Q3 Profit, FFO Decline for Glenborough Realty Trust

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SAN MATEO, CA-Glenborough Realty Trust on Thursday reported a drop in profit and Funds From Operations during the third quarter despite improved performance in its 8.3-million-sf, 45-property portfolio. The locally headquartered office REIT in August agreed to be acquired by a Morgan Stanley Real Estate affiliate in a transaction valued at $1.9 billion ($26 per share plus debt assumption).

Glenborough’s net income for the third quarter of 2006 was $11.5 million, or $0.36 per diluted common share, which is less than half the $26.8 million or $0.74 per share generated during the third quarter of 2005. The decline in net income is being attributed primarily to fewer gains on sales of the company’s properties. The company reported $13.9 million in net gains from property sales during the third quarter of 2006 compared to $27.6 million in net gains in the third quarter of 2005.