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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