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 David Weinstein, President and CEO. David?David Weinstein Good morning. As I’m sure you’re all aware, I was appointed President and CEO of MPG Office Trust at the end of November 2010. I had been an Independent Director on the Board since October 2008. I’ve also served on both the Audit and Finance Committees. Therefore, I’m very familiar with the company’s collection of high-quality assets and the company’s controlling market position here in Downtown Los Angeles. I’m also aware of the challenges faced by the company and the steps the company has taken to address those challenges. The company remains focused on these challenges and continues to work diligently and creatively to maximize value for our shareholders. The plan this morning is to provide a review of the results we released yesterday, along with an update on a number of company initiatives, and then we’ll turn the call over to questions. Our CFO, Shant, is here as well, and is obviously well versed in answering your questions. The company continues to work to implement a strategy that was approved by the Board of Directors and is supported by all of us here in management. The strategy includes maintaining our dominant market position in Downtown Los Angeles, preserving unrestricted cash, restructuring or exiting non-core assets, and extending debt maturities. Let me start with our cash situation. At December 31, 2010 we had $159.7 million of cash on hand, excluding properties that are in default. About $113 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 approximately $47 million was unrestricted and available for general corporate purposes.
As you would expect, we continue to monitor our cash reserves very closely and are careful in how we deploy capital.As highlighted in yesterday’s press release, in 2010 the company disposed of a number of non-core assets outside of Downtown Los Angeles. While those dispositions did not generate proceeds for the company, they resulted in the elimination of approximately $648 million of debt and the elimination of $20 million in repayment guarantees. And subsequent to quarter end, we were successful in disposing of a land parcel in Orange County, which resulted in net proceeds of just under $5 million to the company. The company’s in the process of marketing the Westin Pasadena Hotel for sale. It is too early to provide color on this sale aside from the fact that we received strong interest from a creditable group of buyers. In addition to the Westin Hotel, Plaza Las Fuentes also includes a 200,000 square foot mixed-use office project. We have recently entered the market to refinance the office project upon the sale of the Westin Hotel. The current loan on Plaza Las Fuentes project has a maturity date of September 2011. Remaining 2011 debt maturities include loans on 1 California Plaza and our Brea complex. We continue to work with our 80% joint venture partner, Charter Hall, to refinance 1 California Plaza. We are in discussions with the current lender in regards to a short-term extension of the loan. Just as a reminder, it was previously extended from December 1, 2010 to March 1, 2011. The $109 million loan on our Brea complex matures in May 2011. We have a one year extension option on that loan. We believe we will meet the required conditions for extension and we expect to submit an extension notice in the very near term. Our only 2012 debt maturity is at KPMG Tower, the debt matures in October 2012. We are very focused on this debt maturity but have nothing to report at this time. Read the rest of this transcript for free on seekingalpha.com