Pacific Gulf Properties Reports Increased Earnings for Third Quarter and Year-to-Date

ORANGE COUNTY, CA-Pacific Gulf Properties Inc. (NYSE:PAG) reported third-quarter earnings of $17,103,000 or $0.71 a share. Those earnings, known as Funds From Operations (FFO), are a 15% increase per share over the same quarter in 1999.

For the first three quarters of the year, the Newport Beach-based REIT’s FFO increased 13% over the first nine months of last year to $49.254 million. The gain in both cases was attributed mainly to same-store rents on the REIT’s portfolio of industrial and multifamily properties, including rental housing for seniors.

Net operating income for the third quarter, calculated as gross rental income less rental operating expenses, equaled $27 million on revenues of $35 million, a 13% increase from net operating income reported for the same period last year. For the first nine months of the year net operating income was $78 million on revenue of $102 million, also a 13% increase from a year ago.

During the third quarter PAG completed industrial facility leases totaling 736,000 sf, generating a 20% increase in effective rents over ending rates on expired leases. Industrial properties generated 82% of the REIT’s net operating income for both the quarter and the first nine months of the year. Industrial same-store net operating income increased 9% over 1999, while multifamily same-store net operating income increased 16% from a year ago.

As of September 30, the occupancy rate for both the industrial and multifamily properties in the REIT’s portfolio was 97%. At the end of the third quarter the REIT owned 12.1 million sf of industrial space, and 3,069 multifamily units, of which 1,438 are in rental communities for active older adults, aged 55 and older.