Maguire Properties' Loss Widens ($375.7 million) By KERRY GRACE BENN WSJ 08-10-2009

Maguire Properties' Loss Widens ($375.7 million) By KERRY GRACE BENN WSJ 08-10-2009

Maguire Properties' Loss Widens
By KERRY GRACE BENN
Wall Street Journal
Agust 10, 2009

Maguire Properties Inc.'s second-quarter loss widened on write-downs as the developer's revenue was flat.

Commercial real-estate investment trusts like Maguire have been slammed recently by rising foreclosures and delinquencies. Maguire has been struggling since its purchase of a portfolio of office buildings in Southern California's Orange County in early 2007, just before the crash of the subprime-mortgage industry. It has been selling off properties, and is planning to hand over control of seven buildings with $1.06 billion in debt to creditors.

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In the latest quarter, Maguire recorded $384.7 million in write-downs related to the properties.

Maguire Properties, one of the largest office landlords in Southern California, on Monday posted a loss of $375.7 million, or $7.95 a share, compared with a year-earlier loss of $105.9 million, or $2.32 a share. The results included 76 cents a share this year and $1.21 a share last year in losses from discontinued operations.

Funds from operations, an important profitability measure for REITs, widened to a loss of $7.10 a share from a loss of $1.18 a share. Excluding items, funds from operations slipped to eight cents a share from nine cents a share.

Revenue was $134.78 million.

The company completed about 452,000 square feet in new leases and renewals in the quarter.

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