Griffin Capital Essential Asset REIT II Reports Revenue Growth of 68.7 Percent in Third Quarter
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 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 of the REIT.
Third Quarter 2016 Financial and Operating Highlights:
• Net loss attributable to common stockholders was approximately $2.7 million or $0.05 per diluted share for the quarter. During the same period last year, net loss was $3.3 million or $0.18 per diluted share, according to a filing with the SEC.
• Total revenue for the quarter was approximately $16.3 million, representing year-over-year growth of 68.7 percent from the same period in 2015.
• Modified funds from operations, or MFFO, was approximately $6.2 million for the quarter. During the same period last year, MFFO was $3.3 million, representing year-over-year growth of 87.9 percent.
• According to Summit Investment Research, the REIT fully covered its 5.5 percent cash distribution in 3Q16 with a 109 percent MFFO distribution coverage ratio.
• Funds from operations, or FFO, was approximately $4.6 million for the quarter. In 3Q15, FFO was $2.1 million, representing year-over-year growth of 119 percent.
• As of September 30, 2016, the REIT raised approximately $618 million in its current offering of common stock.
• For the quarter, the company paid and declared distributions of approximately $7.8 million, including distributions reinvested through the distribution reinvestment plan.
• The debt to total real estate acquisition value as of September 30, 2016 was 30.7 percent.
• Acquired three properties for $140.5 million, located in three states.
• The total capitalization of the REIT’s portfolio was approximately $845.4 million.
• The weighted average remaining lease term was approximately 8.8 years with average annual rent increases of approximately 2.3 percent.
• The REIT’s portfolio is 100 percent occupied and leased.
Significant Events After September 30, 2016
• On October 25, 2016, the REIT acquired a property located in DeKalb, Illinois for a purchase price of approximately $69.4 million.
• On November 18, 2016, the REIT acquired a property in Pataskala, Ohio for a purchase price of approximately $88.9 million.
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 November 18, 2016, the REIT has acquired 30 office and industrial buildings totaling approximately 6.3 million rentable square feet and asset value of approximately $903.2 million.
