EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact: Mimi Hall
901.682.1360
RFS ANNOUNCES THIRD QUARTER RESULTS,
DIVIDEND PAYMENT
Memphis, Tennessee, November 1, 2001 - RFS Hotel Investors, Inc. (NYSE:RFS)
today announced funds from operations (FFO) for the third quarter ended
September 30, 2001, of $12.4 million, or $0.45 per share, compared to $19.0
million, or $0.70 per share, for the same quarter a year ago, a decline of 34.7%
in FFO. The comparable quarter of 2000 was the best quarter in the Company's
history and the decline this year was primarily attributable to a significant
fall-off in business in northern California, particularly since September 11.
FFO for the nine months ended September 30, 2001 was $44.3 million, or $1.61 per
share, compared to 2000 FFO of $50.7 million, or $1.87 per share, a decline of
12.6% in FFO.
THIRD QUARTER HIGHLIGHTS
- Comparable hotels revenue per available room (RevPAR) was down
12.3% for the third quarter. The following represents changes
in RevPAR as compared to the prior year comparable periods by
market segment:
RevPAR Change
-------------
Quarter Year to Date
------- ------------
Comparable Hotels 58 56
Full Service (22.0%) (6.1%)
Extended Stay (4.4%) 1.0%
Limited Service (4.6%) 1.4%
------ ------
Total (12.3%) (1.7%)
- The Company's 10 California hotels experienced an average
decline in quarterly RevPAR of 22.6%. Six hotels in northern
California, including two in San Francisco and four Silicon
Valley hotels, experienced an average decline in quarterly
RevPAR of 30.8%. The California hotels represented 31% of the
Company's quarterly room revenue.
- Hotel operating margins (pro forma hotel EBITDA as a
percentage of total revenue) declined 5.0 percentage points in
the third quarter. For the nine months, hotel operating
margins declined 2.3 percentage points.
- Earnings before interest, taxes, depreciation and amortization
(EBITDA) decreased 22.9% from $25.8 million to $19.9 million
for the third quarter and declined 3.9% for the nine months.
- The Company realized an unleveraged FFO return on investment
of 12.1% in its 56 comparable hotels for the trailing 12
months ended September 30, 2001. Based upon the Company's
approximate 39% leverage and average borrowing costs of 7.9%,
the Company realized a leveraged return on investment of
14.7%.
- EBITDA for the trailing 12 months ended September 30, 2001,
was 3.6 times the Company's interest costs.
- Total debt was reduced by $5.8 million during the third
quarter.
RESULTS SUBSEQUENT TO SEPTEMBER 11, 2001
Randy Churchey, RFS president and chief operating officer, said, "For the period
September 1 through September 11, RevPAR for our portfolio declined 3.8% from
the prior year. However, the horrific events of September 11 have had a dramatic
and detrimental affect on the travel industry. To put this event in historical
perspective, industry RevPAR in September declined 24%. The largest monthly drop
prior to that was only 8%, following the Gulf War in March 1991."
The following table shows the weekly changes in RevPAR for RFS (compared to
2000) since September 11:
BY SEGMENT
----------------------------------------
Change Full Limited Extended
Week Ended in RevPAR Service Service Stay
---------- --------- ------- ------- ----
9/15 (18.3%) (27.4%) (11.9%) (9.6%)
9/22 (35.5%) (52.9%) (22.1%) (21.8%)
9/29 (22.3%) (39.2%) (6.6%) (9.2%)
10/6 (20.6%) (35.2%) (9.4%) (6.2%)
10/13 (20.1%) (32.0%) (7.5%) (11.8%)
10/20 (16.3%) (24.6%) (9.0%) (9.6%)
10/27 (16.7%) (25.6%) (8.6%) (10.7%)
"It is obvious that there has been a gradual recovery since September 11,"
Churchey explained, "except in major gateway cities such as San Francisco.
Exclusive of our six hotels in northern California, RevPAR for RFS in October
declined approximately 8%. The limited service and extended stay segments are
holding up substantially better than the larger, full service properties,
particularly those located in markets which depend heavily on airline traffic."
CAPITAL
Despite the fact that FFO declined 34.7% during the quarter and 12.6% for the
nine months ended September 30, 2001, during the quarter the Company:
- reduced debt by $5.8 million;
- earned a cash return (based on trailing 12 months) on its
investments of 12.1%;
- continued to maintain one of the least leveraged balance
sheets in the industry with total debt equal to only 3.4x
trailing 12 month EBITDA; and
- operating cash flow (EBITDA less interest), for the trailing
12 months ended September 30, 2001, was $63.6 million. This
represents funds available for payment of capital
expenditures, debt reduction, and dividends.
Kevin Luebbers, RFS executive vice president and chief financial officer,
stated, "Our balance sheet remains strong and the Company has no significant
debt maturities prior to June 30, 2004. Additionally, cash flow in 2002 will
benefit from a planned reduction in capital expenditures from their present
annualized level of approximately $16 million in 2001 to approximately $9
million next year."
OUTLOOK AND DIVIDENDS
Given the current environment, and particularly the uncertainty of geopolitical
events, it is impossible to predict future performance with any degree of
precision. However, for planning purposes, RFS is assuming a fourth quarter 2001
RevPAR decline ranging from 15% to 25%, and a resulting fourth quarter FFO per
share in the range of $0.10 to $0.25.
In light of this expected reduction in business activity, the Board of Directors
has decided to reduce the fourth quarter 2001 dividend from $0.385 per share to
$0.10 per share. This dividend will be payable on November 26, 2001 to
shareholders of record on November 12, 2001. The Company's policy has been to
pay an annual dividend approximately equal to 100% of taxable income. REIT tax
laws require that 90% of taxable income be distributed to shareholders. With
this fourth quarter dividend, aggregate 2001 common dividends of $1.255 per
share satisfy the Company's policy.
For 2002 planning purposes, RFS is assuming an economic recovery in the second
half of 2002, resulting in flat to a slight decline in RevPAR for the full year.
EBITDA margins are expected to contract slightly. As a result, FFO per share is
expected to range from $1.55 to $1.75 per share. Given these results, RFS
expects to pay 2002 quarterly dividends ranging from $0.25 to $0.30 per share
(annual dividend ranging from $1.00 to $1.20), starting with a payment date of
February 15, 2002. This level of 2002 dividends is consistent with the Company's
policy of making dividend payments in the range of 65% to 70% of annual FFO.
Obviously, these are preliminary estimates which, due to present wartime
conditions, may change materially.
Robert Solmson, RFS chairman and CEO, said, "Without question, the period since
September 11 has been the most difficult operating environment for hotels since
World War II. The duration and depth of this cycle will depend more on
unpredictable geopolitical events than on traditional economic developments.
Meanwhile, we will continue to carefully monitor cash flow by reducing operating
costs, deferring non-essential capital expenditures, and continuing to pay down
long-term debt," Solmson explained.
RFS Hotel Investors, Inc. (RFS) is a real estate investment trust (REIT) that
owns 58 hotels with approximately 8,400 rooms located in 24 states. RFS's hotel
portfolio is diversified by geography, brand and segment. Leading brands under
which RFS hotels are operated include Sheraton(R), Residence Inn by Marriott(R),
Hilton(R), Doubletree(R), Holiday Inn(R), Hampton Inn(R), and Homewood Suites by
Hilton(R). By segment, RFS receives approximately 44% of its EBITDA from full
service hotels, 32% from extended stay hotels and 24% from limited service
hotels. Additional information can be found on the Company's website at
www.rfshotel.com.
Certain matters within this press release are discussed using forward-looking
language as specified in the 1995 Private Securities Litigation Reform Law, and,
as such, may involve known and unknown risks, uncertainties and other factors
that may cause the actual results or performance to differ from those projected
in the forward-looking statement. From time to time, these risks are discussed
in the Company's filings with the Securities and Exchange Commission.
RFS HOTEL INVESTORS, INC.
KEY COMPANY STATISTICS
QUARTER ENDED SEPTEMBER 30, 2001
OPERATING STATISTICS
Total Revenues $55.5 million EBITDA $19.9 million
% Decrease in Revenues(1) 13.9% % Decrease in EBITDA 22.9%
FFO $12.4 million % of Hotel EBITDA(2)
Full Service Hotels 44.0%
% Decrease in FFO 34.7% Extended Stay Hotels 32.0%
Limited Service Hotels 24.0%
FFO per Share $0.45
% Decrease in FFO per Share 35.7%
CAPITAL STATISTICS
EBITDA/Interest(2) 3.6x Debt/EBITDA(2) 3.4x
EBITDA/Interest and 3.2x Percentage of fixed 96%
Preferred Dividends(2) interest rate debt
--------
(1) As compared to pro forma three months ended September 30, 2000, as if the
Hilton lease termination occurred on January 1, 2000.
(2) EBITDA information is pro forma for the trailing 12 months ended September
30, 2001 as if the Hilton lease termination occurred on January 1, 2000.
RFS HOTEL INVESTORS, INC.
CONSOLIDATED INCOME STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2001 2000 2001 2000
-------- -------- --------- --------
Revenue:
Rooms $ 47,430 $ 149,499
Food and beverage 3,868 13,205
Other operating departments 2,242 7,231
Lease revenue (1) 1,268 $ 29,836 4,585 $ 82,737
Deferred revenue (1) 621 8,792 (1,115) (18,715)
Other 76 143 417 653
-------- -------- --------- --------
Total hotel revenue 55,505 38,771 173,822 64,675
-------- -------- --------- --------
Hotel operating expenses by department:
Rooms 9,292 28,751
Food and beverage 3,186 10,247
Other operating departments 497 1,594
Undistributed operating expenses:
Property operating costs 6,212 17,673
Property taxes, insurance and other 3,377 2,772 9,518 8,369
Franchise costs 4,272 13,283
Maintenance and repair 2,350 7,548
Management fees 1,069 3,952
General and administrative 3,813 11,726
-------- -------- --------- --------
Total hotel operating expenses 34,068 2,772 104,292 8,369
-------- -------- --------- --------
Net hotel operating income (Hotel EBITDA) 21,437 35,999 69,530 56,306
Corporate expenses:
Depreciation 7,376 6,896 22,253 20,302
Amortization of deferred expenses and unearned compensation 722 342 2,132 1,232
Interest expense 5,955 6,093 18,727 17,296
General and administrative 944 1,418 3,123 4,750
Hilton lease termination 65,496
(Gain) loss on sale of hotel properties (1,200) 4,000
Minority interest in income (loss) of Operating Partnership 594 2,162 (1,165) 964
-------- -------- --------- --------
Income (loss) before income taxes 5,846 19,088 (39,836) 7,762
Benefit from income taxes (708) (25,207)
-------- -------- --------- --------
Net income (loss) 6,554 19,088 (14,629) 7,762
Preferred stock dividends (781) (355) (2,343) (1,054)
Gain on redemption of Series A Preferred Stock 5,141
-------- -------- --------- --------
NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $ 5,773 $ 18,733 $ (11,831) $ 6,708
======== ======== ========= ========
Diluted earnings (loss) per share $ 0.23 $ 0.76 $ (0.47) $ 0.27
Weighted average common shares and equivalents outstanding 25,263 24,500 24,981 24,576
(1) Deferred revenue is recorded for the Company's hotels which are leased to
third parties in accordance with Staff Accounting Bulletin 101 which
requires deferral of certain revenue until the third and fourth quarters.
For the three months ended September 30, 2001 and 2000, five and fifty-nine
hotels were leased to third-party lessees, respectively. SAB 101 has no
effect on rent payments under the Company's third-party leases or the
Company's cash flow and no impact on full year revenue.
RFS HOTEL INVESTORS, INC.
CALCULATION OF FFO AND EBITDA
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2001 2000 2001 2000
-------- -------- -------- --------
Funds from operations:
Net income (loss) $ 6,554 $ 19,088 $(14,629) $ 7,762
Minority interest in income (loss) of Operating Partnership 594 2,162 (1,165) 964
Hilton lease termination 65,496
Deferred income taxes related to Hilton lease termination (708) (25,207)
Deferred revenue (621) (8,792) 1,115 18,715
(Gain) loss on sale of hotel properties (1,200) 4,000
Preferred stock dividends (781) (355) (2,343) (1,054)
Depreciation 7,376 6,896 22,253 20,302
-------- -------- -------- --------
FUNDS FROM OPERATIONS $ 12,414 $ 18,999 $ 44,320 $ 50,689
======== ======== ======== ========
Weighted average common shares, partnership units
and potential dilutive shares outstanding 27,722 27,100 27,528 27,142
FFO PER SHARE $ 0.45 $ 0.70 $ 1.61 $ 1.87
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
FFO $ 12,414 $ 18,999 $ 44,320 $ 50,689
Interest expense 5,955 6,093 18,727 17,296
Current income taxes
Amortization 722 342 2,132 1,232
Preferred stock dividends 781 355 2,343 1,054
-------- -------- -------- --------
CORPORATE EBITDA $ 19,872 $ 25,789 $ 67,522 $ 70,271
======== ======== ======== ========
RFS HOTEL INVESTORS, INC.
CONSOLIDATED INCOME STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
ACTUAL PRO FORMA(2) ACTUAL PRO FORMA(2)
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2001 2000 2001 2000
-------- -------- --------- ---------
Revenue:
Rooms $ 47,430 $ 55,023 $ 149,499 $ 152,755
Food and beverage 3,868 4,794 13,205 14,327
Other operating departments 2,242 2,545 7,231 7,406
Lease revenue (1) 1,268 1,297 4,585 4,407
Deferred revenue (1) 621 605 (1,115) (1,074)
Other 76 181 417 764
-------- -------- --------- ---------
Total hotel revenue 55,505 64,445 173,822 178,585
-------- -------- --------- ---------
Hotel operating expenses by department:
Rooms 9,292 10,307 28,751 28,716
Food and beverage 3,186 3,657 10,247 10,693
Other operating departments 497 588 1,594 1,712
Undistributed operating expenses:
Property operating costs 6,212 6,144 17,673 17,021
Property taxes, insurance and other 3,377 3,036 9,518 9,089
Franchise costs 4,272 4,480 13,283 12,289
Maintenance and repair 2,350 2,480 7,548 7,280
Management fees 1,069 1,559 3,952 4,361
General and administrative 3,813 4,070 11,726 11,806
-------- -------- --------- ---------
Total hotel operating expenses 34,068 36,321 104,292 102,967
-------- -------- --------- ---------
Net hotel operating income (Hotel EBITDA) 21,437 28,124 69,530 75,618
Corporate expenses:
Depreciation 7,376 6,740 22,253 19,833
Amortization of deferred expenses and unearned compensation 722 342 2,132 1,230
Interest expense 5,955 6,446 18,727 18,354
General and administrative 944 1,418 3,123 4,748
Hilton lease termination 65,496
(Gain) Loss on sale of hotel properties (1,200) 4,000
Minority interest in income (loss) of Operating Partnership 594 1,131 (1,165) 2,566
-------- -------- --------- ---------
Income before income taxes 5,846 12,047 (39,836) 24,887
Provision for (benefit from) income taxes (708) 942 (25,207) 2,137
-------- -------- --------- ---------
Net income (loss) 6,554 11,105 (14,629) 22,750
Preferred stock dividends (781) (781) (2,343) (2,343)
Gain on redemption of Series A Preferred Stock 5,141
-------- -------- --------- ---------
NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $ 5,773 $ 10,324 $ (11,831) $ 20,407
======== ======== ========= =========
Diluted earnings per share $ 0.23 $ 0.42 $ (0.47) $ 0.83
Weighted average common shares and equivalents outstanding 25,263 24,500 24,981 24,576
(1) Deferred revenue is recorded for the Company's hotels which are leased to
third parties in accordance with Staff Accounting Bulletin 101 which
requires deferral of certain revenue until the third and fourth quarters.
For the three months ended September 30, 2001 and 2000, five and fifty-nine
hotels were leased to third-party lessees, respectively. SAB 101 has no
effect on rent payments under the Company's third-party leases or the
Company's cash flow and no impact on full year revenue.
(2) Assumes that the Hilton lease termination transaction, the sales of three
hotels in 2000 and early 2001, the redemption of the Company's Series A
Preferred Stock and the issuance of the Company's Series B Preferred Stock
occurred on January 1, 2000. It includes the results of the Farmington
Hills hotel which was sold on May 31, 2001.
RFS HOTEL INVESTORS, INC.
CALCULATION OF PRO FORMA FFO AND EBITDA(2)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
ACTUAL PRO FORMA(2) ACTUAL PRO FORMA(2)
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2001 2000 2001 2000
-------- -------- -------- --------
Funds from operations:
Net income (loss) $ 6,554 $ 11,105 $(14,629) $ 22,750
Minority interest in income (loss) of Operating
Partnership 594 1,131 (1,165) 2,566
Hilton lease termination 65,496
Deferred income taxes related to Hilton lease
termination (708) (25,207)
Deferred revenue (621) (605) 1,115 1,074
(Gain) loss on sale of hotel properties (1,200) 4,000
Preferred stock dividends (781) (781) (2,343) (2,343)
Depreciation 7,376 6,740 22,253 19,833
-------- -------- -------- --------
FUNDS FROM OPERATIONS $ 12,414 $ 17,590 $ 44,320 $ 47,880
======== ======== ======== ========
Weighted average common shares, partnership units
and potential dilutive shares outstanding 27,722 27,100 27,528 27,142
FFO PER SHARE $ 0.45 $ 0.65 $ 1.61 $ 1.76
Earnings before interest, taxes, depreciation and
amortization (EBITDA):
FFO $ 12,414 $ 17,590 $ 44,320 $ 47,880
Interest expense 5,955 6,446 18,727 18,354
Current income taxes 942 2,137
Amortization 722 342 2,132 1,230
Preferred stock dividends 781 781 2,343 2,343
-------- -------- -------- --------
CORPORATE EBITDA $ 19,872 $ 26,101 $ 67,522 $ 71,944
======== ======== ======== ========
RFS HOTEL INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
SEPTEMBER 30, DECEMBER 31,
2001 2000
--------- ---------
(unaudited)
ASSETS
Investment in hotel properties, net $ 620,612 $ 635,997
Cash and cash equivalents 7,599 3,681
Restricted cash 5,570 4,929
Accounts receivable 6,169 13,041
Notes receivable 626
Deferred expenses, net 6,858 6,814
Other assets 3,576 8,379
Deferred income taxes 25,207
--------- ---------
Total assets $ 675,591 $ 673,467
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $ 23,815 $ 12,734
Borrowings on Line of Credit 81,188 50,273
Long-term obligations 221,519 227,158
Minority interest in Operating Partnership, 2,458 and 2,562
units issued and outstanding at September 30, 2001 and
December 31, 2000, respectively 31,297 34,848
--------- ---------
Total liabilities 357,819 325,013
--------- ---------
Preferred Stock, $.01 par value, 5,000 shares authorized,
250 shares issued and outstanding at September 30, 2001 25,000
---------
Commitments and contingencies
Shareholders' equity:
Preferred Stock, $.01 par value, 5,000 shares
authorized, 974 shares issued and outstanding at December 31, 2000 10
Common Stock, $.01 par value, 100,000 shares
authorized, 25,811 and 25,088 shares issued at September 30, 2001
and December 31, 2000, respectively 258 251
Additional paid-in capital 368,083 374,910
Other comprehensive income (3,401)
Treasury stock, at cost, 576 shares (8,100) (8,100)
Distributions in excess of earnings (64,068) (18,617)
--------- ---------
Total shareholders' equity 292,772 348,454
--------- ---------
Total liabilities, preferred stock and shareholders' equity $ 675,591 $ 673,467
========= =========
RFS HOTEL INVESTORS, INC.
COMPARABLE HOTEL OPERATING STATISTICS(1)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001
ADR OCCUPANCY REVPAR
------------------------- ------------------------ ------------------------
VARIANCE VS. VARIANCE VS VARIANCE VS
Segment 2001 2000 2001 2000 2001 2000
---------------- ---------- ---------- ---------- ---------- ---------- ----------
Full Service $ 108.27 (8.3%) 66.6% (11.6 pts) $ 72.10 (22.0%)
Extended Stay $ 95.75 1.9% 78.3% (5.1 pts) $ 74.93 (4.4%)
Limited Service $ 71.45 1.0% 70.3% (4.1 pts) $ 50.21 (4.6%)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 90.85 (3.6%) 71.1% (7.0 pts) $ 64.56 (12.3%)
========== ========== ========== ========== ========== ==========
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
ADR OCCUPANCY REVPAR
------------------------- ------------------------ ------------------------
VARIANCE VS. VARIANCE VS VARIANCE VS
Segment 2001 2000 2001 2000 2001 2000
---------------- ---------- ---------- ---------- ---------- ---------- ----------
Full Service $ 111.23 0.6% 71.1% (5.1 pts) $ 79.04 (6.1%)
Extended Stay $ 97.16 2.5% 81.0% (1.1 pts) $ 78.66 1.0%
Limited Service $ 71.56 2.6% 70.2% (0.9 pts) $ 50.27 1.4%
---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 91.78 1.4% 73.5% (2.3 pts) $ 67.44 (1.7%)
========== ========== ========== ========== ========== ==========
(1) For the three months ended September 30, 2001, includes all 58 hotels
owned. For the nine months ended September 30, 2001, includes 56 of the 58
hotels owned. Excludes the Hilton San Francisco Fisherman's Wharf hotel,
which underwent renovation and was converted from a Ramada Plaza in 2000,
and the Sheraton Hotel in Birmingham, Alabama, which was undergoing
renovation in 2000.
RFS HOTEL INVESTORS, INC.
RETURN ON INVESTMENT ANALYSIS(1)
AS OF SEPTEMBER 30, 2001
(AMOUNTS IN THOUSANDS)
Total EBITDA for the
Investment, TTM ended
Before September 30, Return on
Depreciation(2) 2001 Investment
--------------- ------ ----------
Full Service $299,409 36,180 12.1%
Extended Stay $220,015 29,427 13.4%
Limited Service $208,749 22,153 10.6%
-------- ------ ------
Total $728,173 87,760 12.1%
-------- ------ ------
(1) Includes 56 of the 58 hotels owned at September 30, 2001. Excludes two
hotels undergoing major renovations (Hilton San Francisco Fisherman's
Wharf which was converted from a Ramada Plaza in 2000 and the Sheraton
Hotel in Birmingham which was undergoing renovation in 2000.
(2) Total investment includes original cost and all capital expenditures since
acquisition. Also includes the costs associated with the Hilton lease
termination of approximately $60 million. These costs were required to be
written-off as a cancellation of executory contracts and therefore are not
included on the balance sheet. However, for return on investment analysis,
this amount is included in the total investment.
RFS HOTEL INVESTORS, INC.
OUTSTANDING DEBT
SEPTEMBER 30, 2001
BALANCE INTEREST RATE MATURITY
------- ------------- --------
(in thousands)
Line of Credit $ 81,188 LIBOR + 200bp Fixed/Variable(1) July 2004
Mortgage 34,153 6.83% Fixed August 2008
Mortgage 25,000 7.30% Fixed November 2011
Mortgage 92,445 7.83% Fixed December 2008
Mortgage 18,345 8.22% Fixed November 2007
Mortgage 51,576 8.00% Fixed August 2010
---------
$ 302,707
=========
(1) $40.0 million carries a fixed interest rate of 6.535% plus 200 basis
points at September 30, 2001 through an interest rate swap maturing in
July 2003. In addition, $30.0 million carries a fixed interest rate of
4.775% plus 200 basis points at September 30, 2001 through a second
interest rate swap maturing in July 2003.
DEBT MATURITIES
(in millions)
2001 $ 1.6
2002 6.5
2003 7.0
2004 88.7
2005 8.2
Thereafter 190.7
-------
$ 302.7
=======
Weighted average maturity of fixed rate debt is 7.6 years. (Excludes
$70.0 million of the Line of Credit that carries fixed interest rates
through interest rate swaps)