First Potomac Realty Trust (NYSE: FPO) today announced that it is postponing the release of its financial results for the first quarter ended March 31, 2012, originally scheduled for release today. The Company currently expects, subject to the timing of the internal investigation described below, to release its earnings for the first quarter after the markets close on May 10, 2012. As a result, the Company has rescheduled its conference call from tomorrow, April 27, 2012, to May 11, 2012 at 9:00 a.m. ET. In addition, the Company announced over 576,000 square feet of leases signed in the first quarter, and is providing the operating performance of its properties below.
As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 (the “Form 10-K”), management identified a material weakness in the Company’s internal control over financial reporting as of December 31, 2011. Specifically, management determined that the Company did not effectively maintain and operate controls over the monitoring and oversight of compliance with financial covenants under its debt agreements, including the communication of financial covenant compliance matters with the Board of Trustees and the Audit Committee, which resulted in the Company failing to identify potential exceptions to covenant compliance and to provide related financial statement disclosures regarding potential financial covenant risks or violations under its debt agreements.
In response to the material weakness identified above, in late March, the Company’s Board of Trustees appointed a special committee of independent trustees to review the facts and circumstances relating to the material weakness determination and the Company’s processes surrounding the monitoring and oversight of compliance with financial covenants. The Board of Trustees has determined that a more detailed, internal investigation of these matters should be undertaken by independent outside professionals reporting to the Audit Committee of the Board of Trustees, which investigation is ongoing.
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