SANTA ANA, Calif., Nov. 8 /PRNewswire-FirstCall/ -- NNN Realty Advisors, Inc., a full-service nationwide commercial real estate asset management and services firm, today announced financial results for the third quarter ended September 30, 2007. NNN Realty Advisors (the Company) reported revenue of $53.1 million, earnings per share (EPS) of $0.10 and earnings before interest, taxes, depreciation and amortization (EBITDA) of $16.5 million. Excluding $4.7 million of non-cash and non-recurring items, net of taxes, normalized revenue was $47.0 million, normalized EPS was $0.21 and normalized EBITDA was $14.8 million.Business Highlights * On November 2, 2007, the Securities and Exchange Commission (SEC) declared the Registration Statement related to the proposed merger between NNN Realty Advisors and Grubb & Ellis Company (NYSE: GBE - News) effective, allowing for a shareholder vote on December 6, 2007 * Cash and cash equivalents totaled $51.9 million, which reflects a reduction of $25.0 million to fund a deposit held in escrow related to the Company's proposed merger with Grubb & Ellis Company * Raised $547.4 million on a year-to-date basis ($341.3 million in tenant- in-common (TIC) programs and $206.1 million in SEC-Registered non-traded real estate investment trust (REIT) programs), which represents a 50% increase over the $364.3 million raised through the first nine months of 2006 * Expanded the portfolio of properties under management to 39.1 million square feet, valued at approximately $5.4 billion, with the completion of 59 acquisitions year-to-date valued in excess of $1.6 billion * Increased the number of TIC investors to more than 3,900, which represents a 26% increase from the 3,100 investors as of the beginning of the year * Increased the number of investors in NNN Healthcare/Office REIT, Inc. and NNN Apartment REIT, Inc., to more than 5,300 and 2,400, respectively * Paid a dividend for the third quarter of 2007 of $0.09 per common share on October 15, 2007 to stockholders of record as of September 28, 2007 * Distributions of $247.7 million year-to-date to TIC investors * Distributions of $152.4 million year-to-date to SEC-registered non- traded REIT investors, of which $2.9 million and $1.8 million were paid to investors in the Healthcare/Office REIT and Apartment REIT, respectively. These payments represent a yield of 7.25% and 6.90% in the Healthcare/Office REIT and Apartment REIT, respectively. The remaining distributions were primarily made to investors in G REIT as a result of the continuing liquidation of that non-traded REIT.
"The ability of NNN Realty Advisors to successfully execute our business plan through the fluctuations in the capital markets during the third quarter demonstrates the fundamental strength of our company," commented Scott D. Peters, CEO and president of NNN Realty Advisors. "Upon completion of the merger with Grubb & Ellis Company, we expect to leverage their well- established brand to further strengthen and expand the market reach of the various investment programs sponsored by NNN Realty Advisors."
NNN Realty Advisors was formed in September 2006 to acquire Triple Net Properties, LLC (Triple Net Properties); Triple Net Properties Realty, Inc. (Realty); and NNN Capital Corp., (Capital Corp.) and to bring the businesses conducted by those companies under one corporate umbrella. In November of 2006, NNN Realty Advisors completed a $160.0 million private placement of common stock to institutional investors and certain accredited investors with 16 million shares of its common stock sold in the offering at $10.00 per share. Net proceeds from the offering totaled approximately $146.0 million. Triple Net Properties was the predecessor to NNN Realty Advisors prior to November 16, 2006 and therefore the results of operations for the three and nine months ended September 30, 2006 do not include the earnings of the acquired subsidiaries, but instead include the results of Triple Net Properties for the full period.
Read More
