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SEC filingRevenue was nearly flat, but net income swung to a loss due to higher interest expense and lower office occupancy, while multifamily showed strength.
Net income swung to a loss of $2.5 million from a profit of $39.8 million in the prior year, a decline of 106.3%. Diluted earnings per share followed suit, falling to -$0.02 from $0.24. The primary drivers were higher interest expense and lower office occupancy, which pressured rental revenue. On the cost side, multifamily expenses increased due to higher personnel expenses, partially offset by lower insurance costs. These factors combined to reverse profitability.
We continue to monitor key operating metrics for our In-Service Portfolio. During repositioning, affected properties may display depressed rental revenues and occupancy levels that impact period-to-period comparisons. Regarding The Landmark Residences property, we do not expect a recent ruling to have a meaningful impact on timing, cost, or plans, and we continue to coordinate with the City of Los Angeles on fire life safety work. A reconstruction of this property is expected to take several years at a cost of several hundred million dollars.