and $2,000 for the three months ended March 31, 2018 and 2017, respectively. Diluted earnings (loss) per share are computed based on the weighted average number of shares of our common stock and all potentially dilutive securities, if any. Nonvested shares of our restricted common stock and redeemable limited partnership units of our operating partnership are participating securities and give rise to potentially dilutive shares of our common stock. As of March 31, 2018 and 2017, there were 27,000 and 12,000 nonvested shares, respectively, of our restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during these periods. As of March 31, 2018 and 2017, there were 208 units of redeemable limited partnership units of our operating partnership outstanding, but such units were excluded from the computation of diluted earnings per share because such units were anti-dilutive during these periods.

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Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

18. Subsequent Events

Status of Our Offering

As of May 4, 2018, we had received and accepted subscriptions in our offering for 48,784,089 aggregate shares of our Class T and Class I common stock, or $485,441,000, excluding shares of our common stock issued pursuant to the DRIP.

Property Acquisitions

Subsequent to March 31, 2018, we completed two property acquisitions comprising two buildings from unaffiliated third parties. The following is a summary of our property acquisitions subsequent to March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Sauk Prairie MOB	Prairie du Sac, WI	Medical Office	04/09/18	$	19,500,000	$	19,500,000	$	878,000
Surprise MOB	Surprise, AZ	Medical Office	04/27/18	11,650,000		8,000,000		524,000
				$	31,150,000	$	27,500,000	$	1,402,000

___________

(1) We own 100% of our properties acquired subsequent to March 31, 2018.

(2) Represents borrowings under the Corporate 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 our properties, a base acquisition fee of 2.25% of the contract purchase price upon the closing of the acquisition. In addition, the total acquisition fee includes a Contingent Advisor Payment in the amount of 2.25% of the contract purchase price of the properties 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.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Because we are the sole general partner of our operating partnership and have unilateral control over its management and major operating decisions (even if additional limited partners are admitted to our operating partnership), the accounts of our operating partnership are consolidated in our condensed consolidated financial statements. All intercompany accounts and transactions are eliminated in consolidation.

Basis of Presentation

Our accompanying condensed consolidated financial statements include our accounts and those of our operating partnership and the wholly owned subsidiaries of our operating partnership, as well as any variable interest entities, or VIEs, in which we are the primary beneficiary. We evaluate our ability to control an entity, and whether the entity is a VIE and of which we are the primary beneficiary, by considering substantive terms of the arrangement and identifying which enterprise has the power to direct the activities of the entity that most significantly impacts the entity’s economic performance as defined in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, Topic 810, Consolidation, or ASC Topic 810.

We operate and intend to continue to operate in an umbrella partnership REIT structure in which our operating partnership, or wholly owned subsidiaries of our operating partnership, will own substantially all of the interests in properties acquired on our behalf. We are the sole general partner of our operating partnership

Interim Unaudited Financial Data

Interim Unaudited Financial Data

Our accompanying condensed consolidated financial statements have been prepared by us in accordance with GAAP in conjunction with the rules and regulations of the United States Securities and Exchange Commission, or SEC. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, our accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. Our accompanying condensed consolidated financial statements reflect all adjustments which are, in our view, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim period. Interim results of operations are not necessarily indicative of the results to be expected for the full year; such full year results may be less favorable.

In preparing our accompanying condensed consolidated financial statements, management has evaluated subsequent events through the financial statement issuance date. We believe that although the disclosures contained herein are adequate to prevent the information presented from being misleading, our accompanying condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in our 2017 Annual Report on Form 10-K, as filed with the SEC on March 8, 2018.

Use of Estimates

Use of Estimates

The preparation of our accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of our condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions.

Revenue Recognition and Tenant and Resident Receivables

Revenue Recognition and Tenant and Resident Receivables

In May 2014, the FASB issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers, which has been codified to ASC Topic 606. ASC Topic 606 provides additional guidance to clarify the principles for recognizing revenue. The standard and subsequent amendments are intended to develop a common revenue standard to remove inconsistencies, improve comparability, provide more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. We have evaluated all of our revenue streams to identify whether each revenue stream would be subject to the provisions of ASC Topic 606 and whether there are any differences in the timing, measurement or presentation of revenue recognition. Based on a review of our various revenue streams, certain components of resident fees and services, such as revenues that are ancillary to the contractual rights of residents within our senior housing facilities operated utilizing a RIDEA structure, are subject to ASC Topic 606. While these revenue streams are subject to the provisions of ASC Topic 606, we believe that the pattern and timing of recognition of income are consistent with the previous accounting model. Virtually all resident fees and services are earned over a period of time and the majority of these revenues are paid by private payor types with the residual being paid by Medicaid. We adopted ASC Topic 606 on January 1, 2018 using the modified retrospective adoption method and the adoption did not have a material impact on our consolidated financial statements.

Segment Disclosure

Segment Disclosure

ASC Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. We segregate our operations into reporting segments in order to assess the performance of our business in the same way that management reviews our performance and makes operating decisions. Accordingly, when we acquired our first medical office building in June 2016; senior housing facility in December 2016; senior housing — RIDEA facility in November 2017; and skilled nursing facility in March 2018, we added a new reportable segment at each such time.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, or ASU 2016-02, which amends the guidance on accounting for leases, including extensive amendments to the disclosure requirements. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02 from a lessor perspective, the guidance will require bifurcation of lease revenues into lease components and non-lease components and to separately recognize and disclose non-lease components that are executory in nature. Lease components will continue to be recognized on a straight-line basis over the lease term and certain non-lease components may be accounted for under the new revenue recognition guidance in ASC Topic 606. Although not yet finalized, the FASB has proposed an option for lessors to elect a practical expedient allowing them to not separate lease and non-lease components in a contract for the purpose of revenue recognition and disclosure. This practical expedient is limited to circumstances in which: (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component; and (ii) the combined single lease component would be classified as an operating lease. If finalized, we plan to elect this practical expedient. In addition, ASU 2016-02 provides a practical expedient that allows an entity to not reassess the following upon adoption (must be elected as a group): (i) whether an expired or existing contract contains a lease arrangement; (ii) the lease classification related to expired or existing lease arrangements; or (iii) whether costs incurred on expired or existing leases qualify as initial direct costs. We plan to elect this practical expedient.

We are still evaluating the complete impact of the adoption of ASU 2016-02 and its related expedients on January 1, 2019 to our consolidated financial statements and disclosures. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with a few optional practical expedients. As a result of the adoption of ASU 2016-02 on January 1, 2019, we: (i) will recognize all of our operating leases for which we are the lessee, including facilities leases and ground leases, on our consolidated balance sheets; and (ii) may be required to increase our revenue and expense for the amount of real estate taxes and insurance paid by our tenant under triple-net leases.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018. We do not expect the adoption of ASU 2016-13 on January 1, 2020 to have a material impact on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income, or ASU 2018-02, which amends the reclassification requirements from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017, or the Tax Act. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2018-02 on January 1, 2019 to have a material impact on our consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Amendments to the SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, or ASU 2018-05, which updates the income tax accounting in GAAP to reflect the SEC’s interpretive guidance with regards to the Tax Act. See Note 14, Income Taxes, for a further discussion.

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Real Estate Investments, Net (Tables)

3 Months Ended

Mar. 31, 2018

Real Estate [Abstract]

Schedule Of Real Estate Investments Table

Our real estate investments, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Building and improvements	$	390,654,000		$	371,890,000
Land	54,723,000			52,202,000
Furniture, fixtures and equipment	4,498,000			4,458,000
	449,875,000			428,550,000
Less: accumulated depreciation	(12,187,000		)	(8,885,000		)
	$	437,688,000		$	419,665,000

Schedule Of Acquisitions Of Properties Table

Acquisition in 2018

For the three months ended March 31, 2018, using net proceeds from our offering and debt financing, we completed one property acquisition comprising two facilities from unaffiliated third parties. The following is a summary of our property acquisition for the three months ended March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Central Wisconsin Senior Care Portfolio	Sun Prairie and Waunakee, WI	Skilled Nursing	03/01/18	$	22,600,000	$	22,600,000	$	1,018,000

___________

(1) We own 100% of our property acquired in 2018.

(2) Represents a borrowing under the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan, at the time of acquisition.

(3) Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, a base acquisition fee of 2.25% of the 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 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.

Subsequent to March 31, 2018, we completed two property acquisitions comprising two buildings from unaffiliated third parties. The following is a summary of our property acquisitions subsequent to March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Sauk Prairie MOB	Prairie du Sac, WI	Medical Office	04/09/18	$	19,500,000	$	19,500,000	$	878,000
Surprise MOB	Surprise, AZ	Medical Office	04/27/18	11,650,000		8,000,000		524,000
				$	31,150,000	$	27,500,000	$	1,402,000

___________

(1) We own 100% of our properties acquired subsequent to March 31, 2018.

(2) Represents borrowings under the Corporate 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 our properties, a base acquisition fee of 2.25% of the contract purchase price upon the closing of the acquisition. In addition, the total acquisition fee includes a Contingent Advisor Payment in the amount of 2.25% of the contract purchase price of the properties 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.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the purchase price of the assets acquired and liabilities assumed at the time of acquisition from our property acquisition in 2018 based on their relative fair values:

	2018 Acquisition
Building and improvements	$	17,845,000
Land	2,517,000
In-place leases	2,933,000
Total assets acquired	23,295,000
Total liabilities assumed	—
Net assets acquired	$	23,295,000

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Identified Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2018

Finite-Lived Intangible Assets, Net [Abstract]

Schedule of Finite-Lived Intangible Assets

Identified intangible assets, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
In-place leases, net of accumulated amortization of $9,530,000 and $5,832,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 8.1 years and 7.3 years as of March 31, 2018 and December 31, 2017, respectively)	$	36,926,000	$	37,766,000
Leasehold interests, net of accumulated amortization of $143,000 and $119,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 70.3 years and 70.6 years as of March 31, 2018 and December 31, 2017, respectively)	6,269,000		6,292,000
Above-market leases, net of accumulated amortization of $211,000 and $173,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 5.4 years and 5.6 years as of March 31, 2018 and December 31, 2017, respectively)	725,000		763,000
	$	43,920,000	$	44,821,000

Amortization expense on identified intangible assets

As of March 31, 2018, estimated amortization expense on the identified intangible assets for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:

Year	Amount
2018	$	9,663,000
2019	4,644,000
2020	4,053,000
2021	3,657,000
2022	3,140,000
Thereafter	18,763,000
	$	43,920,000

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Other Assets, Net (Tables)

3 Months Ended

Mar. 31, 2018

Other Assets, Net [Abstract]

Other Assets

Other assets, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Deferred rent receivables	$	2,546,000	$	1,912,000
Prepaid expenses and deposits	1,696,000		1,532,000
Deferred financing costs, net of accumulated amortization of $772,000 and $554,000 as of March 31, 2018 and December 31, 2017, respectively(1)	1,238,000		1,456,000
Lease commissions, net of accumulated amortization of $17,000 and $9,000 as of March 31, 2018 and December 31, 2017, respectively	320,000		326,000
	$	5,800,000	$	5,226,000

___________

(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, net only include costs related to the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan.

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Mortgage Loans Payable, Net (Tables)

3 Months Ended

Mar. 31, 2018

Mortgage Loans Payable, Net [Abstract]

Schedule of Activity Related to Notes Payable

The changes in the carrying amount of mortgage loans payable, net consisted of the following for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Beginning balance	$	11,567,000		$	3,965,000
Additions:
Amortization of deferred financing costs(1)	15,000			2,000
Deductions:
Scheduled principal payments on mortgage loans payable	(96,000		)	(62,000		)
Amortization of premium on mortgage loan payable	(3,000		)	(4,000		)
Ending balance	$	11,483,000		$	3,901,000

___________

(1) In accordance with ASU 2015-03 and ASU 2015-15, deferred financing costs only includes costs related to our mortgage loans payable.

Schedule of Maturities of Long-term Debt

As of March 31, 2018, the principal payments due on our mortgage loans payable for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter were as follows:

Year	Amount
2018	$	290,000
2019	407,000
2020	8,036,000
2021	314,000
2022	330,000
Thereafter	2,161,000
	$	11,538,000

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Identified Intangible Liabilities, Net (Tables)

3 Months Ended

Mar. 31, 2018

Identified Intangible Liabilities [Abstract]

Schedule of Intangible Liabilities, Net

Identified intangible liabilities, net consisted of the following as of March 31, 2018 and December 31, 2017:

	March 31, 2018		December 31, 2017
Below-market leases, net of accumulated amortization of $428,000 and $345,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 6.3 years and 6.4 years as of March 31, 2018 and December 31, 2017, respectively)	$	1,266,000	$	1,349,000
Above-market leasehold interests, net of accumulated amortization of $8,000 and $6,000 as of March 31, 2018 and December 31, 2017, respectively (with a weighted average remaining life of 51.9 years and 52.2 years as of March 31, 2018 and December 31, 2017, respectively)	387,000		388,000
	$	1,653,000	$	1,737,000

Schedule Of Expected Amortization Expense Intangible Liabilities Table

As of March 31, 2018, estimated amortization expense on identified intangible liabilities for the nine months ending December 31, 2018 and for each of the next four years ending December 31 and thereafter was as follows:

Year	Amount
2018	$	254,000
2019	310,000
2020	147,000
2021	125,000
2022	125,000
Thereafter	692,000
	$	1,653,000

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Redeemable Noncontrolling Interests (Tables)

3 Months Ended

Mar. 31, 2018

Redeemable Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interests

The changes in the carrying amount of redeemable noncontrolling interests consisted of the following for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018			2017
Beginning balance	$	1,002,000		$	2,000
Net loss attributable to redeemable noncontrolling interests	(67,000		)	—
Fair value adjustment to redemption value	67,000			—
Ending balance	$	1,002,000		$	2,000

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2018

Related Party Transaction [Line Items]

Schedule of Related Party Transactions

For the three months ended March 31, 2018 and 2017, our officers invested the following amounts and we issued the following shares of our Class T and Class I common stock pursuant to the applicable stock purchase plan:

		Three Months Ended March 31,
		2018			2017
Officer’s Name	Title	Amount		Shares	Amount		Shares
Jeffrey T. Hanson	Chief Executive Officer and Chairman of the Board of Directors	$	118,000	12,785	$	57,000	6,178
Danny Prosky	President and Chief Operating Officer	123,000		13,305	60,000		6,423
Mathieu B. Streiff	Executive Vice President and General Counsel	123,000		13,317	60,000		6,436
Brian S. Peay	Chief Financial Officer	13,000		1,405	—		—
Stefan K.L. Oh	Executive Vice President of Acquisitions	8,000		869	8,000		842
Christopher M. Belford	Vice President of Asset Management	36,000		3,890	47,000		5,055
Wendie Newman	Vice President of Asset Management	2,000		233	2,000		165
		$	423,000	45,804	$	234,000	25,099

Schedule Of Amount Outstanding To Affiliates Table

Accounts Payable Due to Affiliates

The following amounts were outstanding to our affiliates as of March 31, 2018 and December 31, 2017:

Fee	March 31, 2018		December 31, 2017
Contingent Advisor Payment	$	7,760,000	$	7,744,000
Asset management fees	325,000		316,000
Property management fees	51,000		43,000
Operating expenses	9,000		6,000
Construction management fees	1,000		1,000
Lease commissions	—		8,000
	$	8,146,000	$	8,118,000

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Measurements [Abstract]

Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of such financial instruments as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Liabilities:
Mortgage loans payable	$	11,483,000	$	11,628,000	$	11,567,000	$	11,819,000
Line of credit and term loan	$	61,062,000	$	62,294,000	$	82,644,000	$	84,088,000

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The components of income tax expense (benefit) for the three months ended March 31, 2018 were as follows:

	Amount
Federal deferred	$	(740,000	)
State deferred	(153,000		)
Valuation allowances	893,000
Total income tax expense (benefit)	$	—

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting Information Line Items

Summary Information by Reportable Segment

	Medical Office Buildings		Senior Housing — RIDEA		Senior Housing		Skilled Nursing Facilities		Three Months Ended March 31, 2018
Revenues:
Real estate revenue	$	6,944,000	$	—	$	2,288,000	$	201,000	$	9,433,000
Resident fees and services	—		8,409,000		—		—		8,409,000
Total revenues	6,944,000		8,409,000		2,288,000		201,000		17,842,000
Expenses:
Rental expenses	1,947,000		—		371,000		33,000		2,351,000
Property operating expenses	—		7,233,000		—		—		7,233,000
Segment net operating income	$	4,997,000	$	1,176,000	$	1,917,000	$	168,000	$	8,258,000
Expenses:
General and administrative									$	2,120,000
Acquisition related expenses									95,000
Depreciation and amortization									7,195,000
Interest expense (including amortization of deferred financing costs and debt premium)									(1,084,000		)
Net loss									$	(2,236,000	)

	Medical Office Buildings		Senior Housing		Three Months Ended March 31, 2017
Revenue:
Real estate revenue	$	3,671,000	$	381,000	$	4,052,000
Expenses:
Rental expenses	1,153,000		34,000		1,187,000
Segment net operating income	$	2,518,000	$	347,000	$	2,865,000
Expenses:
General and administrative					$	748,000
Acquisition related expenses					73,000
Depreciation and amortization					1,711,000
Interest expense (including amortization of deferred financing costs and debt premium)					(418,000		)
Net loss					$	(85,000	)

Assets by Reportable Segment

Assets by reportable segment as of March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018		December 31, 2017
Medical office buildings	$	260,388,000	$	262,260,000
Senior housing — RIDEA	114,300,000		115,402,000
Senior housing	98,807,000		98,519,000
Skilled nursing facilities	23,438,000		—
Other	6,709,000		3,972,000
Total assets	$	503,642,000	$	480,153,000

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Concentration of Credit Risk (Tables)

3 Months Ended

Mar. 31, 2018

Concentration of Credit Risk [Abstract]

Schedules of Concentration of Risk, by Risk Factor

As of March 31, 2018, we had two tenants that accounted for 10.0% or more of our annualized base rent or annualized net operating income of our total property portfolio, as follows:

Tenant	Annualized Base Rent(1)		Percentage of Annualized Base Rent	Acquisition	Reportable Segment	GLA (Sq Ft)	Lease Expiration Date
Colonial Oaks Master Tenant, LLC	$	4,112,000	11.6%	Lafayette Assisted Living Portfolio and Northern California Senior Housing Portfolio	Senior Housing	215,000	06/30/32
Prime Healthcare Services – Reno	$	3,803,000	10.8%	Reno MOB	Medical Office	145,000	03/31/20 – 12/31/25

___________

(1) Annualized base rent is based on contractual base rent from leases in effect as of March 31, 2018. The loss of any of these tenants or their inability to pay rent could have a material adverse effect on our business and results of operations.

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Subsequent Events (Tables)

3 Months Ended

Mar. 31, 2018

Subsequent Event [Line Items]

Schedule Of Acquisitions Of Properties Table

Acquisition in 2018

For the three months ended March 31, 2018, using net proceeds from our offering and debt financing, we completed one property acquisition comprising two facilities from unaffiliated third parties. The following is a summary of our property acquisition for the three months ended March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Central Wisconsin Senior Care Portfolio	Sun Prairie and Waunakee, WI	Skilled Nursing	03/01/18	$	22,600,000	$	22,600,000	$	1,018,000

___________

(1) We own 100% of our property acquired in 2018.

(2) Represents a borrowing under the Corporate Line of Credit, as defined in Note 7, Line of Credit and Term Loan, at the time of acquisition.

(3) Our advisor was paid, as compensation for services rendered in connection with the investigation, selection and acquisition of our property, a base acquisition fee of 2.25% of the 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 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.

Subsequent to March 31, 2018, we completed two property acquisitions comprising two buildings from unaffiliated third parties. The following is a summary of our property acquisitions subsequent to March 31, 2018:

Acquisition(1)	Location	Type	Date Acquired	Contract Purchase Price		Corporate Line of Credit(2)		Total Acquisition Fee(3)
Sauk Prairie MOB	Prairie du Sac, WI	Medical Office	04/09/18	$	19,500,000	$	19,500,000	$	878,000
Surprise MOB	Surprise, AZ	Medical Office	04/27/18	11,650,000		8,000,000		524,000
				$	31,150,000	$	27,500,000	$	1,402,000

___________

(1) We own 100% of our properties acquired subsequent to March 31, 2018.

(2) Represents borrowings under the Corporate 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 our properties, a base acquisition fee of 2.25% of the contract purchase price upon the closing of the acquisition. In addition, the total acquisition fee includes a Contingent Advisor Payment in the amount of 2.25% of the contract purchase price of the properties 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.

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Organization and Description of Business (Detail) $ / shares in Units, ft² in Thousands		1 Months Ended	2 Months Ended	3 Months Ended	12 Months Ended	24 Months Ended	38 Months Ended
	Mar. 31, 2018 ft² segment	May 11, 2018 Building Acquisition	Mar. 31, 2018 ft²	Mar. 31, 2018 ft² segment	Feb. 16, 2017	Mar. 31, 2018 USD ($) ft² shares	Mar. 31, 2018 USD ($) ft² Building Acquisition Property	Mar. 31, 2018 ft²	Apr. 11, 2018 $ / shares	Jan. 22, 2018 $ / shares	Mar. 01, 2017 $ / shares	Jan. 23, 2017 $ / shares	Jun. 17, 2016 USD ($) $ / shares	Feb. 16, 2016 USD ($) $ / shares	Mar. 01, 2015
Date of incorporation								Jan. 23, 2015
Date of capitalization			Feb. 06, 2015
Aggregate Maximum Amount Of Common Stock Issuable Under Public Offering														$ 3,150,000,000
Aggregate Reallocated Maximum Amount of Common Stock Issuable Under Primary Public Offering													$ 3,150,000,000
Advisory agreement term					1 year
Number of Reportable Segments | segment	4			4
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition							19
Number of Properties Acquired from Unaffiliated Parties | Property							40
Number of buildings acquired from unaffiliated parties | Building							42
GLA (Sq Ft) | ft²	2,553		2,553	2,553		2,553	2,553	2,553
Contract purchase price							$ 488,740,000
Common Class T [Member]
Maximum dollar amount of common stock issuable under public offering														$ 3,000,000,000
Share price | $ / shares													$ 10.00	$ 10.00
Reallocated Maximum Amount Of Common Stock Issuable Under Primary Public Offering													$ 2,800,000,000
Subscriptions in offering of common stock received and accepted shares | shares						46,532,759
Subscriptions in offering of common stock received and accepted value						$ 462,971,000
Common Class I [Member]
Share price | $ / shares										$ 9.21	$ 9.21	$ 9.21	$ 9.30
Reallocated Maximum Amount Of Common Stock Issuable Under Primary Public Offering													$ 200,000,000
Distribution Reinvestment Plan [Member]
Maximum dollar amount of common stock issuable under public offering														$ 150,000,000
Share price | $ / shares											$ 9.40			$ 9.50
American Healthcare Investors [Member]
Ownership percentage in affiliate														75.00%
Griffin Capital Corporation [Member]
Ownership percentage in affiliate														25.00%
AHI Group Holdings, LLC [Member]
Ownership percentage in affiliate															47.10%
NorthStar Asset Management Group Inc. [Member]
Ownership percentage in affiliate															45.10%
James F. Flaherty III [Member]
Ownership percentage in affiliate															7.80%
Subsequent Event [Member]
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition		2
Number of buildings acquired from unaffiliated parties | Building		2
Subsequent Event [Member] | Common Class I [Member]
Share price | $ / shares									$ 9.65
Subsequent Event [Member] | Distribution Reinvestment Plan [Member]
Share price | $ / shares									9.65
Class T and Class I Common Stock
Maximum dollar amount of common stock issuable under public offering														$ 3,000,000,000
Share price | $ / shares														$ 10.00
Class T and Class I Common Stock | Subsequent Event [Member]
Share price | $ / shares									$ 10.05
Distribution Reinvestment Plan [Member]
Maximum dollar amount of common stock issuable under public offering														$ 150,000,000

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Summary of Accounting Policies (Details)		3 Months Ended	12 Months Ended
	Mar. 31, 2018 segment	Mar. 31, 2018 USD ($) segment	Dec. 31, 2017
Ancillary service revenue | $		$ 186,000
Number of Reportable Segments | segment	4	4
Percentage of ownership in operating partnership		99.99%	99.99%
Percentage of limited partnership interest		0.01%	0.01%

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Real Estate Investments, Net - Investments in Consolidated Properties (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Real Estate Properties [Line Items]
Real estate investment, at cost	$ 449,875,000	$ 428,550,000
Less: accumulated depreciation	(12,187,000)	(8,885,000)
Real estate investments, net	437,688,000	419,665,000
Building and Building Improvements [Member]
Real Estate Properties [Line Items]
Real estate investment, at cost	390,654,000	371,890,000
Land [Member]
Real Estate Properties [Line Items]
Real estate investment, at cost	54,723,000	52,202,000
Furniture and Fixtures [Member]
Real Estate Properties [Line Items]
Real estate investment, at cost	$ 4,498,000	$ 4,458,000

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Real Estate Investments, Net - Additional Information (Detail)	3 Months Ended		26 Months Ended	38 Months Ended
	Mar. 31, 2018 USD ($) Building Acquisition	Mar. 31, 2017 USD ($)	Mar. 31, 2018	Mar. 31, 2018 Building Acquisition
Real Estate Properties [Line Items]
Depreciation	$ 3,416,000	$ 1,140,000
Maximum percentage of fees and expenses associated with the acquisition	6.00%	6.00%	6.00%
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition				19
Number of buildings acquired from unaffiliated parties | Building				42
Related Party Transaction, Expenses from Transactions with Related Party	$ 695,000
Related Party Transaction, Expenses from Transactions with Related Party	2,975,000	$ 4,089,000
Medical Office Building [Member]
Real Estate Properties [Line Items]
Capital Expenditures Incurred	958,000
Senior Housing [Member]
Real Estate Properties [Line Items]
Capital Expenditures Incurred	0
Senior Housing-RIDEA [Member]
Real Estate Properties [Line Items]
Capital Expenditures Incurred	88,000
Skilled Nursing Facilities [Member]
Real Estate Properties [Line Items]
Capital Expenditures Incurred	$ 0
Advisor [Member]
Real Estate Properties [Line Items]
Base Acquisition Fee For Property Acquired	2.25%
Contingent Advisor Payment Fee	2.25%		2.25%
Contingent Advisor Payment Incurred [Member]
Real Estate Properties [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 509,000
2018 Acquisitions [Member]
Real Estate Properties [Line Items]
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition	1
Number of buildings acquired from unaffiliated parties | Building	2

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Real Estate Investments, Net - Summary of Acquisitions (Details) - USD ($)	3 Months Ended	26 Months Ended	38 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2018
Real Estate Properties [Line Items]
Contract purchase price			$ 488,740,000
Ownership Percentage, Properties	100.00%
Central Wisconsin Senior Care Portfolio [Member]
Real Estate Properties [Line Items]
Acquisition fee	$ 1,018,000
Type Of Property Acquired	Skilled Nursing
Date acquired	Mar. 01, 2018
Contract purchase price	$ 22,600,000
Lines Of Credit Related To Acquisition Of Properties	$ 22,600,000
Advisor [Member]
Real Estate Properties [Line Items]
Base Acquisition Fee For Property Acquired	2.25%
Contingent Advisor Payment Fee	2.25%	2.25%

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Real Estate Investments, Net - Assets and Liabilities Acquired (Details) - 2018 Acquisitions [Member]	Mar. 31, 2018 USD ($)
Building and Improvements	$ 17,845,000
Land	2,517,000
Total assets acquired	23,295,000
Total liabilities assumed	0
Net assets acquired	23,295,000
In-Place Leases [Member]
In-place leases	$ 2,933,000

XML

Identified Intangible Assets - Summary of Identified Intangibles (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Identified intangible assets, net	$ 43,920,000	$ 44,821,000
In-Place Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	36,926,000	37,766,000
Leasehold Interests [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	6,269,000	6,292,000
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	$ 725,000	$ 763,000

XML

Identified Intangible Assets - Summary of Amortization Expense on Identified Intangible Assets, Net (Detail)	Mar. 31, 2018 USD ($)
Finite-Lived Intangible Assets [Line Items]
2018	$ 9,663,000
2019	4,644,000
2020	4,053,000
2021	3,657,000
2022	3,140,000
Thereafter	18,763,000
Identified intangible assets, net	$ 43,920,000

XML

Identified Intangible Assets, Net Identified Intangible Assets, Net (Phantom) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 3,833,000	$ 628,000
Finite-Lived Intangible Asset, Useful Life	16 years 10 months 24 days		16 years 2 months 12 days
In-Place Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ 9,350,000		$ 5,832,000
Finite-Lived Intangible Asset, Useful Life	8 years 1 month 6 days		7 years 3 months 18 days
Leasehold Interests [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 24,000	24,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 144,000		$ 119,000
Finite-Lived Intangible Asset, Useful Life	70 years 3 months 18 days		70 years 7 months 6 days
Above Market Leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 38,000	$ 33,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 211,000		$ 173,000
Finite-Lived Intangible Asset, Useful Life	5 years 4 months 24 days		5 years 7 months 6 days

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Other Assets, Net - Other Assets, Net (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Other Assets [Abstract]
Deferred rent receivables	$ 2,546,000	$ 1,912,000
Prepaid expense and deposits	1,696,000	1,532,000
Deferred financing costs, net of accumulated amortization of $379,000 and $112,000 as of September 30, 2017 and December 31, 2016, respectively(1)		1,456,000
Lease commissions, net of accumulated amortization	320,000	326,000
Other assets, net	$ 5,800,000	$ 5,226,000

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Other Assets, Net - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Assets [Abstract]
Amortization of Debt Issuance Costs	$ 218,000	$ 87,000
Amortization Expense On Lease Commissions	$ 8,000	$ 0

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Other Assets, Net Other Assets, Net (Phantom) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Other Assets, Net (Phantom) [Abstract]
Accumulated Amortization, Debt Issuance Costs	$ 772,000	$ 554,000
Accumulated Amortization, Lease Inducements	$ 17,000	$ 9,000

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Mortgage Loans Payable, Net - Additional Information (Detail)	Mar. 31, 2018 USD ($) MortgageLoan		Dec. 31, 2017 USD ($)		Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Mortgage Loans on Real Estate [Line Items]
Mortgage loans payable, gross	$ 11,538,000		$ 11,634,000
Mortgage loans payable, net	$ 11,483,000	[1]	$ 11,567,000	[1]	$ 3,901,000	$ 3,965,000
Number Of Fixed Rate Mortgage Loans Payable | MortgageLoan	2
Minimum [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	4.77%		4.77%
Maximum [Member]
Mortgage Loans on Real Estate [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	5.25%		5.25%
Mortgage Loans Payable, Net [Member]
Mortgage Loans on Real Estate [Line Items]
Debt, Weighted Average Interest Rate	4.92%		4.92%

[1] Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

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Mortgage Loans Payable, Net - Mortgage Loans Payable (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018		Mar. 31, 2017
Change in Carrying Amount of Mortgage Loans Payable [Roll Forward]
Beginning balance	$ 11,567,000	[1]	$ 3,965,000
Amortization of deferred financing costs related to mortgage	15,000		2,000
Scheduled principal payments on mortgage loans payable	(96,000)		(62,000)
Amortization of premium on mortgage loan payable	(3,000)		(4,000)
Ending balance	$ 11,483,000	[1]	$ 3,901,000

[1] Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

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Mortgage Loans Payable - Principal Payments Due on Mortgage Loans Payable (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Mortgage Loans on Real Estate [Abstract]
2018	$ 290,000
2019	407,000
2020	8,036,000
2021	314,000
2022	330,000
Thereafter	2,161,000
Total	$ 11,538,000	$ 11,634,000

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Line of Credit and Term Loan (Detail)				1 Months Ended
		Oct. 31, 2017 USD ($) Extension_period	Aug. 25, 2016 USD ($) Extension	Nov. 03, 2017	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 200,000,000			$ 200,000,000	$ 100,000,000
Line of Credit Facility, Collateral			750000000
Line Of Credit Facility, Number Of Potential Extensions		1	1
Line Of Credit Facility, Potential Extension Term		12 months	12 months
Line of credit and term loan	[1]				$ 62,300,000	$ 84,100,000
Line of Credit [Member]
Line of Credit Facility [Line Items]
Debt, Weighted Average Interest Rate					3.55%	3.45%
Term Loan [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity		$ 50,000,000
Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		150,000,000	$ 100,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity		50,000,000
Aggregate Revolving Commitments [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Potential Maximum Borrowing Capacity		300,000,000
Recourse Indebtedness [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity		20,000,000
Non-recourse Indebtedness [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Potential Increase Amount To Borrowing Capacity		$ 50,000,000
Credit Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Leverage Ratio				40.00%
Line of Credit [Member]
Line of Credit Facility [Line Items]
Commitment fee percentage condition one			0.20%
Average daily used amount percentage condition one			50.00%
Commitment fee percentage condition two			0.25%
Average daily used amount percentage condition two			50.00%
Line of Credit [Member] | Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.50%
Line of Credit [Member] | One-Month Eurodollar [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.00%
Line of Credit [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Base Rate, Percent			0.00%
Line of Credit [Member] | Standby Letters of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 20,000,000
Line of Credit [Member] | Bridge Loan [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 25,000,000
Minimum [Member] | Line of Credit [Member] | Eurodollar [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.75%
Minimum [Member] | Line of Credit [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.55%
Maximum [Member] | Line of Credit [Member] | Eurodollar [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.25%
Maximum [Member] | Line of Credit [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.05%

[1] Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

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Identified Intangible Liabilities, Net - Summary of Identified Intangibles, Net (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Finite Lived Intangible Liabilities [Line Items]
Identified intangible liabilities, net	$ 1,653,000	$ 1,737,000
Below Market Lease [Member]
Finite Lived Intangible Liabilities [Line Items]
Identified intangible liabilities, net	1,266,000	1,349,000
Above-market leasehold interest [Member]
Finite Lived Intangible Liabilities [Line Items]
Identified intangible liabilities, net	$ 387,000	$ 388,000

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Identified Intangible Liabilities, Net - Summary of Amortization Expense on Below Market Leases (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Intangible Liabilities [Abstract]
2017	$ 254,000
2018	310,000
2019	147,000
2020	125,000
2021	125,000
Thereafter	692,000
Identified intangible liabilities, net	$ 1,653,000	$ 1,737,000

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Identified Intangible Liabilities, Net Identified Intangible Liabilities, Net (Phantom) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Amortization of Identified Intangible Liabilities	$ 85,000	$ 68,000
Finite Lived Intangible Liabilities Useful Life	17 years		16 years 8 months 12 days
Below Market Lease [Member]
Amortization of above and below Market Leases	$ 83,000	67,000
Finite Lived Intangible Liabilities Accumulated Amortization	$ 428,000		$ 345,000
Finite Lived Intangible Liabilities Useful Life	6 years 3 months 18 days		6 years 4 months 24 days
Above-market leasehold interest [Member]
Finite Lived Intangible Liabilities Accumulated Amortization	$ 8,000		$ 6,000
Finite Lived Intangible Liabilities Useful Life	51 years 10 months 24 days		52 years 2 months 12 days
Amortization of above market leasehold interest	$ 2,000	$ 1,000

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Redeemable Noncontrolling Interests (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Feb. 06, 2015
Redeemable Noncontrolling Interests [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	99.99%		99.99%
Noncontrolling limited partnership interest in operating partnership	0.01%		0.01%
Ownership Percentage, Properties	100.00%
Adjustments to Additional Paid in Capital, Fair Value Adjustment to Redeemable Noncontrolling Interests	$ 67,000	$ 0
Changes in the carrying amount of redeemable noncontrolling interest [Roll Forward]
Beginning balance	1,002,000	2,000	$ 2,000
Net loss attributable to redeemable noncontrolling interests	(67,000)	0
Ending balance	$ 1,002,000	$ 2,000	$ 1,002,000
Central Florida Senior Housing Portfolio [Member]
Redeemable Noncontrolling Interests [Line Items]
Ownership Percentage, Properties	98.00%
Limited Partner [Member]
Redeemable Noncontrolling Interests [Line Items]
Noncontrolling interest (Note 11)				$ 2,000
Stock Issued During Period, Shares, Stock Splits		208	208

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Redeemable Noncontrolling Interests Redeemable Noncontrolling Interest (Phantom) (Details)	Mar. 31, 2018	Dec. 31, 2017
Noncontrolling Interest Phantom [Abstract]
Noncontrolling Interest, Ownership Percentage by Parent	99.99%	99.99%
Noncontrolling limited partnership interest in operating partnership	0.01%	0.01%

XML

Equity (Detail) - USD ($)	3 Months Ended		12 Months Ended	13 Months Ended	20 Months Ended	21 Months Ended	24 Months Ended	25 Months Ended	26 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Feb. 28, 2017	Sep. 30, 2017	Dec. 31, 2017	Mar. 31, 2018	May 04, 2018	Mar. 31, 2018	Apr. 11, 2018	Jan. 22, 2018	Mar. 01, 2017	Jan. 23, 2017	Dec. 31, 2016	Jun. 17, 2016	Apr. 13, 2016	Feb. 16, 2016	Feb. 12, 2016	Feb. 06, 2015
Preferred Stock, Shares Authorized	200,000,000		200,000,000			200,000,000	200,000,000		200,000,000					200,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01			$ 0.01	$ 0.01		$ 0.01					$ 0.01
Number of shares of common stock, authorized to be issued	1,000,000,000		1,000,000,000			1,000,000,000	1,000,000,000		1,000,000,000					1,000,000,000
Par value of common stock to be offered and sold to the public	$ 0.01		$ 0.01			$ 0.01	$ 0.01		$ 0.01					$ 0.01
Aggregate Maximum Amount Of Common Stock Issuable Under Public Offering																	$ 3,150,000,000
Maximum percentage of common stock repurchased during period									5.00%
Share repurchase plan holding period									1 year
Share repurchase plan percentage of price per-share condition one	92.50%						92.50%		92.50%
Share repurchase plan percentage of price per-share condition two	100.00%						100.00%		100.00%
Issuance of common stock under the DRIP	$ 3,606,000	$ 1,063,000
Stock based compensation	$ 30,000	14,000
Issuance of vested and nonvested restricted common stock, shares							37,500
Common Stock Repuchased During Period Under Share Repurchase Plan Shares	41,188					77,746	118,934
Issuance of common stock under the DRIP, shares						1,008,075	1,391,831
Proceeds from Issuance of Common Stock, Dividend Reinvestment Plan						$ 9,485,000	$ 13,091,000
Selling commissions percentage									3.00%
Selling Commissions Expenses	$ 1,462,000	2,070,000
Maximum percentage of dealer manager fee	3.00%			3.00%
Percentage Of Dealer Manager Fee				1.00%					1.00%
Dealer Manager Fees	$ 493,000	733,000
Stockholder daily servicing fee percentage					1.00%
Maximum percentage of stockholder servicing fee			4.00%
Stockholder Servicing Fee Incurred	1,700,000	2,754,000
Stockholder Servicing Fee Payable	13,423,000		$ 12,611,000			$ 12,611,000	13,423,000		$ 13,423,000
Receivable from transfer agent	$ 1,158,000	$ 521,000					$ 1,158,000		$ 1,158,000
Stock Acquired Average Cost Per Share	$ 9.65					$ 9.45	$ 9.52
Stock Repuchased During Period Value Under the Share Repurchase Plan Value	$ 397,000					$ 735,000	$ 1,132,000
Common Class T [Member]
Number of shares of common stock, authorized to be issued	900,000,000		900,000,000			900,000,000	900,000,000		900,000,000
Par value of common stock to be offered and sold to the public	$ 0		$ 0			$ 0	$ 0		$ 0
Reallocated Maximum Amount Of Common Stock Issuable Under Primary Public Offering															$ 2,800,000,000
Share price															$ 10.00		$ 10.00
Subscriptions in offering of common stock received and accepted shares							46,532,759
Common stock, shares, issued	45,226,189		39,972,049			39,972,049	45,226,189		45,226,189
Common stock, shares outstanding	45,226,189		39,972,049			39,972,049	45,226,189		45,226,189
Maximum dollar amount of common stock issuable under public offering																	$ 3,000,000,000
Shares, Issued	20,833		20,833			20,833	20,833		20,833
Distribution Reinvestment Plan [Member]
Share price												$ 9.40					$ 9.50
Maximum dollar amount of common stock issuable under public offering																	$ 150,000,000
Class T and Class I Common Stock
Issuance of common stock under the DRIP, shares	383,756	113,147
Common Class I [Member]
Number of shares of common stock, authorized to be issued	100,000,000		100,000,000			100,000,000	100,000,000		100,000,000
Par value of common stock to be offered and sold to the public	$ 0		$ 0			$ 0	$ 0		$ 0
Reallocated Maximum Amount Of Common Stock Issuable Under Primary Public Offering															$ 200,000,000
Share price											$ 9.21	$ 9.21	$ 9.21		$ 9.30
Common stock, shares, issued	2,637,800		2,235,111			2,235,111	2,637,800		2,637,800
Common stock, shares outstanding	2,637,800		2,235,111			2,235,111	2,637,800		2,637,800
Maximum percentage of dealer manager fee	1.50%
Griffin American Advisor [Member] | Common Class T [Member]
Value of stock purchased																			$ 200,000
Advisor [Member]
Percentage Of Dealer Manager Fee	2.00%			2.00%
Two Thousand Fifteen Incentive Plan [Member] | Class T and Class I Common Stock
Share price																	$ 10.00
Share-based compensation arrangement by share-based payment award, number of shares authorized																		4,000,000
Two Thousand Fifteen Incentive Plan [Member] | Restricted Stock [Member]
Allocated Share-based Compensation Expense	$ 30,000	$ 14,000
Two Thousand Fifteen Incentive Plan [Member] | Restricted Stock [Member] | Re-elected or Newly Elected Independent Directors [Member]
Issuance of vested and nonvested restricted common stock, shares							37,500
Share based compensation arrangement by share based payment award equity instruments other than options vesting percentage																20.00%
Share based compensation arrangement by share based payment award equity instruments other than options vesting percentage on anniversary of grant date																20.00%
Subsequent Event [Member] | Distribution Reinvestment Plan [Member]
Share price										$ 9.65
Subsequent Event [Member] | Class T and Class I Common Stock
Subscriptions in offering of common stock received and accepted shares								48,784,089
Subsequent Event [Member] | Common Class I [Member]
Share price										$ 9.65
Limited Partner [Member]
Stockholders equity attributable to noncontrolling interest																			$ 2,000
Stock Issued During Period, Shares, Stock Splits		208	208
Total Stockholders’ Equity
Issuance of common stock under the DRIP	3,606,000	$ 1,063,000
Class T and Class I Common Stock
Issuance of common stock under the DRIP	$ 3,000	$ 1,000
Issuance of common stock, shares	5,314,261	7,609,328
Issuance of common stock under the DRIP, shares	383,756	113,147
Shares, Issued	47,863,989	19,099,914	42,207,160			42,207,160	47,863,989		47,863,989					11,377,439

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Equity Phantom (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Preferred Stock, Shares Authorized	200,000,000		200,000,000	200,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01	$ 0.01
Common Stock, Shares Authorized	1,000,000,000		1,000,000,000	1,000,000,000
Common stock, par value (usd per share)	$ 0.01		$ 0.01	$ 0.01
Selling Commissions Expenses	$ 1,462	$ 2,070
Common Class T [Member]
Common Stock, Shares Authorized	900,000,000		900,000,000
Common stock, par value (usd per share)	$ 0		$ 0
Shares, Issued	20,833		20,833
Limited Partner [Member]
Stock Issued During Period, Shares, Stock Splits		208	208

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Related Party Transactions - Additional Information (Detail)	1 Months Ended	3 Months Ended		12 Months Ended	13 Months Ended	20 Months Ended	26 Months Ended
	May 11, 2018	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)	Feb. 28, 2017	Sep. 30, 2017	Mar. 31, 2018 USD ($) Quarter	Apr. 11, 2018 $ / shares	Jan. 22, 2018 $ / shares	Dec. 31, 2017 USD ($)	Mar. 01, 2017 $ / shares	Jan. 23, 2017 $ / shares	Dec. 30, 2016	Jun. 17, 2016 $ / shares	Feb. 16, 2016 USD ($)
Related Party Transaction [Line Items]
Due to Affiliate		$ 2,975,000	$ 4,089,000
Condition Two: Percentage Of Operating Expense Of Net Income							25.00%
Maximum percentage of fees and expenses associated with the acquisition		6.00%	6.00%				6.00%
Maximum percentage of dealer manager fee		3.00%			3.00%
Percentage Of Dealer Manager Fee					1.00%		1.00%
Asset Management Fees		$ 958,000	$ 301,000
Minimum Investment Rate By Officer EVP										5.00%			5.00%
Maximum Investment Rate By Officer EVP										15.00%			15.00%
Due to Affiliate		8,146,000		$ 8,146,000			$ 8,146,000			$ 8,118,000
Base Acquisition Fee Paid [Member]
Related Party Transaction [Line Items]
Due to Affiliate		509,000	1,655,000
Contingent Advisor Payment Incurred [Member]
Related Party Transaction [Line Items]
Due to Affiliate		509,000
Due to Affiliate		7,760,000		7,760,000			7,760,000			7,744,000
Operating Expense [Member]
Related Party Transaction [Line Items]
Due to Affiliate		24,000	21,000
Due to Affiliate		9,000		9,000			$ 9,000			6,000
Subordinated Distribution Of Net Sales Proceeds [Member]
Related Party Transaction [Line Items]
Percentage of distribution of net proceeds from sale of properties							15.00%
Annual cumulative non compounded return on gross proceeds from sale of shares of our common stock							6.00%
Subordinated DistributionUpon Listing [Member]
Related Party Transaction [Line Items]
Distribution rate of common stock capital to advisor							15.00%
Annual cumulative non compounded return upon listing from sale of shares of common stock							6.00%
Subordinated Distribution Upon Termination [Member]
Related Party Transaction [Line Items]
Distribution rate of partnership amount to advisor							15.00%
Annual cumulative non compounded return upon termination of shares of our common stock							6.00%
Lease Commissions [Member]
Related Party Transaction [Line Items]
Due to Affiliate		0		$ 0			$ 0			8,000
Contingent Advisor amount paid [Member]
Related Party Transaction [Line Items]
Due to Affiliate		$ 6,416,000
Advisor [Member]
Related Party Transaction [Line Items]
Maximum Percentage Of Construction Management Fees							5.00%
Number Of Consecutive Fiscal Quarter For Reimbursement Measurement | Quarter							4
Condition One: Percentage Of Operating Expenses Of Average Invested Asset							2.00%
Condition Two: Percentage Of Operating Expense Of Net Income							25.00%
Percentage Of Dealer Manager Fee		2.00%			2.00%
Maximum percentage of other organizational and offering expense						1.00%
Maximum acquisition fee of contract purchase price for property we acquire							4.50%
Maximum acquisition fee of real estate-related investment purchase price we originate or acquire							4.25%
Base Acquisition Fee For Property Acquired		2.25%
Base acquisition fee for real estate related investment we acquire		2.00%
Contingent Advisor Payment Fee		2.25%					2.25%
Contingent Advisor Payment Holdback															$ 7,500,000
Imputed leverage on equity raise percentage as basis of acquisition fee		50.00%
Asset management fee percentage							0.80%
Percentage of property management oversight fee							1.00%
Percentage of property management oversight fee - gross monthly cash receipts							1.50%
Percentage of property management oversight fee - multiple tenants							1.50%
Minimum percentage of lease fee							3.00%
Maximum percentage of lease fee							6.00%
Disposition fees as percentage of contract sales price							2.00%
Disposition fees as percentage of customary competitive real estate commission							50.00%
Maximum percentage of disposition fee							6.00%
Operating Expense [Member]
Related Party Transaction [Line Items]
Percentage Of Operating Expenses Of Average Invested Assets				1.30%
Percentage Of Operating Expense Of Net Income				27.80%
Lease Commissions [Member]
Related Party Transaction [Line Items]
Due to Affiliate		$ 1,000	0
Property Management Fee [Member]
Related Party Transaction [Line Items]
Due to Affiliate		145,000	59,000
Reimbursement of acquisition expenses [Member]
Related Party Transaction [Line Items]
Due to Affiliate		0	1,000
Dealer manager fees [Member] | Contingent Advisor Payment Incurred [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction		1,011,000	1,496,000
Other organizational and offering expenses [Member] | Contingent Advisor Payment Incurred [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction		327,000	$ 556,000
Due to Affiliate		$ 7,760,000		$ 7,760,000			$ 7,760,000			$ 7,744,000
Common Class I [Member]
Related Party Transaction [Line Items]
Maximum percentage of dealer manager fee		1.50%
Share price | $ / shares									$ 9.21		$ 9.21	$ 9.21		$ 9.30
Subsequent Event [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Base Acquisition Fee For Property Acquired	2.25%
Contingent Advisor Payment Fee	2.25%
Subsequent Event [Member] | Common Class I [Member]
Related Party Transaction [Line Items]
Share price | $ / shares								$ 9.65

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Related Party Transactions - Related Party Description (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Board of Directors Chairman [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 118	$ 57
Issuance of common stock, shares	12,785	6,178
President [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 123	$ 60
Issuance of common stock, shares	13,305	6,423
Executive Vice President [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 123	$ 60
Issuance of common stock, shares	13,317	6,436
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 13	$ 0
Issuance of common stock, shares	1,405	0
Executive Vice President, Acquisitions [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 8	$ 8
Issuance of common stock, shares	869	842
Executive Officer [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 423	$ 234
Issuance of common stock, shares	45,804	25,099
Christopher M. Belford [Member] | Vice President, Asset Management [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 36	$ 47
Issuance of common stock, shares	3,890	5,055
Wendie Newman [Member] | Vice President, Asset Management [Member]
Related Party Transaction [Line Items]
Issuance of common stock	$ 2	$ 2
Issuance of common stock, shares	233	165

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Related Party Transactions - Schedule of Amount Outstanding to Affiliates (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Due to Affiliate	$ 8,146,000	$ 8,118,000
Contingent Advisor Payment Incurred [Member]
Related Party Transaction [Line Items]
Due to Affiliate	7,760,000	7,744,000
Asset And Property Management Fees [Member]
Related Party Transaction [Line Items]
Due to Affiliate	325,000	316,000
Operating Expense [Member]
Related Party Transaction [Line Items]
Due to Affiliate	9,000	6,000
Construction Management Fee [Member]
Related Party Transaction [Line Items]
Due to Affiliate	1,000	1,000
Property Management Fee [Member]
Related Party Transaction [Line Items]
Due to Affiliate	51,000	43,000
Lease Commissions [Member]
Related Party Transaction [Line Items]
Due to Affiliate	$ 0	$ 8,000

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Related Party Transactions Related Party Transactions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Asset Management Fees	$ 958,000	$ 301,000
Dealer manager fees [Member] | Contingent Advisor Payment Incurred [Member]
Related Party Transaction, Amounts of Transaction	1,011,000	1,496,000
Other organizational and offering expenses [Member] | Contingent Advisor Payment Incurred [Member]
Related Party Transaction, Amounts of Transaction	$ 327,000	$ 556,000

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Mar. 31, 2018		Dec. 31, 2017		Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage Loan Payable, Fair Value	$ 11,628,000		$ 11,819,000
Mortgage loans payable, net	11,483,000	[1]	11,567,000	[1]	$ 3,901,000	$ 3,965,000
Line of Credit Facility, Fair Value	62,294,000		84,088,000
Line of credit and term loan, net	$ 61,062,000		$ 82,644,000

[1] Such liabilities of Griffin-American Healthcare REIT IV, Inc. as of March 31, 2018 and December 31, 2017 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 Corporate Line of Credit, as defined in Note 7, held by Griffin-American Healthcare REIT IV Holdings, LP in the amount of $62,300,000 and $84,100,000 as of March 31, 2018 and December 31, 2017, respectively, which is guaranteed by Griffin-American Healthcare REIT IV, Inc.

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Income Taxes - Deferred Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Examination [Line Items]
Deferred Federal Income Tax Expense (Benefit)	$ (740,000)
Deferred State and Local Income Tax Expense (Benefit)	(153,000)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	893,000
Income Tax Expense (Benefit)	$ 0	$ 0

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Segment Reporting - Summary Information for Reportable Segments (Detail)		3 Months Ended
	Mar. 31, 2018 USD ($) segment	Mar. 31, 2018 USD ($) segment	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information Line Items
Number of Reportable Segments | segment	4	4
Assets by Reportable Segment
Total assets	$ 503,642,000	$ 503,642,000		$ 480,153,000
Revenues:
Real estate revenue		9,433,000	$ 4,052,000
Resident fees and services		8,409,000	0
Revenue, Net		17,842,000	4,052,000
Expenses:
Rental expenses		2,351,000	1,187,000
Property operating expenses		7,233,000	0
Segment net operating income (loss)		8,258,000	2,865,000
Operating Expenses
General and administrative		2,120,000	748,000
Acquisition related expenses		95,000	73,000
Depreciation and amortization		7,195,000	1,711,000
Other income (expense):
Interest expense (including amortization of deferred financing costs and debt premium)		(1,084,000)	(418,000)
Net loss		(2,236,000)	(85,000)
Medical Office Building [Member]
Assets by Reportable Segment
Total assets	260,388,000	260,388,000		262,260,000
Revenues:
Real estate revenue		6,944,000	3,671,000
Revenue, Net		6,944,000
Expenses:
Rental expenses		1,947,000	1,153,000
Segment net operating income (loss)		4,997,000	2,518,000
Senior Housing-RIDEA [Member]
Assets by Reportable Segment
Total assets	114,300,000	114,300,000		115,402,000
Revenues:
Real estate revenue		0
Resident fees and services		8,409,000
Revenue, Net		8,409,000
Expenses:
Rental expenses		0
Property operating expenses		7,233,000
Segment net operating income (loss)		1,176,000
Senior Housing [Member]
Assets by Reportable Segment
Total assets	98,807,000	98,807,000		98,519,000
Revenues:
Real estate revenue		2,288,000	381,000
Revenue, Net		2,288,000
Expenses:
Rental expenses		371,000	34,000
Segment net operating income (loss)		1,917,000	$ 347,000
Skilled Nursing Facilities [Member]
Assets by Reportable Segment
Total assets	23,438,000	23,438,000		0
Revenues:
Real estate revenue		201,000
Revenue, Net		201,000
Expenses:
Rental expenses		33,000
Segment net operating income (loss)		168,000
Other Segments [Member]
Assets by Reportable Segment
Total assets	$ 6,709,000	$ 6,709,000		$ 3,972,000

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Concentration of Credit Risk - Additional Information (Detail)		3 Months Ended
	Mar. 31, 2018 segment State	Mar. 31, 2018 segment State
Concentration of Credit Risk
Minimum Percent Share Of Each State Annualized Base Rent That Company Owned	10.00%	10.00%
Number of states with more than ten percent of tenant annual base rent | State	3	3
Number of Reportable Segments | segment	4	4
Number of tenants with more than ten percent of annual base rent	2	2
Minimum percent share of annualized base rent accounted by tenants	10.00%	10.00%
Medical Office Building [Member]
Concentration of Credit Risk
Percentage of annual base rent	59.40%	59.40%
Senior Housing-RIDEA [Member]
Concentration of Credit Risk
Percentage of annual base rent	17.80%	17.80%
Senior Housing [Member]
Concentration of Credit Risk
Percentage of annual base rent	17.80%	17.80%
Skilled Nursing Facilities [Member]
Concentration of Credit Risk
Percentage of annual base rent	5.00%	5.00%
FLORIDA
Concentration of Credit Risk
Percentage of annual base rent	17.80%	17.80%
NEVADA
Concentration of Credit Risk
Percentage of annual base rent	13.30%	13.30%
ALABAMA
Concentration of Credit Risk
Percentage of annual base rent	11.80%	11.80%

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Concentration of Credit Risk - Schedule of Annualized Base Rent from Tenants at Consolidated Properties (Detail)	3 Months Ended
	Mar. 31, 2018 USD ($) ft²
Annualized Base Rent From Tenants At Consolidated Properties [Line Items]
GLA (Sq Ft)	2,553,000
Colonial Oaks Master Tenant, LLC [Member]
Annualized Base Rent From Tenants At Consolidated Properties [Line Items]
Type Of Property Acquired	Senior Housing
GLA (Sq Ft)	215,000
Lease Expiration Date	Jun. 30, 2032
Annual Base Rent | $	$ 4,112,000
Percentage of annual base rent	11.60%
Prime Healthcare Services - Reno [Member]
Annualized Base Rent From Tenants At Consolidated Properties [Line Items]
Type Of Property Acquired	Medical Office
GLA (Sq Ft)	145,000
Annual Base Rent | $	$ 3,803,000
Percentage of annual base rent	10.80%

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Per Share Data (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic	$ 4,000	$ 2,000
Restricted Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	27,000	12,000
Redeemable Limited Partnership Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	208	208

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Subsequent Events Subsequent Events Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended	25 Months Ended	26 Months Ended	38 Months Ended
	May 11, 2018 Building Acquisition	Mar. 31, 2018	May 04, 2018 USD ($) shares	Mar. 31, 2018	Mar. 31, 2018 Building Acquisition
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition					19
Number of buildings acquired from unaffiliated parties | Building					42
Ownership Percentage, Properties		100.00%
Subsequent Event [Member]
Number of Acquisitions Completed from Unaffiliated Parties | Acquisition	2
Number of buildings acquired from unaffiliated parties | Building	2
Ownership Percentage, Properties	100.00%
Class T and Class I Common Stock | Subsequent Event [Member]
Subscriptions In Offering Of Common Stock Received And Accepted Shares | shares			48,784,089
Subscriptions in offering of common stock received and accepted value | $			$ 485,441
Advisor [Member]
Base Acquisition Fee For Property Acquired		2.25%
Contingent Advisor Payment Fee		2.25%		2.25%
Advisor [Member] | Subsequent Event [Member]
Base Acquisition Fee For Property Acquired	2.25%
Contingent Advisor Payment Fee	2.25%

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Subsequent Events - Summary of Acquisitions of Properties (Details) - USD ($)	1 Months Ended	38 Months Ended
	May 11, 2018	Mar. 31, 2018
Contract purchase price		$ 488,740,000
Sauk Prairie [Member] | Subsequent Event [Member]
Date acquired	Apr. 09, 2018
Contract purchase price	$ 19,500,000
Lines Of Credit Related To Acquisition Of Properties	19,500,000
Acquisition fee	$ 878,000
Surprise MOB [Member] | Subsequent Event [Member]
Date acquired	Apr. 27, 2018
Contract purchase price	$ 11,650,000
Lines Of Credit Related To Acquisition Of Properties	8,000,000
Acquisition fee	524,000
2018 Acquisitions [Member] | Subsequent Event [Member]
Contract purchase price	31,150,000
Lines Of Credit Related To Acquisition Of Properties	27,500,000
Acquisition fee	$ 1,402,000