Santa Ana-based real estate brokerage and investor Grubb & Ellis Co. posted a first quarter net loss of $41.5 million on Thursday, up from a net loss of $6.3 million a year earlier, thanks in large part to continued weakness in the commercial real estate sector.
Total revenue for the company declined to $118.3 million in the first quarter, a 21% drop from a year earlier.
Grubb & Ellis?transaction services business, which includes its brokerage operations, took the biggest hit last quarter. That business line saw revenue fall to $33.5 million in the first quarter, compared to $59.1 million a year earlier.
On a year-over-year basis, the company? leasing revenue decreased by 18%, while investment sales revenue declined by 72%, Grubb & Ellis said.
The company? management services operations, which include its property management business, fared better in the quarter, increasing to $65.5 million for the first quarter, up from $61.8 million a year earlier.
Grubb & Ellis?shares were down about 5% at close of trading. The company counts a market value of about $55 million, which is down about 80% in the past year.
The latest results ?eflect the challenging operating environment as well as the seasonal nature of the commercial real estate industry,?said Gary Hunt, the firm? interim chief executive, in a statement.
