Griffin Capital Essential Asset REIT, Inc. (the "REIT") announced its results for the quarter and year ended December 31, 2019. The REIT reported cumulative leases signed in 2019 of 1.8 million square feet. In addition, as a result of becoming an internally managed company, the REIT experienced a significant reduction in corporate operating expenses(1) which declined by over 40% compared to the year ended December 31, 2018.
"We are pleased with our performance and accomplishments over the last year," said Michael Escalante, Chief Executive Officer of the REIT. "2019 was a transformative year with the completion of our merger in April to grow into a $4.6 billion internally managed REIT while continually demonstrating our experience as operators of real estate with robust leasing activity and accretive capital transactions. These achievements will meaningfully contribute to our future performance and provide a solid example of our proactive approach to managing net lease real estate."
As of December 31, 2019, the REIT's portfolio(2) consisted of 99 office and industrial properties (122 buildings), encompassing approximately 27 million rentable square feet of space in 25 states.
Highlights and Accomplishments for the Quarter and Year Ended December 31, 2019:
Financial Results
Non-GAAP Measures
Portfolio Overview
Leasing Activity
Strategic Dispositions
Completion of Merger
Subsequent Events
About Griffin Capital Essential Asset REIT, Inc.
Griffin Capital Essential Asset REIT, Inc. is a self-managed, publicly registered, non-traded REIT with a portfolio consisting primarily of single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type, and lease duration. Griffin Capital Essential Asset REIT, Inc.'s portfolio, as of December 31, 2019, consists of 99 office and industrial properties (122 buildings), totaling 27 million rentable square feet, located in 25 states, representing a total enterprise value of approximately $4.6 billion.
Additional information is available at www.gcear.com.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to: uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of our real estate investment strategy; uncertainties relating to financing availability and capital proceeds; uncertainties relating to the closing of property acquisitions; uncertainties relating to the timing and availability of distributions; and other risk factors as outlined in the REIT's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the "SEC"). This is neither an offer nor a solicitation to purchase securities.
______________________________ |
1 Corporate operating expenses included general and administrative expenses as well as fees and expense reimbursements paid to the Company's former Sponsor, Griffin Capital Company, LLC, and its affiliates. The calculation does not include those fees and expenses paid by Griffin Capital Essential Asset REIT II, Inc., prior to the merger Griffin Capital Essential Asset REIT, Inc. but if included would result in a decline of approximately 50%. |
2 Excludes the property information related to the acquisition of an 80% ownership interest in a joint venture with affiliates of Digital Realty Trust, L.P. |
3 Total enterprise value includes the outstanding debt balance (excluding deferred financing costs and premium/discounts), plus unconsolidated debt - pro rata share, plus preferred equity, plus total outstanding shares multiplied by the NAV. Amount includes $80.0 million of borrowing used to redeem investors in January 2020. Total outstanding shares includes limited partnership units issued and shares issued pursuant to the DRP, net of redemptions. The increase in capitalization is a result of the merger on April 30, 2019. Prior period balance was restated due to change in methodology in calculating market capitalization. |
4 Net rent is based on (a) the contractual base rental payments assuming the lease requires the tenant to reimburse us for certain operating expenses or the property is self-managed by the tenant and the tenant is responsible for all, or substantially all, of the operating expenses; or (b) contractual rent payments less certain operating expenses that are our responsibility for the 12-month period subsequent to December 31, 2019 and includes assumptions that may not be indicative of the actual future performance of a property, including the assumption that the tenant will perform its obligations under its lease agreement during the next 12 months. |
5 Approximately 65.5% of our portfolio's net rental revenue was generated by properties leased to tenants and/or guarantors with investment grade credit ratings or whose non-guarantor parent companies have investment grade ratings or what management believes are generally equivalent ratings; 54.5% generated from tenants with a Nationally Recognized Statistical Rating Organization (NRSRO) credit rating, and the remaining 11.0% from a non-NRSRO, but having a rating that we believe is generally equivalent to an NRSRO investment grade rating. Bloomberg's default risk rating is an example of a non-NRSRO rating. |
6 FFO, as described by the National Association of Real Estate Investment Trusts ("NAREIT"), is adjusted for non-controlling interest and redeemable preferred distributions. |
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except units and share amounts) |
|||||||
|
December 31, |
||||||
|
2019 |
|
2018 |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
54,830 |
|
|
$ |
48,478 |
|
Restricted cash |
58,430 |
|
|
15,807 |
|
||
Real estate: |
|
|
|
||||
Land |
458,339 |
|
|
350,470 |
|
||
Building and improvements |
3,043,527 |
|
|
2,165,016 |
|
||
Tenant origination and absorption cost |
744,773 |
|
|
530,181 |
|
||
Construction in progress |
31,794 |
|
|
27,697 |
|
||
Total real estate |
4,278,433 |
|
|
3,073,364 |
|
||
Less: accumulated depreciation and amortization |
(668,104 |
) |
|
(538,412 |
) |
||
Total real estate, net |
3,610,329 |
|
|
2,534,952 |
|
||
Investments in unconsolidated entities |
11,028 |
|
|
30,565 |
|
||
Intangible assets, net |
12,780 |
|
|
17,099 |
|
||
Deferred rent receivable |
73,012 |
|
|
55,163 |
|
||
Deferred leasing costs, net |
49,390 |
|
|
29,958 |
|
||
Goodwill |
229,948 |
|
|
229,948 |
|
||
Due from affiliates |
837 |
|
|
19,685 |
|
||
Right of use asset |
41,347 |
|
|
? |
|
||
Other assets |
33,571 |
|
|
31,120 |
|
||
Total assets |
$ |
4,175,502 |
|
|
$ |
3,012,775 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
Debt, net |
$ |
1,969,104 |
|
|
$ |
1,353,531 |
|
Restricted reserves |
14,064 |
|
|
8,201 |
|
||
Interest rate swap liability |
24,146 |
|
|
6,962 |
|
||
Redemptions payable |
96,648 |
|
|
? |
|
||
Distributions payable |
15,530 |
|
|
12,248 |
|
||
Due to affiliates |
10,883 |
|
|
42,406 |
|
||
Intangible liabilities, net |
31,805 |
|
|
23,115 |
|
||
Lease liability |
45,020 |
|
|
? |
|
||
Accrued expenses and other liabilities |
96,389 |
|
|
80,616 |
|
||
Total liabilities |
2,303,589 |
|
|
1,527,079 |
|
||
Commitments and contingencies |
|
|
|
||||
Perpetual convertible preferred shares |
125,000 |
|
|
125,000 |
|
||
Common stock subject to redemption |
20,565 |
|
|
11,523 |
|
||
Noncontrolling interests subject to redemption; 554,110 and 531,161 units as of December 31, 2019 and December 31, 2018, respectively |
4,831 |
|
|
4,887 |
|
||
Stockholders' equity: |
|
|
|
||||
Common stock, $0.001 par value; 800,000,000 shares authorized; 227,853,720 and 174,278,341 shares
|
228 |
|
|
174 |
|
||
Additional paid-in-capital |
2,060,604 |
|
|
1,556,770 |
|
||
Cumulative distributions |
(715,792 |
) |
|
(570,977 |
) |
||
Accumulated earnings |
153,312 |
|
|
128,525 |
|
||
Accumulated other comprehensive loss |
(21,875 |
) |
|
(2,409 |
) |
||
Total stockholders' equity |
1,476,477 |
|
|
1,112,083 |
|
||
Noncontrolling interests |
245,040 |
|
|
232,203 |
|
||
Total equity |
1,721,517 |
|
|
1,344,286 |
|
||
Total liabilities and equity |
$ |
4,175,502 |
|
|
$ |
3,012,775 |
|
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC. |
|||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
(in thousands, except share and per share amounts) |
|||||||||||
|
Year Ended December 31, |
||||||||||
|
2019 |
|
2018 |
|
2017 |
||||||
Revenue: |
|
|
|
|
|
||||||
Rental income |
$ |
387,108 |
|
|
$ |
336,359 |
|
|
$ |
346,490 |
|
Expenses: |
|
|
|
|
|
||||||
Property operating expense |
55,301 |
|
|
49,509 |
|
|
50,918 |
|
|||
Property tax expense |
37,035 |
|
|
44,662 |
|
|
44,980 |
|
|||
Property management fees to non-affiliates |
3,528 |
|
|
? |
|
|
? |
|
|||
Asset management fees to affiliates |
? |
|
|
23,668 |
|
|
23,499 |
|
|||
Property management fees to affiliates |
? |
|
|
9,479 |
|
|
9,782 |
|
|||
Self administration transaction expense |
? |
|
|
1,331 |
|
|
? |
|
|||
General and administrative expenses |
26,078 |
|
|
6,968 |
|
|
7,322 |
|
|||
Corporate operating expenses to affiliates |
2,745 |
|
|
3,594 |
|
|
2,652 |
|
|||
Impairment provision |
30,734 |
|
|
? |
|
|
8,460 |
|
|||
Depreciation and amortization |
153,425 |
|
|
119,168 |
|
|
116,583 |
|
|||
Total expenses |
308,846 |
|
|
258,379 |
|
|
264,196 |
|
|||
Income before other income and (expenses) |
78,262 |
|
|
77,980 |
|
|
82,294 |
|
|||
Other income (expenses): |
|
|
|
|
|
||||||
Interest expense |
(73,557 |
) |
|
(55,194 |
) |
|
(51,015 |
) |
|||
Management fee revenue from affiliates |
6,368 |
|
|
? |
|
|
? |
|
|||
Other income, net |
1,340 |
|
|
275 |
|
|
537 |
|
|||
Loss from investment in unconsolidated entities |
(5,307 |
) |
|
(2,254 |
) |
|
(2,065 |
) |
|||
Gain from disposition of assets |
29,938 |
|
|
1,231 |
|
|
116,382 |
|
|||
Net income |
37,044 |
|
|
22,038 |
|
|
146,133 |
|
|||
Distributions to redeemable preferred shareholders |
(8,188 |
) |
|
(3,275 |
) |
|
? |
|
|||
Net income attributable to noncontrolling interests |
(3,749 |
) |
|
(789 |
) |
|
(5,120 |
) |
|||
Net income attributable to controlling interest |
25,107 |
|
|
17,974 |
|
|
141,013 |
|
|||
Distributions to redeemable noncontrolling interests attributable to common stockholders |
(320 |
) |
|
(356 |
) |
|
(356 |
) |
|||
Net income attributable to common stockholders |
$ |
24,787 |
|
|
$ |
17,618 |
|
|
$ |
140,657 |
|
Net income attributable to common stockholders per share, basic and diluted |
$ |
0.11 |
|
|
$ |
0.10 |
|
|
$ |
0.80 |
|
Weighted average number of common shares outstanding, basic and diluted |
222,116,812 |
|
|
169,492,659 |
|
|
175,611,890 |
|
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC. |
Funds from Operations and Adjusted Funds from Operations |
(Unaudited; in thousands) |
Funds from Operations and Adjusted Funds from Operations
Our management believes that historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient.
Management is responsible for managing interest rate, hedge and foreign exchange risks. To achieve our objectives, we may borrow at fixed rates or variable rates. In order to mitigate our interest rate risk on certain financial instruments, if any, we may enter into interest rate cap agreements or other hedge instruments and in order to mitigate our risk to foreign currency exposure, if any, we may enter into foreign currency hedges. We view fair value adjustments of derivatives, impairment charges and gains and losses from dispositions of assets as non-recurring items or items which are unrealized and may not ultimately be realized, and which are not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance.
In order to provide a more complete understanding of the operating performance of a REIT, the National Association of Real Estate Investment Trusts ("NAREIT") promulgated a measure known as Funds from Operations ("FFO"). FFO is defined as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property, adding back asset impairment write-downs, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships, joint ventures and preferred distributions. Because FFO calculations exclude such items as depreciation and amortization of real estate assets and gains and losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs. As a result, we believe that the use of FFO, together with the required GAAP presentations, provides a more complete understanding of our performance relative to our competitors and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. It should be noted, however, that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do, making comparisons less meaningful.
Additionally, we use Adjusted Funds from Operations ("AFFO") as a non-GAAP financial measure to evaluate our operating performance. AFFO is a measure used among our peer group, which includes daily NAV REITs. We also believe that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, we believe AFFO is useful in comparing the sustainability of our operating performance with the sustainability of the operating performance of other real estate companies.
Management believes that AFFO is a beneficial indicator of our ongoing portfolio performance and ability to sustain our current distribution level. More specifically, AFFO isolates the financial results of our operations. AFFO, however, is not considered an appropriate measure of historical earnings as it excludes certain significant costs that are otherwise included in reported earnings. Further, since the measure is based on historical financial information, AFFO for the period presented may not be indicative of future results or our future ability to pay our dividends. By providing FFO and AFFO, we present information that assists investors in aligning their analysis with management's analysis of long-term operating activities. As explained below, management's evaluation of our operating performance excludes items considered in the calculation of AFFO based on the following economic considerations:
For all of these reasons, we believe the non-GAAP measures of FFO and AFFO, in addition to income (loss) from operations, net income (loss) and cash flows from operating activities, as defined by GAAP, are helpful supplemental performance measures and useful to investors in evaluating the performance of our real estate portfolio. However, a material limitation associated with FFO and AFFO is that they are not indicative of our cash available to fund distributions since other uses of cash, such as capital expenditures at our properties and principal payments of debt, are not deducted when calculating FFO and AFFO. The use of AFFO as a measure of long-term operating performance on value is also limited if we do not continue to operate under our current business plan as noted above. AFFO is useful in assisting management and investors in assessing our ongoing ability to generate cash flow from operations and continue as a going concern in future operating periods, and in particular, after the offering and acquisition stages are complete. However, FFO and AFFO are not useful measures in evaluating NAV because impairments are taken into account in determining NAV but not in determining FFO and AFFO. Therefore, FFO and AFFO should not be viewed as a more prominent measure of performance than income (loss) from operations, net income (loss) or to cash flows from operating activities and each should be reviewed in connection with GAAP measurements.
Neither the SEC, NAREIT, nor any other applicable regulatory body has opined on the acceptability of the adjustments contemplated to adjust FFO in order to calculate AFFO and its use as a non-GAAP performance measure. In the future, the SEC or NAREIT may decide to standardize the allowable exclusions across the REIT industry, and we may have to adjust the calculation and characterization of this non-GAAP measure.
Our calculation of FFO and AFFO is presented in the following table for the years ended December 31, 2019, 2018, and 2017 (in thousands):
|
Year Ended December 31, |
||||||||||
|
2019 |
|
2018 |
|
2017 |
||||||
Net income |
$ |
37,044 |
|
|
$ |
22,038 |
|
|
$ |
146,133 |
|
Adjustments: |
|
|
|
|
|
||||||
Depreciation of building and improvements |
80,393 |
|
|
60,120 |
|
|
55,982 |
|
|||
Amortization of leasing costs and intangibles |
73,084 |
|
|
59,020 |
|
|
60,573 |
|
|||
Impairment provision |
30,734 |
|
|
? |
|
|
8,460 |
|
|||
Equity interest of depreciation of building and improvements - unconsolidated entities |
2,800 |
|
|
2,594 |
|
|
2,496 |
|
|||
Equity interest of amortization of intangible assets - unconsolidated entities |
4,632 |
|
|
4,644 |
|
|
4,674 |
|
|||
Gain from sale of depreciable operating property |
(29,938 |
) |
|
(1,231 |
) |
|
(116,382 |
) |
|||
Equity interest of impairment - unconsolidated entities |
6,927 |
|
|
? |
|
|
? |
|
|||
Equity interest of gain on sale - unconsolidated entities |
(4,128 |
) |
|
? |
|
|
? |
|
|||
FFO |
$ |
201,548 |
|
|
$ |
147,185 |
|
|
$ |
161,936 |
|
Distributions to redeemable preferred shareholders |
(8,188 |
) |
|
(3,275 |
) |
|
? |
|
|||
Distributions to noncontrolling interests |
(17,959 |
) |
|
(4,737 |
) |
|
(4,737 |
) |
|||
FFO, net of noncontrolling interest and redeemable preferred distributions |
$ |
175,401 |
|
|
$ |
139,173 |
|
|
$ |
157,199 |
|
Reconciliation of FFO to AFFO: |
|
|
|
|
|
||||||
FFO, net of noncontrolling interest and redeemable preferred distributions |
$ |
175,401 |
|
|
$ |
139,173 |
|
|
$ |
157,199 |
|
Adjustments: |
|
|
|
|
|
||||||
Acquisition fees and expenses to non-affiliates |
? |
|
|
1,331 |
|
|
? |
|
|||
Non-cash earn-out adjustment |
(1,461 |
) |
|
? |
|
|
? |
|
|||
Revenues in excess of cash received, net |
(19,519 |
) |
|
(8,571 |
) |
|
(11,372 |
) |
|||
Amortization of share-based compensation |
2,614 |
|
|
? |
|
|
? |
|
|||
Deferred rent - ground lease |
1,353 |
|
|
841 |
|
|
? |
|
|||
Amortization of above/(below) market rent |
(3,201 |
) |
|
(685 |
) |
|
1,689 |
|
|||
Amortization of debt premium/(discount) |
300 |
|
|
32 |
|
|
(414 |
) |
|||
Amortization of ground leasehold interests |
(52 |
) |
|
28 |
|
|
28 |
|
|||
Non-cash lease termination income |
(10,150 |
) |
|
(12,532 |
) |
|
(12,845 |
) |
|||
Financed termination fee payments received |
6,065 |
|
|
15,866 |
|
|
11,783 |
|
|||
Equity interest of revenues in excess of cash received (straight-line rents) - unconsolidated entities |
528 |
|
|
116 |
|
|
(311 |
) |
|||
Unrealized gains on investments (DCP) |
307 |
|
|
? |
|
|
? |
|
|||
Equity interest of amortization of above market rent - unconsolidated entities |
3,696 |
|
|
2,956 |
|
|
2,968 |
|
|||
Performance fee adjustment |
(2,604 |
) |
|
? |
|
|
? |
|
|||
Unrealized (gain) loss on derivatives |
? |
|
|
? |
|
|
(28 |
) |
|||
Dead deal costs |
252 |
|
|
? |
|
|
? |
|
|||
AFFO |
$ |
153,529 |
|
|
$ |
138,555 |
|
|
$ |
148,697 |
|
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC. |
|||||||||||||||
Adjusted EBITDA |
|||||||||||||||
(Unaudited; dollars in thousands) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended December 31, |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
ADJUSTED EBITDA(1): |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(2,043 |
) |
|
$ |
3,269 |
|
|
$ |
37,044 |
|
|
$ |
22,038 |
|
Adjustment to net income(2) |
? |
|
|
? |
|
|
(5,995 |
) |
|
? |
|
||||
Net (loss) income adjusted |
(2,043 |
) |
|
3,269 |
|
|
31,049 |
|
|
22,038 |
|
||||
Depreciation and amortization |
41,114 |
|
|
29,910 |
|
|
167,637 |
|
|
119,168 |
|
||||
Interest expense |
19,026 |
|
|
13,164 |
|
|
78,218 |
|
|
52,121 |
|
||||
Amortization - Deferred financing costs |
527 |
|
|
770 |
|
|
5,787 |
|
|
3,040 |
|
||||
Amortization - Debt premium |
109 |
|
|
8 |
|
|
301 |
|
|
31 |
|
||||
Amortization - In-place lease |
(562 |
) |
|
(550 |
) |
|
(4,749 |
) |
|
(685 |
) |
||||
Income taxes |
(83 |
) |
|
278 |
|
|
1,027 |
|
|
632 |
|
||||
Asset management fees |
? |
|
|
5,998 |
|
|
? |
|
|
23,668 |
|
||||
Property management fees to affiliates |
? |
|
|
2,430 |
|
|
? |
|
|
9,479 |
|
||||
Property management fees to non-affiliates |
907 |
|
|
? |
|
|
2,621 |
|
|
? |
|
||||
Acquisition fees and expenses |
? |
|
|
1,331 |
|
|
379 |
|
|
1,331 |
|
||||
Deferred rent |
(9,864 |
) |
|
1,639 |
|
|
(21,010 |
) |
|
(8,571 |
) |
||||
Termination Income (Non-Cash) |
? |
|
|
? |
|
|
(11,178 |
) |
|
? |
|
||||
Termination Income (Cash) |
3,057 |
|
|
? |
|
|
6,065 |
|
|
? |
|
||||
Lease Accounting True Up |
? |
|
|
? |
|
|
2,052 |
|
|
? |
|
||||
|
|
|
|
|
|
|
|
||||||||
Extraordinary Losses or Gains: |
|
|
|
|
|
|
|
||||||||
Gain on disposition |
(21,497 |
) |
|
(73 |
) |
|
(29,938 |
) |
|
(1,231 |
) |
||||
Gain (loss) from investment in unconsolidated entities |
(519 |
) |
|
? |
|
|
(4,128 |
) |
|
? |
|
||||
Impairment on Investment in Unconsolidated Entity - DRJV |
6,927 |
|
|
|
|
6,927 |
|
|
? |
|
|||||
Impairment Provision |
30,734 |
|
|
|
|
30,734 |
|
|
? |
|
|||||
Equity percentage of net (income) loss for the Parent's non-wholly owned direct and indirect subsidiaries |
819 |
|
|
637 |
|
|
2,509 |
|
|
2,254 |
|
||||
Equity percentage of EBITDA for the Parent's non-wholly owned direct and indirect subsidiaries |
2,174 |
|
|
2,264 |
|
|
11,107 |
|
|
8,967 |
|
||||
|
70,826 |
|
|
61,075 |
|
|
275,410 |
|
|
232,242 |
|
||||
Less: Capital reserves |
(1,291 |
) |
|
(931 |
) |
|
(5,150 |
) |
|
(3,682 |
) |
||||
Adjusted EBITDA (per credit facility agreement) |
$ |
69,535 |
|
|
$ |
60,144 |
|
|
$ |
270,260 |
|
|
$ |
228,560 |
|
|
|
|
|
|
|
|
|
||||||||
Principal paid and due |
$ |
1,674 |
|
|
$ |
1,598 |
|
|
$ |
6,577 |
|
|
$ |
6,494 |
|
Interest expense |
19,026 |
|
|
13,710 |
|
|
76,627 |
|
|
54,335 |
|
||||
Cash dividends on Preferred Stock (including any paid under the 2018 Preferred Documents) |
2,047 |
|
|
? |
|
|
8,188 |
|
|
? |
|
||||
|
$ |
22,747 |
|
|
$ |
15,308 |
|
|
$ |
91,392 |
|
|
$ |
60,829 |
|
Interest Coverage Ratio(3) |
3.65 |
|
|
4.39 |
|
|
3.53 |
|
|
4.21 |
|
||||
Fixed Charge Coverage Ratio(4) |
3.06 |
|
|
3.93 |
|
|
2.96 |
|
|
3.76 |
|
(1) |
Adjusted EBITDA, as defined in our credit facility agreement, is calculated as net income before interest, taxes, depreciation and amortization (EBITDA), plus acquisition fees and expenses, asset and property management fees, straight-line rents and in-place lease amortization for the period, further adjusted for acquisitions that have closed during the quarter and certain reserves for capital expenditures. | |
(2) |
Adjustment is a result of combined financial information from EA-1 and us. | |
(3) |
Interest coverage is the ratio of interest expense as if the corresponding debt was in place at the beginning of the period to adjusted EBITDA. | |
(4) |
Fixed charge coverage is the ratio of principal amortization for the period plus interest expense as if the corresponding debt was in place at the beginning of the period plus preferred unit distributions as if in place at the beginning of the period over adjusted EBITDA. |
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