CHICAGO, May 1, 2012 -- Strategic Hotels & Resorts,
Inc. (NYSE: BEE) today reported results for the first quarter
ended March 31, 2012.
($
in millions, except per share and operating metrics)
|
First
Quarter
|
Earnings
Metrics
|
2012
|
2011
|
%
Change
|
Net
loss attributable to common shareholders
|
$(31.5)
|
$(35.4)
|
N/A
|
Net
loss attributable to common shareholders per diluted share
|
$(0.17)
|
$(0.23)
|
N/A
|
Comparable
funds from operations (Comparable FFO) (a)
|
$3.1
|
$(3.8)
|
N/A
|
Comparable
FFO per diluted share (a)
|
$0.02
|
$(0.02)
|
N/A
|
Comparable
EBITDA (a)
|
$33.3
|
$28.7
|
15.9%
|
|
|
|
|
Total
United States Portfolio Operating Metrics (b)
|
|
|
|
Average
Daily Rate (ADR)
|
$251.54
|
$239.49
|
5.0%
|
Occupancy
|
68.7%
|
66.4%
|
2.3 pts
|
Revenue
per Available Room (RevPAR)
|
$172.86
|
$158.91
|
8.8%
|
Total
RevPAR
|
$338.85
|
$314.41
|
7.8%
|
EBITDA
Margins
|
20.1%
|
17.9%
|
220 bps
|
|
|
|
|
North
American Same Store Operating Metrics (c)
|
|
|
|
ADR
|
$238.09
|
$226.44
|
5.1%
|
Occupancy
|
67.3%
|
64.7%
|
2.6 pts
|
RevPAR
|
$160.27
|
$146.49
|
9.4%
|
Total
RevPAR
|
$300.74
|
$279.33
|
7.7%
|
EBITDA
Margins
|
17.2%
|
15.5%
|
170 bps
|
(a) Please refer to tables provided later in this
press release for a reconciliation of net loss to Comparable FFO,
Comparable FFO per share and Comparable EBITDA. Comparable FFO,
Comparable FFO per share and Comparable EBITDA are non-GAAP measures
and are further explained with the reconciliation tables.
(b) Operating statistics reflect results from the
Company's Total United States portfolio (see portfolio definitions
later in this press release).
(c) Operating statistics reflect results from the
Company's North American same store portfolio (see portfolio
definitions later in this press release).
"Our continued excellent results reflect the ongoing strength
in demand for high-end hotels and resorts across all our business
segments. The ongoing economic recovery, combined with our sustained
productivity enhancements, has once more resulted in significant top
line growth and healthy margin expansion," said Laurence
Geller, President and Chief Executive Officer. "Moreover, newly
developed high-end room supply remains negligible for the foreseeable
future, providing us a strong, sustainable competitive advantage in our
markets."
First Quarter Highlights
- Net loss attributable to common shareholders was $31.5 million, or $0.17
per diluted share in the first quarter of 2012, compared with net loss
attributable to common shareholders of $35.4
million, or $0.23 per diluted
share in the first quarter of 2011.
- Comparable FFO was $0.02 per
diluted share in the first quarter of 2012, compared with a loss of $0.02 per diluted share in the prior year
period.
- Comparable EBITDA was $33.3 million in the first
quarter of 2012, compared with $28.7 million
in the prior year period, a 15.9 percent increase between periods.
- Total United States
portfolio RevPAR increased 8.8 percent in the first quarter of 2012,
driven by a 2.3 percentage point increase in occupancy and a 5.0
percent increase in ADR, compared to the first quarter of 2011. Total
RevPAR increased 7.8 percent between periods with non-rooms revenue
increasing by 7.9 percent between periods.
- Occupancy growth in the Total United States portfolio was
driven by a 5.8 percent increase in group occupied room nights and a
3.6 percent increase in transient occupied room nights. Group ADR
increased 6.5 percent compared to the first quarter 2011 and transient
ADR increased 3.7 percent.
- RevPAR increased 9.7 percent in the first quarter of 2012
in the Company's Total United States urban portfolio and 7.8 percent in
the Company's Total United States resort portfolio, compared to the
first quarter of 2011.
- North American same store RevPAR increased 9.4 percent in
the first quarter of 2012, driven by a 2.6 percentage point
increase in occupancy and a 5.1 percent increase in ADR. Total RevPAR
increased 7.7 percent with non-rooms revenue increasing by 6.8 percent
between periods.
- European RevPAR increased 13.8 percent (17.1 percent in
constant dollars) in the first quarter of 2012, driven by a 6.6
percentage point increase in occupancy and a 4.2 percent increase in
ADR (7.2 percent increase in constant dollars) between periods.
European Total RevPAR increased 7.2 percent in the first quarter over
the prior year period (10.3 percent in constant dollars).
- Total United States
portfolio EBITDA margins expanded 220 basis points in the first quarter
of 2012, compared to the first quarter of 2011. North American same
store EBITDA margins expanded 170 basis points.
- Group room nights currently booked for 2012 are 0.7 percent
higher compared to room nights booked for 2011 at the same time last
year at rates 4.3 percent higher, resulting in a 5.0 percent RevPAR
increase.
Preferred Dividends
For the second quarter 2012, the Company's board of directors
authorized, and the Company declared a quarterly dividend of $0.53125 per share of 8.5 percent Series A
Cumulative Redeemable Preferred Stock (Series A) payable on June 29, 2012 to shareholders of record as of June 15, 2012, a quarterly dividend of $0.51563 per share of 8.25 percent Series B
Cumulative Redeemable Preferred Stock (Series B) payable on June 29, 2012 to shareholders of record as of June 15, 2012 and a quarterly dividend of $0.51563 per share of 8.25 percent Series C
Cumulative Redeemable Preferred Stock (Series C) payable on June 29, 2012 to shareholders of record as of June 15, 2012, contingent upon the Company's
ability to meet, on the payment date, the requirements of the Maryland
General Corporation Law with respect to the payment of dividends (the
"Maryland Dividend Requirement"). While the Company cannot make any
guarantees, it currently expects to be able to meet the Maryland
Dividend Requirement on the June 29, 2012
payment date.
The Company had previously announced the declaration of
accrued and unpaid dividends on the Series A, B and C Preferred Stock
through March 31, 2012 payable on June 29, 2012 to shareholders of record as of June 15, 2012, contingent upon the Company's
ability to meet the Maryland Dividend Requirement on the payment date.
In total, 14 quarters of preferred dividends have been declared payable
on June 29, 2012 to shareholders of
record as of June 15, 2012, equating to $7.4375 per share of Series A Preferred Stock
and $7.21882 per share of Series B and
Series C Preferred Stock.
Subsequent Event
On April 23rd, the Company
closed on the sale of 18.4 million shares of common stock at a public
offering price of $6.50 per share,
including 2.4 million shares of common stock issued pursuant to the
exercise in full of the underwriters' over-allotment option. The
Company received approximately $114.8 million
from the offering after deducting underwriting discounts and
commissions related to the offering. The Company used the net proceeds
from the offering to reduce borrowings under its secured bank credit
facility, fund the payment of accrued and unpaid preferred dividends,
and fund capital expenditures and working capital.
2012 Guidance
Based on the results of the first quarter and current
forecasts for the remainder of the year, management is reaffirming its
guidance range for full year 2012 RevPAR growth, Total RevPAR growth
and Comparable EBITDA, and adjusting its guidance range for Comparable
FFO per fully diluted share to reflect the shares issued in the common
equity offering which closed on April 23rd.
For the year ending December 31, 2012,
the Company anticipates that Comparable EBITDA will be in the range of $165.0 million to $180.0 million and
Comparable FFO in the range of $0.21 and
$0.29 per fully diluted share.
Management is also reaffirming its guidance for North American same
store RevPAR growth in the range between 6.0 percent to 8.0 percent and
Total RevPAR growth in the range between 5.0 percent and 7.0 percent.
Portfolio Definitions
Total United States
portfolio hotel comparisons for the first quarter 2012 are derived from
the Company's hotel portfolio at March 31, 2012,
consisting of all 14 properties located in the
United States, including unconsolidated joint ventures.
North American same store hotel comparisons for the first
quarter 2012 are derived from the Company's hotel portfolio at March 31, 2012, consisting of properties
located in North America and held for
five or more quarters, in which operations are included in the
consolidated results of the Company. As a result, same store
comparisons include 11 properties and exclude the Four Seasons Jackson
Hole and Four Seasons Silicon Valley hotels, which were acquired on March 11, 2011, and the unconsolidated Hotel
del Coronado and Fairmont Scottsdale Princess hotels.
European hotel comparisons for the first quarter 2012 are
derived from the Company's European owned and leased hotel properties
at March 31, 2012, consisting of the
Marriott London Grosvenor Square and the Marriott Hamburg.
Earnings Call
The Company will conduct its first quarter 2012 conference
call for investors and other interested parties on Wednesday, May 2, 2012 at 10:00 a.m. Eastern Time (ET). Interested
individuals are invited to access the call by dialing 888.679.8018
(toll international: 617.213.4845) with passcode 35186130. To
participate on the webcast, log on to the company's website at http://www.strategichotels.com or http://edge.media-server.com/m/p/9s7959dw/lan/en
15 minutes before the call to download the necessary software.
For those unable to listen to the call live, a taped
rebroadcast will be available beginning at 12:00
p.m. ET on May 2, 2012 through 11:59 p.m. ET on May
9, 2012. To access the replay, dial 888.286.8010 (toll
international: 617.801.6888) with passcode 48871579. A replay of the
call will also be available on the Internet at http://www.strategichotels.com or http://www.earnings.com for 30 days after the call.
The Company also produces supplemental financial data that
includes detailed information regarding its operating results. This
supplemental data is considered an integral part of this earnings
release. These materials are available on the Strategic Hotels &
Resorts' website at www.strategichotels.com
within the first quarter information section.
About the Company
Strategic Hotels & Resorts, Inc. is a real estate
investment trust (REIT) which owns and provides value-enhancing asset
management of high-end hotels and resorts in the
United States, Mexico and Europe. The Company currently has ownership
interests in 17 properties with an aggregate of 7,762 rooms and 840,000
square feet of meeting space. For a list of current properties and for
further information, please visit the Company's website at http://www.strategichotels.com.
This press release contains forward-looking statements
about Strategic Hotels & Resorts, Inc. (the "Company"). Except for
historical information, the matters discussed in this press release are
forward-looking statements subject to certain risks and uncertainties.
These forward-looking statements include statements regarding the
Company's future financial results, stabilization in the lodging space,
positive trends in the lodging industry and the Company's continued
focus on improving profitability. Actual results could differ
materially from the Company's projections. Factors that may contribute
to these differences include, but are not limited to the following: the
effects of the recent global economic recession upon business and
leisure travel and the hotel markets in which the Company invests; the
Company's liquidity and refinancing demands; the Company's ability to
obtain or refinance maturing debt; the Company's ability to maintain
compliance with covenants contained in the Company's debt facilities;
the Company's ability to meet the requirements of the Maryland General
Corporation Law with respect to the payment of preferred dividends on
the June 29, 2012 payment date; stagnation or further deterioration in
economic and market conditions, particularly impacting business and
leisure travel spending in the markets where the Company's hotels
operate and in which the Company invests, including luxury and upper
upscale product; general volatility of the capital markets and the
market price of the Company's shares of common stock; availability of
capital; the Company's ability to dispose of properties in a manner
consistent with the Company's investment strategy and liquidity needs;
hostilities and security concerns, including future terrorist attacks,
or the apprehension of hostilities, in each case that affect travel
within or to the United States, Mexico, Germany,
England or other countries where
the Company invests; difficulties in identifying properties to acquire
and completing acquisitions; the Company's failure to maintain
effective internal control over financial reporting and disclosure
controls and procedures; risks related to natural disasters; increases
in interest rates and operating costs, including insurance premiums and
real property taxes; contagious disease outbreaks, such as the H1N1
virus outbreak; delays and cost-overruns in construction and
development; marketing challenges associated with entering new lines of
business or pursuing new business strategies; the Company's failure to
maintain the Company's status as a REIT; changes in the competitive
environment in the Company's industry and the markets where the Company
invests; changes in real estate and zoning laws or regulations;
legislative or regulatory changes, including changes to laws governing
the taxation of REITS; changes in generally accepted accounting
principles, policies and guidelines; and litigation, judgments or
settlements.
Additional risks are discussed in the Company's filings
with the Securities and Exchange Commission, including those
appearing under the heading "Item 1A. Risk Factors" in the Company's
most recent Form 10-K and subsequent Form 10-Qs. Although the
Company believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be attained. The
forward-looking statements are made as of the date of this press release,
and the Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by law.
The following tables reconcile projected 2012 net loss
attributable to common shareholders to projected Comparable EBITDA,
Comparable FFO and Comparable FFO per diluted share (in millions,
except per share data):
|
Low
Range
|
|
High
Range
|
Net
Loss Attributable to Common Shareholders
|
$(79.3)
|
|
$(64.3)
|
Depreciation
and Amortization
|
105.0
|
|
105.0
|
Interest
Expense
|
83.1
|
|
83.1
|
Income
Taxes
|
1.1
|
|
1.1
|
Non-controlling
Interests
|
(0.3)
|
|
(0.3)
|
Adjustments
from Consolidated Affiliates
|
(5.7)
|
|
(5.7)
|
Adjustments
from Unconsolidated Affiliates
|
28.3
|
|
28.3
|
Preferred
Shareholder Dividends
|
24.2
|
|
24.2
|
Realized
Portion of Deferred Gain on Sale Leasebacks
|
(0.2)
|
|
(0.2)
|
Adjustment
for Value Creation Plan
|
8.8
|
|
8.8
|
Comparable
EBITDA
|
$165.0
|
|
$180.0
|
|
Low
Range
|
|
High
Range
|
Net
Loss Attributable to Common Shareholders
|
$(79.3)
|
|
$(64.3)
|
Depreciation
and Amortization
|
103.8
|
|
103.8
|
Realized
Portion of Deferred Gain on Sale Leasebacks
|
(0.2)
|
|
(0.2)
|
Non-controlling
Interests
|
(0.2)
|
|
(0.2)
|
Adjustments
from Consolidated Affiliates
|
(2.9)
|
|
(2.9)
|
Adjustments
from Unconsolidated Affiliates
|
15.5
|
|
15.5
|
Adjustment
for Value Creation Plan
|
8.8
|
|
8.8
|
Other
Adjustments
|
(1.5)
|
|
(1.5)
|
Comparable
FFO
|
$44.0
|
|
$59.0
|
Comparable
FFO per Diluted Share (a)
|
$0.21
|
|
$0.29
|
|
|
|
|
(a) Comparable FFO per Diluted Share has been
adjusted to reflect the 18.4 million shares issued in the Company's
common equity offering which closed on April
23rd, 2012.
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
(in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2012
|
|
2011
|
Revenues:
|
|
|
|
|
Rooms
|
|
|
$
94,510
|
|
$
91,470
|
Food
and beverage
|
|
62,479
|
|
62,882
|
Other
hotel operating revenue
|
|
20,125
|
|
19,973
|
Lease
revenue
|
|
1,165
|
|
1,215
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
178,279
|
|
175,540
|
|
|
|
|
|
|
|
|
Operating
Costs and Expenses:
|
|
|
|
|
Rooms
|
|
|
28,576
|
|
26,627
|
Food
and beverage
|
|
47,393
|
|
46,007
|
Other
departmental expenses
|
|
49,565
|
|
50,673
|
Management
fees
|
|
5,616
|
|
5,774
|
Other
hotel expenses
|
|
13,609
|
|
13,358
|
Lease
expense
|
|
1,168
|
|
1,196
|
Depreciation
and amortization
|
|
25,490
|
|
30,605
|
Corporate
expenses
|
|
13,810
|
|
14,477
|
|
|
|
|
|
|
|
|
|
|
Total
operating costs and expenses
|
|
185,227
|
|
188,717
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(6,948)
|
|
(13,177)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(19,605)
|
|
(19,548)
|
Interest
income
|
|
30
|
|
32
|
Equity
in earnings (losses) of unconsolidated affiliates
|
|
920
|
|
(1,600)
|
Foreign
currency exchange (loss) gain
|
|
(5)
|
|
139
|
Other
income, net
|
|
452
|
|
3,925
|
Loss
before income taxes and discontinued operations
|
|
(25,156)
|
|
(30,229)
|
Income
tax (expense) benefit
|
|
(465)
|
|
1,648
|
Loss
from continuing operations
|
|
(25,621)
|
|
(28,581)
|
Income
from discontinued operations, net of tax
|
|
-
|
|
162
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(25,621)
|
|
(28,419)
|
Net
loss attributable to the noncontrolling interests in SHR's operating
partnership
|
|
117
|
|
138
|
Net
loss attributable to the noncontrolling interests in consolidated
affiliates
|
|
29
|
|
595
|
Net
loss attributable to SHR
|
|
(25,475)
|
|
(27,686)
|
Preferred
shareholder dividends
|
|
(6,041)
|
|
(7,721)
|
Net
loss attributable to SHR common shareholders
|
|
$
(31,516)
|
|
$
(35,407)
|
|
|
|
|
|
|
|
|
Basic
and Diluted Loss Per Share:
|
|
|
|
|
|
Loss
from continuing operations attributable to SHR common shareholders
|
|
$
(0.17)
|
|
$
(0.23)
|
|
Income
from discontinued operations attributable to SHR common shareholders
|
|
-
|
|
-
|
|
Net
loss attributable to SHR common shareholders
|
|
$
(0.17)
|
|
$
(0.23)
|
|
Weighted
average common shares outstanding
|
|
186,430
|
|
157,333
|
|
|
|
|
|
|
|
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets
|
(in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2012
|
|
2011
|
Assets
|
|
|
|
|
|
|
Investment
in hotel properties, net
|
$
1,676,881
|
|
$
1,692,431
|
|
Goodwill
|
40,359
|
|
40,359
|
|
Intangible
assets, net of accumulated amortization of $9,435 and $8,915
|
31,108
|
|
30,635
|
|
Investment
in unconsolidated affiliates
|
126,198
|
|
126,034
|
|
Cash
and cash equivalents
|
58,205
|
|
72,013
|
|
Restricted
cash and cash equivalents
|
40,703
|
|
39,498
|
|
Accounts
receivable, net of allowance for doubtful accounts of $1,575 and $1,698
|
49,359
|
|
43,597
|
|
Deferred
financing costs, net of accumulated amortization of $4,434 and $3,488
|
9,955
|
|
10,845
|
|
Deferred
tax assets
|
1,968
|
|
2,230
|
|
Prepaid
expenses and other assets
|
38,852
|
|
29,047
|
|
|
Total
assets
|
$
2,073,588
|
|
$
2,086,689
|
|
|
|
|
|
|
|
|
Liabilities,
Noncontrolling Interests and Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgages
and other debt payable
|
$
1,000,128
|
|
$
1,000,385
|
|
|
Bank
credit facility
|
59,000
|
|
50,000
|
|
|
Accounts
payable and accrued expenses
|
246,384
|
|
249,179
|
|
|
Distributions
payable
|
78,540
|
|
72,499
|
|
|
Deferred
tax liabilities
|
47,475
|
|
47,623
|
|
|
|
|
Total
liabilities
|
1,431,527
|
|
1,419,686
|
|
Noncontrolling
interests in SHR's operating partnership
|
5,616
|
|
4,583
|
|
Equity:
|
|
|
|
|
|
|
SHR's
shareholders' equity:
|
|
|
|
|
|
|
8.50%
Series A Cumulative Redeemable Preferred Stock ($0.01 par value per
share;
|
|
|
|
|
|
|
|
4,148,141
shares issued and outstanding; liquidation preference $25.00 per share
|
|
|
|
|
|
|
|
plus
accrued distributions and $132,352 and $130,148 in the aggregate)
|
99,995
|
|
99,995
|
|
|
|
8.25%
Series B Cumulative Redeemable Preferred Stock ($0.01 par value per
share;
|
|
|
|
|
|
|
|
3,615,375
shares issued and outstanding; liquidation preference $25.00 per share
|
|
|
|
|
|
|
|
plus
accrued distributions and $114,619 and $112,775 in the aggregate)
|
87,064
|
|
87,064
|
|
|
|
8.25%
Series C Cumulative Redeemable Preferred Stock ($0.01 par value per
share;
|
|
|
|
|
|
|
|
3,827,727
shares issued and outstanding; liquidation preference $25.00 per share
|
|
|
|
|
|
|
|
plus
accrued distributions and $121,351 and $119,377 in the aggregate)
|
92,489
|
|
92,489
|
|
|
|
Common
shares ($0.01 par value per share; 250,000,000 common shares
authorized;
|
|
|
|
|
|
|
|
185,867,664
and 185,627,199 common shares issued and outstanding)
|
1,858
|
|
1,856
|
|
|
|
Additional
paid-in capital
|
1,628,310
|
|
1,634,067
|
|
|
|
Accumulated
deficit
|
(1,216,096)
|
|
(1,190,621)
|
|
|
|
Accumulated
other comprehensive loss
|
(65,485)
|
|
(70,652)
|
|
|
|
|
Total
SHR's shareholders' equity
|
628,135
|
|
654,198
|
|
|
Noncontrolling
interests in consolidated affiliates
|
8,310
|
|
8,222
|
|
|
|
Total
equity
|
636,445
|
|
662,420
|
|
|
|
|
Total
liabilities, noncontrolling interests and equity
|
$
2,073,588
|
|
$
2,086,689
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
Supplemental
Financial Data
|
(in
thousands, except per share information)
|
|
|
|
March
31, 2012
|
|
|
|
|
|
|
|
Pro
Rata Share
|
|
Consolidated
|
Capitalization
|
|
Common
shares outstanding
|
185,868
|
|
185,868
|
Operating
partnership units outstanding
|
853
|
|
853
|
Restricted
stock units outstanding
|
1,077
|
|
1,077
|
Value
Creation Plan units outstanding under the deferral program
|
1,153
|
|
1,153
|
|
|
|
|
|
|
Combined
shares and units outstanding
|
188,951
|
|
188,951
|
Common
stock price at end of period
|
$ 6.58
|
|
$ 6.58
|
|
|
|
|
|
|
Common
equity capitalization
|
$
1,243,298
|
|
$
1,243,298
|
Preferred
equity capitalization (at $25.00 face value)
|
289,102
|
|
289,102
|
Consolidated
debt
|
1,059,128
|
|
1,059,128
|
Pro
rata share of unconsolidated debt
|
212,275
|
|
-
|
Pro
rata share of consolidated debt
|
(45,548)
|
|
-
|
Cash
and cash equivalents
|
(58,205)
|
|
(58,205)
|
|
|
|
|
|
|
|
Total
enterprise value
|
$
2,700,050
|
|
$
2,533,323
|
|
|
|
|
|
|
Net
Debt / Total Enterprise Value
|
43.2%
|
|
39.5%
|
Preferred
Equity / Total Enterprise Value
|
10.7%
|
|
11.4%
|
Common
Equity / Total Enterprise Value
|
46.0%
|
|
49.1%
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations
|
|
The
results of operations of hotels sold are classified as discontinued
operations and segregated in the consolidated statements of operations
for all periods presented. The following hotel was sold during 2011 (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
|
|
Date
Sold
|
|
Net
Sales Proceeds
|
|
|
|
|
|
|
|
Paris
Marriott Champs Elysees (Paris Marriott)
|
|
April
6, 2011
|
|
$
58,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
following is a summary of income from discontinued operations for the
three months ended March 31, 2012 and 2011 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
operating revenues
|
|
|
|
|
|
$ -
|
|
$ 8,805
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses
|
|
|
|
|
|
-
|
|
8,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
|
|
-
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency exchange gain
|
|
|
|
|
|
-
|
|
58
|
Other
income, net
|
|
|
|
|
|
-
|
|
326
|
Income
tax expense
|
|
|
|
|
|
-
|
|
(359)
|
Gain
on sale
|
|
|
|
|
|
-
|
|
14
|
|
Income
from discontinued operations
|
|
|
|
|
|
$ -
|
|
$ 162
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
in the Hotel del Coronado and Fairmont Scottsdale Princess Hotel
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On
January 9, 2006, we purchased a 45% interest in the unconsolidated
affiliate that owns the Hotel del Coronado. On February 4, 2011, we
completed a recapitalization of the unconsolidated affiliate. As part
of the recapitalization, a new unconsolidated affiliate was formed to
own the Hotel del Coronado and to invest cash in the asset. Pursuant to
the terms of the recapitalization, we became a limited partner in the
new unconsolidated affiliate, and our ownership interest in the Hotel
del Coronado decreased from 45% to 34.3%. On June 9, 2011, we completed
a recapitalization of the Fairmont Scottsdale Princess hotel. As part
of the recapitalization, our ownership interest in the Fairmont
Scottsdale Princess Hotel decreased from 100% to 50%. We account for
these investments using the equity method of accounting.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
|
|
March 31, 2012
|
|
March 31, 2011
|
|
|
|
|
|
|
Fairmont
|
|
|
|
|
|
Fairmont
|
|
|
|
|
|
|
Hotel del
|
|
Scottsdale
|
|
|
|
Hotel del
|
|
Scottsdale
|
|
|
|
|
|
|
Coronado
|
|
Princess
|
|
Total
|
|
Coronado
|
|
Princess
|
|
Total
|
Total
revenues (100%)
|
|
|
|
$
30,843
|
|
$
26,983
|
|
$ 7,826
|
|
$
29,302
|
|
$ -
|
|
$
29,302
|
Property
EBITDA (100%)
|
|
|
|
$ 8,219
|
|
$ 8,655
|
|
$
16,874
|
|
$ 7,298
|
|
$ -
|
|
$ 7,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in (losses) earnings of unconsolidated affiliates (SHR ownership)
|
|
|
|
|
|
|
|
|
|
|
Property EBITDA
|
|
|
|
$ 2,819
|
|
$ 4,327
|
|
$ 7,146
|
|
$ 2,606
|
|
$ -
|
|
$ 2,606
|
Depreciation
and amortization
|
|
|
|
(1,689)
|
|
(1,771)
|
|
(3,460)
|
|
(1,635)
|
|
-
|
|
(1,635)
|
Interest
expense
|
|
|
|
(2,518)
|
|
(203)
|
|
(2,721)
|
|
(2,305)
|
|
-
|
|
(2,305)
|
Other
expenses, net
|
|
|
|
(23)
|
|
(58)
|
|
(81)
|
|
(739)
|
|
-
|
|
(739)
|
Income
taxes
|
|
|
|
267
|
|
-
|
|
267
|
|
577
|
|
-
|
|
577
|
Equity
in (losses) earnings of unconsolidated affiliates
|
|
$
(1,144)
|
|
$ 2,295
|
|
$ 1,151
|
|
$
(1,496)
|
|
$ -
|
|
$
(1,496)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
Contribution:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in (losses) earnings of unconsolidated affiliates
|
|
$
(1,144)
|
|
$ 2,295
|
|
$ 1,151
|
|
$
(1,496)
|
|
$ -
|
|
$
(1,496)
|
Depreciation
and amortization
|
|
|
|
1,689
|
|
1,771
|
|
3,460
|
|
1,635
|
|
-
|
|
1,635
|
Interest
expense
|
|
|
|
2,518
|
|
203
|
|
2,721
|
|
2,305
|
|
-
|
|
2,305
|
Income
taxes
|
|
|
|
(267)
|
|
-
|
|
(267)
|
|
(577)
|
|
-
|
|
(577)
|
EBITDA Contribution
|
|
|
|
$ 2,796
|
|
$ 4,269
|
|
$ 7,065
|
|
$ 1,867
|
|
$ -
|
|
$ 1,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
Contribution:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in (losses) earnings of unconsolidated affiliates
|
|
$
(1,144)
|
|
$ 2,295
|
|
$ 1,151
|
|
$
(1,496)
|
|
$ -
|
|
$
(1,496)
|
Depreciation
and amortization
|
|
|
|
1,689
|
|
1,771
|
|
3,460
|
|
1,635
|
|
-
|
|
1,635
|
FFO
Contribution
|
|
|
|
$ 545
|
|
$ 4,066
|
|
$ 4,611
|
|
$ 139
|
|
$ -
|
|
$ 139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spread
over
|
|
|
|
|
Debt
|
|
Interest Rate
|
|
LIBOR
|
|
Loan
Amount
|
|
Maturity
(a)
|
Hotel
del Coronado
|
|
|
|
|
|
|
|
|
CMBS
Mortgage and Mezzanine
|
|
5.80%
(b)
|
|
480 bp
(b)
|
|
$
425,000
|
|
March
2016
|
Cash
and cash equivalents
|
|
|
|
|
|
(19,506)
|
|
|
Net
Debt
|
|
|
|
|
|
$
405,494
|
|
|
|
|
|
|
|
|
|
|
|
Fairmont
Scottsdale Princess
|
|
|
|
|
|
|
|
|
CMBS
Mortgage
|
|
0.60%
|
|
36 bp
|
|
$
133,000
|
|
April
2015
|
Cash
and cash equivalents
|
|
|
|
|
|
(3,051)
|
|
|
Net
Debt
|
|
|
|
|
|
$
129,949
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes extension options.
|
|
|
|
|
|
|
|
|
|
(b)
Subject to a 1% LIBOR floor.
|
|
|
Effective
|
|
|
|
|
|
|
Caps
|
|
Date
|
|
LIBOR
Cap Rate
|
|
Notional
Amount
|
|
Maturity
|
Hotel
del Coronado
|
|
|
|
|
|
|
|
|
CMBS
Mortgage and Mezzanine Loan Caps
|
|
February 2011
|
|
2.00%
|
|
$
425,000
|
|
February 2013
|
CMBS
Mortgage and Mezzanine Loan Caps
|
|
February 2013
|
|
2.50%
|
|
$
425,000
|
|
March
2013
|
|
|
|
|
|
|
|
|
|
Fairmont
Scottsdale Princess
|
|
|
|
|
|
|
|
|
CMBS
Mortgage Loan Cap
|
|
June
2011
|
|
4.00%
|
|
$
133,000
|
|
December 2013
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
Leasehold
Information
|
(in
thousands)
|
|
|
|
|
|
Three Months Ended
|
|
March 31,
|
|
2012
|
|
2011
|
|
|
|
|
Paris Marriott (a):
|
|
|
|
Property EBITDA
|
$ -
|
|
$ 3,249
|
Revenue (b)
|
$ -
|
|
$ 3,249
|
|
|
|
|
Lease
expense
|
-
|
|
(3,051)
|
Less:
Deferred gain on sale-leaseback
|
-
|
|
(1,152)
|
Adjusted lease expense
|
-
|
|
(4,203)
|
|
|
|
|
EBITDA contribution from leasehold
|
$ -
|
|
$ (954)
|
|
|
|
|
Marriott Hamburg:
|
|
|
|
Property EBITDA
|
$ 1,400
|
|
$ 1,456
|
Revenue (b)
|
$ 1,165
|
|
$ 1,215
|
|
|
|
|
Lease
expense
|
(1,168)
|
|
(1,196)
|
Less:
Deferred gain on sale-leaseback
|
(51)
|
|
(53)
|
Adjusted lease expense
|
(1,219)
|
|
(1,249)
|
|
|
|
|
EBITDA contribution from leasehold
|
$ (54)
|
|
$ (34)
|
|
|
|
|
Total Leaseholds:
|
|
|
|
Property EBITDA
|
$ 1,400
|
|
$ 4,705
|
Revenue (b)
|
$ 1,165
|
|
$ 4,464
|
|
|
|
|
Lease
expense
|
(1,168)
|
|
(4,247)
|
Less:
Deferred gain on sale-leasebacks
|
(51)
|
|
(1,205)
|
Adjusted lease expense
|
(1,219)
|
|
(5,452)
|
|
|
|
|
EBITDA contribution from leaseholds
|
$ (54)
|
|
$ (988)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
Security Deposit (c):
|
2012
|
|
2011
|
Marriott Hamburg
|
$ 2,535
|
|
$ 2,462
|
|
|
|
|
(a) On
April 6, 2011, we sold our leasehold interest in the Paris Marriott.
The results of operations for the Paris Marriott have been classified
as discontinued operations for all periods presented.
|
|
|
(b)
For the three months ended March 31, 2011, Revenue for the Paris
Marriott represents Property EBITDA. For the three months ended March
31, 2012 and 2011, Revenue for the Marriott Hamburg represents lease
revenue.
|
(c)
The security deposit is recorded in other assets on the consolidated
balance sheets.
|
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Non-GAAP Financial Measures
We present five non-GAAP financial measures that we believe
are useful to management and investors as key measures of our operating
performance: Funds from Operations (FFO); FFO - Fully Diluted;
Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation
and Amortization (EBITDA); and Comparable EBITDA.
EBITDA represents net income (or loss) attributable to SHR
common shareholders excluding: (i) interest expense, (ii) income taxes,
including deferred income tax benefits and expenses applicable to our
foreign subsidiaries and income taxes applicable to sale of assets;
(iii) depreciation and amortization; and (iv) preferred stock
dividends. EBITDA also excludes interest expense, income taxes and
depreciation and amortization of our unconsolidated affiliates. EBITDA
is presented on a full participation basis, which means we have assumed
conversion of all redeemable noncontrolling interests of our operating
partnership into our common stock. We believe this treatment of
noncontrolling interests provides useful information for management and
our investors and appropriately considers our current capital
structure. We also present Comparable EBITDA, which eliminates the
effect of realizing deferred gains on our sale leasebacks, as well as
the effect of gains or losses on sales of assets, early extinguishment
of debt, impairment losses, foreign currency exchange gains or losses
and other non-cash charges, such as the Value Creation Plan expense. We
believe EBITDA and Comparable EBITDA are useful to management and
investors in evaluating our operating performance because they provide
management and investors with an indication of our ability to incur and
service debt, to satisfy general operating expenses, to make capital
expenditures and to fund other cash needs or reinvest cash into our
business. We also believe they help management and investors
meaningfully evaluate and compare the results of our operations from
period to period by removing the impact of our asset base (primarily
depreciation and amortization) from our operating results. Our
management also uses EBITDA and Comparable EBITDA as measures in
determining the value of acquisitions and dispositions.
We compute FFO in accordance with standards established by the
National Association of Real Estate Investment Trusts, or NAREIT, with
the exception of impairment of depreciable real estate. NAREIT adopted
a definition of FFO in order to promote an industry-wide standard
measure of REIT operating performance. NAREIT defines FFO as net income
(or loss) (computed in accordance with GAAP) excluding losses or gains
from sales of depreciable property, impairment of depreciable real
estate, real estate-related depreciation and amortization, and our
portion of these items related to unconsolidated affiliates. We also
present FFO - Fully Diluted, which is FFO plus income or loss on income
attributable to redeemable noncontrolling interests in our operating
partnership. We also present Comparable FFO, which is FFO - Fully
Diluted excluding the impact of any gains or losses on early
extinguishment of debt, impairment losses, foreign currency exchange
gains or losses and other non-cash charges, such as the Value Creation
Plan expense. We believe that the presentation of FFO, FFO - Fully
Diluted and Comparable FFO provides useful information to management
and investors regarding our results of operations because they are
measures of our ability to fund capital expenditures and expand our
business. In addition, FFO is widely used in the real estate industry
to measure operating performance without regard to items such as
depreciation and amortization. We also present Comparable FFO per
diluted share as a non-GAAP measure of our performance. We calculate
Comparable FFO per diluted share for a given operating period as our
Comparable FFO (as defined above) divided by the weighted average of
fully diluted shares outstanding. Comparable FFO per diluted share, in
accordance with NAREIT, is adjusted for the effects of dilutive
securities. Dilutive securities may include shares granted under
share-based compensation plans, operating partnership units and
exchangeable debt securities. No effect is shown for securities that
are anti-dilutive.
We caution investors that amounts presented in accordance with
our definitions of FFO, FFO - Fully Diluted, Comparable FFO, EBITDA,
and Comparable EBITDA may not be comparable to similar measures
disclosed by other companies, since not all companies calculate these
non-GAAP measures in the same manner. FFO, FFO - Fully Diluted,
Comparable FFO, EBITDA, and Comparable EBITDA should not be considered
as an alternative measure of our net income (or loss) or operating
performance. FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and
Comparable EBITDA may include funds that may not be available for our
discretionary use due to functional requirements to conserve funds for
capital expenditures and property acquisitions and other commitments
and uncertainties. Although we believe that FFO, FFO - Fully Diluted,
Comparable FFO, EBITDA, and Comparable EBITDA can enhance your
understanding of our financial condition and results of operations,
these non-GAAP financial measures, when viewed individually, are not
necessarily a better indicator of any trend as compared to comparable
GAAP measures such as net income (or loss) attributable to SHR common
shareholders. In addition, you should be aware that adverse economic
and market conditions might negatively impact our cash flow. We have
provided a quantitative reconciliation of FFO, FFO - Fully Diluted,
Comparable FFO, EBITDA, and Comparable EBITDA to the most directly
comparable GAAP financial performance measure, which is net income (or
loss) attributable to SHR common shareholders.
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Loss Attributable to SHR Common Shareholders to EBITDA and
Comparable EBITDA
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Net
loss attributable to SHR common shareholders
|
|
$
(31,516)
|
|
$
(35,407)
|
Depreciation
and amortization
|
|
|
25,490
|
|
30,605
|
Interest
expense
|
|
|
19,605
|
|
19,548
|
Income
taxes - continuing operations
|
|
465
|
|
(1,648)
|
Income
taxes - discontinued operations
|
|
-
|
|
359
|
Noncontrolling
interests
|
|
|
(117)
|
|
(138)
|
Adjustments
from consolidated affiliates
|
|
(1,257)
|
|
(1,329)
|
Adjustments
from unconsolidated affiliates
|
|
6,682
|
|
3,890
|
Preferred
shareholder dividends
|
|
|
6,041
|
|
7,721
|
EBITDA
|
|
|
25,393
|
|
23,601
|
Realized
portion of deferred gain on sale-leaseback - continuing operations
|
|
(51)
|
|
(53)
|
Realized
portion of deferred gain on sale-leaseback - discontinued operations
|
|
-
|
|
(1,152)
|
Gain
on sale of assets - continuing operations
|
|
-
|
|
(2,640)
|
Gain
on sale of assets - discontinued operations
|
|
-
|
|
(14)
|
Foreign
currency exchange loss (gain) - continuing operations (a)
|
|
5
|
|
(139)
|
Foreign
currency exchange gain - discontinued operations (a)
|
|
-
|
|
(58)
|
Adjustment
for Value Creation Plan
|
|
|
7,939
|
|
9,181
|
Comparable
EBITDA
|
|
|
$
33,286
|
|
$
28,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Foreign
currency exchange gains or losses applicable to third-party and
inter-company debt and certain balance sheet items held by
|
|
|
foreign
subsidiaries.
|
|
|
|
|
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Loss Attributable to SHR Common Shareholders to
|
Funds
From Operations (FFO), FFO - Fully Diluted and Comparable FFO
|
(in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Net
loss attributable to SHR common shareholders
|
|
$
(31,516)
|
|
$
(35,407)
|
Depreciation
and amortization
|
|
25,490
|
|
30,605
|
Corporate
depreciation
|
|
|
(265)
|
|
(299)
|
Gain
on sale of assets - continuing operations
|
|
-
|
|
(2,640)
|
Gain
on sale of assets - discontinued operations
|
|
-
|
|
(14)
|
Realized
portion of deferred gain on sale-leaseback - continuing operations
|
|
(51)
|
|
(53)
|
Realized
portion of deferred gain on sale-leaseback - discontinued operations
|
|
-
|
|
(1,152)
|
Deferred
tax expense on realized portion of deferred gain on sale-leasebacks
|
|
-
|
|
359
|
Noncontrolling
interests adjustments
|
|
(133)
|
|
(157)
|
Adjustments
from consolidated affiliates
|
|
(667)
|
|
(1,561)
|
Adjustments
from unconsolidated affiliates
|
|
3,764
|
|
1,839
|
FFO
|
|
|
|
(3,378)
|
|
(8,480)
|
|
Redeemable
noncontrolling interests
|
|
16
|
|
19
|
FFO -
Fully Diluted
|
|
|
(3,362)
|
|
(8,461)
|
Non-cash
mark to market of interest rate swaps
|
|
(1,530)
|
|
(4,366)
|
Foreign
currency exchange loss (gain) - continuing operations (a)
|
|
5
|
|
(139)
|
Foreign
currency exchange gain - discontinued operations (a)
|
|
-
|
|
(58)
|
Adjustment
for Value Creation Plan
|
|
7,939
|
|
9,181
|
Comparable
FFO
|
|
|
$ 3,052
|
|
$
(3,843)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
FFO per diluted share
|
|
$ 0.02
|
|
$
(0.02)
|
Weighted
average diluted shares
|
|
188,787
|
|
157,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Foreign
currency exchange gains or losses applicable to third-party and
inter-company debt and certain balance sheet items held by foreign subsidiaries.
|
|
|
|
|
|
|
|
|
Strategic
Hotels & Resorts, Inc. and Subsidiaries (SHR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Summary
|
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
|
|
|
Debt
|
|
|
Interest
Rate
|
|
Spread
(a)
|
|
Amount
|
|
Maturity
(b)
|
Hyatt
Regency La Jolla
|
|
|
1.24%
|
|
100 bp
|
|
$
97,500
|
|
September
2012
|
North
Beach Venture
|
|
|
5.00%
|
|
Fixed
|
|
1,476
|
|
January
2013
|
Marriott
London Grosvenor Square (c)
|
|
|
2.13%
|
|
110 bp
(c)
|
|
115,454
|
|
October
2013
|
Bank
credit facility
|
|
|
3.24%
|
|
300 bp
|
|
59,000
|
|
June
2015
|
Four
Seasons Washington, D.C.
|
|
|
3.39%
|
|
315 bp
|
|
130,000
|
|
July
2016
|
Westin
St. Francis
|
|
|
6.09%
|
|
Fixed
|
|
218,579
|
|
June
2017
|
Fairmont
Chicago
|
|
|
6.09%
|
|
Fixed
|
|
97,119
|
|
June
2017
|
InterContinental
Miami
|
|
|
3.74%
|
|
350 bp
|
|
85,000
|
|
July
2018
|
Loews
Santa Monica Beach Hotel
|
|
|
4.09%
|
|
385 bp
|
|
110,000
|
|
July
2018
|
InterContinental
Chicago
|
|
|
5.61%
|
|
Fixed
|
|
145,000
|
|
August
2021
|
|
|
|
|
|
|
|
$
1,059,128
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Spread over LIBOR (0.24% at March 31, 2012).
|
|
|
|
|
|
|
|
|
(b)
Includes extension options.
|
|
|
|
|
|
|
|
|
|
(c)
Principal balance of GBP 72,100,000 at March 31, 2012. Spread over
three-month GBP LIBOR (1.03% at March 31, 2012).
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
and European Interest Rate Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Pay Rate
|
|
Notional
|
|
|
|
|
Swap
Effective Date
|
|
|
Against
LIBOR
|
|
Amount
|
|
Maturity
|
|
|
February
2010
|
|
|
4.90%
|
|
$
100,000
|
|
September
2014
|
|
|
February
2010
|
|
|
4.96%
|
|
100,000
|
|
December
2014
|
|
|
December
2010
|
|
|
5.23%
|
|
100,000
|
|
December
2015
|
|
|
February
2011
|
|
|
5.27%
|
|
100,000
|
|
February
2016
|
|
|
|
|
|
5.09%
|
|
$
400,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Pay Rate
|
|
Notional
|
|
|
|
|
Swap
Effective Date
|
|
|
Against
GBP LIBOR
|
|
Amount
|
|
Maturity
|
|
|
October
2007
|
|
|
5.72%
|
|
GBP
72,100
|
|
October
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
March 31, 2012, future scheduled debt principal payments (including
extension options) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years
ending December 31,
|
|
|
Amount
|
|
|
|
|
|
|
2012
|
|
|
$
105,494
|
|
|
|
|
|
|
2013
|
|
|
126,147
|
|
|
|
|
|
|
2014
|
|
|
13,872
|
|
|
|
|
|
|
2015
|
|
|
74,046
|
|
|
|
|
|
|
2016
|
|
|
145,861
|
|
|
|
|
|
|
Thereafter
|
|
|
593,708
|
|
|
|
|
|
|
|
|
|
$
1,059,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
of fixed rate debt including U.S. and European swaps
|
|
|
|
92.3%
|
|
|
Weighted
average interest rate including U.S. and European swaps (d)
|
|
|
|
6.60%
|
|
|
Weighted
average maturity of fixed rate debt (debt with maturity of greater than
one year)
|
|
4.56
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
Excludes the amortization of deferred financing costs and the
amortization of the interest rate swap costs.
|
|