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MPG Office Trust Reports Fourth Quarter 2011 Financial Results

Stocks in this article: MPG

MPG Office Trust, Inc. (NYSE: MPG), a Southern California-focused real estate investment trust, today reported results for the quarter ended December 31, 2011.

Significant Fourth Quarter Events

  • We had $172.9 million of cash as of December 31, 2011 (excluding restricted cash related to mortgages in default), of which $117.9 million was unrestricted and $55.0 million was restricted.
  • During the fourth quarter of 2011, we completed new leases and renewals totaling approximately 278,000 square feet (including our pro rata share of our joint venture properties).
  • On October 27, 2011, 700 North Central and 801 North Brand were placed in receivership pursuant to our written agreements with the special servicer. On February 2, 2012, trustee sales were conducted with respect to the mortgage loans secured by 700 North Central and 801 North Brand as part of cooperative foreclosure proceedings. As a result of the foreclosures, we were relieved of the obligation to repay the $27.5 million mortgage loan secured by 700 North Central and the $75.5 million mortgage loan secured by 801 North Brand as well as accrued contractual and default interest on both loans.
  • On October 28, 2011, the Company entered into an agreement with Charter Hall Office REIT and an affiliate of Beacon Capital pursuant to which Charter Hall will transfer its 80% interest in Maguire Macquarie Office, LLC to Beacon. The agreement also outlines the terms of a new joint venture between Beacon and the Company. As part of the transfer, the existing joint venture will sell its interests in Wells Fargo Center, located in Denver, Colorado, and San Diego Tech Center, located in San Diego, California, to affiliates of Beacon; the Company will sell its development rights and an adjacent land parcel at San Diego Tech Center to an affiliate of Beacon; and the Company will receive a lump sum payment in consideration for its agreement to terminate its right to receive certain fees following the closing date.The Company and an affiliate of Beacon will continue to own interests in each of One California Plaza, located in downtown Los Angeles, Cerritos Corporate Center, located in Cerritos, California, and Stadium Gateway, located in Anaheim, California (which is currently being marketed for sale). The Company will have a 20% interest in the new joint venture following the closing date. The closing of the various transactions is expected to occur in the first quarter of 2012 and is subject to customary closing conditions, including obtaining lender consents.Net proceeds from the transactions to the Company are expected to total approximately $45 million (excluding any proceeds from a sale of Stadium Gateway) and will be used for general corporate purposes.
  • On December 2, 2011, the Company completed an $11.25 million mezzanine financing secured by the Plaza Las Fuentes office property located in Pasadena, California. Net proceeds from the financing totaled approximately $11 million.

Subsequent Event

  • On January 17, 2012, our special purpose property-owning subsidiary that owns Glendale Center defaulted on the mortgage loan secured by the property.

Fourth Quarter 2011 Financial Results

Net loss available to common stockholders for the quarter ended December 31, 2011 was ($31.5) million, or $(0.62) per share, compared to net loss available to common stockholders of ($138.3) million, or $(2.82) per share, for the quarter ended December 31, 2010.

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