LONDON, UK / ACCESSWIRE / October 10, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Griffin Industrial Realty, Inc. (NASDAQ: GRIF) ("Griffin"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=GRIF. The Company announced on October 06, 2017, that it has entered into an agreement for the purchase of an undeveloped land in North Carolina. The undeveloped land is spread across 22 acres in Concord, North Carolina. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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As per the agreement, Griffin has agreed to pay $2.6 million in cash towards the purchase, before closing costs.
Land to Be Used For Industrial/Warehouse Space
Once the transaction is complete, Griffin intends to utilize the land for an industrial/warehouse development. The land is in close proximity to Griffin's recently acquired industrial/warehouse building in the greater Charlotte area, covering a stretch of approximately 277,000 square feet. However, the expanse of industrial/warehouse space to be developed on the new land would be determined from the due diligence findings.
Presently, Griffin owns more than 3.3 million square feet in Connecticut and Pennsylvania and has land holdings totaling 4,500 acres in Connecticut, Massachusetts, Pennsylvania, and Florida. The Company has an acquisition and development strategy that focuses on flexible and modern warehouses and light industrial buildings in strong regional markets in the Middle Atlantic, as well as Northeast. Griffin mainly targets land for development, or buildings that are located near major highways and densely populated markets.
Transaction Closing Details
As of now, the purchase closing is subject to various conditions, such as the satisfactory outcome of due diligence and getting all governmental approvals for Griffin's development plans for the land.
Griffin expects the closing to take place in fiscal 2018, though, presently, there isn't any assurance that the transaction would be completed under its current terms, or at all.
Update on Mortgage Loan Refinancing
On September 25, 2017, Griffin shared that two of its subsidiaries have closed on the refinancing of a nonrecourse mortgage loan with Webster Bank.
Debt Structure Changes
Immediately preceding the refinancing, the existing loan account had a balance of nearly $5.9 million with a maturity date of October 02, 2017. Whereas the new loan, that is the refinanced nonrecourse mortgage loan, is for roughly $4.4 million. It has a five-year term with principal payments based on a twenty-five year amortisation schedule. The collateral for the loan includes 5 and 7 Waterside Crossing, which are two multi-story office buildings totaling around 161,000 square feet in Griffin Center in Windsor, Connecticut.
Sources for Loan Repayment
For repaying a portion of its existing loan, Griffin used cash on hand of approximately $1.0 million. For the remaining $0.5 million, the Company leveraged the amount that had been held in escrow by Webster.
Interest Rate Changes
The new loan came with a variable interest rate that includes one-month LIBOR rate plus 2.75%. However, Griffin signed an interest rate swap agreement with Webster that effectually fixes the interest rate on the new loan at 4.72% over the entire term of the loan. This is higher than what was determined for the existing loan. The existing loan came with a variable interest rate, which was effectively fixed at 3.86% through an interest rate swap agreement with Webster.
Last Close Stock Review
On Monday, October 09, 2017, the stock closed the trading session at $36.85, marginally falling 0.14% from its previous closing price of $36.90. A total volume of 331 shares have exchanged hands. Griffin Industrial Realty's stock price surged 16.95% in the last three months, 17.84% in the past six months, and 16.84% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 16.14%. The stock is trading at a PE ratio of 36.56 and has a dividend yield of 0.81%. At Monday's closing price, the stock's net capitalization stands at $184.25 million.
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