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. Reports Third Quarter 2012 Financial Results

The Company recorded a reduction in its net provision for loan losses of approximately negative $(16.4) million, or $(0.31) per diluted common share, for the quarter ended September 30, 2012 which included additional provisions of $1.5 million, offset by reversals of provisions of approximately $17.9 million due to improved credit of certain underlying collateral. By comparison, the Company’s net provision for loan loss was approximately $6.0 million, or $0.12 per fully diluted common share, for the prior quarter. The Company’s reserve for loan losses at September 30, 2012 was approximately $79.2 million, or approximately 25.1% of the unpaid principal balance, in connection with 8 separate loans with an aggregate carrying value of approximately $238.4 million. In addition, the Company recorded non-cash impairment charges for the three months ended September 30, 2012 of approximately $15.4 million related to nine CMBS investments deemed to be other-than-temporarily impaired with an aggregate carrying value of $77.5 million.

Substantially all of the Company’s debt investments and CMBS investments are owned in one or more of the Company’s three CDOs, except for the Company’s $19.3 million mezzanine loan to KBS in connection with the execution of the purchase agreement for the Bank of America Portfolio by the Company’s joint venture. As of September 30, 2012, debt investments owned by Gramercy Finance had an aggregate carrying value of approximately $919.0 million, net of loan loss reserves, impairments, unamortized fees and discounts totaling approximately $107.0 million. CMBS investments had an aggregate carrying value of approximately $891.7 million as of September 30, 2012, net of impairments, unamortized fees, fair value adjustments and discounts of approximately $300.8 million. The Company’s CMBS investments are classified as available-for-sale and accordingly, such CMBS investments are carried at fair value. Changes in fair value are not necessarily indicative of current or future changes in cash flow, which are based on actual delinquencies, defaults and sales of the underlying collateral, and therefore are not recognized in earnings. Changes in fair value are reflected in accumulated other comprehensive loss in the equity section of the Condensed Consolidated Balance Sheet. The Company continues to monitor all of its CMBS investments for other-than-temporary impairments. The fair value adjustment for the Company’s CMBS investments as of September 30, 2012 was approximately $(79.9) million as compared to a fair value adjustment of $(146.4) million in the preceding quarter.

8 of 17

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!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

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