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Griffin Capital Essential Asset REIT II Reports First Quarter 2016 Results

Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the first quarter 2016.

Results and Accomplishments for the First Quarter 2016

• The company acquired the Toshiba TEC property for $35.8 million. The property, which totals 200,000 square feet and is located in Durham, North Carolina, is leased on an absolute net basis and in its entirety to Toshiba TEC Corporation.

• The weighted average remaining lease term was approximately 8.9 years with average annual rent increases of approximately 2 percent.

• The company’s portfolio was 100 percent occupied and leased.

• Modified funds from operations was approximately $3.8 million for the quarter ended March 31, 2016. Funds from operations was approximately $4.5 million.

• On February 25, 2016, the company entered into an interest rate swap agreement to hedge certain existing LIBOR-based, variable rate debt. The interest rate swap is effective for the period, from April 1, 2016 to December 12, 2018 with a notional amount of $100 million and a fixed rate of 0.74 percent.

• As of March 31, 2016, the company issued 24,199,985 and 13,935,183 shares of Class A and Class T common stock, respectively, for gross proceeds of approximately $240.8 million and $139.2 million, respectively, excluding DRIP shares and stock distributions. As of March 31, 2016, 746,851 and 88,248 shares of Class A and Class T common stock had been issued pursuant to the DRIP and stock distributions, respectively.

In its most recent quarterly filing with the Securities and Exchange Commission, the REIT reported its income from operations totaled $1.4 million in the first quarter of 2016, compared to a $775,150 loss for the same period last year.

Significant Events Subsequent to March 31, 2016

• On April 25, 2016, the company reallocated 100 million and 50 million authorized but unissued shares of Class A and Class T common stock, respectively, as Class I common stock. The company is currently offering up to approximately $1.6 billion and $0.2 billion in shares of Class T and Class I common stock, respectively.

• On May 17, 2016, the company acquired a property for a purchase price of $44 million, consisting of approximately 142,700 square feet and located in San Jose, CA. This property is leased on a triple-net basis and in its entirety to NETGEAR, Inc.

Griffin Capital Essential Asset REIT II’s portfolio consists 16 office, industrial, data center, and distribution properties totaling approximately 3.4 million rentable square feet with a total acquisition value of approximately $515 million. The company went effective in July 2014 and has raised $421 million in investor equity since inception, according to the most recent Stanger Market Pulse.

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