28
Supplemental Third Quarter 2015
Supplemental
Third Quarter 2015
Forward-Looking Information/Disclaimers
2
Cautionary Note Regarding Forward-Looking Information
This investment presentation contains "forward-looking statements" based upon the Company's current best
judgment and expectations. You can identify forward-looking statements by the use of forward-looking
expressions such as “may,” “will,” “should,” “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan,”
“project,” “continue,” or any negative or other variations on such expressions. Forward-looking statements
include information concerning possible or assumed future results of the Company's operations, including
any forecasts, projections, plans and objectives for future operations. Although the Company believes that
its plans, intentions and expectations as reflected in or suggested by those forward-looking statements are
reasonable, the Company can give no assurance that the plans, intentions or expectations will be achieved.
The Company has listed below some important risks, uncertainties and contingencies which could cause its
actual results, performance or achievements to be materially different from the forward-looking statements it
makes in this presentation. These risks, uncertainties and contingencies include, but are not limited to, the
following: the success or failure of the Company's efforts to implement its Company's current business
strategy; the Company's ability to identify and complete additional property acquisitions and risks of real
estate acquisitions; availability of investment opportunities on real estate assets; the performance and
financial condition of tenants and corporate customers; the adequacy of the Company's cash reserves,
working capital and other forms of liquidity; the availability, terms and deployment of short-term and long-
term capital; demand for industrial and office space; the actions of the Company's competitors and ability to
respond to those actions; the timing of cash flows from the Company's investments; the cost and availability
of the Company's financings, which depends in part on the Company's asset quality, the nature of the
Company's relationships with its lenders and other capital providers, the Company's business prospects and
outlook and general market conditions; the continuity of the management agreement for the KBS portfolio;
economic conditions generally and in the real estate markets and the capital markets specifically;
unanticipated increases in financing and other costs, including a rise in interest rates; the Company's ability
to maintain its current relationships with financial institutions and to establish new relationships with
additional financial institutions; the Company's ability to profitably dispose of non-core assets; availability of,
and ability to retain, qualified personnel and directors; changes to the Company's management and board of
directors; changes in governmental regulations, tax rates and similar matters; legislative and regulatory
changes (including changes to laws governing the taxation of REITs or the exemptions from registration as
an investment company); environmental and/or safety requirements; the Company's ability to satisfy
complex rules in order for it to qualify as a REIT for federal income tax purposes, the Company's operating
partnership’s ability to satisfy the rules in order for it to qualify as a partnership for federal income tax
purposes, and the ability of certain of the Company's subsidiaries to qualify as REITs and certain of the
Company's subsidiaries to qualify as TRSs for federal income tax purposes, and the Company's ability and
the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; the
continuing threat of terrorist attacks on the national, regional and local economies; and other factors
discussed under Item 1A, “Risk Factors” of the Company's Annual Report on Form 10-K for the year ended
December 31, 2014.
The Company assumes no obligation to update any forward-looking statements, whether as a result of new
information, future events, or otherwise. In evaluating forward-looking statements, you should consider
these risks and uncertainties, together with the other risks described from time-to-time in the Company's
reports and documents which are filed with the SEC, and you should not place undue reliance on those
statements. The risks included here are not exhaustive. Other sections of this report may include
additional factors that could adversely affect the Company's business and financial performance. Moreover,
the Company operates in a very competitive and rapidly changing environment. New risk factors emerge
from time to time and it is not possible for management to predict all such risk factors, nor can it assess the
impact of all such risk factors on the Company's business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, investors should not place undue reliance on forward-
looking statements as a prediction of actual results.
Disclaimers
Non-GAAP Financial Measures
The Company has used non-GAAP financial measures as defined by SEC Regulation G in this press
release. A reconciliation of each non-GAAP financial measure and the comparable GAAP financial
measure can be found on page 25 of this presentation.
Fund from operations (“FFO”): The revised White Paper on FFO approved by the Board of Governors of the
National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as net income (loss)
(determined in accordance with GAAP), excluding impairment write-downs of investments in depreciable
real estate and investments in in-substance real estate investments, gains or losses from debt
restructurings and sales of depreciable operating properties, plus real estate-related depreciation and
amortization (excluding amortization of deferred financing costs), less distributions to non-controlling
interests and income (losses) from discontinued operations and after adjustments for unconsolidated
partnerships and joint ventures.
Core FFO and adjusted funds from operations (“AFFO”): Core FFO is a non-GAAP financial measure that is
presented excluding property acquisition costs, other-than-temporary impairments on retained bonds, and
other one-time charges. AFFO of the Company also excludes non-cash stock-based compensation
expense, amortization of above and below market leases, amortization of deferred financing costs,
amortization of lease inducement costs, non-real estate depreciation and amortization, amortization of free
rent received at property acquisition, and straight-line rent. The Company believes that Core FFO and
AFFO are useful supplemental measures regarding the Company’s operating performances as they provide
a more meaningful and consistent comparison of the Company’s operating performance and allows
investors to more easily compare the Company’s operating results.
Net operating income (“NOI”) is a non-GAAP financial measure that represents property revenues on a
straight-line basis minus property expenses before interest and capital reserves/expenditures.
Capitalization rate (“Cap Rate”) is a rate of return on a real estate investment property based on the
expected, straight-lined income that the property will generate. Capitalization rate is used to estimate the
Company’s potential return on its investment. This is done by dividing the income the property is expected
to generate (before debt service and depreciation and after fixed costs and variable costs) by the acquisition
price of the property.
The Core FFO, AFFO, NOI and Cap Rate assumptions included in this presentation reflects the Company's
assumptions and expectations and are not guarantees of its future performance. The Company's actual
results may vary materially from the assumptions presented in this presentation. The results that an
investor in the Company will actually receive will depend, to a significant degree, on the actual performance
of the Company's assets, which may be impacted by material economic and market risk factors.
Revenue maintaining capital expenditures represent the portion of capital expenditures required to maintain
the Company’s current revenue base. Revenue maintaining capital expenditures include current tenant
improvements and expenditures related to the Company’s current tenant base. Revenue maintaining
capital expenditures is a separate non-GAAP financial measure and it is not a component of other non-
GAAP measures such as FFO, Core FFO or AFFO. The Company believes that revenue maintaining
capital expenditures is a useful measure to provide for a consistent comparison of cash flows used by
investing activities.
Revenue generating capital expenditures represent the portion of capital expenditures required to expand
the Company’s current revenue base. Revenue generating capital expenditures include build-to-suit
projects, expansion or other projects that are intended to attract prospective tenants or increase the
revenue base from existing tenants. Revenue generating capital expenditures is a separate non-GAAP
financial measure and it is not a component of other non-GAAP measures FFO, Core FFO or AFFO. The
Company believes that revenue generating capital expenditures is a useful measure to evaluate cash flows
used by investing activities which are generally non-recurring.
Table of Contents
3
ABOUT GRAMERCY
3Q 2015 Highlights 5
3Q 2015 Acquisitions 6
3Q 2015 Dispositions 7
Merger Update 8
CURRENT PORTFOLIO
Portfolio Update 10-12
Lease Expiration 13
Same Store Net Operating Income Comparison 14
Capital Expenditures 15
Gramercy Owned Portfolio 16-18
FINANCIAL INFORMATION
Market Capitalization & Liquidity Snapshot 20
Credit Metrics 21
Debt Summary 22
Comparative Statement Operations 23
Comparative Balance Sheets 24
Comparative Computation of FFO 25
Business Segment Report 26
Joint Ventures 27
MG&A Summary 28
Gramercy Property Trust
Gramercy Property Trust Inc. (NYSE: GPT), or the Company, GramercyProperty Trust Inc. is a leading global investor and asset manager ofcommercial real estate. The Company specializes in acquiring and managingsingle-tenant, net-leased industrial and office properties purchased throughsale-leaseback transactions or directly from property developers and owners.The Company focuses on income producing properties leased to high qualitytenants in major markets in the United States and Europe.
Gramercy Property Europe plc (“Gramercy Europe”) is an investment fund thattargets single-tenant net leased assets and sale-leaseback transactionsacross Europe. The Fund has initial equity commitments of approximately€350 million and will invest predominantly in industrial, office and specialtyretail assets in Germany, the Netherlands, the Nordic region, the UnitedKingdom and other targeted European countries.
Gramercy earns revenues primarily through three sources. We earn rentalrevenues on properties that we own directly in the United States, we earnasset management revenues on properties owned by third parties in both theUnited States and Europe, and through our investment in the GramercyEuropean Property Fund, we earn rental revenues on our pro-rata ownership.
As of September 30, 2015, we owned interests in 174 properties containing anaggregate of approximately 21.1 million rentable square feet. In addition, wemanage approximately $800.0 million of commercial property assets for thirdparties in the United States and Europe.
On July 1, 2015, we announced with Chambers Street Properties(NYSE:CSG) (“Chambers Street”) a definitive agreement to merge, with thecombined company having an expected enterprise value of approximately$5.6 billion. The merger is expected to close in the fourth quarter of 2015.
To review the Company’s latest news releases and other corporatedocuments, please visit the Company's website at www.gptreit.com or contactInvestor Relations at (212) 297-1000.
4
Snapshot (September 30, 2015) 1
Number of Properties 174
Square Feet 21.1 million
Q3 Ending Occupancy 99.6%
Weighted Average Lease Term 9.6 years
% of Investment Grade Tenants 38%
Quarterly Dividend $0.22
Total Enterprise Value (TEV) $2.3 Billion
Net Debt / TEV 43%
Secured Debt / TEV 14%
Corporate Headquarters New York
Employees 94
(1) Includes one property owned in joint venture
3Q 2015 Highlights
5
Core FFO Generated Core FFO of $31.7 million or $0.54 per diluted common share.
FFO Generated FFO of $25.2 million or $0.43 per diluted common share.
AFFO Generated AFFO of $26.8 million or $0.45 per diluted common share.
Merger Announced with Chambers Street Properties (NYSE:CSG) (“Chambers Street”) a definitive agreement to merge, with the
combined company having an expected enterprise value of approximately $5.6 billion. The merger is expected to close
in the fourth quarter of 2015.
Scheduled a special meeting of stockholders for December 15, 2015 to consider and vote upon the proposed merger
with Chambers Street. If approved at the special meeting, the merger is expected to close by December 17, 2015.
Dividends Declared the quarterly common stock dividend of $0.22 per common share, paid on October 15, 2015 to holders of
record as of September 30, 2015. Declared the Series B preferred stock dividend of $0.44531 per share, paid on
September 30, 2015 to holders of record as of September 21, 2015.
3Q 15 Acquisitions Acquired four properties for a total purchase price of approximately $111.5 million.
• 11.9 years weighted average lease term
• 7.1% initial cap rate; 8.0% annualized straight-line cap rate
3Q 15 Dispositions Disposed of two properties for an aggregate sales price of approximately $70.1 million. The blended exit cap rate for
these dispositions was 6.2%.
Gramercy Europe Acquired five properties in two separate transactions for a total purchase price of approximately €85.6 million.
Subsequent to quarter end, acquired one industrial property and one logistics, retail and office headquarters facility for
an aggregate purchase price of approximately €49.7 million.
To date, funded approximately €13.6 million of €50.0 million the Company committed to the venture.
July 2015 In July 2015, exercised the accordion feature to expand the unsecured term loan from $200.0 million to $300.0 million
and increased the unsecured revolving credit facility from $400.0 million to $500.0 million.
3Q 2015 Acquisitions
6
(Dollar amount in thousands)
Purchase Cash S/L
Acq. Date Location MSA Major Tenants Property Type Square Feet Price Occupancy NOI NOI
7/6/2015 Vernon, CA Los Angeles Mikawaya Cold Storage 106,631 27,500$ 100% 1,791$ 2,163$
7/21/2015 Philadelphia, PA Philadelphia Penn Jersey Paper Co Bulk Warehouse 255,336 26,100 100% 1,933 2,071
7/22/2015 Fridley, MN Minneapolis BAE Land & Armaments LP Manufacturing 585,225 46,800 100% 3,401 3,738
9/25/2015 Pinellas Park, FL Tampa/St. Petersburg Davidoff of Geneva Inc. Warehouse 131,800 11,100 100% 771 922
1,078,992 111,500$ 100% 7,897$ 8,894$
(Dollar amount in thousands)
Sale Cash S/L
Disp. Date Location MSA Major Tenants Property Type Square Feet Price Occupancy NOI NOI
7/29/2015 Thousand Oaks, CA Los Angeles Blue Cross of California Office 106,560 19,100$ 100% 1,381$ 1,583$
9/15/2015 Summerlin, NV Las Vegas Life Time Fitness Fitness Center 143,286 51,000 100% 2,958 3,431
249,846 70,100$ 100% 4,339$ 5,014$
3Q 2015 Dispositions
7
Merger Update
8
Definitive proxy declared effective October 27, 2015
Special meetings of Gramercy and Chambers Street stockholders to consider and approve the
proposed merger are scheduled for December 15, 2015
If approved, closing of the merger is expected on December 17, 2015
Current Portfolio
10
Properties
% of Contractual
Base Rent Occupancy
Total
Square Feet
Annualized
Straight-Line NOI
Industrial 68 48% 100.0% 14.2 million $77.8 million
Office/Banking Centers 80 33% 98.3% 4.8 million $57.9 million
Specialty Industrial 2 14 6% 100.0% 0.7 million $13.2 million
Specialty Retail 9 10% 100.0% 1.2 million $19.2 million
Data Centers 2 3% 100.0% 0.2 million $5.2 million
Total 173 100% 99.6% 21.1 million $173.4 million
0.2% 1.9% 3.4% 0.7% 0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2015 2016 2017 2018
Lease Expiration Schedule1Key Portfolio Statistics1
Note: as of September 30, 2015.
1. Excludes Philips JV.
2. Includes a bus depot, two rental car maintenance facilities, an auto auction facility, three salvage yards and seven truck terminals.
Portfolio Update
Size 173 assets
21.1 million square feet
Tenants 38% Investment Grade
Lease Term 9.6 Years
Geographic 83% of assets in Target Markets
Largest market: Los Angeles
Occupancy 99.6%
6.2% of Contractual Base Rent has an initial
expiration date through December 31, 2018
Near-Term Maturities: 2017 – CEVA Freight (2.8%)
Gramercy Property Trust Owned Portfolio1
Portfolio Update
11
Portfolio Breakdown by Geography1Top 10 Tenant List1
Note: as of September 30, 2015.
1. Based on contractual base rent.
2. Includes properties located in Gramercy Target Market MSAs of Houston, San Francisco, Atlanta, Tampa, Orlando, Baltimore, Washington DC, Memphis, Central Pennsylvania, Denver,
Seattle, Cincinnati, Savannah, Columbus, Nashville, Charlotte, Austin, Inland Empire and Kansas City.
3. Includes properties located in Tulsa, OK; Detroit, MI; Colorado Springs, CO; Waco, TX; Ames, IA; Cleveland, OH; Yuma, AZ; St. Louis, MO; Northern California; Central Florida; Central
Illinois and other markets.
Only two tenants represent more than 10% of
Gramercy’s total ABR as of October 1, 2015.
Rank Tenants % of Total
Rating
(Moody’s / S&P)
1 18.4% A1 / A
2 10.5% B2 / B
3 3.2% Ba2 / BB+
4 / 3.2% B1 / BB-
5 2.8% Caa1 / B-
6 2.4% Ba3 / BB
7 2.4% Baa3 / BBB-
8 2.3% Baa2 / BBB
9 2.2% Ba3 / BB-
10 2.1% Baa2/BBB+
Subtotal 49.5%
Rank Markets % of Total
1 Los Angeles 11%
2 Dallas 9%
3 Jacksonville 7%
4 Chicago 6%
5 South Florida 5%
6 Philadelphia 4%
7 New York / New Jersey 4%
8 Phoenix 3%
9 Indianapolis 3%
10 Minneapolis 3%
Other Target Markets2 27%
Other3 17%
82% of assets are located in
Gramercy target markets.
Portfolio Update
12
CA
WA
MT
ID
NV
WY
UT
CO
AZ
NM
OR
ND
TX
OK
KS
NE
MN
IA
LA
AR
MSAL
FL
GA
TN
SD WI
IL
MOKY
IN OH
MI
SC
NC
VA
WV
VT
ME
NY
PA
MD
NH
DE
MA
NJ
RICT
Top 10 MarketsBy % of Contractual Base Rent
1. Los Angeles2. Dallas3. Jacksonville4. Chicago5. South Florida6. Philadelphia7. New York/New Jersey8. Phoenix9. Indianapolis10. Minneapolis
Focus on acquiring industrial and office assets in top-25 markets
By Contractual Base Rent
Industrial
Office
Specialty Industrial
Specialty Retail
Data Center
< $1MM
$1MM - < $4MM
$4MM - < $7MM
$7MM - < $10MM
$10MM >
Property Type
Note: as of September 30, 2015.
Note: excludes Philips Office JV.
Lease Expiration – September 30, 2015
13
$36 $284 $2,973
$5,369 $1,117
$16,429
$10,716 $13,195
$6,519
$31,853
$7,508
$63,749
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
MTM 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025and
thereafter
Year of Lease
Expiration
Number of
Leases Expiring
SF of Leases
Expiring
Annualized Base
Rental Revenue% of Total ABR
MTM 7 608 36$ 0.0%
2015 2 56,179 284 0.2%
2016 12 585,512 2,973 1.9%
2017 8 760,173 5,369 3.4%
2018 6 285,497 1,117 0.7%
2019 17 1,614,942 16,429 10.3%
2020 12 1,779,877 10,716 6.7%
2021 14 1,583,525 13,195 8.3%
2022 11 1,217,153 6,519 4.1%
2023 84 3,675,818 31,853 19.9%
2024 9 1,610,223 7,508 4.7%
2025 and thereafter 41 7,825,055 63,749 39.9%
TOTAL 223 20,994,562 159,748$ 100.0%
Same Store Net Operating Income Comparison
14
Three Months Ended 9/30/2015 (Dollars in thousands)
2015 2014 $ Change % Change 2015 2014 2015 2014 2015 2014 $ Change % Change
Revenue
Rents
Cash 16,039$ 15,908$ 131$ 0.8% 22,802$ 1,464$ 712$ 228$ 39,553$ 17,600$ 21,953$ 124.7%
Straight Line & Market Rent Amortization 5,130 2,342 2,788 119.0% 2,473 (20) 79 (1) 7,682 2,321 5,361 231.0%
Total Rents 21,169 18,250 2,919 16.0% 25,275 1,444 791 227 47,235 19,921 27,314 137.1%
Operating Expense Reimbursements 9,101 8,517 584 6.9% 2,137 296 (1) 147 11,237 8,960 2,277 25.4%
Other income 2 1 1 100.0% 54 1 - - 56 2 54 2700.0%
Total Revenue 30,272 26,768 3,504 0 27,466 1,741 790 374 58,528 28,883 29,645 102.6%
Property Operating Expenses 8,659 8,333 326 3.9% 2,354 300 38 605 11,051 9,238 1,813 19.6%
Net Operating Income 21,613$ 18,435$ $3,178 17.2% 25,112$ 1,441$ 752$ (231)$ 47,477$ 19,645$ $27,832 141.7%
Number of properties 103 103
Square feet (in thousands) 8,697 8,697
Occupancy % (end of period) 99.0% 99.1%
2015 2014 $ Change % Change
Net Operating Income 21,613$ 18,435$ 3,178$ 17.2%
Less: Straight Line & Market Rent Amortization (5,130) (2,342) (2,788) 119.0%
Net Operating Income - Cash 16,483$ 16,093$ 390$ 2.4%
(1) Properties owned as of July 1, 2014 and still owned as of September 30, 2015.(2) Represents results, from the dates of acquisition through the periods presented, of properties acquired during 2014 and 2015.(3) Includes results of properties under development as of July 1, 2014 and results of properties sold during the periods presented.
Same Store Portfolio(1) Acquisition(2) Development and Other(3) Consolidated
Capital Expenditures
15
Actual
(Amounts in thousands)
Revenue Maintaining Capital Expenditures (1) Q1 Q2 Q3 Year to Date
Building improvements 134$ 56$ 163$ 353$
Tenant improvements 81 593 234 908
Lease commissions 138 5 232 375
TOTAL 353$ 654$ 629$ 1,636$
Revenue Generating Capital Expenditures (1) Q1 Q2 Q3 Year to Date
BOA (2) 242$ 153$ 140$ 535$
Building expansion 46 - - 46
Build-to-suit - - - -
TOTAL 288$ 153$ 140$ 581$
(1) Excludes corporate capital expenditures related to computers and softw are of $520 for the nine months ended September 30, 2015.(2) Substantially all of the BOA capital expenditures are reimbursed by the tenant.
Reserve Method
(Amounts in thousands)
%(3) Q1 Q2 Q3 Year to Date
Retail / Specialty 2.0% 48$ 91$ 162$ 302$
Industrial 3.5% 437 548 615 1,600$
Office 5.0% 502 694 695 1,891$
TOTAL 987$ 1,333$ 1,473$ 3,793$
(3) Percentage of NOI; Based upon reserve assumptions used by Green Street Advisors.
(Dollar Amount in Thousands)
Purchase Lease Cash S/L
Acq. Date Location MSA Major Tenants Property Type Sq. Ft. Price Occ. Exp. NOI1 NOI
Industrial Portfolio
09/25/2015 Pinellas Park, FL Tampa/St. Petersburg Davidoff of Geneva Inc. Warehouse 131,800 11,100$ 100% 9/2030 771$ 922$
07/22/2015 Fridley, MN Minneapolis BAE Systems Land & Armaments L.P. Manufacturing 585,225 46,800 100% 10/2025 3,401 3,738
07/21/2015 Philadelphia, PA Philadelphia Penn Jersey Paper Co. Bulk Warehouse 255,336 26,100 100% 4/2026 1,933 2,071
07/06/2015 Vernon, CA Los Angeles Mikawaya Cold Storage 106,631 27,500 100% 6/2030 1,791 2,163
06/10/2015 Orlando, FL Orlando Magical Cruise Company, Limited Warehouse 141,668 7,740 100% 5/2021 547 590
06/10/2015 Orlando, FL Orlando Kratos Defense & Security Solutions, Inc. HQ / Flex Industrial 92,616 8,160 100% 7/2020 831 881
05/07/2015 Auburn, WA Seattle Gerdau Reinforcing Steel Manufacturing 109,585 13,000 100% 10/2021 828 899
05/07/2015 San Bernardino, CA Inland Empire Gerdau Reinforcing Steel Manufacturing 69,452 11,086 100% 2/2026 720 817
05/07/2015 Fairfield, CA San Francisco Gerdau Reinforcing Steel HQ / Flex Industrial 59,000 4,000 100% 1/2023 300 300
04/10/2015 Obetz, OH Columbus Nautilus, Inc. Bulk Warehouse 477,853 24,100 100% 7/2021 1,664 1,768
03/26/2015 Oswego, IL Chicago Radiac Abrasives, Inc. Manufacturing 74,960 4,650 100% 5/2022 394 418
03/11/2015 Richfield, OH Cleveland FedEx Ground Package Systems Inc. Warehouse 229,972 21,764 100% 9/2021 1,815 1,721
03/11/2015 Dixon, IL Greater Chicago Spectrum Brands, Inc Bulk Warehouse 575,448 23,263 100% 2/2028 1,714 1,939
03/11/2015 Houston, TX Houston CEVA Freight, LLC HQ / Flex Industrial 465,475 45,050 100% 12/2017 3,893 3,893
03/11/2015 Aurora, CO Denver CEVA Freight, LLC Warehouse 84,973 7,118 100% 12/2017 587 587
03/09/2015 San Jose, CA San Francisco Vander-Bend Manufacturing, LLC HQ / Flex Industrial 207,006 44,000 100% 10/2027 2,785 3,038
03/05/2015 Kent, WA Seattle Cenveo Corporation / NCS Pearson HQ / Flex Industrial 214,970 18,500 100% 2/2021 1,113 1,179
02/13/2015 Milwaukee, WI Milwaukee Ball Metal Beverage Container Corp Warehouse 110,400 4,947 100% 7/2016 426 428
02/13/2015 Oak Creek, WI Milwaukee United States Postal Service Warehouse 150,192 6,391 100% 9/2019 552 580
02/13/2015 Sussex, WI Milwaukee Quad/Graphics, Inc. Warehouse 192,160 8,412 100% 9/2017 726 737
01/09/2015 Cinnaminson, NJ Philadelphia Domtar Paper Company, LLC Bulk Warehouse 465,000 27,060 100% 4/2025 1,651 1,800
01/06/2015 St Louis, MO St. Louis Alpha Plastics, Inc. Manufacturing 211,000 10,610 100% 9/2029 833 844
12/23/2014 Downers Grove, IL Chicago Valid USA, Inc. Manufacturing 109,000 10,510 100% 9/2029 689 784
12/23/2014 Bolingbrook, IL Chicago Valid USA, Inc. Warehouse 225,203 14,750 100% 5/2029 918 1,089
12/19/2014 Hamlet, NC Greater Charlotte Henry's Tackle LLC Bulk Warehouse 310,673 12,355 100% 5/2024 988 1,053
12/18/2014 Burr Ridge, IL Chicago Harry Holland & Son, Inc. HQ / Flex Industrial 47,000 4,250 100% 2/2020 342 356
12/18/2014 Buffalo Grove, IL Chicago CrossCom National LLC HQ / Flex Industrial 60,014 5,000 100% 12/2021 368 398
12/08/2014 Midway, GA Savannah Pacific Global Logistics Inc Bulk Warehouse 502,854 20,000 100% 1/2019 1,372 1,497
12/04/2014 Groveport, OH Columbus Almo Distributing Pennsylvania Inc Warehouse 240,000 7,200 100% 3/2018 602 619
12/04/2014 Rolling Meadows, IL Chicago J.C. Restoration, Inc. HQ / Flex Industrial 93,614 9,870 100% 12/2026 740 804
12/04/2014 Lewisville, TX Dallas/Ft. Worth Compudata Products, Inc. / E.A. Sween Warehouse 115,459 6,800 100% 7/2025 516 537
12/02/2014 Puyallup, WA Seattle Saint-Gobain Abrasives, Inc. Manufacturing 108,644 11,600 100% 2/2024 704 794
11/25/2014 Morrow, GA Atlanta Global Stainless Supply, Inc. Warehouse 203,850 7,000 100% 1/2020 506 531
10/24/2014 Miami, FL Miami International Data Depository Inc Warehouse 187,749 10,060 100% 10/2021 773 846
09/24/2014 Kenosha, WI Chicago Emerson Electric Co. Manufacturing 160,300 10,792 2 100% 9/2024 741 796
09/24/2014 Worcester, MA Greater Boston Polar Corp Bulk Warehouse 285,437 21,400 2 100% 3/2029 1,570 1,806
09/19/2014 Blloomington, IL Chicago Compass Group USA, INC. Warehouse 110,063 7,024 2 100% 7/2024 488 524
08/19/2014 Arlington Heights, IL Chicago European Imports Ltd Cold Storage 186,954 19,100 100% 5/2019 1,543 1,600
07/31/2014 Buford, GA Atlanta Office Depot, Inc. Bulk Warehouse 550,000 26,040 100% 4/2020 2,794 2,513
07/31/2014 Ames, IA Greater Des Moines AMCOR Rigid Plastics USA, Inc. Bulk Warehouse 576,876 26,250 100% 2/2019 2,203 2,226
07/31/2014 Wilson, NC Greater Raleigh Cott Beverages, Inc. Manufacturing 328,000 16,700 100% 5/2026 1,193 1,311
05/29/2014 Tampa, FL Tampa Cott Beverages, Inc. Manufacturing 175,920 9,500 100% 1/2020 725 778
05/20/2014 Chicago, IL Chicago Hearthside Food Solutions Bulk Warehouse 309,284 20,985 100% 12/2023 1,427 1,569
05/01/2014 Harrisburg, PA Central PA Cummins Power Systems, LLC Warehouse 183,200 8,329 2 100% 5/2025 595 646
04/23/2014 Elgin, IL Chicago Dynacast, LLC Manufacturing 112,325 10,350 100% 8/2028 795 915
02/28/2014 Des Plaines, IL Chicago Filtran, LLC Warehouse 115,472 6,300 100% 10/2025 479 533
12/30/2013 Los Angeles, CA Los Angeles Douglas Steel Supply Co. Manufacturing 120,506 14,750 100% 12/2028 922 1,186
12/23/2013 Allentown, PA Central PA Amcor Rigid Plastics USA, Inc. Manufacturing 480,000 36,830 100% 12/2028 2,496 2,825
11/21/2013 Waco, TX Waco Associated Hygienic Products, LLC Manufacturing 303,000 24,400 100% 7/2029 1,963 2,289
11/15/2013 Galesburg, IL / Peru, IL3Various Euclid Beverage, Ltd Warehouse 130,800 8,171 100% 10/9/2021 & 6/2022 719 804
1 Represents 2015 cash NOI.2 Worcester: net of seller credits of $99,800 / Chicago Portfolio: Net of seller credits of $84,000 / Harrisburg: Net of $284,460 of free rent and operating expense credit.3 Includes two separate properties.
Gramercy Owned Portfolio – September 30, 2015
16
Gramercy Owned Portfolio – September 30, 2015
17
(Dollar Amount in Thousands)
Purchase Lease Cash S/L
Acq. Date Location MSA Major Tenants Property Type Sq. Ft. Price Occ. Exp. NOI1 NOI
Industrial Portfolio Continued
11/15/2013 Lawrence, IN Indianapolis EF Transit, Inc. Bulk Warehouse 534,769 39,631$ 100% 6/2024 2,676$ 3,078$
10/23/2013 Austin, TX Austin Angelica Textile Services, Inc. Manufacturing 120,347 9,490 100% 10/2028 717 791
10/01/2013 Yuma, AZ Yuma Earthbound Holdings II, LLC Cold Storage 216,727 17,850 100% 9/2033 1,428 1,651
09/05/2013 Manassas, VA Baltimore/Washington DC Retrievex Acquisition Corp. V Warehouse 83,065 8,794 100% 12/2024 611 647
08/22/2013 Atlanta, GA Atlanta KapStone Paper and Packaging Corporation Warehouse 133,317 4,000 100% 4/2023 322 354
06/28/2013 Swedesboro, NJ Philadelphia Albert's Organics, Inc. Cold Storage 70,000 11,725 100% 5/2028 732 832
05/31/2013 Hialeah Gardens, FL Miami Preferred Freezer Services Cold Storage 117,591 26,300 100% 5/2039 2,104 2,469
05/30/2013 Bellmawr, NJ Philadelphia Federal Express Corporation Warehouse 62,230 4,175 100% 10/2022 292 312
03/19/2013 Garland, TX Dallas/Ft. Worth Apex Tool Group, LLC Manufacturing 341,840 10,700 100% 10/2032 762 841
03/11/2013 Olive Branch, MS Memphis Five Below, Inc. Bulk Warehouse 605,427 24,650 100% 12/2022 1,726 1,706
11/20/2012 Greenwood, IN / Greenfield, IN Indianapolis Nestle Waters / Stanley Tools Bulk Warehouse 539,429 27,125 100% 11/2023 1,987 2,219
14,167,661 972,106$ 100% 71,804$ 77,841$
Office/Banking Center Portfolio
03/31/2015 Burbank, CA Los Angeles Deluxe Entertainment Services Group, Inc. Flex Office 95,000 22,200$ 100% 7/2026 1,539$ 1,774$
03/11/2015 Redondo Beach, CA Los Angeles Northrop Grumman Systems Corporation Office 124,400 28,680 100% 4/2019 2,385 2,505
03/11/2015 Commerce, CA Los Angeles Unified Western Grocers, Inc. Office 108,000 25,479 100% 12/2019 2,267 2,267
03/11/2015 Parsippany, NJ New York/New Jersey Avis Budget Group, Inc. Office 212,535 37,586 100% 3/2023 3,439 3,439
03/11/2015 Plantation, FL Miami / Ft. Lauderdale Crawford & Company Office 239,616 52,025 100% 12/2021 3,966 4,149
03/11/2015 Irving, TX Dallas Nokia Solutions and Networks US LLC Office 293,890 64,051 100% 5/2019 5,130 5,810
02/03/2015 Charlotte, NC Charlotte Time Warner Cable Southeast, LLC Flex Office 113,600 18,200 100% 6/2026 1,224 1,361
12/22/2014 Westlake Village, CA Los Angeles Bank of America, N.A. Office 253,720 43,000 100% 12/2020 3,191 3,436
09/30/2014 Parsippany, NJ New York/New Jersey Solix, Inc Office 56,230 9,370 100% 5/2021 772 830
06/30/2014 Malvern, PA Philadelphia Fujirebio Diagnostics, Inc. Flex Office 190,597 28,400 100% 3/2030 2,118 2,434
06/09/2014 Various2 Various Bank of America JV Office / Banking Center 2,905,918 386,700 98% 5/2023 26,696 27,728
05/20/2014 Nashville, TN Nashville ARAMARK Corporation Office 88,958 16,475 100% 6/2029 1,189 1,304
05/15/2014 St. Louis, MO St. Louis Bank of America, N.A. (Hampton-Main) Office / Banking Center 25,061 2,153 100% 12/2017 214 222
08/01/2013 Morristown, NJ New York/New Jersey Wells Fargo / U.S. Bank Office / Banking Center 20,645 4,900 49% 3/2021 352 368
06/06/2013 Emmaus, PA Allentown Sovereign Bank Banking Center 4,800 1,610 100% 2/2019 153 165
06/06/2013 Calabash, SC Myrtle Beach PNC Bank, N.A. Banking Center 2,048 610 100% 12/2018 75 79
09/06/2005 Somerset, NJ (25%) 3 New York/New Jersey Philips Holding USA Inc. Office 49,975 12,563 100% 12/2021 825 931
4,784,993 754,000$ 98% 55,535$ 58,802$
Specialty Industrial Assets
02/02/2015 Milford, CT New Haven FedEx Freight East, Inc. Truck Terminal 24,700 6,400$ 100% 2/2020 463$ 456$
09/11/2014 Santa Clara, CA San Francisco Enterprise Rent-A-Car Company Covered Land Industrial 5,066 20,000 100% 3/2021 1,329 1,329
08/27/2014 Medley, FL Miami LKQ Crystal River, Inc Covered Land Industrial 27,403 17,300 100% 7/2022 1,278 1,278
11/22/2013 Chicago, IL Chicago North American Central School Bus Holding Company, LLCCovered Land Industrial 36,500 5,750 100% 10/2022 474 518
11/21/2013 Franklin Park, IL Chicago Enterprise Leasing Company of Chicago, LLC Covered Land Industrial 22,872 8,000 100% 4/2021 601 601
06/27/2013 Hutchins, TX Dallas/Ft. Worth Adesa Texas, Inc. Covered Land Industrial 196,366 58,500 100% 7/2029 4,924 5,656
06/26/2013 Orlando, FL / Houston, TX Various YRC Inc. Truck Terminal 148,398 11,950 100% 4/2019 940 940
06/18/2013 Deer Park, NY New York/New Jersey YRC Inc. Truck Terminal 18,396 3,900 100% 12/2019 299 299
06/19/2013 Elkridge, MD Baltimore/Washington DC New Penn Motor Express, Inc. Truck Terminal 33,572 5,900 100% 5/2019 490 510
05/06/2013 Atlanta, GA Atlanta FedEx Freight, Inc. Truck Terminal 129,535 7,850 100% 5/2020 600 671
03/28/2013 East Brunswick, NJ New York/New Jersey Con-Way Freight, Inc. Truck Terminal 33,664 11,650 100% 1/2019 940 940
676,472 157,200$ 100% 12,337$ 13,198$ 1 Represents 2015 cash NOI.2 Includes properties located in CA, FL, AZ, NM, TX, WA, MD, MO, GA, KS3 Gramercy’s 25% interest in the JV that owns the Philips Headquarters property.
Gramercy Owned Portfolio – September 30, 2015
18
(Dollar Amount in Thousands)
Purchase Lease Cash S/L
Acq. Date Location MSA Major Tenants Property Type Sq. Ft. Price Occ. Exp. NOI1 NOI
Specialty Retail Assets
06/10/2015 Colorado Springs, CO Colorado Springs Life Time Fitness Fitness Center 179,175 36,000$ 100% 6/2035 2,340$ 2,715$
06/10/2015 Centennial, CO Denver Life Time Fitness Fitness Center 129,182 32,000 100% 6/2035 2,080 2,413
06/10/2015 Reston, VA Baltimore/Washington DC Life Time Fitness Fitness Center 114,441 33,000 100% 6/2035 2,145 2,489
06/10/2015 Canton, MI Detroit Life Time Fitness Fitness Center 105,010 26,000 100% 6/2035 1,690 1,961
06/10/2015 Deerfield, OH Cincinnati Life Time Fitness Fitness Center 127,040 24,800 100% 6/2035 1,612 1,870
06/10/2015 Eden Prairie, MN Minneapolis Life Time Fitness Fitness Center 176,704 23,200 100% 6/2035 1,508 1,750
06/10/2015 Collierville, TN Memphis Life Time Fitness Fitness Center 112,110 27,500 100% 6/2035 1,788 2,074
06/10/2015 South Tulsa (Bixby), OK Tulsa Life Time Fitness Fitness Center 114,441 25,500 100% 6/2035 1,658 1,923
06/10/2015 Mansfield, TX Dallas Life Time Fitness Fitness Center 129,155 27,000 100% 6/2035 1,755 2,036
1,187,258 255,000$ 100% 16,575$ 19,231$
Data Centers
03/11/2015 El Segundo, CA Los Angeles Equinix, Inc. Data Center 106,885 59,122$ 100% 12/2025 3,753$ 4,261$
03/11/2015 Richardson, TX Dallas Nortel Networks Inc. Data Center 121,068 16,072 100% 9/2016 1,143 987
227,953 75,194$ 100% 4,896$ 5,248$ 1 Represents 2015 cash NOI.
Total Straight-Line (S/L) NOI for the Portfolio: 174,320$
Financial Information
Market Capitalization and Liquidity Snapshot
20
9/30/2015 Rate Maturity
Secured Debt
Fixed Rate Mortgages $318 5.39% 5.6 years
Total Secured Debt $318
Unsecured Debt
Unsecured Term Loan #1 $200 3.42% 3.7 years
Unsecured Term Loan #2 100 L+145bps 3.7 years
Unsecured Revolver 270 L+150bps 3.7 years1
Convertible Debt 115 3.75% 3.5 years
Total Unsecured Debt $685
Total Debt $1,003
Series B Preferred Equity $88 7.125%
Common Equity (@ $20.77/share) $1,204
Total Equity $1,292
Total Market Capitalization $2,295
Less: Cash and Cash Equivalents ($38)
Total Enterprise Value (TEV) $2,257
Net Debt / TEV 43%
Net Debt + Preferred / TEV 47%
Secured Debt / TEV 14%
Cash and Cash Equivalents $38
Revolver Capacity2 230
Total Liquidity $268
Note: as of September 30, 2015.1. Includes one-year extension option.2. Up to $50mm of the capacity can be allocated for strictly foreign currency borrowings.3. Includes regularly scheduled principal amortization of fixed rate mortgages.
Liquidity ($mm)Total Enterprise Value (TEV) ($mm)
Debt Maturity Schedule ($mm)3
$2$28 $22 $35
$17
$153
$61
$300
$115
$270
$230
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Mortgages JPM Term Loan Convertible Notes Revolver Revolver Capacity
Credit Metrics
Bank Covenant Credit Metrics1
9/30/2015 6/30/2015 3/31/2015 12/31/2014
Leverage ratio 47% 45% 47% 34%
Secured indebtedness 15% 14% 17% 12%
Fixed charge coverage 2.8x 2.5x 2.4x 2.1x
Tangible net worth ($mm) $1,253 $1,245 $967 $942
Unsecured leverage ratio 47% 45% 50% 35%
Unsecured interest coverage 2.9x 3.1x 2.9x 4.2x
Unencumbered assets ($mm) $1,455 $1,478 $1,102 $907
9/30/2015 6/30/2015 3/31/2015 12/31/2014
Net Debt / S/L EBITDA 5.3x 6.4x 6.9x 3.3x
Credit Metrics
1 Covenants calculated as defined by the credit facility.
21
Debt Summary – September 30, 2015
22
(Dollars in thousands)
Number of 9/30/2015 Coupon Maturity
Mortgage/Borrowing Properties Balance (1) Interest Rate (2) Date 2015 2016 2017 2018 2019 >2019
Secured Fixed-Rate Debt:
Dividend Capital Portfolio 11 126,918$ 5.46% 7/2020 576$ 2,345$ 2,498$ 2,640$ 2,790$ 116,069$
Hutchins 1 24,135 6.95% 6/2029 265 1,106 1,185 1,271 1,362 18,946
Allentown 1 23,533 5.07% 1/2024 90 365 388 408 429 21,853
Lawrence 1 21,521 4.00% 1/2020 150 615 640 666 693 18,757
Waco (3) 1 15,559 2.26% 12/2020 74 298 298 298 298 14,293
Ames 1 17,014 5.53% 5/2018 113 464 494 15,943 - -
Buford 1 16,052 7.46% 7/2017 105 435 15,512 - - -
Charlotte 1 13,025 5.57% 11/2016 - 13,025 - - - -
Yuma 1 12,294 5.15% 12/2023 47 189 201 211 223 11,423
Philips Joint Venture (4) 1 10,214 6.90% 9/2035 (4) 57 283 306 328 352 8,888
Wilson 1 8,660 5.33% 10/2016 57 8,603 - - - -
Greenwood/Indianapolis 1 7,652 3.28% 6/2018 42 173 179 7,258 - -
Mt. Comfort/Indianapolis 1 6,184 3.28% 6/2018 34 140 145 5,865 - -
Des Plaines 1 2,555 5.25% 10/2020 18 74 78 82 87 2,216
Blue Grass 1 12,786 4.28% 1/2019 89 368 386 403 11,540 -
25 318,102$ 5.28% 1,717$ 28,483$ 22,310$ 35,373$ 17,774$ 212,445$
Unsecured Fixed-Rate Debt:
Convertible Debt - 115,000$ 3.75% 3/2019 -$ -$ -$ -$ 115,000$ -$
Total Fixed-Rate Debt 25 433,102$ 4.88% 1,717$ 28,483$ 22,310$ 35,373$ 132,774$ 212,445$
Unsecured Floating-Rate Debt:
Term Loan (5) - 200,000$ 3.42% 6/2019 -$ -$ -$ -$ 200,000$ -$
Term Loan 2 (6) - 100,000 1.70% 6/2019 - - - - 100,000 -
Revolving Facility (6) - 260,000 1.75% 6/2018 - - - 260,000 - -
Revolving Facility 2 (7) - 10,059 1.50% 6/2018 - - - 10,059 - -
Total Floating-Rate Debt - 570,059$ 2.32% -$ -$ -$ 270,059$ 300,000$ -$
TOTAL DEBT 25 1,003,161$ 3.43% 1,717$ 28,483$ 22,310$ 305,432$ 432,774$ 212,445$
% Secured Debt Balance to Total Debt 31.7%
% Unsecured Debt Balance to Total Debt 68.3%
(1) Current Principal Balance shown does not include GAAP FMV adjustments or discount/premium amounts
(2) Coupon Interest Rate is the stated coupon adjusted for our hedging activity or current period LIBOR for floating rate debt
(3) Floating Rate Loan with a fixed pay interest Rate SWAP (effective interest rate of 2.26%)
(4) Principal balance adjusted to reflect GPT's 25% JV interest in a $41mm loan. The loan had an anticipated repayment date in September 2015.
(5) Floating rate interest based on 1M USD LIBOR plus Applicable Rate with a fixed pay interest rate SWAP of Applicable Rate plus 1.82%
(6) Floating rate interest based on 1M USD LIBOR plus Applicable Rate
(7) Floating rate interest based on 1M EURIBOR plus Applicable Rate
Remaining Debt Amortization
(Unaudited, dollar amount in thousands, except per share data)
Comparative Statement of Operations
23
9/30/2015 9/30/2014 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014
Revenues:
Rental revenue 117,990$ 37,691$ 47,235$ 39,565$ 31,190$ 22,567$ 19,921$
Management fees 17,571 18,867 5,153 4,232 8,186 6,166 4,848
Operating expense reimbursements 29,113 12,338 11,237 9,738 8,138 8,266 8,960
Investment income 1,208 1,393 445 525 238 431 492
Other income 1,413 224 1,143 87 183 (3) 80
Total revenues 167,295 70,513 65,213 54,147 47,935 37,427 34,301
Expenses:
Property operating expenses:
Property management expenses 14,557 13,425 4,780 4,611 5,166 3,798 3,293
Property operating expenses 29,006 13,011 11,051 9,572 8,383 8,342 9,238
Total property operating expenses 43,563 26,436 15,831 14,183 13,549 12,140 12,531
Net impairment recognized in earnings - 743 - - - 4,073 743
Interest expense 23,225 11,070 9,227 7,728 6,270 5,516 4,934
Realized gain on derivative instuments - 3,300 - - - - -
Depreciation and amortization 68,534 22,451 25,120 24,716 18,698 13,958 12,306
Management, general and administrative 14,299 13,658 4,748 4,778 4,773 4,801 4,819
Acquisition costs - M&A 7,548 - 5,195 - - - -
Acquisition costs 5,960 3,246 1,352 3,455 3,506 2,925 1,323
Total expenses 163,129 80,904 61,473 54,860 46,796 43,413 36,656
Income (loss) from continuing operations before equity in income from
joint venture and provision for taxes 4,166 (10,391) 3,740 (713) 1,139 (5,986) (2,355)
Equity in net income (loss) from joint venture (974) 1,856 (1,096) 123 (1) 103 103
Income (loss) from continuing operations before provision for taxes and
net gain from disposals 3,192 (8,535) 2,644 (590) 1,138 (5,883) (2,252)
Gain on remeasurement of previously held joint venture - 72,345 - - - - -
Loss on extinguishment of debt - (1,925) - - - - -
Net gain from disposals 593 - 392 201 - - -
Provision for taxes (2,116) (971) (985) (17) (1,114) 162 (165)
Net income (loss) from continuing operations 1,669 60,914 2,051 (406) 24 (5,721) (2,417)
Net income (loss) from discontinued operations 17 (522) (41) 120 (62) (2) (41)
Net income (loss) 1,686 60,392 2,010 (286) (38) (5,723) (2,458)
Net (income) loss attributable to non-controlling interest 43 104 (20) 21 42 132 104
Net income (loss) attributable to Gramercy Property Trust Inc. 1,729 60,496 1,990 (265) 4 (5,591) (2,354)
Preferred stock redemption costs - (2,912) - - - - (2,912)
Accrued preferred stock dividends (4,676) (5,773) (1,559) (1,558) (1,559) (1,576) (2,192)
Net income (loss) available to common stockholders (2,947)$ 51,811$ 431$ (1,823)$ (1,555)$ (7,167)$ (7,458)$
Per Share Data:
Basic net income (loss) available to common stockholders (0.06)$ 2.19$ 0.01$ (0.03)$ (0.03)$ (0.21)$ (0.25)$
Diluted net income (loss) available to common stockholders (0.06)$ 2.13$ 0.01$ (0.03)$ (0.03)$ (0.21)$ (0.25)$
Basic weighted average common shares outstanding 53,226,406 23,702,710 57,666,780 55,612,741 46,747,557 33,464,916 29,481,538
Diluted weighted average common shares and common share
equivalents outstanding 53,226,406 24,296,691 58,838,683 55,612,741 46,747,557 33,464,916 29,481,538
Nine Months Ended Three Months Ended
(Unaudited, dollar amount in thousands, except per share data)
Comparative Balance Sheets
24
9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014
Assets
Real estate investments, at cost:
Land 439,591$ 418,161$ 382,797$ 239,503$ 204,048$
Building and improvements 1,623,447 1,600,471 1,283,990 828,117 745,319
Less: accumulated depreciation (66,336) (51,773) (37,919) (27,598) (19,354)
Total real estate investment, net 1,996,702 1,966,859 1,628,868 1,040,022 930,013
Cash and cash equivalents 38,108 43,595 23,715 200,069 24,135
Restricted cash 9,128 8,502 7,339 1,244 2,419
Investment in joint ventures and equity investments 13,928 2,552 498 - -
Servicing advances receivable 1,515 1,505 1,495 1,485 1,475
Retained CDO bonds 11,568 10,705 10,239 4,293 6,773
Assets held for sale, net - 18,011 8,791 - -
Tenant and other receivables, net 26,429 22,206 23,949 15,398 12,978
Acquired lease assets, net of accumulated amortization 324,421 328,719 345,666 200,231 156,788
Deferred costs, net of accumulated amortization 15,566 13,016 13,096 10,355 10,846
Goodwill 3,663 3,805 3,668 3,840 -
Other assets 10,699 18,351 15,364 23,063 17,808
Total assets 2,451,727$ 2,437,826$ 2,082,688$ 1,500,000$ 1,163,235$
Liabilities and Equity:
Liabilities:
Unsecured credit facility 270,059$ 350,000$ 235,000$ -$ 35,000$
Exchangeable senior notes 108,997 108,605 108,218 107,836 107,459
Mortgage notes payable 318,874 308,543 310,890 161,642 163,005
Senior unsecured term loan 300,000 200,000 200,000 200,000 200,000
Total long term debt 997,930 967,148 854,108 469,478 505,464
Accounts payable and accrued expenses 25,762 17,056 17,934 18,806 16,640
Dividends payable 12,927 12,924 9,741 9,579 5,180
Accrued interest payable 2,302 3,414 2,156 2,357 1,204
Deferred revenue 15,985 16,036 15,623 11,592 8,530
Below market lease liabilities, net of accumulated amortization 214,609 227,755 232,670 53,826 54,991
Liabilities related to assets held for sale - - 4,252 - -
Derivative instruments, at fair value 6,437 3,853 5,321 3,189 1,358
Other liabilities 7,849 7,581 9,043 8,263 8,274
Total liabilities 1,283,801 1,255,767 1,150,848 577,090 601,641
Noncontrolling interest in the Operating Partnership 11,277 11,277 13,732 16,129 14,621
Equity:
Common stock 57 57 47 47 30
Series A cumulative redeemable preferred stock - - - - -
Series B cumulative redeemable preferred stock 84,394 84,394 84,394 84,394 84,394
Additional paid-in-capital 2,053,955 2,053,265 1,787,847 1,768,977 1,391,978
Accumulated other comprehensive loss (1,131) 1,445 (303) (3,703) (3,043)
Accumulated deficit (980,781) (968,516) (954,024) (942,934) (926,386)
Total stockholders' equity 1,156,494 1,170,645 917,961 906,781 546,973
Noncontrolling interest in other partnerships 155 137 147 - -
Total equity 1,156,649 1,170,782 918,108 906,781 546,973
Total liabilities and equity 2,451,727$ 2,437,826$ 2,082,688$ 1,500,000$ 1,163,235$
(Unaudited, dollar amount in thousands, except per share data)
Comparative Computation of FFO
25
9/30/2015 9/30/2014 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014
Net income (loss) attributable to common stockholders and unitholders (2,947)$ 51,811$ 431$ (1,823)$ (1,555)$ (7,167)$ (7,458)$
Add:
Depreciation and amortization 68,534 22,451 25,120 24,716 18,698 13,957 12,306
FFO adjustments for unconsolidated joint ventures 377 4,019 178 121 78 67 67
Net income (loss) attributed to noncontrolling interest (43) (104) 20 (21) (42) (132) (104)
Income (loss) from discontinued operations (17) 522 41 (120) 62 2 41
Less:
Non-real estate depreciation and amortization (653) (580) (214) (223) (216) (204) (204)
Gain on remeasurement of previously held joint venture - (72,345) - - - - -
Net gain from disposals (593) - (392) (201) - - -
Funds from operations attributable to common stockholders and
unitholders 64,658$ 5,774$ 25,184$ 22,449$ 17,025$ 6,523$ 4,648$
Add:Acquisition costs 5,960 3,246 1,352 1,102 3,506 2,925 1,323 Acquisition costs for joint ventures and equity investments 1,047 - 1,047 - - - - Merger related costs 7,548 - 5,195 2,353 - - - Net impairment recognized in earnings - 743 - - - 4,073 743 Loss on extinguishment of debt - 1,925 - - - - - Loss (gain) on derivative instruments - 3,300 - - - - - Preferred stock redemption costs - 2,912 - - - - 2,912 Change in preferred stock dividends - 564 - - - - 564
European Fund setup costs 221 - - - 221 - -
Less:Recovery of servicing advances (1,071) - (1,071) - - - -
Core funds from operations attributable to common stockholders
and unitholders, before discontinued operations 78,363$ 18,464$ 31,707$ 25,904$ 20,752$ 13,521$ 10,190$
Add:
Non-cash stock-based compensation expense 2,731 2,098 1,048 849 834 803 864
Amortization of market lease assets 2,632 973 699 1,063 870 337 374
Amortization of deferred financing costs and non-cash interest 1,270 2,041 404 291 575 520 763
Amortization of lease inducement costs 183 132 87 52 44 43 44
Return on construction advances - 358 - - - - -
Non-real estate depreciation and amortization 653 580 214 223 216 204 204
Amortization of free rent received at property acquisition 2,886 369 1,161 1,146 579 175 146
Less:
AFFO adjustments for joint ventures and equity investments (119) (793) (117) (1) (1) 2 (21)
Straight-lined rent (8,940) (2,832) (3,456) (3,312) (2,172) (1,163) (1,100)
Amortization of market lease liabilities (12,997) (2,336) (4,997) (3,178) (4,822) (1,325) (1,662)
Change in preferred stock dividends - (564) - - - - (564)
Adjusted funds from operations attributable to common
stockholders and unitholders 66,662$ 18,490$ 26,750$ 23,037$ 16,875$ 13,117$ 9,238$
Funds from operations per share - diluted 1.17$ 0.24$ 0.43$ 0.39$ 0.35$ 0.19$ 0.15$
Core funds from operations per share - diluted 1.42$ 0.76$ 0.54$ 0.45$ 0.43$ 0.39$ 0.33$
Adjusted funds from operations per share - diluted 1.21$ 0.76$ 0.45$ 0.40$ 0.35$ 0.38$ 0.30$
Weighted average common shares and units outstanding 54,124,665 23,841,807 58,136,648 56,363,272 47,538,668 34,370,652 30,173,283
Diluted weighted average common shares and units outstanding 55,035,187 24,296,691 58,838,683 57,307,876 48,633,920 34,847,402 30,629,169
Nine Months Ended Three Months Ended
(Unaudited, dollar amount in thousands, except per share data)
Business Segment Report
26
Total real estate investments, net
Cash and cash equivalents $ 24,281 $ 4,495 $ 9,332 $ 38,108
Real estate assets, net 1,553,965 - 456,665 2,010,630
Acquired lease assets, net 228,641 - 95,780 324,421
Goodw ill - 3,663 - 3,663
Retained CDO bonds 11,568 - - 11,568
Other assets 50,402 3,270 9,665 63,337
Total assets $ 1,868,857 $ 11,428 $ 571,442 $ 2,451,727
Dividends payable $ 12,927 $ - $ - $ 12,927
Exchangeable senior notes 108,997 - - 108,997
Unsecured credit facility 270,059 - - 270,059
Unsecured term loan 300,000 - - 300,000
Mortgage notes payable 318,874 - - 318,874
Acquired lease liabilities, net 31,004 - 183,605 214,609
Other liabilities 36,915 2,027 19,393 58,335
Total liabilities $ 1,078,776 $ 2,027 $ 202,998 $ 1,283,801
For the three months ended September 30, 2015:
Revenues:
Net rental revenue and operating expense reimbursements $ 41,698 $ - $ 16,774 $ 58,472 $ 441 $ - $ 58,913
Management fees - 5,153 - 5,153 - - 5,153
Interest income 445 - - 445 - - 445
Other revenue 1,153 (15) 5 1,143 - - 1,143
Total revenues 43,296 5,138 16,779 65,213 441 - 65,654
Expenses:
Property operating expenses 3,606 4,780 7,445 15,831 74 - 15,905
Management, general and administrative 4,617 131 - 4,748 - - 4,748
Business acquisition costs 1,352 - - 1,352 1,047 - 2,399
Business acquisition costs - M&A 5,195 - - 5,195 - - 5,195
Depreciation 18,915 37 6,168 25,120 179 - 25,299
Interest expense 9,347 - (120) 9,227 168 - 9,395
Other expenses, net (impairments) - - - - 152 - 152
Total expenses 43,032 4,948 13,493 61,473 1,620 - 63,093
Equity in net income (loss) from joint venture (1,096) - - (1,096) - 1,179 83
Income (loss) from continuing operations before
provision for taxes $ (832) $ 190 $ 3,286 $ 2,644 $ (1,179) $ 1,179 $ 2,644
(1) Amount includes: (a) The Company's 25% equity interest in the results of operations of the Philips Building Joint Venture. During the 1st quarter of 2015, the Company recognized distributions in excess of its investment in the Philips
Building Joint Venture, and the excess distributions w ere recognized as additional income from the joint venture. (b) The Company's interest in the Gramercy European Property Fund, w hich incurred property acquisition costs and
other expenses relating to the Fund's six properties, f ive of w hich w ere acquired in the third quarter of 2015.
Total
Investments /
Corporate
Asset
Management
Bank of America
Portfolio Total
Investments /
Corporate
Asset
Management
Bank of America
Portfolio Total GPT
Joint
Ventures Eliminations (1)
Joint Ventures(Unaudited, dollar amount in thousands)
27
For the three months ended September 30, 2015
(Unaudited, amount in thousands)
Joint Ventures:
Rental income and reimbursements $ 1,975
Interest and other income -
Total revenues 1,975
Property operating expenses 375
Acquisition Costs 5,289
Property net operating income (loss) (NOI) (3,689)
Interest expense 700
Depreciation expense 820
Total expenses (5,209)
Loss on derivatives (591)
Provision for taxes (178)
Net income (loss) $ (5,978)
$ 103 (1)
$ (1,199) (2)
$ (1,096)
(2) In the third quarter of 2015, Gramercy Europe Fund plc closed on five properties in tw o separate transactions for a
total purchase price of approximately €85.6 million and partially funded w ith a new €47.8 million non-recourse f irst
mortgage.
Net loss recognized by Gramercy Property Trust Inc. - Gramercy Property Europe plc
Three Months Ended
September 30, 2015
(1) During the third quarter of 2015, the Company recognized distributions in excess of its investment in the Philips
Building Joint Venture, and the excess distributions w ere recognized as additional income from the joint venture.
Net income recognized by Gramercy Property Trust Inc. - Philips Joint Venture
Net loss from Joint Ventures
MG&A Summary
28
9/30/2015 9/30/2014 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014
Corporate 13,855$ 11,638$ 4,617$ 4,642$ 4,596$ 3,958$ 4,296$
Asset Management 444 2,020 131 136 177 800 523
Total MG&A 14,299$ 13,658$ 4,748$ 4,778$ 4,773$ 4,758$ 4,819$
Nine Months Ended Three Months Ended
