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Gramercy Capital Corp. Reports Fourth Quarter And Full Year 2012 Financial Results

Gramercy Capital Corp. (NYSE: GKK):

Announces Exit from Commercial Real Estate Finance Business

Announces Name Change to Gramercy Property Trust

Financing and Investing Highlights

  • For the quarter, net income (loss) to common stockholders from continuing operations was $(5.0) million, or $(0.09) per common share, an increase from $(11.4) million, or $(0.22) per common share, for the same quarter in the previous year. For the full year, net income (loss) to common stockholders from continuing operations was $(25.5) million, or $(0.49) per common share, as compared to $(28.1) million, or $(0.55) per common share, in the previous year.
  • The Company generated negative funds from operations, or FFO, of $126.8 million for the fourth quarter of 2012, a decrease of $302.3 million from FFO of $175.5 million generated in the same quarter of the previous year. On a per common share basis, FFO was negative $2.35 for the fourth quarter of 2012 as compared to FFO of $3.42 in the same quarter of the previous year. For the full year, FFO decreased to negative $157.8 million, or $3.04 per common share, from $395.3 million in the previous year, or $7.75 per common share. FFO includes a negative $149.3 million, or $2.69 per common share, for the quarter ended December 31, 2012 and a negative $169.2 million, or $2.95 per common share, for the year ended December 31, 2012, from discontinued operations related to the Company’s exit of the commercial real estate finance business.
  • On March 18, 2013, the Company completed the sale to transfer the collateral management and sub-special servicing agreements for its three Collateralized Debt Obligations, or CDOs, to CWCapital Investments LLC, or CWCapital, for approximately $9.9 million, less certain adjustments and closing costs.
  • Following the Company’s exit from the commercial real estate finance business, the Company will change its name to Gramercy Property Trust Inc. to better reflect the Company’s new business and strategy. The Company’s common stock will trade on the New York Stock Exchange under the ticker GPT effective as of April 15, 2013.
  • In March 2013, closed on the acquisition of an approximately 600,000 square foot class A industrial building located in Olive Branch, Mississippi (Memphis MSA), in an all-cash transaction for a purchase price of approximately $24.7 million.
  • Sold three properties from the Bank of America Portfolio Joint Venture during the first quarter of 2013, for net proceeds to the Joint Venture of approximately $9.2 million.
  • Ended year with cash and cash equivalents of $105.4 million. In February 2013, the Company sold a portfolio of repurchased notes previously issued by the Company’s 2006 and 2005 CDOs, generating cash proceeds of approximately $34.4 million. The Company’s current cash balance after taking into account the CDO sale and the purchase of the Memphis industrial property is approximately $118.0 million.

Summary

Gramercy Capital Corp. (NYSE: GKK) today reported negative FFO of $126.8 million, or $2.35 per common share, and net loss available to common stockholders from continuing operations of $(5.0) million, or $(0.09) per common share for the quarter ended December 31, 2012. The Company also reported negative FFO of $157.8 million, or $3.04 per common share, and net income available to common stockholders from continuing operations for $25.5 million, or $0.49 per common share for the full year ended December 31, 2012. FFO includes a negative $149.3 million, or $2.69 per common share, for the quarter ended December 31, 2012 and a negative $169.2 million, or $2.95 per common share, for the year ended December 31, 2012, from discontinued operations related to the Company’s exit of the commercial real estate finance business. The Company generated total revenues from continuing operations of $9.7 million during the fourth quarter, an increase of $0.5 million from $9.2 million generated during the prior quarter.

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