Pacific Office Properties Announces Second Quarter 2008 Financial Results

LOS ANGELES--(Business Wire)--
Pacific Office Properties Trust, Inc. (AMEX:PCE), a West Coast
office building REIT, today announced its financial results for the
three months ended June 30, 2008. This marks the Company's first
complete fiscal quarter since it completed its formation transactions
on March 19, 2008 (the "Transactions"), which transformed it into a
West Coast office REIT by acquiring The Shidler Group's Western U.S.
office building portfolio and operations. The Company also announced
recent corporate highlights.

Recent Corporate Highlights

-- As of June 30, 2008, the Company's total market capitalization
exceeded $750 million. This includes approximately $417
million in consolidated debt and approximately $335 million in
equity, based on our closing price, including common stock
outstanding and limited partnership interests in our operating
partnership, Pacific Office Properties, L.P. (the "Operating
Partnership"), of which the company is the general partner.
These limited partnership interests are exchangeable for our
common stock on terms and conditions set forth in the
Operating Partnership Agreement.

-- During the three months ended June 30, 2008, the Company
acquired managing ownership interests in four joint ventures
consisting of 11 office buildings located in the premier
submarkets of Honolulu, San Diego and Phoenix totaling
approximately 930,000 leasable square feet.

-- As of June 30, 2008, the Company increased the size of its
property portfolio, including those properties owned in
partnership with institutional co-investors, to 19 office
properties consisting of 25 office buildings totaling
approximately 3.3 million leasable square feet.

Second Quarter 2008 Financial Results

The Company reported a net loss available to common stockholders
for the three months ended June 30, 2008 of $1.96 million, or $0.65
per diluted share. The Company also reported Funds from Operations
(FFO) for that same period of $0.18 million, or $0.01 per diluted
share. The historical financial results of the Company's deemed
accounting predecessor prior to the Transactions does not include the
financial performance of certain entities, including their respective
account balances and transactions, which are now a part of the
Company. For this and other reasons, the Company believes results of
the accounting predecessor are not directly comparable to the results
of the Company for the quarter ended June 30, 2008.

"We have executed well on our strategic priorities following the
formation transactions," said Dallas E. Lucas, President and Chief
Executive Officer of Pacific Office Properties Trust, Inc. "We have
steadily built our portfolio with attractive assets and developed
partnerships with institutional co-investors that are integral to our
business model. We have ample access to capital to continue building
our portfolio, executing our plans to improve the performance of the
properties we have acquired, and creating value for our shareholders
and partners."

About Pacific Office Properties Trust, Inc.

Pacific Office Properties Trust, Inc.
(www.pacificofficeproperties.com) is a real estate investment trust,
which acquires, owns, and operates office properties in the Western
U.S., focusing initially on the four high-growth 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.

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

About The Shidler Group

The Shidler Group (www.shidler.com) is a private long-term
investor in commercial real estate. Over the past 30 years, through
its private and public affiliates, it has acquired, owned and managed
more than 2,000 properties containing over 150 million square feet of
leasable area. In addition to the formation of Pacific Office
Properties Trust, Inc., The Shidler Group has founded three other
publicly traded real estate investment trusts - Corporate Office
Properties Trust (NYSE:OFC), First Industrial Realty Trust (NYSE:FR),
and TriNet Corporate Realty Trust (formerly, NYSE:TRI, now part of
iStar Financial (NYSE:SFI)).

Certain Information About Forward Looking Statements

This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. We intend such
forward-looking statements to be covered by the safe harbor provisions
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995, and are including this statement for
purposes of complying with those safe harbor provisions.
Forward-looking statements are not historical information and are
based on current expectations and involve risks and uncertainties.
Without limiting the generality of the foregoing, words such as
"should," "may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate," or "continue," or the negative or other
variations thereof or comparable terminology, are intended to identify
forward-looking statements. The risks and uncertainties inherent in
such statements may cause actual future events or results to differ
materially and adversely from those described in the forward-looking
statements. Important factors that may cause a difference between
projected and actual results for Pacific Office Properties Trust, Inc.
are discussed in the Company's filings from time to time with the SEC,
including but not limited to the Quarterly Report on form 10-Q for the
quarter ended March 31, 2008. Pacific Office Properties Trust, Inc.
and The Shidler Group disclaim any obligation to revise or update any
forward-looking statements that may be made from time to time by any
of them or on their behalf.

-0-
*T
Pacific Office Properties Trust, Inc.
Consolidated Balance Sheets
(in thousands, except share data)

June 30, 2008
-------------
ASSETS
Investments in real estate, net $ 397,482
Cash and cash equivalents 11,228
Restricted cash 5,852
Rents and other receivables 4,218
Intangible assets, net 46,664
Other assets, net 4,265
Goodwill 59,388
Investment in unconsolidated joint ventures 7,738
-------------
Total assets $ 536,835
=============
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Mortgage and other secured loans $ 397,094
Unsecured notes payable to related parties 19,736
Accounts payable and other liabilities 14,698
Acquired below market leases, net 13,008
-------------
Total liabilities 444,536

Minority interests 86,142

Stockholders' equity:
Proportionate Voting Preferred Stock -
Preferred stock, $0.0001 par value, 100,000,000
shares authorized, no shares issued and
outstanding at June 30, 2008 -
Common Stock, $0.0001 par value, 200,000,000 shares
authorized, 3,031,125 shares issued and
outstanding at June 30, 2008 185
Class B Common Stock, $0.0001 par value, 200,000
shares authorized, 100,000 shares issued and
outstanding at June 30, 2008 -
Additional paid-in capital 11,150
Retained deficit (5,178)
-------------
Total stockholders' equity 6,157
-------------
Total liabilities, minority interests and
stockholders' equity $ 536,835
=============
*T

-0-
*T
Pacific Office Properties Trust, Inc
Consolidated Statements of Operations
(unaudited; in thousands except share and per share data)

For the three
months ended
June 30, 2008
-------------

Revenue:
Rental $ 11,090
Tenant reimbursements 4,975
Parking 2,048
Interest and other 141
-------------
Total revenue 18,254

Operating Expenses:
Rental operating property 10,505
General and administrative 1,120
Depreciation and amortization 7,056
Interest 6,653
-------------
Total operating expenses 25,334

Loss before equity in net loss of unconsolidated joint
ventures and minority interests (7,080)

Equity in net loss of unconsolidated joint
ventures (26)
-------------
Loss before minority interests (7,106)

Minority interests 5,148
-------------
Net loss $ (1,958)
=============

Net loss per common share - basic and diluted $ (0.65)
=============

Weighted average number of common shares outstanding -
basic and diluted 3,031,125
=============
*T

-0-
*T
Pacific Office Properties Trust, Inc
Funds from Operations
(unaudited; in thousands except share and per share data)

For the three
months ended
June 30, 2008
--------------
Reconciliation of net loss to FFO:
Net loss $ (1,958)
Add: Depreciation and amortization of real estate
assets 7,056
Depreciation and amortization of real estate
assets - unconsolidated joint ventures 233
Minority interests in our operating partnership (5,148)
--------------
FFO (1) $ 183
==============

FFO per share - basic and diluted $ 0.01
==============

Weighted average number of common shares and common
share equivalents outstanding - basic and diluted (2) 16,920,516
==============
*T

Explanation of Notations

(1) FFO is a widely recognized measure of REIT performance. We
calculate FFO as defined by the National Association of Real Estate
Investment Trusts, or NAREIT. FFO represents net income (loss) (as
computed in accordance with accounting principles generally accepted
in the United States of America, or GAAP), excluding gains (or losses)
from dispositions of property, extraordinary items, real
estate-related depreciation and amortization (including capitalized
leasing expenses, tenant allowances or improvements and excluding
amortization of deferred financing costs) and after adjustments for
unconsolidated partnerships and joint ventures. Management uses FFO as
a supplemental performance measure because, in excluding real
estate-related depreciation and amortization, gains (or losses) from
property dispositions and extraordinary items, it provides a
performance measure that, when compared year over year, captures
trends in occupancy rates, rental rates and operating costs. We also
believe that, as a widely recognized measure of the performance of
REITs, FFO will be used by investors as a basis to compare our
operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and
captures neither the changes in the value of our properties that
result from use or market conditions nor the level of capital
expenditures and leasing commissions necessary to maintain the
operating performance of our properties, all of which have real
economic effect and could materially impact our results from
operations, the utility of FFO as a measure of our performance is
limited. Other Equity REITs may not calculate FFO in accordance with
the NAREIT definition and, accordingly, our FFO may not be comparable
to such other Equity REITs' FFO. As a result, FFO should be considered
only as a supplement to net income (loss) as a measure of our
performance. FFO should not be used as a measure of our liquidity, nor
is it indicative of funds available to fund our cash needs, including
our ability to pay dividends or make distributions. FFO also should
not be used as a supplement to or substitute for cash flow from
operating activities (computed in accordance with GAAP).

(2) The weighted average number of common shares and common share
equivalents outstanding - basic and diluted includes common unit
limited partnership interests in our Operating Partnership.

Our outstanding preferred unit interests in our Operating
Partnership are convertible into common unit limited partnership
interests in our Operating Partnership, but no earlier than March 19,
2010 and until an underwritten public equity offering of our common
stock in an amount equal to or greater than $75 million is
consummated, which is a contingent event. These common unit interests
will become exchangeable for shares of our common stock one year after
such conversion. Our outstanding preferred unit interests at June 30,
2008 represent 32,597,528 common share equivalents, on an as-if
converted basis, and have not been included in our calculation of
diluted earnings per share or FFO per share, including our calculation
of the weighted average number of common and common equivalent shares
outstanding.

Pacific Office Properties Trust, Inc.
Jim Kasim, Chief Financial Officer, 310-395-8560
jkasim@pacificofficeproperties.com

Copyright Business Wire 2008