Grubb & Ellis Company Reports Fourth-Quarter and Full-Year 2009 Results
SANTA ANA, Calif., Feb. 18 /PRNewswire-FirstCall/ -- Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today reported fourth quarter 2009 revenue of $150.6 million, compared with revenue of $160.0 million for the fourth quarter of 2008. For the full year 2009, Grubb & Ellis reported revenue of $535.6 million, compared with revenue of $628.8 million in 2008.
Net income attributable to the company for the fourth quarter of 2009 was $16.8 million, or $0.11 per share, primarily as a result of a gain of $21.9 million realized on the repayment of debt and $3.5 million of income from discontinued operations related to the disposal of two real estate related assets held for sale. In the comparable 2008 period, the company reported a net loss of $262.9 million, or $4.15 per share. For 2009, the company reported a net loss of $78.8 million, or $1.27 per share, compared with a net loss of $330.9 million, or $5.21 per share, for the same period a year ago.
Company Highlights
- Issued $97 million in preferred stock that allowed the company to repay in full its senior secured credit facility and provided approximately $40 million in working capital.
- Successfully launched Grubb & Ellis Healthcare REIT II, the company's newest non-traded public real estate investment trust product.
- Recruited 13 senior-level brokerage sales professionals during the fourth quarter, bringing to 99 the number of top brokerage sales professionals who have joined the company since July 2008. During the same period, the company has transitioned out 176 lower producing brokers.
- Expanded corporate outsourcing revenue by 14 percent and retained all of the company's national account relationships during 2009.
"Although Grubb & Ellis' overall fourth-quarter results were short of our expectations, the company did report better than expected performance in its Management Services and Investment Management businesses. Our Transaction Services business, however, continues to reflect the challenges in the commercial real estate sales and leasing markets," said Thomas P. D'Arcy, president and chief executive officer of Grubb & Ellis. "During the fourth quarter we strengthened our balance sheet and grew our core businesses by continuing to recruit key industry talent, increasing square feet under management and adding to our mix of investment products. We believe these initiatives provide a strong foundation for the company's long term growth prospects."
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) for the fourth quarter of 2009 was $1.1 million, compared with adjusted EBITDA of negative $4.4 million in the same period a year ago. For the full year 2009, the company reported negative adjusted EBITDA of $24.0 million, compared with positive adjusted EBITDA of $22.9 million in the same period a year ago. The income and charges excluded from EBITDA to arrive at adjusted EBITDA are detailed in the Reconciliation of Net Income (Loss) to Adjusted EBITDA in the tables following this release.
OPERATING SEGMENTS
Management Services
Management Services revenue includes asset and property management fees as well as reimbursed salaries, wages and benefits from the company's third-party property management and facilities outsourcing services, along with business services fees. Management Services revenue was $75.0 million for the fourth quarter of 2009, up 10.7 percent from $67.8 million for the same period a year ago. Full-year 2009 Management Services revenue was $274.7 million, an 8.3 percent increase from revenue of $253.7 million during the same period a year ago.
The company expanded its client roster and management portfolio throughout 2009. On a net basis, square feet under management increased by 8 percent, or 16 million square feet, year-over-year, excluding the assets owned by the company's first sponsored public non-traded healthcare REIT, which is now self-advised. At Dec. 31, 2009, the company managed approximately 240.7 million square feet of commercial real estate and multi family property, including 24.3 million square feet of Grubb & Ellis' Investment Management portfolio.
Transaction Services
Transaction Services revenue for the fourth quarter of 2009, including brokerage commission, valuation and consulting revenue, was $54.6 million, compared with $67.1 million in the same period a year ago. As the company previously reported, the decrease is primary the result of reduced transaction activity and higher direct costs. The Transaction Services segment generated revenue of $173.4 million during all of 2009, compared with $240.3 million in 2008.
Leasing activity represented approximately 80 percent of the company's total Transaction Services revenue in 2009, while investment sales accounted for 20 percent of total revenue. In 2008, the revenue breakdown was 77 percent leasing and 23 percent investment sales. Although down 57 percent for the year, the company's investment sales revenue increased 45 percent in the fourth quarter of 2009 versus the third quarter, an indication that the investment sales market could be in the early stages of recovery.
As part of its recruiting efforts, the company has significantly upgraded the quality of its brokerage sales professionals, with the annual production of the company's new recruits averaging $675,000. This compares favorably to the 176 brokers who were terminated since July 2008 with annual production of less than $200,000. Throughout this period, the company's retention rate among existing brokerage professionals has been extremely high.
Investment Management
Investment Management revenue for the fourth quarter of 2009, which includes transaction fees, captive management fees and dealer-manager fees, totaled $13.4 million, compared with revenue of $17.1 million in the same period a year ago. For the full year, Investment Management revenue was $57.3 million, compared with $101.6 million in the same period a year earlier. The decreases in both the current quarter and year-to-date revenue are attributable to the current market environment, which has significantly slowed investment sales activity for the tenant-in-common and private client programs. The year-over-year decreases in acquisition, loan and disposition fees generated by the company's investment programs were 62.1 percent and 17.1 percent during the fourth quarter and full year, respectively.
During 2009, approximately $554.7 million in equity was raised for the company's investment programs, compared with $984.3 million in 2008. This decrease can be attributed to lower tenant-in-common and private client management equity as well as the transition of advisory services for the company's first sponsored public non-traded healthcare REIT, which is now self-advised. Sales of Grubb & Ellis Healthcare REIT II, the company's second public non-traded healthcare REIT, commenced in the third quarter and began raising equity during the fourth quarter.
At Dec. 31, 2009, the company had assets under management of $5.8 billion, which was unchanged from assets under management at Sept. 30, 2009.
Rental-Related Operations
Rental-related revenue and rental-related expense includes pass-through revenue and expenses for master lease accommodations related to the company's tenant-in-common programs. Rental-related revenue and rental-related expense also includes results from two properties held for investment.
2010 Outlook
The company anticipates 2010 total revenue of $550 million to $575 million and adjusted EBITDA of $10 million to $15 million.
This guidance is based on the expectation that commercial real estate activity in the U.S. will begin to improve in the second half of 2010. For 2010, the company is forecasting a 25 to 30 percent increase in investment sales activity over 2009 levels, and leasing activity to grow between 10 to 15 percent over the prior year. Grubb & Ellis also expects to see an increase in Transaction Services revenue from its recruiting efforts, and a slight margin increase based on a more diversified revenue mix. The company is forecasting Management Services revenue to continue its steady growth and Investment Management revenue to be flat year-over-year as it continues to ramp up sales of its new REIT products. Offsetting these lower revenue expectations are $25 million of annualized cost savings of which the company expects to realize approximately $20 million in 2010.
"By aggressively addressing our corporate overhead costs and strategically investing in our core business, we expect Grubb & Ellis to return to profitability in 2010," D'Arcy said. "On the cost side, we have taken action to align our cost structure to match the drivers of our revenue. This action has resulted in reductions in non-client facing operating expenses of 12 to 14 percent on an annual basis. In terms of investments, we will continue to attract and acquire top brokerage talent, open new offices, expand our service offerings and create a more robust operating platform. As a result of these efforts, Grubb & Ellis will be a leaner, more competitive organization, well positioned for sustainable long-term growth."
Conference Call & Webcast
Management will host a conference call today at 10:30 a.m. Eastern Time to review the results. A live webcast will be accessible through the Investor Relations section of the company's Web site at http://www.grubb-ellis.com. The direct dial-in number for the conference call is 1.800.706.7749 for domestic callers and 1.617.614.3474 for international callers. The conference call ID number is 81705538. An audio replay will be available beginning at 1:30 p.m. ET on Thursday, Feb. 18 until 7 p.m. ET on Thursday, Feb. 25 and can be accessed by dialing 1.888.286.8010 for domestic callers and 1.617.801.6888 for international callers and entering conference call ID 41102092. In addition, the conference call audio will be archived on the company's Web site following the call.
About Grubb & Ellis Company
Named to The Global Outsourcing 100(TM) in 2009 by the International Association of Outsourcing Professionals(TM), Grubb & Ellis Company (NYSE: GBE) is one of the largest and most respected commercial real estate services and investment companies in the world. Our 6,000 professionals in more than 130 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm's transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment subsidiaries, the company is a leading sponsor of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including public non-traded real estate investment trusts (REITs), mutual funds and other real estate investment funds. For more information, visit www.grubb-ellis.com.
Forward-Looking Statement
Certain statements included in this press release may constitute forward-looking statements regarding, among other things, the ability of future revenue growth, market trends, new business opportunities and investment programs, results of operations, changes in expense levels and profitability and effects on the company of changes in the real estate markets. These statements involve known and unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Such factors which could adversely affect the company's ability to obtain these results include, among other things: (i) a continued or further slowdown in the volume and the decline in transaction values of sales and leasing transactions; (ii) the continuing general economic downturn and recessionary pressures on businesses in general; (iii) a prolonged and pronounced recession and continued decline in real estate markets and values; (iv) the unavailability of credit to finance real estate transactions; (v) the ability of the company to return to compliance with the NYSE's continued listing standards; (vi) the success of current and new investment programs; (vii) the success of new initiatives and investments; (viii) the inability to attain expected levels of revenue, performance, brand equity and expense reductions in the current macroeconomic and credit environment and (ix) other factors described in the company's annual report on Form 10-K/A for the fiscal year ending December 31, 2008, Form 10-Q for the three-month periods ending March 31, 2009, June 30, 2009 and September 30, 2009 and in other current reports on Form 8-K filed with the Securities and Exchange Commission (the "SEC"). The company does not undertake any obligation to update forward-looking statements.
Non-GAAP Financial Information
In addition to the results reported in accordance with U.S. generally accepted accounting principles (GAAP) included within this press release, Grubb & Ellis Company has provided certain information, which includes non-GAAP financial measures. Such information is reconciled to its closest GAAP measure in accordance with the Securities and Exchange Commission rules and is included in the attached supplemental data. Management believes that these non-GAAP financial measures are useful to both management and the company's stockholders in their analysis of the business and operating performance of the company. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measures. Additionally, non-GAAP financial measures as presented by Grubb & Ellis Company may not be comparable to similarly titled measures reported by other companies.
TABLES FOLLOW
Grubb & Ellis Company
Consolidated Statements of Operations
(in thousands)
(Unaudited)
Three Months Ended Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
REVENUE
Management services $75,048 $67,809 $274,684 $253,664
Transaction services 54,601 67,059 173,394 240,250
Investment management 13,370 17,100 57,282 101,581
Rental related 7,531 7,983 30,285 33,284
----- ----- ------ ------
TOTAL REVENUE 150,550 159,951 535,645 628,779
------- ------- ------- -------
OPERATING EXPENSE
Compensation costs 34,186 41,939 141,220 154,105
Transaction
commissions
and related costs 39,846 46,335 125,206 164,316
Reimbursable salaries,
wages, and benefits 53,434 49,242 203,112 184,585
General and
administrative 21,045 35,273 104,846 119,660
Depreciation and
amortization 3,956 2,336 12,324 16,028
Rental related 5,128 5,993 21,287 21,377
Interest 2,956 4,279 15,446 14,207
Merger related costs - 4,515 - 14,732
Real estate related
impairments 757 24,336 17,372 59,114
Goodwill and intangible
asset impairment 155 181,285 738 181,285
--- ------- --- -------
Total operating
expense 161,463 395,533 641,551 929,409
------- ------- ------- -------
OPERATING LOSS (10,913) (235,582) (105,906) (300,630)
------- -------- -------- --------
OTHER INCOME (EXPENSE)
Equity in earnings
(losses) of
unconsolidated
entities 487 (2,709) (1,148) (13,311)
Interest income 83 145 555 902
Other income (expense) 21,945 (2,657) 22,339 (6,458)
------ ------ ------ ------
Total other
income
(expense) 22,515 (5,221) 21,746 (18,867)
------ ------ ------ -------
Income (loss) from
continuing
operations before
income tax benefit
(provision) 11,602 (240,803) (84,160) (319,497)
Income tax benefit
(provision) 1,762 (22,297) 1,175 827
----- ------- ----- ---
Income (loss) from
continuing
operations 13,364 (263,100) (82,985) (318,670)
Income (loss) from
discontinued
operations 3,491 (5,231) 2,486 (23,921)
----- ------ ----- -------
Net income (loss) 16,855 (268,331) (80,499) (342,591)
------ -------- ------- --------
Net income (loss)
attributable
to noncontrolling
interests 25 (5,421) (1,661) (11,719)
=== ====== ====== =======
Net income (loss)
attributable
to Grubb & Ellis
Company $16,830 $(262,910) $(78,838) $(330,872)
======= ========= ======== =========
Earnings per share
- basic:
Income (loss) from
continuing operations
attributable to
Grubb & Ellis
Company $0.08 $(4.07) $(1.31) $(4.83)
Income (loss) from
discontinued
operations attributable
to Grubb & Ellis
Company 0.03 (0.08) 0.04 (0.38)
---- ----- ---- -----
Net income (loss)
per share $0.11 $(4.15) $(1.27) $(5.21)
===== ====== ====== ======
Earnings per share
- diluted:
Income (loss) from
continuing
operations attributable
to Grubb & Ellis
Company $0.08 $(4.07) $(1.31) $(4.83)
Income (loss) from
discontinued
operations attributable
to Grubb & Ellis
Company 0.03 (0.08) 0.04 (0.38)
---- ----- ---- -----
Net income (loss)
per share $0.11 $(4.15) $(1.27) $(5.21)
===== ====== ====== ======
Grubb & Ellis Company
Consolidated Balance Sheets
(in thousands)
(Unaudited)
December 31, December 31,
2009 2008
---- ----
ASSETS
Cash and cash equivalents $39,101 $32,985
Restricted cash 13,875 36,047
Investment in marketable securities 690 1,510
Accounts receivable from related parties
- net 9,169 22,630
Notes and advances to related parties -
net 1,019 12,082
Services fees receivable - net 30,293 26,987
Professional service contracts - net 3,626 4,326
Real estate deposits and pre-acquisition
costs 1,321 5,961
Properties held for sale including
investments in unconsolidated real
estate - net - 78,708
Identified intangible assets and other
assets held for sale - net - 25,747
Prepaid expenses and other current assets 16,497 23,620
Deferred tax asset 4,992 -
----- ---
TOTAL CURRENT ASSETS 120,583 270,603
Accounts receivable from related parties
- net 15,609 11,072
Notes and advances to related parties -
net 14,607 11,499
Professional service contracts - net 7,271 10,320
Investments in unconsolidated entities 3,783 8,733
Properties held for investment - net 82,189 88,699
Property, equipment and leasehold
improvements - net 13,190 14,020
Identified intangible assets - net 94,952 100,631
Other assets - net 5,140 4,700
----- -----
TOTAL ASSETS $357,324 $520,277
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $62,867 $70,222
Due to related parties 2,267 2,447
Line of credit - 63,000
Notes payable and capital lease
obligations 939 333
Notes payable of properties held for sale - 108,959
Liabilities of properties held for sale -
net - 9,257
Other liabilities 38,864 37,550
Deferred tax liability - 2,080
--- -----
TOTAL CURRENT LIABILITIES 104,937 293,848
Senior notes 16,277 16,277
Notes payable and capital lease
obligations 107,755 107,203
Other long-term liabilities 11,622 11,875
Deferred tax liability 25,477 17,298
------ ------
TOTAL LIABILITIES 266,068 446,501
Preferred Stock - 12% cumulative
participating perpetual convertible 90,080 -
Common stock 654 654
Additional paid-in capital 412,774 402,780
Accumulated deficit (412,101) (333,263)
-------- --------
Total Grubb & Ellis Company
stockholders' equity 1,327 70,171
Noncontrolling interests (151) 3,605
---- -----
TOTAL EQUITY 1,176 73,776
----- ------
TOTAL LIABILITIES & EQUITY $357,324 $520,277
======== ========
Grubb & Ellis Company
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in thousands)
(Unaudited)
Three Months Ended Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net income (loss)
attributable
to Grubb & Ellis
Company $16,830 $(262,910) $(78,838) $(330,872)
Discontinued
operations (3,491) 5,231 (2,486) 23,921
Interest expense 2,956 4,279 15,446 14,207
Interest income (83) (145) (555) (902)
Depreciation and
amortization 3,956 2,336 12,324 16,028
Goodwill and
intangible assets
impairment 155 181,285 738 181,285
Taxes (1,762) 22,297 (1,175) (827)
------ ------ ------ ----
EBITDA (1) 18,561 (47,627) (54,546) (97,160)
Gain related to
the repayment
of the credit
facility, net (21,935) - (21,935) -
Charges related
to sponsored
programs 1,744 11,475 23,348 27,771
Real estate related
impairment 757 24,336 17,372 59,114
Write off of
investment in
Grubb & Ellis
Realty Advisors,
net - - - 5,828
Stock based
compensation 2,144 3,423 10,876 11,907
Amortization
of signing
bonuses 1,831 1,967 7,535 7,603
Loss on marketable
securities - - - 1,783
Merger related costs - 4,515 - 14,732
Amortization of
contract rights - - - 1,179
Real estate
operations (1,970) (2,505) (7,959) (9,993)
Other (32) - 1,319 163
--- --- ----- ---
Adjusted
EBITDA (1) $1,100 $(4,416) $(23,990) $22,927
====== ======= ======== =======
(1) EBITDA represents earnings before net interest expense, interest
income, realized gains or losses on sales of marketable securities,
income taxes, depreciation, amortization, discontinued operations
and impairments related to goodwill and intangible assets. Management
believes EBITDA is useful in evaluating our performance compared to
that of other companies in our industry because the calculation of
EBITDA generally eliminates the effects of financing and income taxes
and the accounting effects of capital spending and acquisition, which
items may vary for different companies for reasons unrelated to
overall operating performance. As a result, management uses EBITDA
as an operating measure to evaluate the operating performance of the
Company's various business lines and for other discretionary purposes,
including as a significant component when measuring performance under
employee incentive programs.
However, EBITDA is not a recognized measurement under U.S. generally
accepted accounting principles, or GAAP, and when analyzing the
Company's operating performance, readers should use EBITDA in addition
to, and not as an alternative for, net income as determined in
accordance with GAAP. Because not all companies use identical
calculations, our presentation of EBITDA may not be comparable to
similarly titled measures of other companies. Furthermore, EBITDA
is not intended to be a measure of free cash flow for management's
discretionary use, as it does not consider certain cash requirements
such as tax and debt service payments.
Grubb & Ellis Company
Supplemental Data
(in thousands except for properties acquired/disposed)
(Unaudited)
Three Months Ended Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Investment management
revenue:
Acquisition
and loan fees $5,056 $2,588 $12,543 $33,126
Property and asset
management fees 6,557 9,569 31,466 37,973
Disposition fees
(excluding
amortization
of intangible
contract
rights) - - - 5,808
Amortization of
intangible
contract rights - - - (1,179)
Other 1,757 4,943 13,273 25,853
----- ----- ------ ------
Total investment
management
revenue $13,370 $17,100 $57,282 $101,581
------- ------- ------- --------
Investment
management data:
Total properties
acquired (1) 8 4 14 50
Total aggregate
purchase
price (1) $253,435 $119,565 $493,759 $1,175,797
Total properties
disposed - - 6 9
Total aggregate
sales value
at disposition $- $- $103,384 $225,775
Total square
feet under
management 40,989 46,838 40,989 46,838
Assets under
management (2) $5,772,005 $6,794,580 $5,772,005 $6,794,580
Equity raise:
Non-traded
real estate
investment
trust (3) $18,937 $196,565 $536,934 $592,688
Tenant-in-common 2,513 23,967 15,504 176,911
Private client
accounts - - - 193,290
Other 277 3,296 2,309 21,439
--- ----- ----- ------
Total equity
raise $21,727 $223,828 $554,747 $984,328
------- -------- -------- --------
(1) The 4th quarter 2009 includes the acquisition of 8 properties for
Healthcare Trust of America, formerly Grubb & Ellis Healthcare REIT.
(2) The value of assets under management is based on the original
acquisition price of such assets. The decrease reflects the
separation of Healthcare Trust of America.
(3) Excludes capital raised through the dividend reinvestment program.
Grubb & Ellis Company
Segment Data
(in thousands)
(Unaudited)
Three Months Ended Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
MANAGEMENT SERVICES
Revenue $75,048 $67,809 $274,684 $253,664
Compensation costs 8,999 10,640 36,701 39,125
Transaction
commissions and
related costs 5,276 2,160 12,623 8,581
Reimbursable
salaries, wages,
and benefits 51,081 46,975 193,682 178,058
General and
administrative 2,826 2,573 10,869 8,877
----- ----- ------ -----
Segment operating
income 6,866 5,461 20,809 19,023
TRANSACTION SERVICES
Revenue 54,601 67,059 173,394 240,250
Compensation costs 11,287 13,783 44,274 50,272
Transaction
commissions and
related costs 34,666 44,138 112,398 155,668
General and
administrative 8,478 8,547 33,937 35,573
----- ----- ------ ------
Segment operating
income (loss) 170 591 (17,215) (1,263)
INVESTMENT MANAGEMENT
Revenue 13,370 17,100 57,282 101,581
Compensation costs 5,387 7,310 26,275 30,254
Transaction
commissions and
related costs 52 12 84 18
Reimbursable
salaries, wages,
and benefits 2,354 2,087 9,430 6,458
General and
administrative 4,557 14,882 37,150 37,374
----- ------ ------ ------
Segment operating
income (loss) 1,020 (7,191) (15,657) 27,477
RECONCILIATION TO
CONSOLIDATED
NET INCOME (LOSS):
Total segment
operating income
(loss) 8,056 (1,139) (12,063) 45,237
Rental Operations,
net of rental
related expenses 2,234 2,309 8,245 11,964
Corporate overhead
(compensation,
general and
administrative
costs) (13,379) (20,001) (56,208) (72,465)
Other operating
expenses (7,824) (216,751) (45,880) (285,366)
Other income
(expense) 22,515 (5,221) 21,746 (18,867)
------ ------ ------ -------
Income (loss) from
continuing operations
before income tax
benefit (provision) 11,602 (240,803) (84,160) (319,497)
Income tax benefit
(provision) 1,762 (22,297) 1,175 827
----- ------- ----- ---
Income (loss) from
continuing operations 13,364 (263,100) (82,985) (318,670)
Income (loss) from
discontinued
operations 3,491 (5,231) 2,486 (23,921)
----- ------ ----- -------
Net income (loss) 16,855 (268,331) (80,499) (342,591)
------ -------- ------- --------
Net income (loss)
attributable to
the noncontrolling
interests 25 (5,421) (1,661) (11,719)
--- ------ ------ -------
Net income (loss)
attributable
to Grubb & Ellis
Company $16,830 $(262,910) $(78,838) $(330,872)
======= ========= ======== =========
Grubb & Ellis Company
Calculation of Earnings per Share
(in thousands)
(Unaudited)
Three Months Ended Year Ended
------------------------ ------------------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Numerator for earnings
per share - basic:
Income (loss) from
continuing operations $13,364 $(263,100) $(82,985) $(318,670)
Less: Net income
(loss) attributable
to the
noncontrolling
interests (25) 5,421 1,661 11,719
Less: Preferred
dividends (1,770) - (1,770) -
Less: Income allocated
to participating
securityholders (5,955) - - -
------ --- --- ---
Income (loss) from
continuing
operations
attributable to
Grubb & Ellis
Company
common shareholders 5,614 (257,679) (83,094) (306,951)
------ -------- ------- --------
Income (loss) from
discontinued operations 3,491 (5,231) 2,486 (23,921)
Less: Income allocated
to participating
securityholders (1,797) - - -
------ --- --- ---
Income (loss) from
discontinued
operations
attributable to
Grubb & Ellis
Company
common shareholders 1,694 (5,231) 2,486 (23,921)
------ ------ ----- ------
Income (loss)
attributable to
Grubb & Ellis Company 16,830 (262,910) (78,838) (330,872)
Less: Preferred
dividends (1,770) - (1,770) -
Less: Income allocated
to participating
securityholders (7,752) - - -
------ --- --- ---
Net income (loss)
attributable to
Grubb & Ellis
Company
common shareholders $7,308 $(262,910) $(80,608) $(330,872)
====== ========= ======== =========
Earnings per
share - basic:
Income (loss) from
continuing operations
attributable to
Grubb & Ellis Company $0.08 $(4.07) $(1.31) $(4.83)
Income (loss) from
discontinued operations
attributable to
Grubb & Ellis Company 0.03 (0.08) 0.04 (0.38)
---- ----- ---- -----
Net income (loss)
per share $0.11 $(4.15) $(1.27) $(5.21)
===== ====== ====== ======
Weighted average shares
outstanding - basic 63,676 63,338 63,645 63,515
====== ====== ====== ======
Earnings per share -
diluted (a):
Income (loss) from
continuing operations
attributable to
Grubb & Ellis Company $0.08 $(4.07) $(1.31) $(4.83)
Income (loss) from
discontinued operations
attributable to
Grubb & Ellis Company 0.03 (0.08) 0.04 (0.38)
---- ----- ---- -----
Net income (loss)
per share $0.11 $(4.15) $(1.27) $(5.21)
===== ====== ====== ======
Weighted average
shares outstanding -
diluted 63,676 63,338 63,645 63,515
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(a) For each of the periods presented, fully diluted earnings per share,
as computed in accordance with Earnings Per Share Topic 260, produces
an anti-dilutive result. Therefore, the results for fully diluted
earnings per share are the same as those for basic earnings per share.
SOURCE Grubb & Ellis Company
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