Exhibit 99.1
| | | |
For Immediate Release
Contact:
Bruce Riggins
VP, Strategic Planning & Analysis
(703) 812-7223 | | Jerry Daly or Carol McCune
Daly Gray Public Relations (Media)
(703) 435-6293 |
MeriStar Hospitality Corporation Reports First-Quarter 2004 Results
ARLINGTON, Va., May 6, 2004—MeriStar Hospitality Corporation (NYSE: MHX), one of the nation’s largest hotel real estate investment trusts (REIT), today announced financial results for the first quarter ended March 31, 2004:
| | | | | | | | | |
| | | 1Q 2004*
| | 1Q 2003*
|
| Net loss | | $ | (40 | ) | | $ | (70 | ) |
| Net loss per share | | $ | (0.59 | ) | | $ | (1.53 | ) |
| Total revenues from continuing operations | | $ | 208 | | | $ | 204 | |
| Funds from operations (FFO)** | | $ | (10 | ) | | $ | (44 | ) |
| FFO per share | | $ | (0.14 | ) | | $ | (0.96 | ) |
| Adjusted FFO** | | $ | 2 | | | $ | 11 | |
| Adjusted FFO per share | | $ | 0.03 | | | $ | 0.22 | |
| Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and other items)** | | $ | 38 | | | $ | 47 | |
| | | |
| |
| * | | in millions, except per share data |
| |
| ** | | FFO, Adjusted FFO, and Adjusted EBITDA are non-GAAP financial measures and should not be considered as alternatives to any measures of operating results under GAAP. See note (b) for further discussion of these non-GAAP financial measures. |
First-quarter 2004 comparable revenue per available room (RevPAR) for the company’s 73 core hotels rose 2.7 percent to $73.70. Occupancy increased 1.4 percent to 67.4 percent and average daily rate (ADR) increased 1.2 percent to $109.27.
“We gained solid momentum throughout the quarter, and we believe we are now in a period of sustained recovery,” said Paul W. Whetsell, chairman and chief executive officer. “We
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were pleased with the RevPAR results we achieved in the quarter as we commenced a significant renovation program and completed brand conversions on three of our hotels. Although the conversions impacted our results in the first quarter, we expect to generate significant returns from these conversions and anticipate strong results from these hotels going forward. Excluding the converted hotels and two additional hotels planned for conversion, RevPAR increased 4.4 percent over the first quarter of 2003. Looking ahead, we see further operating improvements throughout our portfolio as the economic recovery gains a solid footing and the business transient traveler begins to return in force.”
Whetsell noted that the company’s hotel operating margins continued under pressure in the first quarter. “Margins were down due to unfavorable cost comparisons as a result of aggressive cost-cutting last year prior to the war in Iraq. Although operating margins will be somewhat affected by these difficult comparisons in the second quarter, we expect to see increases in margins in the second half of 2004 as RevPAR continues to improve.”
Dispositions
In the 2004 first quarter, the company sold 11 hotels with 2,497 rooms for total gross proceeds of $74 million. Two additional hotels with 371 rooms were sold to date in the second quarter for gross proceeds of $18 million. Since the beginning of 2003, the company has sold 28 non-core assets aggregating 5,716 rooms for $220 million in total gross proceeds.
“Our asset disposition program has been very successful,” Whetsell said. “Through it, we have been able to reposition our portfolio to a mix of higher yielding hotels and reduce our
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leverage. We have six assets remaining in our non-core disposition program with expected proceeds of $45 million to $50 million.”
Acquisitions
“We are exceptionally pleased to be active in the acquisition arena, recently announcing the purchase of the Ritz-Carlton Pentagon City, which is on target to close in May. We have an active pipeline of acquisition opportunities, but we will continue to be highly selective,” Whetsell said. “This high quality hotel is very much in line with the type of assets we will look to acquire—larger properties that will be accretive to earnings, located in major urban markets or high-end resort destinations with high barriers to entry, strong brand affiliations and significant meeting space.”
Renovation Program
In the 2004 first quarter, the company invested approximately $24 million in capital expenditures. “Our plan to dramatically enhance the quality of our core properties is progressing smoothly,” Whetsell noted. “Our new streamlined design and purchasing program is achieving expected savings of 10 to 15 percent for furniture, fixtures and equipment. The program is also dramatically reducing the time required to renovate hotels, allowing us to improve the quality of our hotels faster to take advantage of the rebound in the economy.”
To date in 2004, the company has completed four of 10 planned brand conversions. “The new brand affiliations are better targeted to the customer profiles in their respective markets, and, we believe, will generate higher revenues or will produce a more beneficial cost structure.”
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Operating Performance in Significant Markets
The company reported positive year-over-year RevPAR gains in eight of its 12 major markets in the 2004 first quarter. RevPAR increases in key markets included a 12.7 percent gain in the Mid-Atlantic, a 10.5 percent gain in Southern California and a 6.9 percent gain in Northern California, markets which together account for 22 percent of total revenues. RevPAR in Houston increased 17.0 percent due to the company’s hotels benefiting from Super Bowl activities. “We are seeing meaningful rebounds in key urban markets as the economic recovery gains momentum,” Whetsell said.
Comparable RevPAR contributions in significant markets for the 2004 first quarter were:
| | | | | | | | | |
| | | RevPAR | | Percentage of |
| | | Change
| | Total Revenue
|
| Houston | | | 17.0 | % | | | 5.0 | % |
| Mid-Atlantic | | | 12.7 | % | | | 11.7 | % |
| Colorado | | | 10.7 | % | | | 2.1 | % |
| Southern California | | | 10.5 | % | | | 6.2 | % |
| Northern California | | | 6.9 | % | | | 4.3 | % |
| Tampa/Clearwater | | | 3.8 | % | | | 6.3 | % |
| Atlanta | | | 1.4 | % | | | 3.1 | % |
| Southwest Florida | | | 1.1 | % | | | 12.1 | % |
| New Jersey | | | -2.0 | % | | | 5.4 | % |
| Orlando | | | -3.5 | % | | | 6.0 | % |
| Dallas | | | -3.6 | % | | | 2.1 | % |
| Chicago | | | -13.2 | % | | | 2.8 | % |
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Capital Structure
The company completed the following capital markets transactions during the 2004 first quarter:
| | • | | The company repurchased $72 million of senior notes, with an additional $14 million repurchased to date in the second quarter. |
| |
| | • | | The company retired $38 million of senior subordinated notes and an additional $11 million to date in the second quarter. The company intends to retire the remaining senior subordinated notes by the end of the third quarter. |
“We continued to improve our capital structure in the first quarter, maintaining liquidity while reducing our leverage,” said Donald D. Olinger, chief financial officer. “We have reduced our overall debt by $134 million since year end. We now have only minimal maturities before 2008. As of March 31, 2004, we had $240 million of cash and $50 million available on our secured revolving credit facility.
“We raised an additional $73 million in April through an offering of 12.0 million common shares, and we expect to use the proceeds to complete additional hotel acquisitions. We anticipate financing a portion of our acquisitions with mortgage debt, which will allow us to benefit from the current low interest rate environment.”
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Long-Term Debt
Long-term debt as of March 31, 2004 and December 31, 2003 consisted of the following:
| | | | | | | | | | | | | | | | | |
| | | | | | | Interest | | | | |
| | | Maturity
| | Rate
| | 3/31/04
| | 12/31/03
|
| Convertible Notes | | | 2004 | | | | 4.75 | % | | $ | 3,705 | | | $ | 3,705 | |
| Senior Subordinated Notes | | | 2007 | | | | 8.75 | % | | | 45,038 | | | | 82,768 | |
| Senior Unsecured Notes | | | 2008 | | | | 9.00 | % | | | 281,520 | | | | 299,459 | |
| Senior Unsecured Notes | | | 2009 | | | | 10.50 | % | | | 230,768 | | | | 248,848 | |
| CMBS | | | 2009 | | | | 8.01 | % | | | 307,566 | | | | 309,035 | |
| Convertible Notes | | | 2010 | | | | 9.50 | % | | | 170,000 | | | | 170,000 | |
| Senior Unsecured Notes | | | 2011 | | | | 9.13 | % | | | 361,738 | | | | 396,437 | |
| Mortgage Debt | | | Various | | | | 9.00 | % | | | 26,546 | | | | 27,011 | |
| CMBS | | | 2013 | | | | 6.88 | % | | | 100,397 | | | | 100,765 | |
| | | | | | | | | | | |
| | | |
| |
| | | | | | | | | | | $ | 1,527,278 | | | $ | 1,638,028 | |
| Average Maturity | | 5.60years | | | | | | | | | | | | |
| Average Interest Rate | | | | | | | 8.9 | % | | | | | | | | |
Outlook
“We remain very optimistic about 2004, and are gaining confidence with each passing month,” Whetsell said. “For the second quarter, we expect solid RevPAR gains to result from continued strength in the economy.”
The company provides the following range of estimates for the second quarter and full-year 2004, based on a projected second-quarter 2004 RevPAR increase of 4.0 percent to 5.0 percent and full-year 2004 RevPAR increase of 4.0 percent to 5.0 percent. This guidance includes the effect of the Ritz-Carlton Pentagon City acquisition, one additional acquisition from the proceeds of the recent $73 million equity offering, $50 million of additional senior note repurchases, and $100 million of new mortgage debt financing for hotel acquisitions.
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| | • | | Net loss of $(3) million to $(6) million for the second quarter and $(80) million to $(87) million for the full year; |
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| | • | | Net loss per diluted share of $(0.04) to $(0.07) for the second quarter and $(0.98) to $(1.07) for the full year; |
| |
| | • | | FFO per diluted share (a) of $0.20 to $0.23 for the second quarter and $0.16 to $0.25 for the full year; |
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| | • | | Adjusted FFO per diluted share (a) of $0.24 to $0.27 for the second quarter and $0.38 to $0.47 for the full year; |
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| | • | | Adjusted EBITDA (a) of $52 million to $55 million for the second quarter and $160 million to $168 million for the full year. |
| |
| | • | | Adjusted EBITDA, Adjusted FFO and FFO are non-GAAP financial measures that should not be considered as alternatives to any measures of operating results under GAAP. See note (b) for further discussion of these non-GAAP financial measures. |
(a) See reconciliations of net loss to FFO per diluted share and Adjusted FFO per diluted share and net loss to Adjusted EBITDA included in the tables of this press release. Forecasted net loss does not include any possible future losses on asset impairments or gains or losses on the sales of assets.
(b) This press release includes various references to FFO, Adjusted FFO, and Adjusted EBITDA. Substantially all of our non-current assets consist of real estate, and in accordance with GAAP, those assets are subject to straight-line depreciation, which reflects the assumption that the value of real estate assets, other than land, will decline ratably over time. That assumption is often not true with respect to the actual market values of real estate assets (and, in particular, hotels), which fluctuate based on economic, market and other conditions. As a result, management and many industry investors believe the presentation of GAAP operating measures for real estate companies to be more informative and useful when other measures, adjusted for depreciation and amortization, are also presented.
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In an effort to address these concerns, NAREIT adopted a definition of Funds From Operations, or FFO. NAREIT defines FFO as net income (computed in accordance with GAAP) excluding gains (or losses) from sales of real estate, real estate-related depreciation and amortization, and after comparable adjustments for our portion of these items related to unconsolidated partnerships and joint ventures. Extraordinary items and cumulative effect of changes in accounting principles as defined by GAAP are also excluded from the calculation of FFO. As defined by NAREIT, FFO also does not include reductions from asset impairment charges. The SEC, however, recommends that FFO include the effect of asset impairment charges, which presentation we have adopted for all historical presentations of FFO. We believe FFO is an indicative measure of our operating performance due to the significance of our hotel real estate assets, and that it can be used to measure our ability to service debt, fund capital expenditures, and expand our business. We also use FFO in our annual budget process.
Adjusted FFO represents FFO excluding the effects of losses on early extinguishments of debt, write-offs of deferred financing costs and, in accordance with the NAREIT definition of FFO, asset impairment charges. We exclude the effects of losses on early extinguishments of debt, write-offs of deferred financing costs and asset impairment charges because we believe that including them in Adjusted FFO does not fully reflect the operating performance of our remaining assets. We believe Adjusted FFO is useful for the same reasons we believe that FFO is useful, but we also believe that Adjusted FFO enables us and the investor to consider our operating performance without considering the items we exclude from our definition of Adjusted FFO, which have no cash effect in the periods considered. We also use Adjusted FFO in our annual budget process.
EBITDA represents consolidated earnings before interest, income taxes, depreciation and amortization and includes operations from the assets included in discontinued operations. We further adjust EBITDA for the effect of capital market transactions that would result in a gain or loss on early extinguishments of debt, as well as the earnings effect of asset dispositions and any impairment assessments, resulting in the measure that we refer to as “Adjusted EBITDA.” We exclude the effect of gains or losses on early extinguishments of debt as well as the earnings effect of asset dispositions and impairment assessments because we believe that including them in Adjusted EBITDA does not fully reflect the operating performance of our remaining assets.
We also believe Adjusted EBITDA provides useful information to investors regarding our financial condition and results of operations because Adjusted EBITDA is useful in evaluating our operating performance and our capacity to incur and service debt, fund capital expenditures and expand our business. Furthermore, we use Adjusted EBITDA to provide a measure of unleveraged cash flow that can be isolated on an asset by asset basis, to determine overall property performance and to measure our ability to service debt. We believe that the rating agencies and a number of our lenders also use Adjusted EBITDA for those purposes. We also use Adjusted EBITDA as one measure in determining the value of acquisitions and dispositions and, like FFO, it is also widely used in our annual budget process.
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MeriStar will hold a conference call to discuss its first-quarter results today, May 6, at 10 a.m. Eastern time. Interested parties may visit the company’s Web site at www.meristar.com and click on Investor Relations and then the webcast link.
Interested parties also may listen to an archived webcast of the conference call on the Web site, or may dial (800) 405-2236, reference number 575502, to hear a telephone replay. The telephone replay will be available through midnight on Wednesday, May 12, 2004.
Arlington, Va.-based MeriStar Hospitality Corporation owns 79 principally upscale, full-service hotels in major markets and resort locations with 21,861 rooms in 23 states, the District of Columbia and Canada. The company owns hotels under such internationally known brands as Hilton, Sheraton, Marriott, Westin, Doubletree and Radisson. For more information about MeriStar Hospitality Corporation, visit the company’s Web site:www.meristar.com.
This press release contains forward-looking statements about MeriStar Hospitality Corporation, including those statements regarding future operating results, the timing and composition of revenues and expected proceeds from asset sales, among others. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including the following: the continuing uncertainty of the national economy; economic conditions generally and the real estate market specifically; the effect of threats of terrorism and increased security precautions on travel patterns and demand for hotels; the threatened or actual outbreak of hostilities and international political instability; governmental actions; legislative/regulatory changes, including changes to laws governing the taxation of REITs; level of proceeds from asset sales; cash available for capital expenditures; availability of capital; ability to refinance debt; rising interest rates; rising insurance premiums; competition; supply and demand for hotel rooms in our current and proposed market areas; other factors that may influence the travel industry, including health, safety and economic factors; and changes in generally accepted accounting principles, policies and guidelines applicable to REITs. Additional risks are discussed in the company’s filings with the Securities and Exchange Commission. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. These statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
MeriStar Hospitality Corporation
Statements of Operations
(Unaudited, in thousands, except per share amounts)
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2004 | | 2003 |
| Revenue: | | | | | | | | |
| Hotel operations: | | | | | | | | |
| Rooms | | $ | 135,666 | | | $ | 131,567 | |
| Food and beverage | | | 51,879 | | | | 52,176 | |
| Other hotel operations | | | 17,043 | | | | 16,647 | |
| Office rental, parking and other revenue | | | 2,970 | | | | 3,263 | |
| | | |
| | | |
| |
| Total revenue | | | 207,558 | | | | 203,653 | |
| Hotel operating expenses: | | | | | | | | |
| Rooms | | | 33,224 | | | | 31,209 | |
| Food and beverage | | | 38,881 | | | | 37,566 | |
| Other hotel operating expenses | | | 10,363 | | | | 9,505 | |
| Office rental, parking and other expenses | | | 585 | | | | 630 | |
| Other operating expenses: | | | | | | | | |
| General and administrative | | | 38,021 | | | | 34,681 | |
| Property operating costs | | | 31,488 | | | | 29,505 | |
| Depreciation and amortization | | | 26,218 | | | | 24,169 | |
| Property taxes, insurance and other | | | 17,061 | | | | 17,193 | |
| Loss on asset impairments | | | 1,238 | | | | — | |
| | | |
| | | |
| |
| Operating expenses | | | 197,079 | | | | 184,458 | |
| | | |
| | | |
| |
| Operating income | | | 10,479 | | | | 19,195 | |
| Minority interest | | | 946 | | | | 3,677 | |
| Interest expense, net | | | (34,380 | ) | | | (34,718 | ) |
| Loss on early extinguishments of debt | | | (5,923 | ) | | | — | |
| | | |
| | | |
| |
| Loss before income taxes and discontinued operations | | | (28,878 | ) | | | (11,846 | ) |
| Income tax benefit | | | 433 | | | | 175 | |
| | | |
| | | |
| |
| Loss from continuing operations | | | (28,445 | ) | | | (11,671 | ) |
| Discontinued operations: | | | | | | | | |
| Loss from discontinued operations before tax benefit | | | (11,980 | ) | | | (58,096 | ) |
| Income tax benefit | | | 180 | | | | 21 | |
| | | |
| | | |
| |
| Loss from discontinued operations | | | (11,800 | ) | | | (58,075 | ) |
| | | |
| | | |
| |
| Net loss | | $ | (40,245 | ) | | $ | (69,746 | ) |
| | | |
| | | |
| |
| Weighted average number of diluted shares of common stock outstanding | | | 68,640 | | | | 45,548 | |
| | | |
| | | |
| |
| Loss per diluted common share | | $ | (0.59 | ) | | $ | (1.53 | ) |
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| | | |
| |
| | | | | | | | | |
| Funds From Operations: | | Three Months Ended March 31, |
(in thousands, except per share amounts) | | 2004 | | 2003 |
| Net loss | | $ | (40,245 | ) | | $ | (69,746 | ) |
| Depreciation and amortization of real estate assets | | | 24,502 | | | | 27,613 | |
| Loss on disposal of assets | | | 6,946 | | | | — | |
| Minority interest to common OP unit holders | | | (996 | ) | | | (1,412 | ) |
| | | |
| | | |
| |
| Funds from operations as reported in SEC filings | | $ | (9,793 | ) | | $ | (43,545 | ) |
| | | |
| | | |
| |
| Weighted average number of shares of common stock outstanding | | | 68,640 | | | | 45,548 | |
| | | |
| | | |
| |
Funds from operations per share | | $ | (0.14 | ) | | $ | (0.96 | ) |
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| |
Funds From Operations, as adjusted: | | | | | | | | |
| Funds from operations as reported in SEC filings | | $ | (9,793 | ) | | $ | (43,545 | ) |
| Loss on asset impairments | | | 5,011 | | | | 56,677 | |
| Loss on early extinguishments of debt | | | 5,923 | | | | — | |
| Write off of deferred financing fees | | | 1,266 | | | | — | |
| Minority interest to common OP unit holders, assuming conversion | | | (91 | ) | | | (2,406 | ) |
| | | |
| | | |
| |
| Funds from operations, as adjusted | | $ | 2,316 | | | $ | 10,726 | |
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| |
| Weighted average number of shares of common stock and common OP units outstanding | | | 71,820 | | | | 49,033 | |
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| | | |
| |
Funds from operations per diluted share, as adjusted | | $ | 0.03 | | | $ | 0.22 | |
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| | | | | | | | | |
| EBITDA and Adjusted EBITDA are comprised of the following: | | Three Months Ended March 31, |
(in thousands) | | 2004 | | 2003 |
| Loss from continuing operations | | $ | (28,445 | ) | | $ | (11,671 | ) |
| Loss from discontinued operations | | | (11,800 | ) | | | (58,075 | ) |
| | | |
| | | |
| |
| Net loss | | $ | (40,245 | ) | | $ | (69,746 | ) |
| | | |
| | | |
| |
| Loss from continuing operations | | $ | (28,445 | ) | | $ | (11,671 | ) |
| Interest expense, net | | | 34,380 | | | | 34,718 | |
| Income tax benefit | | | (433 | ) | | | (175 | ) |
| Depreciation and amortization (a) | | | 26,218 | | | | 24,169 | |
| | | |
| | | |
| |
| EBITDA from continuing operations | | | 31,720 | | | | 47,041 | |
| Loss on asset impairments | | | 1,238 | | | | — | |
| Minority interest | | | (946 | ) | | | (3,677 | ) |
| Loss on early extinguishments of debt | | | 5,923 | | | | — | |
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| | | |
| |
| Adjusted EBITDA from continuing operations | | $ | 37,935 | | | $ | 43,364 | |
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| | | |
| |
| Loss from discontinued operations | | $ | (11,800 | ) | | $ | (58,075 | ) |
| Interest expense, net | | | 11 | | | | 158 | |
| Income tax benefit | | | (180 | ) | | | (21 | ) |
| Depreciation and amortization | | | 943 | | | | 4,825 | |
| | | |
| | | |
| |
| EBITDA from discontinued operations | | | (11,026 | ) | | | (53,113 | ) |
| Loss on asset impairments | | | 3,773 | | | | 56,677 | |
| Loss on disposal of assets | | | 6,946 | | | | — | |
| | | |
| | | |
| |
| Adjusted EBITDA from discontinued operations | | $ | (307 | ) | | $ | 3,564 | |
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| | | |
| |
| Adjusted EBITDA, total operations | | $ | 37,628 | | | $ | 46,928 | |
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| (a) | | Depreciation and amortization included the write-off of unamortized deferred financing costs totaling $1.3 million for the three months ended March 31, 2004 related to our early extinguishments of debt during this period. |
Operating Information for Core Assets (73 Properties) (b):
| | | | | | | | | |
| | | Three Months Ended March 31, |
| | | 2004 | | 2003 |
| Occupancy | | | 67.4 | % | | | 66.5 | % |
| ADR | | $ | 109.27 | | | $ | 107.97 | |
| RevPAR | | $ | 73.70 | | | $ | 71.76 | |
| (b) | | As of March 31, 2004, we owned 81 hotels. We have 73 hotels we consider our core assets. Eight assets remained in our disposition program, five of which are classified as held for sale and included in discontinued operations. |
Selected Balance Sheet Data:
(in thousands)
| | | | | | | | | |
| | | March 31, | | December 31, |
| | | 2004 | | 2003 |
| Common shares and operating partnership units outstanding | | | 76,200 | | | | 69,908 | |
| Property and equipment, net | | $ | 1,972,035 | | | $ | 2,035,720 | |
| Restricted cash | | | 44,656 | | | | 42,523 | |
| Cash and cash equivalents | | | 194,977 | | | | 230,884 | |
| Total assets | | | 2,376,025 | | | | 2,487,939 | |
| Long-term debt | | | 1,527,278 | | | | 1,638,028 | |
| Total stockholders’ equity | | | 653,640 | | | | 653,613 | |
MeriStar Hospitality Corporation
Reconciliation of 2004 forecasted net loss to funds from operations and funds from operations, as adjusted per diluted share and net loss to EBITDA and Adjusted EBITDA:
(in thousands, except per share amounts)
| | | | | | | | | |
| | | Three Months Ending June 30, 2004 Forecast |
| | | Low-end of range | | High-end of range |
| Forecasted funds from operations: | | | | | | | | |
| Forecasted net loss (c) | | $ | (5,883 | ) | | $ | (3,033 | ) |
| Adjustments to forecasted net loss: | | | | | | | | |
| Depreciation and amortization of real estate assets | | | 23,077 | | | | 23,077 | |
| Minority interest to common OP unit holders | | | (88 | ) | | | 20 | |
| | | |
| | | |
| |
| Funds from operations | | $ | 17,106 | | | $ | 20,064 | |
| | | |
| | | |
| |
| Forecasted funds from operations, as adjusted: | | | | | | | | |
| Funds from operations | | $ | 17,106 | | | $ | 20,064 | |
| Loss on early extinguishments of debt | | | 2,878 | | | | 2,878 | |
| Write off of deferred financing fees | | | 561 | | | | 561 | |
| | | |
| | | |
| |
| Funds from operations, as adjusted | | $ | 20,545 | | | $ | 23,503 | |
| | | |
| | | |
| |
| Weighted average number of diluted shares of common stock outstanding | | | 82,935 | | | | 82,935 | |
| Common OP units outstanding | | | 3,099 | | | | 3,099 | |
| | | |
| | | |
| |
| Weighted average number of diluted shares of common stock outstanding and common OP units | | | 86,034 | | | | 86,034 | |
| | | |
| | | |
| |
| Funds from operations per diluted share | | $ | 0.20 | | | $ | 0.23 | |
| | | |
| | | |
| |
| Funds from operations per diluted share, as adjusted | | $ | 0.24 | | | $ | 0.27 | |
| | | |
| | | |
| |
| Forecasted EBITDA and Adjusted EBITDA: | | | | | | | | |
| Forecasted net loss (c) | | $ | (5,883 | ) | | $ | (3,033 | ) |
| Interest expense, net | | | 30,251 | | | | 30,249 | |
| Write off of deferred financing fees | | | 561 | | | | 561 | |
| Income tax benefit | | | (46 | ) | | | (2 | ) |
| Depreciation and amortization | | | 24,327 | | | | 24,327 | |
| | | |
| | | |
| |
| EBITDA, total operations | | | 49,210 | | | | 52,102 | |
| Loss on early extinguishments of debt | | | 2,878 | | | | 2,878 | |
| Minority interest to common OP unit holders | | | (88 | ) | | | 20 | |
| | | |
| | | |
| |
| Adjusted EBITDA, total operations | | $ | 52,000 | | | $ | 55,000 | |
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| | | Year Ending December 31, 2004 Forecast |
| | | Low-end of range | | High-end of range |
| Forecasted funds from operations: | | | | | | | | |
| Forecasted net loss (c) | | $ | (87,329 | ) | | $ | (79,699 | ) |
| Adjustments to forecasted net loss: | | | | | | | | |
| Depreciation and amortization of real estate assets | | | 96,173 | | | | 96,173 | |
| Minority interest to common OP unit holders | | | (2,554 | ) | | | (2,272 | ) |
| Loss on disposal of assets | | | 6,946 | | | | 6,946 | |
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| Funds from operations | | $ | 13,236 | | | $ | 21,148 | |
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| Forecasted funds from operations, as adjusted: | | | | | | | | |
| Funds from operations | | $ | 13,236 | | | $ | 21,148 | |
| Loss on early extinguishments of debt | | | 11,403 | | | | 11,403 | |
| Loss on asset impairment | | | 5,011 | | | | 5,011 | |
| Write-off of deferred financing costs | | | 2,332 | | | | 2,332 | |
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| Funds from operations, as adjusted | | $ | 31,982 | | | $ | 39,894 | |
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| Weighted average number of diluted shares of common stock outstanding | | | 81,362 | | | | 81,362 | |
| Common OP units outstanding | | | 3,102 | | | | 3,102 | |
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| Weighted average number of diluted shares of common stock outstanding and common OP units | | | 84,464 | | | | 84,464 | |
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| Funds from operations per diluted share | | $ | 0.16 | | | $ | 0.25 | |
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| Funds from operations per diluted share, as adjusted | | $ | 0.38 | | | $ | 0.47 | |
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| Forecasted EBITDA and Adjusted EBITDA: | | | | | | | | |
| Forecasted net loss (c) | | $ | (87,329 | ) | | $ | (79,699 | ) |
| Interest expense, net | | | 123,981 | | | | 123,953 | |
| Write off of deferred financing fees | | | 2,332 | | | | 2,332 | |
| Income tax benefit | | | (1,246 | ) | | | (1,130 | ) |
| Depreciation and amortization | | | 101,315 | | | | 101,315 | |
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| EBITDA, total operations | | | 139,053 | | | | 146,771 | |
| Loss on early extinguishments of debt | | | 11,403 | | | | 11,403 | |
| Loss on asset impairment | | | 5,011 | | | | 5,011 | |
| Loss on disposal of assets | | | 6,946 | | | | 6,946 | |
| Minority interest to common OP unit holders | | | (2,413 | ) | | | (2,131 | ) |
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| Adjusted EBITDA, total operations | | $ | 160,000 | | | $ | 168,000 | |
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| (c) | | Forecasted net loss does not include any possible future losses on asset impairments or gains or losses on the sale of assets. |
