Griffin Realty Trust (“GRT” or the “Company”) today announced a plan to pursue a listing of the Company’s common shares on the New York Stock Exchange (“NYSE”). With the guidance of its advisors, GRT’s Board of Trustees (“Board”) and management team unanimously determined that pursuing a direct listing of the Company is the best available path in the current market environment to provide liquidity to its shareholders and the opportunity to maximize value over time. This decision is the culmination of a process initiated in 2019 whereby the Company began the evaluation of a comprehensive range of strategic monetization alternatives for the Company and its assets.
In preparation for this listing, GRT intends to implement the following strategic actions: (i) effective as of March 7, 2023, suspend the Company’s Share Redemption Program (now in place for death, qualifying disability and determination of incompetence or incapacitation), which Share Redemption Program will automatically terminate in connection with the listing in light of the fact a trading market will exist for the Company’s common shares, and (ii) ahead of the listing, transition to Computershare as transfer agent to the Company and its shareholders and complete a reverse share split (See “Additional Information” section below).
Furthermore, considering the need to retain greater liquidity as a listed company, the Board has declared a reduced distribution rate of $0.10 per common share annualized, subject to adjustments for class-specific expenses, for the month of February 2023, which will be payable to shareholders on or about March 1, 2023. In addition, for distributions following the February distribution, the Company will cease calculating and determining record holders for its distribution rate daily, and instead will pay distributions to holders of common shares in a specific amount and on a specified record date. The amount and timing of such future distributions will be determined at the discretion of the Board.
Michael Escalante, GRT’s President and Chief Executive Officer, commented, “We have made significant progress in reducing debt on our balance sheet and de-risking our portfolio, as well as proactively managing our portfolio’s maturing leases. After careful consideration of the changing conditions in the macroeconomic environment, and with the best interests of our shareholders and our primary objectives (shareholder liquidity and value maximization) in mind, the Board and management team made the strategic decision to pursue a listing of the Company’s common shares. We believe a listing of the entire company’s common shares is currently the best available path forward to accomplish our goals. I have confidence in our team and remain optimistic regarding our ability to extract the value embedded within the current portfolio and take advantage of growth opportunities available in today’s dynamic real estate markets.”
Additional Information
The Board and management team will provide periodic and timely updates on the execution of these strategic actions in subsequent company disclosures and filings as they deem appropriate. The exact details and timing of the above-mentioned strategic actions are subject to change.
Beginning on or around March 8, 2023, the Company plans to transition to Computershare as transfer agent to the Company and its shareholders. Shareholders seeking to access their accounts online will need to establish an account under Computershare’s Investor Center, and can elect the electronic delivery of statements, tax forms, and proxy materials. Shareholders should expect to receive a welcome letter from Computershare during the week starting March 20, 2023, which will include the account number that is needed to complete the Investor Center registration.
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