Pacific Office Properties Trust Inc., which owns office buildings largely concentrated in downtown Honolulu, posted a $2.7 million third-quarter loss in "funds from operations," partly due to taking $1.2 million in charges related to investments in two joint ventures.
The San Diego-based company said Monday it took the charges because of uncertainty surrounding debt that will mature in the first quarter of 2012 that is secured by Arizona and Southern California properties owned by the joint ventures. The "funds from operations" loss was wider than the $2.2 million loss it had in the year-earlier quarter.
"Funds from operations" is a rough equivalent to operating income for Pacific Office Properties, which is a real estate investment trust. REITs are corporations that invest in real estate, are required to distribute 90 percent of their taxable income to investors and are exempt from most federal corporate taxes.
Pacific Office reported a narrower net loss of $1.5 million, or 39 cents a share, compared with $1.8 million, or 46 cents a share, a year ago.
Revenue fell 15.6 percent to $15.5 million from $18.3 million.
The company, like other REITs, emphasizes that funds from operations is a better reflection of financial health than net income.
Pacific Office, founded by local commercial real estate investor Jay Shidler, owns 25 office properties, mostly with joint-venture partners, that encompass 48 buildings and nearly 5 million square feet of space. The company wholly owns six properties, including five downtown.
The five wholly owned buildings are Waterfront Plaza, Davies Pacific Center, the Pan Am Building, First Insurance Center and Clifford Center. The other building it owns outright is Sorrento Technology Center in San Diego.
Among Pacific Office’s joint ventures are the Bank of Hawaii Waikiki Center and the Pacific Business News Building.
Pacific Office’s stock closed up 1.1 cents at 52.1 cents Monday on the American Stock Exchange. The financial results were announced after the market closed.
