Maguire Properties Reports First Quarter 2008 Financial Results

Maguire Properties, Inc. (NYSE: MPG), a Southern California focused real estate investment trust, today reported results for the quarter ended March 31, 2008.

Significant First Quarter and Recent Events

• As of March 31, 2008, approximately 86% of our outstanding debt is fixed (or swapped to a fixed rate) at a weighted average interest rate of approximately 5.6% on an interest–only basis with a weighted average remaining term of approximately eight years.

• As of March 31, 2008, we had cash on hand of $345.4 million, including $255.4 million in restricted cash. Restricted cash includes approximately $134 million of leasing and capital expenditures reserves, as well as approximately $19 million of debt service reserves.
• On April 21, 2008, we repaid the existing $200 million mortgage loan secured by Griffin Towers, which was due to mature on May 1, 2008. The repayment was funded through the issuance of $180 million in new debt, including $35 million in new secured recourse debt issued by our Operating Partnership, and $20 million of cash on hand.
• During the first quarter, we completed new leases and renewals for approximately 400,000 square feet (including our pro rata share of our joint venture properties). This included an expansion of approximately 26,500 square feet with Winston & Strawn at Wells Fargo Tower in Downtown Los Angeles. Additionally, we completed a new lease for approximately 66,000 square feet with the Recording Academy (Grammy’s) for the relocation of its corporate headquarters to our new development at Lantana in Santa Monica which brings the project to 91% leased.
• During the first quarter, we completed construction on our projects at the Quintana Campus (formerly the Washington Mutual Irvine Campus) in Irvine, California and the Mission City Corporate Center in San Diego, California. Our Lantana development project located in Santa Monica, California and our 207 Goode development project located in Glendale, California both remain on schedule.

First Quarter 2008 Financial Results

• Net loss available to common stockholders for the quarter ended March 31, 2008 was $48.6 million, or $1.03 per share, compared to net loss available to common stockholders of $12.6 million, or $0.27 per share, for the quarter ended March 31, 2007.

• Our share of Funds from Operations (FFO) available to common stockholders for the quarter ended March 31, 2008 before costs incurred in connection with the strategic alternatives review was $4.9 million, or $0.10 per diluted share, compared to our share of FFO available to common stockholders of $17.7 million, or $0.38 per diluted share, for the quarter ended March 31, 2007. Our FFO in the first quarter of 2008 after the costs incurred in connection with the strategic alternatives review was a deficit of $(0.7) million, or $(0.01) per diluted share, compared to our share of FFO available to common stockholders of $17.7 million, or $0.38 per diluted share, for the quarter ended March 31, 2007. Our FFO in the first quarter of 2008 was negatively impacted by $6.4 million related to costs incurred in connection with the strategic alternatives review being conducted by a Special Committee of independent directors of our board.
• For new leases completed during the quarter, cash rent growth was 39%, compared to cash rents on those spaces immediately prior to their expiration, and GAAP rent growth was 48% compared to prior GAAP rents. Within the Los Angeles Central Business District, the cash rent growth was 49% and the GAAP rent growth was 81%. Within Orange County, the cash rent growth was 38% and the GAAP rent growth was 33%.

The weighted average number of common and common equivalent shares used to calculate diluted earnings per share for the quarter ended March 31, 2007 was 46,578,064 (47,000,722 for purposes of calculating diluted FFO per share.) The weighted average number of common shares used to calculate both basic and diluted earnings per share for the quarter ended March 31, 2008 was 46,982,531 due to our net loss position during the period.

As of March 31, 2008, our portfolio was comprised of whole or partial interests in approximately 35 million square feet, consisting of 39 office and retail properties totaling approximately 21 million net rentable square feet, one 350-room hotel with 266,000 square feet, and on- and off-site structured parking plus surface parking totaling approximately 14 million square feet, which accommodates almost 47,000 vehicles. We have two projects under development that total approximately 387,000 square feet of office space and approximately 223,000 square feet of structured parking. We also own undeveloped land that we believe can support up to approximately 17 million square feet of office, hotel, retail, residential and structured parking.

Due to the ongoing strategic alternative review process in which we are engaged under the direction of a Special Committee of independent directors, we will not have a conference call to review these financial results, and we will not provide guidance for 2008 at this time.

About Maguire Properties, Inc.

Maguire Properties, Inc. is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on Maguire Properties, visit our website at www.maguireproperties.com.

Business Risks

This press release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include: risks associated with our consideration of strategic alternatives; general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases at favorable rates, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; risks associated with the potential failure to manage effectively our growth and expansion into new markets, to identify properties to acquire, to complete acquisitions or to integrate acquisitions successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; risks associated with joint ventures; potential liability for uninsured losses and environmental contamination; risks associated with our potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with our dependence on key personnel whose continued service is not guaranteed.

For a further list and description of such risks and uncertainties, see our Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on April 28, 2008. The Company does not update forward-looking statements and disclaims any intention or obligation to update or revise them, whether as a result of new information, future events or otherwise.