This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gramercy Capital Corp. Files 2011 First And Second Quarterly Reports With The SEC - Company Returns To Current Financial Reporting

Stocks in this article: GKK

Gramercy Capital Corp. (NYSE: GKK) today reported results for the first and second quarters of 2011 in its quarterly reports on Form 10-Q with the U.S. Securities and Exchange Commission, or SEC, marking its return to current financial reporting. The Company filed its annual report on Form 10-K with the SEC on September 23, 2011.

FOURTH QUARTER 2010 THROUGH SECOND QUARTER 2011 HIGHLIGHTS

  • In September 2011, entered into a settlement agreement, or the Settlement Agreement, for an orderly transfer of substantially all of Gramercy Realty’s assets to the senior mezzanine lender for full satisfaction of the Company’s obligations with respect to the $240.5 million Goldman Mortgage Loan and $549.7 million Goldman Mezzanine Loans that matured on May 9, 2011 and, subject to certain termination provisions, an arrangement for the Company’s continued management of the transferred assets on behalf of the senior mezzanine lender for a fixed fee plus incentive fees.
  • For the six months ended June 30, 2011 and the year ended December 31, 2010, generated funds from operations, or FFO, of $57.2 million and negative FFO of $870.6 million, respectively, an increase of $20.8 million and a decrease of $453.0 million from FFO of $36.4 million and negative FFO of $417.6 million recorded for the six months ended June 30, 2010 and the year ended December 31, 2009, respectively. On a fully diluted per common share basis, FFO was $1.13 for the six months ended June 30, 2011 and negative $17.44 for the year ended December 31, 2010 as compared to FFO of $0.73 and negative $8.38 for the six months ended June 30, 2010 and for the year ended December 31, 2009, respectively. FFO for the year ended December 31, 2010 reflects a non-cash impairment charge of $912.1 million, or $18.27 on a fully diluted per common share basis, relating to the Company’s execution of the Settlement Agreement with respect to Gramercy Realty’s assets.
  • For the six months ended June 30, 2011 and the year ended December 31, 2010, net income (loss) to common stockholders was $20.4 million, or $0.40 per common diluted share, and $(968.8) million, or $(19.40) per common diluted share, respectively, as compared to the net income (loss) of $(18.10) million, or $(0.36) per diluted common share, and $(529.0) million, or $(10.61) per diluted common share, for the six months ended June 30, 2010 and the year ended December 31, 2009, respectively.
  • As of June 30, 2011 and December 31, 2010, respectively, maintained approximately $245.1 million and $275.8 million of corporate liquidity, which excludes cash held within the Gramercy Realty division, but includes other unrestricted cash and restricted cash available for investment in the Company’s CDOs. In addition, as of June 30, 2011, the Company holds an aggregate of $54.0 million of par value Class A-1, A-2 and B securities previously issued by the Company’s CDOs that are available for re-issuance. The fair value of the repurchased CDO bonds is approximately $42.1 million as of June 30, 2011.
  • As of June 30, 2011 and December 31, 2010, maintained $132.5 million and $185.8 million of unrestricted corporate cash as compared to $104.1 million and $104.8 million reported by Corporate as of June 30, 2010 and December 31, 2009, respectively.
  • During the six months ended June 30, 2011, repurchased $48.3 million of CDO bonds previously issued by the Company’s 2005-1 and 2006-1 CDOs, generating gains on early extinguishment of debt of $14.5 million.
  • During the six months ended June 30, 2011, originated or purchased five new loan investments in the Company’s CDOs deploying approximately $194.0 million of restricted cash within the Company’s CDOs. The origination and purchase activity compares to $113.8 million of originations during the year ended December 31, 2010.

“Our return to current financial reporting marks the culmination of many months of work negotiating the settlement agreement with Gramercy Realty’s lenders,” said Chief Executive Officer Roger M. Cozzi. “During this period of significant financial turbulence, now approaching four years, the Company has continually focused on preserving corporate liquidity and creating a stable, flexible balance sheet. The completion of the Realty settlement agreement has enabled the Company to emerge with a smaller asset base, a substantial liquidity position, no unfunded obligations and, most importantly, no recourse debt.”

1 of 14

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs