Santa Ana-based Grubb & Ellis Co., in its first full quarter of operations following its merger with local real estate investment firm NNN Realty Advisors LLC, posted revenues of $160.6 million and a net loss of $5.9 million, the company said on Tuesday.
The first quarter loss was due to the write-off of a Chicago-based office investment, as well as integration costs resulting from the merger NNN Realty and Grubb & Ellis, the company said.
Shares for the company, which counts a market value of about $375 million, were down about 4% in mid-day trading on Tuesday.
NNN Realty, parent company of Santa Ana’s Triple Net Properties LLC, completed its acquisition of Grubb & Ellis in December 2007. It kept its headquarters in Santa Ana but took the better-known Grubb & Ellis name.
The company raised about $264 million in the first quarter for its investment programs, including tenant-in-common programs and a pair of real estate investment trusts it operates.
“We believe that our performance as a combined entity was clearly stronger than it would have been as separate entities,” said Scott Peters, Grubb & Ellis chief executive, in a statement.
Grubb & Ellis said it has identified $16.5 million in annualized cost saving synergies as a direct result of the merger.
