Grubb & Ellis Company (GBE, Financial) filed Quarterly Report for the period ended 2011-09-30.
Grubb & Ellis Co. has a market cap of $26.3 million; its shares were traded at around $0.376 .
Transaction Services revenue increased $8.4 million, or 14.0%, to $68.3 million for the three months ended September 30, 2011, compared to $59.9 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 65% of the total sales and leasing revenue of $54.5 million in 2011, while sales accounted for 35% of total sales and leasing revenue. In 2010, the revenue breakdown was 67% leasing, and 33% sales of total sales and leasing revenue of $53.8 million. As of September 30, 2011, we had 871 brokers in owned offices, down from 1,006 as of December 31, 2010. Other revenue was $13.8 million and $6.1 million for the three months ended September 30, 2011 and 2010, respectively, and includes $5.9 million of revenue for the three months ended September 30, 2011 related to our appraisal and valuation business compared to $0.7 million of revenue in the prior year period. Appraisal and valuation revenue increased approximately 22.9% sequentially from the second quarter of 2011 of $4.8 million.
Compensation costs increased approximately $0.6 million, or 0.5%, to $121.4 million for the three months ended September 30, 2011, compared to approximately $120.8 million for the same period in 2010 due to increases in transaction commissions and related costs paid to our brokerage professionals of $2.5 million offset by decreases in reimbursable salaries, wages and benefits of $7.6 million. Other compensation costs increased by $0.5 million as a result of $2.8 million in costs incurred to support growth initiatives of which $2.6 million related to the appraisal business and the remainder related to new offices and product lines primarily in the brokerage business, partially offset by managements cost saving efforts. In addition, severance, retention and related charges increased by $6.0 million due to retention charges of $6.9 million offset by a decrease in severance charges of $0.9 million. Share-based compensation decreased $0.8 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 in the fourth quarter of 2011 as a result of retention programs which have been put in place through the close of a strategic transaction.
Transaction Services revenue increased $34.8 million, or 22.2%, to $191.6 million for the nine months ended September 30, 2011, compared to $156.8 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 64% of the total sales and leasing revenue of $153.8 million in 2011, while sales accounted for 36% of total sales and leasing revenue. In 2010, the revenue breakdown was 71% leasing, and 29% sales of total sales and leasing revenue of $134.3 million. As of September 30, 2011, we had 871 brokers in owned offices, down from 1,006 as of December 31, 2010. Other revenue was $37.8 million and $22.5 million for the nine months ended September 30, 2011 and 2010, respectively, and includes $13.3 million of revenue for the nine months ended September 30, 2011 related to our appraisal and valuation business compared to $2.5 million of revenue in the prior year period. Appraisal and valuation revenue has been steadily increasing as a result of the launch of our new Landauer appraisal business late in the third quarter of 2010.
Compensation costs decreased approximately $6.5 million, or 1.8%, to $352.0 million for the nine months ended September 30, 2011, compared to approximately $358.5 million for the same period in 2010 due to decreases in reimbursable salaries, wages and benefits of $29.1 million offset by increases in transaction commissions and related costs paid to our brokerage professionals of $17.3 million as a result of increased sales activity. Other compensation costs increased by a net $3.9 million as a result of approximately $10.3 million in costs incurred to support growth initiatives of which $8.1 million related to the appraisal business and the remainder related to new offices and product lines primarily in the brokerage business, partially offset by managements cost saving efforts. In addition, severance, retention and related charges increased by $5.7 million due to retention charges of $8.5 million offset by a decrease in severance charges of $2.8 million. Share-based compensation decreased $4.3 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 in the fourth quarter of 2011 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 $26.3 million; its shares were traded at around $0.376 .
Highlight of Business Operations:
We reported revenue of $378.9 million for the nine months ended September 30, 2011, compared with revenue of $372.4 million for the same period in 2010. The increase was primarily the result of an increase in Transaction Services revenue of $34.7 million and an increase in Investment Management revenue of $5.6 million offset by a decrease in Management Services revenue of $33.8 million. The increase in our Investment Management revenue resulted from more acquisitions in 2011, as $237.3 million of acquisitions were closed in 2011 compared to $138.0 million of acquisitions in 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.Transaction Services revenue increased $8.4 million, or 14.0%, to $68.3 million for the three months ended September 30, 2011, compared to $59.9 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 65% of the total sales and leasing revenue of $54.5 million in 2011, while sales accounted for 35% of total sales and leasing revenue. In 2010, the revenue breakdown was 67% leasing, and 33% sales of total sales and leasing revenue of $53.8 million. As of September 30, 2011, we had 871 brokers in owned offices, down from 1,006 as of December 31, 2010. Other revenue was $13.8 million and $6.1 million for the three months ended September 30, 2011 and 2010, respectively, and includes $5.9 million of revenue for the three months ended September 30, 2011 related to our appraisal and valuation business compared to $0.7 million of revenue in the prior year period. Appraisal and valuation revenue increased approximately 22.9% sequentially from the second quarter of 2011 of $4.8 million.
Compensation costs increased approximately $0.6 million, or 0.5%, to $121.4 million for the three months ended September 30, 2011, compared to approximately $120.8 million for the same period in 2010 due to increases in transaction commissions and related costs paid to our brokerage professionals of $2.5 million offset by decreases in reimbursable salaries, wages and benefits of $7.6 million. Other compensation costs increased by $0.5 million as a result of $2.8 million in costs incurred to support growth initiatives of which $2.6 million related to the appraisal business and the remainder related to new offices and product lines primarily in the brokerage business, partially offset by managements cost saving efforts. In addition, severance, retention and related charges increased by $6.0 million due to retention charges of $6.9 million offset by a decrease in severance charges of $0.9 million. Share-based compensation decreased $0.8 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 in the fourth quarter of 2011 as a result of retention programs which have been put in place through the close of a strategic transaction.
Transaction Services revenue increased $34.8 million, or 22.2%, to $191.6 million for the nine months ended September 30, 2011, compared to $156.8 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 64% of the total sales and leasing revenue of $153.8 million in 2011, while sales accounted for 36% of total sales and leasing revenue. In 2010, the revenue breakdown was 71% leasing, and 29% sales of total sales and leasing revenue of $134.3 million. As of September 30, 2011, we had 871 brokers in owned offices, down from 1,006 as of December 31, 2010. Other revenue was $37.8 million and $22.5 million for the nine months ended September 30, 2011 and 2010, respectively, and includes $13.3 million of revenue for the nine months ended September 30, 2011 related to our appraisal and valuation business compared to $2.5 million of revenue in the prior year period. Appraisal and valuation revenue has been steadily increasing as a result of the launch of our new Landauer appraisal business late in the third quarter of 2010.
Compensation costs decreased approximately $6.5 million, or 1.8%, to $352.0 million for the nine months ended September 30, 2011, compared to approximately $358.5 million for the same period in 2010 due to decreases in reimbursable salaries, wages and benefits of $29.1 million offset by increases in transaction commissions and related costs paid to our brokerage professionals of $17.3 million as a result of increased sales activity. Other compensation costs increased by a net $3.9 million as a result of approximately $10.3 million in costs incurred to support growth initiatives of which $8.1 million related to the appraisal business and the remainder related to new offices and product lines primarily in the brokerage business, partially offset by managements cost saving efforts. In addition, severance, retention and related charges increased by $5.7 million due to retention charges of $8.5 million offset by a decrease in severance charges of $2.8 million. Share-based compensation decreased $4.3 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 in the fourth quarter of 2011 as a result of retention programs which have been put in place through the close of a strategic transaction.
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