CapLease Announces Third Quarter 2012 Results

The Company’s leverage ratios, which are among the financial metrics used by management to review and analyze CapLease’s debt, are also non-GAAP financial measures. Leverage ratios are a widely used financial measure by the real estate investment community, especially for REITs. We measure our leverage ratios by dividing total debt by total assets, as adjusted. We measure total assets, as adjusted, at historical cost before depreciation and amortization on owned properties. Therefore, our leverage ratios do not account for any fluctuations in value, up or down, that may have occurred since we acquired our owned properties. Other companies including other REITs may compute leverage ratios in a different manner and, therefore, our leverage ratios may not be comparable to similarly titled measures reported by other companies.

Forward-Looking and Cautionary Statements:

This press release contains projections of future results and other forward-looking statements that involve a number of trends, risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following important factors could cause actual results to differ materially from those projected in such forward-looking statements.

• payment defaults on one or more of our asset investments;
• increases in our financing costs (including as a result of LIBOR rate increases), our general and administrative costs and/or our property expenses; and
• our failure to comply with our debt obligations.

Developments in any of those areas could cause actual results to differ materially from results that have been or may be projected. For a more detailed discussion of the trends, risks and uncertainties that may affect our operating and financial results and our ability to achieve the financial objectives discussed in this press release, readers should review the Company’s most recent Annual Report on Form 10-K, including the section entitled “Risk Factors,” and the Company’s other periodic filings with the SEC. Copies of these documents are available on our web site at www.caplease.com and on the SEC’s website at www.sec.gov. We caution that the foregoing list of important factors is not complete and we do not undertake to update any forward-looking statement.

About the Company:

CapLease, Inc. is a real estate investment trust, or REIT, that primarily owns and manages a diversified portfolio of single tenant commercial real estate properties subject to long-term leases to high credit quality tenants.

CapLease, Inc. and Subsidiaries
Consolidated Statements of Operations
For the three and nine months ended September 30, 2012 and September 30, 2011
(Unaudited)
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
(Amounts in thousands, except per share amounts)		2012				2011				2012				2011
Revenues:
Rental revenue		$	35,137			$	32,362			$	101,815			$	95,302
Interest income from loans and securities			1,921				4,774				6,026				17,386
Tenant reimbursements			4,552				3,574				11,939				10,072
Other revenue			182				156				693				601
Total revenues			41,792				40,866				120,473				123,361
Expenses:
Interest expense			16,723				19,147				50,666				59,197
Property expenses			7,209				6,600				20,242				19,174
General and administrative expenses			2,754				2,558				8,604				8,050
General and administrative expenses-stock based compensation			830				796				2,441				2,264
Depreciation and amortization expense on real property			12,166				11,676				35,878				34,538
Other expenses			930				38				962				167
Total expenses			40,612				40,815				118,793				123,390
Other gains (losses):
Gain on investments, net			300				3,861				1,009				648
Gain (loss) on extinguishment of debt, net			–				(3,698	)			11,012				(3,698	)
Total other gains (losses)			300				163				12,021				(3,050	)
Income (loss) from continuing operations			1,480				214				13,701				(3,079	)
Discontinued operations:
Loss from discontinued operations			(6	)			(727	)			(1,372	)			(2,188	)
Gain (loss) on investments			–				1,426				(15,229	)			1,426
Provision for loss on property investment			–				(14,119	)			–				(14,119	)
Total discontinued operations			(6	)			(13,420	)			(16,601	)			(14,881	)
Net income (loss) before non-controlling interest in consolidated subsidiaries			1,474				(13,206	)			(2,900	)			(17,960	)
Non-controlling interest in consolidated subsidiaries			5				36				23				55
Net income (loss)			1,479				(13,170	)			(2,877	)			(17,905	)
Dividends allocable to preferred shares			(2,731	)			(1,627	)			(6,812	)			(4,882	)
Net loss allocable to common stockholders		$	(1,252	)		$	(14,797	)		$	(9,689	)		$	(22,787	)
Income (loss) per common share, basic and diluted:
Income (loss) from continuing operations		$	(0.02	)		$	(0.02	)		$	0.10			$	(0.12	)
Loss from discontinued operations		$	–			$	(0.20	)		$	(0.25	)		$	(0.23	)
Net loss per common share, basic and diluted		$	(0.02	)		$	(0.22	)		$	(0.15	)		$	(0.35	)
Weighted average number of common shares outstanding, basic and diluted			66,767				67,615				66,616				64,238
Dividends declared per common share		$	0.070			$	0.065			$	0.20			$	0.195
Dividends declared per preferred A share		$	0.508			$	0.508			$	1.523			$	1.523
Dividends declared per preferred B share		$	0.523			$	–			$	1.024			$	–

CapLease, Inc. and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2012 and December 31, 2011
(Amounts in thousands, except share and per share amounts)		As Of September 30, 2012				As Of December 31, 2011
Assets
Real estate investments, net		$	1,457,284			$	1,401,526
Loans held for investment, net			28,569				33,139
Commercial mortgage-backed securities			59,904				59,435
Cash and cash equivalents			40,192				71,160
Other assets			89,018				76,363
Total Assets		$	1,674,967			$	1,641,623
Liabilities and Equity
Mortgages on real estate investments		$	986,629			$	972,924
Credit agreements			48,097				70,668
Secured term loan			76,100				88,142
Convertible senior notes			35,007				34,522
Other long-term debt			30,930				30,930
Total Debt Obligations			1,176,763				1,197,186
Intangible liabilities on real estate investments			33,579				35,219
Accounts payable and other liabilities			28,055				17,371
Dividends and distributions payable			7,532				5,946
Total Liabilities			1,245,929				1,255,722
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 100,000,000 shares authorized:
Series A cumulative redeemable preferred, liquidation preference $25.00 per share, 3,401,107 and 3,204,900 shares issued and outstanding, respectively			78,649				73,880
Series B cumulative redeemable preferred, liquidation preference $25.00 per share, 2,140,913 and 0 shares issued and outstanding, respectively			51,800				–
Common stock, $0.01 par value, 500,000,000 shares authorized, 66,766,965 and 66,275,535 shares issued and outstanding, respectively			668				663
Additional paid in capital			300,522				321,303
Accumulated other comprehensive loss			(3,653	)			(11,051	)
Total Stockholders' Equity			427,986				384,795
Non-controlling interest in consolidated subsidiaries			1,052				1,106
Total Equity			429,038				385,901
Total Liabilities and Equity		$	1,674,967			$	1,641,623

CapLease, Inc. and Subsidiaries
Reconciliation of Net Loss to Funds from Operations and Cash Available for Distribution (unaudited)
For the three and nine months ended September 30, 2012 and September 30, 2011
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
(Amounts in thousands, except per share amounts)		2012				2011				2012				2011
Net loss allocable to common stockholders		$	(1,252	)		$	(14,797	)		$	(9,689	)		$	(22,787	)
Add (deduct):
Non-controlling interest in consolidated subsidiaries			(5	)			(36	)			(23	)			(55	)
Depreciation and amortization expense on real property			12,166				11,676				35,878				34,538
Depreciation and amortization expense on discontinued operations			–				930				653				2,815
(Gain) loss on property sales on discontinued operations			–				(1,426	)			15,229				(1,426	)
Provision for loss on property investment on discontinued operations			–				14,119				–				14,119
Funds from operations			10,909				10,466				42,048				27,204
Add (deduct):
Straight-lining of rents			3,210				(3,038	)			11,261				3,271
General and administrative expenses-stock based compensation			830				796				2,441				2,264
Amortization of above and below market leases			(227	)			420				(612	)			1,258
Non-cash interest income and expenses			131				299				852				1,048
Routine capital expenditures on real estate investments			(476	)			(138	)			(1,007	)			(1,473	)
Gain on investments other than real property, net			(300	)			(3,861	)			(1,009	)			(648	)
Loss (gain) on extinguishment of debt, net			–				3,698				(11,012	)			3,698
Cash available for distribution		$	14,077			$	8,642			$	42,962			$	36,622
Weighted average number of common shares outstanding, basic and diluted			66,767				67,615				66,616				64,238
Weighted average number of OP units outstanding			156				156				156				156
Weighted average number of common shares and OP units outstanding, diluted			66,923				67,771				66,772				64,394
Net loss per common share, basic and diluted		$	(0.02	)		$	(0.22	)		$	(0.15	)		$	(0.35	)
Funds from operations per share		$	0.16			$	0.15			$	0.63			$	0.42
Cash available for distribution per share		$	0.21			$	0.13			$	0.64			$	0.57

CapLease, Inc. and Subsidiaries
Overall Company Leverage (unaudited)
As of September 30, 2012 and December 31, 2011
			Sep 30, 2012				Dec 31, 2011
Debt			unaudited
	Mortgages on real estate investments		$	986,629			$	972,924
	Credit agreements			48,097				70,668
	Secured term loan			76,100				88,142
	Convertible senior notes			35,007				34,522
	Other long-term debt			30,930				30,930
Total Debt			$	1,176,763			$	1,197,186
Assets
	Total assets		$	1,674,967			$	1,641,623
	Accumulated depreciation and amortization on owned properties			285,718				268,209
	Intangible liabilities on real estate investments			(33,579	)			(35,219	)
	Prepaid expenses and deposits			(1,899	)			(1,381	)
	Accrued rental income			(34,575	)			(41,387	)
	Deferred rental income			4,451				2
	Debt issuance costs, net			(5,865	)			(3,889	)
	Other			(471	)			(712	)
Total Assets, as adjusted			$	1,888,747			$	1,827,247
Leverage (Total Debt/Total Assets, as adjusted)				62	%			66	%

CapLease, Inc. and Subsidiaries
Leverage by Segment (unaudited)
As of September 30, 2012
		Mortgage		Secured Term		Credit Agreement
(in thousands)		Debt		Loan Debt		Debt		Total Debt		Investment (1)		Leverage
Owned Properties		$ 986,629		$ 19,141		$ 45,594		$ 1,051,364		$ 1,757,331		60%
Debt Investments		–		56,959		2,503		59,462		89,035		67%

« First ‹ Previous ... 2 3 4 5 6 7 8 9 10 Next › Last »