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| Strategic Hotels & Resorts Reports First Quarter 2010 Results |
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CHICAGO, May 5, 2010 /PRNewswire via COMTEX/ --Strategic Hotels & Resorts (NYSE: BEE) today reported results for the first quarter ended March 31, 2010. First Quarter Recap
Chief Executive Officer Laurence Geller remarked, "We are encouraged by signs of improvement beginning to take place within the lodging space and particularly within the high-end segment. By the end of the first quarter we observed the beginnings of positive trends in our sector which we are optimistic will accelerate through the balance of the year. This is supported by an uptick in occupancy at our properties in the first quarter. We will continue to focus our full attention on improving profitability portfolio-wide by maintaining cost savings and productivity enhancement measures initiated throughout the economic downturn. Our adjusted margin performance in the first quarter is a good indication of the effectiveness of these programs." Financial Results The company reported first quarter 2010 financial results as follows:
Balance Sheet Activity Today, the company successfully closed on a $317.8 million non-recourse, cross-collateralized mortgage agreement with Metropolitan Life Insurance Company secured by the Westin St. Francis and Fairmont Chicago hotels. Under the terms of the agreement, the existing $220.0 million Westin St. Francis mortgage, which was set to mature in August 2011, and the $123.8 million Fairmont Chicago mortgage, which was set to mature in April 2012, are replaced with a new mortgage maturing in June of 2017 with a fixed interest rate of 6.09 percent. The company paid down the existing combined principal amount by $26.0 million as part of the agreement. In January, the company entered into an amendment with Aareal Bank AG on the euro 104.0 million non-recourse loan securing the InterContinental Prague hotel. Under the terms of the amendment, the loan remains non-recourse and the loan maturity is extended by three years from its initial maturity of March 2012 to March 2015. During the remainder of the initial term, scheduled principal amortization is suspended and the financial performance covenants are waived. Mr. Geller remarked, "We continue to strengthen our financial position and the recent new debt terms secured at the InterContinental Prague, Westin St. Francis and Fairmont Chicago properties represent ongoing progress toward that objective." Appointment of New Chief Financial Officer On March 9th, the company announced the appointment of Diane M. Morefield as Executive Vice President and Chief Financial Officer. Ms. Morefield succeeded James Mead who departed March 8th. Ms. Morefield is former Chief Financial Officer of Equity International (EI). Prior to that she served as Chief Financial Officer of Joseph Freed & Associates, LLC and from 1997 until 2006 Ms. Morefield was Senior Vice President with Equity Office Properties Trust. Earnings Call The company will conduct its first quarter 2010 conference call for investors and other interested parties on Thursday, May 6, 2010 at 10:00 a.m. Eastern Time (ET). Interested individuals are invited to listen to the call by telephone at 888-713-4216 (toll international: 617-213-4868) with pass code 17333584. To participate on the web cast, log on to http://www.strategichotels.com or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=176522&eventID=3012013 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 1:00 p.m. ET on May 6, 2010, through 11:59 p.m. ET on May 13, 2010. To access the replay, dial 888-286-8010 (toll international: 617-801-6888) and request replay pin number 77012976. 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. Portfolio Definitions North American hotel comparisons for the first quarter 2010 are derived from the company's hotel portfolio at March 31, 2010, consisting of properties in which operations are included in the consolidated results of the company. European hotel comparisons for the first quarter 2010 are derived from the company's European owned and leased hotel properties at March 31, 2010, consisting of the Marriott London Grosvenor Square, the Paris Marriott Champs-Elysees, the Marriott Hamburg, and the InterContinental Prague. 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 8,002 rooms. 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 (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 our future financial results, stabilization in the lodging space, positive trends in the lodging industry and our 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: demand for hotel rooms in our current and proposed market areas; availability of capital; ability to obtain or refinance debt or comply with covenants contained in our debt facilities; rising interest rates and operating costs; rising insurance premiums; cash available for capital expenditures; competition; economic conditions generally and in the real estate market specifically, including further deterioration of the current global economic downturn and the extent of its effect on business and leisure travel and the lodging industry; ability to dispose of existing properties in a manner consistent with our disposition strategy; delays and cost overruns in construction and development; demand for hotel condominiums; marketing challenges associated with entering new lines of business; risks related to natural disasters; the effect of threats of terrorism and increased security precautions on travel patterns and hotel bookings; the outbreak of hostilities and international political instability; legislative or regulatory changes, including changes to laws governing the taxation of REITs; 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, 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 we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
---------
2010 2009
---- ----
Revenues:
Rooms $90,019 $91,092
Food and beverage 57,896 54,629
Other hotel operating revenue 20,295 25,203
------ ------
168,210 170,924
Lease revenue 1,187 1,120
----- -----
Total revenues 169,397 172,044
------- -------
Operating Costs and Expenses:
Rooms 26,443 26,000
Food and beverage 42,212 40,849
Other departmental expenses 50,703 52,723
Management fees 5,969 6,292
Other hotel expenses 13,576 13,251
Lease expense 4,241 3,966
Depreciation and amortization 35,857 32,579
Impairment losses and other charges - 459
Corporate expenses 6,400 10,296
----- ------
Total operating costs and expenses 185,401 186,415
------- -------
Operating loss (16,004) (14,371)
Interest expense (24,692) (23,966)
Interest income 158 412
Loss on early extinguishment of debt - (883)
Equity in (losses) earnings of joint
ventures (560) 139
Foreign currency exchange gain 6,186 1,941
Other income (expenses), net 232 (39)
--- ---
Loss before income taxes and
discontinued operations (34,680) (36,767)
Income tax benefit (expense) 778 (1,532)
--- ------
Loss from continuing operations (33,902) (38,299)
(Loss) income from discontinued
operations, net of tax (709) 1,631
---- -----
Net loss (34,611) (36,668)
Net loss attributable to the
noncontrolling interests in SHR's
operating partnership 442 446
Net loss attributable to the
noncontrolling interests in
consolidated affiliates 1,599 753
----- ---
Net loss attributable to SHR (32,570) (35,469)
Preferred shareholder dividends (7,721) (7,721)
------ ------
Net loss attributable to SHR common
shareholders $(40,291) $(43,190)
======== ========
Basic and Diluted Loss Per Share:
Loss from continuing operations
attributable to SHR common shareholders $(0.52) $(0.59)
(Loss) income from discontinued
operations attributable to SHR (0.01) 0.02
----- ----
Net loss attributable to SHR common
shareholders $(0.53) $(0.57)
====== ======
Weighted average common shares
outstanding 75,572 75,166
====== ======
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Consolidated Balance Sheets
(in thousands, except share data)
December
March 31, 31,
2010 2009
---- ----
Assets
Investment in hotel
properties, net $2,126,126 $2,162,584
Goodwill 75,138 75,758
Intangible assets, net of
accumulated amortization
of $4,811 and $4,400 33,342 34,046
Investment in joint
ventures 45,992 46,745
Cash and cash equivalents 96,659 116,310
Restricted cash and cash
equivalents 27,741 22,829
Accounts receivable, net
of allowance for doubtful
accounts of $2,380 and
$2,657 45,324 54,524
Deferred financing costs,
net of accumulated
amortization of $14,320
and $12,543 9,331 11,225
Deferred tax assets 34,324 34,244
Other assets 37,601 39,878
------ ------
Total assets $2,531,578 $2,598,143
========== ==========
Liabilities and Equity
Liabilities:
Mortgages payable $1,279,903 $1,300,745
Exchangeable senior notes,
net of discount 170,558 169,452
Bank credit facility 195,000 178,000
Accounts payable and
accrued expenses 235,197 236,269
Deferred tax liabilities 16,750 16,940
Deferred gain on sale of
hotels 94,726 101,852
------ -------
Total liabilities 1,992,134 2,003,258
Noncontrolling interests
in SHR's operating
partnership 4,058 2,717
Equity:
SHR's shareholders'
equity:
8.50% Series A Cumulative
Redeemable Preferred
Stock ($0.01 par
value; 4,488,750 shares
issued and outstanding;
liquidation preference
$25.00 per share and
$124,142 in the
aggregate) 108,206 108,206
8.25% Series B Cumulative
Redeemable Preferred
Stock ($0.01 par
value; 4,600,000 shares
issued and outstanding;
liquidation preference
$25.00 per share and
$126,859 in the
aggregate) 110,775 110,775
8.25% Series C Cumulative
Redeemable Preferred
Stock ($0.01 par
value; 5,750,000 shares
issued and outstanding;
liquidation preference
$25.00 per share and
$158,574 in the
aggregate) 138,940 138,940
Common shares ($0.01 par
value; 150,000,000 common
shares
authorized; 75,377,509 and
75,253,252 common shares
issued and outstanding) 754 752
Additional paid-in
capital 1,232,349 1,233,856
Accumulated deficit (986,813) (954,208)
Accumulated other
comprehensive loss (90,376) (69,341)
------- -------
Total SHR's shareholders'
equity 513,835 568,980
Noncontrolling interests
in consolidated
affiliates 21,551 23,188
------
Total equity 535,386 592,168
------- -------
Total liabilities and
equity $2,531,578 $2,598,143
========== ==========
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
FINANCIAL HIGHLIGHTS
Supplemental Financial Data
(in thousands, except per share information)
March 31, 2010
--------------
Pro Rata
Share Consolidated
--------- ------------
Capitalization
--------------
Common shares outstanding 75,378 75,378
Operating partnership units
outstanding 955 955
Restricted stock units outstanding 944 944
--- ---
Combined shares, options and units
outstanding 77,277 77,277
Common stock price at end of period $4.25 $4.25
----- -----
Common equity capitalization $328,427 $328,427
Preferred equity capitalization (at
$25.00 face value) 370,236 370,236
Consolidated debt (excludes discount
on exchangeable senior notes) 1,654,903 1,654,903
Pro rata share of unconsolidated debt 282,825 -
Pro rata share of consolidated debt (107,065) -
Cash and cash equivalents (96,659) (96,659)
------- -------
Total enterprise value $2,432,667 $2,256,907
========== ==========
Net Debt / Total Enterprise Value 71.3% 69.0%
Preferred Equity /Total Enterprise
Value 15.2% 16.4%
Common Equity / Total Enterprise Value 13.5% 14.6%
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
hotels were sold during 2009 (in thousands):
Net Sales
Hotel Date Sold Proceeds
----- --------- ---------
Renaissance Paris Hotel Le Parc December 21,
Trocadero 2009 $50,275
October 29,
Four Seasons Mexico City 2009 $52,156
The following is a summary of (loss) income from discontinued
operations for the three months ended March 31, 2010 and 2009 (in
thousands):
Three Months Ended
March 31,
---------
2010 2009
---- ----
Hotel operating revenues $- $8,559
--- ------
Operating costs and expenses (21) 6,912
Depreciation and amortization - 1,524
--- -----
Total operating costs and expenses (21) 8,436
--- -----
Operating income 21 123
Interest income - 2
Foreign currency exchange (loss) gain (118) 74
Income tax benefit - 1,432
Loss on sale (612) -
---- ---
(Loss) income from discontinued
operations $(709) $1,631
===== ======
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Investment in the Hotel del Coronado
(in thousands)
On January 9, 2006, we purchased a 45% interest in the joint venture
that owns the Hotel del Coronado. We account for this investment
using the equity method of accounting.
Three Months Ended
March 31,
---------
2010 2009
---- ----
Total revenues (100%) $23,736 $28,192
Property EBITDA (100%) $5,554 $8,506
Equity in losses of joint venture (SHR
45% ownership)
Property EBITDA $2,499 $3,828
Depreciation and amortization (1,991) (1,903)
Interest expense (1,833) (2,061)
Other expenses, net (63) (183)
Income taxes 537 213
--- ---
Equity in losses of joint venture $(851) $(106)
===== =====
EBITDA Contribution from investment in
Hotel del Coronado
Equity in losses of joint venture $(851) $(106)
Depreciation and amortization 1,991 1,903
Interest expense 1,833 2,061
Income taxes (537) (213)
---- ----
EBITDA Contribution for investment in
Hotel del Coronado $2,436 $3,645
====== ======
FFO Contribution from investment in Hotel
del Coronado
Equity in losses of joint venture $(851) $(106)
Depreciation and amortization 1,991 1,903
----- -----
FFO Contribution for investment in Hotel
del Coronado $1,140 $1,797
====== ======
Spread
over
Interest
Debt Rate LIBOR Loan Amount Maturity
---- -------- ----- ----------- --------
January 2011
CMBS Mortgage and Mezzanine 2.33% 208 bp $610,000 (a)
January 2011
Revolving Credit Facility 2.75% 250 bp 18,500 (a)
628,500
Cash and cash equivalents (7,779)
------
Net Debt $620,721
========
(a) Includes extension
options.
Effective
LIBOR Cap Notional
Cap Date Rate Amount Maturity
--- ---- --------- --------- --------
CMBS Mortgage and Mezzanine January
Loan 2010 2.0% $630,000 January 2011
and Revolving Credit
Facility Cap
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Leasehold Information
(in thousands)
Three Months Ended
March 31,
---------
2010 2009
---- ----
Paris Marriott Champs Elysees:
Property EBITDA $3,405 $2,607
Revenue (a) $3,405 $2,607
Lease Expense (3,046) (2,862)
Less: Deferred Gain on Sale
Leaseback (1,165) (1,100)
------ ------
Adjusted Lease Expense (4,211) (3,962)
EBITDA Contribution from Leasehold $(806) $(1,355)
===== =======
Marriott Hamburg:
Property EBITDA $1,393 $1,353
Revenue (a) $1,187 $1,120
Lease Expense (1,195) (1,104)
Less: Deferred Gain on Sale
Leaseback (54) (51)
Adjusted Lease Expense (1,249) (1,155)
EBITDA Contribution from Leasehold $(62) $(35)
==== ====
Total Leaseholds:
Property EBITDA $4,798 $3,960
Revenue (a) $4,592 $3,727
Lease Expense (4,241) (3,966)
Less: Deferred Gain on Sale
Leaseback (1,219) (1,151)
Adjusted Lease Expense (5,460) (5,117)
EBITDA Contribution from Leaseholds $(868) $(1,390)
===== =======
December
March 31, 31,
Security Deposits (b): 2010 2009
---- ----
Paris Marriott Champs Elysees $10,199 $10,720
Marriott Hamburg 6,755 7,158
Total $16,954 $17,878
======= =======
(a) For the three months ended March 31, 2010 and 2009, Revenue for
the Paris Marriott Champs Elysees represents Property EBITDA. For
the three months ended March 31, 2010 and 2009, Revenue for the
Marriott Hamburg represents lease revenue.
(b) The security deposits are recorded in other assets on the
consolidated balance sheets.
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)
Non-GAAP Financial Measures
In addition to REIT hotel income, five other non-GAAP financial measures are presented for the Company 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. A reconciliation of these measures to net loss attributable to SHR common shareholders, the most directly comparable GAAP measure, is set forth in the following tables. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which 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 plus real estate-related depreciation and amortization, and after adjustments for our portion of these items related to unconsolidated partnerships and joint ventures. We also present FFO - Fully Diluted, which is FFO plus income or loss on income attributable to convertible noncontrolling interests. 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-recurring charges. 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. EBITDA represents net 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; and (iii) depreciation and amortization. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our equity method investments. EBITDA is presented on a full participation basis, which means we have assumed conversion of all convertible noncontrolling interests of our operating partnership into our common stock and includes preferred dividends. We believe this treatment of noncontrolling interests provides more 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-recurring charges. 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 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 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 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 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,
---------
2010 2009
---- ----
Net loss attributable to SHR common
shareholders $(40,291) $(43,190)
Depreciation and amortization -continuing
operations 35,857 32,579
Depreciation and amortization -discontinued
operations - 1,524
Interest expense 24,692 23,966
Income taxes - continuing operations (778) 1,532
Income taxes - discontinued operations - (1,432)
Noncontrolling interests (442) (446)
Adjustments from consolidated affiliates (1,482) (1,564)
Adjustments from unconsolidated affiliates 3,402 3,899
Preferred shareholder dividends 7,721 7,721
----- -----
EBITDA 28,679 24,589
Realized portion of deferred gain on sale
leasebacks (1,219) (1,151)
Gain on sale of assets -continuing
operations - (2)
Loss on sale of assets - discontinued
operations 612 -
Impairment losses and other charges - 459
Foreign currency exchange gain -continuing
operations (a) (6,186) (1,941)
Foreign currency exchange loss (gain) -
discontinued operations (a) 118 (74)
Loss on early extinguishment of debt - 883
Comparable EBITDA $22,004 $22,763
======= =======
(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,
---------
2010 2009
---- ----
Net loss attributable to SHR common
shareholders $(40,291) $(43,190)
Depreciation and amortization -continuing
operations 35,857 32,579
Depreciation and amortization -discontinued
operations - 1,524
Corporate depreciation (304) (304)
Gain on sale of assets - continuing operations - (2)
Loss on sale of assets -discontinued
operations 612 -
Realized portion of deferred gain on sale
leasebacks (1,219) (1,151)
Deferred tax expense on realized portion of
deferred gain on sale leasebacks 363 343
Noncontrolling interests adjustments (480) (457)
Adjustments from consolidated affiliates (1,966) (1,832)
Adjustments from unconsolidated affiliates 2,004 1,935
----- -----
FFO (5,424) (10,555)
Convertible noncontrolling interests 38 11
--- ---
FFO - Fully Diluted (5,386) (10,544)
Impairment losses and other charges - 459
Foreign currency exchange gain, net of tax (a)
-continuing operations (6,193) (2,103)
Foreign currency exchange loss (gain) (a) -
discontinued operations 118 (74)
Loss on early extinguishment of debt - 883
Comparable FFO $(11,461) $(11,379)
======== ========
Comparable FFO per diluted share $(0.15) $(0.15)
====== ======
Weighted average diluted shares 75,572 75,166
====== ======
(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
Interest Spread
Debt Rate (a) Amount Maturity (b)
---- -------- ------ ------ ------------
Bank credit facility 4.00% 375 bp $195,000 March 2011
Westin St. Francis 0.95% 70 bp 220,000 August 2011
Fairmont Scottsdale 0.81% 56 bp 180,000 September 2011
InterContinental Chicago 1.31% 106 bp 121,000 October 2011
InterContinental Miami 0.98% 73 bp 90,000 October 2011
Loews Santa Monica Beach
Hotel 0.88% 63 bp 118,250 March 2012
Ritz-Carlton Half Moon
Bay 0.92% 67 bp 76,500 March 2012
Exchangeable senior
notes, net of discount
(c) 3.50% Fixed 170,558 April 2012
Fairmont Chicago 0.95% 70 bp 123,750 April 2012
Hyatt Regency La Jolla 1.25% 100 bp 97,500 September 2012
Marriott London Grosvenor 110 bp
Square (d) 1.75% (d) 115,641 October 2013
InterContinental Prague 120 bp
(e) 1.83% (e) 137,262 March 2015
-------
$1,645,461
==========
(a) Spread over LIBOR (0.25% at March 31, 2010).
(b) Includes extension options, excluding the conditional one-year
extension option on the bank credit facility.
(c) Reflects the cash coupon.
(d) Principal balance of BPS 76,220,000 at March 31, 2010. Spread
over three-month GBP LIBOR (0.65% at March 31, 2010).
(e) Principal balance of EUR 101,600,000 at March 31, 2010. Spread
over three-month EUR IBOR (0.63% at March 31, 2010). The
spread increases to 180 basis points in March 2012 through the
maturity date.
Domestic and European
Interest Rate Swaps
Fixed Pay Rate Notional
Swap Effective
Date Against LIBOR Amount Maturity
-------------- ------------- ------ --------
March 2009 0.90% $75,000 April 2010
March 2009 1.22% 50,000 August 2011
December
February 2010 0.45% 100,000 2010
February
February 2010 0.49% 100,000 2011
February 2010 0.75% 50,000 August 2011
February 2010 0.45% (f) 75,000 April 2012
February 2010 0.45% (f) 50,000 June 2012
February 2010 0.45% (f) 100,000 July 2012
February 2010 0.45% (f) 75,000 June 2013
February 2010 0.45% (f) 100,000 August 2013
September
February 2010 0.45% (f) 100,000 2014
December
February 2010 0.45% (f) 100,000 2014
0.54% $975,000
==== ========
Fixed Pay Rate Notional
Swap Effective Against GBP
Date LIBOR Amount Maturity
-------------- ------------ ------ --------
October 2007 3.22% (f) BPS76,220 October 2013
Fixed Pay Rate Notional
Swap Effective Against
Date EURIBOR Amount Maturity
-------------- -------- ------ --------
March 2010 3.32% EUR101,600 March 2015
(f) The fixed pay rates represent the current rates. The fixed
pay rate against LIBOR increases in December 2010 to a range of
4.12%-5.50% through maturity. The fixed pay rate against GBP
LIBOR increases in January 2011 to 5.72% through maturity.
Forward-Starting
Interest Rate
Swaps
Fixed Pay Rate Notional
Swap Effective
Date Against LIBOR Amount Maturity
-------------- ------------- ------ --------
April 2010 5.42% $75,000 April 2015
December
December 2010 5.23% 100,000 2015
February
February 2011 5.27% 100,000 2016
-------
$275,000
========
At March 31, 2010, future scheduled debt principal payments
(including non-conditional extension options) are as follows:
Years ending
December 31, Amount
------------- ------
2010 $1,563
2011 809,125
2012 603,341
2013 112,043
2014 4,215
Thereafter 124,616
-------
1,654,903
Less discount on
exchangeable
senior notes (9,442)
------
Total $1,645,461
==========
Percent of fixed rate debt including
U.S. and European swaps 85.0%
Weighted average interest rate including
U.S. and European swaps (g) 2.31%
Weighted average maturity of fixed rate debt (debt
with maturity of greater than one year) 3.16
(g) Excludes the amortization of deferred financing costs,
amortization of the discount on the exchangeable senior notes and
the amortization of the interest rate swap costs.
SOURCE Strategic Hotels & Resorts, Inc. |