Author Topic: GRIF - Griffin Industrial Realty  (Read 23691 times)

BG2008

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Re: GRIF - Griffin Industrial Realty
« Reply #120 on: December 14, 2019, 09:23:10 AM »
NEW YORK, Dec. 09, 2019 (GLOBE NEWSWIRE) -- Griffin Industrial Realty, Inc. (GRIF) (“Griffin”) announced that in the three months ended November 30, 2019 (the “2019 fourth quarter”) it executed two new leases totaling approximately 105,000 square feet of industrial/warehouse space (including the previously disclosed approximately 74,000 square foot lease) and extended a lease for approximately 15,000 square feet of office/flex space. The new leases both were for space in 160 International Drive which, along with 180 International Drive, are located in Concord, North Carolina, in the greater Charlotte area, and were completed and placed in service in the 2019 fourth quarter. These two new industrial/warehouse buildings total approximately 283,000 square feet, increasing Griffin’s portfolio in the Charlotte market to three industrial/warehouse buildings aggregating approximately 560,000 square feet. In the 2019 fourth quarter, Griffin also acquired a fully leased approximately 100,000 square foot industrial/warehouse building in Orlando, Florida, Griffin’s first property in that market.

As of November 30, 2019, Griffin’s twenty-eight industrial/warehouse buildings aggregating approximately 4,029,000 square feet (90% of Griffin’s total real estate portfolio) were 93% leased (97% excluding 160 and 180 International Drive). Griffin’s twelve office/flex buildings aggregating approximately 433,000 square feet were 70% leased as of November 30, 2019. Griffin’s total real estate portfolio of approximately 4,462,000 square feet was 90% leased as of November 30, 2019 (94% excluding 160 and 180 International Drive).

I posted the new leasing news fairly quickly and did not took time to read it properly.  I just realized that they leased 105K of the potential 283k sqft in the Charlotte, NC market for roughly 37% of the space.  From my conversation with a local broker, Charlotte is a "build it then lease it town."  People simply won't lease unless you already have the product.  Seems like it is moving along. 

Regarding the trading stats/patterns.  Greg tends to be much better at it than the rest of us.  Volume is thin around $40.  I guess that means firework if we get some more interest in it.  We will see. 


BG2008

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Re: GRIF - Griffin Industrial Realty
« Reply #121 on: December 23, 2019, 06:46:04 AM »
New $6.5mm non-recourse loan on the new $10mm Orlando acquisition.  65% LTV @ 3.6% interest rate for 10 years.  Griffin consist of lots of ring-fenced non-recourse mortgages.  Even if they bought the property at a 5% cap rate, the 3.6% interest rate would yield excess cashflow.   I suspect they did the deal because they needed to put 1031 capital to work.
http://www.griffinindustrial.com/about/news-events/griffin-announces-closing-on-65-million-mortgage-loan

Gregmal

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Re: GRIF - Griffin Industrial Realty
« Reply #122 on: January 10, 2020, 02:19:26 PM »

alexbossert

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Re: GRIF - Griffin Industrial Realty
« Reply #123 on: January 10, 2020, 02:23:47 PM »
Thank you for posting Bill's interview on Griffin. I agree, it's a very thorough and well done analysis on the company.
« Last Edit: January 10, 2020, 02:29:49 PM by alexbossert »

Gregmal

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Re: GRIF - Griffin Industrial Realty
« Reply #124 on: Today at 06:52:28 AM »
Two more buildings purchased in Orlando.

While I still totally dig this as a great place to park some cash, the more we see acquisitions, especially ones like this, the less likely we are to see any sort of game breaking event like a sale of the company or a meaningful buyback. So thats not to say, be bearish on Griffin, but if one had the odds of them selling the company or repurchasing stock(or any other narrative busting/valuation improving event) at say 35%, I'd say events like this knock a few more percentage points off that number.

villainx

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Re: GRIF - Griffin Industrial Realty
« Reply #125 on: Today at 08:25:44 AM »
Two more buildings purchased in Orlando.

While I still totally dig this as a great place to park some cash, the more we see acquisitions, especially ones like this, the less likely we are to see any sort of game breaking event like a sale of the company or a meaningful buyback. So thats not to say, be bearish on Griffin, but if one had the odds of them selling the company or repurchasing stock(or any other narrative busting/valuation improving event) at say 35%, I'd say events like this knock a few more percentage points off that number.


BG2008 mentioned 1031 motivation. 

BG2008

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Re: GRIF - Griffin Industrial Realty
« Reply #126 on: Today at 08:31:36 AM »
Two more buildings purchased in Orlando.

While I still totally dig this as a great place to park some cash, the more we see acquisitions, especially ones like this, the less likely we are to see any sort of game breaking event like a sale of the company or a meaningful buyback. So thats not to say, be bearish on Griffin, but if one had the odds of them selling the company or repurchasing stock(or any other narrative busting/valuation improving event) at say 35%, I'd say events like this knock a few more percentage points off that number.


BG2008 mentioned 1031 motivation.

No insights on these 2 deals.  One is 100% vacant, maybe they saw some opportunity to lease up and provide value add.  There has not been anything significant sold lately.  Totally speculating here.  1031 deals can be done in reverse. So if they are nearing a deal to sell something and feel confident they can close soon, they can buy something first and reverse 1031 it.  Maybe, there is a big $10mm land deal on the way.  Again, totally speculating.  Don't read too much into it.