Grubb & Ellis Company (GBE, Financial) filed Quarterly Report for the period ended 2010-06-30.
Grubb & Ellis Company has a market cap of $75.7 million; its shares were traded at around $1.09 with and P/S ratio of 0.2. GBE is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The net loss attributable to Grubb & Ellis Company common shareowners for the first six months of 2010 was $47.0 million, or $0.73 per diluted share, and included non-cash charges of $1.8 million for real estate related impairments and $1.6 million for intangible asset impairment and a $3.3 million charge, which includes an allowance for bad debt primarily on related party receivables and advances. In addition, the six-month results included approximately $5.8 million of share-based compensation and $1.7 million for amortization of identified intangible assets.
Investment Management revenue decreased $4.9 million, or 36.2%, to $8.6 million for the three months ended June 30, 2010, compared to approximately $13.4 million for the same period in 2009. Investment Management revenue reflects revenue generated through the fee structure of the various investment products which includes acquisition and loan fees of approximately $1.3 million and management fees from sponsored programs of $5.8 million. Key drivers of this business are the dollar value of equity raised, the amount of transactions that are generated in the investment product platforms and the amount of assets under management.
Operating expenses increased approximately $0.6 million, or 0.4%, to $159.3 million for the three months ended June 30, 2010, compared to approximately $158.7 million for the same period in 2009. This increase reflects an increase in compensation costs of $12.1 million, an increase in depreciation and amortization of $0.9 million and an increase in intangible asset impairment of $1.0 million offset by decreases in general and administrative expense of $1.1 million, a decrease in provision for doubtful accounts of $9.4 million, and a decrease in interest expense of $2.4 million.
Compensation costs increased approximately $12.1 million, or 10.8%, to $124.6 million for the three months ended June 30, 2010, compared to approximately $112.5 million for the same period in 2009 due to increases in transaction commissions and related costs of $11.7 million as a result of increased sales and leasing activity and increases in reimbursable salaries, wages and benefits of $2.2 million related to an increase in management services revenue. Decreases in other compensation costs of $1.8 million relate to a reduction in headcount. The following table summarizes compensation costs by segment for the periods indicated.
Depreciation and amortization expense increased approximately $0.9 million, or 39.1%, to $3.4 million for the three months ended June 30, 2010, compared to approximately $2.4 million for the same period in 2009 due to increases in depreciation and amortization of approximately $1.3 million related to two properties held for investment as of June 30, 2010, which were previously held for sale in 2009. There was no depreciation and amortization recorded for these two properties when they were held for sale in 2009. Offsetting the increase in depreciation and amortization was a decrease of $0.4 million related to fixed assets that had been fully depreciated in the prior year. Included in depreciation and amortization expense for the three months ended June 30, 2010 and 2009 was $0.9 million and $0.8 million, respectively, for amortization of identified intangible assets.
Read the The complete Report
Grubb & Ellis Company has a market cap of $75.7 million; its shares were traded at around $1.09 with and P/S ratio of 0.2. GBE is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The net loss attributable to Grubb & Ellis Company common shareowners for the second quarter of 2010 was $20.4 million, or $0.31 per diluted share, and included non-cash charges of $1.6 million for real estate related impairments and $1.0 million for intangible asset impairment and a $1.6 million charge, which includes an allowance for bad debt primarily on related party receivables and advances. In addition, the three-month results included approximately $2.8 million of share-based compensation and $0.9 million for amortization of identified intangible assets.The net loss attributable to Grubb & Ellis Company common shareowners for the first six months of 2010 was $47.0 million, or $0.73 per diluted share, and included non-cash charges of $1.8 million for real estate related impairments and $1.6 million for intangible asset impairment and a $3.3 million charge, which includes an allowance for bad debt primarily on related party receivables and advances. In addition, the six-month results included approximately $5.8 million of share-based compensation and $1.7 million for amortization of identified intangible assets.
Investment Management revenue decreased $4.9 million, or 36.2%, to $8.6 million for the three months ended June 30, 2010, compared to approximately $13.4 million for the same period in 2009. Investment Management revenue reflects revenue generated through the fee structure of the various investment products which includes acquisition and loan fees of approximately $1.3 million and management fees from sponsored programs of $5.8 million. Key drivers of this business are the dollar value of equity raised, the amount of transactions that are generated in the investment product platforms and the amount of assets under management.
Operating expenses increased approximately $0.6 million, or 0.4%, to $159.3 million for the three months ended June 30, 2010, compared to approximately $158.7 million for the same period in 2009. This increase reflects an increase in compensation costs of $12.1 million, an increase in depreciation and amortization of $0.9 million and an increase in intangible asset impairment of $1.0 million offset by decreases in general and administrative expense of $1.1 million, a decrease in provision for doubtful accounts of $9.4 million, and a decrease in interest expense of $2.4 million.
Compensation costs increased approximately $12.1 million, or 10.8%, to $124.6 million for the three months ended June 30, 2010, compared to approximately $112.5 million for the same period in 2009 due to increases in transaction commissions and related costs of $11.7 million as a result of increased sales and leasing activity and increases in reimbursable salaries, wages and benefits of $2.2 million related to an increase in management services revenue. Decreases in other compensation costs of $1.8 million relate to a reduction in headcount. The following table summarizes compensation costs by segment for the periods indicated.
Depreciation and amortization expense increased approximately $0.9 million, or 39.1%, to $3.4 million for the three months ended June 30, 2010, compared to approximately $2.4 million for the same period in 2009 due to increases in depreciation and amortization of approximately $1.3 million related to two properties held for investment as of June 30, 2010, which were previously held for sale in 2009. There was no depreciation and amortization recorded for these two properties when they were held for sale in 2009. Offsetting the increase in depreciation and amortization was a decrease of $0.4 million related to fixed assets that had been fully depreciated in the prior year. Included in depreciation and amortization expense for the three months ended June 30, 2010 and 2009 was $0.9 million and $0.8 million, respectively, for amortization of identified intangible assets.
Read the The complete Report
