Gramercy Property Trust Reports Third Quarter 2016 Financial Results

Gramercy Property Trust (NYSE:GPT) today reported financial results for the third quarter of 2016.

Operating Results:
         
($ in thousands, except per share data) Quarter Ended Nine Months Ended
(All per share amounts in this press release are presented on a diluted basis) September 30, September 30,
2016   2015 2016   2015
Net income (loss) to common shareholders $   (2,508 )   $   431 $   22,355   $   (2,947 )
Net income (loss) per common share $ (0.01 ) $ $ 0.05 $ (0.02 )
 
FFO available to common shareholders $ 60,775 $ 25,184 $ 205,391 $ 64,658
FFO per common share $ 0.14 $ 0.13 $ 0.48 $ 0.37
 
Core FFO available to common shareholders $ 76,596 $ 31,707 $ 242,097 $ 78,363
Core FFO per common share $ 0.18 $ 0.17 $ 0.57 $ 0.45
 
AFFO available to common shareholders $ 69,075 $ 26,750 $ 219,691 $ 66,662
AFFO per common share $ 0.16 $ 0.14 $ 0.51 $ 0.38
 

Highlights
  • Acquired sixteen properties in eleven separate transactions for an aggregate purchase price of approximately $264.8 million (6.8% initial cash cap rate; 7.3% annualized straight-line cap rate) with a weighted average remaining lease term of approximately 12.5 years at closing.
  • Disposed of three single and multi-tenant office buildings and one single-tenant industrial facility for aggregate gross proceeds of $206.7 million. The weighted average remaining lease term for the four sold properties was 10.1 years at closing and the blended exit cap rate was 7.4%.
  • Formed the Strategic Office Partners joint venture with TPG Real Estate by contributing six assets valued at $187.5 million, with a weighted average remaining lease term of 3.6 years at closing. The Company received a 25% interest in the joint venture.
  • Received a BBB issuer default rating with a stable outlook from Fitch Ratings.
  • Priced $350.0 million in senior unsecured notes, resulting in a weighted average maturity of 8.0 years and a weighted average fixed interest rate of 4.12%. The note sale is subject to finalization of documentation and is expected to close on December 15, 2016.
  • Narrowed full-year 2016 guidance for Core FFO to between $0.72 and $0.74, and for AFFO to between $0.66 and $0.68.
  • Declared a fourth quarter 2016 common share dividend of $0.125 per share, a 13.6% increase over the prior quarter.

Summary

Gramercy Property Trust (NYSE:GPT) today reported a net loss to common shareholders of $2.5 million, or $0.01 per diluted common share, for the three months ended September 30, 2016. For the quarter, the Company generated NAREIT defined FFO of $60.8 million, or $0.14 per diluted common share. The Company also reported Core FFO of $76.6 million, or $0.18 per diluted common share during the quarter. The Company generated adjusted funds from operations, or AFFO, of $69.1 million, or $0.16 per diluted common share during the quarter. A reconciliation of FFO, Core FFO and AFFO to net income available to common shareholders is included on page 8 of this press release.

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