GMH Communities Trust's Q3 Losses Mount

NEWTOWN SQUARE, PA-GMH Communities Trust has reported a loss of $4.3 million for the quarter ended Sept. 30, compared with a net loss of $32,000 for the previous third quarter. Revenues went the other way, reaching $73.6 million in the most recent quarter, compared with $65.1 million for third quarter a year ago. Funds from operations fell in third quarter to $2.5 million, down from $8.3 million in the same quarter the prior year.

Expenses of $1.8 million related to an internal audit committee investigation and a special committee negatively impacted both quarterly income and FFO. So far this year, the audit investigation and committee has cost the locally based military and student housing REIT $6.7 million.

As GlobeSt.com previously reported, the investigation and formation of the special committee began this March, prompted by an allegation of “tone at the top” problems and “material weaknesses” in controls over financial reporting. The special committee is exploring strategic alternatives, including a sale of all or part of the company. Gary Holloway Sr., president, chairman and CEO, has said he would not buy the company but was open to participation in a buyout.