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

Stock quotes in this article: GKK

(GKK-EN)

Selected Financial Data:

   
 

Gramercy Capital Corp. Consolidated Statements of Operations and Comprehensive Income (Loss) (Dollar amounts in thousands, except per share data)

 

Three Months Ended December 31,

Year Ended

December 31,

  2012       2011     2012       2011  
 
Revenues:
Management fees $ 7,905 $ 6,211 $ 34,667 $ 7,336
Rental revenue 262 - 267 -
Investment income 301 - 600 -
Operating expense reimbursements 174 - 174 -
Other income   1,024     -     1,113     436  
Total revenues 9,666 6,211 36,821 7,772
 
Expenses:
Property operating expenses:
Property management expenses 5,275 7,249 21,380 10,099
Other property operating expenses   420     912     1,846     (4,152 )
Total property operating expenses 5,695 8,161 23,226 5,947
 
Depreciation and amortization 128 34 256 136
Management, general and administrative 4,042 7,172 25,335 22,150
Acquisition costs   111     -     111     -  
Total expenses   9,976     15,367     48,928     28,233  
 

Loss from continuing operations before equity in income (loss) from joint venture and provision for taxes

(310 ) (9,156 ) (12,107 ) (20,461 )
 
Equity in net income (loss) from joint venture   (2,992 )   31     (2,904 )   121  
 
Loss from continuing operations before provision for taxes (3,302 ) (9,125 ) (15,011 ) (20,340 )
 
Provision for taxes   48     (490 )   (3,330 )   (563 )
 
Net loss from continuing operations (3,254 ) (9,615 ) (18,341 ) (20,903 )
 
Net income (loss) from discontinued operations (149,253 ) 20,138 (169,174 ) 70,034
Gain on extinguishment of debt - 156,682 - 285,634
Net gains from disposals   3,919     178     15,967     2,712  
 
Net income (loss) from discontinued operations   (145,334 )   176,998     (153,207 )   358,380  
 
Net income (loss) attributable to Gramercy Capital Corp. (148,588 ) 167,383 (171,548 ) 337,477
 
Accrued preferred stock dividends   (1,792 )   (1,792 )   (7,162 )   (7,162 )
 
Net income (loss) available to common stockholders $ (150,380 ) $ 165,591   $ (178,710 ) $ 330,315  
 
Other comprehensive income:

Unrealized gain (loss) on available for sale securities and derivative instruments:

Unrealized holding gains (losses) arising during period $ 238,329   $ (203,850 ) $ 345,674   $ (280,154 )
 
Other comprehensive income (loss)   238,329     (203,850 )   345,674     (280,154 )
 
Comprehensive income (loss) attributable to Gramercy Capital Corp.   89,741     (36,467 )   174,126     57,323  
 
Comprehensive income (loss) attributable to common stockholders $ 87,949   $ (38,259 ) $ 166,964   $ 50,161  
 
Basic earnings per share:
Net loss from continuing operations, net of preferred stock dividends $ (0.09 ) $ (0.22 ) $ (0.49 ) $ (0.55 )
Net income (loss) from discontinued operations   (2.69 )   3.51     (2.95 )   7.13  
Net income (loss) available to common stockholders $ (2.78 ) $ 3.28   $ (3.44 ) $ 6.58  
 
Diluted earnings per share:
Net loss from continuing operations, net of preferred stock dividends $ (0.09 ) $ (0.22 ) $ (0.49 ) $ (0.55 )
Net income (loss) from discontinued operations   (2.69 )   3.51     (3.95 )   7.13  
Net income (loss) available to common stockholders $ (2.78 ) $ 3.28   $ (3.44 ) $ 6.58  
 
Basic weighted average common shares outstanding   54,120,499     50,532,836     51,976,462     50,229,102  
 

Diluted weighted average common shares and common share equivalents outstanding

  54,120,499     50,532,836     51,976,462     50,229,102  
         
 

Gramercy Capital Corp. Consolidated Balance Sheets (Dollar amounts in thousands, except per share data)

 
December 31, 2012 December 31, 2011
Assets:
Real estate investments, at cost:
Land $ 1,800 $ 2,241
Building and improvements 21,359 5,964
Less: accumulated depreciation   (50 )   (574 )
Total real estate investments, net 23,109 7,631
 
Cash and cash equivalents 105,402 163,725
Restricted cash 12 24
Loans and other lending investments, net 73 828
Investment in joint ventures 72,742 496

Assets held-for-sale, net (includes consolidated VIEs of $1,913,353 and $1,990,826, respectively)

1,952,264 2,078,146
 
Tenant and other receivables, net 4,123 1,820
Derivative instruments, at fair value - 6
Acquired lease assets, net of accumulated amortization of $42 and $0 4,386 73
Deferred costs, net of accumulated amortization of $2,033 and $2,137 415 1,891
Other assets   6,310     3,690  
Total assets $ 2,168,836   $ 2,258,330  
 
Liabilities and Equity (Deficit):
Liabilities:
Accounts payable and accrued expenses $ 8,908 $ 13,010
Dividends payable 30,438 23,276
Deferred revenue 33 569
Below-market lease liabilities, net of accumulated amortization of $4 and $0 458 -

Liabilities related to assets held-for-sale (includes consolidated VIEs of $2,374,516 and $2,654,109, respectively)

2,380,162 2,661,278
Other liabilities   665     627  
Total liabilities   2,420,664     2,698,760  
 
Commitments and contingencies - -
 
Equity (Deficit):

Common Class A-1, stock, par value $0.001, 100,000,000 shares authorized, 56,731,002 and 51,086,266 shares issued and outstanding at December 31, 2012 and 2011, respectively.

57 50

Common Class B-1, stock, par value $0.001, 2,000,000 shares authorized, 2,000,000 and 0 shares issued and outstanding at December 31, 2012 and 2011, respectively.

2

Common Class B-2, stock, par value $0.001, 2,000,000 shares authorized, 2,000,000 and 0 shares issued and outstanding at December 31, 2012 and 2011, respectively.

2

Series A cumulative redeemable preferred stock, par value $0.001, liquidation preference $115,000, 4,600,000 shares authorized, 3,525,822 shares issued and outstanding at December 31, 2012 and 2011.

85,235 85,235
Additional paid-in-capital 1,102,227 1,080,600
Accumulated other comprehensive loss (95,265 ) (440,939 )
Accumulated deficit   (1,344,989 )   (1,166,279 )
Total Gramercy Capital Corp. stockholders' equity (deficit) (252,731 ) (441,333 )
Non-controlling interest   903     903  
Total equity (deficit)   (251,828 )   (440,430 )
Total liabilities and equity (deficit) $ 2,168,836   $ 2,258,330  
     
 

Gramercy Capital Corp. Reconciliation of Non-GAAP Financial Measure (Unaudited, dollar amounts in thousands, except per share data)

 

Three months ended December 31,

Year ended December 31,

  2012       2011     2012       2011  
Net income (loss) available to common stockholders $ (150,380 ) $ 165,591 $ (178,710 ) $ 330,315
Add:
Depreciation and amortization 959 11,353 5,205 70,215
FFO adjustments for joint ventures 468 290 669 3,219
Non-cash impairment of real estate investments 26,698 14 35,043 1,296
Less:
Non real estate depreciation and amortization (595 ) (1,587 ) (4,059 ) (7,044 )
Gain on sale of real estate   (3,919 )   (176 )   (15,915 )   (2,713 )
Funds from operations $ (126,769 ) $ 175,485   $ (157,767 ) $ 395,288  
 
Funds from operations per share - basic $ (2.35 ) $ 3.47   $ (3.04 ) $ 7.87  
 
Funds from operations per share - diluted $ (2.35 ) $ 3.42   $ (3.04 ) $ 7.75  

The revised White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment write-downs of investments in depreciable real estate and investments in in-substance real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, or to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it entirely indicative of funds available to fund our cash needs, including our ability to make cash distributions. Our calculation of FFO may be different from the calculation used by other companies and, therefore, comparability may be limited.

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