Pacific Office Properties, which finalized the sale of the Clifford Center in January amid continued downsizing in its portfolio, narrowed its loss 9.9 percent in the first quarter.
The Honolulu-based real estate investment trust said in a regulatory filing Friday that it lost $3.3 million in the January-March period compared with $3.7 million in the year-earlier quarter. Revenue edged up 1.5 percent to $11.1 million from $10.9 million.
Pacific Office, which at one time owned 24 properties, has been selling buildings in recent years to survive and now owns only six properties.
Among the latest sales was the Clifford Center in downtown Honolulu. It was bought for $8.9 million by local real estate firm U. Yamane Ltd. Pacific Office’s net proceeds from the sale, after repaying the related mortgage loans and transaction-related expenses, were about $2.1 million.
Pacific Office, which uses Shidler Pacific Advisors to provide personnel resources for current and prospective businesses, said effective Jan. 1 that the advisory firm agreed to reduce the corporate management fee payable by Pacific Office to $180,000 per quarter from $210,000 per quarter.
"We are focused on ensuring our properties are operating as efficiently as possible," Pacific Office said in its filing. "We have taken steps to identify opportunities to reduce discretionary operating costs wherever possible and at the same time maintaining the quality of our buildings and the integrity of our management services. We have no employees and rely upon our advisor to provide substantially all of our day-to-day management."
Pacific Office was formed in 2008 by local real estate investor Jay Shidler as a firm with publicly traded stock and an ambitious growth plan. But the firm sold or lost most of its buildings to foreclosure in recent years in the wake of the recession.
Of Pacific Office’s six remaining properties, three are in Honolulu and wholly owned: Waterfront Plaza, Davies Pacific Center and the Pan Am Building. The three properties comprise 1.2 million rentable square feet.
As of March 31 those properties were 85.9 percent leased, with approximately 157,200 square feet available, under a total of 325 leases.
Three other properties are owned through joint ventures in which Pacific Office has a 5 percent stake. These buildings include one in Honolulu at 1833 Kalakaua Ave., one in Los Angeles and one in Phoenix.
