One day prior to release of its third-quarter financial results, GMH announced that it had settled a class-action shareholders lawsuit and related litigation. Without disclosing the amount of the settlement, GMH said a "substantial portion" was covered by insurance and its net charges, including a portion of the settlement and legal fees, would total $2.2 million in this year's first nine months.

During the third-quarter conference call, Gary Holloway Sr., president, chairman and CEO, said, "we were prepared to vigorously defend ourselves," but felt the settlement would have minimum impact to FFO. All claims have been dismissed without admission or presumption of liability or wrongdoing.

While the company continues to revamp its student housing portfolio through dispositions, joint-venture partnerships and intensified management, the net loss in that division for the quarter fell to $7.4 million, based on revenue of $45.8 million. That compares with a net loss of $6.9 million on revenue of $41.3 million in the same quarter a year ago.