INDUS Realty Trust (INDT) 10-Q 10 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	May 31, 2018	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name	GRIFFIN INDUSTRIAL REALTY, INC.
Entity Central Index Key	1,037,390
Document Type	10-Q
Document Period End Date	May 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--11-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		5,028,608
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2018	Nov. 30, 2017
ASSETS
Real estate assets at cost, net	$ 205,114	$ 196,740
Cash and cash equivalents	28,778	30,068
Real estate assets held for sale	1,217	1,932
Deferred income taxes	1,313	1,904
Other assets	19,009	18,393
Total assets	255,431	249,037
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage loans, net of debt issuance costs	133,965	129,203
Deferred revenue	9,836	11,818
Accounts payable and accrued liabilities	8,596	4,991
Dividend payable		2,000
Other liabilities	7,534	7,972
Total liabilities	159,931	155,984
Commitments and Contingencies (Note 8)
Stockholders' Equity
Common stock, par value $0.01 per share, 10,000,000 shares authorized, 5,577,852 and 5,541,029 shares issued, respectively, and 5,018,953 and 5,000,535 shares outstanding, respectively	56	55
Additional paid-in capital	110,156	108,770
Retained earnings	2,329	2,806
Accumulated other comprehensive income (loss), net of tax	1,974	(284)
Treasury stock, at cost, 558,899 and 540,494 shares, respectively	(19,015)	(18,294)
Total stockholders' equity	95,500	93,053
Total liabilities and stockholders' equity	$ 255,431	$ 249,037

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	May 31, 2018	Nov. 30, 2017
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,577,852	5,541,029
Common stock, shares outstanding	5,018,953	5,000,535
Treasury stock, shares	558,899	540,494

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Consolidated Statements of Operations
Rental revenue	$ 8,193	$ 7,332	$ 16,373	$ 14,311
Revenue from property sales	898	10,755	1,023	10,755
Total revenue	9,091	18,087	17,396	25,066
Operating expenses of rental properties	2,412	2,204	5,089	4,689
Depreciation and amortization expense	2,889	2,386	5,707	4,736
General and administrative expenses	1,836	2,166	3,973	4,396
Costs related to property sales	55	2,660	144	2,660
Total expenses	7,192	9,416	14,913	16,481
Operating income	1,899	8,671	2,483	8,585
Interest expense	(1,547)	(1,444)	(3,079)	(2,757)
Investment income	11	53	26	62
Income (loss) before income tax provision	363	7,280	(570)	5,890
Income tax provision	(32)	(2,553)	(822)	(2,102)
Net income (loss)	$ 331	$ 4,727	$ (1,392)	$ 3,788
Basic net loss per common share:
Basic net income (loss) per common share (in dollars per share)	$ 0.07	$ 0.95	$ (0.28)	$ 0.75
Diluted net loss per common share:
Diluted net income (loss) per common share (in dollars per share)	$ 0.07	$ 0.94	$ (0.28)	$ 0.75

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 331	$ 4,727	$ (1,392)	$ 3,788
Other comprehensive income (loss), net of tax:
Reclassifications included in net income (loss)	146	218	338	427
Unrealized gain (loss) on cash flow hedges	7	(829)	1,956	(625)
Increase in fair value of Centaur Media plc		65		192
Total other comprehensive income (loss), net of tax	153	(546)	2,294	(6)
Total comprehensive income	$ 484	$ 4,181	$ 902	$ 3,782

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Balance at beginning of period at Nov. 30, 2016	$ 55	$ 108,438	$ 179	$ (1,049)	$ (16,820)	$ 90,803
Balance (in shares) at Nov. 30, 2016	5,541,029
Increase (Decrease) in Stockholders' Equity
Stock-based compensation expense		170				170
Repurchase of common stock					(1,474)	(1,474)
Net income (loss)			3,788			3,788
Total other comprehensive income (loss), net of tax				(6)		(6)
Balance at end of period at May. 31, 2017	$ 55	108,608	3,967	(1,055)	(18,294)	93,281
Balance (in shares) at May. 31, 2017	5,541,029
Balance at beginning of period at Nov. 30, 2017	$ 55	108,770	2,806	(284)	(18,294)	93,053
Balance (in shares) at Nov. 30, 2017	5,541,029
Increase (Decrease) in Stockholders' Equity
Stock-based compensation expense		178				178
Exercise of stock options, including tax benefit of $46 and shares tendered related to stock options exercised and tax witholdings	$ 1	1,208			(721)	488
Exercise of stock options, including tax benefit of $46 and shares tendered related to stock options exercised and tax witholdings (in shares)	36,823
Net income (loss)			(1,392)			(1,392)
Total other comprehensive income (loss), net of tax				2,294		2,294
Balance at end of period at May. 31, 2018	$ 56	$ 110,156	2,329	1,974	$ (19,015)	95,500
Balance (in shares) at May. 31, 2018	5,577,852
Increase (Decrease) in Stockholders' Equity
Adoption of ASU | ASU 2016-09			879			$ 879
Adoption of ASU | ASU 2018-02			$ 36	$ (36)

Consolidated Statements of Cha7

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands	6 Months Ended
	May 31, 2018USD ($)
Consolidated Statements of Changes in Stockholders' Equity
Tax benefit	$ 46

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	May 31, 2018	May 31, 2017
Operating activities:
Net (loss) income	$ (1,392)	$ 3,788
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	5,707	4,736
Gain on sales of properties	(879)	(8,095)
Deferred income taxes	822	2,102
Stock-based compensation expense	178	170
Amortization of debt issuance costs	146	134
Other	112
Changes in assets and liabilities:
Other assets	1,577	(991)
Accounts payable and accrued liabilities	(879)	(923)
Deferred revenue	(1,982)	720
Other liabilities	241	913
Net cash provided by operating activities	3,651	2,554
Investing activities:
Additions to real estate assets	(8,085)	(5,322)
Proceeds from sales of properties, net of expenses	998	10,086
Proceeds from sales of properties deposited in escrow, net	(754)	(6,175)
Deferred leasing costs and other	(239)	(874)
Net cash used in investing activities	(8,080)	(2,285)
Financing activities:
Proceeds from mortgage loans	18,781	12,000
Principal payments on mortgage loans	(13,572)	(1,604)
Dividends paid to stockholders	(2,000)	(1,514)
Payment of debt issuance costs	(558)	(222)
Proceeds from exercise of stock options	527
Repurchase of common stock		(1,474)
Other	(39)
Net cash provided by financing activities	3,139	7,186
Net (decrease) increase in cash and cash equivalents	(1,290)	7,455
Cash and cash equivalents at beginning of period	30,068	24,689
Cash and cash equivalents at end of period	$ 28,778	$ 32,144

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	May 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation Griffin Industrial Realty, Inc. ("Griffin") is a real estate business principally engaged in developing, managing and leasing industrial/warehouse properties and, to a lesser extent, office/flex properties. Griffin seeks to add to its industrial/warehouse property portfolio through the acquisition and development of land or purchase of buildings in select markets targeted by Griffin. Periodically, Griffin may sell certain portions of its undeveloped land that it has owned for an extended time period and the use of which is not consistent with Griffin's core development and leasing strategy. These financial statements have been prepared in conformity with the standards of accounting measurement set forth by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270, “Interim Reporting” and in accordance with the accounting policies stated in Griffin’s audited consolidated financial statements for the fiscal year ended November 30, 2017 (“fiscal 2017”) included in Griffin’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 8, 2018. These financial statements should be read in conjunction with the Notes to Consolidated Financial Statements appearing in that report. All adjustments, comprising only normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of results for the interim periods, have been reflected and all intercompany transactions have been eliminated. The consolidated balance sheet data as of November 30, 2017 was derived from Griffin’s audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. Griffin regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, stock-based compensation expense, deferred income tax asset valuations and the valuation of derivative instruments. Griffin bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by Griffin may differ materially and adversely from Griffin’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. As of May 31, 2018, Griffin was a party to several interest rate swap agreements to hedge its interest rate exposure. Griffin does not use derivatives for speculative purposes. Griffin applies FASB ASC 815-10, “Derivatives and Hedging,” (“ASC 815-10”) as amended, which establishes accounting and reporting standards for derivative instruments and hedging activities. ASC 815-10 requires Griffin to recognize all derivatives as either assets or liabilities on its consolidated balance sheet and measure those instruments at fair value. The changes in the fair values of the interest rate swap agreements are measured in accordance with ASC 815-10 and reflected in the carrying values of the interest rate swap agreements on Griffin’s consolidated balance sheet. The estimated fair values are based primarily on projected future swap rates. Griffin applies cash flow hedge accounting to its interest rate swap agreements that are designated as hedges of the variability of future cash flows from floating rate liabilities based on the benchmark interest rates. Changes in the fair values of Griffin’s interest rate swap agreements are recorded as components of accumulated other comprehensive income (loss) in stockholders’ equity to the extent they are effective. Any ineffective portions of the changes in fair values of these instruments would be recorded as interest expense or interest income. The results of operations for the three months ended May 31, 2018 (the “2018 second quarter”) and the six months ended May 31, 2018 (the “2018 six month period”) are not necessarily indicative of the results to be expected for the full year. The three months and six months ended May 31, 2017 are referred to herein as the “2017 second quarter” and “2017 six month period,” respectively. Recent Accounting Pronouncements Adopted In February 2018, the FASB issued Accounting Standards Update (“ASU” or “Update”) No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which is intended to eliminate the stranded tax effects within Accumulated Other Comprehensive Income (“AOCI”) resulting from the Tax Cuts and Jobs Act (“TCJA”) that was enacted on December 22, 2017. The effective date of ASU 2018-02 is for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted for public entities for which financial statements have not yet been released. Griffin elected to early adopt and apply the provisions of ASU 2018-02 in the 2018 first quarter. This adoption resulted in a one-time reclassification of the effect of re-measuring Griffin’s net deferred tax assets related to interest rate swap agreements within AOCI and retained earnings resulting from the reduction in the U.S. federal statutory tax rate from 35% to 21%. The reclassification resulted in a decrease to AOCI and an increase to retained earnings of $36 in the 2018 first quarter, with no net impact to total stockholders’ equity. In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation: Scope of Modification Accounting,” which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. This Update requires modification only if the fair value, vesting conditions or the classification of the award changes as a result of the change in terms or conditions. This Update became effective for Griffin in the 2018 first quarter and was applied on a prospective basis. The adoption of ASU No. 2017-09 did not have an impact on Griffin’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) – Clarifying the Definition of a Business,” which provides a more robust framework to use in determining when a set of assets and activities is a business. This Update also provides greater consistency in applying the guidance by making the definition of a business more operable. This Update became effective for Griffin in the 2018 first quarter. The adoption of ASU 2017-01 did not have an impact on Griffin’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” which relates to the accounting for employee share-based payments. This Update addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This Update became effective for Griffin in the 2018 first quarter. Griffin recorded a deferred tax asset of $879 with a corresponding increase in retained earnings upon adoption. The adoption of ASU 2016-09 did not affect the classification of any current awards and did not have a retrospective impact on Griffin’s cash flows as no tax benefits from stock options were recognized in the periods presented. As part of the adoption of this Update, Griffin is continuing its policy of estimating the forfeiture rate of options. Recent Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which is intended to improve the financial reporting for hedging relationships to better represent the economic results of a company’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance. This Update will make more financial and nonfinancial hedging strategies eligible for hedge accounting, amend the presentation and disclosure requirements and change how entities assess effectiveness. This Update will become effective for Griffin in fiscal 2020. Griffin does not expect an impact from the application of this Update on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. The accounting applied by lessors under this Update is largely unchanged from that applied under current U.S. GAAP. Leases will be either classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. This Update also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This Update will become effective for Griffin in fiscal 2020 using a modified restatement approach for leases in effect as of and after the date of adoption. Early adoption and practical expedients to measure the effect of adoption is allowed. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This Update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This Update is not applicable to revenue from leases. This Update supersedes most current revenue recognition guidance, including industry specific guidance, and requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Additionally, the Update requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The Update permits the use of either the retrospective or cumulative effect transition method. This Update will become effective for Griffin in fiscal 2019. Certain aspects of this new standard may affect revenue recognition by Griffin, however, Griffin does not anticipate a significant impact on its consolidated financial statements from the application of this Update because revenue from leases are not subject to this Update. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements.

Fair Value

Fair Value	6 Months Ended
	May 31, 2018
Fair Value
Fair Value	2. Fair Value Griffin applies the provisions of FASB ASC 820, “Fair Value Measurement” (“ASC 820”), which establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value, as follows: Level 1 applies to assets or liabilities for which there are quoted market prices in active markets for identical assets or liabilities. Griffin’s available-for-sale securities were considered Level 1 within the fair value hierarchy prior to their sale in fiscal 2017 (see Note 7). Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 2 assets and liabilities include Griffin’s interest rate swap agreements (see Note 4). These inputs are readily available in public markets or can be derived from information available in publicly quoted markets; therefore, Griffin has categorized these derivative instruments as Level 2 within the fair value hierarchy. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. During the 2018 six month period, Griffin did not transfer any assets or liabilities into or out of Levels 1 or 2. The following are Griffin’s financial assets and liabilities carried at fair value and measured at fair value on a recurring basis: May 31, 2018 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Interest rate swap assets $ — $ 2,800 $ — Interest rate swap liabilities $ — $ 171 $ — November 30, 2017 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Interest rate swap assets $ — $ 644 $ — Interest rate swap liabilities $ — $ 845 $ — The carrying and estimated fair values of Griffin’s financial instruments are as follows: Fair Value May 31, 2018 November 30, 2017 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value Financial assets: Cash and cash equivalents 1 $ 28,778 $ 28,778 $ 30,068 $ 30,068 Sale proceeds held in escrow 1 $ 845 $ 845 $ 91 $ 91 Interest rate swap assets 2 $ 2,800 $ 2,800 $ 644 $ 644 Financial liabilities: Mortgage loans, net of debt issuance costs 2 $ 133,965 $ 133,765 $ 129,203 $ 128,999 Interest rate swap liabilities 2 $ 171 $ 171 $ 845 $ 845 The amounts included in the consolidated financial statements for cash and cash equivalents, sale proceeds held in escrow, leasing receivables from tenants and accounts payable and accrued liabilities approximate their fair values because of the short-term maturity of these instruments. The fair values of the mortgage loans are estimated based on current rates offered to Griffin for similar debt of the same remaining maturities and, additionally, Griffin considers its credit worthiness in determining the fair value of its mortgage loans. The fair values of the interest rate swaps (used for purposes other than trading) are determined based on discounted cash flow models that incorporate the cash flows of the derivatives as well as the current Overnight Index Swap rate and swap curve along with other market data, taking into account current interest rates and the credit worthiness of the counterparty for assets and the credit worthiness of Griffin for liabilities.

Real Estate Assets

Real Estate Assets	6 Months Ended
	May 31, 2018
Real Estate Assets
Real Estate Assets	3. Real Estate Assets Real estate assets consist of: Estimated Useful Lives May 31, 2018 Nov. 30, 2017 Land $ 20,679 $ 20,403 Land improvements 10 to 30 years 31,635 30,833 Buildings and improvements 10 to 40 years 187,520 187,116 Tenant improvements Shorter of useful life or terms of related lease 27,814 27,924 Machinery and equipment 3 to 20 years 10,958 10,958 Construction in progress 12,387 486 Development costs 14,226 14,132 Accumulated depreciation $ 205,114 $ 196,740 Total depreciation expense and capitalized interest related to real estate assets were as follows: For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Depreciation expense $ 2,457 $ 2,112 $ 4,859 $ 4,207 Capitalized interest $ 94 $ — $ 132 $ — On April 26, 2018, Griffin closed on the sale of approximately 49 acres (the “Southwick Land Sale”) of undeveloped land in Southwick, Massachusetts. Griffin received cash proceeds of $850 before transaction costs and recorded a pretax gain of $794 on the Southwick Land Sale. The net cash proceeds, after transaction costs, of $847 from the Southwick Land Sale were deposited into escrow for a potential acquisition of a replacement property in a like-kind exchange (“1031 Like-Kind Exchange”) under Section 1031 of the Internal Revenue Code of 1986, as amended, for income tax purposes. On April 28, 2017, Griffin closed on the sale of approximately 67 acres (the “2017 Phoenix Crossing Land Sale”) of undeveloped land in Phoenix Crossing, the approximately 268 acre business park master planned by Griffin that straddles the town line between Windsor and Bloomfield, Connecticut. Griffin received cash proceeds of $10,250 before transaction costs and recorded a pretax gain of $7,975 on the 2017 Phoenix Crossing Land Sale. The net cash proceeds, after transaction costs, of $9,711 from the 2017 Phoenix Crossing Land Sale were deposited into escrow and subsequently used for the acquisition of a replacement property in a 1031 Like-Kind Exchange. Real estate assets held for sale consist of: May 31, 2018 Nov. 30, 2017 Land $ 210 $ 504 Land improvements — 354 Development costs 1,007 1,074 $ 1,217 $ 1,932 Real estate assets held for sale were reduced in the 2018 six month period by $105 related to property sales that closed and by $610 related to a property sale that is no longer expected to take place.

Mortgage Loans

Mortgage Loans	6 Months Ended
	May 31, 2018
Mortgage Loans
Mortgage Loans	4. Mortgage Loans Griffin’s mortgage loans, which are nonrecourse, consist of: May 31, 2018 Nov. 30, 2017 Variable rate, due January 27, 2020 * $ 3,412 $ 3,478 Variable rate, due October 3, 2022 * 4,321 4,367 Variable rate, due January 2, 2025 * 19,949 20,221 Variable rate, due May 1, 2026 * 13,665 13,844 Variable rate, due November 17, 2026 * 25,742 26,076 Variable rate, due August 1, 2027 * 10,404 10,523 3.97%, due September 1, 2027 12,008 12,115 Variable rate, due February 1, 2028 * 18,678 — 5.09%, due July 1, 2029 6,387 6,597 5.09%, due July 1, 2029 4,475 4,622 4.33%, due August 1, 2030 17,145 17,308 Variable rate, due March 1, 2027 * — 11,826 Nonrecourse mortgage loans prior to debt issuance costs 136,186 130,977 Debt issuance costs, net (2,221) (1,774) Nonrecourse mortgage loans, net of debt issuance costs $ 133,965 $ 129,203 *Griffin entered into interest rate swap agreements to effectively fix the interest rates on these loans (see below). As of May 31, 2018, Griffin was a party to several interest rate swap agreements related to its variable rate nonrecourse mortgage loans on certain of its real estate assets. Griffin accounts for its interest rate swap agreements as effective cash flow hedges (see Note 2). No ineffectiveness on the cash flow hedges was recognized as of May 31, 2018 and none is anticipated over the term of the agreements. Amounts in accumulated other comprehensive income (loss) will be reclassified into interest expense over the term of the swap agreements to achieve fixed interest rates on each variable rate mortgage. None of the interest rate swap agreements contain any credit risk related contingent features. In the 2018 six month period, Griffin recognized a gain, included in other comprehensive income, before taxes of $2,942 on its interest rate swap agreements. In the 2017 six month period, Griffin recognized a loss, included in other comprehensive loss, before taxes of $284 on its interest rate swap agreements. As of May 31, 2018, $201 was expected to be reclassified over the next twelve months from accumulated other comprehensive income to interest expense. As of May 31, 2018, the net fair value of Griffin’s interest rate swap agreements was $2,629, with $2,800 included in other assets and $171 included in other liabilities on Griffin’s consolidated balance sheet. On March 29, 2018, a subsidiary of Griffin closed on a $13,800 construction to permanent mortgage loan (the “State Farm Loan”) with State Farm Life Insurance Company (“State Farm”), which is expected to provide a significant portion of the financing for the construction of an approximately 234,000 square foot build-to-suit industrial/warehouse building (“220 Tradeport Drive”) in New England Tradeport (“NE Tradeport”), Griffin’s industrial park located in Windsor and East Granby, Connecticut. Griffin expects to spend a total of approximately $17,100 related to the development of 220 Tradeport Drive, including all related site work, building construction, tenant improvements, leasing costs and financing costs. In the fourth quarter of fiscal 2017, Griffin entered into a long-term lease with one tenant for the entire building. The State Farm Loan will initially function as a construction loan, with Griffin drawing funds as construction of 220 Tradeport Drive progresses. Upon completion of 220 Tradeport Drive, expected in the second half of fiscal 2018, and the commencement of rent payments by the tenant (six months after lease commencement), the State Farm Loan will convert to a fifteen year nonrecourse permanent mortgage loan, which is expected to take place in fiscal 2019. The interest rate on the loan is 4.51%. During the construction period, only interest payments will be made. Monthly principal payments, which will begin after conversion to a nonrecourse permanent mortgage loan, will be based on a twenty-five year amortization schedule. The State Farm Loan may be increased up to $14,288 if the tenant in 220 Tradeport Drive opts to have Griffin make certain additional improvements to 220 Tradeport Drive. The first drawdown under the State Farm Loan took place subsequent to May 31, 2018. On March 15, 2017, a subsidiary of Griffin closed on a $12,000 nonrecourse mortgage (the “2017 People’s Mortgage”) with People’s United Bank, N.A. (“People’s Bank”). On January 30, 2018, that subsidiary refinanced the 2017 People’s Mortgage with a new nonrecourse mortgage loan (the “2018 People’s Mortgage”) with People’s Bank. The 2017 People’s Mortgage had a balance of $11,781 at the time of refinancing. The 2018 People’s Mortgage is collateralized by the same two NE Tradeport industrial/warehouse buildings, aggregating approximately 275,000 square feet, that collateralized the 2017 People’s Mortgage. In addition, 330 Stone Road, an approximately 137,000 square foot industrial/warehouse building in NE Tradeport that was completed and placed in service near the end of fiscal 2017, was added to the collateral for the 2018 People’s Mortgage. At the closing of the 2018 People’s Mortgage, Griffin received additional mortgage proceeds of $7,000 (before transaction costs), net of the $11,781 used to refinance the 2017 People’s Mortgage. The 2018 People’s Mortgage has a ten year term with monthly principal payments based on a twenty-five year amortization schedule. The interest rate for the 2018 People’s Mortgage is a floating rate of the one month LIBOR rate plus 1.95%. At the time the 2018 People’s Mortgage closed, Griffin entered into an interest rate swap agreement with People’s Bank that, combined with an interest rate swap agreement with People’s Bank entered into at the time the 2017 People’s Mortgage closed, effectively fixes the interest rate of the 2018 People’s Mortgage at 4.57% over the mortgage loan’s ten year term. Under the terms of the 2018 People’s Mortgage, Griffin entered into a master lease for 759 Rainbow Road (“759 Rainbow”), one of buildings that collateralize the 2018 People’s Mortgage. The master lease would only become effective if the full building tenant in 759 Rainbow does not renew its lease when it is scheduled to expire in fiscal 2019. The master lease would be in effect until either the space is re-leased to a new tenant or the maturity date of the 2018 People’s Mortgage.

Revolving Credit Agreement

Revolving Credit Agreement	6 Months Ended
	May 31, 2018
Revolving Credit Agreement
Revolving Credit Agreement	5. Revolving Credit Agreement Griffin has a $15,000 revolving credit line (the “Webster Credit Line”) with Webster Bank, N.A. (“Webster Bank”) that was scheduled to expire on July 31, 2018. In the 2018 second quarter, Griffin exercised its option to extend the Webster Credit Line for one year, and on June 18, 2018, Griffin and Webster Bank completed the Second Mortgage Modification Agreement that extended the maturity of the Webster Credit Line to July 31, 2019. Interest on borrowings under the Webster Credit Line remains at the one month LIBOR rate plus 2.75%. The Webster Credit Line is collateralized by Griffin’s properties in Griffin Center South in Bloomfield, Connecticut, aggregating approximately 235,000 square feet, and an approximately 48,000 square foot single-story office building in Griffin Center in Windsor, Connecticut. There have been no borrowings under the Webster Credit Line since its inception in fiscal 2013. As of May 31, 2018, the Webster Credit Line secured certain unused standby letters of credit aggregating $1,068 that are related to Griffin's development activities.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	May 31, 2018
Stockholders' Equity
Stockholders' Equity	6. Stockholders’ Equity Per Share Results Basic and diluted per share results were based on the following: For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Net income (loss) $ 331 $ 4,727 $ (1,392) $ 3,788 Weighted average shares outstanding for computation of basic per share results 5,006,000 5,003,000 Incremental shares from assumed exercise of Griffin stock options (a) 57,000 22,000 — 23,000 Adjusted weighted average shares for computation of diluted per share results 5,063,000 5,023,000 5,003,000 5,043,000 (a) Incremental shares from the assumed exercise of Griffin stock options are not included in periods where the inclusion of such shares would be anti-dilutive. The incremental shares from the assumed exercise of stock options for the 2018 six month period would have been 53,000. Universal Shelf Filing/At-the-Market Equity Offering Program On April 11, 2018, Griffin filed a universal shelf registration statement on Form S-3 (the “Universal Shelf”) with the SEC. Under the Universal Shelf, Griffin may offer and sell up to $50,000 of a variety of securities including common stock, preferred stock, warrants, depositary shares, debt securities, units or any combination of such securities during the three year period that commenced upon the Universal Shelf becoming effective on April 25, 2018. Under the Universal Shelf, Griffin may periodically offer one or more types of securities in amounts, at prices and on terms announced, if and when the securities are ever offered. On May 10, 2018, Griffin filed a prospectus supplement with the SEC under which it may issue and sell, from time to time, up to an aggregate of $30,000 of its common stock (“Common Stock”) under an “at-the-market” equity offering program (the “ATM Program”) through Robert W. Baird & Co. Incorporated (“Baird”), as sales agent. Under a sales agreement with Baird, Griffin will set the parameters for the sales of its Common Stock under the ATM Program, including the number of shares to be issued, the time period during which sales are requested to be made, limitations on the number of shares that may be sold in any one trading day and any minimum price below which sales of shares may not be made. Sales of Common Stock, if any, under the ATM Program would be made in offerings as defined in Rule 415 of the Securities Act of 1933, as amended. In addition, with the prior consent of Griffin, Baird may also sell shares in privately negotiated transactions. Griffin expects to use net proceeds, if any, from the ATM Program over time for acquisitions of target properties consistent with Griffin’s investment strategies, repayment of debt and general corporate purposes. If Griffin obtains additional capital by issuing equity, the interests of its existing stockholders will be diluted. If Griffin incurs additional indebtedness, that indebtedness may impose financial and other covenants that may significantly restrict Griffin’s operations. Griffin currently does not expect to issue Common Stock under the ATM Program or issue other securities under the Universal Shelf in the near term. Griffin Stock Option Plan Stock options are granted by Griffin under the Griffin Industrial Realty, Inc. 2009 Stock Option Plan (the “2009 Stock Option Plan”). Options granted under the 2009 Stock Option Plan may be either incentive stock options or non-qualified stock options issued at an exercise price not less than fair market value on the date approved by Griffin’s Compensation Committee. Vesting of all of Griffin's stock options is solely based upon service requirements and does not contain market or performance conditions. Stock options issued expire ten years from the grant date. In accordance with the 2009 Stock Option Plan, stock options issued to non-employee directors upon their initial election to the board of directors are fully exercisable immediately upon the date of the option grant. Stock options issued to non-employee directors upon their re-election to the board of directors vest on the second anniversary from the date of grant. Stock options issued to employees vest in equal installments on the third, fourth and fifth anniversaries from the date of grant. None of the stock options outstanding at May 31, 2018 may be exercised as stock appreciation rights. The following options were granted by Griffin under the 2009 Stock Option Plan to Griffin directors and employees: For the Six Months Ended May 31, 2018 May 31, 2017 Fair Value per Fair Value per Number of Option at Number of Option at Shares Grant Date Shares Grant Date Non-employee directors 5,195 $ 14.41 6,570 $ 13.49 Employees - $ - 5,000 $ 11.13 5,195 11,570 The fair values of all options granted were estimated as of the grant date using the Black-Scholes option-pricing model. Assumptions used in determining the fair value of the stock options granted were as follows: For the Six Months Ended May 31, 2018 May 31, 2017 Expected volatility 30.5 % 32.7 to 39.6 % Risk free interest rates 3.0 % 2.1 to 2.2 % Expected option term (in years) 8.5 7.5 to 8.5 Annual dividend yield 1.1 % 0.8 to 0.9 % Number of option holders at May 31, 2018 29 Compensation expense and related tax benefits for stock options were as follows: For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Compensation expense $ 88 $ 88 $ 178 $ 170 Related tax benefit $ 13 $ 20 $ 26 $ 40 For all periods presented, the forfeiture rate for directors was 0%, the forfeiture rate for executives was 17.9% and the forfeiture rate for employees was 38.3%. The rates utilized were based on the historical activity of the grantees. As of May 31, 2018, the unrecognized compensation expense related to nonvested stock options that will be recognized during future periods is as follows: Balance of Fiscal 2018 $ 181 Fiscal 2019 $ 270 Fiscal 2020 $ 128 Fiscal 2021 $ 34 A summary of the activity under the 2009 Griffin Stock Option Plan is as follows: For the Six Months Ended May 31, 2018 May 31, 2017 Weighted Weighted Avg. Avg. Number of Exercise Number of Exercise Shares Price Shares Price Outstanding at beginning of period 333,762 $ 29.22 324,546 $ 29.23 Granted 5,195 $ 38.48 11,570 $ 30.59 Exercised (36,823) $ 32.81 — $ — Forfeited (20,279) $ 33.78 (2,104) $ 38.00 Outstanding at end of period 281,855 $ 28.60 334,012 $ 29.22 Weighted Avg. Remaining Range of Exercise Prices for Outstanding at Weighted Avg. Contractual Life Total Intrinsic Vested and Nonvested Options May 31, 2018 Exercise Price (in years) Value $23.00 - $28.00 123,793 $ 26.67 7.4 $ 1,817 $28.00 - $32.00 124,248 $ 29.08 3.6 1,524 $32.00 - $39.00 33,814 $ 33.91 2.3 251 281,855 $ 28.60 5.1 $ 3,592 Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss), net of tax, is comprised of the following: For the Six Months Ended May 31, 2018 Unrealized gain Unrealized gain on on investment in cash flow hedges Centaur Media Total Balance November 30, 2017 $ (284) $ — $ (284) Other comprehensive income before reclassifications 1,956 — 1,956 Amounts reclassified 338 — 338 Adoption of ASU 2018-02 - reclassification to retained earnings (36) — (36) Net activity for other comprehensive income 2,258 — 2,258 Balance May 31, 2018 $ 1,974 $ — $ 1,974 For the Six Months Ended May 31, 2017 Unrealized gain Unrealized loss on on investment in cash flow hedges Centaur Media Total Balance November 30, 2016 $ (1,062) $ 13 $ (1,049) Other comprehensive loss before reclassifications (625) 192 (433) Amounts reclassified 427 — 427 Net activity for other comprehensive loss (198) 192 (6) Balance May 31, 2017 $ (1,260) $ 205 $ (1,055) The components of other comprehensive income are as follows: For the Three Months Ended May 31, 2018 May 31, 2017 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassification included in net income: Loss on cash flow hedges (interest expense) $ 187 $ (41) $ 146 $ 342 $ (124) $ 218 Increase (decrease) in fair value adjustments on Griffin’s cash flow hedges 9 (2) 7 (1,297) 468 (829) Mark to market adjustment on Centaur Media for an increase in the foreign currency exchange rate — — — 48 (16) 32 Mark to market adjustment on Centaur Media for an increase in fair value — — — 52 (19) 33 Total change in other comprehensive income (loss) 9 (2) 7 (1,197) 433 (764) Other comprehensive income (loss) $ 196 $ (43) $ 153 $ (855) $ 309 $ (546) For the Six Months Ended May 31, 2018 May 31, 2017 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassification included in net (loss) income: Loss on cash flow hedges (interest expense) $ 431 $ (93) $ 338 $ 681 $ (254) $ 427 Increase (decrease) in fair value adjustments on Griffin’s cash flow hedges 2,511 (555) 1,956 (965) 340 (625) Mark to market adjustment on Centaur Media for an increase in the foreign currency exchange rate — — — 36 (12) 24 Mark to market adjustment on Centaur Media for an increase in fair value — — — 259 (91) 168 Total change in other comprehensive income (loss) 2,511 (555) 1,956 (670) 237 (433) Other comprehensive income (loss) $ 2,942 $ (648) $ 2,294 $ 11 $ (17) $ (6) Stock Repurchases In fiscal 2016, Griffin’s Board of Directors authorized a stock repurchase program whereby Griffin could repurchase up to $5,000 of its outstanding Common Stock over a twelve month period in privately negotiated transactions. The stock repurchase program expired on May 10, 2017. In fiscal 2017, prior to its expiration, Griffin repurchased 47,173 shares of its outstanding Common Stock for $1,474. Under this repurchase program, Griffin repurchased a total of 152,173 shares of its Common Stock for $4,828. See Supplemental Cash Flow Information in Note 9 for information on Common Stock received in connection with the exercise of stock options. Cash Dividend Griffin did not declare a cash dividend in the 2018 or 2017 six month periods. During the 2018 first quarter, Griffin paid $2,000 for the cash dividend declared in the 2017 fourth quarter. During the 2017 first quarter, Griffin paid $1,514 for the cash dividend declared in the 2016 fourth quarter.

Supplemental Financial Statemen

Supplemental Financial Statement Information	6 Months Ended
	May 31, 2018
Supplemental Financial Statement Information
Supplemental Financial Statement Information	7. Supplemental Financial Statement Information Available-for-Sale Securities In the fiscal 2017 third quarter, Griffin sold its remaining 1,952,462 shares in Centaur Media plc (“Centaur Media”). Griffin's investment in the common stock of Centaur Media was accounted for as an available-for-sale security under ASC 320, “Investments – Debt and Equity Securities.” Accordingly, changes in the fair value of Centaur Media, reflecting both changes in the stock price and changes in the foreign currency exchange rate, were included, net of income taxes, in accumulated other comprehensive income (loss) (see Note 6). Other Assets Griffin's other assets are comprised of the following: May 31, 2018 Nov. 30, 2017 Deferred rent receivable $ 5,440 $ 5,351 Deferred leasing costs 4,531 5,113 Interest rate swap assets 2,800 644 Intangible assets, net 1,547 1,695 Deposits 931 713 Sale proceeds held in escrow 845 91 Prepaid expenses 770 2,774 Mortgage escrows 731 448 Leasing receivables from tenants 675 1,097 Furniture, fixtures and equipment, net 282 251 Registration statement costs 267 — Deferred financing costs related to the Webster Credit Line 12 47 Other 178 169 Total other assets $ 19,009 $ 18,393 Accounts Payable and Accrued Liabilities Griffin's accounts payable and accrued liabilities are comprised of the following: May 31, 2018 Nov. 30, 2017 Accrued construction costs and retainage $ 6,432 $ 1,894 Accrued interest payable 506 482 Accrued salaries, wages and other compensation 358 1,154 Accrued lease commissions 339 393 Trade payables 211 432 Other 750 636 Total accounts payable and accrued liabilities $ 8,596 $ 4,991 Other Liabilities Griffin's other liabilities are comprised of the following: May 31, 2018 Nov. 30, 2017 Deferred compensation plan $ 5,149 $ 5,005 Prepaid rent from tenants 1,136 1,041 Security deposits of tenants 572 583 Land sale deposits 260 195 Interest rate swap liabilities 171 845 Conditional asset retirement obligations 171 204 Other 75 99 Total other liabilities $ 7,534 $ 7,972 Supplemental Cash Flow Information In the 2018 six month period, Griffin received 18,405 shares of its Common Stock in connection with the exercise of stock options as consideration for the exercise price and for reimbursement of income tax withholdings related to those stock option exercises. The shares received were recorded as treasury stock, which resulted in an increase in treasury stock of $721, and did not affect Griffin’s cash. Prior to Griffin’s sale of its remaining shares of Centaur Media common stock in the fiscal 2017 third quarter, an increase of $295 in the 2017 six month period reflected the mark to market adjustments of this investment and did not affect Griffin’s cash. In the 2017 six month period, Griffin received $3,535 of cash, after transaction costs, from the fiscal 2016 sale of approximately 29 acres of undeveloped land in Griffin Center (the “Griffin Center Land Sale”). The proceeds from the Griffin Center Land Sale were deposited into escrow at the time the sale closed for a potential purchase of a replacement property under a 1031 Like-Kind Exchange. As a replacement property was not acquired in the time period required under the applicable tax code, the sale proceeds were released from escrow and returned to Griffin. Accounts payable and accrued liabilities related to additions to real estate assets increased by $4,584 in the 2018 six month period and decreased by $443 in the 2017 six month period. Interest payments were as follows: For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 $ 1,496 $ 1,320 $ 2,929 $ 2,552 Income Taxes On December 22, 2017, TCJA was enacted and became effective for Griffin on January 1, 2018. The TCJA reduces the U.S. federal corporate statutory income tax rate from 35% to 21%, which results in a blended fiscal 2018 federal statutory rate for Griffin of approximately 22%. The impact of the lower statutory rate resulted in a net charge of $1,001 for the re-measurement of Griffin’s deferred tax assets and liabilities that is included in Griffin’s 2018 six month period income tax provision. Partially offsetting the net charge for the re-measurement of Griffin’s deferred tax assets and liabilities in the 2018 six month period is an income tax benefit of $133 based on the 2018 six month period pretax loss and an income tax benefit of $46 for the exercise of stock options. The 2017 six month period income tax provision of $2,102 principally related to Griffin’s 2017 six month pretax income. Griffin’s federal income tax returns for fiscal 2012 to fiscal 2016 are open to examination by the Internal Revenue Service (“IRS”). An IRS examination of the fiscal 2015 federal tax return was started in the 2018 first quarter. The remaining periods subject to examination for Griffin’s significant state return, which is Connecticut, are fiscal 2008 through fiscal 2016.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	May 31, 2018
Commitments and Contingencies
Commitments and Contingencies	8. Commitments and Contingencies As of May 31, 2018, Griffin had committed purchase obligations of approximately $10,397, principally related to the construction of 220 Tradeport Drive and the construction of an approximately 134,000 square foot industrial/warehouse building (“6975 Ambassador Drive”) in the Lehigh Valley of Pennsylvania, as well as improvements at other Griffin properties. On January 11, 2018, Griffin entered into an agreement to purchase an approximately 14 acre parcel of undeveloped land in the Lehigh Valley of Pennsylvania (the “Lehigh Valley Land”). Subsequently, the agreement was amended to reduce the purchase price from $3,600 in cash to $3,100 in cash and extend the due diligence period. If the transaction closes, Griffin plans to construct an approximately 156,000 square foot industrial/warehouse building on the Lehigh Valley Land. The closing of this purchase, anticipated to take place in fiscal 2019, is subject to several conditions, including the satisfactory outcome of due diligence and obtaining all governmental approvals for Griffin’s development plans for the Lehigh Valley Land. There is no guarantee that this transaction will be completed under its current terms, or at all. On October 4, 2017, Griffin entered into an agreement to purchase an approximately 22 acre parcel of undeveloped land in Concord, North Carolina (the “Concord Land”) for $2,600 in cash. If the transaction closes, Griffin plans to construct two industrial/warehouse buildings aggregating approximately 283,000 square feet on the Concord Land, which is located near Griffin’s existing industrial/warehouse building in Concord, North Carolina. Closing of this purchase, anticipated to take place in the fiscal 2018 third quarter, is subject to obtaining all governmental approvals for Griffin’s development plans for the Concord Land. There is no guarantee that this transaction will be completed under its current terms, or at all. On January 25, 2016, Griffin entered into an Option Purchase Agreement (the “Simsbury Option Agreement”) whereby Griffin granted the buyer an exclusive option to purchase approximately 280 acres of undeveloped land in Simsbury, Connecticut for approximately $7,700. The buyer may extend the option period for up to three years upon payment of additional option fees. Through May 31, 2018, the buyer paid $260 of option fees to extend its option period through January 2019. In the 2018 first quarter, the buyer received approval from Connecticut’s regulatory authority for the buyer’s planned use of the land, which is to generate solar electricity. Subsequently, two appeals of the Connecticut regulatory authority’s approval for the land to be used to generate solar electricity were filed and the Attorney General of Massachusetts, the state where substantially all of the electricity generated will be used, has contested the purchase agreements for the electricity to be generated on the land subject to purchase. A closing on the land sale contemplated by the Simsbury Option Agreement is subject to several significant contingencies, including satisfactory outcomes of the appeals of the Connecticut regulatory authority’s approval and a satisfactory resolution of the Massachusetts Attorney General’s challenge to the purchase agreements for the electricity to be generated from the land subject to purchase. There is no guarantee that the sale of land as contemplated under the Simsbury Option Agreement will be completed under its current terms, or at all. Subsequent to May 31, 2018, Griffin entered into an agreement for the purchase of approximately 36 acres of undeveloped land in Mecklenburg County, North Carolina (the “Mecklenburg Land”) for approximately $4,700 in cash. If the transaction closes, Griffin plans to construct an industrial/warehouse development on the Mecklenburg Land, which is in the greater Charlotte area. The amount of industrial/warehouse space to be developed on the Mecklenburg Land will be based upon findings during due diligence. Closing on the purchase of the Mecklenburg Land is subject to several conditions, including rezoning the Mecklenburg Land for industrial/warehouse development, satisfactory outcome of due diligence and obtaining all governmental approvals for Griffin’s development plans. Satisfaction of the conditions required before closing is expected to be an extended process, with a closing on the purchase of the Mecklenburg Land not anticipated to take place until fiscal 2019. There is no guarantee that this transaction will be completed under its current terms, or at all. From time to time, Griffin is involved, as a defendant, in various litigation matters arising in the ordinary course of business. In the opinion of management, based on the advice of legal counsel, the ultimate liability, if any, with respect to these matters is not expected to be material, individually or in the aggregate, to Griffin's consolidated financial position, results of operations or cash flows.

Subsequent Events

Subsequent Events	6 Months Ended
	May 31, 2018
Subsequent Events.
Subsequent Events	9. Subsequent Events In accordance with FASB ASC 855, “Subsequent Events,” Griffin has evaluated all events or transactions occurring after May 31, 2018, the balance sheet date, and noted that there have been no such events or transactions that would require recognition or disclosure in the consolidated financial statements as of and for the quarter ended May 31, 2018, other than the disclosures herein. See Note 5 for subsequent event disclosure on the extension of the Webster Credit Line and Note 8 for subsequent event disclosure of an agreement to purchase undeveloped land in Mecklenburg County, North Carolina

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	May 31, 2018
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation Griffin Industrial Realty, Inc. ("Griffin") is a real estate business principally engaged in developing, managing and leasing industrial/warehouse properties and, to a lesser extent, office/flex properties. Griffin seeks to add to its industrial/warehouse property portfolio through the acquisition and development of land or purchase of buildings in select markets targeted by Griffin. Periodically, Griffin may sell certain portions of its undeveloped land that it has owned for an extended time period and the use of which is not consistent with Griffin's core development and leasing strategy. These financial statements have been prepared in conformity with the standards of accounting measurement set forth by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 270, “Interim Reporting” and in accordance with the accounting policies stated in Griffin’s audited consolidated financial statements for the fiscal year ended November 30, 2017 (“fiscal 2017”) included in Griffin’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 8, 2018. These financial statements should be read in conjunction with the Notes to Consolidated Financial Statements appearing in that report. All adjustments, comprising only normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of results for the interim periods, have been reflected and all intercompany transactions have been eliminated. The consolidated balance sheet data as of November 30, 2017 was derived from Griffin’s audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. Griffin regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, stock-based compensation expense, deferred income tax asset valuations and the valuation of derivative instruments. Griffin bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by Griffin may differ materially and adversely from Griffin’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Interest Rate Swap Agreements	As of May 31, 2018, Griffin was a party to several interest rate swap agreements to hedge its interest rate exposure. Griffin does not use derivatives for speculative purposes. Griffin applies FASB ASC 815-10, “Derivatives and Hedging,” (“ASC 815-10”) as amended, which establishes accounting and reporting standards for derivative instruments and hedging activities. ASC 815-10 requires Griffin to recognize all derivatives as either assets or liabilities on its consolidated balance sheet and measure those instruments at fair value. The changes in the fair values of the interest rate swap agreements are measured in accordance with ASC 815-10 and reflected in the carrying values of the interest rate swap agreements on Griffin’s consolidated balance sheet. The estimated fair values are based primarily on projected future swap rates. Griffin applies cash flow hedge accounting to its interest rate swap agreements that are designated as hedges of the variability of future cash flows from floating rate liabilities based on the benchmark interest rates. Changes in the fair values of Griffin’s interest rate swap agreements are recorded as components of accumulated other comprehensive income (loss) in stockholders’ equity to the extent they are effective. Any ineffective portions of the changes in fair values of these instruments would be recorded as interest expense or interest income.
Fiscal Year	The results of operations for the three months ended May 31, 2018 (the “2018 second quarter”) and the six months ended May 31, 2018 (the “2018 six month period”) are not necessarily indicative of the results to be expected for the full year. The three months and six months ended May 31, 2017 are referred to herein as the “2017 second quarter” and “2017 six month period,” respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted In February 2018, the FASB issued Accounting Standards Update (“ASU” or “Update”) No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which is intended to eliminate the stranded tax effects within Accumulated Other Comprehensive Income (“AOCI”) resulting from the Tax Cuts and Jobs Act (“TCJA”) that was enacted on December 22, 2017. The effective date of ASU 2018-02 is for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted for public entities for which financial statements have not yet been released. Griffin elected to early adopt and apply the provisions of ASU 2018-02 in the 2018 first quarter. This adoption resulted in a one-time reclassification of the effect of re-measuring Griffin’s net deferred tax assets related to interest rate swap agreements within AOCI and retained earnings resulting from the reduction in the U.S. federal statutory tax rate from 35% to 21%. The reclassification resulted in a decrease to AOCI and an increase to retained earnings of $36 in the 2018 first quarter, with no net impact to total stockholders’ equity. In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation: Scope of Modification Accounting,” which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. This Update requires modification only if the fair value, vesting conditions or the classification of the award changes as a result of the change in terms or conditions. This Update became effective for Griffin in the 2018 first quarter and was applied on a prospective basis. The adoption of ASU No. 2017-09 did not have an impact on Griffin’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) – Clarifying the Definition of a Business,” which provides a more robust framework to use in determining when a set of assets and activities is a business. This Update also provides greater consistency in applying the guidance by making the definition of a business more operable. This Update became effective for Griffin in the 2018 first quarter. The adoption of ASU 2017-01 did not have an impact on Griffin’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” which relates to the accounting for employee share-based payments. This Update addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This Update became effective for Griffin in the 2018 first quarter. Griffin recorded a deferred tax asset of $879 with a corresponding increase in retained earnings upon adoption. The adoption of ASU 2016-09 did not affect the classification of any current awards and did not have a retrospective impact on Griffin’s cash flows as no tax benefits from stock options were recognized in the periods presented. As part of the adoption of this Update, Griffin is continuing its policy of estimating the forfeiture rate of options. Recent Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which is intended to improve the financial reporting for hedging relationships to better represent the economic results of a company’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance. This Update will make more financial and nonfinancial hedging strategies eligible for hedge accounting, amend the presentation and disclosure requirements and change how entities assess effectiveness. This Update will become effective for Griffin in fiscal 2020. Griffin does not expect an impact from the application of this Update on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. The accounting applied by lessors under this Update is largely unchanged from that applied under current U.S. GAAP. Leases will be either classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. This Update also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This Update will become effective for Griffin in fiscal 2020 using a modified restatement approach for leases in effect as of and after the date of adoption. Early adoption and practical expedients to measure the effect of adoption is allowed. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This Update outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This Update is not applicable to revenue from leases. This Update supersedes most current revenue recognition guidance, including industry specific guidance, and requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Additionally, the Update requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The Update permits the use of either the retrospective or cumulative effect transition method. This Update will become effective for Griffin in fiscal 2019. Certain aspects of this new standard may affect revenue recognition by Griffin, however, Griffin does not anticipate a significant impact on its consolidated financial statements from the application of this Update because revenue from leases are not subject to this Update. Griffin is evaluating the impact that the application of this Update will have on its consolidated financial statements.

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	May 31, 2018
Fair Value
Schedule of financial assets and liabilities carried at fair value and measured at fair value on a recurring basis:	May 31, 2018 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Interest rate swap assets $ — $ 2,800 $ — Interest rate swap liabilities $ — $ 171 $ — November 30, 2017 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Interest rate swap assets $ — $ 644 $ — Interest rate swap liabilities $ — $ 845 $ —
Schedule of carrying and estimated fair values of financial instruments	Fair Value May 31, 2018 November 30, 2017 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value Financial assets: Cash and cash equivalents 1 $ 28,778 $ 28,778 $ 30,068 $ 30,068 Sale proceeds held in escrow 1 $ 845 $ 845 $ 91 $ 91 Interest rate swap assets 2 $ 2,800 $ 2,800 $ 644 $ 644 Financial liabilities: Mortgage loans, net of debt issuance costs 2 $ 133,965 $ 133,765 $ 129,203 $ 128,999 Interest rate swap liabilities 2 $ 171 $ 171 $ 845 $ 845

Real Estate Assets (Tables)

Real Estate Assets (Tables)	6 Months Ended
	May 31, 2018
Real Estate Assets
Schedule of real estate assets, excluding those held for sale	Estimated Useful Lives May 31, 2018 Nov. 30, 2017 Land $ 20,679 $ 20,403 Land improvements 10 to 30 years 31,635 30,833 Buildings and improvements 10 to 40 years 187,520 187,116 Tenant improvements Shorter of useful life or terms of related lease 27,814 27,924 Machinery and equipment 3 to 20 years 10,958 10,958 Construction in progress 12,387 486 Development costs 14,226 14,132 Accumulated depreciation $ 205,114 $ 196,740
Schedule of total depreciation expense and capitalized interest related to real estate assets	For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Depreciation expense $ 2,457 $ 2,112 $ 4,859 $ 4,207 Capitalized interest $ 94 $ — $ 132 $ —
Schedule of real estate held for sale	May 31, 2018 Nov. 30, 2017 Land $ 210 $ 504 Land improvements — 354 Development costs 1,007 1,074 $ 1,217 $ 1,932

Mortgage Loans (Tables)

Mortgage Loans (Tables)	6 Months Ended
	May 31, 2018
Mortgage Loans
Schedule of mortgage loans	May 31, 2018 Nov. 30, 2017 Variable rate, due January 27, 2020 * $ 3,412 $ 3,478 Variable rate, due October 3, 2022 * 4,321 4,367 Variable rate, due January 2, 2025 * 19,949 20,221 Variable rate, due May 1, 2026 * 13,665 13,844 Variable rate, due November 17, 2026 * 25,742 26,076 Variable rate, due August 1, 2027 * 10,404 10,523 3.97%, due September 1, 2027 12,008 12,115 Variable rate, due February 1, 2028 * 18,678 — 5.09%, due July 1, 2029 6,387 6,597 5.09%, due July 1, 2029 4,475 4,622 4.33%, due August 1, 2030 17,145 17,308 Variable rate, due March 1, 2027 * — 11,826 Nonrecourse mortgage loans prior to debt issuance costs 136,186 130,977 Debt issuance costs, net (2,221) (1,774) Nonrecourse mortgage loans, net of debt issuance costs $ 133,965 $ 129,203 *Griffin entered into interest rate swap agreements to effectively fix the interest rates on these loans (see below).

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	May 31, 2018
Stockholders' Equity
Schedule of basic and diluted per share results	For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Net income (loss) $ 331 $ 4,727 $ (1,392) $ 3,788 Weighted average shares outstanding for computation of basic per share results 5,006,000 5,003,000 Incremental shares from assumed exercise of Griffin stock options (a) 57,000 22,000 — 23,000 Adjusted weighted average shares for computation of diluted per share results 5,063,000 5,023,000 5,003,000 5,043,000 (a) Incremental shares from the assumed exercise of Griffin stock options are not included in periods where the inclusion of such shares would be anti-dilutive. The incremental shares from the assumed exercise of stock options for the 2018 six month period would have been 53,000.
Schedule of options granted to employees	For the Six Months Ended May 31, 2018 May 31, 2017 Fair Value per Fair Value per Number of Option at Number of Option at Shares Grant Date Shares Grant Date Non-employee directors 5,195 $ 14.41 6,570 $ 13.49 Employees - $ - 5,000 $ 11.13 5,195 11,570
Schedule of assumptions used in determining fair values of options	For the Six Months Ended May 31, 2018 May 31, 2017 Expected volatility 30.5 % 32.7 to 39.6 % Risk free interest rates 3.0 % 2.1 to 2.2 % Expected option term (in years) 8.5 7.5 to 8.5 Annual dividend yield 1.1 % 0.8 to 0.9 %
Schedule of option holders	Number of option holders at May 31, 2018 29
Schedule of compensation expense and related tax benefits for stock options	For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Compensation expense $ 88 $ 88 $ 178 $ 170 Related tax benefit $ 13 $ 20 $ 26 $ 40
Schedule of unrecognized compensation expense related to nonvested stock options	Balance of Fiscal 2018 $ 181 Fiscal 2019 $ 270 Fiscal 2020 $ 128 Fiscal 2021 $ 34
Summary of the activity under the Griffin Stock Option Plan	For the Six Months Ended May 31, 2018 May 31, 2017 Weighted Weighted Avg. Avg. Number of Exercise Number of Exercise Shares Price Shares Price Outstanding at beginning of period 333,762 $ 29.22 324,546 $ 29.23 Granted 5,195 $ 38.48 11,570 $ 30.59 Exercised (36,823) $ 32.81 — $ — Forfeited (20,279) $ 33.78 (2,104) $ 38.00 Outstanding at end of period 281,855 $ 28.60 334,012 $ 29.22
Schedule of options by range of exercise prices	Weighted Avg. Remaining Range of Exercise Prices for Outstanding at Weighted Avg. Contractual Life Total Intrinsic Vested and Nonvested Options May 31, 2018 Exercise Price (in years) Value $23.00 - $28.00 123,793 $ 26.67 7.4 $ 1,817 $28.00 - $32.00 124,248 $ 29.08 3.6 1,524 $32.00 - $39.00 33,814 $ 33.91 2.3 251 281,855 $ 28.60 5.1 $ 3,592
Schedule of accumulated other comprehensive income (loss)	For the Six Months Ended May 31, 2018 Unrealized gain Unrealized gain on on investment in cash flow hedges Centaur Media Total Balance November 30, 2017 $ (284) $ — $ (284) Other comprehensive income before reclassifications 1,956 — 1,956 Amounts reclassified 338 — 338 Adoption of ASU 2018-02 - reclassification to retained earnings (36) — (36) Net activity for other comprehensive income 2,258 — 2,258 Balance May 31, 2018 $ 1,974 $ — $ 1,974 For the Six Months Ended May 31, 2017 Unrealized gain Unrealized loss on on investment in cash flow hedges Centaur Media Total Balance November 30, 2016 $ (1,062) $ 13 $ (1,049) Other comprehensive loss before reclassifications (625) 192 (433) Amounts reclassified 427 — 427 Net activity for other comprehensive loss (198) 192 (6) Balance May 31, 2017 $ (1,260) $ 205 $ (1,055)
Schedule of components of accumulated other comprehensive income (loss)	For the Three Months Ended May 31, 2018 May 31, 2017 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassification included in net income: Loss on cash flow hedges (interest expense) $ 187 $ (41) $ 146 $ 342 $ (124) $ 218 Increase (decrease) in fair value adjustments on Griffin’s cash flow hedges 9 (2) 7 (1,297) 468 (829) Mark to market adjustment on Centaur Media for an increase in the foreign currency exchange rate — — — 48 (16) 32 Mark to market adjustment on Centaur Media for an increase in fair value — — — 52 (19) 33 Total change in other comprehensive income (loss) 9 (2) 7 (1,197) 433 (764) Other comprehensive income (loss) $ 196 $ (43) $ 153 $ (855) $ 309 $ (546) For the Six Months Ended May 31, 2018 May 31, 2017 Tax Tax (Expense) Net-of (Expense) Net-of Pre-Tax Benefit Tax Pre-Tax Benefit Tax Reclassification included in net (loss) income: Loss on cash flow hedges (interest expense) $ 431 $ (93) $ 338 $ 681 $ (254) $ 427 Increase (decrease) in fair value adjustments on Griffin’s cash flow hedges 2,511 (555) 1,956 (965) 340 (625) Mark to market adjustment on Centaur Media for an increase in the foreign currency exchange rate — — — 36 (12) 24 Mark to market adjustment on Centaur Media for an increase in fair value — — — 259 (91) 168 Total change in other comprehensive income (loss) 2,511 (555) 1,956 (670) 237 (433) Other comprehensive income (loss) $ 2,942 $ (648) $ 2,294 $ 11 $ (17) $ (6)

Supplemental Financial Statem23

Supplemental Financial Statement Information (Tables)	6 Months Ended
	May 31, 2018
Supplemental Financial Statement Information
Schedule of other assets	May 31, 2018 Nov. 30, 2017 Deferred rent receivable $ 5,440 $ 5,351 Deferred leasing costs 4,531 5,113 Interest rate swap assets 2,800 644 Intangible assets, net 1,547 1,695 Deposits 931 713 Sale proceeds held in escrow 845 91 Prepaid expenses 770 2,774 Mortgage escrows 731 448 Leasing receivables from tenants 675 1,097 Furniture, fixtures and equipment, net 282 251 Registration statement costs 267 — Deferred financing costs related to the Webster Credit Line 12 47 Other 178 169 Total other assets $ 19,009 $ 18,393
Schedule of accounts payable and accrued liabilities	May 31, 2018 Nov. 30, 2017 Accrued construction costs and retainage $ 6,432 $ 1,894 Accrued interest payable 506 482 Accrued salaries, wages and other compensation 358 1,154 Accrued lease commissions 339 393 Trade payables 211 432 Other 750 636 Total accounts payable and accrued liabilities $ 8,596 $ 4,991
Schedule of other liabilities	May 31, 2018 Nov. 30, 2017 Deferred compensation plan $ 5,149 $ 5,005 Prepaid rent from tenants 1,136 1,041 Security deposits of tenants 572 583 Land sale deposits 260 195 Interest rate swap liabilities 171 845 Conditional asset retirement obligations 171 204 Other 75 99 Total other liabilities $ 7,534 $ 7,972
Schedule of interest payments	For the Three Months Ended For the Six Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 $ 1,496 $ 1,320 $ 2,929 $ 2,552

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	May 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Recent Adopted Accounting Pronouncements
Corporate statutory income tax rate	22.00%	21.00%	35.00%
ASU 2016-09
Deferred Tax Assets
Deferred tax asset	$ 879
ASU 2018-02
Recent Adopted Accounting Pronouncements
Corporate statutory income tax rate		21.00%	35.00%
Reclassification resulted in a decrease to AOCI and an increase to retained earnings	$ 36

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	May 31, 2018	Nov. 30, 2017
Financial assets and liabilities carried at fair value and measured at fair value on a recurring basis:
Assets, transfers from Level 1 to Level 2	$ 0
Liabilities, transfers from Level 1 to Level 2	0
Assets, transfers from Level 2 to Level 1	0
Liabilities, transfers from Level 2 to Level 1	0
Interest rate swaps	171	$ 845
Recurring basis | Level 2
Financial assets and liabilities carried at fair value and measured at fair value on a recurring basis:
Interest rate swaps	2,800	644
Interest rate swaps	$ 171	$ 845

Fair Value - Assets and Liabili

Fair Value - Assets and Liabilities (Details) - USD ($) $ in Thousands	May 31, 2018	Nov. 30, 2017
Financial liabilities:
Interest rate swaps	$ 171	$ 845
Carrying Value | Level 1
Financial assets:
Cash and cash equivalents	28,778	30,068
Proceeds held in escrow	845	91
Carrying Value | Level 2
Financial assets:
Interest rate swaps	2,800	644
Financial liabilities:
Mortgage loans, net of debt issuance costs	133,965	129,203
Interest rate swaps	171	845
Estimated Fair Value | Level 1
Financial assets:
Cash and cash equivalents	28,778	30,068
Proceeds held in escrow	845	91
Estimated Fair Value | Level 2
Financial assets:
Interest rate swaps	2,800	644
Financial liabilities:
Mortgage loans, net of debt issuance costs	133,765	128,999
Interest rate swaps	$ 171	$ 845

Real Estate Assets (Details)

Real Estate Assets (Details) $ in Thousands	Apr. 26, 2018USD ($)a	Apr. 28, 2017USD ($)a	May 31, 2018USD ($)	May 31, 2017USD ($)	May 31, 2018USD ($)	May 31, 2017USD ($)	Nov. 30, 2017USD ($)a	Mar. 29, 2018ft²
Real Estate Assets
Land			$ 20,679		$ 20,679		$ 20,403
Land improvements			31,635		31,635		30,833
Buildings and improvements			187,520		187,520		187,116
Tenant improvements			27,814		27,814		27,924
Machinery and equipment			10,958		10,958		10,958
Construction in progress			12,387		12,387		486
Development costs			14,226		14,226		14,132
Real estate assets, gross			305,219		305,219		291,852
Accumulated depreciation			(100,105)		(100,105)		(95,112)
Real estate assets, net			205,114		205,114		196,740
Real Estate Held-for-sale			1,217		1,217		$ 1,932
Depreciation expense			2,457	$ 2,112	4,859	$ 4,207
Capitalized interest			94		132
Real estate assets
Number of acres sold | a							29
Number of acres | ft²								234,000
Value of real estate assets reclassified out of held for sale due to sale					105
Real estate assets moved out of held for sale			610		610
Real estate assets held for sale
Real Estate Assets
Land			210		210		$ 504
Land improvements							354
Development costs			1,007		1,007		1,074
Real Estate Held-for-sale			$ 1,217		$ 1,217		$ 1,932
Southwick Ma Site [Member]
Real estate assets
Number of acres sold | a	49
Cash received on sale of land	$ 850
Pretax gain on land sale	794
Proceeds from land sale deposited in escrow	$ 847
Windsor undeveloped land sale
Real estate assets
Number of acres sold | a		67
Number of acres | a		268
Pretax gain on land sale		$ 7,975
Sale price		10,250
Proceeds from land sale deposited in escrow		$ 9,711
Land improvements | Minimum
Real Estate Assets
Estimated Useful Lives					10 years		10 years
Land improvements | Maximum
Real Estate Assets
Estimated Useful Lives					30 years		30 years
Buildings and improvements | Minimum
Real Estate Assets
Estimated Useful Lives					10 years		10 years
Buildings and improvements | Maximum
Real Estate Assets
Estimated Useful Lives					40 years		40 years
Machinery and equipment. | Minimum
Real Estate Assets
Estimated Useful Lives					3 years		3 years
Machinery and equipment. | Maximum
Real Estate Assets
Estimated Useful Lives					20 years		20 years

Mortgage Loan (Details)

Mortgage Loan (Details) $ in Thousands	Mar. 29, 2018USD ($)ft²	Jan. 30, 2018USD ($)ft²	Mar. 15, 2017USD ($)building	May 31, 2018USD ($)item	May 31, 2017USD ($)	Nov. 30, 2017USD ($)	Mar. 29, 2017USD ($)
Long-Term Debt
Mortgage loans, prior to debt issuance costs				$ 136,186		$ 130,977
Debt issuance costs, net				(2,221)		(1,774)
Mortgage loans, net				133,965		129,203
Debt disclosures
Ineffectiveness on cash flow hedges				0
Anticipated ineffectiveness on cash flow hedges				0
Net fair value of interest rate swap agreements				2,629
Number of buildings used as collateral | building			2
Proceeds from issuance of debt				18,781	$ 12,000
Term of debt	15 years
Amortization period of debt	25 years
Construction closed of a permanent mortgage loan (the “State Farm Loan”) with State Farm Life Insurance Company	$ 13,800
Build-to-suit industrial / warehouse building (in acres) | ft²	234,000
Estimated cost of permanent mortgage loan construction							$ 17,100
Term of loan	15 years
Interest rate	4.51%
Other assets
Debt disclosures
Net fair value of interest rate swap agreements				2,800
Other liabilities
Debt disclosures
Net fair value of interest rate swap agreements				171
Nonrecourse variable rate loans, due January 27, 2020
Long-Term Debt
Mortgage loans, prior to debt issuance costs				3,412		3,478
Nonrecourse variable rate loans, due October 3, 2022
Long-Term Debt
Mortgage loans, prior to debt issuance costs				4,321		4,367
Nonrecourse variable rate loans, due January 2, 2025
Long-Term Debt
Mortgage loans, prior to debt issuance costs				19,949		20,221
Nonrecourse variable rate mortgage, due May 1, 2026
Long-Term Debt
Mortgage loans, prior to debt issuance costs				13,665		13,844
Nonrecourse variable rate mortgage, due November 17, 2026
Long-Term Debt
Mortgage loans, prior to debt issuance costs				25,742		26,076
Nonrecourse variable rate mortgage, due August 1, 2027
Long-Term Debt
Mortgage loans, prior to debt issuance costs				10,404		10,523
3.97%, due September 1, 2027
Long-Term Debt
Mortgage loans, prior to debt issuance costs				$ 12,008		12,115
Interest rate (as a percent)				3.97%
Nonrecourse variable rate mortgage, due February 1, 2028
Long-Term Debt
Mortgage loans, prior to debt issuance costs				$ 18,678
5.09%, due July 1, 2029 GCD mortgage loan
Long-Term Debt
Mortgage loans, prior to debt issuance costs				$ 6,387		6,597
Interest rate (as a percent)				5.09%
5.09%, due July 1, 2029 TD mortgage Loan
Long-Term Debt
Mortgage loans, prior to debt issuance costs				$ 4,475		4,622
Interest rate (as a percent)				5.09%
4.33%, due August 1, 2030 mortgage loan
Long-Term Debt
Mortgage loans, prior to debt issuance costs				$ 17,145		17,308
Interest rate (as a percent)				4.33%
Nonrecourse variable rate mortgage, due March 1, 2027
Long-Term Debt
Mortgage loans, prior to debt issuance costs						$ 11,826
2018 PUB Mortgage
Long-Term Debt
Mortgage loans, prior to debt issuance costs		$ 11,781
Debt disclosures
Area of collateralized properties (in square feet) | ft²		275,000
Proceeds from issuance of debt		$ 7,000
Term of debt		10 years
Amortization period of debt		25 years
Term of loan		10 years
2017 PUB Mortgage
Debt disclosures
New mortgage			$ 12,000
Interest rate swap agreement
Debt disclosures
Number of agreements containing credit risk related contingent features | item				0
Recognized net losses (included in other comprehensive loss), before taxes, on interest rate swap agreements				$ 2,942	$ 284
Loss expected to be reclassified over next twelve months from accumulated other comprehensive loss to interest expense				$ 201
Interest rate swap agreement | 2018 PUB Mortgage
Debt disclosures
Fixed interest rate pursuant to interest rate swap agreement (as a percent)		4.57%
NE Tradeport | 2018 PUB Mortgage
Debt disclosures
Area of collateralized properties completed (in square feet) | ft²		137,000
Maximum
Debt disclosures
Construction closed of a permanent mortgage loan (the “State Farm Loan”) with State Farm Life Insurance Company	$ 14,288
LIBOR | 2018 PUB Mortgage
Debt disclosures
Variable interest rate margin (as a percent)		1.95%

Revolving Credit Agreement (Det

Revolving Credit Agreement (Details) - Webster Credit Line $ in Thousands	3 Months Ended	6 Months Ended	66 Months Ended
	May 31, 2018USD ($)ft²	May 31, 2018USD ($)ft²	May 31, 2018USD ($)ft²
Revolving credit agreement
Maximum borrowing capacity	$ 15,000	$ 15,000	$ 15,000
Extension period	1 year
Proceeds from Lines of Credit			0
Standby letters of credit aggregate amount	$ 1,068	$ 1,068	$ 1,068
Griffin Center South, Bloomfield, CT
Revolving credit agreement
Area of collateralized properties (in square feet) | ft²	235,000	235,000	235,000
Single-story office building in Griffin Center
Revolving credit agreement
Area of collateralized properties (in square feet) | ft²	48,000	48,000	48,000
LIBOR
Revolving credit agreement
Variable interest rate margin (as a percent)		2.75%

Stockholders' Equity - Per Shar

Stockholders' Equity - Per Share Results (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Earnings per share:
Net income (loss)	$ 331	$ 4,727	$ (1,392)	$ 3,788
Weighted average shares outstanding for computation of basic per share results	5,006,000	5,001,000	5,003,000	5,020,000
Incremental shares from assumed exercise of Griffin stock options	57,000	22,000		23,000
Adjusted weighted average shares for computation of diluted per share results	5,063,000	5,023,000	5,003,000	5,043,000
Incremental shares from assumed exercise of stock options excluded due to anti-dilutive effect				53,000

Stockholders' Equity - At-the-M

Stockholders' Equity - At-the-Market Equity Offering Program (Details) - USD ($)	Apr. 11, 2018	May 10, 2018
At-the-Market Equity Offering Program
Maximum offering from universal shelf registration	$ 50,000
Offering period	P3Y
Baird | ATM Program
At-the-Market Equity Offering Program
Authorized to issue common stock		$ 30,000

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Grants, Activity And Expense (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2018USD ($)$ / sharesshares	May 31, 2017USD ($)$ / sharesshares	May 31, 2018USD ($)individual$ / sharesshares	May 31, 2017USD ($)$ / sharesshares
Other Disclosures
Number of option holders | individual			29
Compensation expense for stock options
Compensation expense (benefit) | $	$ 88	$ 88	$ 178	$ 170
Related tax benefit (expense) | $	$ 13	$ 20	26	$ 40
Unrecognized compensation expense related to non-vested stock options that will be recognized during future periods
Balance of Fiscal 2018 | $			181
Fiscal 2019 | $			270
Fiscal 2020 | $			128
Fiscal 2021 | $			$ 34
2009 Stock Option Plan
2009 Stock Option Plan
Expiration term			10 years
Granted (in shares)			5,195	11,570
Assumptions used in determining the fair value of the stock options granted
Expected volatility (as a percent)			30.50%
Risk free interest rates (as a percent)			3.00%
Expected option term (in years)			8 years 6 months
Annual dividend yield (as a percent)			1.10%
Activity under the 2009 Stock Option Plan
Outstanding at beginning of period (in shares)	333,762		333,762	324,546
Granted (in shares)			5,195	11,570
Exercised (in shares)			(36,823)
Forfeited (in shares)			(20,279)	(2,104)
Outstanding at end of period (in shares)		334,012	281,855	334,012
Weighted Avg. Exercise Price
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 29.22		$ 29.22	$ 29.23
Granted (in dollars per share) | $ / shares			38.48	30.59
Exercised (in dollars per share) | $ / shares			32.81
Forfeited (in dollars per share) | $ / shares			33.78	38
Outstanding at end of period (in dollars per share) | $ / shares		$ 29.22	$ 28.60	$ 29.22
Other Disclosures
Number of options that may be exercised as stock appreciation rights			0
2009 Stock Option Plan | Non-employee directors
2009 Stock Option Plan
Granted (in shares)			5,195	6,570
Fair values of stock options granted (in dollars per share) | $ / shares			$ 14.41	$ 13.49
Compensation expense for stock options
Forfeiture rates (as a percent)			0.00%	0.00%
Activity under the 2009 Stock Option Plan
Granted (in shares)			5,195	6,570
2009 Stock Option Plan | Executives
Compensation expense for stock options
Forfeiture rates (as a percent)			17.90%	17.90%
2009 Stock Option Plan | Employee
2009 Stock Option Plan
Granted (in shares)				5,000
Fair values of stock options granted (in dollars per share) | $ / shares				$ 11.13
Compensation expense for stock options
Forfeiture rates (as a percent)			38.30%	38.30%
Activity under the 2009 Stock Option Plan
Granted (in shares)				5,000
Minimum | 2009 Stock Option Plan
Assumptions used in determining the fair value of the stock options granted
Expected volatility (as a percent)			30.50%	32.70%
Risk free interest rates (as a percent)			3.00%	2.10%
Expected option term (in years)				7 years 6 months
Annual dividend yield (as a percent)			1.10%	0.80%
Maximum | 2009 Stock Option Plan
Assumptions used in determining the fair value of the stock options granted
Expected volatility (as a percent)				39.60%
Risk free interest rates (as a percent)				2.20%
Expected option term (in years)				8 years 6 months
Annual dividend yield (as a percent)				0.90%

Stockholders' Equity - Range Of

Stockholders' Equity - Range Of Exercise Prices (Details) - 2009 Stock Option Plan $ / shares in Units, $ in Thousands	6 Months Ended
	May 31, 2018USD ($)$ / sharesshares
2009 Stock Option Plan
Outstanding at ending of the year (in shares) | shares	281,855
Weighted Avg. Exercise Price (in dollars per share)	$ 28.60
Weighted Avg. Remaining Contractual Life	5 years 1 month 6 days
Total Intrinsic Value | $	$ 3,592
$23.00-$28.00
2009 Stock Option Plan
Exercise prices, low end of range (in dollars per share)	$ 23
Exercise prices, high end of range (in dollars per share)	$ 28
Outstanding at ending of the year (in shares) | shares	123,793
Weighted Avg. Exercise Price (in dollars per share)	$ 26.67
Weighted Avg. Remaining Contractual Life	7 years 4 months 24 days
Total Intrinsic Value | $	$ 1,817
$28.00-$32.00
2009 Stock Option Plan
Exercise prices, low end of range (in dollars per share)	$ 28
Exercise prices, high end of range (in dollars per share)	$ 32
Outstanding at ending of the year (in shares) | shares	124,248
Weighted Avg. Exercise Price (in dollars per share)	$ 29.08
Weighted Avg. Remaining Contractual Life	3 years 7 months 6 days
Total Intrinsic Value | $	$ 1,524
$32.00-$39.00
2009 Stock Option Plan
Exercise prices, low end of range (in dollars per share)	$ 32
Exercise prices, high end of range (in dollars per share)	$ 39
Outstanding at ending of the year (in shares) | shares	33,814
Weighted Avg. Exercise Price (in dollars per share)	$ 33.91
Weighted Avg. Remaining Contractual Life	2 years 3 months 18 days
Total Intrinsic Value | $	$ 251

Stockholders' Equity - Accumula

Stockholders' Equity - Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Change in accumulated other comprehensive loss, net of tax
Balance at the beginning of the year			$ (284)
Other comprehensive income before reclassifications	$ 7	$ (764)	1,956	$ (433)
Reclassifications included in net income (loss)	146	218	338	427
Balance at the end of the year	1,974		1,974
Unrealized Gain (Loss) on Cash Flow Hedges
Change in accumulated other comprehensive loss, net of tax
Balance at the beginning of the year			(284)	(1,062)
Other comprehensive income before reclassifications	7	(829)	1,956	(625)
Reclassifications included in net income (loss)			338	427
Adoption of ASU 2018-02 - reclassification to retained	(36)		(36)
Net activity for other comprehensive income			2,258	(198)
Balance at the end of the year	1,974	(1,260)	1,974	(1,260)
Unrealized Gain (Loss) on Investment in Centaur Media
Change in accumulated other comprehensive loss, net of tax
Balance at the beginning of the year				13
Other comprehensive income before reclassifications				192
Net activity for other comprehensive income				192
Balance at the end of the year		205		205
Accumulated Other Comprehensive Loss
Change in accumulated other comprehensive loss, net of tax
Balance at the beginning of the year			(284)	(1,049)
Other comprehensive income before reclassifications			1,956	(433)
Reclassifications included in net income (loss)			338	427
Adoption of ASU 2018-02 - reclassification to retained	(36)		(36)
Net activity for other comprehensive income			2,258	(6)
Balance at the end of the year	$ 1,974	$ (1,055)	$ 1,974	$ (1,055)

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchases, Cash Dividend (Details) - USD ($)	May 10, 2017	May 31, 2018	May 31, 2017	May 11, 2016
Stock Repurchases
Stock repurchased			$ 1,474,000
Cash Dividend
Cash dividend paid		$ 2,000,000	$ 1,514,000
Cash dividends declared (in dollars per share)		$ 0	$ 0
Stock Repurchases
Stock Repurchases
Stock repurchase program, authorized amount				$ 5,000,000
Stock repurchased (in shares)	152,173		47,173
Stock repurchased	$ 4,828		$ 1,474,000

Stockholders' Equity - AOCI T2

Stockholders' Equity - AOCI T2 rows (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Accumulated Other Comprehensive Income (Loss)
Reclassifications, net of tax	$ 146	$ 218	$ 338	$ 427
Other changes, before reclassifications, before tax	9	(1,197)	2,511	(670)
Other changes, before reclassifications, tax (expense) benefit	(2)	433	(555)	237
Total other changes before reclassifications, net of tax	7	(764)	1,956	(433)
Total other comprehensive (loss) income, before tax			2,942	11
Total other comprehensive income (loss), tax			(648)	(17)
Total other comprehensive income (loss), net of tax	153	(546)	2,294	(6)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss)
Reclassifications, net of tax			338	427
Total other changes before reclassifications, net of tax			1,956	(433)
Total other comprehensive (loss) income, before tax	196	(855)
Total other comprehensive income (loss), tax	(43)	309
Total other comprehensive income (loss), net of tax	153	(546)	2,294	(6)
Unrealized Gain (Loss) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss)
Reclassifications, net of tax			338	427
Other changes, before reclassifications, before tax	9	(1,297)	2,511	(965)
Other changes, before reclassifications, tax (expense) benefit	(2)	468	(555)	340
Total other changes before reclassifications, net of tax	7	(829)	1,956	(625)
Unrealized Gain (Loss) on Cash Flow Hedges | Interest Expense [Member]
Accumulated Other Comprehensive Income (Loss)
Reclassifications, before tax	187	342	431	681
Reclassifications, tax (expense) benefit	41	124	(93)	(254)
Reclassifications, net of tax	$ 146	218	$ 338	427
Mark-to-market foreign currency adjustment
Accumulated Other Comprehensive Income (Loss)
Other changes, before reclassifications, before tax		48		36
Other changes, before reclassifications, tax (expense) benefit		(16)		(12)
Total other changes before reclassifications, net of tax		32		24
Mark-to-market fair value adjustment
Accumulated Other Comprehensive Income (Loss)
Other changes, before reclassifications, before tax		52		259
Other changes, before reclassifications, tax (expense) benefit		(19)		(91)
Total other changes before reclassifications, net of tax		$ 33		$ 168

Supplemental Financial Statem37

Supplemental Financial Statement Information - AFS Securities (Details)	12 Months Ended
	Nov. 30, 2017shares
Investments
Shares of Centaur Media common stock sold	1,952,462

Supplemental Financial Statem38

Supplemental Financial Statement Information - Other And Intangible Assets (Details) - USD ($) $ in Thousands	May 31, 2018	Nov. 30, 2017
Other Assets
Deferred rent receivable	$ 5,440	$ 5,351
Deferred leasing costs	4,531	5,113
Interest rate swap asset	2,800	644
Intangible assets, net	1,547	1,695
Deposits	931	713
Sale proceeds held in escrow	845	91
Prepaid expenses	770	2,774
Mortgage escrows	731	448
Leasing receivables from tenants	675	1,097
Furniture, fixtures and equipment, net	282	251
Registration statement costs	267
Deferred financing costs related to the Webster Credit Line	12	47
Other	178	169
Total other assets	$ 19,009	$ 18,393

Supplemental Financial Statem39

Supplemental Financial Statement Information - Liabilities (Details) - USD ($) $ in Thousands	May 31, 2018	Nov. 30, 2017
Accounts Payable and Accrued Liabilities
Accrued construction costs and retainage	$ 6,432	$ 1,894
Accrued interest payable	506	482
Accrued salaries, wages and other compensation	358	1,154
Accrued lease commissions	339	393
Trade payables	211	432
Other	750	636
Total accounts payable and accrued liabilities	8,596	4,991
Other Liabilities
Deferred compensation plan	5,149	5,005
Prepaid rent from tenants	1,136	1,041
Security deposits of tenants	572	583
Land sale deposit	260	195
Interest rate swap liabilities	171	845
Conditional asset retirement obligations	171	204
Other	75	99
Total other liabilities	$ 7,534	$ 7,972

Supplemental Financial Statem40

Supplemental Financial Statement Information - Cash flow, etc. (Details) $ in Thousands	May 31, 2018USD ($)shares	Jan. 01, 2018	Dec. 31, 2017	May 31, 2018USD ($)shares	May 31, 2017USD ($)	May 31, 2018USD ($)shares	May 31, 2017USD ($)	Nov. 30, 2017ashares
Supplemental Cash Flow Information
Number of acres sold | a								29
Increase (decrease) in value of available-for-sale securities: Investment in Centaur Media Plc							$ 295
Increase (decrease) in accounts payable and accrued liabilities related to additions to real estate assets						$ 4,584	443
Interest paid
Interest payments				$ 1,496	$ 1,320	2,929	2,552
Income Taxes
Corporate statutory income tax rate	22.00%	21.00%	35.00%
Impact of lower statutory rate applied to deferred tax assets and deferred tax liabilities resulted for the re-measurement of deferred tax assets and liabilities						1,001
Offsetting the net charge for the re-measurement of Griffin’s deferred tax assets and liabilities is an income tax benefit						133
Tax benefit						46
Income tax provision				$ 32	$ 2,553	$ 822	$ 2,102
2009 Stock Option Plan
Supplemental Cash Flow Information
Treasury shares | shares	18,405			18,405		18,405		3,535,000
Treasury stock	$ 721			$ 721		$ 721

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	May 31, 2018USD ($)ft²	Jan. 11, 2018USD ($)aft²	Oct. 04, 2017USD ($)aft²building	Jan. 25, 2016USD ($)a	May 31, 2018USD ($)	Jun. 01, 2018USD ($)a	Mar. 29, 2018ft²
Purchase and sale obligations
Number of acres | ft²							234,000
Number of Buildings | building			2
Agreement to sell
Purchase and sale obligations
Purchase obligations				$ 7,700
Number of acres | a				280
Agreement Term of Extension				3 years
Agreement Extension Fee					$ 260
Purchase agreement
Purchase and sale obligations
Purchase obligations		$ 3,600	$ 2,600
Area Of Building | ft²		156,000	283,000
Number of acres | a		14	22
Purchase agreement | Subsequent events
Purchase and sale obligations
Purchase obligations						$ 4,700
Number of acres | a						36
Amended purchase agreement
Purchase and sale obligations
Purchase obligations		$ 3,100
Obligations For Investments In Real Estate Assets
Purchase and sale obligations
Purchase obligations	$ 10,397				$ 10,397
Area Of Building | ft²	134,000