Griffin Capital Essential Asset REIT Reports 2016 Financial Results
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, announced its 2016 operating results.
Highlights and Accomplishments in 2016:
• Net income attributable to common stockholders was approximately $25.3 million for 2016, representing a 774.3 percent increase over the previous year.
• Total revenue was approximately $340.4 million for 2016, compared to $290.1 million for 2015.
• Modified funds from operations was approximately $149.9 million for the year, representing year-over-year growth of 16.5 percent for the same period in 2015.
• Funds from operations was approximately $159.5 million in 2016 compared to $99.1 million in 2015.
• Adjusted EBITDA was approximately $54.7 million for the fourth quarter of 2016 with a fixed charge and interest coverage ratio of 4.08 and 4.43, respectively.
• The total capitalization of the company’s portfolio was $3.3 billion, as of December 31, 2016.
• The weighted average remaining lease term was approximately 7.1 years with average annual rent increases of approximately 2 percent.
• The company’s debt to total real estate acquisition value as of December 31, 2016 was 48.7 percent.
• On March 29, 2016, the REIT exercised its right to increase the total commitments on its senior unsecured credit facility. As a result, the total commitments on the unsecured term loan increased from $640 million to $715 million.
• On April 27, 2016, the company acquired the remaining 90 percent beneficial ownership interest of Griffin Capital (Nashville) Investors DST for $41.3 million. The company issued approximately $11.9 million in limited partnership units to those investors who elected to exchange their ownership interest. The company consolidated the property, which is leased in its entirety to HealthSpring Inc., and recognized a gain of approximately $0.7 million.
Griffin Capital Essential Asset REIT, which invests in single tenant properties, owns a portfolio of 75 office and industrial properties totaling 18.8 million rentable square feet. The REIT closed in April 2014 and has raised approximately $1.4 billion in investor equity.
