Griffin Capital Essential Asset REIT II Reports Second Quarter 2016 Results
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 2016.
As of June 30, 2016, the company’s portfolio consisted of 18 properties (25 buildings) totaling approximately 3.9 million square feet of space with a total acquisition value of $604.5 million.
“Our results for this quarter demonstrate the significant progress we have made in positioning the REIT to generate robust returns for shareholders,” said Michael Escalante, president of Griffin Capital Essential Asset REIT II. “By combining our expertise in strategic acquisitions with our focus on being disciplined real estate operators, we have built a portfolio with both solid distribution potential as well as long-term capital appreciation prospects, all while maintaining well-balanced debt to equity levels.”
According to Summit Investment Research, Griffin Capital Essential Asset REIT II fully covered its 5.50 percent cash distribution in the second quarter year-to-date with a 109 percent distribution coverage ratio. The REIT had 122 percent distribution coverage in 2015.
Results and Accomplishments for the Second Quarter of 2016:
• Total revenue was approximately $13.3 million during the second quarter, compared to $3.6 million for the same period in 2015.
• Net loss in the second quarter was $2.8 million, compared to a net loss of $9.8 million in the second quarter of 2015.
• Net loss attributable to common stockholders was approximately $0.06 per diluted share for the quarter.
• Acquired two properties for $89.5 million, located in two states. These properties are leased on a triple-net basis and in their entirety to NETGEAR Inc. and a Dow Jones component company.
• The total capitalization of the REIT’s portfolio was approximately $735.7 million.
• The weighted average remaining lease term was approximately 8.4 years with average annual rent increases of approximately 2.4 percent.
• Griffin Capital Essential Asset REIT II’s portfolio is 100 percent occupied and leased.
• Modified funds from operations was approximately $4.1 million for the second quarter
• Funds from operations was approximately $3.2 million.
• As of June 30, 2016, the company raised approximately $500 million in its current offering of common stock.
• The company paid and declared distributions of approximately $6.2 million, including distributions reinvested through the distribution reinvestment plan.
• The REIT’s debt to total real estate acquisition value as of June 30, 2016 was 37.8 percent.
Significant Events After June 30, 2016:
• On August 1, 2016, the REIT acquired a 283,300-square-foot property in Lincolnshire, Illinois for $60.2 million.
Griffin Capital Essential Asset REIT II commenced its initial public offering in July 2014 has raised $600 million in investor equity since inception. As of August 1, 2016, the company owned 26 buildings on 19 properties totaling approximately 4.1 million rentable square feet with a total capitalization of approximately $785.7 million.
