MPG Office Trust posts second-quarter profit of $67.3 million
MPG Office Trust Inc., the largest office landlord in downtown Los Angeles, turned a profit in the second quarter as the company settled some large debts.
The Los Angeles real estate investment trust — which also owns buildings in Glendale, Pasadena and Cerritos — continued to let go of properties that were heavily encumbered with debt while hanging on to most of its trophy buildings in L.A.’s financial district.
MPG finished the quarter ended June 30 with net income of $67.3 million, or $1.32 a share, down 43% compared with $118.4 million, or $2.42, in the same period of 2011. Revenue was $70.3 million, down 9%.
The company has been stockpiling cash and had $193.8 million in reserves as of June 30, of which $166.5 million was unrestricted.
“It was a typical quarter in which MPG managed to build or maintain cash while jettisoning properties that drained cash,” said analyst Craig Silvers, president of Bricks & Mortar Capital.
Funds from operations, a key measure for real estate investment trusts, were $71.4 million, or $1.38 a share, compared to $99.7 million, or $1.99, a year earlier.
Shares of MPG closed down 10 cents at $2.33 before earnings were released.
