Grubb & Ellis Company to Report Third-Quarter Loss as Expected

Apr 12, 2001, 01:00 ET from Grubb & Ellis Company

    NORTHBROOK, Ill., April 12 /PRNewswire/ -- Grubb & Ellis Company
 (NYSE:   GBE) today said it expects to report a loss in the range of $.02 to
 $.04 per diluted common share, before non-recurring charges, for the quarter
 ended March 31, 2001, compared with net income of $2.7 million, or
 $.13 per diluted common share, for the third fiscal quarter of 2000.
     The anticipated fiscal 2001 third-quarter loss can be attributed to what
 is seasonally the company's weakest quarter as well as the current economic
 softening, which has slowed transactions in certain markets.  In addition, the
 third quarter results will include a previously disclosed pre-tax
 non-recurring charge of approximately $1.0 million, or $.04 per diluted share
 after-tax, related to the "in the money" portion of the stock options
 exercised in connection with the company's recently completed tender offer.
     Fueled by continued market velocity from the latter part of calendar 1999,
 the fiscal 2000 third-quarter results of $.13 per diluted share marked the
 first time the company reported positive operating income in the quarter ended
 March 31 since 1985.
 
     OUTLOOK
     The company said it is premature to revise its calendar year 2001 estimate
 of $1.00 per diluted share before non-recurring charges, but cautioned that it
 would be negatively impacted if signs of economic recovery do not appear
 during the fourth fiscal quarter ending June 30, 2001.  Grubb & Ellis believes
 overall real estate fundamentals have softened moderately as negative
 absorption is resulting in higher vacancy rates throughout many markets.  In
 addition, real estate owners and users are delaying certain real estate
 decisions until economic conditions stabilize.
      Grubb & Ellis expects to release fiscal third quarter earnings on May 1
 prior to the opening of trading on the New York Stock Exchange.  Grubb & Ellis
 will hold an investor conference call at 3:00 p.m. CDT on May 1.  Interested
 parties may access the call in a listen only mode by dialing 800-497-1934.
 The conference call ID number is 998225.
     Grubb & Ellis Company is one of the nation's largest commercial real
 estate services firms.  Through its offices, affiliates and global strategic
 alliance with Knight Frank, one of the leading property consulting firms in
 Europe, Africa and Asia Pacific, the company provides a full range of real
 estate services, including advisory, management and consultative services, to
 users and investors worldwide.  With the collective resources of nearly 8,000
 people in over 200 offices in 29 countries, Grubb & Ellis professionals
 arrange the sale or lease of such business properties as industrial, retail
 and office buildings, as well as the acquisition and disposition of
 multi-family and hospitality properties and commercial land.  Major
 multiple-market clients have a single point of contact through the firm's
 corporate and institutional units for coordination of all of the firm's
 services as well as site selection, feasibility studies, market forecasts and
 research.  For more information, visit the company's website at
 www.grubb-ellis.com .
 
     Editor's note:
     Except for historical information, statements included in this
 announcement may constitute forward-looking statements regarding, among other
 things, market outlook, future revenue growth, EBITDA, income, changes in
 expense levels, profitability of acquired companies 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) the volume of transactions and prices
 for real estate in the real estate markets generally; (ii) a general or
 regional economic downturn that could create a recession in the real estate
 markets; (iii) the company's debt level and its ability to make interest and
 principal payments; (iv) an increase in expenses related to new initiatives,
 investments in people, technology and service improvements; (v) the success of
 new initiatives and investments; (vi) the ability of the company to integrate
 acquired companies and assets; and (vii) other factors described in the
 company's Form 10-K for the fiscal year ended June 30, 2000, filed with the
 SEC.
 
 

SOURCE Grubb & Ellis Company
    NORTHBROOK, Ill., April 12 /PRNewswire/ -- Grubb & Ellis Company
 (NYSE:   GBE) today said it expects to report a loss in the range of $.02 to
 $.04 per diluted common share, before non-recurring charges, for the quarter
 ended March 31, 2001, compared with net income of $2.7 million, or
 $.13 per diluted common share, for the third fiscal quarter of 2000.
     The anticipated fiscal 2001 third-quarter loss can be attributed to what
 is seasonally the company's weakest quarter as well as the current economic
 softening, which has slowed transactions in certain markets.  In addition, the
 third quarter results will include a previously disclosed pre-tax
 non-recurring charge of approximately $1.0 million, or $.04 per diluted share
 after-tax, related to the "in the money" portion of the stock options
 exercised in connection with the company's recently completed tender offer.
     Fueled by continued market velocity from the latter part of calendar 1999,
 the fiscal 2000 third-quarter results of $.13 per diluted share marked the
 first time the company reported positive operating income in the quarter ended
 March 31 since 1985.
 
     OUTLOOK
     The company said it is premature to revise its calendar year 2001 estimate
 of $1.00 per diluted share before non-recurring charges, but cautioned that it
 would be negatively impacted if signs of economic recovery do not appear
 during the fourth fiscal quarter ending June 30, 2001.  Grubb & Ellis believes
 overall real estate fundamentals have softened moderately as negative
 absorption is resulting in higher vacancy rates throughout many markets.  In
 addition, real estate owners and users are delaying certain real estate
 decisions until economic conditions stabilize.
      Grubb & Ellis expects to release fiscal third quarter earnings on May 1
 prior to the opening of trading on the New York Stock Exchange.  Grubb & Ellis
 will hold an investor conference call at 3:00 p.m. CDT on May 1.  Interested
 parties may access the call in a listen only mode by dialing 800-497-1934.
 The conference call ID number is 998225.
     Grubb & Ellis Company is one of the nation's largest commercial real
 estate services firms.  Through its offices, affiliates and global strategic
 alliance with Knight Frank, one of the leading property consulting firms in
 Europe, Africa and Asia Pacific, the company provides a full range of real
 estate services, including advisory, management and consultative services, to
 users and investors worldwide.  With the collective resources of nearly 8,000
 people in over 200 offices in 29 countries, Grubb & Ellis professionals
 arrange the sale or lease of such business properties as industrial, retail
 and office buildings, as well as the acquisition and disposition of
 multi-family and hospitality properties and commercial land.  Major
 multiple-market clients have a single point of contact through the firm's
 corporate and institutional units for coordination of all of the firm's
 services as well as site selection, feasibility studies, market forecasts and
 research.  For more information, visit the company's website at
 www.grubb-ellis.com .
 
     Editor's note:
     Except for historical information, statements included in this
 announcement may constitute forward-looking statements regarding, among other
 things, market outlook, future revenue growth, EBITDA, income, changes in
 expense levels, profitability of acquired companies 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) the volume of transactions and prices
 for real estate in the real estate markets generally; (ii) a general or
 regional economic downturn that could create a recession in the real estate
 markets; (iii) the company's debt level and its ability to make interest and
 principal payments; (iv) an increase in expenses related to new initiatives,
 investments in people, technology and service improvements; (v) the success of
 new initiatives and investments; (vi) the ability of the company to integrate
 acquired companies and assets; and (vii) other factors described in the
 company's Form 10-K for the fiscal year ended June 30, 2000, filed with the
 SEC.
 
 SOURCE  Grubb & Ellis Company