X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWTOWN SQUARE, PA-GMH Communities Trust has reported a loss of $4.3 million for the quarter ended Sept. 30, compared with a net loss of $32,000 for the previous third quarter. Revenues went the other way, reaching $73.6 million in the most recent quarter, compared with $65.1 million for third quarter a year ago. Funds from operations fell in third quarter to $2.5 million, down from $8.3 million in the same quarter the prior year.

Expenses of $1.8 million related to an internal audit committee investigation and a special committee negatively impacted both quarterly income and FFO. So far this year, the audit investigation and committee has cost the locally based military and student housing REIT $6.7 million.

As GlobeSt.com previously reported, the investigation and formation of the special committee began this March, prompted by an allegation of “tone at the top” problems and “material weaknesses” in controls over financial reporting. The special committee is exploring strategic alternatives, including a sale of all or part of the company. Gary Holloway Sr., president, chairman and CEO, has said he would not buy the company but was open to participation in a buyout.

During the third quarter, the student housing division had a net loss of $3.7 million on total revenues of $48.6 million, compared with a third-quarter 2005 loss of $1 million on revenues of $37.3 million. Revenues from same-store student housing properties, those in the portfolio for 12 months, were relatively unchanged, but same-store operating expenses rose 16.6%. The increase was attributed to higher utility, payroll, repair and maintenance expenses along with bad debt from uncollected rents.

Net income from the military housing business segment inched up to $2.9 million on revenues of $25 million in third quarter. This compares with net income of $2.6 million on approximately $27.8 million in revenues in third quarter 2005.

GMH did not hold a third-quarter conference call. The quarterly and nine-month data was provided in a statement in which management said it would announce the date and time of a conference call. The statement also said GMH would not provide guidance for 2006 and 2007, pending completion of the special committee’s process.

By midday Nov. 14, GCT common stock was trading on the NYSE at $13.36 a share. The 52-week high of $17.10 occurred this March 1, prior to the audit committee investigation, and the 52-week low of $10.75 a share occurred the following April 13.

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?

Dig Deeper

 

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.