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| We hope you will join us for the third quarter call on Thursday, November 20, 2014 at 1:00 pm Central Time. THIRD QUARTER UPDATE CALL THURSDAY NOV. 20 QUARTER ENDED JUNE 30, 2014 I Financial Highlights (in thousands, except per share data) 3 mos. ended June 30, 2014 3 mos. ended June 30, 2013 6 mos. ended June 30, 2014 6 mos. ended June 30, 2013 FFO $ 1,002 $ 1,123 $ 362 $ (1,752) FFO per share $ 0.02 $ 0.02 $ 0.01 $ (0.03) Distributions declared $ – $ – $ – $ – Distributions per share $ – $ – $ – $ – (in thousands) As of Jun. 30, 2014 As of Dec. 31, 2013 Total assets $ 316,215 $ 322,120 Total liabilities $ 163,668 $ 162,750 The Chase Park Plaza Hotel in St. Louis, Missouri Conclusion We continue to execute our strategic plan to preserve and enhance value in the portfolio and maintain the stability of the balance sheet. We routinely evaluate market conditions with an eye toward potential exit options that may include an orderly and incremental liquidation of our assets or other liquidation opportunities. We continue to believe that this approach will result in a more favorable outcome for shareholders, as opposed to selling the Company’s entire portfolio of assets in the near-term. We will send further details about this call in your next quarterly statement. 3 Reconciliation of FFO to Net Loss (in thousands, except per share amounts) 3 mos. ended Jun. 30, 2014 3 mos. ended Jun. 30, 2013 6 mos. ended June 30, 2014 6 mos. ended June 30, 2013 Net loss $ (2,327) $ (2,506) $ (6,500) $ (9,595) Adjustments for1: Impairment charge2 – – – 244 Real estate depreciation and amortization3 3,805 3,724 7,338 7,694 Gain on sale of real estate (476) (95) (476) (95) FFO4 $ 1,002 $ 1,123 $ 362 $ (1,752) GAAP weighted average shares: Basic and diluted 56,500 56,500 56,500 56,500 FFO per share $ 0.02 $ 0.02 $ 0.01 $ (0.03) Net loss per share $ (0.04) $ (0.05) $ (0.11) $ (0.17) 1 Reflects the adjustments for continuing operations, as well as discontinued operations. 2 Includes impairment of our investments in unconsolidated entities which resulted from a measurable decrease in the fair value of the depreciable real estate held by the joint venture or partnership. 3 Real estate depreciation and amortization includes our consolidated real estate depreciation and amortization expense, as well as our pro rata share of those unconsolidated investments that we acccount for under the equity method of accounting and the noncontrolling interest adjustment for the third-party partners’ share of the real estate depreciation and amortization. 4 Funds from operations (FFO) is defined by the National Association of Real Estate Investment Trusts as net income (loss), computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains or (losses) from sales of property, plus depreciation and amortization on real estate assets, and after adjustments for unconsolidated partnerships, joint ventures, and subsidiaries. FFO should not be considered as an alternative to net income (loss), or as indications of our liquidity, nor are they either indicative of funds available to meet our cash needs, including our ability to fund distributions. FFO should be reviewed in connection with other GAAP measurements. A reconciliation of FFO and FFO-per-share to net income can be found in our second quarter Form 10-Q on file with the SEC. |