Griffin Announces Update on REIT Conversion, Dividend Plans, and Upcoming Rebranding
Griffin Industrial Realty, Inc. (Nasdaq: GRIF) announced plans to convert to a real estate investment trust (REIT) effective January 1, 2021, alongside changing its fiscal year-end to December 31. The company intends to distribute an estimated $10.0 million to $12.0 million in accumulated earnings via a dividend in Q1 2021, ranging from $1.77 to $2.12 per share, with a minimum cash component of $0.55 per share. Additionally, Griffin is set to undergo a rebranding, including a new name and ticker symbol, aligning with its strategic growth initiatives.
- Conversion to a REIT expected to enhance shareholder value and stock liquidity.
- Estimated dividend distribution of $10.0 million to $12.0 million, signaling strong earnings.
- Planned quarterly dividend payments starting in Q2 2021.
- None.
- On track for conversion to a REIT effective January 1, 2021
- Accumulated earnings & profits to be distributed via dividend in the first quarter of 2021
- Change in fiscal year end from November 30th to December 31st
- Griffin to undergo a rebranding that will include a new company name
NEW YORK, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Griffin Industrial Realty, Inc. (Nasdaq: GRIF) (“Griffin” or the “Company”) today announced that its election to become a real estate investment trust (“REIT”) is on track and expected to become effective on January 1, 2021. On November 17, 2020, in connection with the anticipated election to become a REIT, the Company’s Board of Directors approved a change in the Company’s fiscal year end from November 30 to December 31, effective beginning with the Company’s next fiscal year, which will now begin on January 1, 2021 and end on December 31, 2021 (the “New Fiscal Year”). As a result of the change, the Company will have a one-month transition period beginning on December 1, 2020 and ending on December 31, 2020 (the “Transition Period”). The results of the Transition Period are expected to be reported in the Company’s Quarterly Report on Form 10-Q to be filed for the first quarter of the New Fiscal Year, ending March 31, 2021, and in the Company’s Annual Report on Form 10-K to be filed for the New Fiscal Year.
“I am excited that we are on track to complete our anticipated election to be taxed as a REIT in 2021,” said Michael Gamzon, President & Chief Executive Officer. “We believe the REIT conversion is a critical component to realizing the next phase of Griffin’s growth, expanding our investor base, improving the liquidity of our stock and creating meaningful shareholder value over the long term.”
Dividend Plans
In connection with the anticipated REIT conversion, Griffin also announced its intention to declare a dividend in the first quarter of the New Fiscal Year to distribute its estimated accumulated earnings and profits (the “E&P Distribution”), instead of paying an annual dividend in the fourth quarter as it has in previous years. The E&P Distribution is estimated to range between
Rebranding
In connection with the previously announced strategic initiatives the Company is undertaking, Griffin intends to rebrand under a new company name and ticker symbol during the first quarter of the New Fiscal Year.
“We look forward to sharing our new Company identity,” said Ashley Pizzo, Director of Investor Relations & Capital Markets. “We believe the adoption of a new name and refresh of our branding will further align the Company with the mission we have shared this month at our Virtual Investor Day and REITworld, and the growth plans that we intend to continue to pursue.”
About Griffin
Griffin Industrial Realty, Inc. (“Griffin”) is a real estate business principally engaged in developing, acquiring, managing and leasing industrial/warehouse properties. Griffin recently completed the sale of an approximately 40,000 square foot office/flex building and currently owns 41 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.
Forward-Looking Statements:
This Press Release includes “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. These forward-looking statements include Griffin’s beliefs and expectations regarding future events or conditions including, without limitation, statements regarding Griffin’s anticipated election to become a REIT, Griffin’s expectations regarding the timing of release of results of the Transition Period, the declaration, form, amount and timing of the E&P Distribution, the payment and timing of future quarterly dividend payments, the timing of adopting a new compa
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