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MPG Office Trust Reports Third Quarter 2012 Financial Results

Stocks in this article: MPG

For a further list and description of such risks and uncertainties, see our Annual Report on Form 10-K filed on March 15, 2012 with the Securities and Exchange Commission. The Company does not update forward-looking statements and disclaims any intention or obligation to update or revise them, whether as a result of new information, future events or otherwise.

   
MPG OFFICE TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 
September 30, 2012 December 31, 2011
(Unaudited)
ASSETS
Investments in real estate $ 2,168,111 $ 2,586,980
Less: accumulated depreciation (615,216 ) (659,408 )
Investments in real estate, net 1,552,895 1,927,572
 
Cash and cash equivalents 117,372 117,969
Restricted cash 72,978 74,387
Rents and other receivables, net 3,402 4,796
Deferred rents 51,251 54,663
Deferred leasing costs and value of in-place leases, net 56,761 71,696
Deferred loan costs, net 7,605 10,056
Other assets 4,920 7,252
Assets associated with real estate held for sale  

14,000

 

Total assets $ 1,867,184   $ 2,282,391  
 
LIABILITIES AND DEFICIT
Liabilities:
Mortgage loans $ 2,464,084 $ 3,045,995
Accounts payable and other liabilities 110,524 140,212
Excess distributions received from unconsolidated joint venture 7,700
Acquired below-market leases, net 14,037   24,110  
Total liabilities 2,596,345   3,210,317  
 
Deficit:
Stockholders’ Deficit:

7.625% Series A Cumulative Redeemable Preferred Stock,

$0.01 par value, $25.00 liquidation preference, 50,000,000 sharesauthorized; 9,730,370 shares issued and outstanding

as of September 30, 2012 and December 31, 2011

97 97
Common stock, $0.01 par value, 100,000,000 shares authorized;57,120,182 and 50,752,941 shares issued and outstanding

as of September 30, 2012 and December 31, 2011, respectively

571 508
Additional paid-in capital 608,056 703,436
Accumulated deficit and dividends (1,331,513 ) (1,504,759 )
Accumulated other comprehensive income (loss) 707   (15,166 )
Total stockholders’ deficit (722,082 ) (815,884 )
Noncontrolling Interests:
Accumulated deficit and dividends (7,079 ) (118,049 )
Accumulated other comprehensive income   6,007  
Total noncontrolling interests (7,079 ) (112,042 )
Total deficit (729,161 ) (927,926 )
Total liabilities and deficit $ 1,867,184   $ 2,282,391  
 
MPG OFFICE TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except share and per share amounts)
   
For the Three Months Ended For the Nine Months Ended
Sept. 30, 2012   Sept. 30, 2011 Sept. 30, 2012   Sept. 30, 2011
Revenue:
Rental $ 38,352 $ 41,149 $ 113,851 $ 123,879
Tenant reimbursements 19,707 20,532 57,542 60,148
Parking 7,725 8,195 24,027 24,395
Management, leasing and development services 414 2,590 2,196 4,715
Interest and other 1,481   580   15,794   2,504  
Total revenue 67,679   73,046   213,410   215,641  
 
Expenses:
Rental property operating and maintenance 19,178 17,436 52,968 51,075
Real estate taxes 6,439 6,528 18,539 18,949
Parking 2,013 2,074 6,135 6,524
General and administrative 5,861 5,258 17,721 17,257
Other expense 1,831 1,794 6,081 5,086
Depreciation and amortization 19,100 20,958 57,610 61,014
Impairment of long-lived assets 2,121
Interest 40,733 42,845 126,767 124,985
Loss from early extinguishment of debt       164  
Total expenses 95,155   96,893   287,942   285,054  
 
Loss from continuing operations before equity in

net income (loss) of unconsolidated joint venture

(27,476 ) (23,847 ) (74,532 ) (69,413 )
Equity in net income (loss) of unconsolidated joint venture 38   204   14,312   (129 )
Loss from continuing operations (27,438 ) (23,643 ) (60,220 ) (69,542 )
 
Discontinued Operations:
Loss from discontinued operations before gains on

settlement of debt and sale of real estate

(2,419 ) (18,736 ) (15,826 ) (65,629 )
Gains on settlement of debt 79,383 62,531 194,986 190,380
Gains on sale of real estate 45,483   10,215   66,707   73,844  
Income from discontinued operations 122,447   54,010   245,867   198,595  
 
Net income 95,009 30,367 185,647 129,053
Net (income) attributable to noncontrollingcommon units of our Operating Partnership (2,373 ) (2,915 ) (11,252 ) (13,193 )
Net income attributable to MPG Office Trust, Inc. 92,636 27,452 174,395 115,860
Preferred stock dividends (4,637 ) (4,637 ) (13,912 ) (14,169 )
Preferred stock redemption discount   2,780     2,780  
Net income available to common stockholders $ 87,999   $ 25,595   $ 160,483   $ 104,471  
 
Basic income per common share:
Loss from continuing operations $ (0.56 ) $ (0.45 ) $ (1.30 ) $ (1.45 )
Income from discontinued operations 2.13   0.96   4.34   3.57  
Net income available to

common stockholders per share

$ 1.57   $ 0.51   $ 3.04   $ 2.12  
 
Weighted average number of common shares outstanding 56,118,506   49,961,007   52,831,545   49,342,879  
 
Amounts attributable to MPG Office Trust, Inc.:
Loss from continuing operations $ (26,596 ) $ (20,439 ) $ (54,779 ) $ (59,910 )
Income from discontinued operations 119,232   47,891   229,174   175,770  
$ 92,636   $ 27,452   $ 174,395   $ 115,860  
 
MPG OFFICE TRUST, INC.
FUNDS FROM OPERATIONS
(Unaudited; in thousands, except share and per share amounts)
   
For the Three Months Ended For the Nine Months Ended
Sept. 30, 2012   Sept. 30, 2011 Sept. 30, 2012   Sept. 30, 2011
Reconciliation of net income available to common

stockholders to funds from operations:

Net income available to common stockholders $ 87,999 $ 25,595 $ 160,483 $ 104,471
Add: Depreciation and amortization of real estate assets 19,733 24,334 62,828 79,333
Depreciation and amortization of real estate assets –unconsolidated joint venture (a) 671 1,743 2,796 5,174
Impairment writedowns of depreciable real estate 9,330 2,121 23,218
Impairment writedowns of depreciable real estate –

unconsolidated joint venture (a)

731 2,907
Net income attributable to common units of ourOperating Partnership 2,373 2,915 11,252 13,193
(Unallocated) allocated losses –unconsolidated joint venture (a) (1,097 ) (776 ) 283 (1,150 )
Deduct: Gains on sale of real estate 45,483 10,215 66,707 73,844
Gains on sale of real estate –unconsolidated joint venture (a)     18,958    
Funds from operations available to common

stockholders and unit holders (FFO) (b)

$ 64,927   $ 52,926   $ 157,005   $ 150,395  
Company share of FFO (c) (d) $ 63,222   $ 46,930   $ 145,232   $ 133,139  
FFO per share – basic $ 1.13   $ 0.94   $ 2.75   $ 2.70  
FFO per share – diluted $ 1.11   $ 0.92   $ 2.71   $ 2.64  
Weighted average number of common sharesoutstanding – basic 56,118,506   49,961,007   52,831,545   49,342,879  
Weighted average number of common and common

equivalent shares outstanding – diluted

57,068,266   50,988,030   53,584,705   50,479,393  
 
Reconciliation of FFO to FFO before specified items: (e)
FFO available to common stockholders and unit holders (FFO) $ 64,927 $ 52,926 $ 157,005 $ 150,395
Add: Loss from early extinguishment of debt 399
Default interest accrued on mortgages in default 8,058 10,413 28,323 33,294
Writeoff of deferred financing costs related tomortgages in default 1,098 1,759
Deduct: Gains on settlement of debt 79,383 62,531 194,986 190,380
(Loss) gain from early extinguishment of debt, net –

unconsolidated joint venture (a)

(9 ) 179
Preferred stock redemption discount   2,780     2,780  
FFO before specified items $ (6,389 ) $ (1,972 ) $ (8,739 ) $ (7,313 )
Company share of FFO before specified items (c) (d) $ (6,221 ) $ (1,749 ) $ (8,355 ) $ (6,470 )
FFO per share before specified items – basic $ (0.11 ) $ (0.04 ) $ (0.16 ) $ (0.13 )
FFO per share before specified items – diluted $ (0.11 ) $ (0.04 ) $ (0.16 ) $ (0.13 )

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