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Griffin Capital Essential Asset REIT II Increases Revenue by 108% Year-Over-Year

Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the first quarter of 2017.

“We are very pleased that Griffin Capital Essential Asset REIT II has generated substantial revenue growth as well as meaningful net income growth compared to a year ago,” said Kevin Shields, chairman and chief executive officer. “We have generated this financial performance by making significant enhancements to the company’s portfolio of properties through our acquisition of additional top quality commercial real estate leased predominantly to well-established global corporate tenants. As we move forward, we will continue to focus on generating net rental revenue based on tenants and guarantors with investment grade credit ratings.”

Highlights for the First Quarter of 2017:

• Net income attributable to common stockholders was approximately $3.1 million or $0.04 per basic and diluted share for the quarter ended March 31, 2017 compared to $1.1 million loss or ($0.03) per basic and diluted share for the same period in 2016.

• Total revenue for the quarter ended March 31, 2017 was approximately $26.0 million, representing year-over-year growth of 108 percent from the same period in 2016.

• Modified funds from operations was approximately $10.4 million for the quarter, representing year-over-year growth of approximately 174.7 percent for the same period in 2016.

• Funds from operations, or FFO, was approximately $13.6 million and $4.5 million for the quarters ended March 31, 2017 and 2016, respectively.

• Adjusted EBITDA was approximately $15 million for the quarter with a fixed charge and interest coverage ratio of 4.67 each.

• The total capitalization of the REIT’s portfolio was approximately $1.2 billion.

• The weighted average remaining lease term was approximately 11.1 years with average annual rent increases of approximately 2.4 percent.

• The portfolio is 100 percent leased and occupied.

• Approximately 79.2 percent of the portfolio’s net rental revenue was generated by properties leased to tenants and/or guarantors with investment grade credit ratings or whose non-guarantor parent companies have investment grade credit ratings.

• The primary public offering closed on January 20, 2017. From inception through the quarter ended March 31, 2017, the REIT had raised approximately $749.2 million of common stock. On April 6, 2017, the company filed a registration statement with the SEC for the registration of 3 million shares of common stock for sale through the distribution reinvestment plan.

• During the first quarter of 2017, the REIT acquired one property located in Colorado for approximately $14.8 million. This property is leased on a triple-net basis and in its entirety to Allstate Insurance Company.

• As of March 31, 2017, the firm’s debt to total real estate acquisition value was 42.1 percent.

Significant Events Subsequent to March 31, 2017

• On May 15, 2017, the REIT acquired a 133,400-square-foot property located in Carmel, Indiana for approximately $28.6 million, plus closing costs. This property is currently leased on an absolute-net lease basis to Midcontinent Independent System Operator Inc. through April 2028.

Griffin Capital Essential Asset REIT II invests in single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. As of May 17, 2017, the REIT has acquired 35 office and industrial buildings totaling approximately 7.3 million rentable square feet valued at approximately $1.1 billion. As of March 31st, the company had raised approximately $749.2 million in investor equity.

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