Gramercy Property Trust Inc. Reports Second Quarter 2013 Financial Results 08/06 05:30 AM
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NEW YORK--(BUSINESS WIRE)-- Gramercy Property Trust Inc. (GPT:$4.55,00$-0.09,00-1.94%) :
QUARTERLY HIGHLIGHTS
Recognized total revenues of $16.3 million and recorded a net loss to common stockholders of $6.7 million or $0.11 per diluted common share.
Generated negative funds from operations, or FFO, of $3.5 million or $0.06 per diluted common share.
Generated adjusted funds from operations, or AFFO, of $0.0 million or $0.00 per fully diluted common share.
Acquired 11 properties for a total purchase price of approximately $111.2 million with an average lease term of 15 years.
Sold the defeased mortgage and corresponding pool of pledged treasury securities in the Bank of America Joint Venture, generating net cash proceeds of $1.8 million to the Company and eliminating future interest expense (or losses) related to the defeased mortgage.
Reduced management, general and administrative expenses, or MG&A, to $4.3 million for the quarter from $4.4 million from the prior quarter. MG&A was $9.3 million for the same quarter of the prior year.
Recognized $5.4 million of incentive fees based upon the value of the KBS Portfolio at quarter end.
Recorded an impairment to write-down the carrying value of retained CDO bonds by approximately $1.0 million to $7.6 million.
Ended the second quarter of 2013 with cash and cash equivalents of $49.0 million as compared to $100.5 million reported at the end of the prior quarter.
SUMMARY
Gramercy Property Trust Inc. (GPT:$4.55,00$-0.09,00-1.94%) today reported a net loss to common stockholders of $6.7 million, or $0.11 per fully diluted common share, and for the six months ended June 30, 2013, net income to common stockholders of $386.7 million, or $6.59 per fully diluted common share. For the quarter, FFO was negative $3.5 million, or $0.06 per fully diluted common share, and for the six months ended June 30, 2013, FFO was $392.5 million, or $6.69 per fully diluted common share. For the quarter the Company generated AFFO of $0.0 million, or $0.00 per fully diluted common share, and for the six months ended June 30, 2013, AFFO was negative $0.9 million, or $0.01 per fully diluted common share. A reconciliation of FFO and AFFO to net income available to common stockholders is included on page 9 of the press release.
As of June 30, 2013, the Company maintained $49.0 million of unrestricted cash as compared to approximately $100.5 million reported as of March 31, 2013. Subsequent to quarter end, the Company received approximately $4.7 million of its outstanding servicing advances receivable in cash.
MG&A expenses were $4.3 million for the quarter ended June 30, 2013 as compared to $4.4 million in the prior quarter and $9.3 million in the same quarter of the prior year. Decreases in MG&A expenses are primarily attributable to reductions in salary and employee benefit costs and reduced professional fees due in large part to the reduced complexity of the Company’s business subsequent to the disposal of the commercial real estate finance business. In addition, the Company has expensed a total of $0.7 million, or $0.01 per fully diluted common share, and $1.2 million, or $0.02 per fully diluted common share for the three and six months ended June 30, 2013, respectively, related to acquisition costs.
In the second quarter of 2013, the Company recorded an impairment to write-down the carrying value of its retained CDO bonds to approximately $7.6 million from the prior quarter’s carrying value of $8.6 million. The reduction in carrying value is primarily attributable changes in expected cash flows available to the Company’s bonds related to a 50-basis point increase in the forward LIBOR curve, and adjustment made to extend the maturity and otherwise delay the resolution date of two large assets contained within the CDO collateral.
Gordon F. DuGan, Chief Executive Officer, commented, “The direction and momentum of the Company is very exciting and is a testament to the hard work of the entire team here at Gramercy. We continue to outpace our expectations, closing 11 discrete acquisitions in the second quarter. I am especially pleased with the results of our differentiated net lease investment strategy and our ability to find attractive investments that meet our strict underwriting standards. Our Asset Management platform continues to be a source of profits and acquisition opportunities. As we move forward, I am more confident than ever that we are creating a best-in-class, next generation net lease REIT that will grow and continue to be a significant factor in the net lease industry.”
