Grubb & Ellis Company (GBE, Financial) filed Quarterly Report for the period ended 2011-06-30.
Grubb & Ellis Co. has a market cap of $37.82 million; its shares were traded at around $0.59 with and P/S ratio of 0.07.
The net loss attributable to Grubb & Ellis Company for the second quarter of 2011 was $14.3 million and included non-cash charges of $2.0 million for depreciation and amortization, $2.6 million of charges for bad debt, $0.7 million of share-based compensation and $1.4 million for amortization of signing bonuses. In addition, the second quarter results included approximately $0.1 million of severance and other charges. After the accrual of preferred stock dividends of $2.9 million, the net loss attributable to Grubb & Ellis Company common shareowners for the three months ended June 30, 2011 was $17.2 million, or $0.26 per diluted share.
We reported revenue of $250.2 million for the six months ended June 30, 2011, compared with revenue of $243.4 million for the same period in 2010. The increase was primarily the result of an increase in Transaction Services revenue of $26.3 million and an increase in Investment Management revenue of $6.1 million offset by a decrease in Management Services revenue of $25.6 million. The increase in our Investment Management revenue resulted from more acquisitions in 2011, as $218.0 million of acquisitions were sourced in 2011 compared to $60.2 million of acquisitions in 2010. The increase in our Transaction Services revenue can be attributed to increased sales, leasing and appraisal transactions. The decrease in our Management Services revenue as compared to the prior year period is primarily attributed to a decrease in reimbursable revenue.
The net loss attributable to Grubb & Ellis Company for the six months ended June 30, 2011 was $32.6 million and included non-cash charges of $4.1 million for depreciation and amortization, $3.8 million of charges for bad debt, $2.4 million of share-based compensation and $3.1 million for amortization of signing bonuses. In addition, the six month results included approximately $1.0 million of severance and other charges. After the accrual of preferred stock dividends of $5.8 million, the net loss attributable to Grubb & Ellis Company common shareowners for the six months ended June 30, 2011 was $38.4 million, or $0.58 per diluted share.
Transaction Services revenue increased $18.1 million, or 33.2%, to $72.8 million for the three months ended June 30, 2011, compared to $54.7 million for the same period in 2010 due to increased sales transaction volume and values as a result of increased broker productivity and the recovering real estate market. Leasing activity represented approximately 59% of the total sales and leasing revenue of $56.9 million in 2011, while sales accounted for 41% of total sales and leasing revenue. In 2010, the revenue breakdown was 72% leasing, and 28% sales of total sales and leasing revenue of $47.7 million. As of June 30, 2011, we had 943 brokers in owned offices, down from 1,006 as of December 31, 2010. Other revenue was $15.9 million and $7.0 million for the three months ended June 30, 2011 and 2010, respectively, and includes $4.8 million of revenue for the three months ended June 30, 2011 related to our appraisal and valuation business compared to $0.9 million of revenue in the prior year period. Appraisal and valuation revenue increased approximately 78% sequentially from the first quarter of 2011 of $2.7 million as a result of the launch of our new Landauer appraisal business late in the third quarter of 2010.
Compensation costs increased approximately $1.7 million, or 1.4%, to $121.2 million for the three months ended June 30, 2011, compared to approximately $119.5 million for the same period in 2010 due to increases in transaction commissions and related costs paid to our brokerage professionals of $12.0 million offset by decreases in reimbursable salaries, wages and benefits of $10.7 million. Other compensation costs increased by $2.5 million as a result of $3.9 million in costs incurred to support growth initiatives of which $2.9 million related to the appraisal business and the remainder related to new offices and product lines primarily in the brokerage business partially offset by decreases as a result of managements cost saving efforts. In addition, share-based compensation decreased $2.1 million as a result of fully vested restricted stock and phantom stock awards. The following table summarizes compensation costs by segment for the periods indicated. We expect transaction commissions and related costs as a percentage of revenue in the Transaction Services segment to be approximately 5% higher than historical levels as a result of retention programs which have been put in place through the close of a strategic transaction.
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Grubb & Ellis Co. has a market cap of $37.82 million; its shares were traded at around $0.59 with and P/S ratio of 0.07.
Highlight of Business Operations:
We reported revenue of $138.0 million for the three months ended June 30, 2011, compared with revenue of $127.1 million for the same period in 2010. The increase was primarily the result of an increase in Transaction Services revenue of $18.1 million and an increase in Investment Management revenue of $5.0 million offset by a decrease in Management Services revenue of $12.2 million. The increase in our Investment Management revenue resulted from more acquisitions in 2011, as $180.7 million of acquisitions were sourced in the second quarter of 2011 compared to $46.8 million of acquisitions in the second quarter of 2010. The increase in our Transaction Services revenue can be attributed to increased sales and appraisal transactions. The decrease in our Management Services revenue as compared to the prior year period is primarily attributed to a decrease in reimbursable revenue.The net loss attributable to Grubb & Ellis Company for the second quarter of 2011 was $14.3 million and included non-cash charges of $2.0 million for depreciation and amortization, $2.6 million of charges for bad debt, $0.7 million of share-based compensation and $1.4 million for amortization of signing bonuses. In addition, the second quarter results included approximately $0.1 million of severance and other charges. After the accrual of preferred stock dividends of $2.9 million, the net loss attributable to Grubb & Ellis Company common shareowners for the three months ended June 30, 2011 was $17.2 million, or $0.26 per diluted share.
We reported revenue of $250.2 million for the six months ended June 30, 2011, compared with revenue of $243.4 million for the same period in 2010. The increase was primarily the result of an increase in Transaction Services revenue of $26.3 million and an increase in Investment Management revenue of $6.1 million offset by a decrease in Management Services revenue of $25.6 million. The increase in our Investment Management revenue resulted from more acquisitions in 2011, as $218.0 million of acquisitions were sourced in 2011 compared to $60.2 million of acquisitions in 2010. The increase in our Transaction Services revenue can be attributed to increased sales, leasing and appraisal transactions. The decrease in our Management Services revenue as compared to the prior year period is primarily attributed to a decrease in reimbursable revenue.
The net loss attributable to Grubb & Ellis Company for the six months ended June 30, 2011 was $32.6 million and included non-cash charges of $4.1 million for depreciation and amortization, $3.8 million of charges for bad debt, $2.4 million of share-based compensation and $3.1 million for amortization of signing bonuses. In addition, the six month results included approximately $1.0 million of severance and other charges. After the accrual of preferred stock dividends of $5.8 million, the net loss attributable to Grubb & Ellis Company common shareowners for the six months ended June 30, 2011 was $38.4 million, or $0.58 per diluted share.
Transaction Services revenue increased $18.1 million, or 33.2%, to $72.8 million for the three months ended June 30, 2011, compared to $54.7 million for the same period in 2010 due to increased sales transaction volume and values as a result of increased broker productivity and the recovering real estate market. Leasing activity represented approximately 59% of the total sales and leasing revenue of $56.9 million in 2011, while sales accounted for 41% of total sales and leasing revenue. In 2010, the revenue breakdown was 72% leasing, and 28% sales of total sales and leasing revenue of $47.7 million. As of June 30, 2011, we had 943 brokers in owned offices, down from 1,006 as of December 31, 2010. Other revenue was $15.9 million and $7.0 million for the three months ended June 30, 2011 and 2010, respectively, and includes $4.8 million of revenue for the three months ended June 30, 2011 related to our appraisal and valuation business compared to $0.9 million of revenue in the prior year period. Appraisal and valuation revenue increased approximately 78% sequentially from the first quarter of 2011 of $2.7 million as a result of the launch of our new Landauer appraisal business late in the third quarter of 2010.
Compensation costs increased approximately $1.7 million, or 1.4%, to $121.2 million for the three months ended June 30, 2011, compared to approximately $119.5 million for the same period in 2010 due to increases in transaction commissions and related costs paid to our brokerage professionals of $12.0 million offset by decreases in reimbursable salaries, wages and benefits of $10.7 million. Other compensation costs increased by $2.5 million as a result of $3.9 million in costs incurred to support growth initiatives of which $2.9 million related to the appraisal business and the remainder related to new offices and product lines primarily in the brokerage business partially offset by decreases as a result of managements cost saving efforts. In addition, share-based compensation decreased $2.1 million as a result of fully vested restricted stock and phantom stock awards. The following table summarizes compensation costs by segment for the periods indicated. We expect transaction commissions and related costs as a percentage of revenue in the Transaction Services segment to be approximately 5% higher than historical levels as a result of retention programs which have been put in place through the close of a strategic transaction.
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