This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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 And now I’d like to turn the call over to our Chief Executive Officer Nelson Rising.

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.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.25 -0.40%
FB $118.25 0.16%
GOOG $699.79 0.59%
TSLA $212.37 -4.60%
YHOO $37.06 2.90%


Chart of I:DJI
DOW 17,688.65 +37.39 0.21%
S&P 500 2,056.15 +5.03 0.25%
NASDAQ 4,735.0280 +9.3890 0.20%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs