Pacific Office Properties Announces First Quarter 2009 Financial Results

Business Wire, May 07, 2009

LOS ANGELES -- Pacific Office Properties Trust, Inc. (NYSE Amex: PCE), a West Coast office REIT, today announced its financial results for the three months ended March 31, 2009. This marks the Company’s fourth complete fiscal quarter since it completed its formation transactions on March 19, 2008, in which it acquired The Shidler Group’s Western U.S. office building portfolio. The Company also announced financial and portfolio highlights as well as recent corporate milestones.

Financial Highlights

• No debt maturities in 2009 and only $69.5 million of consolidated mortgage debt maturities through 2015
• Substantially all mortgage debt is fixed rate
• Filed an amended registration statement for the sale and issuance of up to $400 million of Class B common stock

Portfolio Highlights

• Steady leasing activity results in total portfolio increasing to 85.39% leased at March 31, 2009 from 85.19% leased at December 31, 2008
• Approximately 150,000 square feet of new and renewal leases signed during the three months ended March 31, 2009 compared to approximately 150,000 square feet during the three months ended December 31, 2008
• 75% of our revenues derived from one of the healthiest office markets in the U.S. (Honolulu)

Approximately 60% of the Company’s investment in real property consists of properties located in Honolulu, with approximately 74% of the Company’s net operating income for the three months ended March 31, 2009 being derived from this market. Honolulu’s office vacancy rate of 10% is the third lowest vacancy rate in the nation, according to a recent report published by CB Richard Ellis, Inc. and its vacancy rate is 35.5% below the national office vacancy rate of 15.5%.

First Quarter 2009 Financial and Operating Results

The Company reported Funds from Operations (FFO) for the three months ended March 31, 2009 of $1.73 million, or $0.10 per diluted share/common unit.

The Company also reported a net loss attributable to stockholders for the three months ended March 31, 2009 of $1.06 million, or ($0.35) per diluted share.

Recent Corporate Milestones

• On March 3, 2009, the Board of Directors of the Company declared a cash dividend of $0.05 per share of our common stock for the first quarter 2009, which was paid on April 15, 2009 to shareholders of record on March 31, 2009.
• The Company’s current total market capitalization exceeds $673 million. This includes approximately $424 million in consolidated debt and approximately $250 million in equity, assuming the conversion of all outstanding interests in our operating partnership, based on our closing price on the NYSE Amex on March 31, 2009.
• As of March 31, 2009, the Company’s property portfolio, including those properties owned in partnership with institutional co-investors, included 23 office properties consisting of 40 office buildings totaling approximately 4.3 million leasable square feet.

“We are very pleased with our solid operations in spite of the challenging economic environment,” said Dallas E. Lucas, President and Chief Executive Officer of Pacific Office Properties Trust, Inc. “Leasing activity remains steady, which reflects the attractive market positioning of our properties together with our proactive leasing and management approach. Our stable portfolio, liquidity and favorable schedule of debt maturities, positions us well in a slowing economy to execute on our growth strategy and create additional value for our shareholders in the future.”

Supplemental Information

Supplemental financial information for the Company’s quarterly financial results may be accessed on the Company’s website under the Investor Relations section at www.pacificofficeproperties.com.

About Pacific Office Properties Trust, Inc.

Pacific Office Properties Trust, Inc. (www.pacificofficeproperties.com) is a real estate investment trust that acquires, owns, and operates office properties in the Western U.S., focusing initially on the long-term growth sub-markets of Honolulu, San Diego, Los Angeles, and Phoenix. The Company is externally managed by Pacific Office Management, Inc., an affiliate of The Shidler Group, and an entity owned by the Company’s founders.

The Company’s strategy is to acquire, primarily in partnership with institutional co-investors, value-added office buildings whose potential can be maximized through improvements, repositioning, and superior leasing and management.

The Company continues in the tradition of The Shidler Group’s highly successful institutional joint-venture operations, which focus on acquiring opportunistic and value-added commercial real estate in partnership with institutional co-investors.