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EL SEGUNDO, Calif., Nov. 14, 2012 (GLOBE NEWSWIRE) -- Griffin Capital Net Lease REIT, Inc. (the "REIT") today announced operating results for the company's third quarter ended September 30, 2012.
"Griffin Capital Net Lease REIT continued the strong momentum established at the beginning of the year and, through September, our portfolio grew nearly 64%, providing our investors greater diversification and stability to our portfolio cash flow," stated Kevin Shields, chairman and chief executive officer of the REIT, "This year we added four outstanding assets to our portfolio, occupied by tenants representing over 13% of the historic core of the Dow Jones 30 Industrials: AT&T, Westinghouse, GE and Travelers Indemnity." David Rupert, president of the REIT, added, "Not only have we continued to add high credit quality tenants, we have done so at favorable yields such that our weighted average going-in capitalization rate exceeds 8%1; this compares very favorably to our 4.3% average cost of debt – this accretive leverage is beneficial to our stockholders."
Highlights and Accomplishments Year-to-Date through September 30, 2012
In the first half of 2012 the REIT acquired four assets occupied by investment-grade rated tenants – AT&T Wireless, Westinghouse, GE Aviation Systems and Travelers Indemnity Group – with a total acquisition value of $105 million and a total of 520,000 square feet. The total dollar amount of the REIT's portfolio increased 64%, from $165 million at the end of 2011 to $270 million at the close of the second quarter, consisting of 2.82 million square feet of 100% occupied space.
At the beginning of the fourth quarter the REIT acquired two assets – Zeller Plastik and Northrop Grumman – with a total acquisitions value of $32.6 million and approximately 300,000 additional square feet. With these acquisitions, the portfolio acquisitions value is $302.6 million, with over 3.0 million square feet, an acquisition value increase of 83% from year end 2011.
68% of the portfolio rental revenue is generated by investment-grade rated companies.
The weighted average remaining lease term is 9.3 years with average annual rental rate increases of 2.3%.
Given the REIT's average 4.2% interest rate on our debt, there is currently a 380 basis point positive spread relative to the REIT's weighted average portfolio capitalization rate of 8.1%1. The REIT's leverage ratio relative to total capitalization is 53%.
Modified funds from operations, or MFFO, as defined by the Investment Program Association, equaled $2.3 million for the quarter, representing year-over-year growth of approximately 149% from the same quarter 2011. Funds from operations, or FFO, as defined by the National Association of Real Estate Investment Trusts, or NAREIT, equaled approximately $2.7 million, compared with $1.3 million during the third quarter 2011. (Please see financial reconciliation tables and notes at the end of this release for more information regarding MFFO and FFO.)
The REIT's $150 million credit facility was fully subscribed in the third quarter of 2012 in which KeyBank and Bank of America were joined with commitments from North Shore Bank & Trust (a subsidiary of Wintrust Financial Corporation), Regions Bank and Fifth Third Bank.
"We could not be more pleased with the growth in our portfolio thus far this year and the incredible support we receive from both our broker-dealer partners and the existing and new members of our lending group," concluded Mr. Shields.