The San Mateo-based REIT spent the quarter completing its refocusing on multi-tenant office. On June 30, it sold its 1.3-million-sf industrial portfolio located at Gateway Business Park in Denver for $68 million and used the proceeds to acquire 99 Summer Street, a 271,980-sf, class A office building in Downtown Boston on July 22 for $68.3 million, including a new $45-million 10-year mortgage at 4.83% from a life insurance company. Office properties now comprise 94% of the company's net operating income.

After one-time charges related to the refocusing -- which included $5.4 million of loan prepayment charges related to the sale of the industrial portfolio and $3.9 million related to the disposition of the company's leased aircraft -- FFO in the second quarter was $8.6 million or $0.28 per diluted common share.

"These two transactions represent a continuation of Glenborough's strategy to divest non-core land and industrial assets and concentrate on high quality multi-tenant office buildings," says Andrew Batinovich, Glenborough's co-founder, president, director and now CEO as well. "We will continue to focus our efforts on acquiring high-quality, hard to replace assets in supply constrained locations while maintaining our low risk multi-tenant discipline. In addition, decreasing the amount of resources allocated to our development portfolio and investing in operating properties will position the company for growth going forward."