Prime Group Realty suspends quarterly distribution on preferreds

By Susanna Moon

Chicago, April 8 - Prime Group Realty Trust said its board of trustees determined not to declare a quarterly distribution on its series B preferred shares for the first quarter of 2009.

The company said the board is unable to determine when the company might begin distributions again on the preferreds.

The board also is considering various financing and other capitalization alternatives for the company.

The decision was based on the company's current capital resources and liquidity needs and the overall negative state of the economy and capital markets, according to a company press release.

The board intends to review the suspension of the preferreds periodically based on its ongoing review of the company's financial results, capital resources and liquidity needs, and the condition of the economy and capital markets, the release said.

The company can give no assurances that it will resume distributions on the preferreds or that any financing or other capitalization alternatives will be satisfactorily concluded.

Prime Group is a Chicago-based real estate investment trust, which owns, manages, leases, develops, and redevelops office and industrial real estate.

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