EDITION MAIN PAGE | Commercial Real Estate
Grubb & Ellis Reports Third Quarter Net Loss of $44 Million
(SANTA ANA, CA) - Grubb & Ellis Co. today reported a third-quarter net loss of $44 million or a loss of 69 cents per share. For the first nine months of this year, the net loss was $55 million or a loss of 87 cents per share.
Third-quarter revenue was $159.2 million versus $486.8 million for the nine-month period.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter was negative $56.3 million, compared with EBITDA for the combined companies of $17.3 million in the same period a year ago. For the first nine months of 2008, the company reported negative EBITDA of $48.3 million.
The third quarter 2008 EBITDA included the following charges, "all of which adversely affected the EBITDA result," says interim CEO Gary Hunt.
In a prepared statement, Hunt says, "Given the difficult market conditions, our underlying operations continued to perform well and we have clearly benefited from the impacts of cost reductions and operational changes implemented post merger.
"We continue to identify synergies and eliminate redundancies in an effort to maximize cost efficiencies. At the same time, we are taking advantage of the current environment to recruit high-quality professionals who understand that our expanded platform will create additional revenue opportunities."
Hunt added, "We are also capitalizing on the increasing trend of corporate owners and users to outsource their real estate services needs. We secured several important new business wins during the period, many of which would not have been possible without the restructuring resulting from the merger."
Third-quarter revenue was $159.2 million versus $486.8 million for the nine-month period.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter was negative $56.3 million, compared with EBITDA for the combined companies of $17.3 million in the same period a year ago. For the first nine months of 2008, the company reported negative EBITDA of $48.3 million.
The third quarter 2008 EBITDA included the following charges, "all of which adversely affected the EBITDA result," says interim CEO Gary Hunt.
- A $45.8 million real estate impairment charge related to real estate assets the company owns and has decided to market for sale;
- A $16.3 million charge related to the company's investment management programs; and
- $2.7 million of merger-related and integration costs.
Gary Hunt
In a prepared statement, Hunt says, "Given the difficult market conditions, our underlying operations continued to perform well and we have clearly benefited from the impacts of cost reductions and operational changes implemented post merger.
"We continue to identify synergies and eliminate redundancies in an effort to maximize cost efficiencies. At the same time, we are taking advantage of the current environment to recruit high-quality professionals who understand that our expanded platform will create additional revenue opportunities."
Hunt added, "We are also capitalizing on the increasing trend of corporate owners and users to outsource their real estate services needs. We secured several important new business wins during the period, many of which would not have been possible without the restructuring resulting from the merger."
Copyright 2010 - 2012 WORLD PROPERTY CHANNEL NETWORKS, INC. All Rights Reserved.
Comment with