Los Angeles Business Journal

Griffin Swings to a Profit

By Jacquelyn Ryan Wednesday, November 14, 2012

EDITOR'S NOTE: This story has been corrected to include amortization in the description of funds from operations.

El Segundo real estate investment trust Griffin Capital Net Lease REIT Inc. swung to a profit last quarter after adding four income-generating buildings to its portfolio this year.

For the third quarter ended Sept. 30, the company reported net income of $55 million (1 cent per share), up from a loss of $208 million (-5 cents a share) in the year-ago period.

Funds from operations, a REIT metric that removes the profit-reducing effect of depreciation and amortization, increased 107 percent to $2.7 million from $1.3 million the previous year.

Revenues rose 60 percent to nearly $6.89 billion, from nearly $4.30 billion.

The company added four buildings, occupied by national tenants including AT&T Wireless and Westinghouse Electric Company LLC, to its portfolio this year, growing it to 11 office and industrial distribution properties totaling 2.8 million square feet.