Gramercy Property Trust Inc. (GPT)

[renaudandco]

....page 33 of the investor update from 7-17 says they're targeting a credit facility in early q3 2013....i would think that means the first month of the q or at least the first half, thoughts?....

[detearing]

GPT been in a channel since April...looks like it was trending to breakout then talks of stimulus easing caused housing and also reits to pull back....gpt seems to not be beaten up to bad on the latest trend to break 5.5

I have high hopes for gpt and can see it perform similar to CBG. Break above 5.5 can soar ro 20s in six months...

[Olmsted]

BTS = "build to suit"

Check out transaction details on slide 16.

[detearing]

Could not find out what they mean by that term...I like what I see, esp. FedEx as their tenant in some locations.

[renaudandco]

....expect to have a credit facility in early Q3 2013....any day now i suppose....

[renaudandco]

....very interesting update as of yesterday....slide 36 mentions something called 'preferred freezer BTS'....what is that exactly?

[Enterprising Investor]

Investor Update July 2013 (7/16/13)

http://www.sec.gov/Archives/edgar/data/1287701/000114420413039645/v350078_ex99-1.htm

[Enterprising Investor]

Gramercy Property Trust Acquires Four Facilities for a Total Purchase Price of Approximately $82 Million (7/01/13)

Gramercy Property Trust Inc. (NYSE: GPT) announced today that it has closed on four acquisitions: a wholesale automotive auction facility in Dallas, Texas, an industrial cold storage facility in Southern New Jersey and two cross-dock truck terminals located in Houston, Texas and Orlando, Florida.

The wholesale automotive auction facility is located on a 175-acre land parcel in Hutchins, Texas (Dallas MSA), approximately 2.5 miles from the I-20 and I-45 interchange and approximately two miles from the Dallas Intermodal Terminal (DIT). The property is a fully integrated, state-of-the-art automotive auction facility 100% leased through June 2029 to one of the largest wholesale car auction companies in North America. Year 1 net operating income is approximately $4.9 million (8.4% initial cap rate), with fixed annual rent escalations throughout the lease term. The facility was acquired for approximately $58.5 million including the assumption of a $26.3 million, fully-amortizing first mortgage that is co-terminus with the lease. The loan has a fixed rate of 6.95%.

The industrial freezer/cooler facility is a newly constructed 70,000 square facility located in Logan Township, New Jersey (Philadelphia MSA), approximately eight miles from the New Jersey Turnpike and I-295 interchange. The building is 100% leased through May 2028 to one the largest wholesale distributors of natural, organic and specialty foods in North America. Year 1 net operating income is approximately $736,000 (6.2% initial cap rate), with fixed annual rent escalations throughout the lease term. The facility was acquired in an all-cash transaction for a purchase price of approximately $11.8 million.

The Houston terminal has 189 dock doors and is located on approximately 33 acres off the I-610 loop and 1.5 miles from the I-10 interchange. The Houston Terminal is leased through May 2019. The Orlando terminal has 72 dock doors and is located on approximately 15 acres one mile from Highway 528 and Highway 91 interchange and eight miles from the Orlando International Airport. The Orlando terminal is leased through January 2019. The terminals are both 100% leased to a leading national less-than-truckload (LTL) carrier under separate leases. Year 1 aggregate net operating income from the two terminals is approximately $952,000 (8.0% initial cap rate), with rental escalations every 12 months based upon the increase in CPI, subject to a minimum increase. The two cross-dock truck terminals were acquired in a single all-cash transaction for a total purchase price of approximately $12.0 million.

Gordon F. DuGan, Chief Executive Officer of Gramercy Property Trust, commented, “We’ve had a very busy second quarter 2013, closing $131. million in new acquisitions and adding a number of high quality net leased assets to the portfolio. Our investments during the second quarter had an average lease term of 15.1 years and an average cap rate of 8.0% (cash) / 9.0% (GAAP). We are extremely pleased with the pace and quality of transactions we are able to source and close and continue to focus on building a best-in-class, net lease portfolio.”

About Gramercy Property Trust

Gramercy Property Trust Inc. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint ventures, 105 assets totaling approximately 6 million square feet, net leased on a long-term basis to high quality corporate tenants, in a variety of industries. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.9 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 212-297-1000.

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Gramercy Property Trust Inc.

Jon W. Clark, Chief Financial Officer, 212-297-1000

or

Emily Pai, Investor Relations, 212-297-1000

[Enterprising Investor]

Gramercy Property Trust Acquires Cross-Dock Truck Terminals in Long Island, NY and Baltimore, MD for Approximately $9.8 Million (6/24/13)

NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust Inc. (NYSE: GPT) announced today that it has closed on the acquisition of two cross-dock truck terminals for a total purchase price of $9.8 million. The terminals were acquired in separate all-cash transactions.

The first terminal has 54 dock doors and is located on approximately five acres in Deer Park, New York, approximately four miles from I-495/Long Island Expressway in Nassau County. The Long Island Terminal is leased through December 2019 to a leading national less-than-truckload (LTL) carrier. Year 1 net operating income will equal approximately $298,000 (7.6% initial cap rate), with annual rental escalations based upon the increase in CPI, subject to a minimum increase.

The second terminal has 61 dock doors and is located on approximately 10.5 acres in Elkridge, Maryland, one mile from I-95 and three miles from the Baltimore Washington International Airport. The Elkridge terminal is leased through May 2019 to a leading Northeastern regional LTL carrier. Year 1 net operating income will equal approximately $496,000 (8.3% initial cap rate), with rental escalations every 18 months based upon the increase in CPI, subject to a minimum increase.

About Gramercy Property Trust

Gramercy Property Trust Inc. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint ventures, 106 buildings totaling approximately 4.0 million square feet of office and 1.9 million square feet of industrial, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.9 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 212-297-1000.

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Property Trust Inc.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130624005523/en/Gramercy-Property-Trust-Acquires-Cross-Dock-Truck-Terminals

[squeedunque]

New board starting up on Yahoo. Hope some of you participate.

SQ

[Enterprising Investor]

Gramercy Property Trust Acquires Industrial Properties in Miami FL and Philadelphia, PA for Approximately $30 Million and Announces the Sale of the Defeasance Collateral Pool (6/05/13)

NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust Inc. (NYSE: GPT) announced today that it has closed on the acquisition of a build-to-suit of an approximately 120,0000 square foot industrial facility located in Hialeah, Gardens, Florida in the Miami Metropolitan Statistical Area. The newly constructed cold storage facility will be 100% leased to a leading public refrigerated warehousing company for an initial term of 25 years which will commence upon completion of construction, expected to occur in the second quarter of 2014. The state-of-the-art, temperature-controlled warehouse will feature 20,000 pallet positions, eight inch concrete tilt-walls with 60 foot clear heights. Total construction costs will be approximately $25.0 million, and the acquisition is expected to generate GAAP net operating income of approximately $2.3 million per year, when the lease commences.

In addition, the Company recently closed on the acquisition of an approximately 62,230 square foot industrial property located in Bellmawr, New Jersey, in an all-cash transaction for a purchase price of approximately $4.2 million. The building is 100% leased to a single tenant through October 31, 2022.

Lastly, the Company’s Bank of America joint venture with Garrison Investment Group recently sold a mortgage loan defeasance pool of securities that was acquired by the joint venture in December 2012 when it purchased the Bank of America portfolio.

About Gramercy Property Trust

Gramercy Property Trust Inc. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint ventures, 106 buildings totaling approximately 4.0 million square feet of office and 1.8 million square feet of industrial, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.9 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 212-297-1000.

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Property Trust Inc.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130605005370/en/Gramercy-Property-Trust-Acquires-Industrial-Properties-Miami

[Country Lawyer]

3.28% is not a bad rate! Longer term might have been nice, but at last it is additional capital that can be leveraged. Compare it to 8.25% for the Pref, even though the effective cost is nearer 6%, it still reflects the cost of money for the company is pretty good all things considered. I wonder if the Annual Meeting will have any more good news.

[Enterprising Investor]

Gramercy Property Trust Secures $14.5 Million Senior Mortgage Financing with Northwestern Mutual (5/24/13)

NEW YORK--(BUSINESS WIRE)--Gramercy Property Trust Inc. (NYSE: GPT) announced today it has closed a $14.5 million senior mortgage financing with Northwestern Mutual Real Estate Investments, LLC. The 3.28% five-year, fixed-rate loan is secured by the Company’s previously acquired 540,000 square foot industrial portfolio located in the Indianapolis metropolitan area.

Company Profile

Gramercy Property Trust Inc. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint ventures, 105 buildings totaling approximately 4.0 million square feet of office and 1.7 million square feet of industrial, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.9 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gptreit.com or contact Investor Relations at 212-297-1000.

(GKK-EN)

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the implementation of the new business strategy, the integration of the new management team, the results of the operational review and those factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Property Trust Inc.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130524005023/en/Gramercy-Property-Trust-Secures-14.5-Million-Senior

[bobdbeck]

A lot of time. Owned them both for about 2 years when the market crashed. You all know how NCT has recovered and surged ahead. GKK has been a major disappointment. Management has been a disaster for many years. It's easy to blame them as most of the other REITs that almost went belly up after the 2008 debacle have recovered to various extents. I've put GPT back on my watch list hoping for the preferred payment news. GLTY

[bobdbeck]

Squeedunque: Thanks for the compliment. I joined here a long time ago but never really posted. Have been out of GPT (GKK) for almost 3 years. Got lucky on the preferreds which evened out my losses on the common. Put all the GKK $$ into my NCT position at the time and if I must say, one of my better stock investments in over 50 years in the market. I haven't been following GPT much as I have no skin in the game now but I have put it on my watch list as I feel when they bring the preferred up to date that will be the first catalyst for a move upward (a la NCT). I almost pulled the trigger a few weeks ago when it had the sudden spike over $5 as I thought news was imminent but luckily held off. I own 28 stocks, none that DON'T pay a dividend or distribution and I'm very disciplined in that respect. I have noticed some here from waaay back on the GKK Yahoo board . Good to see them. I'd like to get back into GPT at some point but based on the earnings release and news it looks to at least a couple of quarters off.

Respectfully,
Bob

[Enterprising Investor]

Always considered payment in 2013 highly likely.

Right now, the preferred should be thought of mezzanine debt or “junk equity” financing. In order to raise additional common equity capital, the preferred will have to be brought current.

[Country Lawyer]

One thing I did notice on Page 38 of the revised Business Plan posted was that the Pref accrued Div's were listed under "Uses" through December, 2013 . . . which implies that those of us who have been patiently waiting for years may get paid. Good move on your $6.25 purchase. My purchases range from about $2.85 to about $14+. Now though I retain only half of the full position so the $2.85 is gone. Makes up for some of my $18 common. Nothing too wrong about putting some positive numbers on the books and doing some re-balancing. I will move completety into common when appropriate, but must juggle the tax situation. Management does seem to be delivering.

[Enterprising Investor]

Expect GPT to be similar to NCT over time.

[Enterprising Investor]

Gramercy Property Trust Inc. Reports First Quarter 2013 Financial Results (5/07/13)

Gramercy Property Trust Inc. (NYSE: GPT):

Highlights

• For the quarter, net income to common stockholders was $393.4 million, or $6.70 per diluted common share, as compared to the net loss of $(2.1) million, or $(0.04) per diluted common share, for the same quarter of the previous year. Net loss to common stockholders from continuing operations on a fully diluted per common share basis was $(0.10) for the first quarter for 2013 as compared to $(0.12) for the same quarter of the prior year. For the quarter, generated funds from operations, or FFO, of $396.1 million, an increase of $409.9 million from FFO of $(13.8) million generated in the same quarter of the previous year. On a fully diluted per common share basis, FFO was $6.75 for the first quarter of 2013 as compared to FFO of $(0.27) in the same quarter of the previous year. The increase in FFO and net income (loss) to common stockholders for the quarter was primarily attributable to the gain of $389.1 million or $6.63 per diluted common share, recognized in connection with the Company’s exit from the commercial real estate finance business.

• On March 15, 2013, completed the sale of the collateral management and sub-special servicing agreements for its three Collateralized Debt Obligations, or CDOs, to CWCapital Investments LLC, or CWCapital, for approximately $6.3 million in cash, after expenses.

• In the first quarter of 2013, acquired two industrial buildings and one truck terminal containing approximately 985,000 square feet for a total purchase price of approximately $47.0 million.

• Ended the first quarter of 2013 with cash and cash equivalents of $100.5 million as compared to $105.4 million reported at the end of the prior quarter.

• On May 6, 2013, the Company closed on acquisition of a 178 dock door truck terminal located in Atlanta, Georgia, in an all-cash transaction for a purchase price of approximately $7.9 million.

Gordon F. DuGan, Chief Executive Officer, commented, “We are pleased with the progress we are making in creating a best-in-class net lease company. The first quarter results were very much in-line with our expectations at the beginning of the year and we continue to find and close high-quality net lease investments.”

Summary

Gramercy Property Trust Inc. (NYSE: GPT) today reported net loss available to common stockholders from continuing operations of $(5.6) million, or $(0.10) per common share and FFO of $396.1 million, or $6.75 per common share, for the quarter ended March 31, 2013. FFO includes a gain of $389.1 million, or $6.63 per common share, for the quarter ended March 31, 2013, related to the Company’s exit of the commercial real estate finance business.

As of March 31, 2013, the Company maintained $100.5 million of unrestricted cash as compared to approximately $105.4 million reported as of December 31, 2012.

Management, general and administrative expenses from continuing operations were $4.4 million for the quarter ended March 31, 2013, of which approximately $3.7 million was related to corporate and the owned portfolio and $0.7 million was related to Gramercy Asset Management. The decrease in management, general and administrative expenses from the $5.1 million recorded in the same quarter of the prior year is primarily attributable to reduced salary and benefit expenses and a reduction in professional fees.

Accounting rules require, among other things, that direct costs of a business combination, such as transaction fees, due diligence costs and consulting fees, be expensed in the period in which they are incurred, and not capitalized as part of a property acquisition. Accordingly, the Company has expensed a total of $0.6 million, or $0.01 per common share, related to costs incurred in connection with acquisitions completed in the first quarter 2013.

On March 15, 2013, the Company closed on the sale of its collateral management and sub-special servicing agreements for its three CDOS, CDO 2005-1, CDO 2006-1 and CDO 2007-1, to CWCapital for a gross sales price of $9.9 million and net proceeds of approximately $6.3 million in cash after expenses, effectively exiting the commercial real estate finance business. In February 2013, the Company also 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 retained the subordinate bonds, preferred shares and ordinary shares of the three CDOs, which may provide the potential to recoup additional proceeds over the remaining life of the CDOs based upon the resolution of underlying assets within the CDOs, however, there is no guarantee that the Company will realize any proceeds from the retained bonds, or what the timing of these proceeds might be. The carrying value of the retained CDO bonds was approximately $8.6 million as of March 31, 2013. In addition, the Company expects to receive additional cash proceeds for past CDO servicing advances of approximately $14.5 million, including accrued interest at the prime rate of 3.25%, when specific assets within the CDOs are liquidated. The receivable for past servicing advances is included on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2013.

Acquisition and Disposition Activity

In the first quarter of 2013, the Company acquired two industrial buildings and one truck terminal, which collectively contained approximately 985,000 square feet for a total purchase price of approximately $47.0 million summarized as follows:

Olive Branch Industrial Acquisition

On March 11, 2013, the Company closed on the acquisition of a 605,000 square foot class A industrial building located in Olive Branch, Mississippi (Memphis Metropolitan Statistical Area, or MSA), in an all-cash transaction for a purchase price of approximately $24.7 million. The property is 100% leased to a single tenant through December 31, 2022 and includes an adjacent 13.8 acre land parcel which the tenant has the right to expand the building within the first five years of the lease for an additional lease rate. The lease may be terminated after December 2017 with 18 months prior notice and payment of a termination fee of six months gross rent plus unamortized tenant improvement costs.

Garland Industrial Acquisition

On March 19, 2013 the Company closed on the acquisition of a 342,000 square foot manufacturing and distribution facility located in Garland, Texas (Dallas MSA), in an all-cash transaction for a purchase price of approximately $10.7 million. The property is 100% leased to a single tenant through September 30, 2032.

East Brunswick Truck Terminal

On March 28, 2013, the Company closed on the acquisition of a 101 dock door truck terminal situated on a 16.25 acre site located two miles from I-95 in East Brunswick, New Jersey (New York MSA), in an all-cash transaction for a purchase price of approximately $11.7 million. The property is 100% leased to a single tenant through January 31, 2019.

Subsequent to quarter end, the Company acquired the following property:

Atlanta Truck Terminal

On May 6, 2013 the Company closed on the acquisition of a 178-door, 130,000 square foot freight truck terminal situated on a 38.4 acre site located Atlanta, Georgia (Atlanta MSA), in an all-cash transaction for a purchase price of approximately $7.9 million. The property is 100% leased to a single tenant through May 31, 2020.

http://www.businesswire.com/news/home/20130507005803/en/CORRECTING-REPLACING-Gramercy-Property-Trust-Reports-Quarter

[squeedunque]

Yahoo never made the change. It was a sparsely used board anyway and no one has bothered to start another one. I suspect once they announce better earnings interest will pick up but I can find no discussion of this stock anywhere.

I've accumulated a nice chunk as I see it as rather like NCT was back when they ceased paying a dividend. Am suspecting a nice return in time but patience is the key to this one.

Bought the Preferred at 6.25 and it's well above par now. Once they resume on the Pref, they can pay a common and the stock should run up nicely then.......but patience.

[Country Lawyer]

Earnings are out. CC this afternoon. Comments anyone? Also, where did the yahoo board go or is it up at all?

[Enterprising Investor]

Gramercy Capital Corp. to Change Name to Gramercy Property Trust Inc. (4/08/13)

NEW YORK--(BUSINESS WIRE)--Gramercy Capital Corp. (NYSE: GKK), a self-managed integrated commercial real estate investment and asset management company organized as a real estate investment trust, will change its name to Gramercy Property Trust Inc. and ticker symbol on the New York Stock Exchange to GPT. Both the name change and the ticker symbol are expected to be effective as of April 15, 2013.

“The name change affirms the Company’s transformation to a pure play equity REIT investing in net lease office and industrial properties,” said Chief Executive Officer, Gordon F. DuGan.

Company Profile

Gramercy Capital Corp. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint ventures, 114 buildings totaling approximately 4.3 million square feet of office and 1.5 million square feet of industrial, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.7 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gkk.com or contact Investor Relations at 212-297-1000.

(GKK-EN)

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including those factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Capital Corp.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130408006673/en/Gramercy-Capital-Corp.-Change-Gramercy-Property-Trust

[Enterprising Investor]

Gramercy Capital Corp. Announces Acquisitions of Industrial Properties in Dallas, TX and East Brunswick, NJ Totaling $22.4 Million (4/01/13)

NEW YORK--(BUSINESS WIRE)--Gramercy Capital Corp. (NYSE: GKK) announced today that it recently closed on two property acquisitions. The first is an approximately 342,000 square foot industrial building located in Garland, Texas, for a purchase price of approximately $10.70 million in an all-cash transaction. The building is 100% leased to a single tenant through 2032. The second is a 101 dock door truck terminal on a 16.25-acre site located two miles from I-95 in East Brunswick, New Jersey, for a purchase price of approximately $11.65 million in an all-cash transaction. The terminal is 100% leased to a single tenant through 2019.

Company Profile

Gramercy Capital Corp. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint venture, a portfolio of 113 office and industrial buildings totaling approximately 5.6 million square feet, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages for third-parties, approximately $1.7 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gkk.com or contact Investor Relations at 212-297-1000.

Forward-Looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including implementation of the Company’s new business strategy, integration of the new management team and those factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Capital Corp.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130401005979/en/Gramercy-Capital-Corp.-Announces-Acquisitions-Industrial-Properties

[heth247]

Country_lawyer,

First, my estimation of the mortgage debt was wrong. It's ~$350MM, not $300MM. So the AFFO number should be even less. My new AFFO calculation is about $20MM available to common. (

Yes, there are many ways to grow the company and the bottom line. But that's the specialty of Gordon and his team, not mine. What I am trying to do here is to estimation what we can get, just by taking advantage of existing cash they have, without issuing more common equity and grow the company. Or, in other words, the starting point.

It would be nice that those CDOs could spit out a few millions of excess cash flow. However, based on the CC, it seems quite unlikely.

[Country Lawyer]

Heth, although I like your first numbers better (pesky thing, that math), I do think they will use some of that 100mm LOC or more efficently mortgage some properties. They seem to be acting conservatively, not a bad thing considering past history and uncertain markets, but I'd like to see some lower fixed mortgages linked with some inflation protection in leases for when (not "if", in my opinion) we do see the effects of Ben's helicopter. That should boost your numbers with their ROI and considering that the $13 MG&A should not go up that much with the added properties. They also seem to be doing a good job of prospecting for good "deals" as well as keeping expenses down. I think your 50 cent number is attainable. I also think that the driver for the stock price may be more influenced by the yield that eventually is assigned to the common. Another thought that was mentioned to me, they might call the preferred and then re-issue some at a lower coupon rate--say 6%--depending on market conditions? That could provide some added capital without diluting the common. Leveraging as they are, could be worthwhile. Thoughts on that possibility?

[heth247]

Oops, it is too late at night, I cannot do math! $46+8-12-13=29MM, not $37MM!

So AFFO available to common should be $29-7=$22MM /60M= $0.37/share

[heth247]

My estimation of AFFO after they are fully invested

After listening to CC, here is my estimation -

+ Income frome the core NNN: $20MM (existing NOI) + $26MM(future NOI given by Gordon on CC, assuming $150MM cash after paying off accrued pfd divy and leveled 1:1)=$46MM
+ Income from asset management = $8MM
Total income=$52MM
- mortage interest: assuming $300MM@4%=$12MM
- SGA=$13MM
Final AFFO = $52-12-13=$37MM
- pref divy $7M
Final AFFO available to common share holders = $30MM /60M shares = $0.50/share

This is without considering they drawing upon the $100MM LOC they are negotiating in Q2.

Not trying to estimate when they will start paying common and what multiples we would be trading at, just want to throw some discussions about the capacity for commond dividend. Comments welcomed. Thanks.

[Enterprising Investor]

Business Plan Update (3/19/13)

http://files.shareholder.com/downloads/GKK/2377509901x0x646869/AF0D7301-7585-4F00-9E72-11519F13D9A9/GKK_Update_March_2013.pdf

[Country Lawyer]

Gosh yes! The plan was intelligable and when added to the cc which just concluded I do come away with positive vibes for the company's future. DuGan does seem to deliver on what he says. If they do what they plan to, I can see the perf current by the end of the year, some div paying on the common (50 cents?) and, so long as they don't issue a boatload of new common, maybe an $8 price on the common. Nice to see you back too heth.

[heth247]

Their business plan update presentation just put out is more fun to read than 10K. Provided answer to many questions we had before. Very excited.

[Enterprising Investor]

GKK Reports Fourth Quarter and Full Year 2012 Financial Results (3/19/13)

NEW YORK--(BUSINESS WIRE)--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.

As of December 31, 2012, the Company maintained $105.4 million of unrestricted cash as compared to approximately $175.2 million reported as of September 30, 2012. 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 net proceeds from the CDO sale and the purchase of the Memphis industrial property is approximately $118.0 million.

Management, general and administrative expenses from continuing operations, or MG&A, were $25.3 million for the year ended December 31, 2012. MG&A for the year ended December 31, 2012 also included one-time increases in salaries and benefits expense of approximately $1.2 million which were comprised of payments to former executives pursuant to the expiration of employment contracts and the payment of signing bonuses for a new management team effective July 1, 2012. MG&A also includes $2.6 million of costs related to the Company’s strategic review process, expensed at the conclusion of the process in the second quarter of 2012. MG&A for the quarter ended December 31, 2012 was approximately $4.0 million, compared to $8.3 for the prior quarter. The decrease in management, general and administrative expenses of $4.3 million is primarily attributable to reduced salary and benefit expenses and a reduction in professional fees.

http://www.businesswire.com/news/home/20130319005604/en/Gramercy-Capital-Corp.-Reports-Fourth-Quarter-Full

[Country Lawyer]

Okay, 10-K is out. Light at the end of the tunnel--I guess, but as a Perf-A holder, the loss carry forward and statement that with those losses they were not in danger of a REIT status problem in 2012 did not give me much immediate hope for a catch up on the div's. I still think that is a necessary step to reconstitute their reputation in the investment community, however with the latest moves that delay does not seem to have eliminated their ability to incease their capital. Perhaps that means more delay in payment. I'll be very interested to see what is said tomorrow on the call. Distilling that 10 was still quite a chore. I really look forward to a clean report without all the chaff. Common has done well, but I think we still have a way to go. The new leadership has delivered so far. But, disclosure, I have lightened up on the perf, taken some LT profits, prudence. Over four years seemed to be patience enough. I am still long common. Plan, good to see you're alive and well.

[PlanMaestro]

Yep. You can actually say that they are already ready … only flying low.

PS: Meeting again EI? Where's Chevy?

[Superfly15]

Slowly but surely, these guys are coming around. It's taking forever though it seems...been watching them since 2010. Eventually they'll probably start paying a dividend like the rest of these companies who came back from the brink like RAS, NCT etc.

[Enterprising Investor]

GKK to Release Fourth Quarter 2012 Financial Results and Business Plan Update on March 19, 2013 (3/14/13)

Conference Call to be Held on March 19, 2013 at 2:00 PM EDT

NEW YORK--(BUSINESS WIRE)--Gramercy Capital Corp. (NYSE: GKK), a self-managed integrated commercial real estate investment and asset management company organized as a real estate investment trust, announced today that it will release earnings for the fourth quarter 2012 on Tuesday, March 19, 2013, prior to market open.

The Company's executive management team will host a conference call and audio webcast on Tuesday, March 19, 2013, at 2:00 PM EDT to discuss fourth quarter 2012 financial results and to provide a business plan update.

The live call will be webcast in listen-only mode on Gramercy’s website at www.gkk.com and on Thomson’s StreetEvents Network. The presentation may also be accessed by dialing [phone] - Domestic or [phone] - International, using confirmation code “GRAMERCY.”

A replay of the call will be available from March 19, 2013 at 4:30 PM EDT through March 22, 2013 at 11:59 PM EDT by dialing [phone] - Domestic or [phone] - International, using pass code 4726 3729#.

Company Profile

Gramercy Capital Corp. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint venture, a portfolio of 116 office and industrial buildings totaling approximately 4.9 million square feet, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages approximately $1.7 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Gramercy Finance division manages approximately $1.7 billion of whole loans, bridge loans, subordinate interests in whole loans, mezzanine loans, preferred equity and commercial mortgage-backed securities which are financed through three non-recourse Collateralized Debt Obligations, or CDOs. On January 30, 2013, the Company entered into a purchase and sale agreement to transfer the collateral management and sub-special servicing agreements for its three CDOs to CWCapital Investments LLC for approximately $9.9 million, less certain adjustments and closing costs. Subject to customary closing conditions, the transfer is expected to close in March 2013. Neither Gramercy Finance nor Gramercy Asset Management is a separate legal entity but are divisions through which our commercial real estate finance and property management businesses are conducted. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania, and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gkk.com or contact Investor Relations at 212-297-1000.

(GKK-EN)

Forward-looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the implementation of the new business strategy, the integration of the new management team, the results of the operational review and those factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Capital Corp.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130313006497/en/Gramercy-Capital-Corp.-Release-Fourth-Quarter-2012

[Enterprising Investor]

GKK Announces Acquisition of a $24.65 Million Distribution Facility in the Memphis MSA (3/12/13)

NEW YORK--(BUSINESS WIRE)--Gramercy Capital Corp. (NYSE: GKK) announced today that it closed on the acquisition of an approximately 600,000 square foot class A industrial building located in Olive Branch, Mississippi, in an all-cash transaction for a purchase price of approximately $24.65 million. The building is 100% leased to a single tenant through December 31, 2022 and includes an adjacent 13.8 acre land parcel with capacity for an additional 250,000 square foot building.

Company Profile

Gramercy Capital Corp. is a self-managed, integrated commercial real estate investment and asset management company. The Company owns, directly or in joint venture, a portfolio of 116 office and industrial buildings totaling approximately 4.9 million square feet, net leased on a long-term basis to tenants, including Bank of America, Nestlé Waters, Philips Electronics and others. The Company’s property management business, operating under the name Gramercy Asset Management, currently manages approximately $1.7 billion of commercial properties leased primarily to regulated financial institutions and affiliated users throughout the United States. The Gramercy Finance division manages approximately $1.7 billion of whole loans, bridge loans, subordinate interests in whole loans, mezzanine loans, preferred equity and commercial mortgage-backed securities which are financed through three non-recourse Collateralized Debt Obligations, or CDOs. On January 30, 2013, the Company entered into a purchase and sale agreement to transfer the collateral management and sub-special servicing agreements for its three CDOs to CWCapital Investments LLC for approximately $9.9 million, less certain adjustments and closing costs. Subject to customary closing conditions, the transfer is expected to close in March 2013. Neither Gramercy Finance nor Gramercy Asset Management is a separate legal entity but are divisions through which our commercial real estate finance and property management businesses are conducted. The Company is headquartered in New York City and has regional offices in Jenkintown, Pennsylvania and St. Louis, Missouri.

To review the Company’s latest news releases and other corporate documents, please visit the Company's website at www.gkk.com or contact Investor Relations at 212-297-1000.

(GKK-EN)

Forward-Looking Information

This press release contains forward-looking information based upon the Company's current best judgment and expectations. Actual results could vary from those presented herein. The risks and uncertainties associated with forward-looking information in this release include, but are not limited to, factors that are beyond the Company's control, including the implementation of the new business strategy, the integration of the new management team, the results of the operational review and those factors listed in the Company's Annual Report on Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the SEC.

Contacts

Gramercy Capital Corp.
Jon W. Clark, 212-297-1000
Chief Financial Officer
or
Emily Pai, 212-297-1000
Investor Relations

http://www.businesswire.com/news/home/20130312005511/en/Gramercy-Capital-Corp.-Announces-Acquisition-24.65-Million

[Enterprising Investor]

Fitch: CWCapital Inv. LLC Deemed Acceptable as Successor Collateral Mgr for Gramercy 2005-1/2007-1 (3/11/13)

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has reviewed CWCapital Investments LLC (CWCI) as a potential successor collateral manager for Gramercy Real Estate CDO 2005-1 (Gramercy 2005-1) and Gramercy Real Estate CDO 2007-1 (Gramercy 2007-1), and determined the manager's capabilities to be consistent with the current ratings assigned to the notes of the transactions.

In February 2013, Fitch was notified of the proposed assignments of the rights and obligations of GKK Manager LLC (GKKM), a Gramercy Capitol Corp affiliate, under the Collateral Management Agreements, Indentures, Amended and Restated Servicing Agreements, existing Special Servicing Agreement, and certain other transaction documents for Gramercy 2005-1 and Gramercy 2007-1 to CWCI from GKKM. Per the trustee, Wells Fargo Bank, National Association (NA), consent to the assignment of the Collateral Management Agreements from the majority of the respective controlling classes has been obtained, as required by the transaction documents.

Additionally, in conjunction with the collateral manager change, supplemental indentures, an amended and restated special servicing agreement, and amended and restated collateral manager agreements will be executed. A CWCapital affiliated entity will be appointed as the successor special servicer replacing SitusServ L.P., which was removed by GKK Manager LLC, subject to the satisfaction of certain conditions. These actions set forth in this paragraph and the two preceding paragraphs will not result in a withdrawal or downgrade of the ratings assigned to any of the notes. Further, CWCI will be appointed as the successor advancing agent for both transactions. This appointment of CWCI will also not adversely affect the ratings assigned to the notes.

CWCapital Asset Management LLC (CWCAM), which has a Fitch CMBS special servicer rating of 'CSS1-', will become the successor special servicer. CWCAM has been special-servicing commercial real estate since 1995.

CWCI will replace GKK Liquidity LLC as the Advancing Agent. Wells Fargo Bank, NA ('AA-/F1+') remains the backup advancing agent under the Indentures.

CWCI and CWCAM are wholly owned subsidiaries of CW Financial Services LLC, a commercial real estate asset management, special servicing, and investment advisory business. CWCI was launched in 2004 and currently manages 15 CDOs and serves as disposition consultant on an additional eight transactions.

Fitch emphasizes that the scope of its review was solely to determine that CWCI meets Fitch's minimum guidelines to manage the above-referenced CDOs within the context of Fitch's stated review procedure for replacement managers; and that CWCAM's appointment as successor special servicer will not negatively impact the ratings assigned to any of the notes. Furthermore, this review was in the context of the current management responsibilities associated with the above-referenced CDOs and the current ratings assigned to them by Fitch.

Fitch's review procedure for potential replacement CDO asset managers is outlined in the special report entitled 'CDO Asset Managers: U.S. Replacement Activity Update', dated Dec. 9, 2010 and available on the Fitch web site at 'www.fitchratings.com'.

Fitch is not a party to the transaction and therefore does not provide consent or approval, as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee when or if the proposed transfers of transaction responsibilities (including the execution of the proposed supplemental indentures among the CDO issuers and co-issuers, Wells Fargo Bank, NA and CWCI; the execution of the amended and restated special servicing agreement between the CDO issuers, co-issuers, CWCI, CWCAM and Wells Fargo, NA; and the execution of the amended and restated collateral management agreements between the CDO issuers and CWCI) are completed.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate Transactions' (Nov. 29, 2012);

--'Global Rating Criteria for Structured Finance CDOs' (Oct. 3, 2012);

--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012);

--'CDO Asset Managers: U.S. Replacement Activity Update' (Dec. 9, 2010).

Applicable Criteria and Related Research

CDO Asset Managers: U.S. Replacement Activity Update

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=578965

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

Global Rating Criteria for Structured Finance CDOs

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=690203

Surveillance Criteria for U.S. CREL CDOs and CMBS Large Loan Floating-Rate Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695733

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.


Contacts


Fitch Ratings
Stacey McGovern, [phone]
CMBS
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Gwen Fink-Stone, [phone]
Fund and Asset Manager Ratings
Associate Director
or
Committee Chairperson:
Karen Trebach, [phone]
Senior Director
or
Media Relations
Sandro Scenga, [phone] (New York)
[e-mail]

http://www.businesswire.com/news/home/20130311006536/en/Fitch-CWCapital-Inv.-LLC-Deemed-Acceptable-Successor

[JonGrey25]

They just sold the rights to act as the collateral manager for the CDOs. From their PR:

"The Company intends to liquidate its CDO bond portfolio. The Company also expects to receive additional cash proceeds for past CDO servicing advances of approximately $14.0 million when specific assets within the CDOs are liquidated."

It looks like all of the CDOs on the list traded today - I don't have color/cover, but I would assume they traded around the talked range. If so, we're looking at proceeds of $30MM - $35MM.

[PlanMaestro]

Looks like it's all, I thought these CDO bonds were part of the recent deal …

[JonGrey25]

GKK is auctioning a portion (all?) of their CDO holdings today:

CRE CDO GKKRE BWIC DUE THURS 2/14 AT 2:00 PM

Deal Name CUSIP Original Face Current Face *THOUGHTS*
GKKRE 2005-1A A1 385000AA2 15,000,000 6,061,958 M 90's
GKKRE 2005-1A B 385000AC8 667,000 667,000 L 80's

GKKRE 2006-1A A1 38500VAA4 20,000,000 10,127,062 LM 90's
GKKRE 2006-1A A2 38500VAC0 17,067,000 17,067,000 M 80's
GKKRE 2006-1A B 38500VAD8 5,000,000 5,000,000 M 70's

[blasher]

GKK Stock Seasonality worked like a charm .. again! . . .
See this article about it and the Big gains made in the past month or two.



.

[BlueBookStockGuide]

UP! UP! and AWAYYYYYY!!!!

[heth247]

RE: CDO management rights and bonds sold.

One thing I did not understand is what took them so long to reach such a deal. Maybe they tried to sell the equity interest but cannot find a buyer with a right price...

[Country Lawyer]

This is all really encouraging news especially for us who have held on for so long. The linked DeMuth interview on the earlier post was also nice to hear--let's just hope it is not pie in the sky. I have lightened up on my Pref A. taking some profits there as L T capital gains but still am optimistic that the new management team really does have a plan and they appear to be straight shooters. They are doing what they said and keeping the investors informed. What a great change from the prior regime! Disclosure: Still have a lot of Pref A as well as long common.

[Olmsted]

CDO management rights and bonds sold. Kept equity tranches. Rights: 9.9m+14m. Bonds: 32m.

http://m.seekingalpha.com/news-article/5474171-gramercy-capital-corp-announces-an-agreement-to-sell-its-collateral-management-agreements-for-its-collateralized-debt-obligations-cdos-to-cwcapital-and-retain-the-equity-in-its-cdos

Overall a reasonable deal. Looks like they had to sell bonds at a discount to make it happen. Upside optionality from the equity is still there. Simplifies the business, can trim expenses.

[TFL]

Looks like BlackRock increased its position in the common shares to 6.90% of the class based on the 13G filed today.

http://ir.gramercycapitalcorp.com/secfiling.cfm?filingID=1086364-13-1226&CIK=1287701

[TFL]

Chris DeMuth of Rangeley Capital appeared on "Money Moves" on Bloomberg TV today at 1:00 p.m. EST to discuss his GKK investment. The stock began to rally shortly thereafter. Below is the link to the interview:

www.bloomberg.com/video/demuth-s-best-trade-for-2013-grammercy-capital-hDdbnRHLRFS8AY5di0FrkA.html

[airbus300]

I had a lot of blind trust and a gut instinct in this stock 4 years ago. Many times it looked like it had no hope to survive... But now they have a plan; it looks stable, and it is only up from here. I just closed my eyes and never sold a share.

[airbus300]

Gramercy Capital Corp. Announces the Acquisition of a $27.125 Million Industrial Portfolio
BY Business Wire
— 5:17 PM ET 11/27/2012

NEW YORK--(BUSINESS WIRE)-- Gramercy Capital Corp. (GKK) closed on the acquisition of a two-property, 540,000 square-foot industrial portfolio (the “Portfolio”) located in the Indianapolis metropolitan area, in an all-cash transaction for a purchase price of approximately $27.125 million. The Portfolio is comprised of two Class A industrial buildings, 100% leased to three tenants, with a 10.2-year weighted average lease term.

Gordon F. DuGan, Chief Executive Officer of Gramercy Capital Corp. (GKK), commented, “This is our first closing under the Company’s new strategy and represents an important step in the transformation of Gramercy into a premiere net lease investor focused on office and industrial properties.” Mr. DuGan continued, “We are looking to construct a portfolio of high quality assets that generate durable sustainable cash flows for the benefit of our shareholders.”

Company Profile

Gramercy Capital Corp. (GKK) is a self-manag..............

[airbus300]

Gramercy Capital Corp. Closes the Previously Announced Acquisition of a $485 Million Portfolio in a Joint Venture with Garrison Investment Group
BY Business Wire
— 4:34 PM ET 12/06/2012

NEW YORK--(BUSINESS WIRE)-- Gramercy Capital Corp. (GKK) announced today that it has closed in a joint venture with Garrison Investment Group (“Garrison”) on the acquisition of a 115-property portfolio (“Portfolio”), for a total purchase price of $485 million ($87 per square foot). The Portfolio was acquired from an affiliate of KBS Real Estate Investment Trust, Inc. (“KBS”). At closing, the Company and Garrison collectively capitalized the joint venture, on a 50/50 basis, with an equity investment of approximately $141 million, plus deal expenses. The Company funded its portion of the equity contribution with approximately $56 million in cash and the issuance of six million shares of common stock to KBS, valued at $15 million at the execution date of the purchase agreement.

The Portfolio totals approximately 5.6 million square feet and is comprised of office buildings, branch-office buildings and operations centers. Bank of America, N.A. (“Bank of America”) leases approximately 81% of the total Portfolio and total occupancy is approximately 88%. The Portfolio consists of two sub-portfolios: The core portfolio (“Core Portfolio”), which consists of 67 assets and the held-for-sale portfolio (“Held-For-Sale Portfolio”) which consists of 48 properties. The joint venture’s strategy is to retain a core net-lease portfolio of high quality assets leased to Bank of America in primary and strong secondary markets and sell non-core, multi-tenant assets.

The Core Portfolio consists of 67 assets located in ten states. It is 98% occupied, with 96% leased to Bank of America under a 10.5-year master lease. For 2013, the Core Portfolio is expected to generate net operating income of approximately $27.2 million. At closing, the joint venture financed the Core Portfolio with a $200 million first mortgage.

The Held-For-Sale Portfolio consists of 48 assets located in 13 states that are 68% leased to Bank of America. Concurrently with the purchase of the Portfolio, the joint venture sold two multi-tenant office buildings for net proceeds of approximately $144 million. The two buildings sold at closing were a one million square foot multi-tenant office building located in downtown Chicago and a 406,000 square foot multi-tenant office building located in downtown Charlotte. Proceeds from these sales were used to reduce the capital contributions required by the Company and Garrison to fund the joint venture. The joint venture plans to sell the remaining 46 Held-For-Sale assets over the next 12-18 months for expected net proceeds of approximately $50 million. For 2013, the Held-For-Sale Portfolio is expected to generate net operating income of approximately $3.2 million.

Gordon F. DuGan, Chief Executive Officer of Gramercy Capital Corp. (GKK), commented, “We couldn’t be more excited about this acquisition. The transaction allows Gramercy to deploy a significant amount of capital into an attractive, high-yielding, net lease opportunity. Furthermore, Garrison has been a tremendous partner in closing the largest and most complicated deal in my 24-year career.”