Weekend Wrap: Gramercy Property Mixes It Up

A big REIT released its quarterlies late this week and the picture, despite a lot of recent activity, was mixed.

Ahead of its analyst call on Thursday, New York-based Gramercy Property Trust Inc. announced that it lost $1.3 million in the three-month period ending Sept. 30, recording a net loss to common stockholders of $0.02 per diluted common share.

 

After purchasing six properties for about $45 million, it ended the third quarter with cash and cash equivalents of $28.7 million, down from $49.0 million at the end of the previous quarter.

 

 

The company, however, is retooling, and its expenses are plummeting.   Its management expenses plummeted to $13.4 million in 2009's first nine months, from nearly $23 million in the year ago period. 

In March, Gramercy announced it was transitioning from a pure, net lease REIT and exiting the commercial real estate finance business.

Gramercy has historical links to Manhattan REIT giant SL Green Realty Corp., which sponsored predecessor Gramercy Capital Corp. as a commercial real estate lending and structured finance business in 2004.  OnApril 15, it changed its name to Gramercy Property Trust Inc. to begin trading as a net lease equity REIT.

Gramercy owns, directly or in joint venture, 86 industrial and office buildings totaling about four million square feet of office and 2.3 million square feet of industrial property.

It reports that since July 2012, it has purchased 132 properties, with more than 6.7 million square feet, for about $700 million.

In addition to the acquisitions, the company this quarter closed on a $100 million senior secured revolving credit facility with Deutsche Bank AG New York for an initial term of two years with an option for a one-year extension.

It also raised $47.4 million through the private placement of approximately 11.5 million shares of common equity at a price of $4.11 per share, which closed last month. 

The REIT also has a joint venture with Bank of America, which produced $900,000 in third-quarter revenue, and an asset management unit which had $8.3 million in revenue in the period.

It will resume paying dividends in the fourth quarter, and catch up with outstanding accrued payouts of $35.8 million.

 

 

 

 

 

comments powered by Disqus