Shares of Santa Ana-based Grubb & Ellis Co. fell last week after the real estate brokerage and investor said it likely will fall short of its earnings projections for the year and warned of a third-quarter loss.
The company said it expects to lose $3 million during the third quarter on an earnings before interest, taxes, depreciation and amortization basis.
Grubb & Ellis said it expects to report third-quarter revenue of about $144 million.
Wall Street analysts on average had been expecting sales of $152.5 million.
Grubb officials called the forecast “disappointing.”
The company’s results are due Nov. 9.
Grubb also said it doesn’t think it will achieve its previously announced 2010 EBITDA target of $10 million to $15 million.
Adjusted EBITDA for 2010 now is expected to be negative, although EBITDA for the fourth quarter should be positive, according to the company.
Officials cited lower activity in the company’s investment management division for the projected decline in 2010 earnings.
The company remains “squarely on the path” of returning to profitability in 2011, chief executive Thomas P. D’Arcy said in a statement.
The company still had $20 million of cash on its balance sheet at the end of September, and this month received an $8 million payment from a former investment trust it managed, improving Grubb’s cash position, officials said.
The company’s shares fell about 15% last week with a market value of about $80 million.
—Mark Mueller
