Real estate management firm American Healthcare Investors has announced they have entered into irrevocable stock purchase plans applicable to Griffin-American Healthcare REIT IV. Griffin-American is a publicly registered, non-traded real estate investment trust co-sponsored by the firm and Griffin Capital Company.
The transaction involves AHI, its three founding principles, Jeff Hanson, Danny Prosky and Mathieu Streiff and the company's executive vice presidents. The new plans are practically identical to plans entered into by the executives in February 2016 and December 2016 in regards to Griffin-American Healthcare REIT IV.
In total, since 2008, executives and employees of American Healthcare Investors and Griffin Capital Company, who have participated in stock purchase plans or made additional investments independently of the plans, have invested more than $30 million in the three real estate investment trusts.
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"We share a fundamental belief that executives responsible for the management of an investment on behalf of stockholders should make considerable personal monetary investments that align their interests with those of the stockholders," said Hanson in a statement. "Over the course of our history, our executive team has proudly invested significant percentages of our individual net worth into the REITs we sponsor, an industry leading practice that should be the norm, rather than the exception."
Under the terms of the plans, Hanson, Prosky and Streiff have agreed to invest 100 percent of the net after-tax cash compensation, which includes base salary and annual bonus, they receive as executives of American Healthcare Investors directly into shares of Class I common stock of Griffin-American Healthcare REIT IV. Hanson serves as chairman of the board and chief executive officer of Griffin-American Healthcare REIT IV, Prosky serves as the REIT's president and chief operating officer and Streiff serves as its executive vice president and general counsel.
Additionally, the four executive vice presidents of American Healthcare Investors have also entered into similar stock purchase plans in which they will invest a portion of their net after-tax cash compensation, ranging from 5 percent to 15 percent, into shares of Class I common stock of Griffin-American Healthcare REIT IV.
The plans, as disclosed in a filing by Griffin-American Healthcare REIT IV with the U.S. Securities and Exchange Commission, will remain in effect until the end of 2018, as they must be renewed on an annual basis. All of the personnel who have entered into the stock purchase plans have said they intend to renew the plans on an annual basis until the close of the offering.