Griffin Capital Essential Asset REIT II Reports Substantial Revenue and Net Income Growth in 2Q17
Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the second quarter of 2017.
“Our delivery of increased top and bottom line financial results for the second quarter validates our ongoing approach for combining highly selective acquisition activities with disciplined portfolio management skills,” said Michael Escalante, president of the REIT. “Our second quarter results underscore the strong tailwind we’re enjoying as we move forward under market and economic conditions that favor our REIT’s strategy.”
Highlights and Accomplishments for the Second Quarter of 2017:
• Net income attributable to common stockholders was approximately $3.4 million or $0.04 per basic and diluted share for the quarter ended June 30, 2017 compared to $2.8 million loss or ($0.06) per basic and diluted share for the same period in 2016.
• Total revenue for the quarter ended June 30, 2017 was approximately $26.5 million, representing year-over-year growth of 99 percent from the same period in 2016.
• Modified funds from operations was approximately $10.2 million for the quarter, representing year-over-year growth of approximately 150 percent for the same period in 2016.
• Funds from operations was approximately $14.3 million and $3.2 million for the quarters ended June 30, 2017 and 2016, respectively.
• Adjusted EBITDA was approximately $15.5 million for the quarter with a fixed charge and interest coverage ratio of 4.43 each.
• During the second quarter of 2017, the company acquired one property located in Carmel, Indiana for approximately $28.6 million. This property is leased on an absolute-net basis and in its entirety to Midcontinent Independent System Operator, Inc.
• As of June 30, 2017, the REIT’s debt to total real estate acquisition value was 42.3 percent.
• The total capitalization of the REIT’s portfolio was approximately $1.2 billion.
• The weighted average remaining lease term was approximately 10.9 years with average annual rent increases of approximately 2.4 percent.
• The portfolio is 100 percent leased and occupied.
Griffin Capital Essential Asset REIT II focuses on acquiring a portfolio consisting primarily of single tenant business essential properties throughout the United States, and has acquired 35 office and industrial buildings for approximately $1.1 billion.
The offering was declared effective by the SEC in July 2014 and closed in January 2017 after raising $746 million in investor equity. The REIT continues to raise equity through its distribution reinvestment plan, and as of the second quarter of 2017, raised $751 million, according to Summit Investment Research.
