NEWTOWN SQUARE, PA-Overall third-quarter net income for locally based GMH Communities Trust reached $4.4 million, compared with a net loss of $4.3 million in the prior-year quarter. FFO rose to $7.6 million versus $2.5 million for third quarter 2006.

One day prior to release of its third-quarter financial results, GMH announced that it had settled a class-action shareholders lawsuit and related litigation. Without disclosing the amount of the settlement, GMH said a “substantial portion” was covered by insurance and its net charges, including a portion of the settlement and legal fees, would total $2.2 million in this year’s first nine months.

During the third-quarter conference call, Gary Holloway Sr., president, chairman and CEO, said, “we were prepared to vigorously defend ourselves,” but felt the settlement would have minimum impact to FFO. All claims have been dismissed without admission or presumption of liability or wrongdoing.

While the company continues to revamp its student housing portfolio through dispositions, joint-venture partnerships and intensified management, the net loss in that division for the quarter fell to $7.4 million, based on revenue of $45.8 million. That compares with a net loss of $6.9 million on revenue of $41.3 million in the same quarter a year ago.

Net income in the military housing division rose to $6.6 million on total revenue of $10 million for the quarter ended Sept. 30. This compares with a third-quarter 2006 net revenue of $5.1 million on revenue of $7.7 million. In addition to projects previously obtained, the division has four potential additional military housing privatization project opportunities under review, including opportunities to acquire some from competitors.

During a conference call, without identifying those opportunities, Bruce Robinson, president of the division, said, “certain competitors are experiencing some operational challenges.” The company now has housing initiatives underway at 37 bases for an aggregate of more than 25,000 units.

“Military exceeded our expectations,” Holloway said. “It continued to hit the ball out of the park. The investor community fails to recognize the value of this sector,” he added. He later reiterated his contention that “military housing is a stabilizing force,” and, pointing to the trading level of the company’s common stock, again said, “we need to stress how valuable it is.”

On the day of the conference call, however, GCT common stock fell to a new 52-week low of $6.81 a share and hovered within pennies of that low during Nov. 6 trading. It compares with a 52-week high of $13.96 a share on Nov. 7, 2006.

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?


NOT FOR REPRINT

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

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

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