Shares of Santa Ana-based Grubb & Ellis Co. were down nearly 25% in early afternoon New York trading Thursday, after the real estate brokerage and investor reported a loss and said it wouldn’t meet 2008 earnings goals because of tough conditions in the commercial real estate and financial services sectors.
Grubb & Ellis, which completed a reverse merger with Santa Ana-based real estate investor NNN Realty Advisors Inc. a year ago, reported a third-quarter net loss of $44 million.
The loss included a $45.8 million impairment charge related to real estate the company owns and has decided to sell, as well as a $16.3 million charge related to its investment management programs.
Grubb & Ellis officials said the company would not be meeting previously stated earnings projections for 2008.
The company said it would not provide earnings guidance because of tumult in the financial and real estate industries.
The underlying operations of Grubb & Ellis have performed well amid tough market conditions, and the company has benefited from cost reductions and operational changes since the combination with NNN, said interim Chief Executive Gary Hunt.
About 10% of the company’s brokerage staff, about 100 brokers, were let go earlier this week.
Hunt said now is the most challenging real estate market he’s seen in the past 30 years, but the company remains able to raise money for investments, including $245 million in the third quarter.
Shares of the company, already down nearly 80% in the past year, have a market value of $80 million.
