In elaborating on the initiatives to improve value and performance, announced in a Dec. 18 statement, Gary Holloway Sr., president, chairman and CEO, said the company had identified 25 properties within its 75-property student housing portfolio that it expected to sell or joint venture. "It will come down to between nine and 10 we'll sell and six or seven to JVs," he said.

Another nine under performing student housing assets have been identified as "focus properties," the company intends to fix by fall 2007. Key to the fix is a shift to regional management and better local control. John DeRiggi, who was appointed president of the student housing division five months ago, estimated the total cost at about $2 million in personnel and systems replacement.

Asked about anticipated expenses related to the class action lawsuits that have been filed against the company, CFO Pat O'Grady said the company would accrue up to the $500,000 insurance deductible, plus everything above $25 million. Asked what could be anticipated in executive compensation, Holloway said he had not taken a bonus this year and would not take one in 2007.

Holloway closed the conference call by acknowledging, "It's been a tough year for GMH and a tough year for our investors. We'll make sure we right the ship. Stick with us. We'll prove we do know how to operate this business."

GCT stock on the NYSE fell to a new 52-week low of $10.46 a share following the Dec 20 call. This compares with a 52-week high of $17.10 a share this March 1, prior to an internal investigation and appointment of the special committee.

Instant Insights /

Contrite GMH Vows to 'Right the Ship'

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