Griffin Capital Essential Asset REIT Reports 3Q15 Results
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the quarter ended September 30, 2015.
As of the end of the quarter, the Essential Asset REIT’s portfolio consisted of 72 assets encompassing approximately 17.3 million square feet of space in 20 states with a total acquisition value of approximately $3.0 billion.
Highlights and Accomplishments in the Third Quarter of 2015 and Results as of September 30, 2015:
Modified funds from operations, or MFFO, was approximately $36.9 million for the quarter, representing year-over-year growth of approximately 121 percent for the same quarter in 2014. Funds from operations, or FFO, was approximately $33.1 million and $13.8 million for the quarters ended September 30, 2015 and 2014, respectively.
Approximately 66.5 percent of the portfolio’s net rental revenue was generated by investment grade-rated companies.
Total acquisition value and portfolio square footage increased by approximately 51 percent and 33 percent, respectively, since December 31, 2014. The total capitalization of the company’s portfolio as of September 30, 2015 was approximately $3.3 billion.
The weighted average remaining lease term was approximately 7.5 years with average annual rent increases of approximately 2.1 percent.
On July 20th, the REIT entered into a $1.14 billion senior unsecured credit facility, which may be increased up to $2.0 billion. At closing, the existing $800.0 million unsecured credit facility was retired in full.
On July 21st, the REIT acquired a five-building office campus located in Glendale, California, leased to DreamWorks Animation SKG, Inc. on an absolute triple-net basis, at a purchase price of $215.0 million.
On August 7th, the REIT sold the Will Partners property located in Monee, Illinois, for $22.0 million.
On August 15, 2015, the joint venture development project with WRRH Patterson LLC, consisting of approximately 1.5 million square feet, was considered substantially complete. The property is a warehouse and distribution facility leased to Restoration Hardware Inc. and Restoration Hardware Holdings Inc.
Significant Events After September 30, 2015:
On October 22nd, the board of directors approved an estimated value per share of common stock of $10.40, based on the estimated value of assets less the estimated value of liabilities, or net asset value, divided by the number of shares outstanding on a fully diluted basis as of September 30, 2015.
On November 5th, the company redeemed the remaining outstanding preferred units with an affiliate of Starwood Property Trust, under which Starwood previously provided a $250 million equity investment.
Griffin Capital Essential Asset REIT, Inc. is a publicly-registered non-traded REIT with a portfolio of 72 office and industrial distribution properties totaling approximately 17.3 million rentable square feet, located in 20 states, representing total REIT capitalization of approximately $3.3 billion. The REIT’s sponsor, Griffin Capital Corporation, is a privately-owned investment and asset management company headquartered in Los Angeles. Griffin Capital and its affiliates have acquired or constructed approximately 43 million square feet of space since 1995. 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, and 0.1 million square feet located in the United Kingdom, representing approximately $4.8 billion in asset value.
