Griffin Announces Fiscal 2020 Third Quarter Leasing and Update on Rent Collection
17 Septiembre 2020 - 4:05PM
Griffin Industrial Realty, Inc. (Nasdaq: GRIF)
(“Griffin”) announced the following updates on leasing and
the impact of the COVID-19 pandemic on rent collections:
Leasing
Griffin reported the following for its industrial/warehouse
portfolio for the three months ended August 31, 2020 (the “2020
third quarter”):
|
|
|
Weighted |
Weighted Avg. |
Weighted Avg. Rent Growth3 |
|
Number of Leases1 |
Square Feet |
Avg. Lease Term in Years |
Lease Costs PSF per Year2 |
Straight-line Basis |
Cash Basis |
New Leases |
- |
- |
- |
- |
- |
- |
Renewals |
3 |
83,000 |
6.1 |
$0.51 |
16.5% |
3.6% |
Total /
Avg. |
3 |
83,000 |
6.1 |
$0.51 |
16.5% |
3.6% |
Griffin’s industrial/warehouse portfolio’s percentage leased was
as follows:
|
Aug. 31, 2020 |
May 31, 2020 |
Feb. 29, 2020 |
|
|
|
|
Percentage Leased |
94.3% |
94.3% |
94.9% |
Percentage Leased – Stabilized Properties4 |
99.7% |
99.7% |
99.1% |
Approximately 79,000 square feet of the 83,000 square feet
renewed this quarter was in Griffin’s New England Tradeport
industrial park in Windsor and East Granby, Connecticut. One of
these leases was an early 10-year, 5-month extension of 40,000
square feet leased as production and distribution space to an
international quick service restaurant chain and the other was an
early 2-year extension of 39,000 square feet of distribution space
leased to one of the largest e-commerce providers of home
furnishings. The third renewal was for a 3-year extension of a
smaller tenant in 170 Sunport Lane, an approximately 68,000
square foot industrial/warehouse building in Orlando, Florida that
Griffin acquired mostly vacant in the fiscal 2020 second quarter.
As of August 31, 2020, Griffin’s thirty industrial/warehouse
buildings aggregated approximately 4,206,000 square feet and
represented 91% of Griffin’s total real estate portfolio.
For Griffin’s office/flex portfolio, one lease was extended for
a term of 5 years and 1 month, in exchange for the tenant’s
reduction in premises from approximately 4,500 square feet to
approximately 2,200 square feet. Griffin’s twelve office/flex
buildings, which aggregate approximately 433,000 square feet and
represent 9% of Griffin’s total real estate portfolio, were 64.7%
leased as of August 31, 2020, as compared to 65.2% leased as of May
31, 2020.
Griffin’s total real estate portfolio of approximately 4,639,000
square feet was 91.5% leased as of August 31, 2020 (96.2% leased
excluding 160 and 180 International Drive and 170 Sunport Lane), as
compared to a portfolio of 4,639,000 square feet that was 91.6%
leased as of May 31, 2020.
Rent Collections/COVID-19 Impact
COVID-19 has not had a material impact on Griffin’s rent
collection during the 2020 third quarter and as of the date of this
press release. Griffin collected 99.9% of rent in each of June,
July and August, inclusive of rent relief. Griffin entered into
agreements with two tenants that granted rent relief aggregating
approximately 0.5% of Griffin’s anticipated total annual rental
revenue for fiscal year 2020. The much larger of these two tenants
is a subsidiary of a Fortune 500 company and the rent relief was
granted as part of an early 5-year renewal of that tenant’s lease
that was executed subsequent to August 31, 2020. Griffin has not
received any new requests for rent relief subsequent to
April 30, 2020 and no previous requests remain
outstanding.
About Griffin
Griffin is a real estate business principally engaged in
developing, acquiring, managing and leasing industrial/warehouse
properties. Griffin currently owns 42 buildings totaling
approximately 4.6 million square feet (4.2 million of which is
industrial/warehouse space) in Connecticut, Pennsylvania, North
Carolina and Florida in addition to over 3,400 acres of undeveloped
land.
1 Excludes leases with an initial term of twelve months or
less.
2 Weighted average lease costs per square foot per year reflects
total lease costs (tenant improvements and leasing commissions) per
square foot per year of the lease term.
3 Weighted average rent growth reflects the percentage change of
annualized rental rates between the previous leases and the current
leases. The rental rate change on a straight-line basis represents
average annual base rental payments on a straight-line basis for
the term of each lease including free rent periods. Cash basis rent
growth represents the change in starting rental rates per the lease
agreement on new and renewed leases signed during the period, as
compared to the previous ending rental rates for that same space.
The cash rent growth calculation excludes free rent periods. The
change in rental rate calculations excludes leases for first
generation space on properties acquired or developed by
Griffin.
4 Stabilized properties reflect buildings that have reached 90%
leased or have been in-service for at least one year since
development completion or acquisition date, whichever is earlier.
Stabilized properties exclude 160 and 180 International Drive in
the Charlotte, North Carolina area that were completed in the 2019
fourth quarter and were 37.1% leased as of August 31, 2020 and 170
Sunport Lane, which was 25.9% leased as of August 31, 2020.
CONTACT:Anthony
GaliciChief Financial
Officer(860) 286-1307
agalici@griffinindustrial.com
Ashley PizzoDirector, IR & Capital
Markets(212) 218-7914
apizzo@griffinindustrial.com
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