[IMGCAP(2)]The REIT reported net income of $5.9 million and 10 cents per diluted earnings per share, compared with $12.1 million and 23 cents per share for the first quarter of 2009, and diluted FFO per share of 53 cents, compared to 67 cents for the first quarter 2009.

"We indicated previously that 2010 would be a challenging year for the industry since the real estate sector lags the economy. Our first quarter results reflect those challenges," Griffin said in a prepared statement regarding the company's results.

[IMGCAP(3)]In Santa Monica, CA, Pacific Office Properties Trust―which during the quarter commenced the offering of up to $400 million of senior common stock and named two new senior executives―reported higher FFO and adjusted FFO as well as steady leasing activity that took the company's portfolio to 84.4% leased at March 31. In addition, the company noted a slight increase in annualized rent per square foot, from $27.33 at Dec. 31 to $27.79 at March 31.

The FFO for the quarter was $1.22 million and seven cents per diluted sahre, compared with $1.16 million and seven cents per diluted share for the comparable quarter last year. The new execs were James R. Ingebritsen, president and CEO; and James R. Wolford, CFO.

Ingebritsen, commenting on the results in a prepared statement, said: "We are pleased to report another quarter of solid results in spite of the continued challenging commercial real estate market conditions. Our performance underscores the benefit of our Honolulu-centric portfolio, a geography that continues to outperform the broader markets. We were very encouraged by the strong leasing activity in the quarter, with particular areas of strength noted not just in Honolulu but also in San Diego."

Regarding the stock offering, Ingebritsen commented, "We are committed to positioning the company to capitalize on attractive investment opportunities, similar to the Seaview Corporate Center acquisition completed late last year, as a result of the continued dislocation in the office market."

Another public company reporting results was Thomas Properties Group, which showed a consolidated net loss of $2.4 million and eight cents per share, compared with a net loss of $200,000 and a penny per share in the same quarter last year. After tax cash flow totaled $4 million and 13 cents per share, compared to $2.4 million and 10 cents per share in the previous year's same quarter. The company also reported that since April 8, 2010, it had sold 4.2 million shares of its common stock at prices ranging from $3.67 to $5.03 per share in its "at the market" equity offering program. These sales resulted in net proceeds to the company of $15.3 million.

James A. Thomas, chairman and CEO, noted the company's continuing efforts torefinance mortgages as they mature and to reduce property debt balances. "We believe these efforts have resulted in the preservation of significant equity value, both in our wholly owned assets and in our TPG/CalSTRS joint venture," Thomas said in a statement. "The continuing support of our partner, the net proceeds from our registered direct offering in the fourth quarter of 2009 and the proceeds from our 'at the market' equity offering program should make it possible for us to complete the refinancing and reduce the outstanding balances of our 2010 and 2011 mortgage debt maturities, as well as to continue tomaintain and improve our portfolio."

Another Los Angeles company reporting was Kilroy Realty Corp., a REIT, which posted net income of $4.9 million and 11 cents per share versus $7.6 million and 23 cents per share in the first quarter of 2009. FFO for the period totaled $25.8 million and 57 cents per share, compared to $29 million and 82 cents per share.

KRC also reported that it has acquired one office building and agreed to acquire four additional office buildings aggregating approximately one million square feet of space in three separate transactions. The first transaction closed in mid-March and the second and third transactions are expected to close during the second quarter.

In the first transaction, KRC completed the purchase of an approximate 88,800-square-foot office building located in the Mission Valley submarket of San Diego County for approximately $18 million. The building is one of four properties in the Mission City Corporate Center office campus. In the second transaction, the company has also agreed to acquire the three remaining buildings in the campus, totaling 190,600 square feet, for approximately $52 million. The completion of this second transaction is subject to the assumption of $52 million of existing debt that is secured by the three buildings.

In athird transaction, KRC has agreed to acquire a 732,000-square-foot office project located in the South Financial District of San Francisco for approximately $237 million, subject to customary closing conditions. The company expects to fund the acquisitions from the proceeds of its recently completed 9.2 million share public equity offering and the assumption of $52 million of secured debt associated with the Mission Valley properties.

John B. Kilroy Jr., KRC's president and CEO, commented: "While commercial real estate conditions in California remain choppy, many of the state's office markets are showing signs of stability and opportunities are emerging for well-capitalized companies to acquire valuable properties at below replacement cost."

In the medical office sector, Long Beach-based HCP, a REIT that owns other types of healthcare properties as well, reported diluted FFO of $158.7 million and 54 cents per diluted share, compared to FFO of $128 million and 50 cents per diluted share in the year-ago period. Net income was $74.8 million and 25 cents per share, compared to $43.3 million and 17 cents per share.