Grubb & Ellis Reports Yearly, Quarterly Losses

SANTA ANA, CA-Grubb & Ellis Co. lost $330.9 million in 2008, most of it in the fourth quarter, and lost $41.5 million for the first quarter of this year, the company reported Thursday. It reported full-year 2008 earnings and first-quarter 2009 earnings on the same day because the filing of its full-year financial report was delayed in order to restate certain items to correct accounting errors in connection with its 2007 merger with NNN Realty Advisors.

 As interim CEO Gary Hunt commented during the company’s earnings conference call yesterday, the company is operating in “one of the weakest transaction markets in decades,” a fact that is reflected in the declining Grubb & Ellis revenues in that category. Hunt also noted that first-quarter vacancy rates increased in all four main property types in the first quarter–office, industrial, retail and multifamily–while “Drivers of demand for each property type all weakened in response to the recession.”

Looking forward, Hunt said that although some of the stock market’s recent rallies were encouraging, and although some economists are saying that the recession could end late this year, no viable signs of recovery are visible in the commercial real estate markets yet.”We are not counting on any short-term relief,” the Grubb & Ellis interim CEO said.