SAN DIEGO-Real estate investment trust Burnham Pacific Properties lost $1.1 million in the third quarter, as revenues fell and the company took over charges associated with its planned liquidation.

The company took a $1.1 million loss, or a negative four cents per share, in funds from operations for the quarter ending Sept. 30.That compares to $7.3 million in black ink, or $0.23 per share, for the same quarter last year. Revenues were $31.5 million during the third quarter of 2000, compared with $31.6 million in the third quarter of 1999.

The decline in FFO was due in part to lower revenues, which resulted from asset sales, a decrease in some fee income and an increase in borrowing costs. Burnham Pacific expects these factors will “continue to impact the company’s operating results,” the company says in a statement issued Wednesday.

A myriad of legal and financial problems hurt Burnham’s bottom line in the third quarter, during which the embattled REIT’s board of directors decided to liquidate the company after a running battle with dissident investors over the value of the publicly traded firm.

The company also paid $3.3 million for consulting and legal fees duringthe third quarter and wrote off $32.3 million in connection with the company’s recently announced plan to liquidate. Burnham took a restructuring hit of $2.1 million for severance and related costs for employees affected by the company’s decision to end a joint venture with the California Public Employees Retirement System. This was in addition to a severance expense of $1.6 million associated with the resignation of the former CEO and litigation expenses of $977,000, resulting from a recent verdict against the company in favor of a tenant.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.