Shares of Maguire Properties Inc. rose 38 percent on Tuesday, a day after the Los Angeles office landlord reported a large third quarter loss, in part because of lower rental income from selling buildings.
The Los Angeles real estate investment trust, which has been hurt by lower rents and higher vacancies, reported after Monday's market close a net loss of $72.5 million (-1.52 per share), compared with net income of $81.7 million ($1.74) a year ago.
The company saw a loss in funds-from-operations (FFO) a more accurate industry measure that removed the impact of depreciation of $20.2 million (42 cents) compared with a $2.7 million loss (-6 cents) a year ago.
Before one-time items, the company had FFO of $1.8 million (4 cents), less than the 9 cents expected by analysts surveyed by Reuters Estimates.
Maguire, which acquired properties near the top of the Southern California real estate boom, has been selling off the less productive of those properties and refinancing others. Some of its largest tenants in Los Angeles and Orange counties had been mortgage brokers and other businesses devastated by the real estate downturn.
"These have been very, very challenging times for all of us for our economy in general and our sector in specific" said Chief Executive Nelson Rising during a conference call with analysts. "But we've tried to remain very focused on several important initiatives we started when I became CEO of Maguire in May."
Maguire shares shares closed up $1.15, or 38 percent, to $4.14 in Tuesday trading on the New York Stock Exchange. The company's share price has plunged 90 percent from last December's 52-week high.
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