Gramercy Capital Corp. Reports Fourth Quarter 2011 Financial Results

Gramercy Capital Corp. (NYSE: GKK):

FOURTH QUARTER HIGHLIGHTS
  • For the quarter, generated funds from operations (“FFO”) of $175.5 million, an increase of $179.5 million from FFO of $(4.0) million generated in the same quarter of the previous year. On a fully diluted per common share basis, FFO was $3.42 for the fourth quarter of 2011 as compared to FFO of $(0.08) in the same quarter of the previous year. For the year, FFO increased to $395.3 million, or $7.75 per diluted common share, from $53.3 million in the previous year, or $1.07 per diluted common share.
  • For the quarter, net income to common stockholders was $165.6 million, or $3.23 per common diluted share, an increase from net loss of $(955.5) million, or $(19.12) per diluted common share, for the same quarter in the previous year. For the year, net income to common stockholders was $330.3 million, or $6.48 per diluted common share, as compared to net loss of $(968.8) million, or $(19.40) per diluted common share in the previous year.
  • On September 1, 2011 and December 1, 2011, transferred to KBS Real Estate Investment Trust, Inc. or KBS, or its affiliates, interests in entities owning 317 and 116, respectively, of the 867 Gramercy Realty properties that the Company agreed to transfer pursuant to a collateral transfer and settlement agreement, or the Settlement Agreement. The remaining ownership interests were transferred to KBS by December 15, 2011. The aggregate carrying value for the interests transferred to KBS was approximately $2.63 billion.
  • Maintained approximately $163.7 million of unrestricted corporate cash at quarter end, as compared to approximately $154.5 million reported in the prior quarter. In addition, as of December 31, 2011, the Company holds an aggregate of $51.4 million of par value Class A-1, A-2 and B CDO securities previously issued by the Company’s CDOs with an aggregate fair value of $38.2 million.
  • In January 2012, sold a three-building commercial office complex for $34.0 million generating approximately $16.1 million in incremental unrestricted corporate cash.
  • Robert R. Foley announced that he will be stepping down as Chief Operating Officer and Secretary effective March 16, 2012.

SUMMARY

Gramercy Capital Corp. (NYSE: GKK) today reported funds from operations (“FFO”) of $175.5 million, or $3.42 per diluted common share, and net income available to common stockholders of $165.6 million, or $3.23 per diluted common share for the quarter ended December 31, 2011. The Company also reported FFO of $395.3 million, or $7.75 per diluted common share, and net income available to common stockholders of $330.3 million, or $6.48 per diluted common share for the year ended December 31, 2011. The Company’s results included a gain on extinguishment and settlement of debt of $157.4 million for the quarter ended December 31, 2011, or $3.07 on a fully diluted per common share basis, and $300.9 million for the year ended December 31, 2011, or $5.91 on a fully diluted per common share basis. The Company generated total revenues of $49.5 million during the fourth quarter, an increase of $4.5 million from $45.0 million generated during the same quarter of the previous year. The increase in revenues is primarily attributable to fee revenue generated from the Company’s continued management of transferred assets pursuant to a collateral transfer and settlement, or the Settlement Agreement, on behalf of KBS.

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