Griffin Land & Nurseries Inc. (NASDAQ:GRIF) filed Annual Report for the period ended 2010-11-27.
Griffin Land & Nurseries Inc. has a market cap of $147 million; its shares were traded at around $31.14 with and P/S ratio of 3.8. The dividend yield of Griffin Land & Nurseries Inc. stocks is 1.4%.Mutual Fund and Other Gurus that owns GRIF: David Swensen of Yale University, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.
Highlight of Business Operations:Griffin Land currently owns thirty buildings comprising approximately 2.5 million square feet. Approximately 76% of the square footage owned is industrial/warehouse space, with the balance principally being office/flex space. As of November 27, 2010, Griffin Land's industrial/warehouse space had a 79% occupancy rate while Griffin Land's office/flex space had an 84% occupancy rate. Griffin Land uses nonrecourse mortgages to partly finance its real estate development activities, and as of November 27, 2010, approximately $63.0 million was outstanding on such loans. In fiscal 2010, Griffin Land's profit from its leasing activities including general and administrative expenses and before depreciation and amortization expenses was $9.6 million (see note (a) on page 26 under Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, Fiscal 2010 Compared to Fiscal 2009), while debt service on its nonrecourse mortgage debt was $5.7 million.
There were no property sales in fiscal 2009. Property sales revenue in fiscal 2008 included the sale of approximately 75 acres of undeveloped land in Simsbury, Connecticut, which was sold to the Town of Simsbury for open space as part of the settlement of litigation related to Meadowood, Griffin Land's proposed residential development (see the section titled "Residential Developments-Simsbury" in this Item on page 8). Griffin received $0.5 million in cash at the closing, and an additional $2.2 million is being paid by the town in four installments from 2009 through 2012. The first two installments of $0.5 million each (including interest) were received in fiscal 2009 and fiscal 2010. Also in fiscal 2008, Griffin Land recognized the remaining amounts of revenue and profit that had been deferred from the fiscal 2006 sale of undeveloped land in Tradeport to Walgreen Co. ("Walgreen"). Although all of the cash proceeds from that sale were received in fiscal 2006, because that transaction was accounted for using the percentage of completion method, a portion of the revenue and profit from that sale was initially deferred and recognized in subsequent periods as the required road improvements were made. As of November 29, 2008, all of the required road improvements were completed.
Griffin Center currently includes eleven office buildings (including the building built by The Hartford), a flex building and a small restaurant, five of which are owned by Griffin Land. Griffin Land currently owns two multi-story office buildings that have an aggregate of approximately 161,000 square feet, a single story office building of approximately 48,000 square feet, a 165,000 square foot flex building used principally as office, data center and call center space and the small restaurant building. As of November 27, 2010, approximately $19.2 million was invested (net book value) in Griffin Land's buildings in Griffin Center and approximately $1.3 million was invested by Griffin Land in the undeveloped land there. Griffin Land's two multi-story office buildings and its light manufacturing building in Griffin Center are separately mortgaged for an aggregate of approximately $11.7 million, and Griffin Land's single story office building is included as collateral under Griffin's $10 million revolving line of credit. There were no borrowings under the revolving line of credit as of November 27, 2010.
As of November 27, 2010, approximately $8.8 million was invested (net book value) in Griffin Land's buildings in Griffin Center South and approximately $0.4 million was invested by Griffin Land in the undeveloped land there. As of November 27, 2010, eight of Griffin Land's nine properties in Griffin Center South, aggregating approximately 195,000 square feet, are included as collateral under Griffin's $10 million revolving line of credit. There were no borrowings under the revolving line of credit as of November 27, 2010. Undeveloped land remaining in Griffin Center South is sufficient to build at least two additional buildings aggregating approximately 175,000 square feet.
In the fiscal 2010 first quarter, Griffin Land completed its first acquisition of property outside of the Hartford, Connecticut area, acquiring a fully leased 120,000 square foot industrial building in Breinigsville, Pennsylvania. Subsequent to the purchase of this Pennsylvania industrial building, Griffin Land and the tenant agreed on a nine year extension of the lease, which now runs through 2025. As a result of the acquisition of the industrial building in Pennsylvania, Griffin Land owns three industrial buildings aggregating approximately 458,000 square feet that are located outside of its core office and industrial parks. The other two industrial buildings are a 308,000 square foot building in Manchester, Connecticut and a 31,000 square foot warehouse building in Bloomfield, Connecticut. All of these buildings are fully leased. As of November 27, 2010, approximately $19.8 million was invested (net book value) in these three buildings. The industrial building in Pennsylvania is mortgaged for approximately $4.2 million as of November 27, 2010, while the two Connecticut buildings have not been mortgaged.
In fiscal 2010, Griffin Land entered into an agreement with that regional homebuilder whereby in exchange for a payment of $100,000, the homebuilder obtained an option to purchase the remaining twenty-five residential lots of Stratton Farms. Under the terms of the agreement, if the homebuilder exercises its option to purchase all of the residential lots, Griffin Land would receive proceeds that would range from approximately $2.4 million to approximately $2.9 million, depending upon the timing of the lot purchases, over the three-year period from October 2010 through October 2013. The buyer's
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