Home Alts News Griffin Capital Essential Asset REIT Reports 15% Net Income Increase

Griffin Capital Essential Asset REIT Reports 15% Net Income Increase


Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the quarter ended March 31, 2017.

“We are pleased with our financial results for this quarter. By maintaining strong balance sheet fundamentals and generating rental revenues from investment grade tenants and guarantors in long-term lease agreements, we have positioned the REIT to continue to deliver shareholder value through ongoing income as well as longer term capital appreciation events,” said Michael Escalante, president and chief investment officer. “Looking ahead, broader market and economic trends suggest continued valuation increases for top quality commercial properties in fast-growing metropolitan markets.”

First Quarter 2017 Highlights:

• Net income attributable to common stockholders was $13.7 million for the first quarter of 2017, representing a 15.4 percent increase over the previous year.

• Total revenue, including termination fees, was $96.7 million for the first quarter of 2017, compared to $86.7 million year-over-year. For the first quarter of 2017, the REIT recognized $12.8 million of termination fees related to a lease modification which resulted in an early lease termination during the quarter.

• Modified funds from operations was approximately $38.2 million for the quarter, compared to approximately $39.9 million for the same period in 2016.

• Funds from operations, or FFO, was approximately $51.2 million and $44.4 million for the quarters ended March 31, 2017 and 2016, respectively.

• Adjusted EBITDA was approximately $58.2 million for the quarter with a fixed charge and interest coverage ratio of 4.31 and 4.72, respectively.

• The debt to total real estate acquisition value as of March 31, 2017 was 48.6 percent.

• The total capitalization of the REIT’s portfolio as of March 31, 2017 was $3.3 billion.

• The weighted average remaining lease term was approximately 6.9 years with average annual rent increases of approximately 2 percent.

• Approximately 70.1 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.

• Executed new and renewal leases totaling 241,887 square feet, including a 10-year lease with United HealthCare for 191,415 square feet.

Griffin Capital Essential Asset REIT, which went effective in November 2009, oversees a $3.3 billion portfolio of 75 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.

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