Griffin Capital Essential Asset REIT Reports MFFO Growth of 82%
Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the first quarter of 2016.
Results and Accomplishments for the First Quarter 2016
• The weighted average remaining lease term of the company’s portfolio was approximately 7.5 years with average annual rent increases of approximately 2.0 percent.
• Modified funds from operations was approximately $41.1 million for the quarter, representing year-over-year growth of approximately 82 percent for the same period in 2015. Funds from operations was approximately $44.4 million and $23.2 million for the quarters ended March 31, 2016 and 2015, respectively.
• On March 29, 2016, the company exercised its right to increase the total commitments on its senior unsecured credit facility. As a result, the total commitments on the unsecured term loan increased from $640.0 million to $715.0 million.
According to the company’s quarterly filing with the SEC, net income for the first quarter of 2016 totaled $12.4 million, compared to $11.1 million for the same period last year.
Significant Events Subsequent to March 31, 2016
• On April 27, 2016, the company acquired the remaining 90 percent beneficial ownership interest of Griffin Capital (Nashville) Investors, DST, which property is leased in its entirety to HealthSpring, Inc., from unaffiliated third party investors for a purchase price of $41.3 million. The REIT issued approximately $13.8 million in limited partnership units to those investors who elected to exchange their ownership interest.
Griffin Capital Essential Asset REIT’s portfolio consists of 76 office and industrial distribution properties totaling 18.9 million rentable square feet representing total REIT capitalization of approximately $3.4 billion. The company was formed in August 2008, and since March 31, 2016, has raised approximately $1.4 billion in investor equity.
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