Griffin Capital Essential Asset REIT II Increases Total Revenue 67% in 3Q17

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

“Our third quarter results underscore the strong tailwind we are enjoying as we move forward under market and economic conditions that favor our REIT’s strategy,” said REIT president Michael Escalante. “We look forward to continuously enhancing shareholder value by delivering steady, consistent results through current income and long-term capital appreciation events.”

Highlights and Accomplishments for the Third Quarter of 2017:

• On September 20, 2017, the company commenced a follow-on offering consisting of up to $2.2 billion shares.

• Net income attributable to common stockholders was approximately $3.1 million or $0.04 per basic and diluted share for the quarter ended September 30, 2017, compared to $2.7 million loss or $(0.05) per basic and diluted share for the same period in 2016.

• Total revenue for the quarter ended September 30, 2017 was approximately $27.3 million, representing year-over-year growth of 67 percent from the same period in 2016.

• As of September 30, 2017, the company’s debt to total real estate acquisition value was 42.3 percent.

• Modified funds from operations was approximately $10.3 million for the quarter, representing year-over-year growth of approximately 65 percent for the same period in 2016.

• Funds from operations was approximately $14.3 million and $4.6 million for the quarters ended September 30, 2017 and 2016, respectively.

• Adjusted EBITDA was approximately $15.5 million for the quarter with a fixed charge and interest coverage ratio of 4.27 each.

• The total portfolio capitalization was approximately $1.2 billion.

• The weighted average remaining lease term was approximately 10.6 years with average annual rent increases of approximately 2.4 percent.

• The REIT’s portfolio is 100 percent leased and occupied.

• Approximately 82.7 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 credit ratings.

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 commenced a follow-on offering as a perpetual life REIT in September 2017.

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