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Griffin Capital Essential Asset REIT Reports 2Q15 Results

Griffin Capital Essential Asset REIT, Inc., a publicly registered non-traded real estate investment trust sponsored by Griffin Capital Corp., announced its operating results for the second quarter 2015. 

As of June 30, 2015, the REIT’s portfolio consisted of 71 assets encompassing approximately 16.1 million square feet of space in 20 states with a total acquisition value of approximately $2.7 billion, including 80 percent of the acquisition value of the real estate held in a joint venture. 

Highlights and Accomplishments in the Second Quarter of 2015:

• The company acquired a five-story office building in Houston, Texas for $77 million.

• On June 10, 2015, the company consummated a merger with Signature Office REIT, Inc., and each share of Signature Office common stock was converted into 2.04 shares of Griffin Capital Essential Asset REIT common stock. As a result, Griffin Capital Essential Asset REIT issued approximately 41.8 million shares of common stock, and assumed 13 properties consisting of 15 buildings, located in eight states, comprising approximately 2.6 million square feet, with a combined preliminary value of $607.1 million.

• As of June 30, 2015, approximately 73 percent of the portfolio’s net rental revenue was generated by investment grade-rated companies.

• As of June 30, 2015, the total acquisition value and portfolio square footage increased by approximately 35 percent and 24 percent, respectively, since December 31, 2014. The total capitalization of the portfolio as of June 30, 2015 was approximately $3.1 billion.

• As of June 30, 2015, the weighted average remaining lease term was approximately 6.8 years with average annual rent increases of approximately 2.1 percent.

• Modified funds from operations to common stockholders as defined by the Investment Program Association was approximately $26.5 million for the quarter, representing year-over-year growth of approximately 81 percent for the same quarter in 2014. Funds from operations as defined by the National Association of Real Estate Investment Trusts, was approximately $1.4 million and $3.3 million for the quarters ended June 30, 2015 and 2014, respectively. 

Significant Subsequent Events

• On July 20, 2015, the REIT entered into a $1.14 billion senior unsecured credit which may be increased up to $860.0 million for a maximum of $2.0 billion. At closing, the existing $800 million unsecured credit facility was retired in full.

• On July 21, 2015, the company acquired a five-building office campus, totaling approximately 459,800 square feet, located in Glendale, California. The acquisition value of the property was $215 million. The property is leased on an absolute triple-net basis to DreamWorks Animation SKG, Inc. obligating the tenant to all operating and maintenance expenses.

• On August 7, 2015, the company sold the Will Partners property in Monee, Illinois for $22 million. The company recognized a gain of approximately $3.3 million, net of closing costs and other closing credits.

• As of August 15, 2015, total acquisition value and portfolio square footage increased by approximately 45 percent and 22 percent, respectively, since December 31, 2014. The total capitalization of the portfolio as of August 15, 2015 is approximately $3.3 billion.

• As of August 15, 2015, the weighted average remaining lease term is approximately 7.4 years.

Griffin Capital Essential Asset REIT, Inc. is a publicly-registered non-traded real estate investment trust with a portfolio of 71 office and industrial distribution properties totaling approximately 15.8 million rentable square feet, located in 20 states, representing total REIT capitalization of approximately $3.3 billion, as of August 15, 2015. The REIT’s sponsor, Griffin Capital Corporation is a privately-owned investment and asset management company headquartered in Los Angeles. As of August 15, 2015, Griffin Capital and its affiliates currently own, manage, sponsor and/or co-sponsor a portfolio consisting of approximately 27 million square feet of space, located in 29 states, representing approximately $4.8 billion in asset value.