Shares of Santa Ana-based Grubb & Ellis Co. fell Wednesday 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 in a release after Tuesday’s market close that 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 had been expecting sales of $152.5 million on average.
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. A new estimate was not disclosed.
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’s shares closed down more than 10% on a market value of about $80 million.
