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Gouverneur Bancorp Inc Reports Operating Results (10-Q)

November 02, 2010 | About:
10qk

10qk

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Gouverneur Bancorp Inc (GOV) filed Quarterly Report for the period ended 2010-09-30.

Gouverneur Bancorp Inc has a market cap of $1.08 billion; its shares were traded at around $26.94 with a P/E ratio of 15 and P/S ratio of 13.7. The dividend yield of Gouverneur Bancorp Inc stocks is 6%.GOV is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

As of September 30, 2010, we owned 53 properties, located in 23 states and the District of Columbia, that contain approximately 6.5 million rentable square feet, of which 91.0% is leased to the U.S. Government and five state governments. The U.S. Government and five state governments were responsible for 93.6% and 96.0% of our annual rental income, as defined below, as of September 30, 2010 and 2009, respectively.

As of September 30, 2010, 96.0% of our rentable square feet was leased, compared to 99.6% leased as of September 30, 2009. Properties we or CWH owned continuously had a 0.4 percentage point increase in occupancy since January 1, 2009. Occupancy data as of September 30, 2010 and 2009 is as follows (square feet in thousands):

(1) The year of lease expiration is pursuant to current contract terms. Some government tenants have the right to vacate their space before the stated expirations of their leases. As of September 30, 2010, government tenants occupying approximately 13.4% of our rentable square feet, and representing approximately 9.9% of our rental income have exercisable rights to terminate their leases before the stated expirations. Also as of September 30, 2010, in 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2019, early termination rights become exercisable by other government tenants who occupy approximately 3.9%, 2.0%, 2.3%, 1.1%, 2.3%, 0.3%, 2.6%, 0.4% and 0.1%, respectively, of our rentable square feet and are responsible for approximately 3.2%, 3.1%, 2.0%, 1.4%, 2.7%, 0.3%, 3.0%, 0.8% and 0.1%, respectively, of our rental income. In addition, five of our state government tenants have exercisable rights to terminate their leases if these states do not appropriate rent amounts in their respective budgets. These five tenants occupy approximately 5.5% of our rentable square feet, representing approximately 6.6% of our rental income as of September 30, 2010.

In April 2010, we acquired two office properties for an aggregate purchase price of $31,000, excluding acquisition costs. The first property is located in Burlington, VT and contains 26,609 rentable square feet. This property is 100% leased to the U.S. Government and occupied by the Office of Security and Integrity. The purchase price was $9,700, excluding acquisition costs. The second property is located in Detroit, MI and contains 55,966 rentable square feet. This property is 100% leased to the U.S. government and occupied by the U.S. Citizenship and Immigration Service. The purchase price was $21,300, excluding acquisition costs.

In July 2010, we entered into a purchase and sale agreement to acquire an office property located in Trenton, NJ that contains 266,995 rentable square feet. The property is 96% leased to 15 tenants, of which 65% is leased to the State of New Jersey and occupied by the New Jersey Department of the Treasury. The U.S. Government also occupies 10% of the property, which is occupied by the Department of Justice and the Internal Revenue Service. The purchase price is $45,000, excluding acquisition costs. This pending acquisition is subject to our satisfactory completion of diligence, which is ongoing, and other customary conditions; accordingly, we can provide no assurance that we will acquire this property.

At September 30, 2010, we had a $250,000 secured revolving credit facility that was available for acquisitions, working capital and general business purposes. In February 2010, our property in Buffalo, NY was released as collateral for our facility. As a result of this release, as of September 30, 2010, the facility was secured by 28 of our properties. In March 2010, we amended this secured revolving credit facility to eliminate a provision in the definition of LIBOR Rate that established a LIBOR Floor of 2.0% per annum. After the elimination of the LIBOR Floor, interest under this secured revolving credit facility was generally set at LIBOR plus a spread which varied depending on the amount of our debt leverage. The weighted average annual interest rate for our secured revolving credit facility was 3.33% and 4.12% for the

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10qk
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