GMH Turnaround Strategy Inches Forward

NEWTOWN SQUARE, PA-Overall third-quarter net income for locally based GMH Communities Trust reached $4.4 million, compared with a net loss of $4.3 million in the prior-year quarter. FFO rose to $7.6 million versus $2.5 million for third quarter 2006.

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.