Griffin Announces Fiscal 2020 Third Quarter Leasing and Update on Rent Collection
Griffin Industrial Realty (GRIF) updated its leasing performance and COVID-19 impact for Q3 2020. The company reported a 99.9% rent collection rate in June, July, and August, despite granting 0.5% rent relief to two tenants. Renewals totaled 83,000 square feet with a 16.5% increase in straight-line rent. As of August 31, 2020, the industrial/warehouse portfolio was 91.5% leased. Griffin's office/flex buildings were 64.7% leased, down slightly from 65.2% in May. Overall, Griffin's real estate portfolio remains stable amid the pandemic.
- 99.9% rent collection rate in Q3 2020.
- Renewals totaled 83,000 square feet with a 16.5% increase in straight-line rent.
- 91.5% of total real estate portfolio leased.
- Office/flex buildings leased at 64.7%, slightly down from 65.2% in May.
- New industrial/warehouse leases reported as zero.
NEW YORK, Sept. 17, 2020 (GLOBE NEWSWIRE) -- 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 | |||
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 | |||
Percentage Leased – Stabilized Properties4 |
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
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
Griffin’s total real estate portfolio of approximately 4,639,000 square feet was
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
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
CONTACT:
Anthony Galici
Chief Financial Officer
(860) 286-1307
agalici@griffinindustrial.com
Ashley Pizzo
Director, IR & Capital Markets
(212) 218-7914
apizzo@griffinindustrial.com
FAQ
What was Griffin Industrial Realty's rent collection rate for Q3 2020?
How much square footage did Griffin renew in leases?
What percentage of Griffin's industrial portfolio was leased as of August 31, 2020?
Did Griffin grant any rent relief to tenants during the pandemic?