Griffin Capital Essential Asset REIT II, Inc., a publicly registered non-traded real estate investment trust, announced its year-end operating results for 2016.
“We’re very pleased that Griffin Capital Essential Asset REIT II has generated substantial revenue growth compared to a year ago, combined with significant enhancements to the company’s portfolio of properties through our acquisition of additional top quality commercial real estate leased to well-established global corporate tenants…,” said Kevin Shields, chairman and chief executive officer.
Highlights and Accomplishments in 2016:
• Total revenue for 2016 was approximately $62.8 million, representing year-over-year growth of 150 percent from the same period in 2015.
• Net loss attributable to common stockholders was approximately $6.1 million or $0.12 per basic and diluted share for 2016 compared to $17.2 million loss or $1.19 per basic and diluted share for the same period in 2015.
• Modified funds from operations was approximately $22 million for the year, representing year-over-year growth of approximately 284.4 percent for the same period in 2015.
• Funds from operations was approximately $21.8 million and ($5.2) million for 2016 and 2015, respectively.
• Adjusted EBITDA was approximately $12.7 million for the quarter with a fixed charge and interest coverage ratio of 5.25 each.
• As of December 31, 2016, the REIT raised approximately $704.5 million in its public offering of common stock.
• For the year ended December 31, 2016, the REIT paid and declared distributions of approximately $27.6 million, including distributions reinvested through the distribution reinvestment plan.
• The total capitalization of the company’s portfolio was approximately $1.2 billion.
• The weighted average remaining lease term was approximately 11.4 years with average annual rent increases of approximately 2.2 percent.
• The company’s portfolio is 100 percent leased and occupied.
• Approximately 87.7 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 ratings.
• During the fourth quarter of 2016, the REIT acquired four properties located in four states for approximately $333.8 million. These properties are leased on a triple-net basis and in their entirety to 3M Company, Amazon.com.dedc, LLC, Zoetis Services LLC, and Southern Company Services, Inc.
• As of December 31, 2016, the company’s debt to total real estate acquisition value was 42.7 percent.
• On November 22, 2016, we exercised our right to increase the total commitments on our revolving credit facility from $410 million to $550 million.
Significant Events Subsequent to December 31, 2016
• On January 31, 2017, the REIT acquired a 70,300-square-foot property for approximately $14.8 million in Lone Tree, Colorado. The property is currently leased on a triple-net basis to Allstate Insurance Company through November 2026.
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 January 31, 2017, The REIT has acquired 34 office and industrial buildings totaling approximately 7.2 million rentable square feet valued at approximately $1.1 billion.