Griffin Capital Essential Asset REIT Reports FFO Growth of 26 Percent Year-Over-Year
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the third quarter of 2016.
“We’re pleased to deliver another quarter of strong financial results,” said Michael Escalante, president and chief investment officer of the REIT. “We are proud of our team’s asset management efforts and we will continue to strive to provide positive results for our investors, through our approach as disciplined and results oriented real estate operators.”
Third Quarter 2016 Financial and Operating Highlights:
• Modified funds from operations, or MFFO, was approximately $39.8 million for the quarter, representing year-over-year growth of approximately 8 percent for the same period in 2015.
According to Summit Investment Research, the REIT covered its 6.75 percent distribution in 3Q16 with a 135 percent MFFO distribution coverage ratio.
• Funds from operations, or FFO, was approximately $41.9 million and approximately $33.1 million for the quarters ended September 30, 2016 and 2015, respectively. This represents year-over-year growth of 26.6 percent.
• Net income attributable to common stockholders was approximately $0.04 per diluted share for the quarter. For the same period last year, net income was approximately $0.01 per diluted share, according to a filing with the Securities and Exchange Commission.
• Total revenue for the quarter was approximately $85.8 million, representing year-over-year growth of approximately 4 percent for the same period in 2015.
• Approximately 71.7 percent of the portfolio’s net rental revenue was generated by properties leased to tenants and/or guarantors with investment grade ratings or whose non-guarantor parent companies have investment grade ratings.
• The total capitalization of the company’s portfolio as of September 30, 2016 was $3.3 billion.
• The company’s debt to total real estate acquisition value as of September 30, 2016 was 48.8 percent.
• The weighted average remaining lease term was approximately 7.1 years with average annual rent increases of approximately 2.0 percent.
Griffin Capital Essential Asset REIT, Inc. is a publicly-registered non-traded REIT with a portfolio, as of September 30, 2016, of 75 office and industrial distribution properties totaling 18.8 million rentable square feet with a total acquisition value of $3.0 billion.
