10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

CapLease Inc. Reports Operating Results (10-Q)

August 05, 2010 | About:
10qk

10qk

18 followers
CapLease Inc. (LSE) filed Quarterly Report for the period ended 2010-06-30.

Caplease Inc. has a market cap of $284.1 million; its shares were traded at around $4.97 with a P/E ratio of 5.2 and P/S ratio of 1.6. The dividend yield of Caplease Inc. stocks is 4.8%. Caplease Inc. had an annual average earning growth of 2.6% over the past 5 years.LSE is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.

Highlight of Business Operations:

Interest expense decreased $1.4 million, or 6%, to $21.3 million, from $22.7 million. The decrease in the 2010 period resulted primarily from $0.6 million of lower interest expense on floating rate borrowings (resulting from lower borrowings in the 2010 period), $0.3 million of lower interest expense on convertible debt due to repurchases of the convertible debt, $0.2 million of lower interest expense on property mortgages and $0.2 million of lower interest expense on the secured term loan. The Company s average balance outstanding and effective financing rate under its floating rate borrowings was approximately $110 million at 3.58% during the 2010 period (average one-month LIBOR of 0.28%), compared with approximately $166 million at 3.74% during the 2009 period (average one-month LIBOR of 0.44%).

Property expenses increased $1.2 million, or 25%, to $5.9 million, primarily reflecting carrying costs associated with the Johnston, Rhode Island property and expenses on the Omaha, Nebraska properties where the leases were converted to gross from net as part of the lease termination transaction we completed at December 31, 2009. The net amount of property expenses we incurred (net of expense recoveries) was $3.2 million in 2010, compared to $2.1 million in the 2009 period.

Net income (loss) decreased to $(1.1) million, from $6.7 million, primarily as a result of the gain on debt extinguishment in the 2009 period and lower revenue in the 2010 period, offset in part by lower expenses in the 2010 period. Net loss allocable to common stockholders was $(2.7) million in the second quarter of 2010, reflecting dividends to preferred stockholders of $1.6 million.

Interest expense decreased $2.7 million, or 6%, from $45.7 million to $43.0 million. The decrease in the 2010 period resulted primarily from $1.2 million of lower interest expense on floating rate borrowings (resulting from lower borrowings in the 2010 period), $0.6 million of lower interest expense on convertible debt due to repurchases of the convertible debt, $0.4 million of lower interest expense on property mortgages and $0.3 million of lower interest expense on the secured term loan. The Company s average balance outstanding and effective financing rate under its floating rate borrowings was approximately $118 million at 3.72% during the 2010 period (average one-month LIBOR of 0.25%), compared with approximately $176 million at 3.76% during the 2009 period (average one-month LIBOR of 0.44%).

Property expenses increased $2.2 million, or 21%, to $12.3 million, primarily reflecting carrying costs associated with the Johnston, Rhode Island property and expenses on the Omaha, Nebraska properties where the leases were converted to gross from net as part of the lease termination transaction we completed at December 31, 2009. The net amount of property expenses we incurred (net of expense recoveries) was $6.5 million in the 2010 period, compared to $4.4 million in the 2009 period.

Net income (loss) decreased to $(3.2) million, from $2.7 million, primarily as a result of the gain on debt extinguishment in the 2009 period and lower revenue in the 2010 period, offset in part by lower expenses in the 2010 period, including loss on investments. Net loss allocable to common stockholders was $(5.5) million in the 2010 period, reflecting dividends to preferred stockholders of $2.4 million.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.7/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK