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.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.
With respect to our liability or liquidity rather, at the end of the third quarter 2010, we had cash on hand of $180 million excluding properties and default; $120 million of this was restricted for specific purposes including swap collateral, prepaid rents, leasing commissions and tenant improvement reserves as well as property tax and insurance reserves and $60 million of this cash was unrestricted and has been available for general corporate purposes. This is $10.8 million less than the unrestricted cash balance at the end of the second quarter of 2010. These funds were used to pay for leasing cost including the release renewal of Southern California Gas Company, a gas company tower in downtown Los Angeles and Disney Corporation in Glendale.Addressing debt maturities remains a continuing focus. Subsequent to the end of the third quarter, we extended the loan on Plaza Las Fuentes till September 29, 2011. In order to complete a one-year extension of this loan, we will require to make a $9 million paydown using a combination of $6.5 million of restricted cash that we funded on October 29, 2010 and $2.5 million of restricted cash, which was held by the lender in reserves. There are no additional maturities in 2010. For the third quarter and through October 31 st, our leasing activities have been very encouraging. In the third quarter and through October 31st, we leased 1.1 million square feet in our wholly-owned assets. In addition, we leased 230,000 square feet in properties held in a joint venture with Charter Hall. The total leasing through October 31st was 1.3 million square feet of lease renewals and new tenants and our total leasing year-to-date is in excess of 2 million square feet. Our occupancy in downtown Los Angeles is 82% as follows: Wells Fargo Center, 94.4%; KPMG Tower, 93.4%, Gas Company Tower, 92.6%; two Cal Plaza, 82%; the 777 Tower, 77.4%; One Californian Plaza, 76.5%; and US Bank Tower, 57.5%. The vacancy in US Bank Tower is due in large part to Latham & Watkins moving from there to the KPMG Tower and the exploration of the Pacific Enterprise lease on June 30, 2010. Read the rest of this transcript for free on seekingalpha.com