Santa Ana-based Grubb & Ellis Co. returned to profitability in the fourth quarter, thanks in part to a refinancing plan that helped boost its bottom line.
The real estate brokerage and investor on Thursday posted a fourth-quarter profit of $16.8 million, compared with a year-earlier loss of $262.9 million.
The profits included a gain of $21.9 million on the repayment of debt and $3.5 million of income from discontinued operations, the company said.
Grubb & Ellis completed a refinancing late last year that allowed it to pay off more than $60 million of debt at 65 cents on the dollar.
The company’s quarterly revenue fell 5.9% to $150.6 million. Management services revenue rose 11% and transaction services revenue fell 19% during the quarter, according to the company.
Transaction services on brokered leases and sales continue “to reflect the challenges in the commercial real estate sales and leasing markets,” said chief executive Thomas D’Arcy, who joined Grubb & Ellis late last year.
For all 2009, the company reported a net loss of $78.8 million, compared with a net loss of $330.9 million in 2008.
The company said last week it expects 2010 revenues of $550 million to $575 million, and for the company to return to profitability for the year.
Shares of the company were largely unaffected by the earning results in early Thursday trading. The company counts a market value off about $95 million.
