Gramercy Capital Corp. Reports Third Quarter 2012 Financial Results
Loan prepayments, partial repayments and scheduled amortization payments in Gramercy Finance’s portfolio aggregated $87.9 million for the three months ended September 30, 2012. As of September 30, 2012, there are no unfunded commitments associated with existing loans.
First mortgage loans remain the majority of Gramercy Finance’s debt portfolio, decreasing to 82.5% at September 30, 2012, compared to 83.1% as of June 30, 2012. The weighted average remaining term of Gramercy Finance's debt investment portfolio as of September 30, 2012 was 2.1 years compared to 2.3 years in the prior quarter. The weighted average remaining term of Gramercy Finance's combined debt and CMBS portfolio as of September 30, 2012 was 3.1 years compared to 3.3 years in the prior quarter.
The aggregate carrying values, allocated by investment type, and weighted average yields of Gramercy Finance’s debt and CMBS investments, as of September 30, 2012 and December 31, 2011 were as follows (dollar amounts in thousands):
Carrying Value (1)
Allocation by Investment Type
Fixed Rate Average Yield
Floating Rate Average Spread over LIBOR (2)
|Whole loans, floating rate||$||583,468||$||689,685||63.4%||63.8%||-||-||348 bps||331 bps|
|Whole loans, fixed rate||175,642||202,209||19.1%||18.7%||8.45%||8.35%||-||-|
|Subordinate interests in whole loans, floating rate||2,588||25,352||0.3%||2.3%||-||-||250 bps||575 bps|
|Subordinate interests in whole loans, fixed rate||93,350||89,914||10.2%||8.3%||10.30%||10.50%||-||-|
|Mezzanine loans, floating rate||21,017||46,002||2.3%||4.3%||-||-||705 bps||860 bps|
|Mezzanine loans, fixed rate||42,897||23,847||4.7%||2.2%||10.87%||10.34%||-||-|
|Preferred equity, floating rate||-||3,615||0.0%||0.3%||-||-||0 bps||234 bps|
|Preferred equity, fixed rate||-||1,295||0.0%||0.1%||0.00%||0.00%||-||-|
|Subtotal/ Weighted average||918,962||1,081,919||100.0%||100.0%||9.30%||9.08%||360 bps||370 bps|
|CMBS, floating rate||35,090||47,855||3.9%||6.2%||-||-||172 bps||96 bps|
|CMBS, fixed rate||856,563||727,957||96.1%||93.8%||8.42%||8.22%||-||-|
|Subtotal/ Weighted average||891,653||775,812||100.0%||100.0%||8.42%||8.22%||172 bps||96 bps|
|$||1,857,731||100.0%||100.0%||8.65%||8.48%||350 bps||354 bps|
(1) Loans and other lending investments are presented net of unamortized fees, discounts reserves for loan losses, and other adjustments.
In September 2012, the Company, an affiliate of SL Green, and several other unrelated parties, recapitalized a portfolio of office buildings located in Southern California through the contribution of an existing preferred equity investment to a newly formed joint venture. The investment in the joint venture is held in the Company’s CDOs and had a carrying value of $10.4 million as of September 30, 2012.
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