Griffin Capital Essential Asset REIT Increases 2Q17 Net Income by 42% Year-Over-Year
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the second quarter of 2017.
“. We’ve maintained our longstanding focus on having a strong balance sheet, while generating stable rental revenues from investment grade tenants and guarantors in long-term lease agreements,” said Kevin Shields, chairman and chief executive officer. “Looking ahead, we’re confident that macro drivers in the markets and domestic economy, particularly with respect to rising valuations for the types of commercial properties that comprise our portfolio of assets, position the REIT well for the future.”
Second Quarter 2017 Highlights:
• Net income attributable to common stockholders was $8.8 million or $0.05 per basic and diluted share for the second quarter 2017, compared to $6.2 million or $0.04 per basic and diluted share for the second quarter of 2016.
• Total revenue was $82.8 million for the second quarter of 2017, compared to $86.6 million for the same period last year. The company noted that the change in total revenue was due to lower occupancy.
• Modified funds from operations was approximately $39 million for the second quarter, compared to approximately $37.2 million for the same period in 2016.
• Funds from operations was approximately $35.4 million and $38.1 million for the quarters ended June 30, 2017 and 2016, respectively.
• Adjusted EBITDA was approximately $56.6 million for the second quarter of 2017 with a fixed charge and interest coverage ratio of 3.98 and 4.55, respectively.
• The total capitalization of the REIT’s portfolio was $3.3 billion, as of June 30, 2017.
• The weighted average remaining lease term was approximately 6.9 years with average annual rent increases of approximately 2.0 percent.
• Approximately 72.0 percent of our 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 REIT executed new and renewal leases totaling 175,998 square feet, including a 10-year lease renewal with Comcast Cable Communications for 87,385 square feet in Seattle and a new 11-year lease with Green Apple Management Company for 83,500 square feet in Philadelphia.
• The debt to total real estate acquisition value as of June 30, 2017 was 48.7 percent.
Griffin Capital Essential Asset REIT, which went effective in November 2009, oversees a $3.3 billion portfolio of 74 office and industrial properties totaling 18.8 million rentable square feet. The REIT closed in April 2014 and has raised approximately $1.5 billion in investor equity since inception, according to Summit Investment Research.
