FORT WORTH-Crescent Real Estate Equities Co. enjoyed a Texas-sized turnaround in net income during the third quarter, compared with the same period in 2004. The company's net income available to common shareholders in the third quarter was $71.6 million, or 71 cents per diluted share, according to a 8-K report filed with the Securities and Exchange Commission. This compares to a net loss of $18.7 million, or a negative 19 cents per diluted share for the three months ended Sept. 30, 2004.

Net income available to common shareholders for the first nine months of the year was $48.8 million, or 49 cents per diluted share. This is compared to net loss available to common shareholders of negative $54.8 million, or a negative 55 cents per share for first nine months of 2004.

FFO adjusted to exclude impairment charges and debt extinguishment charges related to the sale of real estate assets, was $22.8 million, compared to $31.3 million last year, representing a 27% drop. That equates to 19 cents per share for the third quarter, almost a 30% drop from the 27 cents per share, for the third quarter 2004.

FFO as adjusted for the first nine months, was $84.8 million, or 72 cents per share and equivalent unit, compared to $89.9 million, or 77 cents per share and equivalent unit, for the nine months ended Sept. 30, 2004.

John C. Goff, vice chairman and CEO of Crescent, says he is pleased that the third-quarter earnings were "better than our expectations." He says the quarter was highlighted by the sale of three office properties totaling 770,000 sf, for which the company recorded a net gain exceeding $105 million. "We expect to see material accretion to earnings upon reinvestment of those proceeds," Goff says.

On Oct. 14, Crescent announced its board declared cash dividends of nearly 38 cents per share for its Common Shares, 42 cents per share for its Series A Convertible Preferred Shares, and 59 cents per share for its Series B Redeemable Preferred Shares. The dividends are payable Nov. 15 to shareholders of record on Oct. 31. Crescent owns and manages, through its subsidiaries and joint ventures, 31.3 million sf as of Sept. 30, including 14.9 million sf of office properties in unconsolidated joint ventures and 500,000 sf in consolidated joint ventures.

"In the third quarter, Crescent's portfolio experienced overall positive absorption, ending the quarter at 89.7% leased," says Denny Alberts, president and chief operating officer. "Consistent with original expectations, we anticipate ending the year at 90% leased. From a rollover standpoint, a total of 5.3 million gross sf of leases was anticipated to expire in 2005. To date, 89% of that expiring space has been addressed--87% by signed leases and 2% by leases in negotiation."