Item 2.02. Results of Operations and Financial Condition
The information set forth in Item 7.01 below is incorporated by reference into this Item 2.02. If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ? Item 7.01. Regulation FD Disclosure
On
Leasing
Griffin reported the following for its industrial/warehouse portfolio for the
three months ended
Weighted Weighted Avg. Avg. Rent Growth 2 Weighted Lease Number of Square Feet Avg. Lease Costs PSF Straight-line Leases1 Term in Years per Year 1 Basis Cash Basis New leases - - - - - - Renewals 3 83,000 6.1$0.51 16.5% 3.6% 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, May 31, Feb. 29, 2020 2020 2020 Percentage Leased 94.3% 94.3% 94.9% Percentage Leased - Stabilized Properties 3 99.7% 99.7% 99.1% Approximately 79,000 square feet of the 83,000 square feet renewed this quarter was in Griffin's New England Tradeport industrial park inWindsor andEast 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 a large 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 1 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. 2 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. 3 Stabilized properties reflect buildings that have reached 90% leased or have been in-service for at least one year since development completion or acquisition date, whichever is earlier. Stabilized properties exclude160 and 180 International Drive in theCharlotte, North Carolina area that were completed in the 2019 fourth quarter and were 37.1% leased as ofAugust 31, 2020 and 170 Sunport Lane , which was acquired in the 2020 second quarter and was 25.9% leased as ofAugust 31, 2020 . --------------------------------------------------------------------------------
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 filing. Griffin collected 99.9% of rent in each of June, July and August, inclusive of rent relief. Griffin entered into agreements with two tenants that granted rent relief aggregating approximately 0.5% of Griffin's anticipated total annual rent for fiscal year 2020. The much larger of these two tenants is a subsidiary of a Fortune 500 company and the rent relief was granted as part of an early 5-year renewal of that tenant's lease that was executed subsequent toAugust 31, 2020 . Griffin has not received any new requests for rent relief subsequent toApril 30, 2020 and no previous requests remain outstanding. 6
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