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Maryland
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1-32039
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52-2414533
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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1065 Avenue of the Americas, New York, NY
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10018
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(Address of principal executive offices)
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(Zip Code)
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Item 2.01.
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Completion of Acquisition or Disposition of Assets.
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Item 9.01.
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Financial Statements and Exhibits.
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·
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the Pro Forma Condensed Consolidated Balance Sheet (unaudited) as of June 30, 2011;
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·
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the Pro Forma Condensed Consolidated Statement of Operations (unaudited) for the year ended December 31, 2010;
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·
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the Pro Forma Condensed Consolidated Statement of Operations (unaudited) for the six months ended June 30, 2011; and
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·
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the notes to Pro Forma Condensed Consolidated Financial Statements (unaudited).
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CapLease, Inc. Historical
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Pro Forma Adjustments
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CapLease, Inc. Pro Forma
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Assets
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Real estate investments, net
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$ | 1,408,133 | $ | – | $ | 1,408,133 | |||||||
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Loans held for investment, net
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187,047 | (151,317 | ) | a | 35,730 | ||||||||
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Commercial mortgage-backed securities
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102,369 | (41,187 | ) | a | 61,182 | ||||||||
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Cash and cash equivalents
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67,452 | 29,791 | a | 97,243 | |||||||||
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Other assets
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109,997 | (32,780 | ) | a | 77,217 | ||||||||
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Total Assets
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$ | 1,874,998 | $ | (195,493 | ) | $ | 1,679,505 | ||||||
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Liabilities and Equity
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Mortgages on real estate investments
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$ | 954,170 | $ | 31,331 | a | $ | 985,501 | ||||||
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Collateralized debt obligations
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232,511 | (232,511 | ) | a | – | ||||||||
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Credit agreement
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80,388 | (5,471 | ) | a | 74,917 | ||||||||
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Secured term loan
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94,428 | 94,428 | |||||||||||
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Convertible senior notes
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34,217 | 34,217 | |||||||||||
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Other long-term debt
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30,930 | 30,930 | |||||||||||
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Total Debt Obligations
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1,426,644 | (206,651 | ) | 1,219,993 | |||||||||
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Intangible liabilities on real estate investments
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36,312 | 36,312 | |||||||||||
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Accounts payable and other liabilities
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21,118 | (1,867 | ) | a | 19,251 | ||||||||
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Dividends and distributions payable
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6,061 | 6,061 | |||||||||||
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Total Liabilities
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1,490,135 | (208,518 | ) | 1,281,617 | |||||||||
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Commitments and contingencies
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Stockholders' equity:
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Preferred stock, $0.01 par value, 100,000,000 shares authorized, Series A cumulative redeemable preferred, liquidation preference $25.00 per share, 3,204,900 shares issued and outstanding
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73,880 | 73,880 | |||||||||||
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Common stock, $0.01 par value, 500,000,000 shares authorized, 68,055,665 shares issued and outstanding
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682 | 682 | |||||||||||
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Additional paid in capital
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335,685 | (2,371 | ) | a | 333,314 | ||||||||
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Accumulated other comprehensive loss
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(26,512 | ) | 15,396 | a | (11,116 | ) | |||||||
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Total Stockholders' Equity
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383,735 | 13,025 | 396,760 | ||||||||||
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Non-controlling interest in consolidated subsidiaries
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1,128 | 1,128 | |||||||||||
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Total Equity
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384,863 | 13,025 | 397,888 | ||||||||||
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Total Liabilities and Equity
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$ | 1,874,998 | $ | (195,493 | ) | $ | 1,679,505 | ||||||
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CapLease, Inc. Historical
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Pro Forma Adjustments
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CapLease, Inc.
Pro Forma
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Revenues:
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Rental revenue
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$ | 125,662 | $ | – | $ | 125,662 | ||||||
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Interest income from loans and securities
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27,620 | (17,185 | ) b | 10,435 | ||||||||
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Tenant reimbursements
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12,159 | 12,159 | ||||||||||
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Other revenue
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974 | 974 | ||||||||||
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Total revenues
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166,415 | (17,185 | ) | 149,230 | ||||||||
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Expenses:
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Interest expense
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84,850 | (12,015 | ) b | 72,835 | ||||||||
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Property expenses
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24,715 | 24,715 | ||||||||||
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Loss on investments
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7,949 | 7,949 | ||||||||||
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General and administrative expenses
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10,659 | 10,659 | ||||||||||
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General and administrative expenses-stock based compensation
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2,541 | 2,541 | ||||||||||
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Depreciation and amortization expense on real property
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48,409 | 48,409 | ||||||||||
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Other expenses
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268 | (181 | ) b | 87 | ||||||||
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Total expenses
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179,391 | (12,196 | ) | 167,195 | ||||||||
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Loss on extinguishment of debt
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(293 | ) | (293 | ) | ||||||||
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Loss from continuing operations
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(13,269 | ) | (4,989 | ) | (18,258 | ) | ||||||
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Income from discontinued operations
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77 | 77 | ||||||||||
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Net loss before non-controlling interest in consolidated subsidiaries
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(13,192 | ) | (4,989 | ) | (18,181 | ) | ||||||
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Non-controlling interest in consolidated subsidiaries
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52 | 52 | ||||||||||
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Net loss
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(13,140 | ) | (4,989 | ) | (18,129 | ) | ||||||
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Dividends allocable to preferred shares
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(5,618 | ) | (5,618 | ) | ||||||||
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Net loss allocable to common stockholders
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$ | (18,758 | ) | $ | (4,989 | ) | $ | (23,747 | ) | |||
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Earnings per share:
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Net loss per common share, basic and diluted
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$ | (0.33 | ) | $ | (0.42 | ) | ||||||
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Weighted average number of common shares outstanding, basic and diluted
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56,189 | 56,189 | ||||||||||
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CapLease, Inc. Historical
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Pro Forma Adjustments
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CapLease, Inc.
Pro Forma
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Revenues:
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Rental revenue
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$ | 64,952 | $ | – | $ | 64,952 | ||||||
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Interest income from loans and securities
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12,613 | (7,743 | ) b | 4,870 | ||||||||
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Tenant reimbursements
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6,498 | 6,498 | ||||||||||
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Other revenue
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445 | 445 | ||||||||||
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Total revenues
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84,508 | (7,743 | ) | 76,765 | ||||||||
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Expenses:
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Interest expense
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40,869 | (5,803 | ) b | 35,066 | ||||||||
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Property expenses
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13,330 | 13,330 | ||||||||||
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Loss on investments
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3,213 | 3,213 | ||||||||||
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General and administrative expenses
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5,505 | 5,505 | ||||||||||
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General and administrative expenses-stock based compensation
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1,468 | 1,468 | ||||||||||
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Depreciation and amortization expense on real property
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24,747 | 24,747 | ||||||||||
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Other expenses
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130 | (87 | ) b | 43 | ||||||||
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Total expenses
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89,262 | (5,890 | ) | 83,372 | ||||||||
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Net loss before non-controlling interest in consolidated subsidiaries
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(4,754 | ) | (1,853 | ) | (6,607 | ) | ||||||
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Non-controlling interest in consolidated subsidiaries
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19 | 19 | ||||||||||
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Net loss
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(4,735 | ) | (1,853 | ) | (6,588 | ) | ||||||
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Dividends allocable to preferred shares
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(3,255 | ) | (3,255 | ) | ||||||||
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Net loss allocable to common stockholders
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$ | (7,990 | ) | $ | (1,853 | ) | $ | (9,843 | ) | |||
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Earnings per share:
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Net loss per common share, basic and diluted
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$ | (0.13 | ) | $ | (0.16 | ) | ||||||
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Weighted average number of common shares outstanding, basic and diluted
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62,521 | 62,521 | ||||||||||
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(a)
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Adjustment to reflect the Company’s sale of the assets and associated liabilities comprising the Company’s March 2005 collateralized debt obligation transaction, including the prepayment in a related transaction of three cross-collateralized first mortgage loans. Adjustments also include the cash repayment of $5,471 of borrowings on the Company’s credit agreement against an approximately 16% participation in one of the prepaid loans. Adjustments also include a $31,331 increase to mortgages on owned property investments. Because the property mortgages constitute part of the CDO collateral, they were previously eliminated in consolidation as intercompany debt. Adjustments also include a $5,016 increase to commercial mortgage-backed securities for the fair value of Class A and Class B bonds in the CDO transaction which were previously purchased by the Company on the open market and were not included in the CDO sale.
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(b)
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Adjustment required for the removal of the interest income, interest expense and other expenses due to the sale of the assets and associated liabilities comprising the Company’s March 2005 collateralized debt obligation transaction, including the loan prepayment transaction described above.
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CapLease, Inc.
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By:
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/s/ PAUL C. HUGHES | |
| Paul C. Hughes | |||
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Vice President, General Counsel &
Corporate Secretary
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