Gramercy Property Trust (NYSE: GPT) today reported financial
results for the second quarter of 2017.
Operating Results:
($ in thousands, except per
share data) Three Months Ended Six Months Ended
June 30, June 30, 2017
2016 2017 2016 Net income to
common shareholders $ 6,514 $ 27,355 $ 14,082 $ 24,863 Net income
per common share $ 0.04 $ 0.19 $ 0.09 $ 0.17 FFO available
to common shareholders and unitholders $ 74,320 $ 82,550 $ 141,722
$ 144,616 FFO per common share $ 0.49 $ 0.58 $ 0.96 $ 1.02
Core FFO available to common shareholders and unitholders $ 74,241
$ 88,601 $ 146,695 $ 165,501 Core FFO per common share $ 0.49 $
0.62 $ 1.00 $ 1.16 AFFO available to common shareholders and
unitholders $ 65,889 $ 77,889 $ 133,956 $ 150,616 AFFO per common
share $ 0.44 $ 0.55 $ 0.91 $ 1.06
Second Quarter 2017
Highlights
- Acquired ten properties in eight
separate transactions for an aggregate purchase price of
approximately $171.5 million with an initial cash capitalization
rate of 7.1%. Also acquired land parcels for and began construction
of two build-to-suits in Spartanburg and Phoenix for a total
estimated investment of $49.1 million at a 7.6% expected
capitalization rate upon delivery, expected in the fourth quarter
of 2017 and first quarter of 2018, respectively.
- Disposed of 11 properties for aggregate
gross proceeds of $183.3 million. The weighted average remaining
lease term for the occupied properties was 13.6 years at closing
and the blended exit capitalization rate for the occupied
properties was 5.1%.
- In April 2017, raised net proceeds of
$274.2 million through a public offering of 10.35 million common
shares.
- Revises 2017 full year guidance to a
range of $2.05 to $2.10 per diluted share for Core FFO and a range
of $1.90 to $1.95 per diluted share for AFFO. The updated guidance
primarily reflects acquisition activity now expected in the second
half of the year and dispositions which occurred earlier in the
year.
- Subsequent to quarter end, announced
that Gramercy Property Europe plc (the “Fund”) completed the
previously announced sale of 100% of the Fund’s assets. The
transaction resulted in net distributions to the Company of €90.8
million ($103.8 million), inclusive of a promoted interest
distribution of approximately €7.9 million ($9.0 million).
- Subsequent to quarter end, declared a
third quarter 2017 common share dividend of $0.375 per share.
Summary
Gramercy Property Trust (NYSE: GPT) today reported net income to
common shareholders of $6.5 million, or $0.04 per diluted common
share, for the three months ended June 30, 2017. For the
second quarter of 2017, the Company generated NAREIT defined FFO of
$74.3 million, or $0.49 per diluted common share. The Company also
reported Core FFO of $74.2 million, or $0.49 per diluted common
share during the quarter. The Company generated adjusted funds from
operations, or AFFO, of $65.9 million, or $0.44 per diluted common
share during the quarter. The Company had 151,889,880 common shares
issued and outstanding as of June 30, 2017 and had 151,072,429
diluted weighted average common shares and units outstanding for
its non-GAAP financial measure calculations for the three months
ended June 30, 2017. A reconciliation of FFO, Core FFO and
AFFO to net income available to common shareholders is included in
this press release.
For the second quarter of 2017, the Company recognized total
revenues of approximately $131.4 million, an increase of 1% over
total revenues of $130.0 million reported in the prior quarter.
2017 full year guidance has been revised to a range of $2.05 to
$2.10 per diluted share for Core FFO and a range of $1.90 to $1.95
per diluted share for AFFO. The updated guidance primarily reflects
acquisition activity of industrial properties now expected in the
second half of the year and dispositions of office properties which
occurred earlier in the year.
As of June 30, 2017, the Company owned interests in 320
properties containing an aggregate of approximately 67.5 million
rentable square feet with 97.7% occupancy and an ABR weighted
average remaining lease term of 7.2 years.
Property Acquisitions
In the second quarter of 2017, the Company acquired ten
industrial properties in Savannah, Baltimore, Austin, Inland
Empire, Columbus, Miami, and North and South Carolina for a total
purchase price of $171.5 million at a 7.1% cash capitalization
rate. Also during the second quarter, the Company acquired land
parcels for and began construction of two build-to-suits in
Spartanburg and Phoenix for a total estimated investment of $49.1
million at a 7.6% expected capitalization rate upon delivery.
Acquisition volume for the second quarter, including estimated
investments on build-to-suits, totals $220.6 million with an
initial cash capitalization rate of 7.2%.
Subsequent to quarter end, the Company acquired two industrial
properties and three covered land industrial parcels in North
Carolina, Baltimore and Miami for a total purchase price of $145.9
million at a 6.4% cash capitalization rate. Currently, the Company
has approximately $163.4 million in approved acquisitions under
contract.
Second quarter 2017 property acquisitions are summarized in the
chart below:
($ in millions, except per square feet)
Acq. Date
Location MSA
PropertyType
RentableSquare Feet
PurchasePrice
Occupancy
Acq. CashNOI
S/L NOI 4/24/2017 Savannah, GA Savannah
Industrial 312,000 $ 22.3 100.0% $ 1.4 $ 1.5 4/26/2017 Columbia, MD
Baltimore Industrial 475,074 29.2 100.0% 2.7 2.8 5/5/2017 Austin,
TX Austin Industrial 120,194 9.7 100.0% 0.7 0.8 5/5/2017 Fontana,
CA Inland Empire Industrial 102,159 8.0 100.0% 0.5 0.6 6/22/2017
Columbus, OH Columbus Industrial 306,016 13.0 100.0% 0.9 0.9
6/23/2017 Medley, FL Miami Industrial 119,008 18.0 100.0% 1.2 1.4
6/26/2017 Fort Wayne, IN Other Industrial 400,000 24.6 100.0% 1.8
1.9 6/30/2017 North & South Carolina Various Industrial 658,592
46.7 1 76.1% 3.0
3.0
Totals 2,493,043
$ 171.5
93.7% $ 12.2
$ 13.0
1. Reflects portfolio allocation adjustment of $0.6 million
related to portfolio of three properties acquired in June 2017 and
one property acquired in July 2017.
Build-to-suit activity during the quarter is summarized in the
charts below:
($ in millions, except per square feet and acreage)
Location
Investment asof
6/30/171
Total Budget Acreage
Building SF atCompletion
EstimatedCompletionDate
Estimated Year1 NOI
WALT
UponCompletion(Yrs)
New Capital
Deployments
Spartanburg, SC $ 13.9 $ 25.8 39.3 432,120 Q4 2017 $ 2.0 12.0
Phoenix, AZ 3.3 23.3 8.6
125,600 Q1 2018 1.8
12.0
Total $ 17.2
$ 49.1 47.9
557,720
$ 3.7 12.0
Location
Investment asof
6/30/171
Total Budget Acreage
Building SF atCompletion
EstimatedCompletionDate
Estimated Year1 NOI
WALT
UponCompletion(Yrs)
Ongoing
Projects
Chicago, IL2 $ 7.4 $ 62.8 12.8 227,043 Q3 2017 $ 3.7 25.0
Charleston, SC 13.0 31.2
25.8 240,800 Q3 2017 2.5
20.0
Total $ 20.5
$ 94.0 38.6
467,843
$ 6.2 23.0
1. Investment includes costs accrued as of June 30, 2017.
2. Represents a build-to-suit under a forward purchase
agreement, which will be closed and funded in Q3 2017.
Property Dispositions
During the quarter, the Company disposed of 11 assets for
aggregate gross proceeds of $183.3 million at a 4.4% disposition
cap rate on next twelve months cash NOI and a 6.7% capitalization
rate on 2016 GAAP NOI. These aggregate gross disposition proceeds
include $124.7 million from office and retail bank branch
properties, including the sale of five office assets from the
Company’s Gramercy Woods campus in Jacksonville, FL, as well as one
office asset in Dallas, TX, one vacant industrial property in
Minneapolis, MN and two industrial assets in Spartanburg, SC.
During the second quarter of 2017, the Company recorded net
gains on disposals of $2.0 million for the 11 assets sold during
the quarter. Net income includes impairments of real estate
investments of $5.6 million related to office assets that the
Company intends to sell, which is offset by the write off of below
market lease liabilities of $4.3 million recorded as an increase to
rental revenue. The impact of these transactions results in an
increase to net income of $0.8 million, or $0.01 per diluted share,
FFO and Core FFO of $4.3 million, or $0.03 per diluted share and no
impact to AFFO.
Subsequent to quarter end, the Company disposed of three retail
bank branches in Miami, FL, Bakersfield, CA and Summit, NJ, two
office properties in San Diego, CA and Summit, NJ, and one vacant
industrial property in Spartanburg for aggregate gross proceeds of
$16.4 million at a 3.0% disposition cap rate on next twelve months
cash NOI. Currently, the Company has approximately $67.8 million in
dispositions under contract or under negotiation for sale.
Second quarter 2017 property dispositions are summarized in the
chart below:
($ in millions, except per square feet)
Disp. Date Location
MSA
Property Type
RentableSquare Feet
SalePrice
Disp. CashNOI
4/6/2017 Torrance, CA Los Angeles Office 15,342 $ 2.7 $ 0.1
4/19/2017 Compton, CA Los Angeles Office 10,294 2.0 0.1 5/2/2017
Coppell, TX Dallas Office 182,700 42.4 0.2 5/10/2017 Rogers, MN
Minneapolis Industrial 335,400 10.9 (0.7 ) 5/23/2017 Jacksonville,
FL1 Jacksonville Office 822,540 115.0 7.8 6/20/2017 Newport Beach,
CA Los Angeles Office 21,509 5.0 0.2 6/29/2017 Spartanburg, SC
Charleston Industrial 352,096 5.4
0.3
Totals 1,739,881
$ 183.3 $ 8.0
1. Disposition represents Bank of America-occupied portion of
Gramercy Woods.
European Joint Ventures
Subsequent to quarter end, the Company announced that the Fund
completed the previously announced sale of 100% of the Fund’s
assets. The transaction resulted in net distributions to the
Company of €90.8 million ($103.8 million), inclusive of a promoted
interest distribution of approximately €7.9 million ($9.0 million).
Gains on asset sales and recognition of the promoted interest
associated with the sale will be recognized in the Company’s third
quarter 2017 financial statements.
Under the terms of the sale, Gramercy Europe (Jersey) Limited,
the Company’s Jersey-based investment and asset management
subsidiary, will continue to manage the assets for the buyer on a
fixed-fee basis until July 2018.
Additionally, subsequent to quarter end, the Company disposed of
one of its two remaining properties in the Goodman U.K. Joint
Venture. The South Normanton, U.K. property was sold for £15.2
million, or an approximately 6.0% disposition capitalization rate.
The remaining 187,000 square foot property in the Goodman U.K.
Joint Venture is located in the Brackmills Industrial Estate in
Northampton, U.K. and is currently being marketed for lease. Once
leased, the Company anticipates marketing the property for
sale.
During the second quarter of 2017, Gramercy Europe acquired
three properties. Since inception, Gramercy Europe has acquired 38
properties for €810.0 million, which includes the properties
previously part of the former Goodman Europe joint venture.
Leasing Activity
During the second quarter of 2017, the Company executed one new
lease and three renewals aggregating approximately 892 thousand
square feet for an average lease term of 8.2 years and a cash
leasing spread of 10.2% over prior annual base rent ("ABR"), and a
straight-line leasing spread of 19.5% over prior straight-line
ABR.
Asset Management Revenue
In the second quarter of 2017, the Company recognized fee
revenues of $1.6 million for property management, asset management,
and administrative fees, as compared to $4.6 million for the prior
quarter. The decrease in fees of approximately $3.0 million for the
second quarter of 2017 is due to a reduction in fees from the KBS
arrangement, which ended in the first quarter of 2017, offset with
$0.2 million in fees from the Company's Strategic Office Partners
joint venture.
Corporate
As of June 30, 2017, the Company maintained approximately
$970.3 million of liquidity, as compared to approximately $784.5
million of liquidity reported at the end of the prior quarter.
Liquidity includes $163.5 million of unrestricted cash as compared
to approximately $56.3 million reported at the end of the prior
quarter. During the quarter, the Company drew down $95.0 million
and repaid $150.0 million previously drawn on the Senior Unsecured
Revolving Credit Facility. As of June 30, 2017, there were
$71.0 million of borrowings outstanding under the revolving credit
facility.
General and administrative (or "G&A"), expenses were $9.1
million for the quarter ended June 30, 2017 compared to $8.8
million in the prior quarter. G&A expenses included non-cash
share-based compensation costs of approximately $2.1 million for
the quarter ended June 30, 2017 and the prior quarter.
In April 2017, the Company completed an underwritten public
offering of 10.35 million of its common shares, which included the
exercise in full by the underwriters of their option to purchase an
additional 1.35 million additional common shares. The common shares
were issued at a public offering price of $27.60 per share and the
net proceeds from the offering were approximately $274.2 million.
The Company used the net proceeds from the offering to fund
acquisitions and to repay outstanding borrowings, including
borrowings under its revolving credit facility.
Dividends
In July, the Company paid a dividend of $0.375 per common share
for the second quarter of 2017. The second quarter dividend was
paid on July 14, 2017 to holders of record as of June 30, 2017.
The Company also paid a second quarter 2017 dividend on the
Company’s 7.125% Series A Cumulative Redeemable Preferred Shares in
the amount of $0.44531 per share on June 30, 2017 to preferred
shareholders of record as of the close of business on June 20,
2017.
Subsequent to quarter end, the Company declared a third quarter
2017 common share dividend of $0.375 per share payable on October
16, 2017 to shareholders of record as of September 29, 2017.
Subsequent to quarter end, the Company also declared a third
quarter 2017 dividend on the Company's 7.125% Series A Cumulative
Redeemable Preferred Shares in the amount of $0.44531 per share,
payable on October 2, 2017 to preferred shareholders of record as
of the close of business on September 20, 2017.
Company Profile
Gramercy Property Trust is a leading global investor and asset
manager of commercial real estate. The Company specializes in
acquiring and managing high quality, income producing commercial
real estate leased to high quality tenants in major markets in the
United States and Europe.
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 888-686-0112.
Conference Call
The Company's executive management team will host a conference
call and audio webcast on Wednesday, August 2, at 11:00 AM EDT to
discuss second quarter 2017 financial results. Presentation
materials will be posted prior to the call on the Company's
website, www.gptreit.com.
Interested parties may access the live call by dialing (844)
446-4569, or for international participants (213) 660-0984, using
passcode 51191261. Additionally, the live call will be webcast in
listen-only mode on the Company’s website at www.gptreit.com in the
Investor Relations section.
A replay of the call will be available at 5:00 PM EDT, August 2,
2017 through midnight, August 16, 2017 by dialing (800) 585-8367,
or for international participants (404) 537-3406, using the access
code 51191261.
Disclaimer
Non GAAP Financial Measures
The Company has used non-GAAP financial measures as defined by
SEC Regulation G in this press release. A reconciliation of each
non-GAAP financial measure and the comparable GAAP financial
measure can be found in this release.
Gramercy Property Trust
Condensed Consolidated Balance
Sheets
(Unaudited, dollar amounts in
thousands, except per share data)
June 30,2017
December 31,2016
Assets: Real estate investments, at cost: Land $ 796,476 $
805,264 Building and improvements 4,118,785 4,053,125 Less:
accumulated depreciation (259,826 ) (201,525 )
Total real estate
investments, net $ 4,655,435 $
4,656,864 Cash and cash equivalents 163,509 67,529
Restricted cash 40,326 12,904 Investment in unconsolidated equity
investments 114,880 101,807 Assets held for sale, net 14,741 —
Tenant and other receivables, net 65,976 72,795 Acquired lease
assets, net of accumulated amortization of $174,792 and $133,710
563,231 618,680 Other assets 68,808 72,948
Total
assets $ 5,686,906 $
5,603,527 Liabilities and Equity:
Liabilities: Senior unsecured revolving credit facility $
70,955 $ 65,837 Exchangeable senior notes, net 110,154 108,832
Mortgage notes payable, net 495,404 558,642 Senior unsecured notes,
net 496,584 496,464 Senior unsecured term loans 1,225,000
1,225,000 Total long-term debt, net 2,398,097 2,454,775
Accounts payable and accrued expenses 39,738 58,380 Dividends
payable 57,597 53,074 Below market lease liabilities, net of
accumulated amortization of $26,091 and $26,416 175,635 230,183
Liabilities related to assets held for sale 7,960 — Other
liabilities 43,748 46,081
Total liabilities
$ 2,722,775 $ 2,842,493
Commitments and contingencies Noncontrolling interest in the
Operating Partnership 6,412 8,643
Equity:
Common shares, par value $0.01,
151,889,880 and 140,647,971 issued and outstanding at June 30, 2017
andDecember 31, 2016, respectively
1,519 1,406
Series A cumulative redeemable preferred
shares, par value $0.01, liquidation preference $87,500,
and3,500,000 shares authorized, issued and outstanding at June 30,
2017 and December 31, 2016
84,394 84,394 Additional paid-in-capital 4,187,431 3,887,793
Accumulated other comprehensive loss (1,655 ) (4,128 ) Accumulated
deficit (1,313,607 ) (1,216,753 )
Total shareholders' equity
$ 2,958,082 $ 2,752,712 Noncontrolling
interest in other partnerships (363 ) (321 )
Total equity
$ 2,957,719 $ 2,752,391
Total liabilities and equity $ 5,686,906
$ 5,603,527
Gramercy Property Trust
Condensed Consolidated Statements of
Operations
(Unaudited, dollar amounts in
thousands, except per share data)
Three Months Ended Six Months Ended June
30, June 30, 2017 2016
2017 2016 Revenues Rental
revenue $ 108,261 $ 98,517 $ 211,543 $ 190,612 Third-party
management fees 1,638 18,310 6,230 23,356 Operating expense
reimbursements 19,628 21,905 39,996 44,487 Other income 1,838
693 3,590 1,515
Total revenues
$ 131,365 $ 139,425
$ 261,359 $ 259,970
Operating Expenses Property operating expenses 23,219 23,510
46,405 47,679 Property management expenses 2,435 5,591 5,519 10,112
Depreciation and amortization 62,176 60,538 124,393 118,786 General
and administrative expenses 9,100 8,005 17,856 15,727 Acquisition
expenses — 4,312 — 4,722 Total
operating expenses 96,930 101,956
194,173
197,026 Operating Income $
34,435 $ 37,469 $ 67,186
$ 62,944 Other Expenses: Interest expense (23,239 )
(16,909 ) (46,295 ) (38,862 ) Net impairment recognized in earnings
— — (4,890 ) — Equity in net income (loss) of unconsolidated equity
investments 248 (168 ) 154 (2,923 ) Gain on dissolution of
previously held U.S. unconsolidated equity investment interests —
7,229 — 7,229 Gain (loss) on extinguishment of debt 268 (1,356 ) 60
(7,113 ) Impairment of real estate investments (5,580 ) —
(18,351 ) —
Income (loss) from continuing operations
before provision for taxes $ 6,132 $
26,265 $ (2,136 ) $
21,275 Provision for taxes (147 ) (2,700 ) 49 (3,403
)
Income (loss) from continuing operations $
5,985 $ 23,565 $ (2,087 )
$ 17,872 Income (loss) from discontinued operations
before gain on extinguishment of debt (28 ) 58 (52 ) 2,768 Gain on
extinguishment of debt — — — 1,930
Income (loss) from discontinued operations $
(28 ) $ 58 $ (52
) $ 4,698 Income (loss) before net gain
on disposals 5,957 23,623 (2,139 ) 22,570 Gain on sale of European
unconsolidated equity investment interests held with a related
party — 5,341 — 5,341 Net gain on disposals 2,002 —
19,379 —
Net income $ 7,959
$ 28,964 $ 17,240 $
27,911 Net income (loss) attributable to noncontrolling
interest 113 (51 ) (41 ) 69
Net income
attributable to Gramercy Property Trust 8,072
28,913 17,199 27,980 Preferred share dividends
(1,558 ) (1,558 ) (3,117 ) (3,117 )
Net income available to
common shareholders $ 6,514 $
27,355 $ 14,082 $
24,863 Basic earnings per share: Net income
from continuing operations, after preferred dividends $ 0.04 $ 0.19
$ 0.09 $ 0.14 Net income (loss) from discontinued operations —
— $ — $ 0.03
Net income available to
common shareholders $ 0.04 $
0.19 $ 0.09 $ 0.17
Diluted earnings per share: Net income from
continuing operations, after preferred dividends $ 0.04 $ 0.19 $
0.09 $ 0.14 Net income (loss) from discontinued operations —
— $ — $ 0.03
Net income available to common
shareholders $ 0.04 $ 0.19
$ 0.09 $ 0.17
Basic weighted average common shares outstanding
148,542,916 140,776,976
144,746,251 140,664,885 Diluted
weighted average common shares outstanding 149,914,443
142,514,202 145,965,936
142,088,590
Gramercy Property Trust
Reconciliation of Non-GAAP Financial
Measures
(Unaudited, dollar amounts in
thousands, except per share data)
Three Months Ended Six Months Ended June
30, June 30, 2017 2016
2017 2016 Net income attributable to
common shareholders $ 6,514 $ 27,355 $ 14,082 $ 24,863 Add:
Depreciation and amortization 62,176 60,538 124,393 118,786 FFO
adjustments for unconsolidated equity investments 2,337 7,465 4,590
18,771 Net income (loss) attributable to noncontrolling interest
(113 ) 51 41 (69 ) Net (income) loss from discontinued operations
28 (58 ) 52 (4,698 ) Impairment of real estate investments 5,580 —
18,351 — Less: Non-real estate depreciation and amortization (200 )
(231 ) (408 ) (467 ) Gain on dissolution of previously held U.S.
unconsolidated equity investment interests — (7,229 ) — (7,229 )
Gain on sale of European unconsolidated equity investment interests
held with a related party — (5,341 ) — (5,341 ) Net gain on
disposals (2,002 ) — (19,379 ) —
Funds from
operations attributable to common shareholders and unitholders
$ 74,320 $ 82,550
$ 141,722 $ 144,616 Add:
Acquisition costs — 4,312 — 4,722 Core FFO adjustments for
unconsolidated equity investments — 2,798 — 6,921
Other-than-temporary impairments on retained bonds — — 4,890 —
Transaction costs 189 — 189 — (Gain) loss on extinguishment of debt
(268 ) 1,356 (60 ) 5,183 Net income from discontinued operations
related to properties — 149 — 4,793 Mark-to-market on interest rate
swaps — (2,564 ) (46 ) (734 )
Core funds from operations
attributable to common shareholders and unitholders $
74,241 $ 88,601 $
146,695 $ 165,501 Add: Non-cash
share-based compensation expense 2,004 1,272 4,058 2,422
Amortization of market lease assets 2,797 3,682 5,705 7,676
Amortization of deferred financing costs and non-cash interest
1,367 78 2,207 195 Amortization of lease inducement costs 87 87 173
173 Non-real estate depreciation and amortization 200 231 408 467
Amortization of free rent received at property acquisition 236 417
540 756 Less: AFFO adjustments for unconsolidated equity
investments (21 ) (1,232 ) (7 ) (409 ) Straight-lined rent (7,458 )
(5,955 ) (14,718 ) (12,716 ) Amortization of market lease
liabilities (7,564 ) (9,292 ) (11,105 ) (13,449 )
Adjusted funds
from operations attributable to common shareholders and
unitholders $ 65,889 $
77,889 $ 133,956 $
150,616 Funds from operations per share –
basic $ 0.50 $ 0.58
$ 0.98 $ 1.02 Funds
from operations per share – diluted $ 0.49
$ 0.58 $ 0.96 $
1.02 Core funds from operations per share –
basic $ 0.50 $ 0.63
$ 1.01 $ 1.17 Core
funds from operations per share – diluted $ 0.49
$ 0.62 $ 1.00
$ 1.16 Adjusted funds from operations per
share – basic $ 0.44 $ 0.55
$ 0.92 $ 1.07
Adjusted funds from operations per share – diluted $
0.44 $ 0.55 $ 0.91
$ 1.06 Basic weighted average
common shares outstanding – EPS 148,542,916 140,776,976 144,746,251
140,664,885 Weighted average partnership units held by
noncontrolling interest 560,443 402,769 590,547
430,435
Weighted average common shares and units
outstanding 149,103,359 141,179,745
145,336,798 141,095,320 Diluted
weighted average common shares and common share equivalents
outstanding – EPS 149,914,443 142,514,202 145,965,936 142,088,590
Weighted average partnership units held by noncontrolling interest
560,443 — 590,547 — Weighted average share-based payment awards
597,543 — 594,460 —
Diluted weighted
average common shares and units outstanding 151,072,429
142,514,202 147,150,943
142,088,590
Disclaimers
Non-GAAP Financial Measures
The Company has used non-GAAP financial measures as defined by
SEC Regulation G in this press release. A reconciliation of each
non-GAAP financial measure and the comparable GAAP financial
measure can be found in this release.
Funds from operations (“FFO”): 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 and sales of
depreciable operating properties, plus real estate-related
depreciation and amortization (excluding amortization of deferred
financing costs), less distributions to noncontrolling interests
and gains/losses from discontinued operations and after adjustments
for unconsolidated partnerships and joint ventures.
Core FFO and adjusted funds from operations (“AFFO”): Core FFO
and AFFO are Company defined measures. CORE FFO is presented
excluding transaction costs, gain (loss) on extinguishment of debt,
other-than-temporary impairments on retained bonds, mark-to-market
on interest rate swaps, and one-time charges. AFFO of the Company
also excludes non-cash stock-based compensation expense,
amortization of above and below market leases, amortization of
deferred financing costs and non-cash interest, amortization of
lease inducement costs, non-real estate depreciation and
amortization, amortization of free rent received at property
acquisition, and straight-line rent. The Company believes that Core
FFO and AFFO are useful supplemental measures regarding the
Company's operating performances as they provide a meaningful and
consistent comparison of the Company's operating performance and
allow investors to more easily compare the Company's operating
results.
FFO, Core FFO and AFFO do not represent cash generated from
operating activities in accordance with GAAP and should not be
considered as alternatives to net income (determined in accordance
with GAAP), as indications of our financial performance, or to cash
flow from operating activities as measures of our liquidity, nor
are they entirely indicative of funds available to fund our cash
needs, including our ability to make cash distributions. Our
calculations of FFO, Core FFO and AFFO may be different from the
calculations used by other companies and, therefore, comparability
may be limited.
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, in the Company's Quarterly
Reports on Form 10-Q and in the Company's Current Reports on
Form 8-K. 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 Securities and
Exchange Commission.
No Solicitation
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any of the securities, nor shall
there be any sale of these securities, in any state or jurisdiction
in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any such state or jurisdiction.
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Gramercy Property TrustJon W. Clark, 888-686-0112Chief Financial
OfficerorAshley M. Mancuso, 888-686-0112Investor Relations
Gramercy Property Trust (NYSE:GPT)
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