Maguire operating funds reflect loss

Maguire Properties Inc., a Los Angeles-based real estate investment trust, said funds from operations for the third quarter reflected a loss of $2.7 million, or 6 cents a share, compared with a profit of $21 million, or 44 cents, a year earlier.

Revenue rose 45% to $152.9 million from $105.6 million.

Maguire paid $3 billion this year for 23 office buildings in Los Angeles and Orange counties. Since then, the company’s efforts to sell some of its properties and lower debt have met with mixed results.

“This was definitely not a good quarter because of the debt burden,” analyst Craig Silvers of Bricks & Mortar Capital said. “They have to sell some properties or sell the company.”

Maguire has been hurt by turmoil in the credit markets, which has limited the ability of potential buyers to close deals, Silvers said.

Funds from operations, a key measure of operating performance, were affected by a $13.4-million charge from early extinguishment of debt, Maguire said. Excluding that, funds from operations would have been 19 cents a share, short of the 26 cents predicted by Wall Street analysts.

Maguire shares gained 34 cents to $26.25, but they have dropped 34% this year.

-- Roger Vincent