Seeking Alpha

Gramercy details equity raise, business plan update

  • The reason for the $47.4M private placement of stock as opposed to a secondary offering is that Gramercy is not S-3 eligible as long as there are unpaid accrued preferred dividends, says Gramercy Capital (GPT +10.9%) CEO Gordon DuGan on a conference call discussing the issuance as well as updating the business plan (webcast) (presentation slides).
  • The $130M in identified pipeline investments talked about this morning includes 7 transactions (all under contract) with an 8.47% GAAP cap rate (7.4% cash). The average lease term is 12.9 years with about $9.7M in expected year-one cash NOI. This compares to 19 investments closed over the last year at an acquisition GAAP cap rate of 9.1% throwing off $30.8M in year-one cash NOI.
  • Other than saying 2014, the company has no guidance on the exact timing or the expected size of the common dividend. "That would be the next step," says DuGan.
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