DENVER-AmeriVest Properties Inc. reports in its recent 8-K filing with the Securities and Exchange Commission that its third-quarter net loss totaled $5.43 million, down from a $1.3-million profit a year earlier. The loss represents a 76% fall. Its loss per share rose to 23 cents from 5 cents, a 78.3% increase. Its FFO for the third quarter were a negative $849,000, or a negative 4 cents per share, compared to $2.35 million, or 10 cents per share for the same period in 2004.

In the first nine months of the year, AmeriVest's FFO totaled about $2.92 million, or 12 cents per share, compared to $7.03 million, or 32 cents per share, in the first nine months of 2004. The net loss recognized by the company in the first nine months was $11.1 million, or 46 cents per share, in 2004, compared to $2.2 million, or 10 cents per share, in 2004.

Unusual charges incurred during the quarter include: $2.7 million, or 11 cents per share, on the company's real estate assets, $421,000 of which is attributable to its Panorama joint venture interest; and approximately $213,000 one cent per share, in general and administrative costs related to severance and non-cash compensation charges. General and administrative costs for the quarter also include $77,000 related to Sarbanes-Oxley compliance and $48,000 related to the company's strategic alternative review, for a total of 1 cent per share.

Rental revenue from continuing operations not including properties held for sale in the third quarter of 2005 increased $1.5 million or 21% compared to the prior year period due primarily to the company's 2004 acquisitions. The third quarter 2005 results include the operating impact from the acquisitions of Parkway Centre III in September 2004 and Hampton Court in November 2004. Revenue for the quarter also increased by approximately $248,000 in properties held for the entire period in both 2004 and 2005, mainly due to increases in occupancy from the prior year.

Third quarter 2005 property operating expenses including real estate taxes for continuing operations increased by $217,000 or 7.1% compared to the same period in 2004 due primarily to the company's growth and increases in property taxes and utility costs. This increase is net of approximately $160,000 of ground lease expense in the third quarter of 2004 that was eliminated when it purchased the Greenhill Park land in December 2004.

General and administrative expenses decreased approximately $24,000, or 2.2%, for the third quarter of 2005 compared with the same period in 2004. Quarterly G&A costs as a percent of revenue related to continuing operations decreased from 15.6% in 2004 to 12.6% in 2005; as a percent of total revenue, it decreased from 9.7% to 9%. AmeriVest notes it is implementing and has additional plans to for cost-cutting measures, including the elimination of certain corporate positions, which are expected to affect bottom-line results in future quarters.

Interest expense for the quarter including discontinued operations increased approximately $1.1 million, or 35%, during the third quarter of 2005 as compared to the same period of 2004, primarily due to increased borrowings for acquisitions and working capital and an increase in interest rates on the company's variable rate debt.

Total occupancy increased to 89.6% from 88.3% at Dec. 31, 2004 and from 89.4% at June 30. For properties classified as continuing operations, occupancy at Sept. 30, were 91.4% versus 90.8% at December 31, 2004. The average rental rate per sf to date for properties not held for sale has increased from an average of $19.97 at the beginning of the year to $20.26 at Sept. 30. Current quarter-end occupancy results include approximately 53,000 sf that at is leased but not yet occupied.