Glenborough Realty Continues Transformation in Q2

SANMATEO, CA-Glenborough Realty Trust Inc. on Tuesday reported second quarter FFO of $17.9 million, or $0.58 per share before one-time charges, beating analyst estimates by $0.03 per share. In the second quarter of 2002, FFO was $19 million or $0.61 per diluted common share. Net income in the second quarter of 2003 was $5.3 million, or $0.19 per diluted common share, which compares with $6.8 million or $0.24 per share for the second quarter of 2002.

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.