This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs