COMMERCIAL REAL ESTATE
Mills Delays Release of 3rd-Quarter Results
The Mills Corp., one of the largest owners of big malls such as Potomac Mills, said it is postponing release of its third-quarter earnings results because it is having to redo some of its accounting.
The conference call with analysts was moved to Nov. 9 from Nov. 1. The Arlington company said it believes that its third-quarter results will be "substantially below expectations," according to a news release. A company spokesman, David Douglass, would not elaborate.
Mills's shares closed up $1.92, to $53.50.
Fannie, Freddie Portfolios Too Big, Snow Says
The combined $1.45 trillion portfolios of Fannie Mae and Freddie Mac are "way larger" than necessary to support the secondary mortgage market, Treasury Secretary John W. Snow said.
"It looks like those entities have portfolios designed for investment purposes," Snow told reporters in Detroit. The administration is lobbying Congress to put the two lenders on a tighter leash.
Five Star Ends Management Pacts With Sunrise
Five Star Quality Care, which operates senior living facilities, will pay Sunrise Senior Living Services of McLean $82 million to end 12 management agreements early. The payout covers termination and management fees that would otherwise have been due Sunrise through Dec. 29.
Five Star, of Newton, Mass., will record these payments as expenses in its quarterly income statement and will fund them with available cash and the proceeds of a $58 million sale and lease-back transaction with Senior Housing Properties Trust.
Grace's Sales Rise, but Profit Falls
W.R. Grace & Co., the specialty chemical maker that has been operating under bankruptcy protection since 2001, said its sales increased but its profit shrank in the third quarter. The Columbia company reported earnings of $32.1 million (48 cents per share), compared with $48 million (72 cents) in the corresponding quarter a year ago. Gains a year ago included money awarded to Grace from litigation with Honeywell over contaminated New Jersey property. Excluding the settlement, profit in both quarters was about equal, said Robert M. Tarola, chief financial officer. Revenue was $653.4 million, up 12.7 percent from the third quarter of 2004.
United Therapeutics, a Silver Spring biotechnology company, said its third-quarter profit surged to $15.8 million (61 cents a share) from $6.3 million (27 cents). Revenue increased 65 percent, to $33 million. The firm sells Remodulin, an expensive treatment for abnormally high blood pressure in arteries between the heart and lungs.
Opnet Technologies, a Bethesda software maker, said its second-quarter profit fell slightly, to $440,000 (2 cents a share) from $494,000 (2 cents). Revenue increased 29 percent, to $18.3 million.
FTI Consulting of Annapolis said its third-quarter profit rose 2 percent, to $11.2 million (27 cents a share) from $11 million (26 cents). Revenue increased nearly 28 percent, to $133.2 million. The company said its results were affected by one-time charges, including a $1.7 million non-cash charge for the write-off of deferred financing costs.
Compiled from staff and news service reports.