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On March 12, 2009, Gramercy Capital (GKK) reported that its Q4 FY08 funds from operations (FFO) increased 49.4% to $35.92 million from $24.05 million in the prior year's quarter. However, FFO per share remained flat at $0.69. Net income available to common stockholders plunged 59.3% to $9.44 million or $0.18 per share from $23.20 million or $0.67 per share, dragged down by a surge in depreciation expenses and provision for loan losses.
Total revenue spiked 94.9% to $165.36 million from $84.85 million a year ago, driven by strong rental revenue and operating expense reimbursements of $31.04 million. Investment income dropped 24.8% to $59.48 million from $79.12 million. Average yield on the debt instruments stood at 7.32%. Rental revenue surged significantly to $74.52 million from $2.26 million. Gain on sales and other income plunged 90.8% to $318,000 from $3.47 million in Q4 FY07.Provision for loan losses increased to $47.76 million from $2.75 million, relating to nine separate loans based on the company's quarterly review of its loan portfolio. During the quarter, new leases totaling 60,019 net rentable square feet commenced, while occupancy stood at 88.70% compared to 87.70% in the previous quarter. The company closed the sale of 46 properties including 24 held-for-sale properties for $65.10 million. Management recently decided not to pay any dividend on its common shares in order to boost liquidity. For FY08, total revenue soared 90.9% to $602.12 million from $315.44 million in the previous year. FFO for the year advanced 38.7% to $123.50 million from $89.06 million. On a per share basis, FFO declined 13.9% to $2.61 from $3.03. Furthermore, net income available to common stockholders plummeted 67.8% to $49.96 million $1.06 per share from $155.03 million $5.28 per share in FY07.