MPG Office Trust CEO Discusses Q3 2010 Results – Earnings Call Transcript
Our supplemental package along with information required under SEC Regulation G may be accessed in the Investor Relations section of the MPG Office Trust website at www.mpgoffice.com. And now I’d like to turn the call over to our Chief Executive Officer Nelson Rising.
Good morning and thank you for joining us for our conference call.
The net loss for the third quarter of 2010 was $17.9 million or $0.36 per share. This compares favorably to a net loss available to common stockholders of $46.8 million or $0.97 per share for the quarter ended September 30, 2009. As you know, MPG defaulted on six non-recourse CMDS loans amounting to $830 million in August of 2009.In early October 2010, MPG gave notice of eminent default through the master servicer on a $140 million loan secured by City Tower in Orange County.The company is no longer servicing the debt and is no longer paying property taxes operating shortfalls or leasing costs with respect to these seven assets. In previous calls, we have said that the assets and liabilities as well as operating results are reflected on our balance sheet and in continuing results of operations until the time the assets are sold.In addition, we recorded default interest at 5% in addition to the contractual interest rate through the loan agreements. At the time of disposition of these default assets, the assets and liabilities of these properties are removed from our balance sheet and will record again in discontinued operations upon the extinguishment of the debt as we did in the third quarter of 2010.In the third quarter, earnings were positively impacted by gains totaling $23.7 million from the disposition of Park Place Two. These gains were partially offset by $9.9 million of default interest on other default properties and an impairment charge of $1.4 million was recorded in connection with the writedown of 207 Goode to its estimated fair value. This asset was sold in the fourth quarter. Shant will add additional color during the Q&A portions of this call to these accounting procedures.
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