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Gramercy Capital Corp. Reports Second Quarter 2012 Financial Results

Stocks in this article: GKK

Gramercy Capital Corp. (NYSE: GKK):

SECOND QUARTER HIGHLIGHTS

  • Announced the conclusion of the Board of Directors’ strategic review process and the intention to remain independent and focus on deploying the Company's capital into income-producing net leased real estate.
  • Announced a new management team led by Gordon F. DuGan as the Company's Chief Executive Officer and a member of the Company's Board of Directors effective July 1, 2012.
  • For the quarter, generated funds from operations, or FFO, of negative $(18.6) million, a decrease of $4.8 million from FFO of negative $(13.8) million generated in the prior quarter. On a fully diluted per common share basis, FFO was negative $(0.37) for the second quarter of 2012 as compared to FFO of negative $(0.27) in the prior quarter. For the quarter, net loss to common stockholders was $(21.5) million, or $(0.42) per diluted common share, as compared to the net loss of $(2.1) million, or $(0.04) per diluted common share, for the prior quarter. The decrease in FFO for the quarter was primarily attributable to a charge of $2.3 million, or $0.05 per diluted common share, related to costs of the strategic review process and declining revenues and assets within the Gramercy Finance segment as repayments received on investments are directed to reduce liabilities outstanding.
  • Increased unrestricted corporate cash to $192.6 million at quarter end, as compared to approximately $186.3 million reported in the prior quarter. In addition, as of June 30, 2012, the Company holds an aggregate of $47.4 million of par value Class A-1, A-2 and B securities previously issued by the Company’s collateralized debt obligations, or CDOs, that are available for re-issuance. The fair value of the repurchased CDO bonds was approximately $37.9 million as of June 30, 2012.

SUMMARY

Gramercy Capital Corp. (NYSE: GKK) today reported FFO of negative $(18.6) million, or negative $(0.37) per diluted common share, and net loss available to common stockholders of $(21.5) million, or $(0.42) per diluted common share for the quarter ended June 30, 2012. The Company generated total revenues of $28.9 million during the second quarter, a decrease of $1.7 million from $30.6 million generated during the prior quarter. At June 30, 2012, the Company owned approximately $974.4 million of loan investments, $851.9 million of commercial mortgage–backed real estate securities, or CMBS, $192.6 million of unrestricted cash, commercial real estate with an aggregate book value of approximately $91.6 million and $112.5 million in other assets. As of June 30, 2012, approximately 43.8% of the Company’s assets were comprised of debt investments, 38.3% of CMBS, 8.7% of unrestricted cash, 4.1% of commercial real estate and 5.1% of other assets.

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